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Operator: Good day, and thank you for standing by. Welcome to the Tele2 Q4 and Full Year Report 2025 Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Jean-Marc Harion, President and Group CEO. Please go ahead. Jean-Marc Harion: Thank you, Sandra, and good morning to all, and welcome to Tele2's report call for the fourth quarter and full year 2025. With me, I have Peter Landgren, our Group CFO; Nicholas Hogberg, our new Chief B2C Officer and Deputy CEO; and Stefan Trampus, our Chief B2B Officer. Please turn to Slide 2 for some operational highlights from the fourth quarter. We had quite an intense last quarter of the year. We successfully secured and expanded our 1,800 megahertz spectrum position during the Swedish spectrum auction in November. In early December, we shut down both our 2G and 3G networks in Sweden, marking a milestone in our company history. Combined, these achievements will support our efforts to further improve our 5G network which already covers 99% of the population and was recently recognized by OpenSignal as the fastest 5G network in Sweden. We have delivered on our ambitious transformation and cost reduction targets, including for the reduction of our workforce. At the end of the year, we had canceled around 650 position at group level. We have so far as well addressed and renegotiated close to 350 supplier contracts, and this will continue during 2026. Moreover our tireless work on sustainability continues. And during the quarter, we were ranked #1 in Europe and second globally by Global Child Forum for our work on integrating child rights into the business. We were also recognized by CDP with an A score for climate change efforts for the fourth consecutive year. Please move to Page 3 for financial highlights. Our deep transformation executed in record time has borne fruit and translated into not only a spectacular improvement of Tele2 profitability, but also into an accelerated growth of our top line. Our end-user service revenue growth has progressively improved throughout the year to reach a good 4% in Q4. Once again, underlying EBITDAaL grew strongly with 13% in Q4, marking the third consecutive quarter of double-digit growth. On a full year basis, we exceeded most of our 2025 guidance KPIs. Tele2 full year equity free cash flow grew by a massive 42%, leaving our balance sheet very healthy. This was mainly driven by our operating cash flow plus working capital, which we have improved by 1/3 compared to 2024. Consequently, our Board of Directors proposes a dividend of SEK 10.50 per share, an increase of 65% from last year and to be paid in 2 tranches in May and October. We have also updated our financial policy and set guidance for 2026, which will soon be discussed. Please move to Page 4 for more details on our results. Our 4% end user service revenue growth in Q4 has been driven across all our operations and core services. In addition to continued strong performance by Sweden business and the Baltics, especially positive this time is the return to growth in Sweden Consumer. The 13% growth in underlying EBITDAaL was driven by both transformation and revenue growth. Our Q4 equity free cash flow was impacted by a spectrum payment, which offset higher underlying EBITDAaL. Full year, Tele2 delivered SEK 6.2 billion equity free cash flow. CapEx to sales picked up seasonally in Q4, but remained at low levels, around 11%, both in Q4 and for the full year. In Sweden Consumer, end user service revenue grew by 2% as growth in core services exceeded declines in Boxer TV and legacy services. In Sweden business, end user service revenue growth accelerated further to 7%, thanks to good growth in mobile, including IoT and solutions. The Baltic grew end-user service revenue by 6% and underlying EBITDAaL by 16%. But let's move to Slide 6 for more details on Swedish Consumer. As mentioned in my CEO later, we have successfully leveraged our strengthened brand and new offers to drive significant traffic to our own channel, which now contribute to 2/3 of our sales. Our continued investment in stores and online capability have started paying off, and we are confident in the efficiency of our commercial model. Mobile postpaid end-user service revenue grew by 5%, up from 4% in Q3. Total mobile revenue grew by 4%, partly offset by continued decline in prepaid. Fixed broadband grew end-user service revenue by 2%, mainly due to ASPU growth. Digital TV showed strong sequential improvement driven by healthy mid-single-digit growth in Tele2 TV, end-user service revenue growth, which now offset the continued, albeit smaller drag from Boxer TV. Following up on Boxer TV, the full year ended very close to our communicated estimate of around SEK 225 million revenue decline compared to 2024. Total consumer end-user service revenue grew by 3% in the quarter, excluding the Boxer impact. Let's look at consumer KPIs on Slide 7. Mobile postpaid added a solid 16,000 RGUs in Q4, net of 14,000 one-off contribution relating to recognition of previously uncounted low ASPU RGUs. Mobile ASPU growth improved to 3% year-on-year, which is -- while it was still negatively impacted by IFRS 15 fair value adjustment in Tele2 customer base, Q4 also included a positive one-off. Adjusted for both underlying ASPU growth was still 3%. Fixed broadband RGUs remained unchanged in Q4, whereas ASPU grew by 1%. Just like in previous quarter, we observed aggressive competition and escalating wholesale access fees, which hampered volume growth. TV returned to positive net intake with 3,000 RGUs added in Q4 as growth in Tele2 exceeded continued decline in Boxer. ASPU grew by 4% year-on-year, supported by more sports revenue. Please move to Slide 8 for Sweden business. Sweden business continued to deliver strong end-user service revenue growth, this time reaching 7% driven by growth across operations. Mobile grew by 7%, driven by our IoT business, including some temporary project revenue of around SEK 15 million in the quarter. Mobile RGUs remained stable in Q4, while up by a solid 4% year-on-year, ASPU continued to be impacted by change in customer mix. Solutions grew by a strong 10%, driven by finalization of larger network and cloud modernization projects. Please move to Slide 9 for Sweden financials. In total, Sweden end-user service revenue accelerated to 3% growth in Q4, driven by both business and consumer. Underlying EBITDAaL grew by 12%, driven by the end-user service revenue, workforce reduction, stricter prioritization and cost control. The cash conversion has improved to 69% over the last 12 months. Let's move to Baltic financials on Slide 11. Baltics have maintained operational momentum with continued strong top and bottom line growth in Q4. Total end-user service revenue grew at 6%, supported by price adjustment during first half year. Q4 was the fourth consecutive quarter in which all markets delivered double-digit growth in underlying EBITDAaL, delivering a total growth of 16%, led by Estonia at 41%. Cash conversion increased to a strong 81% during the last 12 months, reflecting increasing EBITDAaL margin. Let's move to Slide 12 for Baltic operating KPIs. The total postpaid base in the Baltics increased by 23,000 RGUs in Q4, driven by Latvia and Lithuania. Prepaid declined by 68,000 RGUs, largely due to regulation and migration to postpaid. Blended organic ASPU grew by a strong 11%, driven by price adjustment and continued prepaid to postpaid migration. With that, I hand over to Peter, who will go through the financial overview. Peter Landgren: Thank you, Jean-Marc, and good morning, everyone. Please turn to Page 14. First, a couple of comments on the group P&L for the quarter. Total revenue grew by 4% organically, driven by service revenue growth of 4% with contribution from all operations and equipment revenue growth of 7%. Both underlying EBITDA and underlying EBITDA after lease grew by 13% organically, thanks to sharp cost control across the group, and the service revenue contribution. Then over to the full year P&L. Both underlying EBITDA and underlying EBITDA after lease grew by 11% organically. The group reached a full year underlying EBITDAaL margin above 39%, which implies an increase of 3.4 percentage points compared to 2024. Items affecting comparability ended at SEK 600 million, of which SEK 500 million were restructuring costs related to the transformation, fully in line with our expectations. Net financial items decreased year-on-year, thanks to both lower interest rates and reduced debt levels. By the year-end, our average interest rate was 2.8%, with a debt mix of 68% fixed rates and 32% floating rates. And income tax finally, sorry, increased year-on-year due to higher taxable profits. And let's move to the cash flow on Slide 15. In Q4, equity free cash flow of SEK 777 million was generated, broadly in line with last year. The final payment of the Swedish spectrum secured in 2023 was absorbed by strong growth in underlying EBITDAaL and lower CapEx. But let's focus a bit more on the strong full year cash flow. CapEx paid, excluding spectrum, decreased by around SEK 630 million. This was mainly thanks to successful prioritization and partly due to some investments being postponed to 2026. Changes in working capital contributed almost SEK 300 million to the cash flow, supported by optimized inventory levels, but also increased redundancy provisions. Taxes paid decreased by around SEK 155 million, thanks to a tax refund earlier in the year. Net-net, full year equity free cash flow reached SEK 6.2 billion, which means a 42% growth compared to last year. This translates to almost SEK 9 per share. Please turn to Slide 16 and our capital structure. By year-end, economic net debt amounted to SEK 24.3 billion, a reduction of SEK 1.9 billion compared to 2024. This was enabled by the cash generated in the business, exceeding the dividend distribution. Today, we also announced that the Board has updated the financial policy. With this policy, the aim is to provide attractive shareholder remuneration, while preserving a strong balance sheet and financial flexibility. The proposed dividend demonstrates a sizable distribution, while our leverage of 2.1x underlying EBITDAaL after lease will comfortably stay within the desired investment-grade range. And with that, I hand over to Jean-Marc for a follow-up on our 2025 guidance and then some comments on our 2026 guidance. Jean-Marc Harion: Thank you, Peter. Please turn to Slide 17 for some comments regarding our performance relative to our 2025 guidance. Overall, we delivered clearly ahead of our initial full year 2025 guidance. While end-user service revenue growth was in line with guidance, as you probably remember, in Q2, we raised guidance on underlying EBITDAaL from initially mid- to high single-digit growth to slightly above 10%. We can now conclude that we even exceeded that target by the massive full year growth of 11.4%. In Q3, we also reduced our CapEx guidance from around 13% to around 12%. We ended the year at 10.8% due to the successful prioritization and the deferral of some planned investment to 2026. Please turn to Slide 18 for our 2026 guidance. As we leave 2025 behind and look ahead, our strong performance during last year has obviously raised the bar and established a new reference point for Tele2 profitability. Our ambition for 2026 is to consolidate the transformation of the company, continue improving our profitability and secure our revenue growth despite the uncertainties of the geopolitical landscape. We have, therefore, decided on the following full year guidance for 2026, low single-digit organic growth of end-user service revenue, low to mid-single-digit organic growth of underlying EBITDAaL, CapEx to sales in the range of 10% to 11%. It is important to note that the organic growth rate for underlying EBITDAaL excludes the impact of the Baltic Tower transaction that we expect to close in Q1. I hand back to Peter for some additional comments regarding 2026 before we open up for Q&A. Peter Landgren: Thanks. I would like to start with then a reminder about the Baltic Tower transaction, which is still expected to be finalized in Q1. Upon closing, we expect cash proceeds of around EUR 430 million after transaction costs. And as previously stated, the transaction is expected to have a negative impact on underlying EBITDAaL of around EUR 35 million on a full year basis. Finally, the CapEx avoidance is limited to passive equipment, and that's already reflected in our 10% to 11% CapEx to sales guidance for the group. And then a few additional comments on the cash flow for the full year 2026. In Q1, we'll pay SEK 117 million for the Swedish 1,800 megahertz spectrum secured in November 2025. The other half will be paid later in 2028. Also worth mentioning that there might be spectrum auctions in the Baltics during 2026. On financial items, excluding leasing, we estimate full year net payments of around SEK 650 million. Finally, on taxes, we estimate full year payments of around SEK 1.4 billion. With that, I hand over to the operator for Q&A. Operator: [Operator Instructions] We will now take the first question coming from the line of Andrew Lee from Goldman Sachs. Andrew Lee: I had 2 questions, both -- or one around the growth guidance or one around capital allocation. So just on the growth guidance, could you just talk through the scenarios you see that would support a low single-digit EBITDA growth guide for 2026. Obviously, Q1 has pretty easy comps. And that means that your low single-digit growth guidance would imply basically no EBITDA growth, I think, for the remainder of the year. Are you missing something in terms of what's happening in the cost base? Or something else that didn't really transpire in 4Q? Any help there would be really useful. And then secondly, just on the capital allocation. The SEK 10.5 dividend is obviously a meaningful increase. You haven't split it by extraordinary and ordinary dividends. Should we see that SEK 10.5 DPS as a floor now for shareholder returns going forward, given I think that leaves you below or notably below 2x net debt to EBITDA by the end of the year? Jean-Marc Harion: Yes, Peter will take the 2 questions. Yes. Peter Landgren: Okay. If we start with the second question around the floor, it's correct that the dividend, there is no distinguished between ordinary or extraordinary dividend. That's a conscious decision. And I think we're pleased that we are able to distribute such a sizable dividend, thanks both to the strong cash generation in 2025 and also the strong balance sheet that we have. Looking forward, we're not communicating in the sense of that this is the floor. We have 2 things that enables dividends going forward, and that's obviously the continuation of cash generation. And secondly, we still have a very healthy balance sheet to enable us to have attractive shareholder remuneration also going forward. But I wouldn't see this as a floor. That's not what we're communicating today. We're communicating a sizable dividend of 118% of equity free cash flow, and we communicate a policy, which enables both a solid rating and good distributions going forward, but not more than that. Jean-Marc Harion: Regarding the growth guidance, I would say that when you look around, it's -- of course, it's important to remain cautious about the commitment we take to our investors. That's -- as a reminder, and we insisted on that point, we have raised the bar for profitability. So the starting point is much higher this time. So we continue -- we will continue improving the EBITDAaL and the EBITDAaL margin over the time, thanks to the continuation of the cost discipline and the strict prioritization that we have implemented in 2025. This will not change. But in the meantime, we are observing how the market will evolve and the possible impact on the customer behaviors. So we have made the company today much leaner and much more agile than it was 1 year ago. So the adaptation, the capacity of Tele2 to adapt to any circumstances to deliver anyhow or targets for margin and cash will not be impacted by or cannot be impacted by the evolution of the landscape. So that's why we remain a little bit careful when looking forward in 2026, and we will see how the situation develops. Andrew Lee: Just a quick follow-up. Just -- so am I to interpret Jean-Marc, your comments as in you've built in kind of uncertainty around the kind of the macro environment to that EBITDA growth guide rather than implicitly reflecting an increase in costs, marketing costs, which went up at 1 point during 2025 or some incremental costs around stepping away from third-party retailers or something that... Jean-Marc Harion: No, no. If this was the reason for you to ask the question, no, it's not the case. So we remain quite scarce in terms of all kind of expenses, including marketing expenses. We, of course, keep our ambition and confirm our ambition to develop our own channels and reduce progressively the dependency on the third-party channels because of the behaviors and the quality of the sales that we generate through these third-party channels. But definitely, the reason for us to come with this guidance is, of course, the observation of the context. We will secure the cost base of Tele2 as a continuation of the discipline that we have implemented in '25. Of course, we see the top line continue growing, but depending on the evolution of the context, we may need to adapt. That's the only rationale. But definitely, no increase, no major change in the cost base if this was your question. Operator: We will now take the next question from the line of Ondrej Cabejšek from UBS. Ondrej Cabejšek: I've got 2 questions as well. One is on CapEx. So Peter, you said that some CapEx is spilling over into 2026 from 2025, but the 2026 CapEx guidance is already, I would think, a positive surprise. So my question would be, does that signal to us that Tele2 can be quite firmly at around 10% CapEx to sales from 2027 onwards? That's the first question. And then the second question would be maybe asking a different way about the dividend. So in terms of the leverage policy that is now just to remain investment grade. So I was thinking, first of all, is there a soft steady-state target around, say, 2x that you wish to be on? And then implicitly also, what is the -- or in addition, what is the limit under the new definition of remaining investment grade, taking into consideration the impact from the Tower deal? Like what is the headroom basically for you to remain investment grade? What is the maximum ratio is the question? Peter Landgren: Okay. Ondrej, thanks for the questions. If we're starting with the CapEx guidance, good that you're positively surprised. That's always nice. 10% to 11% is what we call out now. We know that we have things moving in different directions in one way we -- one movement is, of course, that the rollout in Net4Mobility is slowing down, which is helping our CapEx ratio. On the other hand, we have other investments that we need to take care of, for instance, making sure that we have the rollout complete in the Baltics, and we landed on the 10% to 11% is a reasonable range from that perspective. What that means for 2027 is nothing we announced today, but we think that this level, which we talk about now is quite representative to where Tele2 stands today. When it comes to the dividend or the financial policy and the range, it's true that, as you call out, that the Tower transaction will have implications on how we look at leverage going forward in 2 ways. One is the obvious one that the leverages will else equal decline by the Tower transaction. So we'll see lower leverage once that's concluded. On the other hand, as you point out, the acceptance from the rating firms will also be reduced due to commitments we have in the new tower arrangement. And I would say right now, I think that the route for leverage after the Tower transaction will probably be somewhere between 2.6 and 2.7. That might evolve over time, but to give some kind of engagement right now, how we look at the limit for where we can be in the new environment. Hopefully, that's covering your question. Ondrej Cabejšek: It does. If I may, one quick follow-up. Regardless of what the dividend will be next time around, if it's SEK 10.5 or there's a bit of a reset. Is there an ambition that you can kind of share -- and I know this is the Board, et cetera, but is there an ambition to have maybe like a mid-single-digit growth in the dividend, just like many of your peers do as an example? Peter Landgren: No, the ambition is to have attractive shareholder remuneration and stick to this policy. In the end, as you point out, it's ultimately the Board that decides what is the right level every year. I think our focus here is to generate as much cash as possible because that's fundamentally what enables dividend going forward, but nothing more than that for now. Operator: We will now take the next question from the line of Owen McGiveron from Bank of America. Owen McGiveron: It's Owen McGiveron at Bank of America here. So mentions of releveraging and distributing and share buybacks have been emitted from the new financial policy. My question is if these remain in your toolkit? Or should we now expect capital return announcements to be a once-a-year kind of event at full year? Peter Landgren: Thanks for the question. I think for now, the route is, as you also see from the announcement today, is dividends, and that's what you can expect for now going forward. We're not ruling out share buybacks at some point. But right now, that's not what we see coming. And on the announcement, I think we -- of course, you can expect dividend announcements along with the Q4 report every year going forward as well. If there will be something in between at some point, it's a bit speculative and might happen, but nothing will -- we'll not rule it out, but we don't have a firm decision on when to announce dividends. For now, this is a dividend we call out now in Q4 to be fair. Operator: We will now take the next question from the line of Andreas Joelsson from DNB Carnegie. Andreas Joelsson: I had a question on the KPIs actually. Looking at Sweden and your growth initiatives that you have for 2026, we can see that mobile ARPU is trending quite positively, while ARPU within broadband is at a somewhat slower pace. So it would be interesting to hear your plans to continue growing ARPU in both areas in Sweden going forward? Jean-Marc Harion: Nicholas is going to answer your question. Nicholas Hogberg: Thank you for your question, Andreas. Well, so I think we are ready to capture both long-term and short-term growth. And especially during 2026, we will unleash the potential on our existing customer base and increase the value of the base through cross-sell and upsell, which will be prioritized. And we will do that through many initiatives, working with customer intelligence as the main driver, and we will make sure that we maximize our customer interactions and sales through own channels as said before. And we now have our own -- sales through our own channels is now representing approximately 2/3 of the total sales, which is important going forward to establish a strong relationship with our customers. So we will optimize that through sophisticated data analysis and AI tools, and that's an ongoing work to be able to maximize cross-sell and upsell. So also with that said and what Jean-Marc said earlier, we are now increasing our physical footprint and opening up new stores, also in areas where we have historically been underrepresented. So this will help us. We now have the fastest 5G network covering 99% of the population. So given that, that gives an excellent customer experience, it allows us to break new ground and develop our market share in areas where we historically haven't had a very strong market share. So I think we see a potential of growing during 2026 in our customer base. When it comes to broadband, we have our network, and we're focusing on delivering excellent mobile broadband to our customers, but also we're happy to having our own network, broadband network, and we are now strengthening our coax network, and we are going to launch 2,500 megabit per second service to our customers to increase our strength in that area. Andreas Joelsson: Perfect. And just one follow-up on the dividend. Would you be happy to continue to pay out more than 100% of equity free cash flow for the dividend if needed, so to say? Peter Landgren: Yes. I think there's nothing in the policy that stops us from doing that. And as you can see as a demonstration on that today, the proposal is 118% of equity free cash flow. So that might -- it's a bit speculative, but that might, of course, happen depending on the context and the financial outlook and our abilities. The limit is -- what's committed is at least 80% of equity free cash flow as ordinary dividend. That's what we keep stating. Operator: We will now take the next question from the line of Fredrik Lithell from Handelsbanken. Fredrik Lithell: I'm going to stay with one question. And maybe Stefan, if you could put some color on how you see the business-to-business market developing? What you see in front of you? And if you can sort of split that up in discussions around sort of the large enterprises, the public sectors and the small company segments and how they develop would be interesting. Stefan Trampus: Thank you, Fredrik. Well, if we start with the different segments then on the micro SME segment, I mean 2025 was a challenging year in terms of bankruptcies. It's the highest level in many, many years. At the end of the year, we saw a slowdown of the bankruptcies, which, of course, also is seen in our customer base. So it has been stabilizing in the smaller segments. I think the demand is still there from SMEs. And if you look at on a year-on-year growth. I mean, we had good growth and demand in SMEs and the public sector. If we talk about the larger segments, I would say that the public sector must have been a little bit squeezed from a budget perspective coming into the end of the year, it has been visible in some of our product lines. And in the larger segment, I would say that the larger customers have been a bit cautious. I mean, of course, it's not the same thing for all customers, but I would say that we have seen some cautiousness in investments from larger segments. So that is how we see the development of the different segments. And of course, going into 2026, we hope for a better macro, better demand in general. I mean, we've been hoping that the macro will turn for many times now. But let's see how it develops. Of course, it will help us. From a competitive situation, I would say that we've seen high competition aggressiveness in the micro and SME segments, especially from Telia and Telenor, where they have, I think been very high on commissions to external partners and also on below-the-line pricing. So that's what we've seen. But on the larger segments, we've also seen that both Telenor and Telia have been keen on keeping their customers and finding new ones looking at how they have acted on different deals. So that's a little bit color on both the competitive side and the segment side. I hope that gives some color, Fredrik, to the situation. Jean-Marc Harion: Let me add one comment on what Stefan commented. It's important to remind us that in 2025, we've been through a very deep transformation of our B2B business because the observation we made at beginning of last year was that not all the segments for B2B were, I would say, delivering the same profitability. So thanks to the transformation driven by Stefan, the prioritization of our portfolio, the focus on future-proof technology, a lot of automation in the process. We are now comfortable to grow all the segments, of course, with the preference for the core business but not only the solutions as well. And that gives us the flexibility to push some segments depending on the evolution of the market. So this is super important. We now have, I would say, a fully profitable activity on the B2B side, and we can accelerate the revenue when we see the opportunity in every segment. Operator: We will now take the next question from the line of Erik Lindholm-Rojestal from SEB. Erik Lindholm-Rojestal: Two questions from me, if I may. So I just wanted to follow up on the Baltic Tower Co transaction. You've spoken about this already, but sort of when you are seeing the completion of this and given what you said about leverage, could this be a trigger for announcing further dividends? And then the second question, just on Sweden B2B. I mean, IoT was really strong. Anything to call out there in terms of the drivers to this strength? And also solutions looked really solid, and you said there were completion of some projects. But do you see this strength continuing ahead? Jean-Marc Harion: Peter, on the Tower Co. Peter Landgren: Thanks for the questions, Erik. I don't think you should expect more dividends just because of the closure of this transaction. What we announced today is what we announced today, and let's see what will be concluded by the Board going forward, but not -- no explicit expectations just because of that. It's -- as we have discussed, we will see a sizable decline in our leverage by the transaction. But at the same time, the commitment in the Tower agreement in the 20 years agreement will lead to that the acceptance for high leverage is declining, is also going down accordingly. So that's what I would say at this point. Jean-Marc Harion: And we expect to close the transaction in Q1. On the B2B, IoT? Stefan Trampus: Yes. Thanks, Erik, for the question on both the IoT and the solutions part. Jean-Marc was alluding to it a little bit in his speech in the beginning that we have a healthy growth mix from all parts, I would say, of the business. It's driven both by mobile, cloud PBX, networking solutions. In the networking solutions area, the growth is coming from managed services and service agreements, both from new and existing customers. And then we also have the IoT part. And the solutions business is very much driven by customers needing to do network and cloud modernization. And I think that will continue. At what pace? I mean, it differs a little bit about how our customers can make investments in different areas. But for sure, it will continue. It can go up and down between quarters, and we talked about that before that we can have large rollouts for some quarters and then we have a buildup of revenues, et cetera. So that can differ over quarters. On the IoT side, we have a bit of an elevated increase this quarter, as Jean-Marc was alluding to, with SEK 15 million due to some larger projects. Let's see how the customer demand is there for specific projects. So that's something we are continuously in discussions with our customers. But in general, the IoT growth, we expect that to continue. The underlying growth in that business is really good. And let's not forget that, I mean, excluding this SEK 15 million, I mean, we are on a high level, actually picking up a little bit from Q3 to 5.4% growth, excluding this, what we would call project rollouts then or one-off revenues. So overall, a solid quarter in regards to the growth and looking forward to 2026. But I wouldn't say that you should take Q4 as the base for the growth going forward. As I said, it's a bit -- it can swing between quarters. I think the profile that we had looking forward, more looking like 2025 in full year, so to say, that's what we look at. Operator: We will now take the next question from the line of Nick Lyall from Berenberg. Nicholas Lyall: Can I just come back to the growth point, please, on service revenues in particular. I mean you've just done 3.7% in Q4 for the group or 2.6% in Sweden... Jean-Marc Harion: Nick, can you speak louder because we are struggling a little bit to hear you. Nicholas Lyall: Sorry, can you hear me better now? Jean-Marc Harion: Yes, a little bit better. Nicholas Lyall: A bit better. You've just done low single digit -- so you said low single-digit revenue guidance or service revenue guidance for '26, but you've done 3.7% in Q4 and especially with the Boxer effect and the accounting effects falling away, why not more aggressive into 2026, please? And I do realize you've talked a little bit about conservatism and macro. But could you give us more guidance why particularly after the comments you've just made on consumer where you've talked about boosting the value of the subs base. Why is that not coming through more aggressively in 2026, please? Jean-Marc Harion: Peter? Peter Landgren: Yes. Thanks for the question, Nick. I would say first on maybe building on what Stefan said about Q4 and full year. We are, of course, very happy with the sequential improvement in Q4, but I think we should be -- avoid to be too carried away of taking that as a single data point for looking at the full year 2026. We had some -- we benefited from some tailwind from one-offs in both B2B and B2C. Going forward then, as Stefan said, we're positive about the B2B development, albeit not at the level as in Q4. On the B2C side, you're perfectly right that we don't have the Boxer headwind. Boxer will obviously continue to be presumably a decline, but not at the elevated levels as we saw in 2025. And we're positive to our core services, but still coming back to what we said in the beginning, a bit humble around the development around us and how things will progress going forward. And then I think we should also keep in mind that we have support from a fantastic growth in the Baltics. We, of course, expect Baltics to continue to grow, but you might not be able to expect such a growth the Baltics going forward. So we expect support from all 3 business lines, but altogether, we find this a good guidance for now. Jean-Marc Harion: Yes. I believe that a general note about our 2026 guidance is, as we stated in -- earlier in the presentation is that we are not starting from the same starting point. So we have raised the bar, and we will continue, of course, developing, but from a higher starting point. Operator: We will now take the next question from the line of Felix Henriksson from Nordea. Felix Henriksson: I wanted to revisit your thoughts regarding M&A in light of your new updated financial policy. Do you see sort of any opportunities for M&A, for example, in the fixed business in Sweden or somewhere else? Or should we sort of conclude that the use for excess cash will be basically to distribute that back to the shareholders? Jean-Marc Harion: I will take this one. Of course, we are scanning the market, and we'll continue doing so. It's part of our role and part of the mission that the Board of Directors is asking us to do. For the time being, there is no deal on the table, and I believe that one of the reason for that, especially considering what the sector that you are referring to, the fixed business is that we are waiting for the regulation of the single dwelling units, which should materialize this year before observing the consequences on the new landscape. But on a general note, we continue scanning for the opportunities. But so far, we don't have any project on the table. Operator: We will now take the next question from the line of Ulrich Rathe from Bernstein. Ulrich Rathe: I have 2 questions, please. The first one is on working capital. That was a major contributor in 2005 to -- 2025 to free cash flow. So I was wondering how much further you can drive that? Working capital is at some point, structurally listed in terms of what it can provide, but we're not quite sure from the outside how much further you can drive your optimization efforts. Second question is on the terms of the Tower Co. I mean so far, we know cash impact on you, the general structure of the deal with Manulife and then also the EBITDA impact, but we don't know much about what the structure of the underlying agreements are. Now you're highlighting here that the agencies are taking a view. Presumably, they know a little bit more about it, but their focus is on creditor protection, which is not necessarily aligned with what equity investors are considering when they look at such deals and what they do to the value creation. So I was just wondering what further color you can provide on what this Tower Co will do to the Tele2 case? In particular, 2 aspects here would be the EBITDA impact in further outer years. The second one is how we are supposed to value your 50% stake in this Tower Co, if we don't really know what you've agreed there in terms of terms? Jean-Marc Harion: Peter, you can... Peter Landgren: Yes, I can start with the working capital... Jean-Marc Harion: Yes. And continue with Baltic Tower Co. Peter Landgren: Yes. On working capital, first of all, of course, we're very pleased with the contribution of close to SEK 300 million in 2025 based on a continuous work and persistency on optimizing the asset side and the main driver is then optimized inventories. That can obviously not -- as you point out, not continue forever. It will continue to be top of our agenda to make sure it's as optimized as possible in 2026. But we also know that, for instance, we have some severance provisions that we need to settle, and we're also dependent a bit on the commercial activities and what will happen around both Hans funding and other things around the business. So exactly where it will land going forward is unclear, but I don't think you should expect it to be repeated again as this swings back and forth. We continue to work on it, but 2025 was an extraordinary good year. So that's on that. On the Tower Co, the information we provide right now is the things we have called out, the annual EBITDAaL impact of negative EUR 35 million and that's what you should expect in the near term. Then of course, we -- it will evolve, and we will learn more, but that's what you should expect for now and also the upfront cash proceeds and the size in terms of number of towers and rooftops has been called out. And also there is a 20 years agreement around those towers. That's what we call out now. Obviously, in the financial reports going forward, we will own 50% of this company and the contribution from that will, of course, be, to some extent, disclosed in our numbers because it's part of our consolidation in the end, even though not consolidated in our EBITDA numbers, but as a separate line, so you will get visibility there. Otherwise, more strategically, we're doing -- as a reminder, we do this to be the first pan-Baltic Tower company and build a strong company there. And of course, we have, as shareholders, expectations of creating a successful business there as well. But at this point, this is what we call out, and it will, of course, evolve during 2026. Operator: We will now take the next question from the line Siyi He from Citi. Siyi He: I just have a follow-up question on the broadband -- consumer broadband trend. It seems that the broadband has stable for this year. I'm just wondering what are the reasons behind the flattish broadband trends, whether you see some pressure in your cable base, or you have chosen not to expanding into the fiber areas because of the pending change of regulations. And if I can also follow up on the change of regulations, just get your view on what could be the potential changes? And maybe your view on how to benefit from the improvement in regulations, either you think it's fine to benefit through organic growth? Or you think the buying infrastructure assets could be a better option? Jean-Marc Harion: Okay. Well, I will take this one first, and Nicholas will complete, if necessary. But basically, on the broadband, we already commented on that in previous exercises. We see -- we have, of course, to deal with the complexity of the market for the fiber part. So the open fiber networks in Sweden are owned by a variety of different owner and operators, a lot of them being local ones. And what we see is that not only there is an intense competition on these networks, but sometimes, the retail prices are capped by the landlord for instance, and there is a permanent increase of the wholesale prices that squeezes the operator. So this situation is probably not sustainable on the long run. And of course, for the time being, it's a situation that we see in the buildings, mostly because we are waiting for the regulation that will give us access to the single dwelling units, the villas that represents half of the households in habitation in Sweden. Saying that in the waiting for the -- for this regulation, as Nicholas has commented, we are emphasizing the benefits of our DOCSIS infrastructure that we have partly upgraded to Remote PHY in the areas where we were suffering from congestion. And now we are reshuffling the spectrum, and we have started offering up to 2.5 gigabit per second Internet, which is a performance, of course, that is very rarely matched by fiber in Sweden, and we see that as a competitive advantage. So we are capitalizing on our footprint. And of course, we will wait for the new regulation to materialize before taking new positions on the fiber. But for the time being, the situation of the fiber in Sweden is not optimal. Nicholas, do you want -- no? Nicholas Hogberg: No, no further questions or comments. Operator: We will now take the last question from the line of Abhilash Mohapatra from BNP Paribas. Abhilash Mohapatra: I've got 2, please, mostly clarifications. Firstly, on the dividend. You mentioned that the SEK 10.50 is not a flow, but at the same time, the policy does not stop you from paying more than 100% of the equity free cash flow. My question is, what exactly will determine where you end up on the payout on a year-to-year basis? How do you think about it given your strong cost cutting will probably keep growing free cash flow? So how do you decide on the dividend payout on an annual basis? And just related to that, is there a sort of numeric leverage range, which is linked to your investment-grade target? Is there a number that we can think about? And sorry, just one other clarification. Earlier in the prepared remarks, did you mention a cash tax number for 2026 of SEK 1.4 billion? Sorry, if I misheard but just if you could clarify. Peter Landgren: Okay. On the dividend, first of all, just stating the obvious that it's, of course, in the end up to the Board, what they will propose and ultimately, the AGM. What sets the limits for next -- for the future? First of all, this financial policy gives a framework where to land. And that's the framework we need to live with and play based on that or will do so. The fundamental thing for future dividend is the cash generation again. But then exactly how a large portion of the cash generation that will be distributed. That's nothing that we can comment on now, obviously, but we commit in the policies is that it's at least 80% of the equity free cash flow generated that will be distributed. That's the floor we talk about. When it comes to the -- if I understand your leverage question, and then I'm repeating that answer and hopefully it covers your question is that based on the context right now, that might, of course, evolve. But as we see right now, after the Tower transaction, we believe that with the ceiling for BBB is around 2.6 or 2.7 in terms of leverage. But again, it's based on the context and there are also other metrics, but that's what we expect. And yes, on tax payments for 2026, we, at this stage, early in the year, expect SEK 1.4 billion of payments. Operator: Thank you. There are no further questions at this time. This concludes today's conference call. Thank you for participating. You may now disconnect.
Operator: Good morning and good evening. Thank you all for joining the conference call for the LG Display earnings results. This conference will start with a presentation followed by a Q&A session. [Operator Instructions] Now we will begin the presentation on LG Display's Fourth Quarter of Fiscal Year 2025 Earnings results. Suk Heo: Good afternoon. This is This is Heo Suk, Leader of the LG Display IR team. Thank you for joining our fourth quarter 2025 earnings conference call. Joining us today are CFO, Kim Sung-Hyun; Vice President, Choi Hyun-Chul, in charge of Business Control and Management; Vice President, Kim Kyu Dong, in charge of Finance and Risk Management; Lee Ki-Yong, in charge of Business Intelligence; Vice President, Kim Yong Duck, in charge of Large Display Planning and Management; and Ahn Yoo-shin, in charge of Medium Display Planning and Management, Park Sang-woo, in charge of Small Display Planning and Management and Son Ki Hwan, Head of Auto Marketing. Today's conference call will be conducted in both Korean and English. For detailed performance-related materials, please refer to our disclosure or the Investor Relations section in the company website. Please refer to the disclaimer before we begin the presentation. Please be informed that the financial figures presented in today's earnings release are consolidated figures prepared in accordance with International Financial Reporting Standards. These figures have not yet been audited by an external auditor and are provided for the convenience of our investors. I will now report on the company's business performance in Q4 2025. Shipment of panels for TVs and notebook PCs in Q4 remained solid, but there were some changes to the mix in some small and medium OLED products that lessen the usual seasonality. As a result, revenue rose slightly Q-o-Q to KRW 7.2008 trillion. Operating profit declined Q-o-Q to KRW 168.5 billion. It is owed to lower shipments of certain small and medium OLED models Q-o-Q together with one-off costs related to strengthening the company's profit structure and future competitiveness. As noted in last quarter's earnings call, for the purpose of raising the efficiency of manpower structure, costs associated with voluntary retirement program for domestic and overseas employees exceeded KRW 90 billion. In addition, fourth quarter included incentive payments as rewards to employees for achieving the company's first annual turnaround in 4 years and as motivation to further bolster the company's competitiveness. Cost for activities such as reducing low-margin products and inventory rationalization were also included in Q4 results, which were part of the initiative to adjust the company's business and product portfolio. It was intended to strengthen our profit structure and operational efficiency. Operating performance in Q4, excluding these one-off costs, expanded both Q-o-Q and Y-o-Y, demonstrating continued improvement in our business fundamentals and profitability. There was net loss of KRW 351.2 billion down Q-o-Q, primarily due to foreign currency translation loss stemming from the higher year-end exchange rate. EBITDA in Q4 was KRW 1.162 trillion, with an EBITDA margin of 16%. Next is shipment area and ASP trends. What we are seeing recently is that panel shipments by product have diverged from traditional seasonality, reflecting instead the downstream conditions, customers' inventory levels and strategic panel buying trends as well as differences in customer and/or product strategies among panel suppliers, particularly for the company, as we maintain profitability-focused product portfolio, shipment of low-margin midsized LCD models continue to shrink. Specifically in Q4, shipment area for TV and notebook PC panels grew quarter-on-quarter, while shipment for monitor and tablet panels declined. As a result, despite the strong seasonality, total shipment area rose modestly Q-o-Q to 4.0 million square meters. ASP per square meter was $1,297, down 5% quarter-on-quarter largely because shipment of certain small and midsized OLED models were concentrated in Q3. Although it fell Q-o-Q, it is up 49% year-on-year, reflecting continued progress in upgrading the business structure toward OLED and supporting expectations at the high level will be maintained going forward. Next is revenue share by product group. Overall revenue share remained largely unchanged from Q3. First, mobile and others accounted for 40% of revenue, up 1 percentage point Q-o-Q, mainly due to shifts in the product mix. IT revenue share remained almost unchanged at 36%, down 1 percentage point Q-o-Q, reflecting the deferring shipments across product categories, as described earlier. TV share out of revenue rose slightly by 1 percentage point as shipments of white OLED panels for TV and monitor increased. Auto revenue share rose to 7%, down 1 percentage point Q-o-Q. OLED products accounted for 65% of total revenue in Q4, unchanged Q-o-Q and up 5 percentage points Y-o-Y. Year-to-date, OLED share rose to 61% from 55% last year, up 6 percentage points. The continued upgrade toward OLED center business structure is steadily broadening and strengthening our growth and profitability base. Next is our financial position and key indicators. Cash and cash equivalents at quarter end were KRW 1.573 trillion, largely unchanged Q-o-Q. As we wind down nonstrategic businesses such as LCD TV and improve operating efficiency, the level of required operating capital has remained lower than in the past. Inventory at quarter end declined Y-o-Y to KRW 2.546 trillion, reflecting progress from our efficiency improvement efforts. Total debt decreased by KRW 1.886 trillion from the end of 2024 to KRW 12.664 trillion. And net debt fell by KRW 1.437 trillion Y-o-Y to KRW 11.0910 trillion. Debt-to-equity ratio improved to 243% and net debt-to-equity ratio to 141%, lower by 20 percentage points and 10 percentage points, respectively, Q-o-Q and lower by 64 percentage points and 14 percentage points Y-o-Y, further strengthening our financial soundness. I will now move on to guidance for Q1. Shipment area is expected to fall across all categories in Q1 due to seasonality. While ASP per square meter is also expected to fall slightly Q-o-Q, it will be tempered compared to the same quarters in the past due to the strong and sustained upgrade to OLED-centric business structure. Total shipment area is projected to decrease by low 20% level from the previous quarter and ASP per square meter to decline by mid-single-digit percent. Notably, ASP per square meter is expected to remain above the $1,200 line even through the seasonality of Q1 up by more than 50% Y-o-Y. I will now hand over to our CFO, Kim Sung-Hyun. Sung-Hyun Kim: Good afternoon and evening to everyone. I am Kim Sung-Hyun, the CFO. Thank you very much for joining today's conference call. Looking back to last year's performance, our most significant achievement was delivering a meaningful scale of turnaround after 4 years, improving profitability by more than KRW 1 trillion Y-o-Y, thanks to the hard work and dedication of all our members. Despite elevated external uncertainty and volatility in global markets, we continue to expand OLED revenue share and persisted with intensive structural improvements. As a result, we reduced our loss by roughly KRW 2 trillion in 2024 versus '23 and further improved results by about KRW 1 trillion in 2025. OLED share out of revenue reached a record high of 61% for the year. It was only 32% when we began business structure upgrade in 2020 and rose to 44% in 2022, then again to 55% in 2024. We believe that we are moving much closer to the complete solidification of our OLED-centric business structure, having terminated the large LCD business with the sell-off of Guangzhou LCD plants in 2025. Allow me to explain the one-off cost in Q4. There were explanation and guidance for costs related to voluntary retirement program provided at last year's October earnings call. And the actual cost incurred roughly KRW 90 billion is largely in line with the guidance. These costs include besides workforce rationalization to strengthen our business fundamentals, local workforce adjustment costs that were incurred while trying to improve our overseas production strategies to proactively address changes in trade and tariff environment, as well as customers' production strategies. Financial impact from the voluntary retirement cost is unchanged from what we described at last quarter. The one-off costs will be offset from about 18 months after implementation and will contribute positively to future results. In addition, as mentioned as part of the Q4 performance briefing, incentive payments tied to last year's business performance were also reflected. It is to recognize our members' role in achieving the first annual turnaround in 4 years and to motivate them further going forward. The incentive is intended to further support our ability to shift towards a technology-centric company by focusing more on improving our fundamentals, build a sustainable profit structure and better achieve our future goals. Last item is the cost associated with the strengthening profitability and improving operating efficiency. It will enable the company to boost future profitability and broader push to improve operational efficiency, such as reducing low-margin products or consolidating inventory and is expected to strengthen business performance overall. Total nonrecurring cost impact in Q4 was in the high KRW 300 billion range, which is the result of the company's activities and work to strengthen our profit structure and future competitiveness. Excluding these items, Q4 operating profit was roughly mid KRW 500 billion, exceeding market expectations. It is an improvement Q-o-Q and Y-o-Y underscoring continued improvement in our business fundamentals and profit structure. Looking ahead, we expect external uncertainty and product level volatility in the downstream market to persist this year. While numerous factors persist in our business environment like macroeconomic-driven real demand, changes in the trade environment and supply chain stability, we will remain focused on stabilizing our business performance by growing our OLED business and driving cost innovation and operational efficiency activities. Next, let me briefly remark on our plan and strategy by business. For small mobile we will expand panel shipment, leveraging differentiated technological leadership and strengthened customer partnerships to enhance business performance and stability. At the same time, we will systematically execute R&D and new technology investments to grow our future opportunities. For medium-sized OLED, we will respond to high-end market demand across product segments by leveraging our technological leadership and mass production experience. We will also respond proactively to shifting market demand and customer requests by more efficiently utilizing existing infrastructure. As to the demand for OLED conversion by product, which is expected to grow, we will carefully assess market size and conversion pace to enhance competitiveness in ways that will differentiate us. For IT LCD, as reflected in recent quarterly shipment trends and results, we are keeping our focus on B2B and differentiated high-end LCD while continuing to reduce low-margin products. It is leading to meaningful profitability improvement every year. We will intensify execution of what is already underway to achieve possibility for a turnaround this year. For large panels, we will solidify our leadership in the premium market through our differentiated and diversified TV and gaming OLED panel lineup on the back of growing recognition of white OLED's competitiveness and close collaboration with strategic customers. We will expand business results and pursue rigorous cost improvement to maintain stable operations. And for automotive, we will sustain our competitive advantage and create customer value based on our market leadership and differentiated product and technology portfolio. Finally, on investment. We maintained a CapEx policy focused on investments in our future readiness and structural upgrade. After investment optimization activities, CapEx in 2025 was completed at mid KRW 1 trillion. In 2026, CapEx is expected at KRW 2 trillion level, up Y-o-Y. This includes execution of the planned investment to enhance OLED technological competitiveness and investment to strengthen OLED business and future readiness. For any new investment decision, we will communicate with the market without delay. This completes our report on Q4 business performance and review of 2025. Thank you very much. Suk Heo: This completes our presentation of business highlights for Q4 2025. We will now take your questions. Operator, please commence the Q&A session. Operator: [Operator Instructions] The first question will be provided by Kangho Park from Daishin Securities. John Park: First of all, congratulations on achieving a turnaround for the first time in 4 years. Now I would like to ask 2 questions broadly about the company overall. The first is, in 2025, the company sold off its LCD company in China and continue with the business upgrade, and it has also increased the share of OLED out of the total revenue. It has also -- which has then improved the business performance as well as the profitability. So looking ahead to this year, then it appears that the share of OLED appears to be set to keep growing, which is likely, hopefully, to keep driving up the revenue. So then my question is, what is the company's outlook for each business? And also what is the expected business performance for the year? And also for the short term, I believe what the company needs in order to quell the negative perception about LG Display is to sever the trend of entering into loss in the first half of the year. So can we expect a better trend in the first half of this year? And the second question is, the company for the past few years has been focused on improving financial soundness, for example, improving the cost efficiency and also lowering the facilities and lowering the inventory level and also improving the overall operational efficiency. Now then again, looking ahead to 2026 and also from a more mid- to long-term perspective, what is going to be the company's new strategic priorities or strategic tasks down the road? And especially for the CFO personally, what would be your priorities or what would be the important part of your action plan? Sung-Hyun Kim: Thank you very much for the question, which was quite specific and also appear to have the answers embedded in them already. I would just like to provide my response at once based on my own interpretation of the questions. Now, of course, so far, there have been work to upgrade our business structure and also improve our operational efficiency and the results or the performance out of that is, I believe, meeting up to the -- to our commitment to the market perhaps not 100% satisfactorily, but we have done the job. But that does not mean that we can put an end to the process or the efforts that we have carried on for the past few years. Rather, they need to continue with new tasks in new phases. Now for the mid to long term, what is important and fundamental to the company is that, first of all, we need to keep growing; and second, we need to be steadfastly profitable every quarter. Now, that would be my short answer to questions #1 and 2. But then now in order to enable the points that I have just made, then there are some points that we also need to reach and allow me to explain a bit more. Now today, an important theme for the company is to turn into a technology-centric company. But then looking around to our external environment, then again in 2026, as you would all know, the environment is still full of uncertainties and also unpredictable elements. So then what should be the end goal for the company is -- so what I envision is that we need to become a normalized and competitive company. And this is because as we went through some tough times in the past few years, I see that the company has become perhaps a bit not typical and also perhaps that has eroded our competitiveness somewhat. Well, as you would know, there were losses to our capital, which made it impossible for us to pay out dividends. And we were seeing large losses up until 2 years ago. Our financial position was quite bad so much so that we had to turn to our shareholders to go into a paid-in capital increase. Now looking at last year's performance, yes, we were profitable, but not in all businesses. And what we need to do now is complete a business structure where we will be profitable in each and every one of our businesses, and so that we can also revive trust from the market. So this means that we also need to reestablish our operations inside the company and across the company. And there is no other choice but for us to continue with our business structure upgrade and operational efficiency improvement. But although the work and the efforts have to continue, I would say that the purpose has slightly become different, whereas in the past, it was more for survival. Now it is more about improving our competitiveness. Competitiveness in our technology, competitiveness in our cost, competitiveness in our products and also competitiveness in our efficient operation. So once we hit all these targets, then I believe we can once again become the market leader. So once we finish that process, then we will once again become a normalized company, win back market trust and also win back the love from our shareholders. So I have been a little bit long winded, but I would say that this is a homework that I have assigned upon myself. Operator: The following question will be presented by [ John Hou Yoon ] from UBS Securities. Unknown Analyst: My questions are also twofold. Now first is about the mobile OLED. Now the number for the smartphone panel shipment for last year and also the target for this year. So could you share the information regarding these numbers? And also depending -- so there were some changes in the product launch cycle by the customers and also looking at the technological preparedness by competitors, what are some of the opportunity factors that the company can expect? And another question. The following question is with regards to the company overall. So following tariffs last year, this year, it appears as if the memory semiconductors trends are going to be the major factor that could affect the business performance of each business segment. So what is the company's perspective and intended response to this trend? Unknown Executive: This is [ Park Sang Yoon ], in charge of a Smart Size Panel. Now looking back to smartphone business performance in 2025. The first half saw meaningful growth in panel shipments, largely reducing the seasonal variation between the first and second halves. In the second half, while the actual demand varied by model, the diversified product portfolio enabled our annual panel shipment target of around the mid-70 million units as planned. And typically, panel shipment jump from the third quarter to the fourth quarter, but last year stood out in that panel shipments were relatively concentrated in the third quarter. Our smartphone business is generating stable results based on enhanced capabilities across our technology, production and operations. This year, we aim to further close the gap between the first and second half while outpacing last year's growth in panel shipment. Now please understand that I am not in the position to comment on details about our customers. But what is certain is that our smartphone panel development and production capabilities are proven and recognized, and we have accumulated sufficient know-how to fully address diverse technical need. And we believe that by efficiently utilizing our existing production infrastructure, we can address swiftly and flexibly both the increasing demand and new technology readiness and grow our achievements. Now I would like to respond to the question about the impact from the memory semiconductors. Largely, there are 2 types of impact. The first is with the increase in the memory price, then there would also be a pressure on the display pricing that it could also go up. And then this could also increase the -- and for the IT, it could also increase the set price, which could a dampen demand. And also the component price could also go up, meaning that there could also be pressure from customers to lower the panel price. Having said that, the impact on the company currently remains limited, but the volatility is quite high. So we are carefully monitoring any changes in the demand as well as the trend and we'll also try to address any impact that might arise. Thank you. Operator: The following question will be presented by Won Suk Chung from iM Securities. Won Suk Chung: They are also twofold. First, as was mentioned earlier, the rise in the memory semiconductor price could also bring some questions about the company's profitability. And so my question regarding the company's profitability is that now about the IT set, now it appears that the outlook for the downstream market for the IT set demand appears to be conservative. So what is the company's outlook for the IT business? And also what would be the possibility of seeing a turnaround? And a related second question is, now the competition appears to be investing or going into mass production with the 8.6 gen plant, but the company at this time appears to have no such plans. Then wouldn't that place the company at a disadvantage when it comes to customers' allocation? And also, what is the outlook for the IT PC OLED for this year. Unknown Executive: For this year, the company's midsized business focused on upgrading our customer structure around global high-end clients throughout 2025, while actively reducing low-margin products. At the same time, we sustained rigorous cost innovation activities, generating meaningful improvement in profitability Y-o-Y. We anticipate this trend to continue into 2026. Now given the rising component prices driven by semiconductors, supply chain disruptions and lingering uncertainties in the broader external environment, full recovery in the market remains uncertain even in 2026, but we will strive to achieve differentiated results and profitability and future proofing. We will stick to our 2-track strategy with LCD focusing on profitability with high-end LCD and with OLED responding to new demand and preparing for new markets with Tandem OLED-based differentiated products. We are closely monitoring the potential for OLED market expansion in IT. So we are closely monitoring the OLED market expansion in IT, but there is still insufficient visibility into demand to justify an 8.6 gen investment decision and external uncertainties remain high, that could also affect demand. So for now, the company intends to monitor market conditions before making investment decisions. In the tablet OLED market that is -- that continues to open up, we have solidified our leading position based on the differentiated competitiveness of Tandem OLED technology at our 6 gen OLED fab. Monitor OLED is actively responding to the growing demand for high-end applications like gaming by leveraging our 8th Gen OLED fab. For notebook PC OLED, we are monitoring the OLED market size and the pace of demand shifting from LCD to OLED, maximizing existing infrastructure while developing future-ready technologies and mass production capabilities to retain a cost advantage even in competitive situation. Operator: We will take one last question. The last question will be presented by [ Sung Kim ] from Kiwoom Securities. Unknown Analyst: My question is with regards to the large OLED. Now thanks to the cost improvement as well as lower depreciation and amortization cost, it appears as if the profitability has been improving since the second half of the year. So then what is going to be the outlook for the TV and monitor OLED this year? And so based on the higher demand for the TV and monitor OLED as well as the lower depreciation and appreciation -- depreciation and amortization, does the company expect the profitability to continue to improve this year? And then also, the next question is now for the TV set companies, they are continuing to see sluggish differentiation and also worsening profitability. So there may also be some pressure to lower the price, but then what would be the company's response and also what would be the company's strategy down the road to continue to secure profitability in the large panel business? Duck Yong Kim: This is Kim Yong Duck, in charge of Large Display Planning and Management. Now our large panel business, despite the external uncertainties and market volatility, achieved the intended panel shipment of approximately mid-6 million level in 2025, growing nearly 8% Y-o-Y. Now the white OLED for both TVs and monitors is recognized by the market and customers for their differentiated value compared to LCD. And that is why I believe that we were able to maintain such business. Now coming into this year, we see that the uncertainty remains and also the market growth potential still remains a bit limited, but the high-end market that we are targeting with OLED maintains a 10% share of the overall market. So then in 2026, based on this projection, we plan to continue strengthening our W OLED, the white OLED lineup for TV and monitors based on partnerships with global strategic partners. And on the back of such partnership. The target for panel shipment in 2026 is set at just over 7 million to grow by around 10% Y-o-Y. And for the mid to long term, OLED TV is expected to maintain unwavering leadership in the market while expanding our performance. And for -- especially for OLED monitors, it is also expected to see continued steep growth compared to other businesses. So we will continue to effectively respond to market trends and also reach an optimal production share between TVs and monitors to continue to expand our business performance. And again, for the short term, this year, there is some positivity expected from some sporting events. But at the same time, some side effects are also expected, especially coming from the supply-demand situation of components, especially semiconductor. So for the company, as we look ahead to continued market growth, our priority lies in securing stability in our production as well as supply. Now for our large panel business, we expect the competition to continue to intensify and it is incumbent upon us to continue to strengthen our technology and also differentiate our products so that we can keep expanding our business performance. So to that end, we will continue to work closely with our customers in close partnership to make sure that we can bring about win-win to all the companies involved with improved profitability. So we will continue to discuss our strategy to that end with our customers. Suk Heo: Thank you very much, and that concludes LG Display's Q4 2025 Earnings Conference Call. We thank everyone for joining us today. Should you have any additional questions, please contact the IR team. Thank you. [Statements in English on this transcript were spoken by an interpreter present on the live call.]
Simon Pitaro: Good morning, everyone, and thank you for joining us today. On behalf of Hazer Group, I'd like to welcome you to this December quarter investor webinar. [Operator Instructions] Presenting today is Hazer Group CEO, Glenn Corrie; and Tom Coolican, who will take you through the December quarterly report and provide an update on recent operational and commercial progress. I'll now hand over to Glenn and the team to run through the presentation. Glenn Corrie: Thanks, Simon. Sorry for being a few minutes late, a few technical issues this side. Good morning, everyone. Belated Happy New Year to all of our shareholders, and welcome to our Q2 webinar. Thanks for joining today. As Simon said, I'm joined on the call by Tom Coolican, our Chief Operating Officer. Tom has been with us for 18 months. I'll let him introduce himself shortly, but he's been at the forefront of a lot of our strategic projects, been managing a lot of the graphite monetization work that we continue to share. But importantly, he's also been at the interface with KBR, and he'll share some of those insights with us all shortly. Together, we'll present the results from the quarter. Our quarterly results or at least our report was out last week. We'll also share some other highlights. We've received quite a few questions in the last few days, so we'll try and get through most of those this morning. If we don't, we'll endeavor to get back to you as soon as possible. So Tom, over to you for a very quick introduction before we get stuck in. Tom Coolican: No worries. Thanks very much, Glenn. Good morning, everyone. My name is Tom Coolican, I'm Chief Operating Officer here at Hazer. And as Glenn said, I've been here now for 18 months. So I've spent more than 25 years in upstream energy across major oil and gas companies and also mid-caps as well as start-ups as well. So previously, I've held roles with Woodside Energy, with ENI, the Italian operator, also Jadestone Energy and then more recently with GR Production Services as their Executive General Manager. So what drew me to Hazer? Just as a quick side note, I guess, look, I think it's still -- having been here for 18 months, I think it's still the most promising decarbonization technology for the energy industry. I think that what stands it apart is really its scalability and the ability to actually deliver clean energy where it's needed. So yes, nothing's really changed since I first sort of came across the company, and I still feel very confident that this technology is on the right track. So I'm very happy to be here today, and I'm looking forward to sharing the results with you. Glenn Corrie: Great. Thanks, Tom. All right. If we can just move, Simon, on to the third slide. Great. Well, look, I know everyone is familiar with our vision and mission. Just to recap on our technology for those that are not necessarily that familiar with it. We transform methane emissions. Methane is 25x more harmful than CO2. We convert those emissions into clean energy in the form of clean hydrogen and critical minerals in the form of a very high purity form of graphite. I like to talk about the technology as one technology that serves 3 markets: the hydrogen market, the graphite market or the critical mineral market as well as overall industry decarbonization. So we're at the forefront of the energy transition, if you like. But the really important aspects of our tech that are, I guess, the differentiators and the competitive advantages is that we're low cost. We're a pragmatic, practical, scalable solution, as you will see again today. that integrates into existing facilities and is available to decarbonize a very, very dirty industry today. And you'll see again the size of the industry, the size of the problem and the size of the opportunity for Hazer and our advancing technology. In terms of our agenda, which is the next slide, we're going to effectively just recap on our highlights for the quarter. We will then do a brief update on the hydrogen market, touch a little bit on graphite. Tom will talk to the technology scale up and our go-to-market strategy. We'll come back and talk about steel, that Whyalla opportunity that we've talked about in December last year, the POSCO extension. So there's been a lot going on in steel. Hazer Graphite, of course, the other part of our technology, a corporate update, the catalyst for the next 12 or 18 months and then open up the call for our Q&A. So just jumping straight into our highlights. Thank you, Simon. We posted a solid quarter of performance. We continue to build on those foundations, those important foundations of commercialization and set that stage for a pivotal calendar year ahead. Firstly, we're making really good traction with KBR. Not forgetting, we only signed this deal back in May last year. We got working in earnest in June and July of 2025. We've made excellent progress on the design package and the commercial scale up, not forgetting that we are designing and developing large-scale commercial facilities that are capable of decarbonizing one of the world's dirtiest industries. So -- it's a massive piece of work. We could not be doing it without KBR in terms of the design package. It is on track for this quarter to at least get in front of customers and give them the dimensions of what they're faced with in terms of integrating our tech into their facilities. And in parallel, the global marketing campaign with KBR is also in flight, and Tom will talk to that shortly. Secondly, we cut our first Hazer, KBR transaction with Energy Pathways. So good to get out of the blocks with our alliance with Energy Pathways. It did gain U.K. government recognition during the quarter, which gives it access to some good fast-track approvals. And that project has now progressed through to revenue-generating project, which is the second for the company, but the first for the alliance. So big things in front of us there. It was a pretty big quarter as well for steel. So there's a bit of a deep dive in the pack on steel and how Hazer fits into the overall process. We joined forces with a group called M Resources. We're very excited about this partnership, and we are really strengthening their bid for Whyalla. So we'll talk about that a little bit shortly to the extent we can. And in addition to that, we also signed an extension to our strategic partnership with POSCO after some very positive graphite testing results that they've been undertaking over the past 6 to 12 months. In terms of graphite, we continue to product development, market development progress is still going on. Hazer Graphite is now being confirmed suitable in a number of industries, cement, steel, of course, and we're looking very closely now at asphalt and bitumen. So really big markets, really big opportunities there for our graphite as well as other industries. And then finally, we continue to engage constructively with governments at the federal level, at the state level. And we continue to see improving policy framework at the federal level, which is very important, starting to recognize methane pyrolysis and what Hazer does as a viable clean hydrogen pathway. So we'll talk more about that as well. In terms of numbers, we ended the quarter or in fact, we start the year with over $17 million funding position or cash position. That was bolstered during the quarter by over $5.5 million of inflows that came from the R&D rebate. That came from $1 million and a bit that came out of the capital raise proceeds that was approved at the AGM. Thank you to shareholders for approving that. Our cash burn, you'll see is down substantially quarter-on-quarter, about 30%. And year-on-year, for the same quarter, is down 40%. So we continue to strip out CapEx, strip out any residual OpEx out of the business, and that gives us that extended runway through what we consider to be some fairly significant milestones ahead of us. Looking ahead, we continue to maintain that strong liquidity. We've got more grant funds in the pipeline. We've got revenues flowing from Canada and now the U.K. I'd expect that trend to continue and, in fact, increase as we mature those projects. And not forgetting that we don't have that $4 million to $5 million that KBR are contributing in that $17.2 million either. So that's additional to the work, but that's offsetting a lot of the work that Hazer is doing on the ground. Our pipeline, I'll talk about shortly, but that's increased to $51 million. It's more about quality over quantity. But again, just illustrating that we continue to see strong demand for the tech, and I'll give a bit of insight into that very shortly. Just moving to the hydrogen market. Look, it's a big market, a big problem with a big prize, okay? We -- and this is the problem that we're trying to solve, which is it's -- currently, the addressable market for Hazer is about 100 million tons and that you'll see that on the bar on the left. To put that in context, people often ask, how big is that? Well, actually, it's valued at $206 million -- sorry, $206 billion on order of magnitude out there. But that in context is effectively equivalent to the global iron ore market. So you can give some scale to this. And all of that is produced with steam methane reforming, an incredibly carbon-intensive process, 1 ton of hydrogen, 10 tons of CO2. And it's responsible as a total industry for 920 million tons. Again, in context, -- that is 2x Australia's total CO2 emissions today. So it's a massive industry with a massive problem that Hazer has the opportunity to disrupt. The growth you'll see on the right, ammonia, 3x in the next 25 years, but steel 10x between now and 2050. And we're starting to see that. The deal flow is increasing in steel. We've been public on 2 opportunities. We're very well placed with ammonia with KBR. They're the world's leader in ammonia technology as well as methanol, and we've got the deal flow now coming through steel. So we're well placed on those growth industries. And we've got a very exciting period ahead in terms of our ability to disrupt today's industry, not the future industries, but today's industry. A few words on graphite. It's still a very hot market. It's a critical mineral of the highest order. The U.S., the U.K., EU, Australia of course, have got it at the top of the list. It's a major component of the energy transition, and it's a major sovereign risk as China continues to control the supply side, and Tom will talk about the opportunities we've got on graphite very shortly. In terms of how the industry is playing out, we continue to see methane pyrolysis coming of age. Some of you have picked up the news flow. We're witnessing a shift. There's growing industry support, government investor support for the technology is a viable hydrogen pathway on the back of the challenges that green hydrogen faced over the last 2 or 3 years. ExxonMobil has now come into this space. They are one of the world's largest publicly listed companies. They are $0.5 trillion. They've teamed up with BASF to develop a technology. So that's a really big signpost for the industry as well as the technology. And I'm very confident that's going to spur demand from others in this space like Shell and Chevron and ConocoPhillips and others that see this as a viable technology. KBR, of course, it's a growth pillar for them. We teamed up with them exclusively to get ahead of the game last year. And we're also seeing a big shift with government policy and changes. The U.K., the U.S., Japan all recognize methane pyrolysis now as a viable pathway. And I'll talk shortly to how Australia is now gauging this through the Guarantee of Origin scheme, which is now seeking consultation on methane pyrolysis. So in summary, the industry, the government, the investor support is all starting to gain momentum, and that's very exciting for our company and our technology this year. Tom, good time to talk to, I think, technology scale up and the go-to-market strategy. Thank you. Tom Coolican: Yes. Thanks, Glenn. Okay. So just a quick recap. KBR, one of the world's largest engineering companies, and we signed up with them about 9 months ago now. So it's been a heck of a well within 9 months. Getting up to speed with a playbook of a major multinational that scales up technologies has been a big challenge for us. And I think that getting these early days out of the way, getting the first run on the board, I think, has been a real game changer for us. And it sort of puts us in a position where we are confident that this model works, and we're seeing the first paid study starting to come through. So that's the line of sight that we see to real growth. We've got basically an 11-year term with KBR, and that's backed by a USD 3 million contribution from them. So engineering services and support, in-kind marketing, all sorts of, I guess, growth tools that we need are being provided and supported by KBR for us. KBR's engineering is sort of world-class and world known, and many people will know KBR as the company that delivers some of the largest mega projects in the world in the billions of dollars. But KBR's technology division is a completely separate division that licenses into a lot of those projects. And we are one of 80 technologies that's licensed by KBR into those projects. So there's a lot of new and emerging technologies that KBR continues to incubate and grow and help sort of turn the corner. But there's also the real traditional KBR technologies like the ammonia licensing that just very briefly, ammonia licensing for the ammonia plants that produce a fertilizer around the world, KBR licenses about 50% of those. So they have a very traditional playbook on how to make these really large-scale technology licenses and then also a growth playbook as well, which we are really locked into. So we're firmly in execution mode at the moment with KBR. We're following the bouncing ball. We're following the standard process that they use for developing and growing a technology. We've secured our first revenue-generating study, and we are part of the net zero portfolio. So the big thing now that we're working with KBR is those larger trains and larger projects so that we can engage with the biggest companies in the world for industrial decarbonization and making sure that our large-scale single train capacities are really solid. Just one last thing to mention on that. The cultural fit between KBR and us. We feel pretty lucky actually. We've got similar values and cultures. They're a real creative and inquisitive type engineering organization, and we get a lot of that really good feedback between us that we seem to work pretty well together. We -- scaling up their technologies or scaling up technologies is what KBR's DNA is all about. That's how they've built their company to the scale that it is today. And then following the scale up to deployment and multi sort of industry and multi-global technology deployments are what they're really good at. So yes, we do feel like we found a very high-quality partner in KBR, and we're working as closely as we can with them to really scale up with them. Next slide, please, Simon. So marketing-wise, they started off sort of extracting all of our information and all our existing marketing information to develop all of the package of marketing tools that they have. They need tools that they can actually deploy through their website. And if you go on to their website, you'll see that we're in the clean ammonia and decarbonization section of their website today. They're also fantastic on LinkedIn and marketing and promotion and just getting out there at conferences all around the world. They're at the major global conferences, everything from the ADIPEC conference in Abu Dhabi recently to, I believe they'll be in Barcelona in 2 weeks, again, promoting the technology and really pushing the -- this is a new solution for industrial decarb. So it fits into the industrial decarb toolkit that they use when they talk to their major clients. One thing we like about the way that they do their marketing is that they're actually quite responsive to market forces and market changes. So one month, we'll be talking about how do we make sure we've got clean hydrogen in the best markets in the world. And the next month, we're talking about structural infrastructure projects and how we can actually make sure we've got a solution that works with steel or works with concrete. So they do move pretty quickly. Next slide, please. If we can go on to how we're going. So run #1 on the board. So the Marum Energy Storage Hub project that Energy Pathways have developed and are developing in the west of the U.K. near the Lake District is a complex integrated energy project. And for KBR and Hazer together, this is our first paid concept level, so concept engineering study. So it's great. We're working really closely with KBR, but we actually really like the way Energy Pathways does their business as well. They're integrated really well with the local community, the local government and also their national government as well. So the U.K. government has actually designated this project as a project of national significance. So it's actually a national energy significance project. It covers everything that Hazer has wanted to do. So we've got the hydrogen conversion project and the technology there from methane. We've also got the integration to KBR's ammonia technology as well. And EPP is able to get to fast tracking the government approvals. They've got government support from the ministerial level. So they've got focal points so they can work with to make sure that we don't have any of the usual large-scale robots when we're doing the engagement. But at the same time, they seem to be very connected on the ground as well. So for us, it's a 20,000 ton per annum Hazer facility. So it's right in that sweet spot for size for economics. The study will be ongoing for the next couple of months. Feasibility scope progress is for hydrogen, ammonia and graphite production and EPP are actually actively looking for ways to deploy graphite at both that industrial large-scale supply, but also at the high-end supply as well, which we think is very exciting. And we are leveraging the KBR Alliance for that ammonia integration with their traditional ammonia technology. So from a COO's perspective, just operationally, I'd just like to say that with the commercialization strategy that Hazer has been on, this is the operationalization of it, if that's a word. We're actually now doing what we say we do on the box. We're actually doing those concept studies. We're moving them towards FEED-ready, and this is actually the actual pathway that we see the company is best suited for to actually grow to the next stage. I'll hand back to Glenn here to talk a bit about the sales pipeline. Glenn Corrie: All right. Thanks, Tom. And yes, Ben and the team at Energy Pathways are doing great things on the ground. They're also really exploring that graphite market as well, Tom, in the U.K., which is also getting a lot of momentum. So we're excited about that project. The pipeline is here. We've updated a little bit. You'll see we've added the live projects that we've got. We've got that first-mover advantage, we think, importantly, in Asia, Europe and a bit of North America. You will have seen in the last quarter, we were sitting at around 45 active global customer leads. That's sort of risen to over 50 now. To give you a bit of color on what's come in, we've actually had 3 new steel opportunities on the back of our announcements of POSCO and Whyalla. So the steel industry, as we'll talk about shortly, is really getting a lot of momentum. We have EV company out of Europe that is exploring and looking at the -- not just the hydrogen side, but also the graphite side and one large gas and power utility out of Asia Pac and also carbon trading group in the U.S. So we continue to see big demand for the tech. Asia Pac is starting to really get a lot of pace as they have limited opportunities to decarbonize and methane pyrolysis fits just beautifully into the supply chains in those areas that have limited access to carbon capture and renewables. So we continue to explore opportunities there. If you club all of those opportunities and those blobs together, our pipeline adds up to about 1.5 million tons per annum. And as you remember from the first slide or one of the earlier slides, -- that's over 1.5% of the global demand today. So it's a big pipeline. Of course, we work through it systematically. We've also had some shareholders and observers reach out and offer up some opportunities, which we love. One that I will call out is an RFP in the U.S. called MACH2, which is the Mid-Atlantic Clean Hydrogen Hub that is out there at the moment seeking proposals from hydrogen suppliers for $1 a kilogram. And on the back of that, with ability to secure hydrogen offtake in 2030, and it fits a lot of the opportunities that we've got, and it ticks a lot of boxes for Hazer. So we continue to be active on the ground globally with our pipeline. Just shifting gears to steelmaking. We had a lot going on in the quarter with steel, and Tom will talk to some of the opportunities very shortly. But just so that everybody is aware of how our technology fits into steel. This was in our Whyalla announcement, but just a little bit of an explanation. Steel, of course, is a massive industry with a massive problem. It's 8% of the world's CO2. Our tech is actually a very perfect fit for steelmaking, very strong synergies and where really everything ties together for us as depicted in that illustration. There's clean hydrogen that's used in the direct reduction process of iron ore into iron, and it's got a built-in graphite offtake because graphite is used extensively in the production of carbon steelmaking, in particular, in the use of a recarburizer in the electric arc furnace. So it really is where both prongs of our technology fit wonderfully into one application and that built-in graphite offtake is just so valuable for us. There's other synergies. Of course, we use an iron ore catalyst, and that's consistent with steelmaking. We produce and can produce hot hydrogen that integrates into the DRP process that minimizes energy intensity of the overall process. And importantly, the economies of scale. It's a large industry that needs a large solution. And of course, with Hazer's fluidized bed reactor, we're capable of getting up to very, very large scales that fit nicely into steelmaking. So it's a lot where everything comes together for Hazer, and that's really an extension of several opportunities that Tom will talk to now in terms of Whyalla. Thanks, Tom. Tom Coolican: Thanks, Glenn. Yes. So the Whyalla Clean Steel bid, I'll just give a quick update there. The process for the sale of the Whyalla Steel Works is a government-led and highly confidential process. So there are limits on what we can share. As publicly announced, Hazer has entered into a binding MOU with M Resources, recognizing Hazer's ability to decarbonize steel. M Resources have submitted their bid as part of the process to acquire the Whyalla Steelworks. Hazer technology was a key component of their bid and provides the decarb component. KBR is also supporting the M Resources bid. KBR has a long history of supporting large infrastructure projects in South Australia, including at Whyalla itself. So KBR knows the lay of the land and the ground really well. And look, we're genuinely excited about Hazer's ability to decarbonize the Whyalla opportunity. But also more broadly, it's just another recognition that the Hazer technology aligns with steelmaking very, very well. So it's something that we feel is probably one of the best fits that there is going around for how you can deploy Hazer. Glenn Corrie: So just on POSCO, thanks, Tom. On POSCO, you will have seen we extended our strategic partnership with POSCO. They are the sixth largest steelmaker. In fact, they're the largest outside of China. We're very privileged to be partnering with POSCO in integrating and deploying our tech into clean steel, particularly in South Korea. And on the back of a lot of successful graphite testing over the last quarter, that extension has been signed. Again, big industry, big player. The HyREX process is very advanced. Again, it's a DRP electric arc furnace process. We're now focused having gone through that stage gate of graphite testing. We're now developing the next steps for the project. So that's something to look out for over the course of the next year or so. So a really important partnership for us as we continue to highlight the importance of our technology and its fit into steelmaking. That's probably a natural transition into graphite. Perhaps, Tom, if you wouldn't mind talking to sort of where we are with application testing and the next phase of our graphite monetization plan. Tom Coolican: Absolutely. Thanks very much, Glenn. Just to call out, I guess, this is probably one of the most integrated team efforts that Hazer has done over many years. The graphite has been studied by the universities. It has been developed in all sorts of different applications. And I think now it's sort of coming to a natural business case development. So it's really come out of the research and study. And something to call out, we'll move on very quickly from this slide, but something to call out is that this is -- the Hazer Graphite is an absolutely unique product. It is not standard graphite. It has its own unique properties. It's not carbon black, and it's not other products as well. So the research has given us the insight into what this product is. And now the application development uses that research to actually be able to deliver it to the largest global markets. So just moving on to the next slide there, please, Simon. So the Hazer Graphite being this versatile and valuable product, what we've gone and done basically is we've assessed our graphite across a number of different industries, and it continues to be very encouraging from the results. Where you can see from the strategy that we're looking is for the world's largest markets where we have the largest consumption of carbon-based product that is around the world. And if you think about concrete, concrete is the most significant man-made product in the world in terms of volume. Our strategy, I think that over the last year, especially, we've really refined this strategy to target very specifically the response to market movements, but also the focus on these large volume markets with a genuine direct drop-in application. So what I mean by that is that out of the back of the reactor with no post processing. This product can be dropped straight into these applications, and that's where we've been really looking. And the key for this, obviously, is that the attractive price point, we have a minimum price that we're targeting. And what we're seeing is that at the moment, typically above USD 500 a ton is where we're aiming to deploy our graphite. The work completed so far from the work priority markets that are emerging for us. Iron and steel manufacturing is definitely really high on the priorities just because of what we talked about before with the synergies in using the hydrogen as well as the graphite. Concrete additives is another one where you actually see pretty promising results so far and more to come and also asphalt binders. Now customers there are seeking lower emissions carbon products. They're trying to get away from either the high CO2 products that are post generated or from the mined products as well. And so these are sort of the largest addressable markets that we've been able to identify in the world where we get that price point that we're really chasing. At the same time, and Glenn mentioned it before, we continue to receive strong inbound interest from critical minerals applications. So EV manufacturers, battery manufacturers, defense applications, high-value sectors. These are much more longer-term qualification processes, and they will require post processing. So we've set up our strategy to be short-term large-scale addressable drop in market and medium- and long-term post-processing market so that we can continue to address those inbounds as they come to us. Ultimately, they're not going away, and we need to be able to support that critical minerals view. Finally, our recent MOU with Kemira sort of really strengthens that view with that and the work we're already doing through our Veolia partnership that this particular type of graphite with its properties has some promising opportunities in water treatment as well. And that just shows sort of the breadth of capability of the specific Hazer graphite and its unique properties. Back to you, Glenn. Glenn Corrie: Yes. Thanks, Tom. And I was on a call with the DOE last night, actually in the U.S. and graphite is an absolute priority for the U.S. at the moment and arguably over and above hydrogen. So it's quite a nice fit for us that we can effectively take a gas feedstock and effectively convert that into hydrogen, but also a critical mineral that is so desperately in need in some of these developing nations or developed nations. Just wrapping up, in terms of the corporate side. We just included a bit of an update on government policy just because we see things changing. We've actually had the Arena Board and management at site, which was an excellent engagement. We've come a long way since they backed us back in 2020 or thereabouts. The CDP, of course, operated very successfully. The tech is going to market. So it's a success story in that respect. The pipeline has grown enormously. So I think they were pleased to see the progress that we've made. We talked a lot about emissions. We talked a lot about cost positioning of Hazer relative to green hydrogen and all the other hydrogen pathways. And I genuinely believe that these engagements are super critical for Hazer as policy continues to evolve. And we're starting to see that shift. Some of you may have seen, but the Guarantee of Origin scheme is now out for formal consultation on an amendment that we expect to include methane pyrolysis. So that's strong recognition of Hazer and strong recognition of this extremely viable pathway. I also spent time in Canberra. I met with -- had a privilege of meeting with Minister Ed, the Minister for Industry Science and Innovation, excellent conversation, keeping Hazer relevant in Canberra, but also at the policy level. I met with the Climate Change Authority, the Critical Minerals Office, of course, just to position Hazer and how we fit into the sort of the ecosystem of decarbonization technologies that are available. And so really good feedback on the tech, the progress, but also the funding programs that are available and the grants that are out there now. It's much broader than it ever was. There's industry programs around clean steel, green iron, Whyalla specifically, there's over, I think, at least $1 billion being allocated to Whyalla from the federal government as liquid fuels, critical minerals, they're all open, and we're all exploring all of those at the state level as well, WA, South Australia has earmarked $400 million for -- specifically for Whyalla technology. So we're hunting down and exploring all of these opportunities, and we're very well positioned where we are as a company and an advanced technology. I think that's pretty close to the end. I think if we just move to the next slide and then open up the call for Q&A, I've seen a bunch of questions come through already. So we're keen to get on to those. In terms of our next 12 months, we're going to continue to come out with updates of what the time line and the milestones look like. This year is really all about converting pipeline into licenses, and that's a strategic imperative for us. I hope you can see the signposts are there, the partnerships, the early runs on the board, the design package is there. The pipeline is growing. The funding position is strong. So we're in a very, very good position to execute on those projects and opportunities that give us that pathway into licenses. And we're going to leverage KBR. We're going to leverage all of the work that we're doing with graphite. And just a reminder that one deal here, one sizable deal at 50,000 tons per annum is in our economic model worth about $80 million to $100 million of license revenue. So you can see the size of the prize is there, and that's what we're focused on effectively realizing. We've got to advance our key projects through FEED and contracts. We've had a few questions on Fortis, and we'll talk to that as well throughout the quarter. We're building momentum again there, and we're moving forward very positively. We lost a little bit as we went into Christmas, but we're fully aligned with Fortis, and we've got a plan of attack there, and we'll come out with more information on that shortly. Whyalla is a real game changer, as Tom identified for us. It could be a very transformational project and strategic, not just for Hazer, but for Whyalla as well as for Australia. So that's -- we're really excited about being in the mix there, and we know our technology is differentiated. Graphite monetization strategy is coming together. Look out for near-term updates on that, our strategic partnerships, our offtake signposts -- and then finally, unlocking new growth, new strategic partners, new investors, new deals, new markets. That's the focus of the company at the moment. Those 4 pillars of our strategy. Of course, that's underpinned by a robust financial strategy and a can-do attitude from the team. 2026 is really shaping up to be an exciting year for Hazer, strong tech tailwinds of the market, the government tailwinds, the deep pipeline, the partnerships and the funding position, and we're really excited about delivering. Simon, should we just turn to the Q&A? I just noticed we've 35 minutes or so I'm keen to get some questions going. Simon Pitaro: Yes. And we had probably 12 come in before we started already. So let's just start with those. So Kapil Seth e-mailed earlier about a KBR selecting a biomethanol project in the Middle East. Did you -- and given the KBR Hazer alliance and the overlap work with the demonstration plant, are there active discussions ongoing with KBR to use the Hazer Tech for this plant? Glenn Corrie: Yes. No, that's a good question, Phil. Yes, look, I can't comment on specific announcements that we're going to make or will or may make. But KBR, in particular, has an extensive and strong relationship with many players in the Middle East. There's a number of big Middle East projects that are available or open at the moment, as you've identified. We are throwing those into the pipeline. They're all under consideration. The Middle East continues to be a very strategic market for us. It's got low gas prices. It's a big ammonia, probably one of the largest ammonia markets in the world, along with methanol, big capital, big players. They're not necessarily the fastest out of the blocks, but they are slower burners but big -- but potentially very big projects and too big to ignore. So definitely a strategic market that we'll continue to look into with the right partners. Simon Pitaro: There's been a couple on M Resources, so I'll try and put these together. So Atosha asked, how did the M Resources partnership come about and why were they considered to be a good partner? And I guess if they don't be selected, do you think there's an option for you to still be used in whoever is selected? Glenn Corrie: Very good. Okay. So you might have picked up Atosha in the announcement that we're partly a free agent. Of course, that if -- and we've had this discussion, of course, with M Resources in terms of their ability to win and if they don't, what happens. Look, we've known a lot of the M Resources team separately for quite some time. So there's an established relationship there. It was a natural discussion as they moved into the process. We got to know what they were doing and how they were sort of thinking about the decarbonization aspects of Whyalla. They've made an assessment of Hazer, but also other tech methane pyrolysis technologies. They chose us as well as electrolyzers. They know there's a massive difference between us and electrolyzers. It's literally night and day. So it was clear from the get-go that Hazer could be a very strong fit for that project and the whole decarbonization plans for that region. It moved fast as we got into the back end of last year. And so we got talking about how we sort of would bring this together. We got involved with them. We sort of papered it all up. And from what I've seen, I know Tom has said that we're obviously under confidentiality, strict confidentiality, it's a government process. But what I can say is from what I've seen of the bid and how Hazer fits into it, techno-economically, I'm very confident that their bid is a very, very strong one. And so we are going into this very positively. It's a process that will take a bit of time, but it's a very strategic project for everybody involved. So we're, again, excited about the opportunity with them. Simon Pitaro: Excellent. Let's just move straight into Fortis. Has the site been identified? I know you sort of touched on it briefly, and there's a few other questions about Fortis. So can you just give a quick update on that? Glenn Corrie: Yes, I've seen those, Simon. Yes. So good questions. Look, more broadly, the project is going well. We would have liked to have provided an update at the back end of last year. I think Christmas and New Year got in the way and holidays and the like. But we're back at it. I know feeder under the desk. It's a large project. It's advancing well in strong collaboration with FortisBC. We engage frequently. I know Tom is dealing with the team in Canada weekly, if not daily at the moment on aspects of the project. Our focus is on project maturation. Site FEED, completing FEED with the right partner and getting the project to a development FID. They do take time. We're making good progress, and we're exploring ways to continue to accelerate -- how do we accelerate this project. I know from Nick and Joe and the team in Canada, it's a priority project for Fortis. It's got government backing government support. They've chucked CAD 11 million behind it. And again, just keep an eye out, we expect to make an update on that project in the near term. Simon Pitaro: All right. Can you elaborate on the status of the larger reactors? Glenn Corrie: Do you mind taking that one?? Tom Coolican: Take that one, if you like, Glenn. Yes. Thanks. Yes. Look, the design package we're working on at the moment is a design package, which is fundamentally built around our proprietary reactor hardware design. Where we've targeted the base design is 30,000 tons per annum of production, which is already significantly large in terms of hydrogen production. The design that we have developed has the ability to be scaled up or down from that point. So one of the key elements of our design was we didn't want to go with something which was sort of scale up, scale up, scale up to the point where we hit a limit. What we decided to do is go for actually quite a big reactor design and then be able to scale it both ways down and up, so we can go all the way down to prototyping and all the way up to 50,000, maybe 100,000 tons per annum single-train capacity, but I don't want to push our CTO too hard on what the maximum size would be. The concept of fluidized bed reactors has been around for a really long time. It's a well-trodden path. And so we work with the world's experts in fluidization in process design and in these reactors so that we are confident that we're not going to sort of invent anything brand new here. We're just using the best in the industry to get it exactly right. Some of the principal challenges that we have that are the areas that we feel we've actually had the most opportunity to succeed is in optimization of heat, the conversion basis and the quality of the product. So if we're comfortable that these are actually under control at this 30,000 ton design. This gives us the capacity to be able to move up and down from there. And yes, it's something that we know is a huge challenge for the industry and having those ones really under control, I think, is actually key for us. Simon Pitaro: Thanks, Tom. I think let's probably move to graphite because there's quite a few on the graphite. And so Dave sent this one in, but it covers quite a few of the others there as well. Are there applications for Hazer graphite that are now good to go? No further testing needed? Glenn Corrie: Yes. So Tom, I'll let you jump in. I think, look, with the graphite work that we've been doing is extensive, as Tom explained. We've got -- we're working it internally. We work with all of these strategic partners, Kemira the latest. I get often asked about why an MOU. MOUs in my -- in our view, are value creating because we have partners that actually do work and contribute to the overall strategy of the company. And often it comes as part of the collaboration. But in Kemira's example, we're doing work with water treatment alongside some of the work that we're doing with Veolia out of France. So there's a lot of work going on. We've identified, as Tom said, some strategic markets in asphalt, cement, asphalt, bitumen, steelmaking as priority markets, what we call drop in. limited or no post-processing or preprocessing before they go into the particular application, but they're large markets that have got what we call high confidence to them. And their pricing ranges can be anywhere between USD 300, USD 400 a ton and over $600 or $700 a ton. And that's consistent with our economic model. And of course, that adds great value to the technology and the techno-economics, but also the overall cost of supply of both the graphite and the hydrogen product. So lots of markets. We're prioritizing them. Tom, anything to add on that? Tom Coolican: Yes. I probably just add one thing. No further testing required. Ultimately, your end user, say, for example, it's a concrete manufacturer will do their own testing as well. So we can go with a product, which we say is good to go, and that end user will actually conduct their own tests because they're going to have to demonstrate to the infrastructure project or the government or whoever that it is actually as good as what we say. So there will always be that end user component to the testing, but that shouldn't stop us from actually having everything certified and ready to go so that end user can actually do their final testing. Glenn Corrie: Yes. And steel is built in and is a built-in offtake. That's a beautiful way of thinking about it. The carbon actually goes into the production of carbon steelmaking. So it's a pure sequestration of CO2 as well. So there's a lot of benefits. We don't often call out our graphite as low emissions, and we should more frequently, frankly. But the -- effectively, the emissions associated with our graphite and the way policy is shifting is a very valuable product, not just from an application perspective, but also from an emissions perspective and a pricing point as well. Simon Pitaro: I think we've probably got time for 2 more. David Sell sent this one earlier. Is there any outstanding ARENA grant money due for the operation of the CDP... Glenn Corrie: Thank you, David. Yes, there is. In fact, there's other grant funding available to us as well. I think it's around $1 million, and some of that's going to be released this year. So that's another form of nondilutive. On top of that, I think we've got $2 and a bit million from Mitsui, the Western Australian government, which has got some milestones coming up as well. So these are very valuable funding inflows for us because they're nondilutive, and they contribute to the growth strategy of the firm. There's other grants in the pipeline as well. There's industry growth program and some of those other grants that I mentioned. So we're going to lob in bids on some of those as well. Simon Pitaro: All right. And a final one here. Does Hazer have any analyst coverage? And if so, has that had a positive effect on the register? Glenn Corrie: Yes, we do -- it's a good time to perhaps call out an analyst actually. We've got on coverage, Declan Bonnick from Euroz. Declan initiated, I think, last year or maybe the year before, but very good initiation report. Declan has -- he does updates frequently. I think his target price is sitting at somewhere between $0.70 and $0.80. We've also got Philip Pepe from Shaw and Partners, who covers us. I think his target price is also in the -- in that same sort of range over the next 12 months, $0.70 to $0.80. I think if you'd like to get hold of their research reports, then either reach out to us or reach out to the brokers directly, and I'm sure they can get you a copy. They're excellent analysts. They've been across energy, tech, in the space for a long time. We're privileged to have both of them on board. And I'm also confident that we're going to probably pick up a few more analysts this year and see what we can do with getting them to site and across the -- closer to the technology. Simon Pitaro: All right. Thanks, everyone, who joined us today. Thank you to Glenn and Tom for the presentation. Look, Glenn, I might just hand back to you for a closing comment before I hit the end button. Glenn Corrie: Yes. Look, I don't have anything more to say other than thank you for supporting us. Look, we're in a really good position. We did a lot of work last year to set the foundations of -- for calendar year 2026. I feel like we're in a very good position. I know sometimes some of these things don't go as fast as we'd like. You probably don't appreciate that I'm the most impatient person in the world. So join the club. But we've got a very good tech. It's a very, very strong tech. We've got a strong partner in KBR. We have got, I think, the turning tailwinds now of government support worldwide, including in Australia. We've got that deep pipeline of opportunities that's growing also in Australia that's getting momentum. And we've got that extended runway, that funding runway of over $17 million to enable us to effectively kick some important goals for the company and the technology. So again, thank you for joining the call today, and we'll endeavor to get back to you all with answers to the questions that we weren't able to cover today. Thank you. Tom Coolican: Thank you.
Johan Bartler: So welcome this morning to the Volvo Group Fourth Quarter Press Conference. Today, we'll do, as we always do, we will listen to the presentation by -- from our CEO, Martin, and then listen to Mats. And then we'll follow up with a Q&A session. So with that short introduction, let me hand over to you, Martin. Martin Lundstedt: Thank you. Thank you, Johan, for that. Also from my side, welcome. It was always special with the full year also report and of course, also in more detail quarter 4. So maybe then to get started. As you know, we are still in a period with uncertainty in our key regions and in particular, for North and South America, where we have seen a continuation of cautious stance among our truck customers. Having said that, lately in the later part of the quarter and also in the beginning of the year, there are signs of stabilization and somewhat a recovery. And while Europe had a positive volume development in the quarter, volumes in both North and South America were lower in the quarter and are expected to be weak also in the first quarter of 2026. And that is, of course, related to the order intake that we had earlier in '25. But however, when it comes to the market forecast for the full year of 2026, we are revising our market forecast upward for North America as we do also for Europe, even if that is more marginal. Despite many moving parameters, the group had a solid performance in the fourth quarter with a flat level of sales if you adjust for currency and the divestment of SDLG, an adjusted operating margin of 10.3% and good cash generation. Operationally, we continue to drive what we can impact ourselves, not at least by utilizing our flexibility toolbox to maintain balance between demand and supply, and very important where we are in the cycle to keep inventories at the right levels. Focus is also on effective cost control, commercial discipline and the service business. And services did have a positive development during the quarter with a strong underlying growth of 5% adjusted for FX and SDLG, showing that our customers around the world continue to utilize their vehicles and machines. And that is, of course, a very important feedback. And it also means that the fleet replacement rate eventually will have to increase. That is a given. While having strict cost control, selling, admin, industrial, our priority in innovation and technology continues. At the same time, also in these areas, we are continuing to gradually adjust and to have a correct time phasing for our project and product portfolios. Having said that, there are segments that are moving quicker than anticipated with good growth prospects, both here and now and moving forward. The huge demand, a little bit surprising also for smart and not at least speedy alternatives for energy and power is driving the demand for Volvo Penta's power and energy solutions, not at least for data centers and AI factories. And with the recent launch in the beginning of this quarter of the gas-powered G17 engine that is building on our existing technology and industrial stack, meaning that we can benefit from scale immediately, that position will strengthen further. The same goes also for mining and defense areas where we will continue to increase focus. So moving forward in these turbulent times for global trade, we focus, and I've already said that, on activities that we can influence ourselves. Apart from what I've said in terms of cost and commercial discipline and services, we continue to build on our strong regional value chains, combined with global capabilities. The world is moving from a more global synchronized system more in steps into a regional platform. And there, Volvo is well positioned. So as we conclude the turbulent '25 with solid sales and group margin supported by underlying resilience, I would like to take the opportunity when we have the full year report to thank customers, business partners and colleagues for great cooperation. With uncertain business conditions, strong and close relations are -- they are always important, but more important than ever. And finally, the world will still need efficient and effective transport and infrastructure and energy solutions, and the group is well positioned to leverage these opportunities moving forward. So if we look then into the fourth quarter, net sales declined to SEK 124 billion on the back of lower truck volumes, but it was flat development when adjusted for currency and divestment of SDLG. We delivered a solid result in these turbulent times, resulting in an operating income of SEK 12.8 billion and a growing operating margin of 10.3%. Cash flow amounted to SEK 19.3 billion, which resulted in a net cash position in Industrial Operations of SEK 63 billion. Return on capital employed in Industrial Operation at 25.3% and EPS SEK 4.73. Moving over to volumes. Truck deliveries declined by 3% in the quarter to 56,700 vehicles with drag in North and South America that I've already said, offset by then growth in Europe. For Construction Equipment, deliveries decreased by 46%. But when adjusting for SDLG, the machine deliveries increased by 9%. And if you want to be even more granular, they increased by 10% for the Volvo brand since Rokbak back then previous Terex didn't increase as much. So 9%, excluding SDLG. Electrification, still with different uncertainties related to the electrification, not at least when it comes to a number of the enabling conditions, underlying demand continues to be rather slow. But orders for fully electric vehicles adjusted for SDLG increased still by 3% and deliveries increased with 20% when adjusting for SDLG. This growth was mainly supported by a 15% growth of electric light commercial vehicles in the Trucks segment. That is not surprising. We are now more and more into the new Master also Renault Master for Renault Truck in that segment. And obviously, that is also a segment that will continue to grow with last mile deliveries, et cetera. Coming over to top line and sales. If we start then with vehicle, machines. Overall sales of vehicle, machines declined 1% adjusted for currency and SDLG. Truck vehicle sales were down 4% on the minus 3% truck volumes, which is showing that price discipline also in this quarter in the softer market environment is working well. Construction Equipment adjusted for SDLG was growing with 13%, which was supported by sales of Volvo-branded machines in mainly Europe. Penta, 18% sales growth, FX adjusted, supported by North American data centers as well as the mining segment, also good demand in Asia. And Buses had a growth of 28% in the quarter, primarily driven by the Prevost brand in North America and by the Volvo brand in South America. Top line for service. Our service business, as I said, continued to develop well, and we grew 5% in quarter 4 adjusted then for currency and SDLG. You will hear that a couple of times with positive development in all business areas. And these developments, as I said, and I think this is very important, are proof points of one part, our push for more extensive service offerings that have been alluded to many times before, not at least when it comes to service, repair and maintenance contracts, et cetera, but also then that our customers continue to utilize their vehicles and machines and that the installed fleet needs to be renewed sooner or later. Buses were particularly strong with growth of 17%, driven by strong sales in Europe, Asia and Mexico. And Penta also continued to be strong with 8% and the same goes for VCE, excluded then SDLG, also had 8% growth. So the group's service business pacing at SEK 124 billion, 12 months rolling represent almost 26% of the group revenues, which is, of course, good in this part of the cycle. On the Trucks side, very proud, of course, and maybe you did see also the press release yesterday, super proud for our Volvo Trucks colleagues here. Second year in a row, Volvo Trucks was the heavy-duty champion in the European heavy-duty market with over 90% market share. And we really see that also on the back of strong customer satisfaction and a very competitive offering. You did see the FH Aero here that has really been doing great strides into the market. So tremendous offer by the Volvo Trucks team and led by Roger and all the colleagues there, but of course, the complete value chain. Volvo Trucks in North America, also important, delivered the first -- or the 125 all-new Volvo VNL to Highlight Motor Corporation, marking the largest order of the next generation of the all-new VNL in Canada to date. So now we are getting in also with this step-by-step with these volumes. And the first all-new Mack Pioneer was delivered to a customer in October, in the beginning of the quarter. And this marks, of course, a significant milestone for Mack Trucks, bringing the rejuvenation of the product range into the market. Also in October, the Volvo Autonomous Solutions team and Waabi, the leader in physical AI, have successfully integrated the Waabi Driver with the Volvo VNL Autonomous redundant truck. With this integration complete, both companies together now are focusing on really deploying this and support broad commercial deployment. Market environment, always very interesting. If I start with North America here, North American freight market, as I said, remains if you look at the figures and also the order intake during the bigger part of the year in recession. And so far into quarter 1, we believe that the North American will continue to be primarily replacement driven on the back of an aging fleet. The EPA '27 emission change will, in our view, only drive, if anything, a modest prebuy effect. So our current assessment of full year '26 is 265,000 heavy-duty trucks in '26. And we have increased then the forecast with 15,000 units versus the guidance provided in quarter 3. And what we can say is that later part of quarter 4 and also in the beginning of this year, we are starting to see somewhat better activity level. If that is a sign that will prevail, maybe too early to say, but of course, there are a number of parameters supporting that. The European registration pace continues to increase, and we have lifted the '26 total market forecast up to 305,000, which is then 10,000 units versus the guidance we had in quarter 3. Brazilian market contracted through '25, and we believe that the total market will continue to decline. We repeat and reiterate our total market of 75,000 for '26, even though that there are some movements in Brazil, not at least related to FINAME and the financing. And all of us that have been part of this for a while, we know that, that has normally a rather big effect. So let's see if that can support on the upside. But we -- for the time being, we reiterate that. And both for India and China, we are reiterating the market forecast as we had it also for quarter 3 or in conjunction with quarter 3, I should say. Book-to-bill, the overall book-to-bill for medium and heavy-duty amounted to 94%, both for the last quarter and for 12 months rolling. We managed our industrial system well in quarter 4 and had a book-to-bill balance both in Europe and North America. And also, as I alluded to with the right levels of inventory, that is super important where we are in the cycle right now. And for North America, we kept the balance by also working with a number of stop days, causing an under-absorption that Mats will talk about. But that is the right thing to do now rather than to take a further structural adjustment downwards. So on the back of the weak U.S. demand during the fall, we will also have some stop weeks for Volvo and Mack in the U.S. in the first quarter. And we take stop weeks, as I said, in quarter 1 rather than to structurally adjust for further -- adjust further downwards. And the reason is that we anticipate also partly supported now by recent order activity, a gradual recovery during the course of the year and in line with our full year guidance that we are increasing then, as I said, to 265,000. In South America, we have been more restrictive with the order slotting in quarter 4, and that is also explaining then the book-to-bill of 80%. We wanted to ensure that we did sell out more retail inventories, and we now have a situation that is in good balance when it comes to the inventories. Africa, Oceania and balance. And in Asia, book-to-bill mainly impacted by, number one, strong deliveries in quarter 4 in combination with lower demand in Middle East and Indonesia in the quarter. On the market share then, Volvo, Renault Trucks continued to deliver strong market shares for the full year. Volvo at 19% and Renault Trucks at 9.4%, giving a total of 28.4%. And Volvo Trucks then ended as a market leader. And on the battery electric side and despite that more OEMs are now delivering BEV solution, by the way, which is good because we need to accelerate that for Europe. Volvo Renault still holds a 39.1% market share combined for the year. North America, Mack Trucks self-help activities, not at least to stabilize the supply chain paid off during the course of the year, and they have step-by-step now regained momentum and their share is now 8% for the full year and later part higher. And Volvo Trucks are back on the right track also after the introduction of the all-new VNL here. So we also did see better market shares during the later part of the year, but 8.5%, I think it was for the full year. Brazil, Volvo remains market leader, market share of 23.2%. And Australia has been transitioning during the year from Euro 5 to Euro 6. We were ready with that rather early, lost market share when market were selling out Euro 5s, but we have seen also a good momentum during the later part of the year. So we expect that to stabilize. VCE selected Eskilstuna. You're all aware of that in Sweden as a location for the crawler excavator factory for the European market. Capacity of 3,500 machines in the 14 to 50 ton classes. And these excavators will be built on a mixed model assembly line for all these models, but also for both electric and internal combustion engine. And the closing of Swecon acquisition, our retail partner and wholesale and retail partner, I should say, in Sweden, bigger part of Germany and Baltics is expected to close this week on January 31. And this acquisition will strengthen Volvo CE's market position further, not at least then in the very important service business. Market forecast, similar picture, you can say, as truck. For North America, we are now guiding a flat market in relation to previous year. That is a 5 percentage point upgrade since the forecast in quarter 3. Same goes for Europe. Now we say 5% as midpoint of the market saw somewhat growth, and that is also an upgrade of 5 percentage points. China, as a matter of fact, same plus 5% as midpoint, 5% percentage growth. And for South America and Asia, flat, and that is no change in relation to what we said in conjunction with quarter 3. Book-to-bill Construction Equipment reached 118% in the quarter, driven by both North America and Europe. North American demand is broad-based from the digital development, data centers, energy sector, onshoring of manufacturing as well as the possibility for customers to write off 100% of the machine value of the first year of operation. In addition, refilling of inventory at dealers given the better outlook now and where also dealers would like to have the right type of capacity to deliver to the market. And the European demand is encouraging with the larger markets such as Germany, U.K., Sweden now gradually coming back as well as the fact that dealer inventories are clearly moved into customers' operations. And also the other markets are supportive with largely then positive book-to-bill. For Buses, the transition towards electric vehicles in city traffic continues in quarter 4. Just to mention one very important example. Volvo Buses secured an order from Vy Buss for 73 electric buses that will operate in the city of Boras, from April '27. The order comprises city and intercity buses, including articulated buses. And just as a small anecdote, they will also be produced in Boras. So even if you are talking about regional value chains, maybe that is a little bit of an expiration of having that full circularity in the same city, but it happens to be there, we are very proud. And book-to-bill, 91% in the quarter, 98% that is more relevant for the bus business, as you know, with rather long lead times. So that is a healthy and good book-to-bill. In the quarter, somewhat lower was on the back of somewhat lower demand in markets such as Brazil and Mexico. Penta, as I said, it's interesting to see the rather high -- or I should say not rather, but high activity level when it comes to the power generation and industrial segment. Launched its first gas engine, both natural and biogas for sure, to strengthen the lower emission power generation offer. This will further strengthen Penta's position to meet the global energy demand across many segments and not at least data centers and AI factories. And again, that I think is interesting now with more and more of the customers in this space wanted to have alternatives for lead time and volumes. And with the control system capabilities that you have today to really bring in more engines with the right type of capabilities is a very efficient way of doing it for lead times, for cost and for efficiency. And the Volvo Penta IPS Professional Platform, the biggest now pod for propulsion systems, the biggest IPS, which was launched in '25 and opted for commercial use, but also for big yachts has made strong inroads in the yacht segment and very, very well received with several OEM now placing orders. And Volvo Penta has a positive demand momentum. Book-to-bill reached 109% in the quarter and 102% 12-month rolling. Financial Services, finally, the portfolio continued to grow with a stable new retail financing. It doesn't look like it's growing here, but that is -- I mean it's growing, adjusted for currency. And the sound portfolio performance was maintained, although increased delinquencies and higher write-offs. But if you see where we are in the cycle, I should argue that we have a stable and good situation well under control here. And the penetration rate full year '25 came in on a solid level of 30%. And also what is positive to see is the focus that we have had also on insurance offer from VFS working together with other business areas and the group brands to enhance the total offer for our customers. So by that, I will leave the word to Mats Backman, our CFO, to present the financial figures. So please, Mats. Mats Backman: Thanks, Martin. So looking into the fourth quarter financials then, and we are starting off with the group net sales. So net sales decreased by 2% on a currency-adjusted basis compared to last year. Vehicle sales dropped by 4%, mainly due to lower volumes on trucks, while service sales increased by 4% currency adjusted with contribution from all business areas. European volumes increased, which led to an increased sales by 10% currency adjusted, driven mainly by Trucks and Construction Equipment. In North America, FX adjusted sales decreased by 8%, driven mainly by Trucks, while sales were higher for both Buses and Penta. In South America, net sales decreased by 18% currency adjusted compared to last year, and this was driven by lower truck volumes. In Asia, net sales decreased by 10% adjusted for currency, driven by Construction Equipment and the divestment of SDLG. Excluding SDLG sales increased with 21% in Asia. Other regions experienced slightly increased sales, mainly driven by Trucks and Buses. Overall, FX effect was negative with SEK 11 billion due to a general appreciation of the Swedish krona. The main driver was the U.S. dollar depreciating 13% versus the SEK. The adjusted operating income for the group was SEK 12.8 billion with an adjusted operating margin of 10.3%. In Q4, earnings were again supported by the positive development of service business, continued lower operational expenses and improvements from our joint venture business. The tariff cost increased during the fourth quarter with a net impact for the group of SEK 800 million, and we expect net impact from tariffs of about SEK 1 billion in the first quarter. In the fourth quarter, we continue to see higher underlying material costs in North and South America, and we had under-absorption costs in the U.S. manufacturing system on the back of lower demand levels. The net R&D capitalization effect in the quarter was positive at SEK 1.5 billion with a year-over-year effect of SEK 800 million. FX had a negative impact of SEK 2.1 billion in the quarter, driven by the strengthening of the SEK. In fourth quarter, cash flow amounted to SEK 19.3 billion. The cash flow contribution in the quarter was driven mainly by strong inventory management, partly hampered by continued high level of investments. Return on capital employed trend declined to 25.3% on a rolling 12-month basis. And the net financial position amounted to SEK 63 billion with support from the cash flow in the fourth quarter. Net sales for Group Trucks decreased by 3% currency adjusted, driven by lower volumes, partly offset by positive development of our service business. Adjusted operating income amounted to SEK 8.1 billion with an operating margin of 9.5%. The lower adjusted operating income and adjusted operating margin were mainly driven by lower volumes in North and South America, higher material and tariff costs, partly offset by lower operational expenses together with good development of the service business and joint venture performance. And currency had a negative impact of SEK 1 billion in the quarter. For Construction Equipment, net sales decreased 8% FX adjusted. Adjusted for FX and the SDLG divestment, net sales increased by 12% in the quarter. Adjusted operating income reached SEK 2.6 billion with an operating margin of 13.9% Product mix with less SDLG from the divestment in the third quarter and more heavy machines together with positive development of our service business were the main drivers behind the improved performance. In the quarter, the tariff continues to building up and had a significant impact on the financial performance. The volumes were lower versus same quarter last year, driven by the SDLG divestment and currency had a negative impact of SEK 700 million in the quarter. For Buses, FX-adjusted net sales increased significantly by 26%, driven by higher deliveries on both buses and services. Buses delivered another strong quarter with adjusted operating income of SEK 683 million and 9% in margin. The result was supported by higher volumes with continued good price realization together with service business performance. In the fourth quarter, the tariff costs were building up and had a negative impact on the financial performance and currency had a negative impact of SEK 113 million in the quarter. Penta net sales increased significantly by 16% adjusted for currency, which was driven by more industrial engines and the service business. Adjusted operating income amounted to SEK 608 million with an operating margin of 11.9%. This was again on the back of strong volume development for both engines and services despite unfavorable market product mix and higher freight costs. Currency had a significant negative impact of SEK 337 million in the quarter. And then looking into Financial Services. The credit portfolio adjusted for currency increased to SEK 256 billion with a rolling 12-month return on equity of 10.4%. Portfolio performance continued to be good with delinquencies and write-offs under control. The adjusted operating income amounted to SEK 889 million, impacted by increased credit provisions, but supported by the portfolio growth. Currency had a negative impact of SEK 84 million compared to same quarter last year. And then finally, looking into a summary of our forward-looking guidances in the quarter and starting with FX. Based on the currency rates and 2025, we expect a negative first quarter effect from transaction and translation of about SEK 2 billion. We expect R&D net capitalization at approximately SEK 3 billion for the full year 2026 with a year-over-year negative effect of about SEK 1 billion. And finally, the tax rate that we estimate to 24% for the full year 2026. So with that, I'm leaving for Martin to summarize 2025. Martin Lundstedt: Thank you, Mats, for that. So let's go to that. We are closing also the full year 2025. Just a few comments on that. We can summarize the year with close to SEK 480 billion sales with vehicle sales declining 5% FX adjusted on -- or vehicles and machine sales declining 5% FX adjusted on 8% less truck and 8% less CE volumes with -- and on top of that, which I think is important with also several production adjustments throughout the year back and forward and across regions. Another important piece of resilience is services that did grow 2% FX adjusted. And as I said, our own activities, but also that customers are continuing to utilize the equipment. Gross income margin was at 25.3% despite volume decline, certain price pressure, even if commercial discipline was good and tariff headwind. And adjusted operating income amounted to SEK 51 billion with a margin of 10.7%. Cash flow at SEK 22 billion for the year and the return then on capital employed came in, as I said, on 25.3%. And the Board of Directors then proposes an ordinary dividend of SEK 8.5 and an extraordinary dividend of SEK 4.5 for approval at the Annual General Meeting in April later this year. So by that, we end the presentation, Johan, and I think you will lead us through the Q&A session. Johan Bartler: Right. Thank you, Martin. Very well. We will do, as always, please concentrate on your most important question. And we have a number of guys on the telephone line, but we'll start in the room, and we'll start with Bjorn from Danske Bank. Björn Enarson: I don't normally say this, but congratulations, solid execution in the quarter. It's about time to say. Yes. On North America, again, you're talking about a replacement-driven market and also a minor EPA-driven prebuy. But I mean, isn't this really about, I mean, increased visibility? I mean, tariff situation is better visibility, EPA, much more better visibility than previously, and we have record high truck age in North America. I mean gut feeling isn't it, this could be a really good year in North America. And with that backdrop, maybe a comment on what to see about the under-absorption of fixed cost in North America throughout the year. Martin Lundstedt: Yes. If we start with your comment and analysis regarding North America, I think it's absolutely correct. If we can continue to see that what has been put on the table now in terms of tariffs from different regions, flows, et cetera. And on top of that, the EPA '27 clarification uncertainty, I think that is very, very important for our customers. The cautious stance among customer has rightly so been what will happen, how does it look like, et cetera. And we see that also a little bit in the volatility in the order intake because, of course, some of the bigger fleets, depending on where they are sourcing, et cetera and said, okay, we place orders, but we will also have a discussion later on, so we give -- so I fully agree. I think this is very, very important if that will continue with a certain level of stability on top of it with average fleet age, not at least that we haven't had an on-road, almost freight recession for a couple of years now. There is fundamentals underlying that is supporting that. Then it's more the time phasing to your point. And as we said, if we look at the order intake during '25, we had more of a hammock situation in quarter 2, quarter 3 that was reflected in quarter 4. We said we will be brutally disciplined on our balance in inventory because we know also in North America, if you don't have that, there is an endless discussion about the inventory. I think we managed well. So we had an under-absorption already in quarter 4. And as we guided for, quarter 1 is still there because that is more reflected later part of quarter 3, beginning of quarter 4. But then we see already now a more positive situation for later part of -- really late part of quarter 1 and beginning into quarter 2. So there we start to see that it's more coming the effects that you're alluding to, Bjorn. And if anything about the under-absorption, I can -- I think it's okay, Mats, give you a guidance that if anything, a little bit higher as we expect right now under-absorption in quarter 1, even if -- I think we managed it well anyhow in North America for quarter 4. But if anything, to be a little bit more granular. But again, right thing to do, muddle through now, keep the eyes on the ball, do what is right because the market will come back in North America. And then you should be on the right level when it comes to capacity and inventory. Mats Backman: No, I think -- and it's like you're saying, when it comes to under-absorption, the effect -- we had an effect in the fourth quarter, and that was visible on the slide I had on the operating income. And given what Martin talked about with the kind of stop weeks in the first quarter. And then, I mean still being dependent on the order intake earlier in the fourth quarter, and then we see a gradual pickup from the other, but still under-absorption in the first quarter, yes. Johan Bartler: We'll take one more question in the room from Agnieszka from Nordea. Agnieszka Vilela: I have a question to Mats. Could you please update us on your CapEx plans for 2026 and also going forward? And maybe if you could provide also the status update for your Mexican factory? And do you still plan to have an in-house battery production or how you feel about these plans? Mats Backman: I can start with kind of the capital expenditures. And if you take a couple of years view on the CapEx, we are on a higher level, and you saw that for 2025 and especially driven then by the investments we are doing in Mexico. And in terms of timing, we will still have some of the investments in Mexico also in 2026, meaning that we will still be on an elevated level when it comes to CapEx, but I would say slightly lower comparing to what we have seen in 2025, and it's starting to normalize then, but still somewhat higher than driven by the bigger projects that is ongoing there. Martin Lundstedt: But I think also, I mean on that note, we have also been leaning into a number of bets now when it comes to the retail business, which I think is super good and interesting. Volvo Trucks did it in Australia. We have done a number of smaller things and then now Swecon, for example, of course, that is also -- but what I like about that is also really continue to drive strong resilience for us, service business. But also competitiveness because at the end of the day, our business to have the total offer close to your hands in a more and more world of hypercompetition, I think, will be crucial and critical. And then battery production, I think both when it comes to technology, time phasing and maybe what are the right levels of scale, a lot of learnings have been done. So if I may a little bit take -- maybe you don't start to build a 72 whole golf course directly, maybe start with 9, even a pay and play, et cetera, et cetera, and then you move along. And a little bit same here with technology development, what is the reasonable scale, et cetera. So 2 things. We will need that for different reasons. I mean it will be -- I mean the battery [ act ] and other things and electrification will come and will be there as a very important part for sure, for many different reasons, not at least for competitiveness, by the way. But it will be a time phasing, both when it comes to when will we start and how will we ramp it up because how you are thinking about cell and module and pack manufacturing today is rather different than only, let's say, 5, 7 years ago, I should argue. So we have learned a lot being close to our partners here. Johan Bartler: Good. I think with that, we move on to the telephone line, and we have Klas Bergelind from Citibank. Can you hear us, Klas? No one on the line there. Then we continue in the room. Hampus from Handelsbanken. Hampus Engellau: Two questions for me. When do you think you will present the EPA 2027 truck given that that's a big decision-making on fleets? And is it the reason for you guys to maybe present it earlier this year with price increases to see how tough we look for the fleets? Second question is related to tariffs. If you could maybe model a bit for the full year given the discount system we're seeing in 232? Mats Backman: I can maybe start with the tariffs then. I mean like we said, about SEK 800 million in the net effect in the fourth quarter. And we are -- what we foresee is about SEK 1 billion in net effect in the first quarter. And then we have the different business areas are kind of going in different directions now then because for -- if you're looking at Buses, for instance, then you have a tariff kicking in with Section 232 then with the business we have going from Canada into U.S. So there, we have an increase then that will kind of gradually -- it will gradually increase. And the same goes to some extent for Construction Equipment as well then with -- I mean the Section 232 is kind of helping the Trucks, but it's not helping the Construction Equipment. When it comes to Trucks, I mean, we are still building up, but what we foresee is kind of a decrease then going in maybe to the second quarter sequentially. But to make any guesses beyond the first quarter in this environment, I find pretty tough then. But with what we know right now, it's the SEK 1 billion in net effect in the first quarter. Martin Lundstedt: But I mean how the play is really there. I mean of course, now -- and coming back to Bjorn's question also about stabilization, I mean, if that is continuing to be stable, as quarters go along, I mean it's an absolute situation with tariffs and it's a relative situation with tariffs, obviously. And eventually, it needs to be compensated, obviously. And there, as we see it on the Trucks side, it is an opportunity basically. Then you can say also that we had already before this in pipeline plans for CE, both when it comes to wheel loaders and excavators for production in the United States. So that is ongoing so we saw basically. And then when it comes to the presentation of -- yes, we will do that, obviously, because it's coming in 1st of January. And it will be -- yes, we will present it during the year here. So we will have a good visibility. I should argue that it's not -- I mean, given now the clarity of this and not at least when it comes to the life length or the life cycle demands, and you can say not relaxation, but clarity on that. I should argue that it's a more reasonable step for the customers also. So that's the reason why we don't judge, so to speak, the prebuys to be significant in relation to previous events when you have had a much bigger step basically. Johan Bartler: Good. Now it seems that we -- still no connection with Citi, all right, then we continue with the DNB Carnegie, Mattias? Mattias Holmberg: I'm interested to hear more about the U.S., which we've already talked a lot about. But given your sort of relative advantage versus some peers in the U.S. market, I would have expected to -- and also adding that you have a very strong lineup now with models, both for Mack and Volvo. I would have expected to see a stronger market share on the order intake in Q4, in particular in light of the big order number we saw for December. So perhaps could you elaborate on, is there anything in particular going on in that quarter competitive perspective that sort of explains the lower relative market share here? Martin Lundstedt: Yes. I think -- I mean if you look at the order intake, I fully agree. I mean December, in particular, was very strong for the industry. I think it was north of 40,000, 42,000 or something like that. And I mean I think it's exactly related without knowing, but it is also a way of securing deals, et cetera, because as we go along, the market will be what the market will be, where are you producing, what do you need to do when it comes to your price realization, et cetera. So -- and so I think it's a little bit distorted by almost like preordering, to be frank. We feel rather good with what we have in order intake in quarter 4 because I think we had 11,500, give and take now, Mattias. And if you think about it, that is the incoming then for later part of quarter 1 and quarter 2. And that is basically supporting a level of like 200,000. If we are talking about stable or somewhat uptick in market share, that is supporting a level of 260,000 to 265,000. And then we are also saying that we are thinking about a gradual recovery. So if we are not completely out of bounds when it comes to how the market will come or develop during the year, I think the order intake that we have had is in balance with what we see. And again, it has been super important for us to have demand, supply inventories in control because if you are starting to get too much of disconnection there, it's also dangerous. But I agree to what you say. I think it's a little bit of, yes, possible preordering. Johan Bartler: Good. We continue in the room, and we have Karl from ABG. Karl Bokvist: On Europe, which seems to be improving a bit. Is it -- you talked about it a little bit during the presentation, but is it due to any kind of asymmetrical country mix or because you actually see the European truck market genuinely improving here? Martin Lundstedt: Very good question. No, I think it's rather broad-based, to be frank. And so I mean we have, of course, a lot of contracts with our European organization that's rather broad-based. It is, so to speak -- and we did see it already. I mean we have alluded to it a little bit already in quarter 3 reporting. We did see it, volumes came in higher in deliveries and in orders for quarter 4. I should argue that it continues now in the beginning of the year. We don't see -- I got that question from -- I get that question from time to time, I mean how much is defense and energy and infrastructure and playing in. And I mean the investment programs, not too much yet, which I think is also another support for Europe for the years to come here. But this is more based on, to your point, Karl, I mean the underlying market as we know it, that a little bit the same dynamic that we are somewhere expecting also for North America, but a little bit earlier here. And I mean we are guiding for 305,000. And I mean it's a rather good market, I mean to be frank, so... Johan Bartler: Yes. Right. Good. There seems to be some disconnection with the telephone lines. So we are free to continue in the room if anyone want to continue. Karl? Martin Lundstedt: Otherwise, they can text it to you. Johan Bartler: Yes, they can. Martin Lundstedt: They can do that. Can send an SMS to you. Sorry, Karl. Karl Bokvist: Yes. No worries. Meanwhile, I'll switch to Buses. I'm not sure about the competitive landscape in the textile city of Boras. But when we think about the electrical transition on Buses, which seems to have gotten going a bit faster than Trucks, how do you think about the competitiveness there? How you position yourself in terms of performance, price points compared to, let's say, non-European competitors, for example? Martin Lundstedt: No. I mean we see that in quite many of the deals around the globe, not only in Europe, not even only in Boras, by the way, but around the globe that in many deals, we are meeting more or less 100% Asian competition, Chinese primarily competition in the tenders and the bigger deals. And as Volvo participating, there are, of course, I mean differences here. But not at least when it comes to fully electric offerings, we have been early out. I think what is promising to see, obviously, we are working, of course, a lot with our competitiveness when it comes to, I mean cost and the right type of execution and everything like that. But even more important is that I feel that -- and that is encouraging for other electrification patterns that we see is that, I mean the city side of buses have been doing this for quite some time now and are more and more mature to really take the full equation into account. The famous TCO, the famous life cycle equation, both when it comes to revenues and cost and uptime, et cetera. And I think that is playing in our direction, not saying that the others are not doing a good job. We have the biggest respect for that. But I have to say that if I look back on '25 on Buses, and maybe when I stood here 1 year ago, I should say that I'm more optimistic today than I was 1 year ago. So I think we have found our place. We know how to -- where we can, so to speak, be successful and where we cannot be. In some of the deals where it's a pure CapEx upfront play, we are not normally successful in that because we have another business model when it comes to uptime, fuel efficiency, safety, not at least and cybersecurity. Johan Bartler: There is a question from [ Jefferies ], texting in here. So the question is on -- first, on the group functions and other, what are moving the lower cost base there? Mats Backman: I would say generally 2 things, I mean given the big picture and the improvements we have seen. So first of all, as you have seen overall on the operating expenses, we have lower costs, and that is going for the group functions, especially. And secondly, as you also probably know, we have some businesses, it's group functions and other. And we have a bus business called Nova Buses that you probably recall, and that has been a turnaround if you're looking at this year where they have done really, really good, meaning that we have been going from loss-making into profit throughout the year. That is also contributing to the group functions and other. So those are the 2 kind of main items looking at the delta on that one. Johan Bartler: Right. And also from [ Jefferies ], they wonder whether the Mexican plant will have any drag on EBIT margin in 2026, given that we are sort of ramping during the year. Martin Lundstedt: No, I mean we have material. Mats Backman: So it's kind of a slow, gradual ramping, so not material. Martin Lundstedt: And we think that will come in handy, by the way, also talking about the recovery because we are anticipating then a gradual ramp-up, rather small volumes to trim in Mexico during the later or you can say, second half. And so... Johan Bartler: Then we will move on with -- from our -- let's see here, one question -- we need to be quicker. Bernstein -- wonders. And we have Harry Martin from Bernstein. He wonders, given the EPA '27, et cetera, and the guidance for North America, how do you think about pricing? Will price on trucks still be tight in 2026? Or will that sort of be possible to push price to some extent in '26? Martin Lundstedt: I mean -- and you can add to this. I think first and foremost, and that you can see also, I mean in top line in relation to volume, et cetera, I think the commercial discipline in the group, but also part in the market as we can judge it has been better than, if I may say, so normal in our industry, which I think is a good thing. I mean better flexibility, generally speaking, in the industrial systems, higher share of service, et cetera. So pricing better. Then there's no secret, obviously, that, I mean supply/demand and normally, when we see a recovery, when it really takes off and you're gaining momentum, there can be a squeeze. And then, of course, in that part of the cycle, there are always opportunities. When will that happen during this recovery, given that we say that we are rather -- we are really anticipating a recovery, but still a gradual one during '26. So let's see. But the dynamic will be there when that starts to happen, obviously. I don't know, will you say something more? Mats Backman: No, well said. Martin Lundstedt: Thank you, Mats. Johan Bartler: Next question is coming from London from Daniela at Goldman Sachs. He wonders some of your peers are talking about autonomous commercial start in 2027. And where are you guys on that? Martin Lundstedt: Yes. I mean as I think it's familiar, we are working -- I mean when it comes to autonomous commercial start, I think in that case, Daniela is meaning, I mean, the hub-to-hub public sort of on-road segment in U.S., right? We are already in commercial operations for confined areas, et cetera. And as we speak now, we are running fully autonomous lanes in U.S. together with our key partners there. We have built up also terminals in order to host this and make it possible. Still, it is with safety drivers, but now we are getting really close to this, maturing the whole system. So this is without being too exact, but this is not too far away. And even to say to Daniela, that I think you are in the right neighborhood, which I think is a significant opportunity for the industry on that happening. Because if you think about it with automation and robotization, as an old production engineer or it was a long time ago, not old, but I remember that during the '80s, in particular, in the '90s, it was an over automization of the factories, and an over-believe in things. And then you really found, so to speak, the right type of balance on where should you have robots, where should you have CNC machines, where should you have different type of place and pick and smart, so to speak, control towers, et cetera. And where should you have a human interaction. I think for the hub-to-hub concept, it's a very good way of looking at the same journey that if you can really do it for hub to hub with terminals along the road, you will take out a rather big part of the equation that are bottlenecking, so to speak, logistics today. And that's the reason why I'm very -- I mean very optimistic about that development. Johan Bartler: There was also a follow-up from Daniela regarding the fleet mix. We spoke about having more fleets into the mix in 2025. Do we see that, that continues also into 2026? Martin Lundstedt: Do you want to say something? Mats Backman: No. You can start. Martin Lundstedt: No. I mean if you look at where we are in the cycle, I should always argue that when you're getting -- start with Europe, when you're getting a little bit more of a broad-based recovery, then all actors are coming into the market. Because obviously, if you are -- I should say, in that respect, I mean a smaller midsized fleet, you are even more cautious about, okay, how should I think about my replacement, et cetera. So I should argue if we continue to see that more broad-based recovery that we talked about in [indiscernible], the mix will be more evenly distributed and not leaning because it's more in the down cycle where we normally have an overrepresentation of fleets. Mats Backman: And maybe to add, and I know that Daniela is normally on top of the kind of the revenues per truck as well and looking at the kind of the development over time. And I think if you're looking at specifically at the fourth quarter, it's also a question of mix if you are looking at the revenue per truck now with a higher share of LCVs, light commercial vehicles as well as a geographical mix with less North America. So I think that is also important to say. Johan Bartler: Then Klas Bergelind from Citi, who was first on the line here, but he has a question here. He asks, in Q1 2026, will you get any benefits from the Section 232 MSRP credit? Mats Backman: No. We see it probably gradually into the second quarter rather than the first quarter. Johan Bartler: Right. And also in Europe, you talked about better demand in U.K., Sweden and Germany in Construction Equipment. But how about improving demand for Trucks, at a country level, what countries are you seeing any improvements? Martin Lundstedt: No, Mats -- I mean -- and partly, we got that question here. I mean rather broad-based and also certain signs that more of Central Europe is moving that has been a little bit slow, not at least Germany, et cetera. So rather broad-based, which I think is good. And it's also related to where we are in the replacement cycle, et cetera. Johan Bartler: Right. I think we are ready to close unless there are any further -- Mattias? Mattias Holmberg: Maybe a bit premature, but you alluded to already have thought about adding capacity for construction equipment in the U.S. before the tariffs. Could you give us an indication of if this could sort of fit within the current CapEx program for construction equipment or sort of the potential timing? Are we talking a year, 5 years and potential magnitude of investment? Martin Lundstedt: Great question. I mean you can say that it's in the current because, I mean one of the advantages we have is that we have rather big from [ SA ] or real estate facilities in Shippensburg that came along with Ingersoll Rand acquisition back in the days. And then we have reshuffled and the industrial footprint, but we see clearly that we need that for wheel loaders and excavators to start with. And thereby, we have a good starting point because they are made for that type of equipment, and we can utilize, so to speak, the real estate. And we were there actually during the fall, looking at that. So I think it's well incorporated, and we will start at the -- during the later part of this year for wheel loaders and then gradually move in, so to speak. So I think that is an advantage that we have, that we have, so to speak, rather good facilities, both for powertrain and on the Trucks side and also then on the Construction Equipment side that, if anything, has been underutilized from a square feet in that case standpoint. Johan Bartler: I'll take one final one from UBS. So we made sure that we covered all the lines here. We guided for SEK 1 billion headwind from tariffs at the time of Q3 for Q4. We came at SEK 800 million. What was the difference versus what we saw in Q3? Mats Backman: We said about SEK 1 billion. So I don't think it's not a huge difference on that one. But I mean to a certain extent, timing. I mean it's difficult to see if you see the accounting effects when you are building up inventories and having a positive impact from that. So I would say more kind of a timing. Johan Bartler: Timing through the balance. Martin Lundstedt: Yes. And you can always say exactly, I mean exactly where do you have all the inventories when you start and now we are getting more and more a steady-state situation. On the other hand, we will work on the other side of the net effect also with commercial conditions as well. Mats Backman: Absolutely. Right. Johan Bartler: We covered all the banks. We're on time. So thank you for coming. We'll see you in a quarter. Martin Lundstedt: Thanks a lot, everyone. Mats Backman: Thank you.
Operator: Thank you for standing by, and welcome to the Coronado Global Resources Fourth Quarter Investor Call. [Operator Instructions] I'd now like to hand the conference over to Chantelle Essa, Vice President of Investor Relations. Please go ahead. Chantelle Essa: Thank you, Darcy, and all for joining Coronado's December and final quarter call for 2025. Today, we released our quarterly report to the ASX and filed with the SEC. Today, I'm joined by our Managing Director and Chief Executive Officer, Douglas Thompson; and Chief Financial Officer, Barrie Van Der Merwe. Within our report, you will see our notice regarding forward-looking statements and reconciliations of certain non-U.S. GAAP financial measures. I also remind everyone that Coronado quotes all numbers in U.S. dollars and metric tonnes unless otherwise stated. I'll now hand over the call to Douglas. Douglas Thompson: Thank you, Chantelle, and thank you, everybody, for making the time to join us today. Before we begin, I want to acknowledge two tragic incidents that occurred since mid-December. Our thoughts and prayers are with the families, friends and teammates affected by these tragic events. These events are unacceptable, and we continue to work with the relevant authorities and our contracting partners to investigate. The safety and the health of our people are and will remain our highest priority. The journey this company has been on over the past 3 years has been significant. In 2022, we committed to a disciplined multiyear improvement plan. We've always said that if we executed consistently across our cost base, operational stability, fleet performance, workforce capability and capital discipline, it would pay off. And today, we can say it has paid off. The structural change to Coronado performance is now unmistakable. We have sustainably lowered our cost base, increased production across both regions and stabilized operating assets and expanded our capacity in line with our long-term strategy. Importantly, the business is now more predictable, more resilient and better positioned to leverage improving market conditions, and an endpoint in the past 7 years. Turning to the highlights for financial 2025 and December quarter. Team delivered solid production of 16 million tonnes, which is a 4% increase year-on-year, finishing at the lower end of guidance. In the group, our average mining cost per tonne sold averaged $97 a tonne, a 10% reduction year-on-year. The capital spend was $245 million for the year at the bottom end of guidance and the major investment phase for the business is now complete. We closed the year with exit run rates that outperformed guidance, which demonstrates the structural shift in the production and cost. We had the highest quarterly sales since 2021, quarter 3, the sales volumes increased by 11% quarter-on-quarter and operating cost was reduced by approximately $300 million across the year. Buchanan expansion and Mammoth Underground reached expected run rates in the second half of the year. Curragh's second half saleable production averaged 36% higher than the first half of the year and remained consistently above 1 million tonnes per month for the half year. Focus now shifts to the CHPP upgrades to maximize margin from the now stable low-cost mining base. Terra liquidity support from Stanwell reflects our critical role in Queensland's energy security. $150 million was provided mid-2025 and then the subsequent transaction brought for the 2027 reset we've all been waiting for with rebate forgiveness, and price support that exceeded the original reset expectations for 2027 that we're now enjoying. In 2026 Stanwell's mechanisms are expected to provide between $200 million and $250 million of cash flow uplift depending on prices and nominated tonnages. We also secured a 5-year $265 million covenant-light ABL facility at 9%, which was fully drawn in December and enabled full payment of the Oaktree facility and strengthened our near-term liquidity. So stepping back on this year, the message is simple. Our operating base is now more predictable, our cost structures are materially lower, and our expansion investments are delivering, and we have meaningful leverage to improved prices, a clear path to stronger cash generation, balance sheet deleveraging, and future shareholder returns. Focusing on our group's performance. The quarter delivered continued strong operating results. We achieved the highest quarterly and half year sales volume since 2021. We also set new quarterly and half year records for ROM and saleable production. Strongest half year since 2019 for ROM and since 2021 for saleable production and unit costs continue to trend down. ROM production cost per tonne averaged $56 a tonne, lower since 2021 and 15% improvement over the past 2 years. This reflects the disciplined execution of our improvement plan, including higher grade line utilization and tighter cost control. Our expanded infrastructure at Buchanan and Mammoth is now delivering higher and more stable run rates, translating into meaningful cost, productivity gains and contributed approximately 1 million tonnes of incremental saleable tonnes across the group for the year. The system capacity now 16% pre-investment levels -- above pre-investment levels. We entered 2026 in a materially stronger position to utilize this additional capacity as market conditions allow. For full year, we closed at 16 million tonnes of saleable production, a 4% increase year-on-year. And looking ahead, we expect to lift production rates in 2026, supported by our expansion projects. In Australia, the Curragh complex delivered a strong December quarter across all key metrics. With record ROM production and sales volume surpassing levels last achieved in 2020, our dragline system operated at their highest levels since acquisition of the mine in 2018, consistently accounting for approximately 50% of total waste movement up from historic levels of 30%. This is a significant lower cost method to move prime waste versus truck excavation. These gains reflect the one Curragh plan, which continues to improve pit configuration, decongest operating areas, enhance strike length and enable sustained gains for fleet rationalization, procurement and cost management. At Mammoth, the mine ran all 3 production panels and achieved run rates equivalent to 2 million tonnes per year during quarter 4. As a result, the mining cost per tonne sold in Q4 remained below the low end of guidance. To convert the now stable low-cost mining into maximized margin, we will execute targeted CHPP upgrades early this year. While these works may moderate production in the March quarter, they are designed to unlock additional processing capacity and product yield strengthening cash generation. As noted in our report cyclone Koji impacted the Bowen Basin earlier this month. We therefore, expect variability in quarter 1's performance. What is pleasing is our recovery. Improved resilience of Curragh complex enabled a much better than historic response and recovery and we continue to ship committed products to our clients. In the U.S., Buchanan delivered its strongest month since August 2022 during December. We recorded record daily ROM production and record skip counts as the expansion project benefits came to light. In December alone, Buchanan generated approximately 400,000 tonnes of saleable production, $20 million of earnings and achieved a $67 a tonne unit rate for the month. A great achievement and demonstrates our expectations when we look forward. Expansion is delivering as intended. The additional raw and product stockpiles and the second set of skips have increased capacity and created redundancy, enabling a sustained 1 million-tonne annualized run rate in December. These facilities also decouple maintenance schedules between the mine and the processing plant improving overall efficiencies. Technical conditions in both the north and the southern Longwalls during October and then in November, constrained production, resulting in a modest quarter-on-quarter reduction. However, Buchanan structural improvements to Longwalls, higher skip capacity and an expanded stockpiles, will reduce costs to sustain higher production than at the time of acquisition and support a long life of more than 20 years. At Logan, our 4 underground mines performed to plan and met forecast production for the quarter. The minor vessel delay into January increased sites and port inventories but did not impact the mines nor does it impact plant performance. And these inventories will support sales volumes during two Longwall moves scheduled for the March quarter, one that we're in the process of executing and almost complete. With that, I will now hand over to Barrie to speak to the financial position. Barend Van Der Merwe: Thank you, Douglas, and good morning, everyone. As Douglas said earlier, the production and cost results we announced this morning, is the result of hard work and dedication of many people over the course of the last 3 years or so. With the market starting to show signs of improvement, Coronado is well positioned to take advantage of this with our ramped up projects, lower capital expenditure, good cost control, more robust debt structure and improved liquidity position and support from Stanwell if liquidity weakens. Starting with costs. In FY '25, we achieved approximately USD 300 million in operating cost reductions versus the prior year. Both Curragh and Buchanan averaged around $86 a tonne over the last 3 quarters. This marks a structural shift in the cost position of both those assets now firmly within the midpoint of the industry cost curve. With a full year of production from the expansion projects, improving prices and the earlier-than-planned reset of the Stanwell agreement, profitability and cash flow will benefit materially in FY '26. For the year, the group averaged mining cost of $97.6 a tonne, which is a material improvement from $107 a tonne in FY '24 and $108 a tonne in FY '23. This cost performance is below the midpoint of guidance for FY '25. And this was at $0.645 FX on average for the year. The December quarter has got our strongest for the year with continuing consistent production of 1 million tonnes per month achieved since June. This is off the back of consistent on production and stable mining operations. Having established this rhythm in the mining process and the production bottlenecks shifting to the plants, we are starting FY '26 with a major plant shutdown for 2 weeks in February to work on plant reliability and maximizing the margin from EBITDA. For the full year of production for Mammoth in FY '26, the learnings from the ramp-up embedded in the operation, stable mining performance and the benefits of the February plant shut as well as a PLV index that has risen approximately 30% over the last 3 months. Curragh is set for a profitable and cash positive FY '26 and price and cash flow downside is protected by the recent Stanwell transaction. Douglas said earlier, the challenges Buchanan experienced with geological conditions in October and November, eased up during December. The mine generated $20 million in EBITDA in 1 month with a PLV index at $212 a tonne, well below current trading levels. That 1-month achievement was almost 1/3 of the full year's earnings in 1 month. This shows the value of the recent innovative capital-light expansion project that repurposed an unused ventilation shaft to install added skip capacity. For the full year, the mine was also a cash breakeven after funding its own expansion CapEx at a PLV index of $188 a tonne. This shows the quality of Buchanan and with the benefit of the full year of the expanded capacity and higher prices, Buchanan is set for strong cash generation in FY '26. CapEx spend, as planned, was $38 million in the December quarter and $245 million for the year. This is the bottom of guidance. It reflects the completion of our major investment phase. As these assets now move from ramp-up to steady state, we expect cash generation in FY '26, provided market conditions remained positive as was the case over the last month. Approximately $150 million of short-term liquidity management and working capital initiatives highlighted at the end of quarter 3 were fully settled by year-end. We closed December with $173 million of cash and did not do any liquidity management or working capital management levers at the end of FY '25. $173 million cash balance is, therefore, fully available to the business, and there's not been any -- not been a large outflow of any cash in Jan to unwind any such short-term initiatives. In December, we fully drew the new $265 million, 9% ABL facility and repaid the Oaktree credit facility in full. The ABL has no earnings governance for the first 2 years and does not contain any triggers that can result in review events, defaults or mandatory prepayments. It represents long-term debt committed in the business for 5 years at competitive rates which is provided by Stanwell with whom we have material common interests regarding Queensland's energy security and the regional Blackwater economy. Our high-yield notes only mature in 2029, and we, therefore, have no near-term debt maturities, which allows us to continue to focus on running our operations. The recent reset of the Stanwell arrangement brings forward the originally expected FY '27 reset. It was the remaining ACSA rebate for FY '26 and the early part of FY '27, that establishes a prepayment mechanism when liquidity is below $250 million. This puts Coronado in a better liquidity and cash flow position than that originally expected for FY '27. Depending on prices and Stanwell's nominated tonnages, this will add approximately $200 million to $250 million of cash flow in FY '26. This is in addition to the approximate $400 million ABL and prepayments provided in FY '25. The extent of this support clearly recognizes Coronado's common interest at Stanwell and the importance of the company's contribution to Queensland's energy security and broader economy. It provides a material capital structure and liquidity underpin that protects cash flow and liquidity levels drop below $250 million. In FY '26, we'll continue our disciplined cost control. We'll have lower capital expenditure, too. We'll benefit from a full year of volumes from the expansions that are in steady state. Cash flow will benefit from the latest Stanwell agreement. The improved market conditions and continuing work on minority disposals will focus on improving the capital structure by reducing debt, while at the same time, providing shareholder returns. We'll also ensure that we have liquidity contingency plans in place, ranging from liberating cash from cash back guarantees when our credit rating improves, factoring and unsecured short and longer-term prepayments for coal, if liquidity -- if temporary liquidity buffers are required. We'll be releasing our financial results for 2025 and 2026 guidance to the market on 24 February 2026. With that, I'll hand you back to Douglas for the market outlook and closing remarks. Thanks. Douglas Thompson: Thanks, Barrie. So in quarter 4, the PLV hard coking coal Australian index averaged $200 a tonne, with prices rallying sharply from October through to mid-December and reaching $219 a tonne late in the quarter. That was the highest since July 2024. And as we enter 2026, prices continue to strengthen. Supply side factors drove much of the price increases. Wet weather in Queensland in December, and that continued into planning and ongoing mine inspections and enforcement activities in China during October, November and broader trade flow constraints including the pace of Mongolia border clearances. For the March quarter, we expect prices to remain supported by firm India demand, seasonal Australian weather risk and continued supply rationalization. Coronado's footprint across Australia and the U.S. positions us well as global trade flows continue to shift. In U.S. changes in tariff structures and steel sector policies are reshaping traditional export pathways, putting greater pressure on the high-cost producers. In this environment, our low-cost Buchanan complex remains competitively placed with flexibility to serve non-European markets, while our Australian operations continue to benefit from strong demand. At the same time, the high vol segment in the U.S. remains structurally challenged, narrowing market access for operations like Logan and underscoring the importance of maintaining portfolio optionality as trade patterns evolve. Over the medium term, our outlook remains positive as steel production outside of China recovers and trade policies continue to favor markets across several regions. In this environment, Coronado is well placed to benefit from price changes to our higher production from our expansion projects and structurally lower cost base and increased operating predictability. Together with the Stanwell reset and restored liquidity, these factors position us to convert price momentum into stronger earnings and cash generation. With that, I'll hand over to Darcy and we welcome your questions. Operator: [Operator Instructions] Your first question today comes from Rob Stein from Macquarie. Robert Stein: Okay. Just obviously, the fatalities in the last month or so, no one wants to see and I'm guessing there are lots of activities going on behind the scenes to understand the root cause towards those fatalities across the U.S. and Australian operations. Can you share with us especially in the case of Mammoth, what initial learnings are? How confident are you that the risks can be managed and operations can return back to normal? Douglas Thompson: Rob, thank you. They are tragic incidents that occurred. And unfortunately, both of these are subject to investigation. So one needs to be careful what is communicated but also stick closely to the facts when talking about them. Let me say this, the Logan incident, the operations have returned to normal works, and there are no constraints on the operations post the incident and that investigation is ongoing outside of the ops. With the incident that's occurred here in Australia, investigations are ongoing. There is a milestone date 20 days after the incident, which we are still within to submit to the regulator, which is called the Section 201 Investigation Report and that the operators of Mammoth Mine will be submitting to the regulator. And then post that, we'll be able to talk more about that incident. I can assure you that all efforts have been made by us as demonstrated in the past that these tragic events get the benefit of the full focus of the business and all the learnings that we can get from it are shared with the industry as quickly as possible to prevent future incidents where learnings can be drawn. Robert Stein: And sorry, as a follow-up, is there any -- I think in your report, you said you did quite a few uplifts at Curragh related to Mammoth and continued cost improvement expected in '26. Are we expecting based on that commentary that following that 20-day deadline that milestone date that operations will resume and that they'll ramp back up to close to 100% of the trajectory they were on prior to the incident? Douglas Thompson: Rob, if you don't mind, I want to break your question into 2 pieces. One is me setting the date of when the regulator will lift the directive that we have because we're allowed to -- into the mine, we're allowed to do all other works except coal winning works at the moment that directive is public, and you can read it. So work is ongoing in the mine other than coal winning at the moment with the team. With regard to regulator lifting the directive, that's between the coal mine operator, the contracting company that we've appointed to do the work in them, and we'll clearly very interested and involved in the investigation and ensuring that we return to work safely as soon as possible. With regards Mammoth's capacity to ramp up after the event and keep operations going, I foresee with my experience, no reason why once directives have lifted that operations will return to our planned production rates from that mine. Operator: Your next question comes from Glyn Lawcock from Barrenjoey. Glyn Lawcock: Sorry, I just don't quite understand the answer to question before on Mammoth. So is there a set date? Or is it just the negotiation between the contractor and the safety regulator. So this could go on longer? Douglas Thompson: Glyn, in short, yes, there are milestones that under the law, you need to comply with as a coal mine operator. And as I said, the contractor in this case is the coal mine operator. So you've got a milestone date to submit an investigation on the act, which is called the Section 201 report. And we're still within the 20 days that, that is due for submission. So that is the milestone that I'm referring to. But then it's between the regulator who has issued the directive to determine the lifting thereof. And that's obviously working through that we can demonstrate our controls are appropriate to ensure safe works. Glyn Lawcock: Okay. That's clear. So yes, it's between the regulator and the contractor and how long is a piece of string. Maybe could you just talk a little bit to the status of discussions. I might have missed it. With the Queensland government over where do you need to cash back the rehabilitation fund for Curragh? What's the status there? Douglas Thompson: Well, Glyn, I'll say a couple of things. One is how the world has changed. So obviously, the state regulator has got an obligation to do their determinations, which they did last year. A lot of what their assessment is based on, if you go look at the framework that they're obliged to work with them was based on rating agency determinations. And then the scheme manager has discerned from there. We've met with them. We've shown them our modeling. We've shown them subsequent to the discernment. So this is really important to pull out. They made the determination on what was information at a certain time. Post that, we could only make public to them the deal that we struck with Stanwell. We met with them subsequent to that again. And even this month, we provided them further information to support importance of Curragh to Stanwell and Queensland's energy sector and our liquidity improved strategies that have all been delivered that we committed to them have now all been delivered in our improved position. So they're now working through that information that we've given them, and we're looking forward to their reported outcome. Glyn Lawcock: Again, is there a time line for resolution or at least a ruling? Douglas Thompson: Yes, they have indicated to us that within their framework, and always there's out within that, it will be in the month of February. Glyn Lawcock: February this year. Okay. And if I could squeeze in a last one. I was interested in your comments around the high vol met coal market and the issues that Logan faces now with uncertain pathways, both domestically and export. I mean where does that leave you with Logan then now? Is it formally up for sale? Or what's your thought process? Because you obviously talk about obviously, other ways to unwind the debt structure of the business. Douglas Thompson: Glyn, you track this, I read a lot of what you write about it. So you as well informed or if not better informed than anybody. The high-vol market is in oversupply in the United States at the moment. U.S. market is talking about a reduction in the steel -- domestic steel production this year and next. What's happening with tariffs and threats around tariffs is impacting the Canadian market. So there's a lot of fluidity in the negotiations that are ongoing in the U.S. at the moment. There's a few producers that have recently spent a lot of money bringing Longwall operations online that produce high vol A and B and are looking to place that into the market. But the work that the team has done over the last 3 years, as you can see in the results we're speaking about today and the capital investments behind us and particularly the Stanwell reset, we're now in a fortunate position to pivot to margin ensuring that we drive good margin out of the business, and that includes us looking at our portfolio of products that we produce. And looking at where do we employ our investors' capital into the future for the best sustained returns. Now Logan does have contracted tonnes that we committed to, and we'll continue working towards, and we will be reviewing all of that as part of our strategic plan. Operator: [Operator Instructions] Your next question comes from Daniel Roden from Jefferies. Daniel Roden: Probably just wanted to start with, I guess, the Cyclone Koji impacts there and I guess how you outlined that you have better weather initiatives sort of operations up, like are you currently through a lot of that? Are you still seeing impacts from the operations? And are you able to split or define what inventory level you have at both of the sites and if any of that inventory is quartile? Douglas Thompson: Thanks for the question. There was a little bit of noise on the line. So please forgive me if I get it precisely wrong and don't hesitate to correct me. I think your question related to Cyclone Koji and our response to it and what's changed that I can speak to the improved response. There's a whole host of things that have changed at Curragh over the last 3 years in executing this plan. Primarily, if you start back in the operations, our pre-strip situations, particularly in our northern mine, which is dragline dominated at the moment with two draglines in the north, two draglines in the south. We've got good coal uncovered in near coal that is available for mining operations that when you have a weather event like that, you have an increase of water entering the mine, it takes you a bit of time to pump the water out or leave the water somewhere else and then clean. We fortunately had coal that was higher, so we get back into production relatively quickly. The other resilience to wet weather going forward, and it's adjacent to the Mammoth is we have coal that's being mined from underground now that is stockpiled that we can move to the operations. Now clearly, Mammoth is operating now, but we did have stockpiles of coal that we've got access to and structurally changed to Curragh long term is this augmented coal flow. It's an added benefit of Mammoth. It's not only a lower cost supply of coal. It's a different mining method that derisks it. And then also our inventory positions that we have. If you look at our sales volumes at the back end of last year, a little bit in the U.S., as I mentioned, but particularly in the Australian area. Raining in Australia was a challenge for most people on the Blackwater line above rail providers had a whole host of issues that canceled trains. We had to pivot our strategy through back end of November, early December, around what we moved to port. And you'll see in the results that we focused on moving met coal port and honoring our shipments to our clients, and we worked with Stanwell on product being available at the mine and ensuring that we got it to the power station for them, but we ended up with very large reserves of inventory, ROM inventory and port inventory and site inventory, in particular of product buildup. So unfortunately, we didn't get all the sales we wanted. But some of that has played to our hand at the moment. And that's why I say we versus others that had to call force majeure, they haven't been -- we didn't have to do that because we could meet all our net commitments at the back end of last year and then we had these inventories either in ROM or product that we could keep shipping. The main thing is the mining method across Curragh is a lot more stable than what it has been in the past. It's taken us a few years to address things like pre-strip deficits, get pit configuration sorted out, getting pumping input and export results, which has set the mine up to be a lot more resilient and be able to respond to events like this better than in the past. So all of that, I think, has answered your question. I hope with -- I heard it correctly and tried to cover most spaces very quickly. Daniel Roden: Yes. No, it hasn't. Apologies for the line before. And maybe just a clarification there. So there is portside inventory, you'd expect to destock some of that, but that might not be all in Q1, and you could see some of that destocking in Q2, so some of that working capital might still be neutral in Q1. You might see that outlook further in towards the end of Q1 or Q2? Is that a correct way of classifying? Douglas Thompson: Yes. Look, our rail has been impacted with cyclone at the moment, above-rail providers and actually below-rail providers restricted the number of trains that flowed in the first half of -- or back half of January through this event and then probably a little bit of restrictions into Feb. But we've still been able to get the product for our clients. And then importantly, as Barrie made a point of as well, we've got a major shutdown on our prep plant at Curragh for 2 weeks where we're doing some upgrade works to make it more reliable and get better yields out of the system because we've moved the bottleneck there. In that period, we'll be able to move quite a bit of product to the power stations and then also move what we have at site or the remainder of what we have to port and ensure that we meet our obligations. So we don't see much tipping over into the second quarter, it will all be in our committed sales for the first quarter. Daniel Roden: Okay. And maybe just to follow up on, I guess, working capital as well. I can read obviously, that you mentioned working capital charges outstanding have been cleared in the December quarter. I was just wondering if there's any, I guess, -- are there any outstanding payments or obligations? Are you expecting any future working capital, I guess, changes in the near term, specifically first half '26? Barend Van Der Merwe: Daniel, thanks for that one. So as I said at Q3, we pulled that working capital lever quite hard due to the cash and liquidity position. That's all unwound. It's all settled. So the $173 million at the end of December, is real cash. It's available. There's nothing to be called up from that. I think if you then look forward into Q1, obviously, with cyclone impact, fatality impact, we'll be drawing down especially in Australia, we'll be drawing down on working capital, that would be a bit of an inflow of cash. But then as we have the shut, as Douglas explained, I think we'll build up working capital again and then I would think by end of March, it should all flush through. So as we sit here currently, I don't expect a big working capital impact in Q1 if we execute the plan as we've got it. Daniel Roden: Yes. Perfect. And sorry, last one for me, but the $200 million and $250 million liquidity that you've called out for '26, are you able to, I guess, separate that into what proportion is from the, I guess, waiver and what proportion is from the prepayments? And what conditions outside of the financial conditions? What are the conditions that you would need to say to draw down on that from your perspective and Stanwell's perspective? Barend Van Der Merwe: Yes. So I mean the rebate forgiveness does depend a bit on what the gold price is. So the revenue line drives that. But roughly, I'd say, you can say that the rebate forgiveness put that at $100 million. And then the rest is the prepayments. The prepayments obviously happens. It's an automatic trigger depending on our cash balance. If the cash balance is below $250 million, then we get half of the total benefit; if it's below 200, we get the full benefit. With the full year results, we'll give a bit more detail as to exactly how that gets calculated. But as we sit here today, with the cash balance of about $173 million, and we'd be entitled to that full benefit of the coal prepayments for every tonne that goes to Stanwell, we'd basically be getting paid USD 90 a tonne as opposed to the USD 30 a tonne, that's in the ACSA. And then when you cross over $200 million kind of that margin halves and so on and so forth. So that's kind of a rough idea, rebate under the coal prepayment. The rest automatic trigger that kind of -- that kicks in depending on our cash position. Operator: Your next question comes from Lachlan Shaw from UBS. Lachlan Shaw: Doug and team, I wanted to, I guess, congratulate you on where you've got Curragh in terms of the one Curragh plan. A long time coming. But I wanted to also just sort of ask in terms of how we think about going forward, is there more to come? Are you done? You've had 3 quarters of sort of stable, pleasing cost performance. What more can be done sort of on a go-forward basis, obviously, outside of additional volumes once Mammoth resumes? Douglas Thompson: So it talks to the strategy for the business. And look, you're right. We did in 2022 set about a disciplined plan that required a fair amount of engineering time and money to be spent to turn the ship. But the results are there. You can see Curragh has turned the corner and now it's set up to be a low-cost dragline operations augmented with the underground. There is upside to the plan. As you've been saying all along, there is a mammoth 2, which is probably 2 continuous miners that we can expand, and we've taken that to BFS phase and we'll pause that for the near term because we want to obviously deleverage and strengthen our position as we enjoy the pricing at the moment and enjoy our low cost base for a period of time. But there's upside position there. And then there is a twin seam with another underground mine. As these mines in the Bowen basin ages, stripping ratios will go up and having an underground capability that you can still extract a really valuable resource and leverage all the invested infrastructure longer term. That's going underground, sensibly a very attractive proposition. So we're looking at a few other options there, but not for now. Now for now, focus in '26 is improving margins. So what we'll be doing the biggest thing at Curragh is what we're doing in February is the prep plant upgrades. Now all the long lead items for that upgrade was bought in '25. So it will be the works that get executed over the next 2 weeks or so in February that will give us better reliability and then improve some yields on some of the products that we produce just replacing old technology with new technologies. So that will be the biggest and then we're going to be looking at our mine plans for pivoting where the Stanwell mechanism drove us in the past, particularly because of the rebate situation that we chase incremental tonnage to try and get on the right side of that calculation of margin-driven tonnes. And that will be our focus for the next while. So moving towards let's get the most that we can out of every tonne relevant to what the market is offering us in the near term. Lachlan Shaw: Great. That's really great color. And just my follow-up question. So I might have missed it, apologies. I was late on the call. But with Mammoth, I guess remediation, I understand there's a question there of just waiting for directive outcomes from the regulator. Do you anticipate any sort of ongoing kind of increases to OpEx that might flow there from, for example, additional roof stabilization measures or such measures you might need to take? Douglas Thompson: Well, I don't want to speculate too much because the investigation is ongoing. I must just call out, we're not waiting for the regulator and nor is the regulator just waiting for us to put in our report and then submit. We are working very constructively with the regulator. I must commend them, them and the unions for the maturity and the professionalism displayed during this incident. Do a couple of things. One, treat the respect of the person who lost their life, Jeff and family, but then also all the teammates who have worked very diligently to build a world-class operation in Mammoth that they're all very proud of and make sure that they learn from this and move on. So I thank all of them. And that collaborative approach is ongoing, where our accountability is all owned. Everybody is working towards a couple of goals. Let's learn from this and ensure that we share with the industry. And the other is investing from Mammoth and all its people and all agencies agree to this is getting back to work as quickly as possible and as productively as we can. Impact on additional support and changes, I don't want to venture there until we have a report out coming. But let me say this that I do not see that kind of change being material to the way in which we think about Logan's operations into the future and any of that, that's coming out. Operator: [Operator Instructions] Your next question comes from Chen Jiang from Bank of America. Chen Jiang: First question on your U.S. domestic coal sales, which is close to 1/3 of your U.S. coal sales. I remember Coronado used to provide the market with the fixed price, which negotiated with the customer for the next 12 months. Is that changed for 2026? Because I haven't found any U.S. domestic coal prices fixed provided in today's release. Douglas Thompson: Chen, no, not necessarily. We're just still in the middle of some of those negotiations, and we don't want to preempt or prejudice our clients as well with sharing information that we shouldn't right now. So when it's appropriate, we'll talk about what the domestic is for Buchanan and Logan into the future. Chen Jiang: Sure. So you are still in negotiation with your customer for whatever forward price should be for the U.S. coal for the next 12 months? Douglas Thompson: Yes. I think it -- I don't think I know I read some of your stuff as well. And you guys watch that market and understand the highwall market very closely. What happened around tariffs and U.S. steel ownership and that negotiations were delayed last year. And then over the Christmas break, we're delayed even further. And then with what's happened between the U.S. and Canada and some other trade threats and relief from change, a number of parties have stood on the sideline and just waited to see what exactly the lay of the land is going to be before they commit. So some of that is -- has and continues to impact some of those domestic negotiations. I will say, as I hinted at earlier, and it is public, some of the producers who have built long walls of this type of product and just made major investments into longwalls producing these products have gone early in secured domestic contracts. But obviously, they've got a capital base, they need to support. We're not in that situation with Logan. So we're making sure we pick the best opportunities and make the decisions drive our base outcomes to the business. Barend Van Der Merwe: Chen, just to -- sorry, one thing to just add to that is that, obviously, you've got our U.S. operations important to delineate between the Logan highwall and the Buchanan more premium product space. Chen Jiang: Yes. Yes, sure, sure. And then can I have a follow-up, please? Second question, on your potential minority asset disposal in the release. Are you still exploring that option. So because the met coal price spot PLV, hard coking coal $250 per tonne. So I'm wondering, under the scenario, if current spot stays for the rest of the year or even for the next year, is the minority asset disposal still under your plan? What's the thinking? If you can help me to understand why that is still part of your plan? Douglas Thompson: Yes. So the Board has still given me and the team a mandate to look at minority sales. Obviously, we had to do a lot to our balance sheet last year to get through a very difficult year. I think it's evident in the numbers. So we want to deleverage the business. We have great assets with lots of people that are interested in part of those assets going forward. But as you called out, the world is pretty different. Pricing has improved. We are a very different business. Our capital projects are now behind us. They're fully derisked. And clearly, by what we've spoken about today the run rates delivered in the fourth quarter. They all are delivering -- and like Buchanan that generated $20 million in a month in December and is having another good month this month, frankly. We will make sure that we get maximum value for our shareholders. So we will consider where we are at, where the market's at and our balance sheet and options to strengthen that versus asset sales. But I will say we've had strong interest and we're well progressed in our discussions with parties on that minority sale. Chen Jiang: Sure. I understand. Can I squeeze last question because you mentioned that the deleverage and also into that release mentioned deleverage of the balance sheet. So I'm thinking, looking at the -- your senior debt is USD 400 million, and then you have Stanwell facility, USD 265 million. That's altogether in total USD 665 million, which is still higher than your current market cap. I'm wondering if you can help us understand your plan, if there's a need to deleverage balance sheet over the, I guess, more medium and long term, if the spot price stay for the next quarters or years? And how you are going to do that, given the agreement with Stanwell is in exchange of the thermal sales? Barend Van Der Merwe: Yes, in, that's very good. I mean I think the way we look at it, obviously, the prices are and they were easing it lasts for a year or more than that. Coronado is very well set in that regard because our operational leverage is extremely high. So the business will generate a lot of cash. I think the way we go about it will be to build cash against the debt. So even though we can choose to repay that ABL with Stanwell and prepay it, I think manage liquidity, 1 would rather keep the flexibility and build up cash and keep the gross debt and then deal with those debts as they come up to maturity. I think when we speak about shareholder returns in that sense, I think, in the first instance, deleveraging would cause the equity to respond because I think the company's enterprise value is intact and is in a good place. but there's a lot of debt that makes up that enterprise value, as you rightly remarked, if you look at the market cap, the debt and the equity value is kind of approaching parity now. As one would think as you build cash against the debt, that you'd see an uplift in the equity. So that's quite simply, I think, what we target. In terms of the minority sales earlier, if as Douglas said, we can find suitable transaction with the right value that will help us accelerate deleveraging and get us on the front foot as opposed to just doing it through operating cash flow as and when we generate it. Chen Jiang: Great. That's very good color, Barrie. So to clarify, I guess, the plan from here is just building up cash. And then how we should look at it is the net debt was that total there because total debt is still relatively high. And then the maturities is very, very long-dated probably 2027, 2028 onwards. Barend Van Der Merwe: I think that's what you do in the first instance to just reserve your liquidity position if our high price continues for the second and the third year, then I think you'd start looking at kind of how you do a more comprehensive balance sheet refinancing that maybe resets maturities and kind of cost of debt and those things. But I'm conscious that it's 2 days of PLV above $250 per tonne, so long met life. This concludes the question-and-answer section of today's call. I'll now hand back to Douglas for any closing remarks. Douglas Thompson: Thanks, Darcy. As Barrie said, long met life above $250 per tonne. So for team to set about a multiyear plan to improve the business, takes discipline and resilience and focus. And I am very proud of and very grateful for the people in our business that have demonstrated the resilience and consistency to ensure that we made real progress in these plans that we can demonstrate and set the business up for long term and the celebration of the important milestones in this plan along the way. And while that's all occurred, and while we focus on the plan, we obviously went through some very difficult times last year as a business. And the team stuck to the plan and have delivered ensure that they set the business up now for the future to enjoy the market that we're now talking about, as Barrie said,long met $250 per tonne last. So with that, thank you very much, everybody, for joining today on the call. And if you got any further questions, please do not hesitate to reach out to our Investor Relations team. As you know, Chantelle is always happy to help you understand for modeling reasons and the like. Operator: That does conclude our conference for today. Thank you for participating. You may now disconnect.
Operator: Good day, and thank you for standing by. Welcome to the Tele2 Q4 and Full Year Report 2025 Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Jean-Marc Harion, President and Group CEO. Please go ahead. Jean-Marc Harion: Thank you, Sandra, and good morning to all, and welcome to Tele2's report call for the fourth quarter and full year 2025. With me, I have Peter Landgren, our Group CFO; Nicholas Hogberg, our new Chief B2C Officer and Deputy CEO; and Stefan Trampus, our Chief B2B Officer. Please turn to Slide 2 for some operational highlights from the fourth quarter. We had quite an intense last quarter of the year. We successfully secured and expanded our 1,800 megahertz spectrum position during the Swedish spectrum auction in November. In early December, we shut down both our 2G and 3G networks in Sweden, marking a milestone in our company history. Combined, these achievements will support our efforts to further improve our 5G network which already covers 99% of the population and was recently recognized by OpenSignal as the fastest 5G network in Sweden. We have delivered on our ambitious transformation and cost reduction targets, including for the reduction of our workforce. At the end of the year, we had canceled around 650 position at group level. We have so far as well addressed and renegotiated close to 350 supplier contracts, and this will continue during 2026. Moreover our tireless work on sustainability continues. And during the quarter, we were ranked #1 in Europe and second globally by Global Child Forum for our work on integrating child rights into the business. We were also recognized by CDP with an A score for climate change efforts for the fourth consecutive year. Please move to Page 3 for financial highlights. Our deep transformation executed in record time has borne fruit and translated into not only a spectacular improvement of Tele2 profitability, but also into an accelerated growth of our top line. Our end-user service revenue growth has progressively improved throughout the year to reach a good 4% in Q4. Once again, underlying EBITDAaL grew strongly with 13% in Q4, marking the third consecutive quarter of double-digit growth. On a full year basis, we exceeded most of our 2025 guidance KPIs. Tele2 full year equity free cash flow grew by a massive 42%, leaving our balance sheet very healthy. This was mainly driven by our operating cash flow plus working capital, which we have improved by 1/3 compared to 2024. Consequently, our Board of Directors proposes a dividend of SEK 10.50 per share, an increase of 65% from last year and to be paid in 2 tranches in May and October. We have also updated our financial policy and set guidance for 2026, which will soon be discussed. Please move to Page 4 for more details on our results. Our 4% end user service revenue growth in Q4 has been driven across all our operations and core services. In addition to continued strong performance by Sweden business and the Baltics, especially positive this time is the return to growth in Sweden Consumer. The 13% growth in underlying EBITDAaL was driven by both transformation and revenue growth. Our Q4 equity free cash flow was impacted by a spectrum payment, which offset higher underlying EBITDAaL. Full year, Tele2 delivered SEK 6.2 billion equity free cash flow. CapEx to sales picked up seasonally in Q4, but remained at low levels, around 11%, both in Q4 and for the full year. In Sweden Consumer, end user service revenue grew by 2% as growth in core services exceeded declines in Boxer TV and legacy services. In Sweden business, end user service revenue growth accelerated further to 7%, thanks to good growth in mobile, including IoT and solutions. The Baltic grew end-user service revenue by 6% and underlying EBITDAaL by 16%. But let's move to Slide 6 for more details on Swedish Consumer. As mentioned in my CEO later, we have successfully leveraged our strengthened brand and new offers to drive significant traffic to our own channel, which now contribute to 2/3 of our sales. Our continued investment in stores and online capability have started paying off, and we are confident in the efficiency of our commercial model. Mobile postpaid end-user service revenue grew by 5%, up from 4% in Q3. Total mobile revenue grew by 4%, partly offset by continued decline in prepaid. Fixed broadband grew end-user service revenue by 2%, mainly due to ASPU growth. Digital TV showed strong sequential improvement driven by healthy mid-single-digit growth in Tele2 TV, end-user service revenue growth, which now offset the continued, albeit smaller drag from Boxer TV. Following up on Boxer TV, the full year ended very close to our communicated estimate of around SEK 225 million revenue decline compared to 2024. Total consumer end-user service revenue grew by 3% in the quarter, excluding the Boxer impact. Let's look at consumer KPIs on Slide 7. Mobile postpaid added a solid 16,000 RGUs in Q4, net of 14,000 one-off contribution relating to recognition of previously uncounted low ASPU RGUs. Mobile ASPU growth improved to 3% year-on-year, which is -- while it was still negatively impacted by IFRS 15 fair value adjustment in Tele2 customer base, Q4 also included a positive one-off. Adjusted for both underlying ASPU growth was still 3%. Fixed broadband RGUs remained unchanged in Q4, whereas ASPU grew by 1%. Just like in previous quarter, we observed aggressive competition and escalating wholesale access fees, which hampered volume growth. TV returned to positive net intake with 3,000 RGUs added in Q4 as growth in Tele2 exceeded continued decline in Boxer. ASPU grew by 4% year-on-year, supported by more sports revenue. Please move to Slide 8 for Sweden business. Sweden business continued to deliver strong end-user service revenue growth, this time reaching 7% driven by growth across operations. Mobile grew by 7%, driven by our IoT business, including some temporary project revenue of around SEK 15 million in the quarter. Mobile RGUs remained stable in Q4, while up by a solid 4% year-on-year, ASPU continued to be impacted by change in customer mix. Solutions grew by a strong 10%, driven by finalization of larger network and cloud modernization projects. Please move to Slide 9 for Sweden financials. In total, Sweden end-user service revenue accelerated to 3% growth in Q4, driven by both business and consumer. Underlying EBITDAaL grew by 12%, driven by the end-user service revenue, workforce reduction, stricter prioritization and cost control. The cash conversion has improved to 69% over the last 12 months. Let's move to Baltic financials on Slide 11. Baltics have maintained operational momentum with continued strong top and bottom line growth in Q4. Total end-user service revenue grew at 6%, supported by price adjustment during first half year. Q4 was the fourth consecutive quarter in which all markets delivered double-digit growth in underlying EBITDAaL, delivering a total growth of 16%, led by Estonia at 41%. Cash conversion increased to a strong 81% during the last 12 months, reflecting increasing EBITDAaL margin. Let's move to Slide 12 for Baltic operating KPIs. The total postpaid base in the Baltics increased by 23,000 RGUs in Q4, driven by Latvia and Lithuania. Prepaid declined by 68,000 RGUs, largely due to regulation and migration to postpaid. Blended organic ASPU grew by a strong 11%, driven by price adjustment and continued prepaid to postpaid migration. With that, I hand over to Peter, who will go through the financial overview. Peter Landgren: Thank you, Jean-Marc, and good morning, everyone. Please turn to Page 14. First, a couple of comments on the group P&L for the quarter. Total revenue grew by 4% organically, driven by service revenue growth of 4% with contribution from all operations and equipment revenue growth of 7%. Both underlying EBITDA and underlying EBITDA after lease grew by 13% organically, thanks to sharp cost control across the group, and the service revenue contribution. Then over to the full year P&L. Both underlying EBITDA and underlying EBITDA after lease grew by 11% organically. The group reached a full year underlying EBITDAaL margin above 39%, which implies an increase of 3.4 percentage points compared to 2024. Items affecting comparability ended at SEK 600 million, of which SEK 500 million were restructuring costs related to the transformation, fully in line with our expectations. Net financial items decreased year-on-year, thanks to both lower interest rates and reduced debt levels. By the year-end, our average interest rate was 2.8%, with a debt mix of 68% fixed rates and 32% floating rates. And income tax finally, sorry, increased year-on-year due to higher taxable profits. And let's move to the cash flow on Slide 15. In Q4, equity free cash flow of SEK 777 million was generated, broadly in line with last year. The final payment of the Swedish spectrum secured in 2023 was absorbed by strong growth in underlying EBITDAaL and lower CapEx. But let's focus a bit more on the strong full year cash flow. CapEx paid, excluding spectrum, decreased by around SEK 630 million. This was mainly thanks to successful prioritization and partly due to some investments being postponed to 2026. Changes in working capital contributed almost SEK 300 million to the cash flow, supported by optimized inventory levels, but also increased redundancy provisions. Taxes paid decreased by around SEK 155 million, thanks to a tax refund earlier in the year. Net-net, full year equity free cash flow reached SEK 6.2 billion, which means a 42% growth compared to last year. This translates to almost SEK 9 per share. Please turn to Slide 16 and our capital structure. By year-end, economic net debt amounted to SEK 24.3 billion, a reduction of SEK 1.9 billion compared to 2024. This was enabled by the cash generated in the business, exceeding the dividend distribution. Today, we also announced that the Board has updated the financial policy. With this policy, the aim is to provide attractive shareholder remuneration, while preserving a strong balance sheet and financial flexibility. The proposed dividend demonstrates a sizable distribution, while our leverage of 2.1x underlying EBITDAaL after lease will comfortably stay within the desired investment-grade range. And with that, I hand over to Jean-Marc for a follow-up on our 2025 guidance and then some comments on our 2026 guidance. Jean-Marc Harion: Thank you, Peter. Please turn to Slide 17 for some comments regarding our performance relative to our 2025 guidance. Overall, we delivered clearly ahead of our initial full year 2025 guidance. While end-user service revenue growth was in line with guidance, as you probably remember, in Q2, we raised guidance on underlying EBITDAaL from initially mid- to high single-digit growth to slightly above 10%. We can now conclude that we even exceeded that target by the massive full year growth of 11.4%. In Q3, we also reduced our CapEx guidance from around 13% to around 12%. We ended the year at 10.8% due to the successful prioritization and the deferral of some planned investment to 2026. Please turn to Slide 18 for our 2026 guidance. As we leave 2025 behind and look ahead, our strong performance during last year has obviously raised the bar and established a new reference point for Tele2 profitability. Our ambition for 2026 is to consolidate the transformation of the company, continue improving our profitability and secure our revenue growth despite the uncertainties of the geopolitical landscape. We have, therefore, decided on the following full year guidance for 2026, low single-digit organic growth of end-user service revenue, low to mid-single-digit organic growth of underlying EBITDAaL, CapEx to sales in the range of 10% to 11%. It is important to note that the organic growth rate for underlying EBITDAaL excludes the impact of the Baltic Tower transaction that we expect to close in Q1. I hand back to Peter for some additional comments regarding 2026 before we open up for Q&A. Peter Landgren: Thanks. I would like to start with then a reminder about the Baltic Tower transaction, which is still expected to be finalized in Q1. Upon closing, we expect cash proceeds of around EUR 430 million after transaction costs. And as previously stated, the transaction is expected to have a negative impact on underlying EBITDAaL of around EUR 35 million on a full year basis. Finally, the CapEx avoidance is limited to passive equipment, and that's already reflected in our 10% to 11% CapEx to sales guidance for the group. And then a few additional comments on the cash flow for the full year 2026. In Q1, we'll pay SEK 117 million for the Swedish 1,800 megahertz spectrum secured in November 2025. The other half will be paid later in 2028. Also worth mentioning that there might be spectrum auctions in the Baltics during 2026. On financial items, excluding leasing, we estimate full year net payments of around SEK 650 million. Finally, on taxes, we estimate full year payments of around SEK 1.4 billion. With that, I hand over to the operator for Q&A. Operator: [Operator Instructions] We will now take the first question coming from the line of Andrew Lee from Goldman Sachs. Andrew Lee: I had 2 questions, both -- or one around the growth guidance or one around capital allocation. So just on the growth guidance, could you just talk through the scenarios you see that would support a low single-digit EBITDA growth guide for 2026. Obviously, Q1 has pretty easy comps. And that means that your low single-digit growth guidance would imply basically no EBITDA growth, I think, for the remainder of the year. Are you missing something in terms of what's happening in the cost base? Or something else that didn't really transpire in 4Q? Any help there would be really useful. And then secondly, just on the capital allocation. The SEK 10.5 dividend is obviously a meaningful increase. You haven't split it by extraordinary and ordinary dividends. Should we see that SEK 10.5 DPS as a floor now for shareholder returns going forward, given I think that leaves you below or notably below 2x net debt to EBITDA by the end of the year? Jean-Marc Harion: Yes, Peter will take the 2 questions. Yes. Peter Landgren: Okay. If we start with the second question around the floor, it's correct that the dividend, there is no distinguished between ordinary or extraordinary dividend. That's a conscious decision. And I think we're pleased that we are able to distribute such a sizable dividend, thanks both to the strong cash generation in 2025 and also the strong balance sheet that we have. Looking forward, we're not communicating in the sense of that this is the floor. We have 2 things that enables dividends going forward, and that's obviously the continuation of cash generation. And secondly, we still have a very healthy balance sheet to enable us to have attractive shareholder remuneration also going forward. But I wouldn't see this as a floor. That's not what we're communicating today. We're communicating a sizable dividend of 118% of equity free cash flow, and we communicate a policy, which enables both a solid rating and good distributions going forward, but not more than that. Jean-Marc Harion: Regarding the growth guidance, I would say that when you look around, it's -- of course, it's important to remain cautious about the commitment we take to our investors. That's -- as a reminder, and we insisted on that point, we have raised the bar for profitability. So the starting point is much higher this time. So we continue -- we will continue improving the EBITDAaL and the EBITDAaL margin over the time, thanks to the continuation of the cost discipline and the strict prioritization that we have implemented in 2025. This will not change. But in the meantime, we are observing how the market will evolve and the possible impact on the customer behaviors. So we have made the company today much leaner and much more agile than it was 1 year ago. So the adaptation, the capacity of Tele2 to adapt to any circumstances to deliver anyhow or targets for margin and cash will not be impacted by or cannot be impacted by the evolution of the landscape. So that's why we remain a little bit careful when looking forward in 2026, and we will see how the situation develops. Andrew Lee: Just a quick follow-up. Just -- so am I to interpret Jean-Marc, your comments as in you've built in kind of uncertainty around the kind of the macro environment to that EBITDA growth guide rather than implicitly reflecting an increase in costs, marketing costs, which went up at 1 point during 2025 or some incremental costs around stepping away from third-party retailers or something that... Jean-Marc Harion: No, no. If this was the reason for you to ask the question, no, it's not the case. So we remain quite scarce in terms of all kind of expenses, including marketing expenses. We, of course, keep our ambition and confirm our ambition to develop our own channels and reduce progressively the dependency on the third-party channels because of the behaviors and the quality of the sales that we generate through these third-party channels. But definitely, the reason for us to come with this guidance is, of course, the observation of the context. We will secure the cost base of Tele2 as a continuation of the discipline that we have implemented in '25. Of course, we see the top line continue growing, but depending on the evolution of the context, we may need to adapt. That's the only rationale. But definitely, no increase, no major change in the cost base if this was your question. Operator: We will now take the next question from the line of Ondrej Cabejšek from UBS. Ondrej Cabejšek: I've got 2 questions as well. One is on CapEx. So Peter, you said that some CapEx is spilling over into 2026 from 2025, but the 2026 CapEx guidance is already, I would think, a positive surprise. So my question would be, does that signal to us that Tele2 can be quite firmly at around 10% CapEx to sales from 2027 onwards? That's the first question. And then the second question would be maybe asking a different way about the dividend. So in terms of the leverage policy that is now just to remain investment grade. So I was thinking, first of all, is there a soft steady-state target around, say, 2x that you wish to be on? And then implicitly also, what is the -- or in addition, what is the limit under the new definition of remaining investment grade, taking into consideration the impact from the Tower deal? Like what is the headroom basically for you to remain investment grade? What is the maximum ratio is the question? Peter Landgren: Okay. Ondrej, thanks for the questions. If we're starting with the CapEx guidance, good that you're positively surprised. That's always nice. 10% to 11% is what we call out now. We know that we have things moving in different directions in one way we -- one movement is, of course, that the rollout in Net4Mobility is slowing down, which is helping our CapEx ratio. On the other hand, we have other investments that we need to take care of, for instance, making sure that we have the rollout complete in the Baltics, and we landed on the 10% to 11% is a reasonable range from that perspective. What that means for 2027 is nothing we announced today, but we think that this level, which we talk about now is quite representative to where Tele2 stands today. When it comes to the dividend or the financial policy and the range, it's true that, as you call out, that the Tower transaction will have implications on how we look at leverage going forward in 2 ways. One is the obvious one that the leverages will else equal decline by the Tower transaction. So we'll see lower leverage once that's concluded. On the other hand, as you point out, the acceptance from the rating firms will also be reduced due to commitments we have in the new tower arrangement. And I would say right now, I think that the route for leverage after the Tower transaction will probably be somewhere between 2.6 and 2.7. That might evolve over time, but to give some kind of engagement right now, how we look at the limit for where we can be in the new environment. Hopefully, that's covering your question. Ondrej Cabejšek: It does. If I may, one quick follow-up. Regardless of what the dividend will be next time around, if it's SEK 10.5 or there's a bit of a reset. Is there an ambition that you can kind of share -- and I know this is the Board, et cetera, but is there an ambition to have maybe like a mid-single-digit growth in the dividend, just like many of your peers do as an example? Peter Landgren: No, the ambition is to have attractive shareholder remuneration and stick to this policy. In the end, as you point out, it's ultimately the Board that decides what is the right level every year. I think our focus here is to generate as much cash as possible because that's fundamentally what enables dividend going forward, but nothing more than that for now. Operator: We will now take the next question from the line of Owen McGiveron from Bank of America. Owen McGiveron: It's Owen McGiveron at Bank of America here. So mentions of releveraging and distributing and share buybacks have been emitted from the new financial policy. My question is if these remain in your toolkit? Or should we now expect capital return announcements to be a once-a-year kind of event at full year? Peter Landgren: Thanks for the question. I think for now, the route is, as you also see from the announcement today, is dividends, and that's what you can expect for now going forward. We're not ruling out share buybacks at some point. But right now, that's not what we see coming. And on the announcement, I think we -- of course, you can expect dividend announcements along with the Q4 report every year going forward as well. If there will be something in between at some point, it's a bit speculative and might happen, but nothing will -- we'll not rule it out, but we don't have a firm decision on when to announce dividends. For now, this is a dividend we call out now in Q4 to be fair. Operator: We will now take the next question from the line of Andreas Joelsson from DNB Carnegie. Andreas Joelsson: I had a question on the KPIs actually. Looking at Sweden and your growth initiatives that you have for 2026, we can see that mobile ARPU is trending quite positively, while ARPU within broadband is at a somewhat slower pace. So it would be interesting to hear your plans to continue growing ARPU in both areas in Sweden going forward? Jean-Marc Harion: Nicholas is going to answer your question. Nicholas Hogberg: Thank you for your question, Andreas. Well, so I think we are ready to capture both long-term and short-term growth. And especially during 2026, we will unleash the potential on our existing customer base and increase the value of the base through cross-sell and upsell, which will be prioritized. And we will do that through many initiatives, working with customer intelligence as the main driver, and we will make sure that we maximize our customer interactions and sales through own channels as said before. And we now have our own -- sales through our own channels is now representing approximately 2/3 of the total sales, which is important going forward to establish a strong relationship with our customers. So we will optimize that through sophisticated data analysis and AI tools, and that's an ongoing work to be able to maximize cross-sell and upsell. So also with that said and what Jean-Marc said earlier, we are now increasing our physical footprint and opening up new stores, also in areas where we have historically been underrepresented. So this will help us. We now have the fastest 5G network covering 99% of the population. So given that, that gives an excellent customer experience, it allows us to break new ground and develop our market share in areas where we historically haven't had a very strong market share. So I think we see a potential of growing during 2026 in our customer base. When it comes to broadband, we have our network, and we're focusing on delivering excellent mobile broadband to our customers, but also we're happy to having our own network, broadband network, and we are now strengthening our coax network, and we are going to launch 2,500 megabit per second service to our customers to increase our strength in that area. Andreas Joelsson: Perfect. And just one follow-up on the dividend. Would you be happy to continue to pay out more than 100% of equity free cash flow for the dividend if needed, so to say? Peter Landgren: Yes. I think there's nothing in the policy that stops us from doing that. And as you can see as a demonstration on that today, the proposal is 118% of equity free cash flow. So that might -- it's a bit speculative, but that might, of course, happen depending on the context and the financial outlook and our abilities. The limit is -- what's committed is at least 80% of equity free cash flow as ordinary dividend. That's what we keep stating. Operator: We will now take the next question from the line of Fredrik Lithell from Handelsbanken. Fredrik Lithell: I'm going to stay with one question. And maybe Stefan, if you could put some color on how you see the business-to-business market developing? What you see in front of you? And if you can sort of split that up in discussions around sort of the large enterprises, the public sectors and the small company segments and how they develop would be interesting. Stefan Trampus: Thank you, Fredrik. Well, if we start with the different segments then on the micro SME segment, I mean 2025 was a challenging year in terms of bankruptcies. It's the highest level in many, many years. At the end of the year, we saw a slowdown of the bankruptcies, which, of course, also is seen in our customer base. So it has been stabilizing in the smaller segments. I think the demand is still there from SMEs. And if you look at on a year-on-year growth. I mean, we had good growth and demand in SMEs and the public sector. If we talk about the larger segments, I would say that the public sector must have been a little bit squeezed from a budget perspective coming into the end of the year, it has been visible in some of our product lines. And in the larger segment, I would say that the larger customers have been a bit cautious. I mean, of course, it's not the same thing for all customers, but I would say that we have seen some cautiousness in investments from larger segments. So that is how we see the development of the different segments. And of course, going into 2026, we hope for a better macro, better demand in general. I mean, we've been hoping that the macro will turn for many times now. But let's see how it develops. Of course, it will help us. From a competitive situation, I would say that we've seen high competition aggressiveness in the micro and SME segments, especially from Telia and Telenor, where they have, I think been very high on commissions to external partners and also on below-the-line pricing. So that's what we've seen. But on the larger segments, we've also seen that both Telenor and Telia have been keen on keeping their customers and finding new ones looking at how they have acted on different deals. So that's a little bit color on both the competitive side and the segment side. I hope that gives some color, Fredrik, to the situation. Jean-Marc Harion: Let me add one comment on what Stefan commented. It's important to remind us that in 2025, we've been through a very deep transformation of our B2B business because the observation we made at beginning of last year was that not all the segments for B2B were, I would say, delivering the same profitability. So thanks to the transformation driven by Stefan, the prioritization of our portfolio, the focus on future-proof technology, a lot of automation in the process. We are now comfortable to grow all the segments, of course, with the preference for the core business but not only the solutions as well. And that gives us the flexibility to push some segments depending on the evolution of the market. So this is super important. We now have, I would say, a fully profitable activity on the B2B side, and we can accelerate the revenue when we see the opportunity in every segment. Operator: We will now take the next question from the line of Erik Lindholm-Rojestal from SEB. Erik Lindholm-Rojestal: Two questions from me, if I may. So I just wanted to follow up on the Baltic Tower Co transaction. You've spoken about this already, but sort of when you are seeing the completion of this and given what you said about leverage, could this be a trigger for announcing further dividends? And then the second question, just on Sweden B2B. I mean, IoT was really strong. Anything to call out there in terms of the drivers to this strength? And also solutions looked really solid, and you said there were completion of some projects. But do you see this strength continuing ahead? Jean-Marc Harion: Peter, on the Tower Co. Peter Landgren: Thanks for the questions, Erik. I don't think you should expect more dividends just because of the closure of this transaction. What we announced today is what we announced today, and let's see what will be concluded by the Board going forward, but not -- no explicit expectations just because of that. It's -- as we have discussed, we will see a sizable decline in our leverage by the transaction. But at the same time, the commitment in the Tower agreement in the 20 years agreement will lead to that the acceptance for high leverage is declining, is also going down accordingly. So that's what I would say at this point. Jean-Marc Harion: And we expect to close the transaction in Q1. On the B2B, IoT? Stefan Trampus: Yes. Thanks, Erik, for the question on both the IoT and the solutions part. Jean-Marc was alluding to it a little bit in his speech in the beginning that we have a healthy growth mix from all parts, I would say, of the business. It's driven both by mobile, cloud PBX, networking solutions. In the networking solutions area, the growth is coming from managed services and service agreements, both from new and existing customers. And then we also have the IoT part. And the solutions business is very much driven by customers needing to do network and cloud modernization. And I think that will continue. At what pace? I mean, it differs a little bit about how our customers can make investments in different areas. But for sure, it will continue. It can go up and down between quarters, and we talked about that before that we can have large rollouts for some quarters and then we have a buildup of revenues, et cetera. So that can differ over quarters. On the IoT side, we have a bit of an elevated increase this quarter, as Jean-Marc was alluding to, with SEK 15 million due to some larger projects. Let's see how the customer demand is there for specific projects. So that's something we are continuously in discussions with our customers. But in general, the IoT growth, we expect that to continue. The underlying growth in that business is really good. And let's not forget that, I mean, excluding this SEK 15 million, I mean, we are on a high level, actually picking up a little bit from Q3 to 5.4% growth, excluding this, what we would call project rollouts then or one-off revenues. So overall, a solid quarter in regards to the growth and looking forward to 2026. But I wouldn't say that you should take Q4 as the base for the growth going forward. As I said, it's a bit -- it can swing between quarters. I think the profile that we had looking forward, more looking like 2025 in full year, so to say, that's what we look at. Operator: We will now take the next question from the line of Nick Lyall from Berenberg. Nicholas Lyall: Can I just come back to the growth point, please, on service revenues in particular. I mean you've just done 3.7% in Q4 for the group or 2.6% in Sweden... Jean-Marc Harion: Nick, can you speak louder because we are struggling a little bit to hear you. Nicholas Lyall: Sorry, can you hear me better now? Jean-Marc Harion: Yes, a little bit better. Nicholas Lyall: A bit better. You've just done low single digit -- so you said low single-digit revenue guidance or service revenue guidance for '26, but you've done 3.7% in Q4 and especially with the Boxer effect and the accounting effects falling away, why not more aggressive into 2026, please? And I do realize you've talked a little bit about conservatism and macro. But could you give us more guidance why particularly after the comments you've just made on consumer where you've talked about boosting the value of the subs base. Why is that not coming through more aggressively in 2026, please? Jean-Marc Harion: Peter? Peter Landgren: Yes. Thanks for the question, Nick. I would say first on maybe building on what Stefan said about Q4 and full year. We are, of course, very happy with the sequential improvement in Q4, but I think we should be -- avoid to be too carried away of taking that as a single data point for looking at the full year 2026. We had some -- we benefited from some tailwind from one-offs in both B2B and B2C. Going forward then, as Stefan said, we're positive about the B2B development, albeit not at the level as in Q4. On the B2C side, you're perfectly right that we don't have the Boxer headwind. Boxer will obviously continue to be presumably a decline, but not at the elevated levels as we saw in 2025. And we're positive to our core services, but still coming back to what we said in the beginning, a bit humble around the development around us and how things will progress going forward. And then I think we should also keep in mind that we have support from a fantastic growth in the Baltics. We, of course, expect Baltics to continue to grow, but you might not be able to expect such a growth the Baltics going forward. So we expect support from all 3 business lines, but altogether, we find this a good guidance for now. Jean-Marc Harion: Yes. I believe that a general note about our 2026 guidance is, as we stated in -- earlier in the presentation is that we are not starting from the same starting point. So we have raised the bar, and we will continue, of course, developing, but from a higher starting point. Operator: We will now take the next question from the line of Felix Henriksson from Nordea. Felix Henriksson: I wanted to revisit your thoughts regarding M&A in light of your new updated financial policy. Do you see sort of any opportunities for M&A, for example, in the fixed business in Sweden or somewhere else? Or should we sort of conclude that the use for excess cash will be basically to distribute that back to the shareholders? Jean-Marc Harion: I will take this one. Of course, we are scanning the market, and we'll continue doing so. It's part of our role and part of the mission that the Board of Directors is asking us to do. For the time being, there is no deal on the table, and I believe that one of the reason for that, especially considering what the sector that you are referring to, the fixed business is that we are waiting for the regulation of the single dwelling units, which should materialize this year before observing the consequences on the new landscape. But on a general note, we continue scanning for the opportunities. But so far, we don't have any project on the table. Operator: We will now take the next question from the line of Ulrich Rathe from Bernstein. Ulrich Rathe: I have 2 questions, please. The first one is on working capital. That was a major contributor in 2005 to -- 2025 to free cash flow. So I was wondering how much further you can drive that? Working capital is at some point, structurally listed in terms of what it can provide, but we're not quite sure from the outside how much further you can drive your optimization efforts. Second question is on the terms of the Tower Co. I mean so far, we know cash impact on you, the general structure of the deal with Manulife and then also the EBITDA impact, but we don't know much about what the structure of the underlying agreements are. Now you're highlighting here that the agencies are taking a view. Presumably, they know a little bit more about it, but their focus is on creditor protection, which is not necessarily aligned with what equity investors are considering when they look at such deals and what they do to the value creation. So I was just wondering what further color you can provide on what this Tower Co will do to the Tele2 case? In particular, 2 aspects here would be the EBITDA impact in further outer years. The second one is how we are supposed to value your 50% stake in this Tower Co, if we don't really know what you've agreed there in terms of terms? Jean-Marc Harion: Peter, you can... Peter Landgren: Yes, I can start with the working capital... Jean-Marc Harion: Yes. And continue with Baltic Tower Co. Peter Landgren: Yes. On working capital, first of all, of course, we're very pleased with the contribution of close to SEK 300 million in 2025 based on a continuous work and persistency on optimizing the asset side and the main driver is then optimized inventories. That can obviously not -- as you point out, not continue forever. It will continue to be top of our agenda to make sure it's as optimized as possible in 2026. But we also know that, for instance, we have some severance provisions that we need to settle, and we're also dependent a bit on the commercial activities and what will happen around both Hans funding and other things around the business. So exactly where it will land going forward is unclear, but I don't think you should expect it to be repeated again as this swings back and forth. We continue to work on it, but 2025 was an extraordinary good year. So that's on that. On the Tower Co, the information we provide right now is the things we have called out, the annual EBITDAaL impact of negative EUR 35 million and that's what you should expect in the near term. Then of course, we -- it will evolve, and we will learn more, but that's what you should expect for now and also the upfront cash proceeds and the size in terms of number of towers and rooftops has been called out. And also there is a 20 years agreement around those towers. That's what we call out now. Obviously, in the financial reports going forward, we will own 50% of this company and the contribution from that will, of course, be, to some extent, disclosed in our numbers because it's part of our consolidation in the end, even though not consolidated in our EBITDA numbers, but as a separate line, so you will get visibility there. Otherwise, more strategically, we're doing -- as a reminder, we do this to be the first pan-Baltic Tower company and build a strong company there. And of course, we have, as shareholders, expectations of creating a successful business there as well. But at this point, this is what we call out, and it will, of course, evolve during 2026. Operator: We will now take the next question from the line Siyi He from Citi. Siyi He: I just have a follow-up question on the broadband -- consumer broadband trend. It seems that the broadband has stable for this year. I'm just wondering what are the reasons behind the flattish broadband trends, whether you see some pressure in your cable base, or you have chosen not to expanding into the fiber areas because of the pending change of regulations. And if I can also follow up on the change of regulations, just get your view on what could be the potential changes? And maybe your view on how to benefit from the improvement in regulations, either you think it's fine to benefit through organic growth? Or you think the buying infrastructure assets could be a better option? Jean-Marc Harion: Okay. Well, I will take this one first, and Nicholas will complete, if necessary. But basically, on the broadband, we already commented on that in previous exercises. We see -- we have, of course, to deal with the complexity of the market for the fiber part. So the open fiber networks in Sweden are owned by a variety of different owner and operators, a lot of them being local ones. And what we see is that not only there is an intense competition on these networks, but sometimes, the retail prices are capped by the landlord for instance, and there is a permanent increase of the wholesale prices that squeezes the operator. So this situation is probably not sustainable on the long run. And of course, for the time being, it's a situation that we see in the buildings, mostly because we are waiting for the regulation that will give us access to the single dwelling units, the villas that represents half of the households in habitation in Sweden. Saying that in the waiting for the -- for this regulation, as Nicholas has commented, we are emphasizing the benefits of our DOCSIS infrastructure that we have partly upgraded to Remote PHY in the areas where we were suffering from congestion. And now we are reshuffling the spectrum, and we have started offering up to 2.5 gigabit per second Internet, which is a performance, of course, that is very rarely matched by fiber in Sweden, and we see that as a competitive advantage. So we are capitalizing on our footprint. And of course, we will wait for the new regulation to materialize before taking new positions on the fiber. But for the time being, the situation of the fiber in Sweden is not optimal. Nicholas, do you want -- no? Nicholas Hogberg: No, no further questions or comments. Operator: We will now take the last question from the line of Abhilash Mohapatra from BNP Paribas. Abhilash Mohapatra: I've got 2, please, mostly clarifications. Firstly, on the dividend. You mentioned that the SEK 10.50 is not a flow, but at the same time, the policy does not stop you from paying more than 100% of the equity free cash flow. My question is, what exactly will determine where you end up on the payout on a year-to-year basis? How do you think about it given your strong cost cutting will probably keep growing free cash flow? So how do you decide on the dividend payout on an annual basis? And just related to that, is there a sort of numeric leverage range, which is linked to your investment-grade target? Is there a number that we can think about? And sorry, just one other clarification. Earlier in the prepared remarks, did you mention a cash tax number for 2026 of SEK 1.4 billion? Sorry, if I misheard but just if you could clarify. Peter Landgren: Okay. On the dividend, first of all, just stating the obvious that it's, of course, in the end up to the Board, what they will propose and ultimately, the AGM. What sets the limits for next -- for the future? First of all, this financial policy gives a framework where to land. And that's the framework we need to live with and play based on that or will do so. The fundamental thing for future dividend is the cash generation again. But then exactly how a large portion of the cash generation that will be distributed. That's nothing that we can comment on now, obviously, but we commit in the policies is that it's at least 80% of the equity free cash flow generated that will be distributed. That's the floor we talk about. When it comes to the -- if I understand your leverage question, and then I'm repeating that answer and hopefully it covers your question is that based on the context right now, that might, of course, evolve. But as we see right now, after the Tower transaction, we believe that with the ceiling for BBB is around 2.6 or 2.7 in terms of leverage. But again, it's based on the context and there are also other metrics, but that's what we expect. And yes, on tax payments for 2026, we, at this stage, early in the year, expect SEK 1.4 billion of payments. Operator: Thank you. There are no further questions at this time. This concludes today's conference call. Thank you for participating. You may now disconnect.
Johan Bartler: So welcome this morning to the Volvo Group Fourth Quarter Press Conference. Today, we'll do, as we always do, we will listen to the presentation by -- from our CEO, Martin, and then listen to Mats. And then we'll follow up with a Q&A session. So with that short introduction, let me hand over to you, Martin. Martin Lundstedt: Thank you. Thank you, Johan, for that. Also from my side, welcome. It was always special with the full year also report and of course, also in more detail quarter 4. So maybe then to get started. As you know, we are still in a period with uncertainty in our key regions and in particular, for North and South America, where we have seen a continuation of cautious stance among our truck customers. Having said that, lately in the later part of the quarter and also in the beginning of the year, there are signs of stabilization and somewhat a recovery. And while Europe had a positive volume development in the quarter, volumes in both North and South America were lower in the quarter and are expected to be weak also in the first quarter of 2026. And that is, of course, related to the order intake that we had earlier in '25. But however, when it comes to the market forecast for the full year of 2026, we are revising our market forecast upward for North America as we do also for Europe, even if that is more marginal. Despite many moving parameters, the group had a solid performance in the fourth quarter with a flat level of sales if you adjust for currency and the divestment of SDLG, an adjusted operating margin of 10.3% and good cash generation. Operationally, we continue to drive what we can impact ourselves, not at least by utilizing our flexibility toolbox to maintain balance between demand and supply, and very important where we are in the cycle to keep inventories at the right levels. Focus is also on effective cost control, commercial discipline and the service business. And services did have a positive development during the quarter with a strong underlying growth of 5% adjusted for FX and SDLG, showing that our customers around the world continue to utilize their vehicles and machines. And that is, of course, a very important feedback. And it also means that the fleet replacement rate eventually will have to increase. That is a given. While having strict cost control, selling, admin, industrial, our priority in innovation and technology continues. At the same time, also in these areas, we are continuing to gradually adjust and to have a correct time phasing for our project and product portfolios. Having said that, there are segments that are moving quicker than anticipated with good growth prospects, both here and now and moving forward. The huge demand, a little bit surprising also for smart and not at least speedy alternatives for energy and power is driving the demand for Volvo Penta's power and energy solutions, not at least for data centers and AI factories. And with the recent launch in the beginning of this quarter of the gas-powered G17 engine that is building on our existing technology and industrial stack, meaning that we can benefit from scale immediately, that position will strengthen further. The same goes also for mining and defense areas where we will continue to increase focus. So moving forward in these turbulent times for global trade, we focus, and I've already said that, on activities that we can influence ourselves. Apart from what I've said in terms of cost and commercial discipline and services, we continue to build on our strong regional value chains, combined with global capabilities. The world is moving from a more global synchronized system more in steps into a regional platform. And there, Volvo is well positioned. So as we conclude the turbulent '25 with solid sales and group margin supported by underlying resilience, I would like to take the opportunity when we have the full year report to thank customers, business partners and colleagues for great cooperation. With uncertain business conditions, strong and close relations are -- they are always important, but more important than ever. And finally, the world will still need efficient and effective transport and infrastructure and energy solutions, and the group is well positioned to leverage these opportunities moving forward. So if we look then into the fourth quarter, net sales declined to SEK 124 billion on the back of lower truck volumes, but it was flat development when adjusted for currency and divestment of SDLG. We delivered a solid result in these turbulent times, resulting in an operating income of SEK 12.8 billion and a growing operating margin of 10.3%. Cash flow amounted to SEK 19.3 billion, which resulted in a net cash position in Industrial Operations of SEK 63 billion. Return on capital employed in Industrial Operation at 25.3% and EPS SEK 4.73. Moving over to volumes. Truck deliveries declined by 3% in the quarter to 56,700 vehicles with drag in North and South America that I've already said, offset by then growth in Europe. For Construction Equipment, deliveries decreased by 46%. But when adjusting for SDLG, the machine deliveries increased by 9%. And if you want to be even more granular, they increased by 10% for the Volvo brand since Rokbak back then previous Terex didn't increase as much. So 9%, excluding SDLG. Electrification, still with different uncertainties related to the electrification, not at least when it comes to a number of the enabling conditions, underlying demand continues to be rather slow. But orders for fully electric vehicles adjusted for SDLG increased still by 3% and deliveries increased with 20% when adjusting for SDLG. This growth was mainly supported by a 15% growth of electric light commercial vehicles in the Trucks segment. That is not surprising. We are now more and more into the new Master also Renault Master for Renault Truck in that segment. And obviously, that is also a segment that will continue to grow with last mile deliveries, et cetera. Coming over to top line and sales. If we start then with vehicle, machines. Overall sales of vehicle, machines declined 1% adjusted for currency and SDLG. Truck vehicle sales were down 4% on the minus 3% truck volumes, which is showing that price discipline also in this quarter in the softer market environment is working well. Construction Equipment adjusted for SDLG was growing with 13%, which was supported by sales of Volvo-branded machines in mainly Europe. Penta, 18% sales growth, FX adjusted, supported by North American data centers as well as the mining segment, also good demand in Asia. And Buses had a growth of 28% in the quarter, primarily driven by the Prevost brand in North America and by the Volvo brand in South America. Top line for service. Our service business, as I said, continued to develop well, and we grew 5% in quarter 4 adjusted then for currency and SDLG. You will hear that a couple of times with positive development in all business areas. And these developments, as I said, and I think this is very important, are proof points of one part, our push for more extensive service offerings that have been alluded to many times before, not at least when it comes to service, repair and maintenance contracts, et cetera, but also then that our customers continue to utilize their vehicles and machines and that the installed fleet needs to be renewed sooner or later. Buses were particularly strong with growth of 17%, driven by strong sales in Europe, Asia and Mexico. And Penta also continued to be strong with 8% and the same goes for VCE, excluded then SDLG, also had 8% growth. So the group's service business pacing at SEK 124 billion, 12 months rolling represent almost 26% of the group revenues, which is, of course, good in this part of the cycle. On the Trucks side, very proud, of course, and maybe you did see also the press release yesterday, super proud for our Volvo Trucks colleagues here. Second year in a row, Volvo Trucks was the heavy-duty champion in the European heavy-duty market with over 90% market share. And we really see that also on the back of strong customer satisfaction and a very competitive offering. You did see the FH Aero here that has really been doing great strides into the market. So tremendous offer by the Volvo Trucks team and led by Roger and all the colleagues there, but of course, the complete value chain. Volvo Trucks in North America, also important, delivered the first -- or the 125 all-new Volvo VNL to Highlight Motor Corporation, marking the largest order of the next generation of the all-new VNL in Canada to date. So now we are getting in also with this step-by-step with these volumes. And the first all-new Mack Pioneer was delivered to a customer in October, in the beginning of the quarter. And this marks, of course, a significant milestone for Mack Trucks, bringing the rejuvenation of the product range into the market. Also in October, the Volvo Autonomous Solutions team and Waabi, the leader in physical AI, have successfully integrated the Waabi Driver with the Volvo VNL Autonomous redundant truck. With this integration complete, both companies together now are focusing on really deploying this and support broad commercial deployment. Market environment, always very interesting. If I start with North America here, North American freight market, as I said, remains if you look at the figures and also the order intake during the bigger part of the year in recession. And so far into quarter 1, we believe that the North American will continue to be primarily replacement driven on the back of an aging fleet. The EPA '27 emission change will, in our view, only drive, if anything, a modest prebuy effect. So our current assessment of full year '26 is 265,000 heavy-duty trucks in '26. And we have increased then the forecast with 15,000 units versus the guidance provided in quarter 3. And what we can say is that later part of quarter 4 and also in the beginning of this year, we are starting to see somewhat better activity level. If that is a sign that will prevail, maybe too early to say, but of course, there are a number of parameters supporting that. The European registration pace continues to increase, and we have lifted the '26 total market forecast up to 305,000, which is then 10,000 units versus the guidance we had in quarter 3. Brazilian market contracted through '25, and we believe that the total market will continue to decline. We repeat and reiterate our total market of 75,000 for '26, even though that there are some movements in Brazil, not at least related to FINAME and the financing. And all of us that have been part of this for a while, we know that, that has normally a rather big effect. So let's see if that can support on the upside. But we -- for the time being, we reiterate that. And both for India and China, we are reiterating the market forecast as we had it also for quarter 3 or in conjunction with quarter 3, I should say. Book-to-bill, the overall book-to-bill for medium and heavy-duty amounted to 94%, both for the last quarter and for 12 months rolling. We managed our industrial system well in quarter 4 and had a book-to-bill balance both in Europe and North America. And also, as I alluded to with the right levels of inventory, that is super important where we are in the cycle right now. And for North America, we kept the balance by also working with a number of stop days, causing an under-absorption that Mats will talk about. But that is the right thing to do now rather than to take a further structural adjustment downwards. So on the back of the weak U.S. demand during the fall, we will also have some stop weeks for Volvo and Mack in the U.S. in the first quarter. And we take stop weeks, as I said, in quarter 1 rather than to structurally adjust for further -- adjust further downwards. And the reason is that we anticipate also partly supported now by recent order activity, a gradual recovery during the course of the year and in line with our full year guidance that we are increasing then, as I said, to 265,000. In South America, we have been more restrictive with the order slotting in quarter 4, and that is also explaining then the book-to-bill of 80%. We wanted to ensure that we did sell out more retail inventories, and we now have a situation that is in good balance when it comes to the inventories. Africa, Oceania and balance. And in Asia, book-to-bill mainly impacted by, number one, strong deliveries in quarter 4 in combination with lower demand in Middle East and Indonesia in the quarter. On the market share then, Volvo, Renault Trucks continued to deliver strong market shares for the full year. Volvo at 19% and Renault Trucks at 9.4%, giving a total of 28.4%. And Volvo Trucks then ended as a market leader. And on the battery electric side and despite that more OEMs are now delivering BEV solution, by the way, which is good because we need to accelerate that for Europe. Volvo Renault still holds a 39.1% market share combined for the year. North America, Mack Trucks self-help activities, not at least to stabilize the supply chain paid off during the course of the year, and they have step-by-step now regained momentum and their share is now 8% for the full year and later part higher. And Volvo Trucks are back on the right track also after the introduction of the all-new VNL here. So we also did see better market shares during the later part of the year, but 8.5%, I think it was for the full year. Brazil, Volvo remains market leader, market share of 23.2%. And Australia has been transitioning during the year from Euro 5 to Euro 6. We were ready with that rather early, lost market share when market were selling out Euro 5s, but we have seen also a good momentum during the later part of the year. So we expect that to stabilize. VCE selected Eskilstuna. You're all aware of that in Sweden as a location for the crawler excavator factory for the European market. Capacity of 3,500 machines in the 14 to 50 ton classes. And these excavators will be built on a mixed model assembly line for all these models, but also for both electric and internal combustion engine. And the closing of Swecon acquisition, our retail partner and wholesale and retail partner, I should say, in Sweden, bigger part of Germany and Baltics is expected to close this week on January 31. And this acquisition will strengthen Volvo CE's market position further, not at least then in the very important service business. Market forecast, similar picture, you can say, as truck. For North America, we are now guiding a flat market in relation to previous year. That is a 5 percentage point upgrade since the forecast in quarter 3. Same goes for Europe. Now we say 5% as midpoint of the market saw somewhat growth, and that is also an upgrade of 5 percentage points. China, as a matter of fact, same plus 5% as midpoint, 5% percentage growth. And for South America and Asia, flat, and that is no change in relation to what we said in conjunction with quarter 3. Book-to-bill Construction Equipment reached 118% in the quarter, driven by both North America and Europe. North American demand is broad-based from the digital development, data centers, energy sector, onshoring of manufacturing as well as the possibility for customers to write off 100% of the machine value of the first year of operation. In addition, refilling of inventory at dealers given the better outlook now and where also dealers would like to have the right type of capacity to deliver to the market. And the European demand is encouraging with the larger markets such as Germany, U.K., Sweden now gradually coming back as well as the fact that dealer inventories are clearly moved into customers' operations. And also the other markets are supportive with largely then positive book-to-bill. For Buses, the transition towards electric vehicles in city traffic continues in quarter 4. Just to mention one very important example. Volvo Buses secured an order from Vy Buss for 73 electric buses that will operate in the city of Boras, from April '27. The order comprises city and intercity buses, including articulated buses. And just as a small anecdote, they will also be produced in Boras. So even if you are talking about regional value chains, maybe that is a little bit of an expiration of having that full circularity in the same city, but it happens to be there, we are very proud. And book-to-bill, 91% in the quarter, 98% that is more relevant for the bus business, as you know, with rather long lead times. So that is a healthy and good book-to-bill. In the quarter, somewhat lower was on the back of somewhat lower demand in markets such as Brazil and Mexico. Penta, as I said, it's interesting to see the rather high -- or I should say not rather, but high activity level when it comes to the power generation and industrial segment. Launched its first gas engine, both natural and biogas for sure, to strengthen the lower emission power generation offer. This will further strengthen Penta's position to meet the global energy demand across many segments and not at least data centers and AI factories. And again, that I think is interesting now with more and more of the customers in this space wanted to have alternatives for lead time and volumes. And with the control system capabilities that you have today to really bring in more engines with the right type of capabilities is a very efficient way of doing it for lead times, for cost and for efficiency. And the Volvo Penta IPS Professional Platform, the biggest now pod for propulsion systems, the biggest IPS, which was launched in '25 and opted for commercial use, but also for big yachts has made strong inroads in the yacht segment and very, very well received with several OEM now placing orders. And Volvo Penta has a positive demand momentum. Book-to-bill reached 109% in the quarter and 102% 12-month rolling. Financial Services, finally, the portfolio continued to grow with a stable new retail financing. It doesn't look like it's growing here, but that is -- I mean it's growing, adjusted for currency. And the sound portfolio performance was maintained, although increased delinquencies and higher write-offs. But if you see where we are in the cycle, I should argue that we have a stable and good situation well under control here. And the penetration rate full year '25 came in on a solid level of 30%. And also what is positive to see is the focus that we have had also on insurance offer from VFS working together with other business areas and the group brands to enhance the total offer for our customers. So by that, I will leave the word to Mats Backman, our CFO, to present the financial figures. So please, Mats. Mats Backman: Thanks, Martin. So looking into the fourth quarter financials then, and we are starting off with the group net sales. So net sales decreased by 2% on a currency-adjusted basis compared to last year. Vehicle sales dropped by 4%, mainly due to lower volumes on trucks, while service sales increased by 4% currency adjusted with contribution from all business areas. European volumes increased, which led to an increased sales by 10% currency adjusted, driven mainly by Trucks and Construction Equipment. In North America, FX adjusted sales decreased by 8%, driven mainly by Trucks, while sales were higher for both Buses and Penta. In South America, net sales decreased by 18% currency adjusted compared to last year, and this was driven by lower truck volumes. In Asia, net sales decreased by 10% adjusted for currency, driven by Construction Equipment and the divestment of SDLG. Excluding SDLG sales increased with 21% in Asia. Other regions experienced slightly increased sales, mainly driven by Trucks and Buses. Overall, FX effect was negative with SEK 11 billion due to a general appreciation of the Swedish krona. The main driver was the U.S. dollar depreciating 13% versus the SEK. The adjusted operating income for the group was SEK 12.8 billion with an adjusted operating margin of 10.3%. In Q4, earnings were again supported by the positive development of service business, continued lower operational expenses and improvements from our joint venture business. The tariff cost increased during the fourth quarter with a net impact for the group of SEK 800 million, and we expect net impact from tariffs of about SEK 1 billion in the first quarter. In the fourth quarter, we continue to see higher underlying material costs in North and South America, and we had under-absorption costs in the U.S. manufacturing system on the back of lower demand levels. The net R&D capitalization effect in the quarter was positive at SEK 1.5 billion with a year-over-year effect of SEK 800 million. FX had a negative impact of SEK 2.1 billion in the quarter, driven by the strengthening of the SEK. In fourth quarter, cash flow amounted to SEK 19.3 billion. The cash flow contribution in the quarter was driven mainly by strong inventory management, partly hampered by continued high level of investments. Return on capital employed trend declined to 25.3% on a rolling 12-month basis. And the net financial position amounted to SEK 63 billion with support from the cash flow in the fourth quarter. Net sales for Group Trucks decreased by 3% currency adjusted, driven by lower volumes, partly offset by positive development of our service business. Adjusted operating income amounted to SEK 8.1 billion with an operating margin of 9.5%. The lower adjusted operating income and adjusted operating margin were mainly driven by lower volumes in North and South America, higher material and tariff costs, partly offset by lower operational expenses together with good development of the service business and joint venture performance. And currency had a negative impact of SEK 1 billion in the quarter. For Construction Equipment, net sales decreased 8% FX adjusted. Adjusted for FX and the SDLG divestment, net sales increased by 12% in the quarter. Adjusted operating income reached SEK 2.6 billion with an operating margin of 13.9% Product mix with less SDLG from the divestment in the third quarter and more heavy machines together with positive development of our service business were the main drivers behind the improved performance. In the quarter, the tariff continues to building up and had a significant impact on the financial performance. The volumes were lower versus same quarter last year, driven by the SDLG divestment and currency had a negative impact of SEK 700 million in the quarter. For Buses, FX-adjusted net sales increased significantly by 26%, driven by higher deliveries on both buses and services. Buses delivered another strong quarter with adjusted operating income of SEK 683 million and 9% in margin. The result was supported by higher volumes with continued good price realization together with service business performance. In the fourth quarter, the tariff costs were building up and had a negative impact on the financial performance and currency had a negative impact of SEK 113 million in the quarter. Penta net sales increased significantly by 16% adjusted for currency, which was driven by more industrial engines and the service business. Adjusted operating income amounted to SEK 608 million with an operating margin of 11.9%. This was again on the back of strong volume development for both engines and services despite unfavorable market product mix and higher freight costs. Currency had a significant negative impact of SEK 337 million in the quarter. And then looking into Financial Services. The credit portfolio adjusted for currency increased to SEK 256 billion with a rolling 12-month return on equity of 10.4%. Portfolio performance continued to be good with delinquencies and write-offs under control. The adjusted operating income amounted to SEK 889 million, impacted by increased credit provisions, but supported by the portfolio growth. Currency had a negative impact of SEK 84 million compared to same quarter last year. And then finally, looking into a summary of our forward-looking guidances in the quarter and starting with FX. Based on the currency rates and 2025, we expect a negative first quarter effect from transaction and translation of about SEK 2 billion. We expect R&D net capitalization at approximately SEK 3 billion for the full year 2026 with a year-over-year negative effect of about SEK 1 billion. And finally, the tax rate that we estimate to 24% for the full year 2026. So with that, I'm leaving for Martin to summarize 2025. Martin Lundstedt: Thank you, Mats, for that. So let's go to that. We are closing also the full year 2025. Just a few comments on that. We can summarize the year with close to SEK 480 billion sales with vehicle sales declining 5% FX adjusted on -- or vehicles and machine sales declining 5% FX adjusted on 8% less truck and 8% less CE volumes with -- and on top of that, which I think is important with also several production adjustments throughout the year back and forward and across regions. Another important piece of resilience is services that did grow 2% FX adjusted. And as I said, our own activities, but also that customers are continuing to utilize the equipment. Gross income margin was at 25.3% despite volume decline, certain price pressure, even if commercial discipline was good and tariff headwind. And adjusted operating income amounted to SEK 51 billion with a margin of 10.7%. Cash flow at SEK 22 billion for the year and the return then on capital employed came in, as I said, on 25.3%. And the Board of Directors then proposes an ordinary dividend of SEK 8.5 and an extraordinary dividend of SEK 4.5 for approval at the Annual General Meeting in April later this year. So by that, we end the presentation, Johan, and I think you will lead us through the Q&A session. Johan Bartler: Right. Thank you, Martin. Very well. We will do, as always, please concentrate on your most important question. And we have a number of guys on the telephone line, but we'll start in the room, and we'll start with Bjorn from Danske Bank. Björn Enarson: I don't normally say this, but congratulations, solid execution in the quarter. It's about time to say. Yes. On North America, again, you're talking about a replacement-driven market and also a minor EPA-driven prebuy. But I mean, isn't this really about, I mean, increased visibility? I mean, tariff situation is better visibility, EPA, much more better visibility than previously, and we have record high truck age in North America. I mean gut feeling isn't it, this could be a really good year in North America. And with that backdrop, maybe a comment on what to see about the under-absorption of fixed cost in North America throughout the year. Martin Lundstedt: Yes. If we start with your comment and analysis regarding North America, I think it's absolutely correct. If we can continue to see that what has been put on the table now in terms of tariffs from different regions, flows, et cetera. And on top of that, the EPA '27 clarification uncertainty, I think that is very, very important for our customers. The cautious stance among customer has rightly so been what will happen, how does it look like, et cetera. And we see that also a little bit in the volatility in the order intake because, of course, some of the bigger fleets, depending on where they are sourcing, et cetera and said, okay, we place orders, but we will also have a discussion later on, so we give -- so I fully agree. I think this is very, very important if that will continue with a certain level of stability on top of it with average fleet age, not at least that we haven't had an on-road, almost freight recession for a couple of years now. There is fundamentals underlying that is supporting that. Then it's more the time phasing to your point. And as we said, if we look at the order intake during '25, we had more of a hammock situation in quarter 2, quarter 3 that was reflected in quarter 4. We said we will be brutally disciplined on our balance in inventory because we know also in North America, if you don't have that, there is an endless discussion about the inventory. I think we managed well. So we had an under-absorption already in quarter 4. And as we guided for, quarter 1 is still there because that is more reflected later part of quarter 3, beginning of quarter 4. But then we see already now a more positive situation for later part of -- really late part of quarter 1 and beginning into quarter 2. So there we start to see that it's more coming the effects that you're alluding to, Bjorn. And if anything about the under-absorption, I can -- I think it's okay, Mats, give you a guidance that if anything, a little bit higher as we expect right now under-absorption in quarter 1, even if -- I think we managed it well anyhow in North America for quarter 4. But if anything, to be a little bit more granular. But again, right thing to do, muddle through now, keep the eyes on the ball, do what is right because the market will come back in North America. And then you should be on the right level when it comes to capacity and inventory. Mats Backman: No, I think -- and it's like you're saying, when it comes to under-absorption, the effect -- we had an effect in the fourth quarter, and that was visible on the slide I had on the operating income. And given what Martin talked about with the kind of stop weeks in the first quarter. And then, I mean still being dependent on the order intake earlier in the fourth quarter, and then we see a gradual pickup from the other, but still under-absorption in the first quarter, yes. Johan Bartler: We'll take one more question in the room from Agnieszka from Nordea. Agnieszka Vilela: I have a question to Mats. Could you please update us on your CapEx plans for 2026 and also going forward? And maybe if you could provide also the status update for your Mexican factory? And do you still plan to have an in-house battery production or how you feel about these plans? Mats Backman: I can start with kind of the capital expenditures. And if you take a couple of years view on the CapEx, we are on a higher level, and you saw that for 2025 and especially driven then by the investments we are doing in Mexico. And in terms of timing, we will still have some of the investments in Mexico also in 2026, meaning that we will still be on an elevated level when it comes to CapEx, but I would say slightly lower comparing to what we have seen in 2025, and it's starting to normalize then, but still somewhat higher than driven by the bigger projects that is ongoing there. Martin Lundstedt: But I think also, I mean on that note, we have also been leaning into a number of bets now when it comes to the retail business, which I think is super good and interesting. Volvo Trucks did it in Australia. We have done a number of smaller things and then now Swecon, for example, of course, that is also -- but what I like about that is also really continue to drive strong resilience for us, service business. But also competitiveness because at the end of the day, our business to have the total offer close to your hands in a more and more world of hypercompetition, I think, will be crucial and critical. And then battery production, I think both when it comes to technology, time phasing and maybe what are the right levels of scale, a lot of learnings have been done. So if I may a little bit take -- maybe you don't start to build a 72 whole golf course directly, maybe start with 9, even a pay and play, et cetera, et cetera, and then you move along. And a little bit same here with technology development, what is the reasonable scale, et cetera. So 2 things. We will need that for different reasons. I mean it will be -- I mean the battery [ act ] and other things and electrification will come and will be there as a very important part for sure, for many different reasons, not at least for competitiveness, by the way. But it will be a time phasing, both when it comes to when will we start and how will we ramp it up because how you are thinking about cell and module and pack manufacturing today is rather different than only, let's say, 5, 7 years ago, I should argue. So we have learned a lot being close to our partners here. Johan Bartler: Good. I think with that, we move on to the telephone line, and we have Klas Bergelind from Citibank. Can you hear us, Klas? No one on the line there. Then we continue in the room. Hampus from Handelsbanken. Hampus Engellau: Two questions for me. When do you think you will present the EPA 2027 truck given that that's a big decision-making on fleets? And is it the reason for you guys to maybe present it earlier this year with price increases to see how tough we look for the fleets? Second question is related to tariffs. If you could maybe model a bit for the full year given the discount system we're seeing in 232? Mats Backman: I can maybe start with the tariffs then. I mean like we said, about SEK 800 million in the net effect in the fourth quarter. And we are -- what we foresee is about SEK 1 billion in net effect in the first quarter. And then we have the different business areas are kind of going in different directions now then because for -- if you're looking at Buses, for instance, then you have a tariff kicking in with Section 232 then with the business we have going from Canada into U.S. So there, we have an increase then that will kind of gradually -- it will gradually increase. And the same goes to some extent for Construction Equipment as well then with -- I mean the Section 232 is kind of helping the Trucks, but it's not helping the Construction Equipment. When it comes to Trucks, I mean, we are still building up, but what we foresee is kind of a decrease then going in maybe to the second quarter sequentially. But to make any guesses beyond the first quarter in this environment, I find pretty tough then. But with what we know right now, it's the SEK 1 billion in net effect in the first quarter. Martin Lundstedt: But I mean how the play is really there. I mean of course, now -- and coming back to Bjorn's question also about stabilization, I mean, if that is continuing to be stable, as quarters go along, I mean it's an absolute situation with tariffs and it's a relative situation with tariffs, obviously. And eventually, it needs to be compensated, obviously. And there, as we see it on the Trucks side, it is an opportunity basically. Then you can say also that we had already before this in pipeline plans for CE, both when it comes to wheel loaders and excavators for production in the United States. So that is ongoing so we saw basically. And then when it comes to the presentation of -- yes, we will do that, obviously, because it's coming in 1st of January. And it will be -- yes, we will present it during the year here. So we will have a good visibility. I should argue that it's not -- I mean, given now the clarity of this and not at least when it comes to the life length or the life cycle demands, and you can say not relaxation, but clarity on that. I should argue that it's a more reasonable step for the customers also. So that's the reason why we don't judge, so to speak, the prebuys to be significant in relation to previous events when you have had a much bigger step basically. Johan Bartler: Good. Now it seems that we -- still no connection with Citi, all right, then we continue with the DNB Carnegie, Mattias? Mattias Holmberg: I'm interested to hear more about the U.S., which we've already talked a lot about. But given your sort of relative advantage versus some peers in the U.S. market, I would have expected to -- and also adding that you have a very strong lineup now with models, both for Mack and Volvo. I would have expected to see a stronger market share on the order intake in Q4, in particular in light of the big order number we saw for December. So perhaps could you elaborate on, is there anything in particular going on in that quarter competitive perspective that sort of explains the lower relative market share here? Martin Lundstedt: Yes. I think -- I mean if you look at the order intake, I fully agree. I mean December, in particular, was very strong for the industry. I think it was north of 40,000, 42,000 or something like that. And I mean I think it's exactly related without knowing, but it is also a way of securing deals, et cetera, because as we go along, the market will be what the market will be, where are you producing, what do you need to do when it comes to your price realization, et cetera. So -- and so I think it's a little bit distorted by almost like preordering, to be frank. We feel rather good with what we have in order intake in quarter 4 because I think we had 11,500, give and take now, Mattias. And if you think about it, that is the incoming then for later part of quarter 1 and quarter 2. And that is basically supporting a level of like 200,000. If we are talking about stable or somewhat uptick in market share, that is supporting a level of 260,000 to 265,000. And then we are also saying that we are thinking about a gradual recovery. So if we are not completely out of bounds when it comes to how the market will come or develop during the year, I think the order intake that we have had is in balance with what we see. And again, it has been super important for us to have demand, supply inventories in control because if you are starting to get too much of disconnection there, it's also dangerous. But I agree to what you say. I think it's a little bit of, yes, possible preordering. Johan Bartler: Good. We continue in the room, and we have Karl from ABG. Karl Bokvist: On Europe, which seems to be improving a bit. Is it -- you talked about it a little bit during the presentation, but is it due to any kind of asymmetrical country mix or because you actually see the European truck market genuinely improving here? Martin Lundstedt: Very good question. No, I think it's rather broad-based, to be frank. And so I mean we have, of course, a lot of contracts with our European organization that's rather broad-based. It is, so to speak -- and we did see it already. I mean we have alluded to it a little bit already in quarter 3 reporting. We did see it, volumes came in higher in deliveries and in orders for quarter 4. I should argue that it continues now in the beginning of the year. We don't see -- I got that question from -- I get that question from time to time, I mean how much is defense and energy and infrastructure and playing in. And I mean the investment programs, not too much yet, which I think is also another support for Europe for the years to come here. But this is more based on, to your point, Karl, I mean the underlying market as we know it, that a little bit the same dynamic that we are somewhere expecting also for North America, but a little bit earlier here. And I mean we are guiding for 305,000. And I mean it's a rather good market, I mean to be frank, so... Johan Bartler: Yes. Right. Good. There seems to be some disconnection with the telephone lines. So we are free to continue in the room if anyone want to continue. Karl? Martin Lundstedt: Otherwise, they can text it to you. Johan Bartler: Yes, they can. Martin Lundstedt: They can do that. Can send an SMS to you. Sorry, Karl. Karl Bokvist: Yes. No worries. Meanwhile, I'll switch to Buses. I'm not sure about the competitive landscape in the textile city of Boras. But when we think about the electrical transition on Buses, which seems to have gotten going a bit faster than Trucks, how do you think about the competitiveness there? How you position yourself in terms of performance, price points compared to, let's say, non-European competitors, for example? Martin Lundstedt: No. I mean we see that in quite many of the deals around the globe, not only in Europe, not even only in Boras, by the way, but around the globe that in many deals, we are meeting more or less 100% Asian competition, Chinese primarily competition in the tenders and the bigger deals. And as Volvo participating, there are, of course, I mean differences here. But not at least when it comes to fully electric offerings, we have been early out. I think what is promising to see, obviously, we are working, of course, a lot with our competitiveness when it comes to, I mean cost and the right type of execution and everything like that. But even more important is that I feel that -- and that is encouraging for other electrification patterns that we see is that, I mean the city side of buses have been doing this for quite some time now and are more and more mature to really take the full equation into account. The famous TCO, the famous life cycle equation, both when it comes to revenues and cost and uptime, et cetera. And I think that is playing in our direction, not saying that the others are not doing a good job. We have the biggest respect for that. But I have to say that if I look back on '25 on Buses, and maybe when I stood here 1 year ago, I should say that I'm more optimistic today than I was 1 year ago. So I think we have found our place. We know how to -- where we can, so to speak, be successful and where we cannot be. In some of the deals where it's a pure CapEx upfront play, we are not normally successful in that because we have another business model when it comes to uptime, fuel efficiency, safety, not at least and cybersecurity. Johan Bartler: There is a question from [ Jefferies ], texting in here. So the question is on -- first, on the group functions and other, what are moving the lower cost base there? Mats Backman: I would say generally 2 things, I mean given the big picture and the improvements we have seen. So first of all, as you have seen overall on the operating expenses, we have lower costs, and that is going for the group functions, especially. And secondly, as you also probably know, we have some businesses, it's group functions and other. And we have a bus business called Nova Buses that you probably recall, and that has been a turnaround if you're looking at this year where they have done really, really good, meaning that we have been going from loss-making into profit throughout the year. That is also contributing to the group functions and other. So those are the 2 kind of main items looking at the delta on that one. Johan Bartler: Right. And also from [ Jefferies ], they wonder whether the Mexican plant will have any drag on EBIT margin in 2026, given that we are sort of ramping during the year. Martin Lundstedt: No, I mean we have material. Mats Backman: So it's kind of a slow, gradual ramping, so not material. Martin Lundstedt: And we think that will come in handy, by the way, also talking about the recovery because we are anticipating then a gradual ramp-up, rather small volumes to trim in Mexico during the later or you can say, second half. And so... Johan Bartler: Then we will move on with -- from our -- let's see here, one question -- we need to be quicker. Bernstein -- wonders. And we have Harry Martin from Bernstein. He wonders, given the EPA '27, et cetera, and the guidance for North America, how do you think about pricing? Will price on trucks still be tight in 2026? Or will that sort of be possible to push price to some extent in '26? Martin Lundstedt: I mean -- and you can add to this. I think first and foremost, and that you can see also, I mean in top line in relation to volume, et cetera, I think the commercial discipline in the group, but also part in the market as we can judge it has been better than, if I may say, so normal in our industry, which I think is a good thing. I mean better flexibility, generally speaking, in the industrial systems, higher share of service, et cetera. So pricing better. Then there's no secret, obviously, that, I mean supply/demand and normally, when we see a recovery, when it really takes off and you're gaining momentum, there can be a squeeze. And then, of course, in that part of the cycle, there are always opportunities. When will that happen during this recovery, given that we say that we are rather -- we are really anticipating a recovery, but still a gradual one during '26. So let's see. But the dynamic will be there when that starts to happen, obviously. I don't know, will you say something more? Mats Backman: No, well said. Martin Lundstedt: Thank you, Mats. Johan Bartler: Next question is coming from London from Daniela at Goldman Sachs. He wonders some of your peers are talking about autonomous commercial start in 2027. And where are you guys on that? Martin Lundstedt: Yes. I mean as I think it's familiar, we are working -- I mean when it comes to autonomous commercial start, I think in that case, Daniela is meaning, I mean, the hub-to-hub public sort of on-road segment in U.S., right? We are already in commercial operations for confined areas, et cetera. And as we speak now, we are running fully autonomous lanes in U.S. together with our key partners there. We have built up also terminals in order to host this and make it possible. Still, it is with safety drivers, but now we are getting really close to this, maturing the whole system. So this is without being too exact, but this is not too far away. And even to say to Daniela, that I think you are in the right neighborhood, which I think is a significant opportunity for the industry on that happening. Because if you think about it with automation and robotization, as an old production engineer or it was a long time ago, not old, but I remember that during the '80s, in particular, in the '90s, it was an over automization of the factories, and an over-believe in things. And then you really found, so to speak, the right type of balance on where should you have robots, where should you have CNC machines, where should you have different type of place and pick and smart, so to speak, control towers, et cetera. And where should you have a human interaction. I think for the hub-to-hub concept, it's a very good way of looking at the same journey that if you can really do it for hub to hub with terminals along the road, you will take out a rather big part of the equation that are bottlenecking, so to speak, logistics today. And that's the reason why I'm very -- I mean very optimistic about that development. Johan Bartler: There was also a follow-up from Daniela regarding the fleet mix. We spoke about having more fleets into the mix in 2025. Do we see that, that continues also into 2026? Martin Lundstedt: Do you want to say something? Mats Backman: No. You can start. Martin Lundstedt: No. I mean if you look at where we are in the cycle, I should always argue that when you're getting -- start with Europe, when you're getting a little bit more of a broad-based recovery, then all actors are coming into the market. Because obviously, if you are -- I should say, in that respect, I mean a smaller midsized fleet, you are even more cautious about, okay, how should I think about my replacement, et cetera. So I should argue if we continue to see that more broad-based recovery that we talked about in [indiscernible], the mix will be more evenly distributed and not leaning because it's more in the down cycle where we normally have an overrepresentation of fleets. Mats Backman: And maybe to add, and I know that Daniela is normally on top of the kind of the revenues per truck as well and looking at the kind of the development over time. And I think if you're looking at specifically at the fourth quarter, it's also a question of mix if you are looking at the revenue per truck now with a higher share of LCVs, light commercial vehicles as well as a geographical mix with less North America. So I think that is also important to say. Johan Bartler: Then Klas Bergelind from Citi, who was first on the line here, but he has a question here. He asks, in Q1 2026, will you get any benefits from the Section 232 MSRP credit? Mats Backman: No. We see it probably gradually into the second quarter rather than the first quarter. Johan Bartler: Right. And also in Europe, you talked about better demand in U.K., Sweden and Germany in Construction Equipment. But how about improving demand for Trucks, at a country level, what countries are you seeing any improvements? Martin Lundstedt: No, Mats -- I mean -- and partly, we got that question here. I mean rather broad-based and also certain signs that more of Central Europe is moving that has been a little bit slow, not at least Germany, et cetera. So rather broad-based, which I think is good. And it's also related to where we are in the replacement cycle, et cetera. Johan Bartler: Right. I think we are ready to close unless there are any further -- Mattias? Mattias Holmberg: Maybe a bit premature, but you alluded to already have thought about adding capacity for construction equipment in the U.S. before the tariffs. Could you give us an indication of if this could sort of fit within the current CapEx program for construction equipment or sort of the potential timing? Are we talking a year, 5 years and potential magnitude of investment? Martin Lundstedt: Great question. I mean you can say that it's in the current because, I mean one of the advantages we have is that we have rather big from [ SA ] or real estate facilities in Shippensburg that came along with Ingersoll Rand acquisition back in the days. And then we have reshuffled and the industrial footprint, but we see clearly that we need that for wheel loaders and excavators to start with. And thereby, we have a good starting point because they are made for that type of equipment, and we can utilize, so to speak, the real estate. And we were there actually during the fall, looking at that. So I think it's well incorporated, and we will start at the -- during the later part of this year for wheel loaders and then gradually move in, so to speak. So I think that is an advantage that we have, that we have, so to speak, rather good facilities, both for powertrain and on the Trucks side and also then on the Construction Equipment side that, if anything, has been underutilized from a square feet in that case standpoint. Johan Bartler: I'll take one final one from UBS. So we made sure that we covered all the lines here. We guided for SEK 1 billion headwind from tariffs at the time of Q3 for Q4. We came at SEK 800 million. What was the difference versus what we saw in Q3? Mats Backman: We said about SEK 1 billion. So I don't think it's not a huge difference on that one. But I mean to a certain extent, timing. I mean it's difficult to see if you see the accounting effects when you are building up inventories and having a positive impact from that. So I would say more kind of a timing. Johan Bartler: Timing through the balance. Martin Lundstedt: Yes. And you can always say exactly, I mean exactly where do you have all the inventories when you start and now we are getting more and more a steady-state situation. On the other hand, we will work on the other side of the net effect also with commercial conditions as well. Mats Backman: Absolutely. Right. Johan Bartler: We covered all the banks. We're on time. So thank you for coming. We'll see you in a quarter. Martin Lundstedt: Thanks a lot, everyone. Mats Backman: Thank you.