Ladies and gentlemen, welcome to our analyst conference call, Q2 2021. The overall economic situation, if you look in the daily press, is still in a certain crisis mode. We can read of Corona, logistics capacities, shortages of materials, semiconductors, steel, et cetera. In view of all that, in view of that overall economic situation, we had a very good Q2 2021 as Norma Group. Sales were up by 47%, that we reached a sales level of EUR 281.7 million. This also means that we are only slightly below the pre-crisis level of Q2 2019. We generated an adjusted EBITDA out of these nearly EUR 282 million of 13.6%, which is EUR 38 million. In terms of EBIT, we generate an EBIT margin of 12.8%, meaning EUR 36 million of EBIT. We had also a strong cash situation. We generated a strong net operating cash flow, EUR 36.8 million, and we also improved our balance sheet further, with an equity ratio of 42.7%. Net debt going to EUR 352 million and leverage of 2.0 instead of 3.4 end of 2020. We had our annual general meeting in May this year, all agenda items were approved by the annual general meeting, including a dividend of EUR 0.70 per share. We confirm on our guidance for the fiscal year 2021. If you look on the different topics of Norma Group, top line development, Q2 2021, which is on page three of our presentation. We see on that page three that we generated sales of EUR 568 million in H1 2021. This is a change of 27.6% and organically of 33%. We all know we have very low comps in 2020 because of the Corona situation, so maybe the comps are not so meaningful as it was in the last years. A good sales development on pre-crisis level. The organic growth, in terms of EJT and standard products increases, were overall very good. We had EJT sales with very good recovery of 88.7% in Q2 2021. Overall, for the first half year of 43%. For the standard joining technology products, we also showed a very good recovery, 23.3% in Q2, and overall, slightly above 20% in H1 2021. We had some currency effects, negative translation effects of around EUR 11.3 million or 5.9%. If you look on the absolute figures in terms of growth, we organically grew EUR 147 million in the first half year. You see also the regional split on that chart. We had 45% of our sales in EMEA, 40% in Americas, and 15% in APAC. The regional split we see on the next page, on page four, where we show the segment reporting in Q2 and H1 on a regional level. We can see that EMEA generated sales in Q2 of EUR 123 million, which is an organic growth. You see that on the right-hand side of 79%, which is driven by EJT and also our standardized joining technology products with a very strong growth. As mentioned, this growth is mathematically impacted by the low comps, COVID-19 related comps in 2020. We have quite high increases versus Q2 2020 because Q2 2020 was the, let's say, high season of Corona in 2020. Very high increases versus that crisis quarter in 2020, 79.4% in EMEA. Americas also grew nicely, based on EJT and standard joining technology. EJT sales were more than doubled organically in the second quarter. The standard joining technology had a strong double-digit organic growth of 21.2%. Interesting here is also the Water Management business. Water Management grew 12.9% in the second quarter and overall slightly above 20% in the first half year 2021. APAC growth quarter two, 16%. First half year, around 30%. Here we see that the COVID situation in APAC normalized earlier than in the other regions, which means that Q2 2020 was on a more normal level and not so in a critical phase like in other regions. In so far, the growth in APAC around 30% for the first half year. Growth of 17.9% in Q2 for EJT business, 40.5% for the full half year and standardized joining technology with a double-digit growth, 12.4% in Q2. That we are overall on a quite good level in relation to last year and even in relation to 2019. Looking on the margin situation on page five. Q2 2021, EBIT and EBITA margin development. We had an EBITA of 13.6% in Q2 this year and EBIT of 12.8%. The positive impacts came from the economic recovery and a strict cost control management that we had, which results in a strong Q2 2021 margin, which is almost on the level as Q1 2021 and only 60 basis points lower than the second quarter of 2019. In so far, this also leads to our confirmation of the guidance for fiscal year 2021, despite we have some headwinds in our volatile economic situation. With that, I hand over to Annette, our CFO. Thank you, Michael. Yes, let's have a bit closer look to the ratios, in particular of the P&L. If we concentrate here firstly on our gross profit, we can see that the gross profit ratio increased by 100 basis points in H1 due to a strict cost discipline and the successful implementation of our Get on Track measures. Material cost ratio increased technically a little bit. This is mostly due to the fact that we are running the P&L by nature, which is a bit special. Therefore, for me, at the end, gross profit margin is the real measure where we can follow up that our measures are, at the end, very active and successful. Personnel expenses, there we can see that we significantly improved in H1, to 25.8%, in Q2 to 25.7%. The reason for that is majorly that last year in Q2, we booked the restructuring reserve, a major part of our Get on Track program of the downsizing and closure of two plants. There we booked last year, a provision of roughly EUR 20 million. That is the major reason for the significant improvement here. In terms of OPEX. OPEX ratio improved in Q2. Here we always want to point out in Q2, we booked last year again Get on Track costs also related to these different efficiency programs of EUR 1.6 million. Therefore, we already have here a significant improvement. OPEX in the first half of the year, is stable. That is majorly due to the higher number of temp employees or workers, which we have here. That is mostly due to the reason that our business is starting again and that we take first of all, in order to get back to normal and to restart temporary people on board, in particular in APAC. That is the major reason here. Let's have a look to our adjusted EBITA margin. There you can see that in Q2, we achieved there 13.6% and in H1, 13.7%, which is under the headwinds in the market, I think a very remarkable result. We stay with our guidance. I think Michael already pointed that out. We feel comfortable by that and are very positive that we might reach that and will reach that. Having a look to our earnings per share, our operational adjustments. The major message is, as I think already beginning of last year, that on EBITDA level we have no adjustments anymore. Our Get on Track program, we don't adjust in terms of costs. Our adjustments are mostly driven by prior M&A activities. Classical things like depreciation, amortization, and the effective tax out of that. Having said that, we have a reported EPS of EUR 1.29, adjustments of EUR 0.35 and an adjusted EPS of EUR 1.54. EPS development in Q2 and H1, we could achieve in Q2 an adjusted EPS of EUR 0.78. In H1, an adjusted EPS of EUR 1.54 and the respective net income of EUR 24.9 million in Q2 and of EUR 49.1 million in H1. Looking to the reported EPS, we have an EPS in Q2 of EUR 0.66 and in H1 of EUR 1.29, and this corresponds with the net incomes of EUR 20.9 million in Q2 and EUR 41.1 million in H1. Our net debt and equity ratio show a very strong and solid development and improvement. Majorly we get now rid of the, I always call it the very bad Q3 of 2020, where COVID had its peak. Therefore, looking to the mix, we could deduct our net debt a bit. Our cash increased a little bit, but the reason for that is for sure and only the financing of this remarkable growth, and we still have a very solid cash position of EUR 169 million. In terms of supply chain financing, we kept that nearly stable. We had, by the end of last year, EUR 52.3 million there. We increased that by EUR 1.2 million for June 30th in 2021. Looking to the equity ratio, we could improve that to a remarkable 42.7%, and we strongly improved our leverage to 2.0. There you can see that considering the last 12 months EBITDA, we really got now back to, I would say, a very comfortable and good leverage ratio there. Considering our cash flow development, for sure, our higher EBITDA is due to economic recovery and a strict cost control. In terms of trade working capital outflow, this minimized for sure because we have to finance higher accounts receivable. This is not due to overdue. That is really the growing business of the recent two months. I think that is all like it should be when a business grows. We increased our investment activities back to old ratios, roughly 5%. This is reflecting also the higher business activities and the needs in order to support that. Coming to the Norma Value Added, which is Norma Group's long-term strategic target. We count there or determine there the annual value creation of Norma. In Q2, we could achieve there an EUR 8.6 million, and for H1, we could achieve EUR 17.9 million. Yeah, having said that, and with the closer look to the balance sheet ratios, Michael, I give over to you again for Get on Track. Yeah. Thanks, Annette. We put in a slide here to also show our Get on Track activities. The most important message here is that we are on Track with our Get on Track program. We are well underway with major savings in 2021. We achieved savings so far accumulated of EUR 10.8 million. We have, until end of first half year 2021, minor costs for implementing these measures of EUR 1.4 million, that we also expect that we will reach our target for the Get on Track program in 2021 and also the next couple of years. Get on Track program well underway. If I summarize the situation and the figures so far, Q2 and with the Q2 also H1 for Norma Group are strong. We had good top-line development, a good margin development, a good level of cash flow, and a further reduced leverage, and so far, H1 is a good basis for reaching our targets for the full year 2021. We still have a very volatile situation, as you all know. I mentioned it in the beginning. In the whole industry, there is a couple of headwinds. Nevertheless, we stick to our company guidance for 2021, which means we will have organic sales growth for 2021 full year, low double-digit. We will see an adjusted EBITA margin of more than 13% and respectively an adjusted EBIT margin of more than 12%. Net operating cash flow, EUR 110 million plus, and a value creation which we measure as Norma Value Added between EUR 10 million and EUR 25 million. With that, I would like to hand over to you, and of course, we are very happy to go in Q&As together with you. Thanks a lot. Thank you. Thank you. And we will begin our question and answer session. If you have a question for our speaker, please dial zero one on your telephone keypad now to enter the queue. Once your name has been announced, you can ask your question. If you find your question has been answered before it is your turn to speak, you can dial zero two to cancel your question. If you are using speaker equipment today, please lift the handset before making your selection. One moment, please, for our first question. The first question is by Ingo Schachel of Commerzbank. The line's open now, sir. Yes, thanks very much. My first question would be on your Water Management growth rates. Obviously, again, a surprisingly strong quarter. Just curious whether you already have any, let's say, indications based on July trading or your internal budget that growth in the second half is necessarily weaker or could we maybe even hope to see another, let's say, round of double-digit growth even in the second half? Ingo, thank you very much for that question. I think Water Management develops excellently based on the market developments and based on the need for these products. We had that strong growth in the first half year. I would be a little bit cautious in taking the same growth rates for the second half year because we also have to keep in mind for the Water Management, if people are at home because they can't go to work. They have the chance to go into the garden and implement an irrigation system, implement drainage systems, et cetera. Maybe if the structure changes, people can travel again, go to work. That also changes a little bit in terms of having time to implement all these products. I would be a little bit cautious in taking the same growth rates in the second half year. Overall, Water Management will develop very well in 2021. Okay, thanks. On the adjusted material cost ratio, which I think you said is a good indicator also on whether Get on Track is delivering the desired results. Can you also tell us here what you expect in the second half? Clearly Get on Track should be favorable, you probably also have a few adverse effects such as lower work in progress and finished goods and potentially also impacted by some of the force majeure and supply bottlenecks for certain steel grades and specialty steels. Just wondering whether you can keep the gross margin at this very good level or near this very good level in the second half. Maybe I start with the material cost ratio and Michael, you maybe comment a bit on the flood and so on. In terms of material cost ratio, all in all, I think we did a healthy step up in terms of having an increase in finished goods and in work in process. At the end, we were lastly on a very low level. We needed there a bit to put that on shelf. That's pretty normal. The most important for us is that this is always dependent on growth. For sure, we observe the material cost in total really with a lot of respect. So far, I think we did a very good job in order to balance that excellently. We could countermeasure this rapid increase in material prices pretty well, even though knowing that this material price spiral, I call it, nobody knows when this is stopping. Therefore, we observe that, we go with every countermeasure, but mostly this technically here is now our P&L by nature. With a P&L by sales, you would see something different, therefore, gross profit is showing for me more the reality. In terms of the other topics that you mentioned, Ingo, we have a, let's say, diverse set of topics for the second half year. First of all, we are very happy that we started Get on Track early and intensively, this runs very well. This is a positive impact. On the other side, of course, we are facing a couple of adverse aspects and headwinds. If it's Corona, we all don't know how Corona situation will go on. We have steel shortages and higher steel prices. We have resin prices and shortages of resins. Partly, we have some other topics in terms of higher trade costs, which is going through the press and through the newspapers. As of now, this is a volatile situation. We have some force majeure topics where steel producers located in the western part of Germany, where we have these terrible floodings, mentioned force majeure. Part of that is in being resolved, so we have partly a second supplier. They are recovering. This is going on. Nevertheless, we have a whole set of pluses and minuses for the second half year. Overall, we are very optimistic that we will keep our margin and will reach our 13%+ overall for 2021. Okay, thanks for the very clear answer. Thank you. The next question is by Nicolai Kempf of Deutsche Bank. Yeah, hi. Nicolai Kempf here from Deutsche Bank. Thanks for taking my question. My question would also be on the guidance. Can you just remind us on the headwinds in the second half of the year? You mentioned the raw materials, supply chain, the semiconductors. Would you think they're going to improve versus the first half, or would you think they will become incrementally more serious in the second half of the year? Nicolai, of course, we are happy to take your question, and thanks for that. If I would have a crystal ball, I could answer your question more detailed. Our expectation is, and it is our expectation that the second half year will be impacted by these topics. We will see material shortages, we will see some logistic stuff, in so far it's important, as Annette pointed out, to have all these countermeasures in place, and we figured part of that, most of that into our guidance and into our expectation. We will see these aspects in the second half year, and if one takes, for example, the 100th slot of today, now we expect, at least in the press and in the newspapers, that the semiconductor shortage might take until Q1 2022. I think we have to adapt to that situation and have to take it into our measures and activities in the second half year and maybe probably in 2022. At the end, I would say, the positive thing out of that is that the OEMs give the semiconductors, they have no direct impact on us, but they give the priority to the premium cars, which means there is a higher content and higher profit margin in the car for the OEMs, and fortunately for us in general as well. That is a bit, I would say, buffering these impacts. Yeah, I understand. I think obviously, the mix towards the hybrid vehicles should also help you because there's a higher content per vehicle. Let me just rephrase the question. What aspects are going to improve maybe in the second half? Is it a bit higher volume? Is it the Get on Track program? What measures do you have to maybe keep this current level of profitability? That's our internal measures, as you mentioned, Nicolai, the Get on Track program, which will generate on the second half year the expected savings. Okay. As the finance guy is always coming with the, I would say, with the lower ends of it. I think one headwind we still have, and we will keep, that is what we expect is COVID. COVID has not left us. We got, I think, masters in managing that. However, if we see COVID is running around the globe with the autumn bad weather months. This we see also nowadays. Also nowadays, I think it's very much intact in the APAC region. We achieve all these high volumes, but always with higher costs. This type of cost accompany us a little bit. That is, I think, the truth we have to take into account, and this is reflected also in our guidance as well. Yeah, very clear. Thank you. The next question is by Richard Schramm of HSBC. Good afternoon. I'm sorry, but I would like to come back to this, not with the development in H2, but just what happened in Q2. I remember that you said that in Q1, you were more or less unaffected by these production reductions of the automotive OEMs, as this obviously did not hit you at that time. We all know that the situation since then has clearly deteriorated and more and more OEMs extend their holiday here or make interruptions temporary-wise for their production. How was the development for Q2 in your automotive-related business, and what are the current calls you get from the automotive volume-wise? Are they already in a downtrend versus the previous quarter, or are they still holding up here? Thanks. Thanks, Richard. We stick to our sales guidance 2021, which is a double-digit growth. We will also see in Q3 and Q4 good sales. If we see the same growth rates, that depends a little bit, and also the comps are changing. We will see that we will reach our guidance, to get to these double-digit growth organically in 2021. There might be the one or other effect, but, I would like to repeat what Annette mentioned. Our OEMs are also shifting their production to let's say their premium segment, et cetera. It's also a question of portfolio in the OEMs and within the OEMs in platforms. We see a good development in the second half of 2021, so that we will stick to our double-digit growth in this year. On top, I think the tailwind comes for us also that, for sure, the Water Management gave us a very good boost and the industry business as well. I think that is a bit our chance of business mix to level that a bit better than maybe others. We have heard that this shift towards the premium cars is positive for you. On the other end, what we heard from Audi, for example, is that, of course, they also are now affected even with their premium models, and if there are no chips, then there are no chips, and they cannot even manufacture then the S-Class here. We see also that this effect is biting also into the whole product ranges across all car classes. You think you have built up enough buffer in your guidance that you can face even further deterioration of the situation? Yeah. Exactly. We have headwinds as every participant in the industry, from shortages in steel, indirectly in semiconductors. We saw that development beginning of the year, and maybe we have included buffers, and insofar we were cautious in our guidance. So far, we stick to our guidance that we will reach our guidance 2021, double-digit growth this year. Okay. Thank you very much. Thank you. The next question is by Sanjay Bhagwani of Bank of America. Hi. Thank you very much for taking my question as well. This is Sanjay Bhagwani from Bank of America. My question is more of a follow-up to the previous question. In terms of the semi shortage, are you getting a different message from the truck OEMs versus the light vehicle OEM? Also, if you could please remind us your content per vehicle how that differs in the truck versus the car. That's my first question. Yeah. If I understood your question correctly, and if you look into light and heavy vehicles. We saw a good development in both areas. We, especially in China, had a very good development in the heavy vehicle development first half year 2021, because of the China six regulations, where a couple of new and high-tech heavy vehicles were required and produced. Insofar, we saw also, within China, a very good development in heavy vehicles. There's a good development where we had in the past a significantly lower level of heavy vehicles. If you look into the content per vehicle discussion, there we have a good development in terms of plug-in hybrids and more premium cars. The content per vehicle in a premium car is higher than if you have a budget car, for example. When we are talking about an average range of, for example, a very broad range, but if you take an average of EUR 15, so a premium car can go to, I don't know, EUR 150-EUR 200 maybe. There's a broad spread of content per vehicles. Let's say, average of around EUR 15 per car if you take the European market. Where we have a good development is the plug-in hybrids development in the first half 2021. We have to keep in mind that the content per vehicle for a plug-in hybrid is 30%-40% higher than for a diesel or pure gasoline car. Insofar, there's a spread, and also the portfolio that we currently have supports our development. Thank you. That is super helpful. Sorry, what is the content difference between a truck and a car? Is there some major difference or the average is around the same? Yeah. It is totally different. If you take a truck, you can have content per vehicle, depending on the truck. You take EUR 200, EUR 300, EUR 350, while you have in an average car, EUR 15, maybe EUR 20. You have a significant higher content per vehicle in a truck business, comparing to a light vehicle. Thank you. That is super helpful. Thank you. Welcome. The next question is by Hans-Joachim Heimbürger of Berenberg. Yeah. Good afternoon. Two questions from my side. First of all, on the strong margin development in Asia Pacific. Is this sustainable, this 17 plus% margin? Secondly, maybe a short comment on your M&A pipeline. Is a deal now getting more likely in the rest of the year? Thank you. Maybe I refer first to the margin. Asia Pacific, I think it's very sustainable because Asia Pacific has the luck also. They are growing. Even they can compensate a bit their, I would say, the rough delay of light vehicles due to chip shortage by a higher number of heavy vehicles, due to this regulation of China 6 and so on. I think there are a lot of positive impacts, which bring us to this assumption. This margin is really sustainable and a very good one, and we hope even to improve it. Thank you. Taking your second question, M&A pipeline. Of course, there were limited M&A activities in 2020 and 2021 because of the Corona crisis situation. Nobody did travel and visit companies, but we have an intensive M&A pipeline. We have interesting targets that we are analyzing, and as soon as traveling back and forth and doing due diligences, visiting companies, we will go in more, let's say, interactive activities. We have a clearly defined M&A pipeline, and we have the clear target to grow intensively via M&A activities. Thank you. Very helpful. Thank you. The next question is by Philippe Lorrain of Berenberg. Yeah. Thanks for taking my question. Just to follow up quickly on the M&A, would you mind reminding us about your targets in terms of net financial leverage then? If you expect clearly to grow via M&A in the future years. I believe your leverage now stands at two times net to EBITDA. I was hoping to get some sense on to which extent you could basically expand that ratio post M&A and what's the, let's say, normalized kind of ratio that you expect after that? Yeah. That's the first one. Yeah. If you take the leverage development, we typically leverage per quarter, 0.1, 0.15. We have a very good cash generation, and with that cash generation, a good deleveraging. We also expect that leverage is going down. We typically would like to keep a leverage of an average 2.5 on a long-term perspective, to be still in the investment grade. Insofar, we keep these 2.5 leverage as a long-term average. Taking that into account, nevertheless, we have additional potential to have firepower for M&A activities. Insofar, we are very confident that we can finance our potential M&A activities that we have in our pipeline. Okay, perfect. I understand the 2.5 would be the normalized level from where you'll start, basically. Absolutely, to stay investment grade. I think also this leverage now gives us already a debt capacity, which is really giving us a lot of opportunity, even out of our own means. I would say, banks like to make businesses as well, and there are a lot of other measures. We would not have a problem, Philippe, to go to 2.678 for a few quarters, for example. On a long-term perspective, on average, we want to keep this 2.5. Okay. I understand. How quickly do you aim to deleverage back to about these 2.5x-2.8x, let's say, post M&A? I guess the question that is related to that is how far up can you go in case of a big deal without raise equity? Well, that depends, of course, on the concrete target. Without having defined that, we all would not be very happy to see a 3.0 or so. Take these 2.5 on a long-term average. We are deleveraging very quickly, to be able to have additional M&A activities in our structure. Understand. The next topic was more, let's say on volume growth and price and so on. Do I understand correctly that your top-line growth guidance is quite safe? Even if volumes are slightly disappointing and lower than expected, you have still the price part of the equation that helps because you have the pass-through clauses allowing you to offset the effects of rising input costs on your earnings? Yes, you see in this pricing discussion, one of the big advantages of Norma Group, where we have a broad, let's say, end market portfolio, where we have distribution services business, standardized product by our wholesalers and retailers, and the OEM business. In this part of our business, where we sell to wholesalers and distributors, we typically raise prices once, twice a year, and also in these years, discuss it maybe even often. Insofar, pricing for us and volume, of course, is a very important balance to keep, but we will keep our double-digit growth. At the end there, again, with our industry products, it is a bit easier to lift the prices. We are already in the fourth price increase for Water, for example, and the market is taking it. That gives us a bit, I would say, the flexibility also to balance it a little bit better. Perfect. That's exactly the kind of answer I was expecting. In the EJT business, how easily do you manage to pass through the cost inflation right now to your customers? I believe versus 2018, what's changed is that you have now clauses to pass through as well the increase in steel price, which was not the case before. I was just wondering whether the situation is relatively simple for you and it's just basically a question of time before the price rises become effective, or whether there's a little more reluctance from your clients to take that? Well, Philippe, believe me, I would love it to have it that easy, but it's not that easy. It's a lot of pressure in the market. It's a really extraordinary situation where you have shortages in steel, in semiconductors, where you have higher steel prices. You have to take steel where you get it. Insofar you go, you have very good arguments to go in negotiations with our customers. It's not that easy. It's negotiation on a individual basis. We have very good arguments because it's an extraordinary situation, it's not easy, of course. I understand that. Of course, at the end of the day, it's the automotive and extended kind of industry, are never easy. You agree on the fact that you can theoretically now pass on as well the steel price inflation to them? We are daily discussing with our customers, and we go every way. We even had in a few new contracts, a clause where we could adapt. We have this LME surcharge, what we normally pass through, but that is always also with a little time delay. Therefore, I would say the timing delay, everybody has to absorb as good as he can. Yep. Okay. That would be it from my side. Thank you very much. Thanks, Philippe. As a reminder, if you would like to ask a question, please dial zero one on your telephone keypad. Now to enter the queue, zero one There are no further questions at this time, so I hand back to Dr. Schneider for closing remarks. Yes. Thank you very much once again also for this intensive discussion, and thank you very much for your participation. Please keep in mind as a summary, strong H1 for Norma Group, very good basis for H2. We will reach our guidance and are prepared for the strategic growth path, and we also will manage all these headwinds that we see. Thank you very much.