Welcome to the Brødrene Hartmann A/S Full Year Results 2021. For the first part of this call, all participants will be in a listen-only mode, and afterwards there will be a question and answer session. I'll now hand the floor to our speaker, CEO Torben Rosenkrantz-Theil. Thank you, and thanks all for taking the time to join our earnings call today during this busy and turbulent period. My name is Torben Rosenkrantz-Theil, and I'm the CEO of Hartmann. On today's call, I'm accompanied by our CFO, Flemming Steen. We will begin with a few highlights and some comments on the unusual market developments and fluctuations that we faced in 2021. Flemming will cover the segment performance and financials before I briefly touch on some key strategy elements and initiatives. Finally, we will comment on 2022 outlook before turning to the Q&A session. Let's turn to slide two for the highlights. We expanded our business and Hartmann's market share under challenging conditions in 2021. We kicked off the year on a strong note with high levels of capacity utilization in Q1, but the positive trend did not last. The exceptionally strong demand experienced during the COVID-19 pandemic in 2020 was replaced by below normal demand and a return to seasonality in our business. At the same time, peak season sales in the final quarter of the year did not live up to expectations. All in all, we still generated 7% growth despite the sluggish demand and a significant negative currency impact of DKK 100 million. Our profitability was under pressure in turbulent markets that were affected by historically steep increases in prices of recycled paper and energy. Slow demand and dramatic raw material price hikes impacted earnings, and COVID-19 affected our operations as we faced challenges with staffing in North America in particular. We continued and stepped up our efforts to enhance production efficiency, but we also had to enter into dialogue with our customers and raise our average selling prices. In combination with license income received in Q1, these initiatives partially mitigated the negative external conditions, and we were able to deliver a profit margin of 9.2%. Despite the high volatility of demand and raw material prices in 2021, our market projection remained unchanged in the longer term, and we continue to see growth potential for molded fiber egg packaging. The conversions from oil-based plastic packaging to sustainable paper-based molded fiber packaging has picked up pace and is expected to continue. We have already made significant investments in capacity expansion to accommodate the growth in the long-term demand, and we continue on this path in 2021 with sizable total investments focused on Europe, the U.S., and Gotek-Litar. Please turn to slide three and a few comments on the tough market conditions in 2021. Fluctuations in demand continued throughout 2021 as our markets were impacted by phasing out of COVID-19 restrictions and the reopening of restaurants, canteens, and other opportunities for people to leave the home office. In addition, we saw our usual off-season periods in Q2 and Q3 return after having been replaced by continued high demand in 2020. Finally, supermarkets decided to hold back on their normal egg promotions in the off-season quarters as eggs were used less as a loss leader to drive traffic to the stores. After a long period of extraordinary egg sales and shortage of egg packaging, it takes time to reestablish supermarkets' confidence in the supply chain. We were able to maintain operations at our factories despite the challenges caused by the outbreak of COVID-19, which continued to entail reduced visibility and higher operational risk. Our North American business faced many challenges due to COVID-19, and this entailed lower productivity in 2021. We have been monitoring developments in each of our markets closely during the year, and we have continued to protect our employees at the factories as well as our partners and customers. At the same time, our teams have been able to ensure supplies for our factories to ensure our ability to maintain operations and deliver to our customers. As mentioned before, we saw a strong increase in costs across our markets as prices of our two most important raw materials soared. In some markets, the price of recycled paper jumped by more than 60%, while the price of natural gas had increased more than sevenfold at the end of the year compared to the situation in late 2020. The increase in recycled paper prices was the main driver of high production costs. As demand for recycled paper and cardboard for the production of packaging rose on the back of growing internet shopping in the wake of COVID-19, which also caused supply chain disruption and reorganization in some markets. At the same time, our financial results were heavily affected by developments in the energy markets and the historically steep increases in the prices of natural gas and electricity, which inflated our overall energy costs by a staggering 45% in 2021. We faced challenges in the South American business, too, as our markets in Argentina and Brazil suffered from significant macroeconomic uncertainty. Slower economic growth and reduced consumer purchasing power and demand for retail packaging was supplemented by rising inflation, significant currency depreciation, and political uncertainty due to upcoming elections. We will get back to the accounting consequences of these developments in a while. Let's now flip to slide four and an update from Flemming on segment performance and our finances. Thank you, Torben. Our 2021 performance was severely impacted by this market volatility. Activity remained below normal levels across our markets, and the dramatic raw material price increases affected profitability. Growth was secured on the back of acquisitions and the expansion of our production footprint, but volume per production line declined in 2021. We alleviated the impact of slow demand and higher input costs by lifting selling prices, but this did not outweigh the challenging external conditions. The Americas business grew revenue slightly as we improved our product and price mix. The efforts to strengthen sales outweighed a moderate decline in packaging volume against the very busy comparison year, which was impacted by COVID-19. After a strong start to 2021, demand dropped and volumes were impacted by the partial reopening of society in North America in particular. Low utilization of our expanded production capacity, as well as many challenges during COVID-19 and the dramatic raw material price increases, had a significant negative impact on our earnings in Americas. Recycled paper costs increased by 72% in 2021, and energy was up by 23%. Furthermore, negative macroeconomic developments in our South American markets had a detrimental effect on our performance in the segment, which secured a profit margin of 3.7%. Our Eurasia segment reported growth in 2021, supported by the addition of activities in India and Russia, higher selling prices, and an improved product mix. The progress was also impacted by license income of DKK 78 million resulting from the settlement of an intellectual property rights dispute about our imagic products in Q1. Excluding this license income, the Eurasia business delivered growth of around 4% in 2021. Higher recycled paper prices and the energy crisis in Europe had a severe impact on our profitability as paper costs jumped by 51% with energy costs up 58%. We mitigated these external effects by increasing the selling price, but still report a significant lower profit margin of 13.7%, including the license income mentioned before. Please turn to slide five for a few comments on consolidated figures. Our 2021 results were in line with the most recent guidance provided in October in the wake of soaring raw material prices. Despite the challenging market conditions and a negative currency impact of DKK 100 million, we grew consolidated revenue by 7% to surpass DKK 2.7 billion in 2021. The progress was positively affected by the addition of our plants in India and Russia, as well as the license income mentioned before. We noted a sharp decline in earnings and profitability against the exceptionally strong performance in 2020. The profit margin declined to 9.2% due to skyrocketing raw material prices and lower production efficiency caused by slower demand. Excluding the license income of DKK 78 million, we secured a profit margin of 6.3% in 2021. As Torben mentioned before, we faced macroeconomic uncertainty in our South American markets in 2021. This uncertainty entailed a significant downturn in economic growth, reducing consumer purchasing power and the demand for retail, and the demand for retail packaging. In both our South American markets, these negative effects were amplified by increasing inflation and negative currency development, as well as political uncertainty ahead of upcoming elections. The negative development in Brazil is due to a general decline in economic growth in recent years, while uncertainty has increased in Argentina as its politicians have not been able to restore sound economic performance and comply with the country's agreement with the IMF. Based on the macroeconomic uncertainty and the effects on the regional markets for egg packaging, we performed impairment tests resulting in increased discounting factors and leading to the impairment of DKK 112 million of our long-term assets in South America. The impairment makes up the bulk of the special items for 2021, amounting to DKK 116 million in total. Our 2021 profit was DKK 74 million, and the free cash flow came to an outflow of DKK 291 million, driven by the expansion of production capacity and the acquisition of Gotek-Litar. The return on invested capital declined to 11.6%. With these words, I will ask Torben to provide an update on our strategy and some key initiatives this year. Please turn to slide six. Thank you, Flemming. I will spend just a few minutes recapping our strategy. We have invested significantly in our business to accommodate the underlying increase in demand across our markets as the current volatility settles. Our investment decisions have not been based on the demand arising from COVID-19, but instead, we have remained focused on the underlying development in demand. While current trading is very volatile, I would like to stress that we continue to see very positive macro trends driving Hartmann's growth and development. Firstly, demographics will continue to play an important role in driving the demand for food products and our packaging. Also, urbanization will drive retail trade and a continuous shift from sales in open markets to retail packaging sales in supermarkets. The world population is expected to reach 10 billion, 10 billion people in 2050, and we see demand for our products increase steadily decades from now. Secondly, consumers and decision-makers are reacting against the use of single-use plastic packaging, and this drives the conversion to molded-fiber packaging, which is a superior and well-proven alternative to plastics. Supermarkets are embracing the change, and several large retailers have set out to ban or significantly reduce single-use plastic packaging. This development is expected to be supported by regulatory changes, which are seen to come into effect over the coming years. Thirdly, consumers are increasingly focused on health, nutrition, local production, recycling, and animal welfare. We expect to see higher egg consumption and a more varied supply of eggs. The egg category will become more complex, and our customers are already demanding packaging that stands out and promotes specialty eggs in the supermarkets. To benefit from these overall trends, we are drawing from our key strengths. First of all, our expertise enables us to offer advice to customers based on experience and consumer research that opens for a data-based approach to branding and marketing. Secondly, our solid footprint, with sales in more than 50 countries and 15 efficient factories, gives us a great and expanding platform to grow the business. Thirdly, our product portfolio is versatile and tailored to fit the specific demands across our markets. Our sustainable profile is strong as all products are based on renewable materials with the options to choose FSC-certified and CO2 neutral products as well. Finally, we have outstanding technology competencies that have been refined since 1936 and allow for continued development of our own manufacturing setup and external machinery sales in selected markets. Please turn to slide seven for an overview of our strategic focus area during 2021. We continue to focus on three key areas of capacity, efficiency, and marketing in 2021. Our overall strategy remains unchanged and focused on growing volumes and maintaining a high utilization rate. At the same time, we aim to enhance efficiency through automation, process improvement, and continued technological development at our factories. Finally, we will consider attractive expansion opportunities in existing and new markets. I'll share a few comments about some of the initiatives taken for each of these three focus areas in 2021. Firstly, we invested in expanding our footprint with the addition of capacity in Europe and the USA. New capacity was added in 2021, and we installed additional production equipment, which was commissioned in early 2022. We also acquired the factory in Russia in early 2021 and worked to integrate and ensure a higher level of utilization of the new factories in India and Brazil as well. Secondly, investments in automation and implementation of new technology were made to ensure smooth operations and to reduce costs at our factories. We are pursuing this route to optimize the output per employee and production line while reducing raw material consumption per unit to protect profitability. Finally, we have rolled out new products in several markets, including the introduction of the new Plus Pack product in Europe. The new packaging model offers customers better marketing space, higher efficiency at the packing station, and sustainability benefits due to a 10% weight reduction compared to its predecessor. We also continue to build our knowledge of consumer behavior through research to be able to offer customers relevant data and insights about current consumer trends and concerns. It remains a key focus area to support and assist our customers in converting from plastic packaging to eco-friendly molded fiber products. Let's turn to slide eight and the outlook for 2022. The market situation is highly volatile as we speak, and guidance for 2022 is subject to great uncertainty caused by the ramifications of COVID-19 and the Russian invasion of Ukraine, as well as the prevailing macroeconomic uncertainty in South America. We have therefore expanded our usual guiding range for revenue and profit margin to provide our view on 2022, while allowing for a bit more flexibility. For 2022, we expect to increase revenue to DKK 2.9 billion-DKK 3 billion based on volume growth and a higher average selling price. We expect to secure a profit margin in the range of 2%-7% before hyperinflation restatement and special items. Earnings will be significantly impacted by continued high raw material prices, which will drive up costs. We will work hard, of course, to counter these negative effects by adjusting the average selling price and improving our product mix and price mix. We intend to invest around DKK 225 million in 2022, as we have made quite sizable investments in recent years to establish a platform able to support our growth ambitions for 2022. Due to the Russian invasion of Ukraine, we have halted our exports of packaging, machinery, and technology to Russia and stopped plant investments in our plant there. We are monitoring the situation very closely and are currently considering potential next steps. Our financial ambitions have not changed. In the slightly longer term, we still aim to grow volumes and revenue year-on-year to be able to reach an ambitious profit margin of at least 14% under relatively stable market conditions. At this time, we now look forward to taking your questions, please. Thank you. If you have a question for the speakers, please press zero one on your telephone keypad now. If you wish to withdraw your question, you may do so by pressing zero two to cancel. Once again, if you have a question for the speakers, that's zero one on your telephone keypad now. Our first question comes from the line of [Frederikke Alsøe] from Carnegie. Please go ahead. Your line is now open. Yes. Good morning, Torben, Flemming, and thanks for taking my questions. I have a couple, so I'm just gonna go by them one by one. I was wondering if you could give some more insight into the demand picture. Is it still a lack of special offers in supermarkets, or what do you see as an explanation for the weaker than expected peak season sales? And is this still the picture you're seeing, or has demand started to normalize? We see demand. The process of normalizing demand is still ongoing. We are not there yet. North America is further ahead than Europe, but we still have perceived our volumes to be somewhat slow. The underlying reason, it paints the picture certainly, the return to normality after the lifting of restrictions still plays a role in basically everywhere. We see that as a major explaining factor. As we said, supermarket promotional activity is still not back to where it came from. These factors in combination leads to demand being somewhat low. It is picking up, and it is moving in the right direction. This process of getting back to normal has taken longer than we had expected. Okay. Thank you. Relating to the DKK 112 million impairment loss in South America, I assume you did an impairment test last year. Could you give some insight into what has changed since you did this impairment test last year that warranted an impairment of more than one third of the acquisition price? Yeah, certainly. The vast majority of what led to this impairment write-off or impairment adjustment relates to the impact on this calculation from macroeconomic factors, increasing interest rates, higher inflation, et cetera, et cetera, has led to the what do you call that in English? I'm missing a word here, just bear with me. It's Danish concern. Oh, oh. Yeah. It's an increase in the discounting factor that we're using. In other words, this is mainly driven by, again, the external macroeconomic factors more so than performance problems within the business. As a result of these economies going through a very turbulent period during COVID-19, the economies in both countries have taken a toll. The poverty rates are going up, the GDP is going down, inflation is going up, and these factors have a massive impact on the calculation. We do stress that these are the factors that has the majority of the impact on this situation. With all this in mind, do you still think that this is an attractive market for you to be in? It's an enormously large market. If you're playing in the developing markets, you have to be prepared to roll with the ups and downs of the macroeconomic and political situation. We're doing that, and we've done that for years. Right now the markets are not great, but they will come up again. We do believe that, considering a sizable population of those countries, and our established footprint in those countries, our mindset is to hang on and roll with it. Yes, it's not great right now, but we believe that what goes down must come up. From that standpoint, we're hanging in there. All right. A question on your guidance for 2022. If we take the mid-range of this interval and consider that a base case scenario, we're looking at a 13% growth rate. Could you give us an idea of how we should think about that in terms of volume growth and higher selling prices? Well, we will grow our volumes, but no doubt, the higher selling prices is a majority of that top line growth. We talked about earlier the fact that the volumes have not really kicked back to where we would like it to be, and henceforth, the majority of the growth comes from price. There's also volume growth in there, just with less impact. Okay. Thank you. That was my question. Thank you for taking them. Thanks. Thank you. Ladies and gentlemen, once again, I remind you, if you do wish to ask a question, please press zero one on your telephone keypad now. Please hold while the next question is being registered. Thank you for holding. Our next question comes from the line of Marcus Spendlander from Stock Picks. Please go ahead. Your line is now open. Thank you. A couple of questions, if I may. Starting with Russia, could you talk a little bit about the situation there? I mean, operationally, is everything running as normal? And also, financially, are you able to get profits or potential profits out of Russia at this point, given that Russia has been excluded from the SWIFT system? Well, needless to say that nothing is normal with respect to our business in Russia. As we said earlier on, we have stopped all our export sales from our European plants into Russia, and likewise, our technology sales has been halted in Russia, and we have stopped all ongoing investment programs at our plant in Russia. All that, of course, leads to a very abnormal situation. Having said that, the Russian activities, the plant that we have in Russia, is cash flow positive and from that standpoint in a position to sustain itself for the time being. We are not very positive, at least short term, on our ability to repatriate profits over there from over there. This is the situation as it is. For that reason, of course, we are analyzing the different possibilities that we have with respect to our Russian activities. Okay. Thank you. My second question is a little bit broader, I guess. I mean, you write down or make these impairments in Argentina and Brazil, and Russia is obviously a bit of a question mark at the moment. Does this make you look differently at your capital allocation strategy? You mentioned that the cost of capital has been increased in Argentina and Brazil. Will you permanently increase the WACC when considering making investments in emerging markets from now on? I think we've always had a higher threshold when it comes to the WACC that we use when it comes to emerging markets. It's also important to say that if you look at our capital allocation in recent years, most of that capital has been used in expanding footprints in Europe and in North America. That's where the largest part of our capital has gone. Needless to say that what has happened in South America as well as Russia over the past weeks and months is of course a reminder to Hartmann that a growth strategy involving expansion into developing markets just comes with a completely different risk compared to what we're used to from Europe and North America. It is a very different game in these markets. I believe we will still continue our strategy of expanding our footprint. This has been a very firm reminder of the risks associated in doing so. Okay, that makes sense. Thank you very much. Thank you. At this stage, there are no further questions. I'll hand back to the speakers for any final remarks. No, I think if there are no more questions, we'll close the call and wish everyone a great day. Thank you.