Welcome to the Vaisala Q1 2021 Interim Report. Throughout the call, all participants will be in a listen-only mode, and afterwards there'll be a question- and- answer session. Today, I'm pleased to present Kai Öistämö, President and CEO, CFO Kaarina Muurinen, Head of IR Paula Liimatta, and Chair on Board of Directors, Ville Voipio. Please go ahead with your meeting. Thank you, and welcome from my side as well. This is Kai Öistämö. Good afternoon or good morning, depending on which part of the world you may be. If we look at first how did the first quarter come together, I would summarize it that we had a strong start of the year. The market environment turned out to be more favorable. The economic recovery visible then through multiple of our segments, was very visible except for aviation and emerging markets. The economic recovery was especially strong in China and in U.S., it was clearly visible in other parts of the world as well. Based on the increased visibility and the strong first quarter that we have, we have now narrowed our business outlook for the year, and I'll come back to that a little bit later in the presentation. The renewal of our product portfolio continued very well, and we proceeded well despite the COVID-19 situation, which especially our personnel have had to fight through. We launched several new products such as Ceilometer, which is in the picture here, which is a lidar-based measurement device, which enables us or the user to measure the heights of clouds, the contents of a cloud, and overall gives a very accurate and good visibility into the atmosphere above us. Very important for the meteorological customers of ours. Our new R&D building is now fully open, and it's already partly populated and now waiting for the pandemic situation to ease up for it to be fully having everybody on site. Our work and our products are closely linked to several of the mega trends and contribute to the several of the United Nations Sustainable Development Goals. When we look at the first quarter, we saw an especially strong performance in life sciences and at Wind lidar business, which are very closely connected to the health and well-being SDG, as well as the renewable energy SDG respectively. Talking about renewable energy and renewable electricity, several companies aim to move fully to renewable electricity within the upcoming years, typically within the 5-15 years. We are very proud to be a forerunner in this space. We are very happy to report that we are now 100% renewable energy. We validated the result now during the first quarter, and reached the actual target already in the last year. We were first technology company here in Finland to reach such a goal, and overall, the second company in Finland out of all companies. We have now reduced our Scope 2 emissions. That means our own emissions by 97% from 2014 baseline and continue this work going forward. Even more importantly, I would bring up that our work in sustainability is really where we contribute through our handprint, i.e., the products and services to our customers, which enable them to reduce their handprint or their footprint, and thus creating a very positive impact to the world. The other very exciting event during the first quarter was obviously the landing of Perseverance in Mars, carrying Vaisala's relative humidity and pressure sensors. Not only did they land safely on Mars, but now are being used on Mars and now what is being built is the first-ever meteorological observation network on another planet. We think that this is a great showcase on how reliable, stable and accurate our products really can be in a very difficult environment. If this is not a very good proof point, when it works in Mars, it really will work in any environment also here in planet Earth. Moving on to the numbers on first quarter. Orders received increased by 18% year-on-year. The increase was in both business areas and when we look at the different market segments, it was increase in renewable energy, ground transportation, life sciences and industrial instruments. Whereas in aviation markets, due to the COVID-19 situation and slowdown in travel, the weakness continued. If we looked at in terms of the constant currencies, it would've been 23% growth in constant currencies. When we look at the order book in first quarter, that increased 10% year-on-year. Again, the increase came in both business areas. The increase was in all market segments, in industrial instruments, and in Weather and Environment. It was in renewable energy, ground transportation, and meteorological market segments. There was a decline in large orders in Weather and Environment for the projects that there will be a delivery into next year and the year after, and that is visible also in our numbers. If you look at the order book beyond 2021, it really mainly consists now of long-term service contracts in Industrial Measurement side. Moving on to net sales. They grew by 9% year-on-year. If we take the constant currency, it would be 9% growth year-on-year. The growth came from Industrial Measurements, whereas Weather and Environment was flat year-on-year. From a market segment side, the growth came from life sciences, renewable energy, industrial instruments, and ground transportation. The aviation and liquid measurements declined year-on-year. Noteworthy also is that net sales of large projects year-on-year declined, reflecting again on weaker order intake during last year on the larger projects. If we look at into the business areas, first Industrial Measurements, I would say we had an excellent performance during the first quarter in Industrial Measurements. The orders received increased in all market segments. It's worthwhile also noting that I talked about the economic recovery around the world. The economic recovery, especially in China, boosted the growth of the sales and the orders received in China for us. We look at also in terms of the order book length, worth noting also is the strength in China reflect was seen also that there were some bigger orders, some annual orders in China, which were received during the first quarter. Obviously the longer and larger orders come from the bigger success in power industry and on the continuous monitoring system side. We look at the net sales, net sales grew by 12% year-on-year. That then led into an increased operating profit as well. The result was EUR 9.4 million compared to EUR 7.6 million corresponding time last year, being now 23.8% of net sales. Net sales growth was strongest in life sciences and industrial instruments in absolute terms, and in relative terms, power industry offering grew very well as well, whereas liquid measurements declined, reflecting the disappointing order intake during the past few quarters. If we move on to Weather and Environment side, also a strong growth in orders received. The order growth was strongest in renewable energy and ground transportation, both in absolute terms and in relative terms. The order growth in meteorological segment was flat. In developed countries, we saw some increase in orders received during the first quarter. However, the level of orders was still very low and the market really hasn't started to recover. You should look at this as a quarterly change in volatility in terms of how the orders come in. As I said earlier, the weakness in aviation continued due to the lack of travel due to the COVID-19 situation. The operating result in Weather and Environment increased as a result of lower operating expenses. The operating result was EUR -800,000 in first quarter, which was compared to EUR 2.4 million loss in the corresponding time previous year. When we look at the net sales, the net sales grow strongest in renewable energy and aviation. Sorry, renewable energy. Again, the aviation declined year-on-year, again, due to the lack of travel and the COVID-19 situation. The OpEx was slower compared to the previous year due to the more efficient ways of working and lack of travel, triggered by the COVID-19 situation. Worth noting also that the R&D activities continued according to the plan. The new, as I said, new R&D facility was taken into use step by step during the first quarter. If we move on financials, the first quarter operating result was 8.8% of net sales. The drivers for increased operating results were net sales growth and lower operating expenses. As mentioned, the gross margin decreased due to the product mix on one hand and appreciated euro on the other hand. The OpEx decrease was due to more efficient ways of working, triggered by the COVID-19 situation, as I explained. Maybe it's also worth noting that the comparison period last year included a one-time credit loss allowance booked by EUR 1.1 million related to our one customer project, which was then later reversed during the last year. In terms of EPS, we grew to EUR 0.17, and the financial position overall remained. If we look at the net working capital, we had a very good cash flow during the quarter, mainly contributed by increase in trade account payables and advanced payments from customers increased, and thus leading into improved cash flow. It's also worthwhile that, as we indicated earlier, the CapEx level now during the first quarter after the building project that we had during last year were completed. Moving on into the market development and business outlook, how does the world look for the rest of the year? We see the COVID-19 pandemics will still cause a significant uncertainty for this year. While the situation has improved in developed world, it's still in alarming levels in many of the emerging markets. If we just look at the terrible news we hear day by day from India, for example. We do, despite all the COVID-19 situation, that the global economy is going to continue to recover during 2021. We will see a growth in industrial instruments, in life sciences, in power industry, and in renewable energy, whereas the meteorological segment in developed countries, we expect to stay stable, whereas in developed countries would stay on a weaker level due to the COVID-19 situation and the financial challenges caused by COVID-19 into the emerging markets. The aviation markets, we expect to remain weak, although we expect some early recovery towards the end of the year. Now, based on the strong performance during the first quarter and increased visibility in the year, we have narrowed our business guidance for this year. From a net sales perspective, we have raised our bottom end of our estimates by EUR 10 million. Our estimate now for full-year net sales is from EUR 380 million-EUR 400 million. Correspondingly, we raised the bottom end of our operating result guidance so that it now reads EUR 35 million-EUR 40 million expected for this year. If I summarize the first quarter, we had a very strong start for the year. The market environment was more favorable than we expected, resulting from a strong recovery, especially in China and U.S. Then we felt a strong order intake across multiple market segments and now, given the strong first quarter and increased visibility, we narrow the business guidance for the year. That's the end of the prepared remarks. I would like now hand over to any questions that you may have. Operator, please. Operator, can you hear us? Just a minute. We will try to reach the operator. Thank you. Sorry. You can hear me clearly? Yes. Please open the line for questions now. Thank you. Ladies and gentlemen, if you wish to ask a question, please press zero, one on your telephone keypad now. Our first question comes from Joni Grönqvist from Inderes. Please go ahead. Your line is now open. Yeah. Hey. Hi, thank you for taking the questions. I've got three questions, and starting with the guidance. Looking at the strong Q1, your guidance feel cautious. Even though you guided lower end, and I understand your visibility is usually quite low in the beginning of the year. Taking into account the current trend and orders, don't you agree that if the trend continues, your upper end is also cautious? Which new risk do you see as the COVID and aviation headwinds were already in the comparables? Yeah. Hey, Joni. If I answer the first question. As I said in my prepared remarks, the visibility to the COVID-19 situation, relatively poor to the year. We hear about the new virus variants and so on. It's very unpredictable how the virus will behave and thus giving us hesitation in terms of visibility into how the market overall will develop towards the end of the year. The second point I would maybe just remind you is that, especially on the Industrial Measurements side, while our order book increased well during the first quarter, it still is a short-term type of a business. About half of the order book is through the next month and then very rapidly declines after that, meaning that there is some length in terms of, I mentioned the China orders, there is the service contracts and some length in terms of the power orders. It's still mainly a very short-term type of an order book. Thus, while we are very happy on the level where it is today, we need to win in the marketplace every day to perform well for them. The second point maybe just to highlight is that the slow or order intake during last year, and now also in the first quarter in the sort of big projects in Weather and Environment side, is something that, again, gives a little bit less predictability in terms of a net sales for the longer term. Yeah, maybe one other thing which was not prepared. As we all know, the electronic component shortage is well documented and well discussed in the world. While on one hand, given our high mix, low volume type of a situation where a single component is not an systemic problem to our business, where we are very different from many other companies. This obviously is something we, just like any other company, needs to kind of see that how well can we secure the component supply through the year. So far, we've performed very well, this is obviously something that every company in the tech industry needs to kind of recognize. Yeah, that was actually partly my second question. If I continue on the component, do you see any inflation there, and how do you believe if there will be, how well are you able to push it forward to customers, the price increases? Far, we have not felt price increases in terms of the components. Speculating the future, anytime there is a kind of shortage on any commodity or any component, there always is a pressure to higher prices, and it's fully to be expected. We are trying to manage that as well as we can. I'll just remind you, especially on the industrial instruments side, through the increased value added that we bring to the marketplace, we have been able to raise prices at least on a selective basis. I think we are, relatively speaking, in a good position to manage this. But obviously, it's something to watch. Yeah. Lastly, I'll take again the question that I took six months ago. Now you've been here a while on board, and know the company better. Have you seen or recognized any specific areas where you see improvement potential or more improvement potential? Yeah. I think I answered the question more or less the same last time. Let's see. One thing is to secure the long-term growth and that's my objective number one, how do we make sure that we do the right things in such a way that we not only grow this year and next year, but we also do it all the right way, that we have a very much of a long-term growth path for the company. I think there's a lot to do, and there's a good pipeline of innovation for years to come in the industrial measurement side. If I look at one improvement area and a potential for longer term growth is the digital side of the business that we have been very well streamlining over the past year and a half. The profitability of that is in the right level, and it contributes nicely to our gross margin right now. Here is something that we have so far been unable to grow in a meaningful way. I think that could be, in terms of when I talk about the long term, in terms of a long- term, an area to focus on. Okay, great. Thank you for taking the question. Thank you. Thank you. you. Our next question comes from Jonas Forslund from Evli Bank. Please go ahead. Your line is now open. Thank you very much for taking my call, and congrats to the whole Vaisala team for a really good result, especially a good Q1 result for you. I also had some questions regarding the outlook, and given that you have such a strong performance, but I feel that we did cover that topic fairly well here in your previous answer. I'll take another question instead. I noticed that in your report, Industrial Measurements came before Weather and Environment in the report order. Can we conclude something from this, or is it just purely semantics? I would not read into it too much. It's more we try now to be consistent on that order. There's no kind of a secret or hidden message in all that. All right. Good question. Very well. A more detailed question. Liquid measurements which acquired a company a few years back, and you said that had disappointing new orders in the last year. Could you give us a little bit more color into what is the situation there within liquid measurements? Has there been any challenges, unforeseen events, or how do you see this part of the Industrial Measurements developing here in the near term? We did have challenges in terms of order intake during that past quarter, so in past months, until now fourth quarter. In the first quarter, very happy to see that it turned into a positive number. We saw an increase year-on-year in terms of order intake. Liquid measurements is out of any segment in Industrial Measurements portfolio, the one where the COVID-19 situation hit the hardest. The products are such that it really requires presence in the customer premises. With the travel restrictions and restrictions to our customer's premises, it has been clearly more challenging to turn the pipeline into actual orders. We have been working on that very hard and now very happy to see that we have, at least in the first quarter now, we see positive numbers on measurements. We continue to be very happy with the acquisition and see that it is a growth opportunity not only for Industrial Measurements, but for the entire company as well. Very well. Life science now with the vaccine programs everywhere, do you see the positive sort of tailwind that you're getting now, do you see that carrying even past this year and into next year? I would say this way, that if I look at the market segment and the market dynamic, I think the investments, if we look at global investments into life sciences market overall continues to be strong. It's not only driven by the COVID-19 situation. Certainly that has had a big impact on it. It's not only that. I think that those investments will continue during this year and at least this year, and probably a little bit longer as well. We have been successful with our continuous monitor, especially our Continuous Monitoring Systems, not only with that, but especially with that in the marketplace. Obviously, therefore, we are well-positioned with that if the market continues to grow. Okay. Thank you. That's all from me. Thank you. Thank you. As another reminder, if you do wish to ask a question, please press zero, one on your telephone keypad now. Okay, as there appear to be no further questions, I return the conference to you for any closing remarks. Thank you, everybody, and I look forward discussing you in hopefully not so distant future. Thank you, everybody.