Good morning to you all, and welcome to Marel's second quarter financial results investor meeting, broadcast to you live from our headquarters in Iceland. Today, CEO Árni Oddur Thordarson and CFO Linda Jónsdóttir will go over the financial results and some key business highlights. We will then conclude with Q&A. My name is Tinna Molphy, Investor Relations, and I will be acting as your moderator in today's session that should last no longer than an hour. If you would like to ask a question, please do so via the conference call. You can also email your question to ir@marel.com and we will then read out your name, your company and the question. Without further delay, I would like to hand over to CEO Árni Oddur Thordarson. Yes. Thank you, Tinna, and welcome all to second quarter results here in 2021. It is a very dynamic and interesting quarter. Even though we need to be humble and nimble about the results. We are seeing the passion of our team clearly as paramount here, and partnership back to back from suppliers to customers that are creating the results. I look at the positives and the highlights, we are seeing our order intake two sequential quarters in a row at a record level. We are clearly back on the growth track. Organic growth is foreseen, and our hope and our aim is to see now the revenues and gross margin ticking up in the coming quarters, although we are seeing summer holidays in front of us here partly in third quarter. We are doing many initiatives to scale up our operation as well. Maybe if you move the slides, Tinna. Are they moving here the slides for our investors? It's better that sound and pictures go hand in hand so we can deep dive better together through this. EUR 370 million in order intake, order received in this quarter and the first quarter. If we deep dive under the hood, then we are seeing in first quarter, record order intake in meat, Muyuan projects and other projects in Brazil and et cetera coming in. The wave turns a little bit in this quarter into that poultry is the biggest driver in the increased order intake. We are seeing turkeys and ducks becoming part of the menu. Of course it's poultry that is the vast majority in the order intake. While in this quarter we were closing poultry, we are around 44% of the total revenues. We are now back on track in the above 50% in the order intake coming from poultry. Meat fully in line with expectation, a little bit lower than first quarter, and then if we look in fish, then we are having a record order intake quarter where salmon is clearly on the menu. Sushi and many other salmons are on the menu. We are having one extra win, I would say, new growth avenue with tilapia in Brazil, the first full line where we are digitizing and as well having sensors in the full line with C. Vale. Moving a little bit to the order intake in poultry, and we will touch on this again deeper. In the turkey, it's the Prestage. We are seeing turkey transformational plant with air chilling like we have been doing in poultry, like with SensorX, like we have been doing in the chicken business, with overarching Innova, with digitalization and sustainability and the focus where the customers share the full vision and values going forward. It's very important. We are as well having some wins in the pet food market, alternatives market, and potatoes market in India to mention few. Overall, if we look at our core businesses in poultry, meat, and fish, the pipeline has been increasing and continues to increase in this quarters. Very nice to see. Definition between pipeline is when we see demand and then we go into contracting, scoping, and et cetera. To recap, Marel only books order when it's prepaid and financially secured. To highlight as well another positive is our ultra-strong cash flow in the quarter. It's a record cash flow of EUR 78 million in the quarter, despite we ramp up inventories by EUR 19 million in the quarter. Here we are preparing while the turbulence is in the supply chain to ramp up, and we will continue to ramp up inventories to secure speedy deliveries throughout this period that we believe could last at least into next year in the value chain, transportation, logistical cost high. EBIT margin is only close to 12% in the quarter, while we are used to 15% and our target is 16%. Many talk about the logistic cost and et cetera. That is affecting us like everybody else at the moment. However, the far biggest driver in 12% EBIT is the lower volume in poultry and our self initiatives. We don't book one-off costs like many other companies. However, our customers are investing in scale and speed. It is needed, automation, digital, and etc. Same applies to us. We are taking very important step in our spare part handling. Spare part business has been growing from EUR 200 million to EUR 500 million, is heading there now in a short period of time, decade, and is then going to continue to grow on the aftercare market. Just to recap, moved 2005, 10% now 40% of our total. We are investing now, reshaping, remodeling, transforming our end-to-end spare part business, and you will hear more about that. You will see it in our capital expenditures starting in coming quarters. We really want to be best in class in answering when will we service, having preventive maintenance, and be a real one-stop shop. The proof of concept that we don't adjust the operational tasks that we are ahead does is simply the operation cash flow. We care about our customer satisfaction. We care about our market share, our performance, leverage the X factors of our people, our global reach, digital, and move forward. The free cash flow that stimulate acquisition growth, stimulate investment in the infrastructure. We paid out as well dividend in last quarter for the full operation year before, and we end up in 0.8x net debt/EBITDA. Ultra strong financial that will be the basis for flexibility and growth in coming quarters. We should move the slides. Here, two sequential quarters in a row, very important in order intake, same message as in the previous slide. Move on. Much better to see the order intake revenues together. Just to highlight, acquired growth in revenues here around EUR 25 million. Nice to see in the order intake that we are seeing, even though we just recently closed TREIF, Curio, MAJA, and many others, we are finally seeing in the meat segment the cross and up-sellings. It's our own innovation, it's strategic partnership, it's M&A, that is fueling further organic growth alongside our X factors of global reach and digital. Nice to see in TREIF, PMJ, and et cetera, we are signing a contract to acquire Valka in subsequent event as well in the quarter. We can talk about that more in closing, we expect closing in later this year. Let's move on. Poultry, 12% EBIT in the quarter, 14% year-to-date. Like we said, we started operationally to split the warehouses in the spare part, started in Boxmeer, the home of the global poultry. It takes a little bit the revenues down in the quarter and as well, the EBIT or the gross margins. However, as well, the soft order intake in first quarter, like we highlighted, where the wave is turning around now. This is not level that we want to see, and we will be back on track in the 16%-20% EBIT area as soon as possible, and at least the order book is getting at that basis that we can organize ourselves better and deal with the fluctuation throughout the system. The nice thing is to see meat at 12.6% EBIT. We have said it again and again to you, dear investors and dear team meat, I hope I have not been too tough to you, Team Meat. We were under par in cross-selling and up-selling 2016 to 2020. We went on together to focus on what are our customer needs geographically throughout innovation team pumping out SensorX Magna, SensorX Accuro, and so on. Acquisition of TREIF, remodeling go-to market, we are seeing really strong order intake there. This is the icing and even the berries on the cake for our customers and ourselves. I have hope that we will continue on a good level here in meat going forward. First, to recap, I have been quite vocal toward my dear friends, our customers in the fish industry. Why don't we move ahead? The pandemic is creating that need for agility to deal with various market channels. We have said we have the solution. Let's move on. We see now that the salmon is moving on. There is quite significant pipeline ahead of us in the salmon industry. The whitefish industry yet to come, and tilapia is now as well moving on a fast track in Brazil. More volume needed, innovation cost quite high in fish segment, where we are closing critical application gaps, taking on Curio, closing hopefully Valka this year, and then Stranda Prolog. Over to you, Linda Thank you, Árni. Thanks for calling in. I'm going to take you through the results of Q2 2021, the financial highlights. Before I start going through the slides, just to briefly summarize, it was a quarter with record order intake, and we see that both for the quarter and the first half of 2021, which is great. Two quarters around EUR 370 million, giving us a healthy order book at a level of close to EUR 500 million, which is roughly 39% of trailing 12 months revenues. Good progress there. Revenues are below what we hoped for, but expected to step up or pick up on the basis of the healthy order book and the record order intake. Aftermarket revenues around 40% in the quarter. We do see on the gross profit level that there is some pressure from mobility and logistical challenges and component costs going up, that is only part of the explanation. The biggest driver there is because we have lower revenues, lower portion of revenues from industry poultry in the quarter than in recent quarters. If I look at the profitability, it is at similar levels as last quarter, 11.8%, where we continue stepping up in the frontline, a bit ahead of the growth curve. We are convinced that is the right approach. If I think about what is most important to see in the trends, it is that we are seeing the pipeline growing in all industries across all processing steps. That we are also seeing that turning into record orders now two consecutive quarters in a row, at the same time where we are seeing a lot of positive trends in the cross and upselling. A lot of good things happening in the quarter for sure. What we also see is record cash flow in line with the growing order intake and leverage of 0.8x. Looking at the quality of earnings, of course very important to have the different revenue streams from the industry split from the geographical diversification and the business mix. To explain on the industries here, underpinning what I stated earlier, we now have 44% coming from poultry, which is lower than last year where we delivered 53% from poultry. This is having quite some impact on the gross profit. Poultry, of course, delivering the highest profitability and now with only 44%. What we do see in the quarter is that the order intake is shifting again. The order intake split is more in line with the historical split on the revenues, which should then underpin improvement and profitability going forward. Revenues by geographies, you can see that on America, same level. You can see that Europe, Middle East, and Africa, 54% last year, now 52%, while Asia and Oceania are going up from 13% - 15%. We have been underpinning that our focus is high in that area. We have been delivering good order intake, especially in meat. It's good to see the development there on the revenue front. From the business mix, aftermarket was 38% last year, now around 40%. We continue with a strong portion of aftermarket, which is, of course, extremely important. Looking at the operational performance, starting with the gross profit, now at a level of 36%. It is lower than our medium-term targets. Of course we have high focus on this. A lot of improvement projects ongoing to improve on that front. It is impacted by higher cost, mobility and logistical cost, and also the part about poultry being lower in the quarter. In addition, we have many improvement projects ongoing, like this end-to-end spare parts journey where we are transforming the spare parts handling. It is a very important project for us. Aftermarket is a crucial part of our revenue streams. Here we are really stepping up and investing in the business to make sure we can deliver excellent service to our customers and as short lead times as possible. On the operating cost, the SG&A at a level of 18.4%, where we continue investing in the frontline in line with our approach, we will continue doing that slightly above ahead of the growth curve. R&D at a level of 6.1% compared to the midterm target of 6%. Here we continue investing in digital. We continue coming out with excellent solutions across the industries. EBIT 11.8% in the quarter. Based on the healthy order book and the record order intake, we are expecting volume and margins to pick up. We also see positive impact from positive product mix that should have positive impact on the margin going forward. Order book at healthy level. We started the year at EUR 416 million. Now we are at the level of EUR 499 million, which is around 39% of trailing 12 months revenues. We feel very comfortable in the area for up 40%-60%. This is a good level for us. It makes it easier to plan and schedule. The book-to-bill ratio in the quarter is 1.13, that is above the levels we have been seeing in recent quarters, underpinning the outlook. Of course, like as before, all orders in the order book have been signed and financially secured. Earnings per share, just to underpin our target here, where we target to grow faster than revenues. You can see here in the quarter that earnings per share were EUR 0.0314 compared to EUR 0.0407 last year, and earnings per share trailing 12 months, EUR 0.1375 compared to EUR 0.1157. We have the record cash flow. We are investing in the business and our target here is to grow earnings per share faster than revenues. Looking at the income statement, starting with revenues, EUR 327 million, growing 7% compared to the same quarter last year. This is driven by acquired growth. Gross profit at a level of 36.2% compared to 37.4% last year. OpEx levels are going up in all areas, in line with our communication, we were stepping up in the frontline. We are stepping up and continuing innovating new solutions for our customers. You can see here that the results from operations are at the level of EUR 33 million in the quarter compared to EUR 42 million Q2 2020. We are comparing to a strong quarter, like 2020 started off on a soft note, Q2 was strong. The comparison here on EBIT level, 11.8% compared to 14.7%. Looking at the net results, EUR 23 million compared to EUR 30.7 million. Midterm targets unchanged. We are focusing heavily on the gross profit, which is now below our midterm targets, as mentioned. SG&A, we are at the level of 18.4% compared to a target of 18%. We will continue stepping up in the frontline. Of course, with the long term or medium term to end at the level of 18%. R&D in line with our strategic target. A few items on the balance sheet to mention, like very healthy financial position. We have been building up inventories since the beginning of the pandemic. In the quarter, it's quite a sizable amount, around EUR 19 million. You can also see here that that has quite some impact here on the balance sheet. Overall, also on the trade receivables, we are seeing that staying at healthy level. There's no change in our payment behavior from our customers, and we can see here on the liability side that we continue getting down payments in for our new orders. You can see that contract liabilities are going up in the quarter, having positive impact on working capital. The balance here, working capital is showing favorable movements in the quarter, getting down payments in, but on the flip side, also investing in inventories to make sure we can deliver on our promises to our customers. We have committed facilities to support further growth. Our leverage is low, 0.8x, compared to a target of between 2x and 3x. We have facilities with maturity in 2025. Strong financial position. Looking at the cash flow, it is at record levels in the quarter, EUR 78 million, the operating cash flow. We are paying taxes of EUR 8 million, close to EUR 9 million. We continue investing in the business, EUR 14.7 million, which is roughly split 50/50 between tangibles and intangibles. Free cash flow of close to EUR 55 million. We pay interest of EUR 2 million. We pay EUR 6 million connected to the acquisition of TREIF, and we also pay EUR 41 million in dividend in the quarter. Looking at our KPIs, nothing changed here. Where we are focusing is on the earnings per share, growing that faster than revenues. It is on the free cash flow where we are delivering very strong cash flow. We continue investing in the business. We continue investing in what is needed to grow the business. We step up in inventories because that is needed, and we have the financial strength to do that, and we pay dividend to our shareholders. On the net debt to EBITDA at a level of 0.8x, even though we did pay the dividend in the quarter, financial strengths are clear. I will now give the word back to you, Árni. Thank you, Linda, for a very clear overview. We will continue to drive our growth with our global reach. Our local team is essential and paramount in those circumstances, and not only those circumstances. We are just in a new era. Fly in, fly out is yesterday. Understanding the customer needs is needed, and as well, keeping all factories running in China, in LATAM, in US, in Europe. It is a sustainability, delicious, high nutrition food that is made in a sustainable way. Let's deep dive on our innovation roadmap. That is as well our strategic partnership roadmap and our M&A roadmap. We are having it in four mainstreams that are very much interconnected. I sometimes call the sustainability and digital the twin sisters out in the market. How can you drive your sustainability journey if you are our customers, for instance? You are committed to TCFD reporting. You are committed as well in your heart to reduce waste, increase the yield, reduce the energy usage, and so on. You have to have access to the data point online. You have to be interconnected. You have to collect and elect the data that is the basis of the foundation of Marel with onboard scales back in 1983 when we were founded or originally started as a research project. I will later in the presentation go on examples on optimization and lines. We will have Capital Markets Day in November, and Tinna will tell you more about that, where we will focus on those streams and the growth. If we move on to digital, then it's very, very important that we are working on digital engines, digital platforms, connectivity, and such. That is not self-standing revenue stream. That is the basis so you can connect, collect, and elect the data. We can see it as the Apple phones, for instance. It's embedded software and hardware. In a processing plant, when you are running multiple processing plants, you all have to be on the same digital platform. Synchronizing the digital platforms is important, and I will give you as well case study where we are doing that as well when we are in strategic partnerships after this chapter, this slide. If we look then go up here in process control on connected businesses, that is a self-standing revenue stream, and we have highlighted it. Still only a low-single- digit, those self-standing revenue streams. We are foreseeing a quite significant uptick and our aim is that three S's, software, service, and spares, will count for 50% of our revenue 2026. What are we now doing different since 2008 and in the past in the manufacturing execution systems, and what are we doing different now than 2018? Our customer, first of all, are working on cloud platforms instead of on-premises. It's hypercloud systems. We are working on standardization, modularization in our MES system. We are working on as well in partnership to speed up the speed to market in the modules. You can think of modules in the MES system just like a standard equipment SensorX or portioning. We are moving on a fast forward in a better, more agile enterprise execution system out there. We are engaging more customer contract in second quarter than we have done more in this field. Pipeline is increasing. It's important for us, it's important for our customers, standardization, modularization, hyperclouds, easier to install, easier to upgrade. What is different going forward as well, when we are on top of the MES system, although fully connected, are apps that come on top of that. Those apps are focusing on specific needs, not specific customer need, specific kind of customer needs. In poultry industry, in fish industry, how can we change the industry to demand-driven instead of supply-driven? How can we make throughout the day the right portions. You have seen the operation results from some of our customers that they said that they were not able to play the mix game due to lack of optimization and due to lack of agility and communication throughout the system. Just as an example. Other examples are in productivity, yield managements, and et cetera, where we will provide the apps on top of it that are easy to install, easy to integrate, and are self-standing revenue streams as well. We'll see launches of those in the coming quarters, and we will deep dive into this in our Capital Markets Day in November, that Tinna will give us further insight into. Happy to answer questions as well in those fields. Of course, we will not give fully under the hood exactly where we are heading each time. You will see a quite significant marketing around launching of the digital apps or digital solutions that are coming out in the market. Let's move on, sorry, into strategic partnership with TOMRA. Before we go there, it is very important that we remember that one of our unique solution in Marel was born 15 years ago with SensorX. SensorX is detecting the bones, making sure that you get the bone-free portions, chicken nuggets or chicken or fish. Bone and fish moved over to the chicken industry. Very important we came in inline solution because we could do it with overarching software Innova. We could outpass and in-pass at ultra speed without false alarm and as well without dropping the yield. We are seeing increased need for detection of plastic, wood, and other soft contamination. We as well have looked in past how can we speed up time to success or as was called time to market. We call it now time to success. How can we commercialize our product? How can we make it free for sale? How can we penetrate the market faster? TOMRA was founded at similar time as Marel. We share the vision, we share the culture of innovation, passion for making the circular economy better, and make a safe food and recycling the plastics like TOMRA is doing. Why not teaming up? I am very, very pleased with the cooperation and true partnership that we have been working on. I've never seen any speed like this to market. Here we are launching it, and please look for one and a half minute on the video we will provide now because our team members that have been accountable for those projects in TOMRA, in Marel, can explain it even better than me. We at Marel are proud to be enriching our product offering to our customers through our own innovation, through mergers and acquisitions, and through innovation that we do in partnerships. There we only work with those that are best in class, and TOMRA has for sure proven to be such a partner. With innovation at the core of what we do at both TOMRA and Marel, we have the same driven values and vision. We have known for a long time that Marel is leading the food processing industry, and this with innovative solutions in both hardware and software. Combining this with TOMRA's cutting-edge technology in partnership of pioneers, this is certainly creating a lot of value and a lot of leading edge for the food processing industry. Every innovation, every milestone on our journey is in close partnership with customers. That's the bedrock of Marel's success in transforming poultry processing. By being close and listening to our customers, we know how much of a challenge plastics and other foreign materials are for them. This is why we are investing so much in developing this new solution with TOMRA. After successful collaboration on several products, we are very excited to be introducing a new co-development to the market. This is a game changer when it comes to foreign material detection, and you will hear a lot more about it throughout 2021. I'm at least very proud when I see this and what the team has accomplished. The excitement by our customers is quite significant. We will start in the poultry industry. We have already tested it out in the field. We will launch it in the coming months. However, when I talk to customers in other industries, in the pet food industry, in the fish industry, and the meat industry, the excitement is a lot. We all care for high nutrition, safe products that are produced in a sustainable way. This is a great example on how that dynamic are changing. Remember, we are doing this in the pandemic period, mostly in partnerships, working together here, two great teams, TOMRA and Marel, and are here seeing the proof of concept. Let's move as well, because we are in a full line business, optimization in the line business. Air chilling is on the agenda in the poultry industry, in the beginning of the industry, instead of the water chilling. You achieve high nutrition, you achieve as well more sustainability, and you achieve the prerequisite so you can automate other processing stages in the process. Here is digital and sustainability in focus. Really a customer that shares the value with Marel and another customer in Brazil, C. Vale, moving into the tilapia on a high speed. Really interesting to see our regional team in LATAM and our fish team and the customer working together how to make the best example of standard lines into the tilapia industry. Tilapia, if you don't know, is a farmed white fish, fast-growing one. The situation in Brazil is such that most of the soybeans are made in Brazil. They have been exported to other countries that are making tilapia. We have one of the cleanest waters as well in Brazil that is moving on ultra speed in natural environment, or in clean water that we need to recycle. We have the solutions for that as well, and so on. Very interesting, because in the end, we want all to balance our diets. It's vegetables, it is fish, it is poultry, it is meat. Some go rather for alternatives, and then we need solutions for that, and so on. It's all with the same aim, Decrease the pressure on the globe, and let's get high nutrition and better quality products. Just an example, automation lines, sustainability, every single innovation project in Marel needs to score in the sustainability roadmap in beginning. We take it very, very seriously. The twin system, digital is the biggest enabler in the sustainability, increased production, efficiency, and so on. Here I just put up the financial targets, no news here, unchanged, fully confident moving forward, 16% EBIT 2023. Fully confident on our growth story, acquisition growth, as well as the organic growth and strategic partnerships. If you could just flick to the next slide. Before we dive into Q&A, a quick teaser for our upcoming 360-degree mini-series of Capital Markets Day events scheduled in the autumn. The objective of the 360-series is to give you a comprehensive overview of our innovative food processing solutions, our global reach, the great strides we're taking on our digital and sustainability journey, and of course, our fantastic and passionate team, Marel team worldwide, that together form the engine behind our ambitious growth plan. The first of these thematic mini-series of virtual Capital Markets Day events will be a virtual site visit to Marel's headquarters, our manufacturing facility, and innovation cluster here in Iceland. We will also get the privilege of visiting one of our most forward-thinking customers in the fish industry, Brim. The virtual site event is scheduled for September, and we will hopefully give you a sense of what it's like to be with us here in person without the quarantine and travel restrictions. Q&A, let's have some questions. I would like to hand over to the online conference call operator. Over to you. Thank you. The first question comes from the line of Akash Gupta from JP Morgan. Please go ahead. Your line is open. Yes. Hi, good morning, everybody. My first question is on the pipeline that you track. Can you give us some sense in terms of the size of this pipeline and how much it has increased year-on-year so we know what to expect in the next 6-12 months order intakes? If you can give us some kind of information on how much this pipeline is tracking, and also if you can split it out by segment, like how it is looking between poultry, meat, and fish. The follow-up question is on the magnitude of COVID-19 headwinds that impacted gross margins in both Q2 and Q1. Can you tell us what would have been underlying margin, if we haven't had these headwinds in terms of restricted access and logistics, et cetera? Thank you. Thank you for the question, Akash, and it's interesting to see. We started to highlight in middle of last year that the pipeline was increasing. Some people just ask, "What is pipeline? Why are you talking about pipeline?" It's very important because we work, of course, with our customers with excitement of where to head and with our customers, and they need to get the investment confidence to move forward. Our big Costco transaction, for instance, took three years, visiting Europe, all the customers. We are now having reference plant in Costco in U.S., Bell & Evans, and now this new Prestage one. Pipeline has been building up. Conversion into orders where we get prepayments, you saw the cash flow showing the strengths of our customers and ourselves, started to tick in in meat in first quarter, and now on ultra-speed in poultry and fish in second quarter. Pipeline continues to build up in all of the industry. Like Linda said in our last business review meetings, Árni, I've never seen our team so optimistic after the meetings, so much excitement by our customers. Of course, we cannot fully time when we close the orders, but the data set we have in front of us is that we will continue on this high momentum, and I was maybe a little bit bold when I said last year when I was asked, "When are you on new level in order intake?" I said, "Let's say that we are more confident that we are on new level when we get two sequential quarter in, and moreover, when we have the pipeline strong." Linda will take the gross margin question, but I have to say the COVID effect, it's more our own initiatives and the volume in poultry that is having that effect because don't forget, underlying, we are always improving the profitability, and we are pretty tough on ourself. We can use all kind of excuses from the external environment, but we have levers to deal with it, and our customer need us. They need optimization, and as the COVID prolongs, we need to move forward because our consumers need affordable diet that is high nutrition. That's as simple as that is. Linda? Exactly. On the gross margin, I would say if we compare the quarters, like now Q2 versus Q1, versus last year, we are not seeing a lot of pickup from COVID impact. The excuse is not there. The reason for the low gross margin in the quarter is mainly because of the poultry impact, which should then improve quite quickly looking at the order intake. If I think about COVID in general and all the complications it is giving the operations, and that has to do with people not being able to get to the customer site, the travel restrictions, that people cannot always show up for work, et cetera. If we combine that all, that is definitely impacting the gross profit, perhaps close to a level of 2%. We need to just continue with our improvement projects that we are working on that will drive the gross profit to a level of around 40% in the midterm. I think that's the only thing I can really comment on that question. Yeah, maybe just to add, our team is doing fantastic work, and of course, it's not easy, the COVID situation. People are dealing with it. We will take our summer vacation here in Europe and U.S. now. It will partly affect the third quarter that we, based on the order intake and the flow, we could maybe go higher then, and then we will see the real uptick from fourth quarter and onwards. Of course, it's not easy. The passion and the partnership with customer and suppliers is the key. Thank you. The next question comes from the line of Klas Bergelind from Citi. Please go ahead. Your line is open. Thank you. Hi, Árni and Linda. It's Klas at Citi. I have two questions, please. First, very good to see the orders, obviously. I want to come back to the gross margin. Now into the second half, and I think you talked just right now about the 2% impact, roughly, from the combination of your self-help efforts on the aftermarket and then a little bit of COVID impact. Effectively, would that imply then that we should go to at least 38% gross margin in the second half when these things abate? I assume that 39%+ would be too early. Just to understand the phasing into the second half, I'll start there. Again, the pipeline and the order intake, of course, it's very good to see poultry back on track. It means that our customers are gaining investment confidence. U.S. is particularly strong becoming in the pipeline buildup after some softness in recent quarters. That matters a lot. It's a very, very important market for us, not only in the U.S. We are following as well our U.S. customers in their global expansion into Asia, Korea, Vietnam, China, and so on, plus the domestics there. Pipeline building up further in the poultry. Fish segment at record level continues to build up even faster there. Meat was the first to catch up in first quarter due to the low order intake in the past. This is our model, balancing things out in processing stages in industries and et cetera. Pipeline is the driver, and we will see that drive. Very important question from you, it was our call to move forward in strategic moves and reshape completely, like our customers are doing, their end-to-end spare part business. This will not only be in this quarter, even though the magnitude is higher in second quarter. Having always classification of non-recurring items, it just complicate things. Look at our EBIT, look at our cash flow and et cetera. Correct, yes, Linda, go into the margin, how much and how quickly. Yeah, exactly. We will go back on track. Yeah, around timing, we are more talking about the second half of the year instead of going specifically into which quarter we are talking about. I don't want to go into the seat of saying when COVID is going away and when things will release in that area. From a mix point of view, looking at poultry picking up, we should see improvements in gross margin in the later half of the year. We are also seeing product mix in general being positive in orders coming in. That should also impact the gross margin in a positive way. We will need to see how COVID trends and what you need to think about there as well, even though this is having impact on the gross margin, we are also seeing less travel on the OpEx front as well to counterbalance that a bit. It's not like it all comes back to the bottom line EBIT. As stated, we are expecting volume and margin to go up in the second half of the year. I think it's very important what Linda was mentioning. Prolonged situation, not good for anybody. Comparable, we believe we are very well fitted to deal with it, with our global reach and digital platforms. All in all, this should accelerate the organic growth and moreover, the acquisitional growth. Let's hope it will not prolong, and we will see some solution on it. Some of the questions we get, what about the raw material prices and then prolonged COVID? Those are competing factors. Please don't put everything on one side, half full or half empty glass. It is a balancing act where you have to be very dynamic and have a courage to invest and move forward, both customers and ourselves. Before I continue with my second question, can I ask if you can hear me okay? Yeah, we are fine. Okay. Very good. Before asking my second question, as I said, very good to see that the orders are strong, but I still need to ask about the phasing of the gross margin as part of what we do here on the sell side. Moving on to my second question on meat and the 12.6% margin, which was very solid. If I hear you, Árni, this is now evidence that upselling and modernization is increasing and that the business starts to operate a bit more like poultry, so that you can increase the standardization in terms of executing larger projects. Longer term, Árni, you've said that meat has potential to close in on the poultry margin. We've seen a 12%+ margin before in a quarter, This feels more like a new higher annual level when I listen to you. You have to confirm, Árni, is the 12% sort of a new higher level for meat to grow from? Yeah. First of all, we have said that we want poultry closer to 20% and realistic to have meat and fish above 15% long term. 2023 target is a little bit lower for both of them, and we will maybe go a little bit deeper into that, but 2023 is the first target. Our aim was not to do like was the second quarter, to get them even Steven by getting poultry lower. We believe we can operate in 16%-20% EBIT level in the poultry segment, and we believe that there is no reason why we should not operate above 15%. What are the reasons we are operating on 12%+ EBIT in meat? First of all, it's the team. Upgrading the skills in the team, the management, investing in more global reach, market coverage, aligning where we are heading with the customers, and et cetera. It's project execution. We are out of projects. Remember, projects in meat take usually longer than poultry. From the era two, three years ago when we were in African swine fever, and turbulences, and some of our competitors have been belly up since then. We are out of that. We have been focusing on project execution that we didn't account for in one-off costs by advisors throughout how we can get the seamless flow, just like we are advising our customers there. The biggest driver is the icing on the berries on the cake with all the new equipment that we are introducing, SensorX Accuro, SensorX Magna, TREIF acquisition, and then we see the TOMRA- Marel fruits coming into the market with the Spectra that starts in poultry and go across all the industry. This is where we are working, and there is no reason why we should not, but I'm not going to promise you that we are fully yet there. We have seen fluctuation in the past, but it's very convincing to see the team and hear our customers where they want to head. It is a very conventional industry that is taking very important steps to move forward. Thank you. Thank you. The next question comes from the line of Eric Wilmer from ABN AMRO. Please go ahead. Hi, good morning, everyone. I was wondering what is keeping you from providing a full year guidance, despite the fact that the order book should provide good visibility into Q3, and with the pandemic expected to fade as more and more people get vaccinated? That is my first question. We avoid giving guidance, but while we were 30%-40% of revenues in aftercare, it took us on average two and a half quarter from order intake to revenues, just to give you some numbers. We should be a little bit quicker now. It depends a little bit on the composition of poultry, meat, and fish. Processing stages and et cetera, we are looking into if we should give you some further splits there. We have decided to color it a little bit more now, by that the order intake in second quarter is more or less with our revenue recognition composition in 2020, with the exception that we are having higher levels of, for instance, software and the secondary processing standard equipment. We cannot give more guidance than that. Okay. Understood. Perhaps the second question, this is another question on gross margin. You clearly stated that you will continue to heavily emphasize on your gross profit. Does this mean that you intend to push higher raw material prices to your customers in the coming quarters? A little bit more color on that would also be helpful. Thanks. We will take multiple actions as well, and you can do it in many ways. We decided to be cautious in Q2. Came a little bit more transportation cost on our shoulder, when in general it cascades to the customers, but it's a long lead time, contracts and etc. We believe that we are in competitive position to adjust the prices out in the market, and we will do so. More important is the mix and volume to take up the gross profit and as well get the speed and scalability as we are working on with spare part initiatives. It's not our biggest concern at the moment, to be honest. It is availability of parts, it is the speed and agility and getting more revenues and better industry mix while the product mix is improving. Understood. Clear. Thanks. Thank you. This now concludes the Q&A, so I will pass back for any closing comments. Excellent. We also have an emailed question from Andre Mulder of Kepler Cheuvreux, and the question reads: What is the split in sales growth between organic and acquisitions? As I commented a bit on, in Q2, if you compare the quarters, it is driven by acquired growth. Around EUR 25 million is coming from acquisition. Organic growth therefore at close to zero level. One thing in addition to keep in mind, we do see quite some FX impact as well, year to date, both from the dollar and the Brazilian real that is impacting revenues by around EUR 20 million. We don't use it as an excuse because it's clear from our order intake and our order book that we need to grow organic revenues as well to deliver on our promises to our customers. Okay. His second question is, you mentioned a rise in component cost. Would you add more detail to that in terms of what that is and the size? No. We are reluctant to go more detailed into that, this is just, it is lower in our case than many other companies. Getting the parts on right time from us to the customers and to us from the suppliers and getting more transparency and digitizing the chain is much, much greater factor. Raw material prices will fluctuate. Our competitive position is such that we will cascade that into the system. We are more dynamic as a global leader than most of our peers. I would not highly focus on that piece. It could delay maybe quarterly result by one or two quarters, but it's not a long-term effect. Excellent. Indeed, many interesting questions raised here today. However, we will have to conclude. I sincerely thank you all for your time, your attention, and continued support for Marel. We hope you enjoy your summer holidays. Take care and stay safe.