Welcome to the Addtech Q1 presentation for 2024. During the questions and answer session, participants are able to ask questions by dialing star five on their telephone keypad. Now, I will hand the conference over to CEO Niklas Stenberg, and CFO Malin Enarson. Please go ahead. Good morning, and most welcome everyone to Addtech's first quarter report presentation. Today's setup is that Malin and I will use approximately 50 minutes to summarize the highlights and give our comments to the results, and followed by a Q&A session. All in all, the new fiscal year have started off in a good way. In general, the customer activity remains stable at high levels, resulting in a solid net sales growth of 7%, of which 2% organic growth. We also continued to strengthen our profitability. EBITDA is up 19% in the quarter, with a very satisfying margin of 15.3%, and also a further improvement of our profit over working capital. Cash flow continues to be at very good levels, and as you have noticed, our acquisition pace was high during the period. More about that within short. A bit deeper into sales, as I already said, a high activity in all business areas. We grew net sales 7%, and as I said, we are back to organic growth with 2% in the period. And as you see in the lower graph, it was broad-based with the highest contribution from Electrification and Process Technology. Customer activity, as I mentioned, is stable at high levels, all in all, but it's variations between and also within segments. I will come back a bit more into details about market development. We strengthened the profitability and the positive margin trend continued. We reached a new record level of 15.3%, and rolling 12 at 14.7. And I must say, it's very satisfying to see that the effect from our long-term initiatives to increase added value in our proposition, meaning more own and modified products and solution and improved product mix. And this is partly cutting tails that we always do, but also taking down some, some volume business. So the product mix is very on a good level. And of course, our focus to acquire more profitable companies. So good contributions from acquisitions as well. All in all, EBITDA up 19%, and as you also can see that it's good contributions from all business areas. Also, P/WC, or profit over working capital, surpassed the new record level, 70%, and cash flow continued to improve. Malin will come back with more details on that. So a little bit brief comments on each business area. Automation had in total a solid business situation with a stable sales development compared to same quarter last year. On the positive side, good sales trend towards process industry continued, and same goes with companies delivering to defense sector. Mechanical industry stable, different in different geographical areas, but all in all, stable, and a slight drop in MedTech, and that is due to a softer demand during the fourth quarter. And also we have tough comps year-on-year this first quarter. Also, Electrification delivered a solid quarter. Business situation continued to vary here as well between segments. Positive development in Electrification of special vehicles, also mechanical Industry and Energy, as well as defense. All of these sectors a stable to positive development. Data telecom and building installation remains weak, and the electronics as well as MedTech developed more flattish. We've been talking last year quite a lot about the battery group, and here we can conclude that the situation has stabilized as we had foreseen. So the market situation is gradually strengthening, giving that the high inventory levels that customers have have been pretty much phased out. So we are more in a normalized situation there. Business situation for energy continued on a positive note with stable net sales, and the key segments infrastructure products for electrical transmission and also niche products for power distribution remained very good. Overall, the market situation was stable in the mechanical industry, still weak in the building installation sector, while wind power demand continued to show positive signs. Data telecom varied. The build-out of fiber optic networks have been weak for quite some time now, and it remained to be weak, while electrical components to data centers developed in a positive way. Industrial Solutions, stable as a whole. Or if you look on sales, the sales toward the forest and sawmill industry remained at high levels, with strong project deliveries, with good profitability. The market for new projects is still a bit on hold, and as we've been mentioning, before, this is still due to high interest rates and the weak construction market. Manufacturing industry, special vehicles continued to be flattish, on the weak side when it comes to special vehicles, especially on construction machines. So this is also partly relating to the weak construction market. And here we can see that some of our bigger OEM companies are signaling a slower demand for 2024. Other niche segments, such as waste management and subsea, that is quite a new area for us, but that showed a good development. Last but not least, Process Technology delivered a very strong first quarter, basically across segments, and sales were also boosted by a large amount of deliveries to a couple of customers. If you look on demand, energy, MedTech, process industry, in general, stable. Marine remains good. A bit weaker in special vehicles here as well, as I mentioned in Industrial Solutions, and also forest industry. And also, the aftermarket business was a bit weaker, year-on-year. So all in all, for Process Technology, really strong sales, but somewhat more soft on demand. So that was a bit brief summary of the market situation. Over to you, Malin. Yes, thank you. As we said, our profit margins continued to improve during the quarter, and as you mentioned, Niklas, it's in general, thanks to active work to increase the value add in our value proposition and to make sure to charge for it, strategically improve our product mix, and not least, of course, good leverage from acquired companies. I would also like to emphasize that we continue to keep a firm grip on the costs. Very pleasing to see that the cost efficiency continues to improve quarter by quarter. The strong long-term development is broad-based, but one of the key driver is, of course, the positive effects within Industrial Solutions and their good margin project deliveries. The hike in Q1 for energy is primarily driven by an improved product mix, good pricing power, and of course, also solid contributions from recently acquired companies. For the group, we expect margin to persist around the rolling twelve level, with gradual improvements, through the year. Inventory levels is a key focus area for our companies, of course, still, despite the slight increase in Q1, mainly due to the season and the bunkering ahead of the summer, and effects from high pace of acquisitions. I'm very pleased with the long trend, both in absolute terms and also as an improvement in relation to sales. Our long-term target, profitable working capital, surpassed 70% in the quarter, continuing to generate solid cash flow. Our operating cash flow have improved both quarter by quarter and rolling twelve, which is primarily related to the increased profit. Our financial, position remained strong, with sequential improvement as expected. As you know, the key figures do vary over the year, but are at very reassuring levels for the moment, which gives us plenty of headroom to support our ambitions going forward. So back to you, Niklas. Thank you. So some words on acquisitions. We have had a good start to the year, that I mentioned in the end of fourth quarter. We did foresee a strong start for this year. So we did four acquisitions during the first quarter and continued after closing with three more, the latest one, actually, this week. An Italian company we have known for many years, Romani Components, that strengthen our position in Continental Europe when it comes to linear products within automation. We have several companies already in the group, with similar offerings and also with good margins here. So all in all, seven well-run, high-performing companies that we have welcomed, adding some SEK 860 million in turnover, approximately, with good profitability. It's also great to see that our efforts to grow on the international market continues. And my take on the acquisition market going forward remains positive. We have a well-filled pipeline, a continued firepower, and plenty of possibilities in our focus areas, both from a geographical point of view in the Nordics and northern part of Europe, and also looking at our selected niche segments. So as a summary here, as I said, we have started the year strongly. We have not changed our general growth profile or strategy, which means that you should not calculate with this the same high pace going forward. We are not lacking opportunities, actually, the other way around. But again, our long-term growth plans are consistent. So let's summarize and look ahead. Very pleased with the first quarter, of course, and high activity and good contributions across the line. Despite some hesitation, as we say, in the outlook, there is some hesitation in the market still, and continued variations between segments. But we grew our top line and improved the profitability in a very good way. High pace of acquisition, and it's to me, it's becoming increasingly clear how scalable our model is and how well it works regardless of geography. The economic situation is still uncertain, as I said, and some hesitation we can see in CapEx-related investment decisions. So, of course, we keep a clear eye on the development. But we have well-filled order books and, as I always say, our ability to quickly adapt to new market conditions, irrespective of taking opportunities or handling challenges, we have a very good way of making quick decisions. So we are all in all, positive to the coming quarters. With that said, let's open up for questions. If you wish to ask a question, please dial pound key five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key six on your telephone keypad. The next question comes from Johan Skoglund from DNB Markets. Please go ahead. Good morning, Johan from DNB here. A few clarifying questions from me. The first one is on organic growth already in Q1. Good to see. Is there any Easter effect here or any other extraordinary dynamic that we should be aware of? Hi, Johan. Good morning. What was your first—you said, is there any? Easter effect- Okay. From working days, et cetera. Yeah. I mean, it might be, of course, some Eastern effect. I mean, our fourth quarter was a bit on the weaker side, and there we explained it partly due to Eastern, so it could be some spillover effect. Apart from that, as I mentioned, it's in Process Technology, very strong delivery on sales. And as I mentioned, a couple of strong deliveries to a couple of customers, partly in the pharma sector. So a little bit boost effect on Process Technology. Okay, thank you. And are those boost effects, are you able to quantify those roughly? No, I don't think we will go into that detail. But I think... I guess my point is that, you know, as I also mentioned, part of the demand in Process Technology in some of the segments were coming down a little bit in the quarter. So you should not extrapolate this strong growth in Process Technology in the coming quarter. So a more normalized situation is what we would foresee. Good. I think you answered my next question there. So just a final one from me here. On your plan to acquire more profitable companies, do you see any multiple difference here on these compared to the lower margin companies? Yeah, that's, that's a quite common question we, we get. And the short answer is, is no. We, we still have the same, pretty much the same, multiples. Of course, it varies from case to case, but all in all, when we look at the multiples, so far, what we have acquired is still on the same level. And I would say this is partly due to how we work on acquisitions, the relation-based process we have. So, and also that is still pretty, pretty small companies still that we are acquiring, so still, still the same, same multiples. Okay, very good. I'll get back in line. Thank you, and good luck with Q2. The next question comes from Zino Engdalen Ricciuti from Handelsbanken. Please go ahead. Yes, hello. Thanks for taking our question. I've questions, I just have a couple of, couple of ones here. If we start with in Electrification, how can you assess the positive impact that comes from maybe a better market compared which comes from a result of customer coming back after previous overinvestments? Hi, good morning. So, your question is, how much is driven by some kind of mega trend, and how much is just coming back to a normalized situation? Is that your question? Yeah. Yeah. It's a good question, but it is quite difficult to answer, actually, because it's, of course, a combination of the two. Yeah, I'm trying to think a good answer here, but it's... yeah, it's really a combination of the two. It's difficult to quantify. Okay, I get it. And just secondly, on you mentioning energy that the sales towards data halls were strong. Could you say how, roughly, how large exposure in that segment is towards data halls? Yeah, I mean, it's not that big. I mean, like, the biggest part in Energy is the transmission and distribution side. Apart from that, you know, we have several different sub-segments we deliver to, but so all in all, in the group data halls, let's say, I guess I have to do some calculations here. I would say maybe some roughly 2%-3%, maybe 2%. Okay. Okay. And just very lastly, on Process Technology, I think you've been very clear with how we should look on it forward. But if you're looking on the other exposures apart from this large deliveries, you highlight that marine was good, but the other segments were flat or weak or in the underlying market. Just an aggregate on the others, would you say that it's just rather flattish, excluding this very good delivery? Yeah, I, I would say that's, that's a good, good view. I mean, all in all, I would say, I mean, we talk about this, a kind of a solid, solid situation, and if we, if we look on, on, on, demand, as a group, is, like, like the sentiment and, and what people are saying, some kind of a soft landing. And, I would say, all in all, that is, pretty much what we, what we feel. I mean, we have good order, order books, which gives us, comfort, but, on, on the demand side, it's, it's kind of a flattish situation with variations. But in process, yeah, I would say, if you take that out, it's, it's kind of flattish. Okay, very good. Thank you. That was all for me. The next question comes from Johan Lönnqvist from Carnegie. Please go ahead. Good morning, Niklas and Malin. Thank you for taking my questions. Yeah, I joined the call a bit late due to another company reporting this morning, but just to ask on the kind of Process Technology again, and if it's possible to give some more color on what type of one-off project this was, 'cause there's other companies with exposure towards the pharma industry that see a strong market and more talking about structural trends rather than the one-off. It's possible to give some more colors, please. Yeah, I mean, we also see a structural growth in biotech and pharma sector. So absolutely long term, we see that. So in the Process Technology side, we have part exposure there. I mean, for us, process industry in Process Technology is very, very broad-based, but in this sector, we definitely see a structural growth, but more, how to say, more a steady, stable growth. In this quarter, we had the... I mean, I'm not going into details, but it was primarily a couple of customers, one relating to the pharma sector, strong deliveries from previous ordering, and the other one was more relating to an insurance situation for one other customer in a totally different sector. So, yeah, I don't know if that's answering your question. We do see a good, stable, underlying growth, but more on a kind of a normalized growth. We haven't seen these hikes in Process Technology really before in this sector, but it's clearly one part that is giving good delivery for Process Technology. We have also done a couple of acquisitions that are exposed to this sector, so this is also giving positive development. Great. And just, just also given the comment of, from Malin, were there any specific kind of project deliveries in the Industrial Solutions worth highlighting this quarter? I think I can answer, because you look like you didn't- Yeah ... understand the question. No, you will understand- No ... the question, but it's usually, it's Uh-huh ... important to you, I guess. Oh, yeah. No, yeah, no, I think what, because you mentioned the, that- Yeah, the strong margins- Yes ... in Industrial Solutions. Yeah. Yeah. And that- Yeah, maybe I can answer- Yeah, yeah ... anyway. So, I would say that, for the moment, they have very good projects, with very good margins. And I think we also mentioned it in Q4, that, it, of course, depends on when the project has been sold, and then, of course, the underlying pricing. So for the time being, they have good margins there. Even though the baseline margin there is always good, it's a bit boosted for the moment, exactly for the same reasons as was in Q4. ... But I think it's also important to highlight what you also mentioned now, that we have good contributions, both from acquisitions and also the underlying margin is good. So I would say you should not overestimate the effect on this project deliveries. No, not think that it could also be very weak because it is strong margin business. Exactly. Yeah, that's clear. When we're talking about Industrial Solutions, can you give some more color on the order side, specifically on the sawmill side, which has been discussed quite a lot in the last few quarters? Yeah, I mean, it's still as I mentioned, and as we write in the report, it's still hesitations. We have quite a lot of discussions and projects, but there are hesitation to make kind of final decision, and that is some different reasons behind it. High price on timber, that's one thing, affecting the profitability for the sawmills, but also the weak construction sector and high interest rates. So it's kind of that combination that it is still giving the kind of hesitation. Even though we have some signals that it's pretty much reaching some kind of bottom, but the clear order intake or final decision here is still a bit on hold. The current order situation, how many quarters do you cover? Is there any big difference compared to message in May? No, it's no different. So I would say couple of quarters ahead. Great. Two more questions from my side, if I may. The first of those are on the year-on-year EBITDA growth. Is it possible to kind of quantify how much of the year-over-year EBITDA growth was related to acquisitions? So I guess the companies that you acquired recently has had much higher margins than the group average. Yes, that is true, but it's also actually, it's also really good contribution also from the organic side. So, it's really a mix. So is it possible. Can I divide it 50/50 from acquisitions and organic- Yeah. in this specific quarter? Yeah, pretty much. Yes. Excellent. And my last question is for Malin on the cash flow and the balance sheet. I heard your comments on the kind of cash flow development. I note that the inventories are down, while receivables is up. Is there any reason why receivables is up? Because I guess if you are reducing inventories the way you do, you should have a better kind of cash conversion than you have in this quarter. Yeah, of course, if, if you first just look at this quarter, isolated, I think that, the, receivables are up due to the fact that we had good, invoicing in the beginning of this quarter. If you look at the cash flow, it's actually so that last year, it-- we had-- If you compare last year to this year when it comes to cash flow, so last year we had a completely different situation in the accounts receivables during Q1, due to a very, very strong invoicing in Q4. So that's why they have developed very differently if you, if you compare last what- First quarter with this first quarter. But if you just see the development on the balance sheet, it's. It depends on, of course, when do we have the invoicing before? And it has been strong during the quarter. So that's why there are more receivables now than last year. And I think we would- But also- Inventories also, if you compare to last year, it's down, but if you compare to Q4, it's actually up a bit, as I mentioned. Receivables, you, you referred to. Organically down from last year. Yeah. Okay. Yeah, maybe we can take that in a separate conversation afterwards, to go through it in more detail. I think I'll stop there, get back in line, see if there's more questions from the people. The next question comes from Karl Bokvist from ABG Sundal Collier. Please go ahead. The next question comes from Johan Lönnqvist from Carnegie. Please go ahead. As a reminder, if you wish to ask a question, please dial pound key five on your telephone keypad. The next question comes from Karl Bokvist from ABG Sundal Collier. Please go ahead. ... Hi, can you hear me now? Yes, yes. Hi, Karl, we hear you now. Hi. All right. Okay, great. Good morning. So- Good morning. Just, my first one is on M&A. This quarter alone, I understand it's just three months or not even that perhaps, but it seems like the companies you've acquired so far have had very high margins, and I'm just curious, you know, it's... On aggregate, it looks very good, but is there one or two in particular that drives this? Yeah. So when you say the margins in the quarter, you talk about the acquisition effect in the quarter or the acquisitions that you made? Yeah. The contribution that you talk about recently acquired companies on profit and sales. Okay. No, I would actually... Of course, it varies, certainly, and maybe there is one company that contributes even more on the margin. But really, all in all, I would say it's more broad-based. I mean, it's good deliveries and strong margins in the absolute majority of the acquisitions. So yeah. Understood. And then the comment I believe you made, Malin, about pricing power, and so on. Without perhaps... I understand you might not be willing to quantify, but compared to, like, the what we saw a few years ago, where the pricing component was pretty significant, is it still, you know, a notable portion, now? Mm. Good question. It's, Yeah. Let's, let's think. Yeah. What do you say? Now, I would say, I don't think the price component, it's so much in this. It's clearly more volume driven. Absolutely. Yeah. It has been all the time as well. So- What you mean? Yeah. Yeah, but, I mean, if we said 30, 70- Mm-hmm ... before, when we had this very special situation- Yes, yes ... then it was also mainly volume driven- Mm ... as now. Yeah. Uh- But now- Now it's more back to normal, I would say. Yes, absolutely. Absolutely. So, so, Great ... yeah. So I'd say the pricing power now is, I would say, more relating to the fact that we are able to uphold the pricing levels. Of course, there are variations and discussions with some customers about lowering prices. We have all of these kind of discussions. So I think the fact that we are now able to uphold the pricing levels is more like that. In general, it is like that. Yeah. I think also I commented in energy specifically- Mm-hmm ... and there, it's, I think it's depending on what kind of project- Mm ... that they have very good pricing power in some kind of projects, which- Mm ... then, of course, affects some quarters. Mm-hmm. Understood. And my final one, the segment you... When you disclose the sales into, like, data and telecom, electronics, et cetera, the segment called other, I realize other simply might include a lot of different things, but are there any more sizable end markets in that segment? Because it seems to have been growing very nicely here. Yes, it's like you say, it's a mix of different things in other. The main driving sector here is the defense sector, clearly. Mm. So, defense is, let's say, around 3% of our total sales in Addtech, so it's still quite low, but the big driver in other segment is defense. Mm. Okay, understood. That's, all from my side. Thank you. Thank you. There are no more questions at this time, so I hand the conference back to the speakers for any written questions and closing comments. So thank you for listening in, and thank you for, as always, good questions. And, to summarize, we are happy with the quarter, of course, and, then we wish you a great summer. Yes. Bye-bye.