Good morning, and welcome to Ahlstrom-Munksjö's first quarter results presentation. My name is Johan Lindh, and I'm Head of Investor Relations at Ahlstrom-Munksjö. We'll start this event with a presentation from our CEO, Hans Sohlström, and our Deputy CEO and CFO, Sakari Ahdekivi. After the presentation, you have the opportunity to ask questions over the lines or using the chat box on the website. With these words, over to you, Hans. Thank you, Johan. Good morning, ladies and gentlemen. We have a record strong start of the year. In Q1, we had an all-time high quarterly net sales of EUR 990 million, up 27% year-on-year, as well as an all-time high quarterly comparable EBITDA of EUR 122 million, up 14% from previous year Q1, which was the previous record quarter. Our cash conversion rate was on a good 90% level. In the quarter, we experienced a challenging operating environment impacted by the war in Ukraine, COVID-related lockdowns in China, supply and logistic disruptions, as well as, record input cost inflation, with raw material and logistic costs up 30% year-on-year, and energy costs up 50% from the comparison quarter Q1, of last year. Thanks to continued solid demand on a good level, successful execution of our commercial strategies, efficiency improvement, and cost-saving initiatives, we delivered record strong performance. In the quarter, we completed the acquisition of Minglian in China. This is a strategically important step in creating a world-leading decor paper business. To support our strategy execution, we are implementing an operating model with a new reporting structure as of July first. We will revert with more information about this in the third quarter. Next page, please, Johan. Demand continued solid on a good level, and net sales increased to a record level. Our top line was up 27%, mainly thanks to higher sales prices. Out of this, 27% increase, the acquisition of Minglian in Q1 represented only 1.5%, roughly. Almost all of the growth was organic. Business area Decor Solutions grew 36%, and 26% excluding Minglian. We had the strongest organic growth in business areas Industrial Solutions, Food and Technical Solutions, which were up 33% and 32% respectively. Filtration and Performance Solutions and Advanced Solutions grew 20% and 18% respectively. Thanks to our high added value sustainable specialty materials businesses serving a broad range of customers and end users worldwide, as well as our long and deep customer relationships, we have strong market positions and a very resilient business, clearly demonstrated in our financial performance. Now over to you, Sakari, our Deputy CEO and CFO. Thank you, Hans. I'll take you through a little bit more detail on the figures. Before I do that, just a reminder that in the comparison period, January to March 2021, that is pro forma, so figures are presented as if the acquisition of Ahlstrom-Munksjö had been completed in the beginning of 2020. But they are the operational benchmark, which is relevant to see the real development in the company. On the net sales slide, you see the components of volume, price mix, and FX, and other on the net sales. Net sales increased strongly, mainly on the back of higher selling prices, although there was also a small 2% volume impact, and then FX impact was slightly larger at 4%. If we then move over to the EBITDA side, on EBITDA, again, the volume did have a smaller impact on the EBITDA development. Main storyline for Q1 was the higher selling prices, improved variable cost efficiency coming both from our savings initiatives as well as our operational excellence initiatives, which delivered a positive difference in between our selling price and our variable cost. There was a slight mix element there as well. In other words, a strong development in our margin on variable cost in absolute terms. On the fixed cost side, there was some increase, as well as adverse FX impact, impacting the comparable EBITDA. If we move forward then and discuss the cost inflation, Hans mentioned the strong increase in energy cost. If we look back at 2021, you may remember that during the year 2021, there was a strong increase in pulp prices, which impacted throughout the year and, of course, impacts the comparisons of the first quarters of 2022 and 2021. Later on in the year, we saw the strong inflation in energy costs, which also has then continued in early 2022. However, it doesn't significantly change the relative sizes of the breakdown of our operating costs, which is shown in the pie chart on the left side. The other thing I would like to highlight is that, despite the logistics challenges and issues that the world has faced that are well known to all of us, there was very limited operational disruption from the quite challenging supply situation. Despite those situations in some raw materials and availability of transportation, we managed those situations during the quarter without any major disruption to our operations. Continuing on the marginal variable cost, on the next slide, there you see that sequentially, if we look at the quarters, we have been able to steadily improve our marginal variable cost per ton since the second quarter of 2021, which is actually quite remarkable when you consider that the high inflation environment that we have been operating. The marginal variable cost per ton in the first quarter of 2022 was up close to EUR 800 per ton at EUR 794. And as said, has been steadily increasing now for four quarters in a row. If we move on to the reconciliation of the comparable EBITDA and the adjusted EBITDA, the financing EBITDA for the last 12 months, the adjusted EBITDA was, of course, improved through the higher comparable EBITDA to start with, but then also the profit improvement initiatives that we have been successfully carrying out continue to have a positive impact. Of course, here in the table, you see the annualized impact or the full year impact of the 21 completed initiatives. You see the impact from the initiatives which are completed in 2022, which impact 2022, and then also what we expect to deliver in 2023. Adjusted EBITDA compared to the year-end figure has improved from EUR 495 million to EUR 518 million. Moving over to cash flow. The net cash from operating activities amounted to EUR 33.5 million. Cash flow was of course positively impacted by the result development. However, it was negatively impacted by our items affecting comparability, primarily from our transformation initiatives, and an increase in working capital, which came to a large extent from inflation, cost inflation, as well as to some extent, longer lead times, due to the supply chain issues I mentioned earlier. Capital expenditure excluding acquisitions was EUR 34.3 million. This was clearly up from the EUR 16 million in the corresponding period. The CapEx was mainly related to maintenance and cost, and efficiency improvements, but also some growth initiatives are included in that number. Free cash flow was EUR 109.9 million. This is calculated as comparable EBITDA minus maintenance capital expenditure, and this led to a cash conversion rate of just below 90% at 89.8%. This is calculated as free cash flow divided by comparable EBITDA. Cash flow from financing activities was EUR 116.4 million. During the period, we raised a EUR 60 million add-on to our existing senior term loan facility, maturing in February 2028. Finally, from my side, more as a reminder, our debt structure, which is composed mostly of senior secured term facilities, and senior secured notes. There are some local line bank loans as well as commercial paper from the Finnish commercial paper market, a program which we established in December 2021. Of course, the EUR 60 million add-on to the term loan facility is included here. The interest expenses on a 12-month rolling basis were EUR 98 million. Liquidity remains good with cash and cash equivalents of EUR 246 million, as at the end of the quarter, March 31. We have no major refinancing needs until 2027, 2028 timeline. That's all from my side. Back over to you, Hans. Ladies and gentlemen, a very strong start of the year. Q1, we had an all-time record high quarterly net sales with top line growth of 27% year-on-year. We also had a record quarterly comparable EBITDA, EUR 122 million, up 40% from Q1 of last year, which was the previous record quarter. Demand continues on a solid level and thanks to the very strong execution of our commercial strategies as well as operational efficiency and cost savings initiatives, we are improving the financial performance of our company. The acquisition of 60% in Minglian was an important strategic step in building the world-leading decor paper business. We had a very strong cash conversion of 90%, resulting in stable net indebtedness in the quarter. Now we are ready to take your questions. Thank you, Hans. Over to the operator, please. Do we have any questions on the lines? Thank you. Ladies and gentlemen, if you have a question for the speakers, please press zero one on your telephone keypad. The first question comes from the line of Michael Ponsar from Angelo Gordon. Please go ahead. Hello, Michael, your line is open. Sorry. Can you hear me now? Yes, we can. Oh, great. I actually had three different questions. The first question is on the EBITDA performance in the quarter. It looks like the main uptick in EBITDA is in the Industrial Solutions division, where the pulp mill, my understanding is the pulp mill is in that division as well. I just wonder, is the main increase of your EBITDA versus last year due to the pulp business or, are the other divisions also up as well? The second question I had is on the one-off costs to achieve the cost reduction. They're quite high this quarter. I just wonder if you could give us guidance for what the transformation costs will be for the full year in 2022, or you expect to be. The third question is on the loans. I'm a little bit confused because you raised a EUR 280 million loan last year for the squeeze-out. Now my understanding is the squeeze-out is delayed. Now you raised another EUR 60 million. I just wonder, have you drawn that 280 already, or will it only be drawn when you actually pay the squeeze-out? Is the 60 part of the 280 or is it an additional loan on top of the 280? Yeah. Those are my three questions. Thank you very much, Michael. I'll take the first question, and then Sakari, if you take the second and third question. About the EBITDA improvement, four out of five business areas improved their EBITDA generation in the quarter compared to the first quarter of last year. We saw an especially strong EBITDA improvement in Industrial Solutions, where we have, yes, the Aspa pulp mill, but also the other parts of the business is clearly significantly improved. We also had a significant EBITDA improvement in Food and Technical Solutions, as well as Decor Solutions, whereas in Filtration and Performance Solutions, there was an improvement, but it was on a lower level. The EBITDA improvement by far is not due to the Aspa pulp mill. Of course, the Aspa pulp mill had a positive contribution to the EBITDA improvement. The main reasons for the EBITDA improvement is overall a successful execution of commercial strategies across the board in practically all our businesses, combined with improved operational efficiency as well as the various cost initiatives that we are executing on successfully. Now, I hand over to you, Sakari, for the two other questions. Thanks, Hans. I'll start with the answer on the loans. The 282 million is drawn for the purpose of the squeeze-out. The 60 million was for general purposes and strategic acquisitions. There are two. They are two separate items. Okay. And the other- That means, well, it's not clear if it's how much exactly I think you need to pay for the squeeze-out, but the EUR 200-something million or high 100s still need to come out of the cash position. Is that correct? They are not included in the cash position. They are in escrow. They're in escrow. It's already in escrow. Okay. Yeah. Okay. They show up in the debt. Yes. Okay, I understand. Okay, good. I'm sorry, the other question was? The third question was. On the one-off transformation costs Yeah. Yeah, I can. For the full year, what you expect. I can cover that. Last year for the full year, we had EUR 50 million. Now we've had continued to have a high level of activity in the transformation, which we of course expect to somewhat decrease as we move forward. We expect a similar level in 2022. G ive or take Okay. It will slow down in the next three quarters? Yeah, we expect that to start to slow down over time. Okay, great. Thank you very much. Very useful. Once again, ladies and gentlemen, if you have a question, please press zero-one on your telephone keypad. The next question comes from the line of Simon Yaroshevsky from Carlyle. Please go ahead. Yes, hello, good morning. My first question is about like for like volume growth in Q1 of this year versus last. You mentioned 2% growth in volumes overall, but I'm guessing this includes certain acquisitions, maybe the Chinese plant acquisition specifically. Do you have like for likes or organic growth figures for volumes, please? Yes. Thank you for the question. Volumes were roughly flat on a good level. I want to remind you that Q1 of last year was a record strong quarter also in terms of volume. Roughly flat year on year, excluding the acquisition of Minglian. Mm-hmm. Looking at specific divisions, would any of those six divisions, I believe that you have, did any of those suffer any, let's say, meaningful volume decline? If and if so, what was behind the decline? No. There was some variation between the businesses. Some were, you know, slightly down. Some were slightly up. All in all, there was a quite stable development. As said, on a record good level. The comparison quarter was record good also in terms of volumes. Okay, great. Thanks. The last question is a question about the current situation in terms of raw material prices. You know, how is the market developing in Q2 given, you know, obviously the war and the market backdrop? If you could maybe share some thoughts on where it's going now, please. Well, a part of our commercial strategy is to anticipate further cost inflation. That's why we have been, you know, preparing also for an inflationary environment with a forward-leading ambitious commercial strategy. Are you seeing further inflation in Q2 versus Q1, 2022? If so, what kind of inflationary kind of pressures are we talking about in terms of maybe percentage changes or any kind of indication, please? Yeah. We don't provide forward-looking statements related to our business. Mm-hmm. Directionally, I'm guessing it's going up. Yes. The prices are going up still or maybe not. Well, I would refer now to our track record here. Since the beginning of last year where pulp prices went up, and then followed by energy costs, logistic costs throughout the full year every quarter, and then in the first quarter of this year, record high further inflation. If you look at our track record, we have, thanks to a very proactive commercial strategy, we have been able to more than compensate for the cost inflation. That's our approach also moving forward. Our basic principle is that when it comes to cost development, pulp, fiber costs, as well as energy costs, it's really difficult to predict the future. Therefore, we always prepare for the worst. We always prepare for an inflationary environment. We define our commercial strategies accordingly, and we execute accordingly. If input costs move the other way around, it's a positive upside. Okay. Thanks, Hans. Thank you. Thank you. The next question comes from the line of Luigi Iges from Old Spring. Please go ahead. Hi, good morning. Thanks for taking my questions. The first one is a clarification on the capital expenditure. If you could please break down how much of the EUR 34.3 million is maintenance and what should be the rough expectation for the full year? The second question is on the fixed cost following the increase we've seen in the quarter. Shall we use the current quarter, the Q1 as an indication for the rest of the year, or we should expect further increases in Q2 and beyond? Thanks. Thank you, Luigi. Regarding capital expenditure, about a third is maintenance investments. Sakari, please correct me if I'm wrong here. Then two thirds are more, let's say, strategic growth investments. Regarding the fixed costs, the majority of the fixed cost increase is actually exchange rate related. So that explains the major part of the fixed cost increase in the first quarter compared with the comparison quarter. Sakari, do you want to add on this? Yeah. I would say on the fixed cost that the question was should we expect an increase? You, you're correct, Hans, it is mostly FX with some the smaller part is related to salary inflation. But you, I think, based on that, you should expect that to be, you know, similar in the coming quarters. Thank you. The next question comes from the line of Daniele Davico from BofA. Please go ahead. Hi. Good morning. Thanks for the call. In terms of your hedging strategy for energy, you mentioned that during the last call you were, you stopped hedging because of the cost. Is there been any changes for next year? Do you want to take that question, Ari? Well, I can say that there's no change in our strategy that we of course continue to hedge forward on a rolling basis. Yeah, I would say no change directionally from that point of view. Not sure it answers your question, but. Yeah, to answer. My understanding was you stopped hedging for 2023 because costs are too high. We are continuing hedging and preparing for 2023 also. The question is that have you started to hedge again or you're still unhedged? We are already since long ago, we have- That would be also good. We have a hedged position for 2023, and we are increasing the level of hedging, you know, on a rolling basis. Okay. How much of your energy usage for next year is currently hedged? I don't think we've actually. We don't disclose. Sorry, Hans, go ahead. Yeah, we don't disclose that number. We have a part of our energy costs hedged for next year. According to our hedging policy, we are gradually increasing our hedges for the, let's say, future quarters. Okay. My second question was on price increase cycle. You mentioned that you're seeing more inflation ahead. Is there any chance you can disclose what kind of price increase you still need to push through? We don't disclose. 20%-21% push through in Q1? No. Yeah, we don't disclose, let's say, forward-looking statements. Yeah. Regarding pricing, I mean, if you look at, as I said in my part of the presentation, if you look at last year and you consider the inflationary environment we were operating in, and then you look at the marginal variable cost of development, I think there's a good track record of actually being able to price the inflation. All right. Do we have further questions? Once again, ladies and gentlemen, if you have a question for the speakers, please press zero one on your telephone. The next question comes from the line of Tuan Kai, CKO Capital. Please go ahead. Good morning. Thank you for the presentation. What kind of volume demand are you seeing in this quarter, 2Q 2022, especially versus 2Q 2021 and versus 1Q 2022? Do you expect volume to continue to be strong? The demand continues solid on a good level. Quarter-over-quarter as well as year-over-year, or can you? Yeah. As said, you know, we are not providing, you know, an outlook statement or forward-looking statements. Okay. I mean, I said before, in Q1, we experienced record good, let's say, volumes on a record good level, on a strong level compared to the first quarter of last year, which was a record good quarter in terms of volumes. We are experiencing solid, continued good demand. Got it. That's very helpful. Thank you. Are you hedging any of your variable components within your term loans, i.e., the LIBOR or the EURIBOR components within your bank debt? Yeah. We do hedge, but I don't think we have actually gone into the details of that in our external reporting. Okay. Would you know off the top of your head, like what approximately portion you have hedged? Like half of your exposure or, you know. Otherwise I'll take this offline. Yeah. I said we haven't actually opened that up. Okay. Understood. Thank you very much then. There are currently no further questions. I'll hand the conference back to you speakers. Thank you. It's time to take the questions in the chat box. Let me start by reading up them one by one. The first one concerns our customers and how healthy are they, given how much we're passing on cost increases to the customers. Yes. Our customers are healthy. I mean, we are operating in a very specialized niche businesses and to a large extent also our customers are in niche businesses. Of course, we are monitoring closely, you know, the financial stability and health of our customer for credit insurance and credit reasons. We see that they are healthy and doing well. Their business is doing well overall. Right. The second question concerns the outlook for demand logistics, and raw material availability. Would you like to comment on that one? Well, I mean, the last quarters have been challenging in terms of supply disruptions, logistics disruptions. But we have managed extremely well to keep our operations running, to get everything supplied that we need. We don't foresee any significant issues here moving forward. In fact, we can see some easing of, let's say, the supply situation, which was especially tight during the second quarter and third quarter of last year. There are two questions that concerns the Decor division and the sale process. Can you please update on the situation where we are in terms of the process, and are we comfortable with the current level of leverage? Yes, we continue to evaluate strategic options for our Decor business. That's where we are. Perhaps you can, Sakari, comment on the leverage question. Yes. We are comfortable with our current level of leverage. Then the fourth question concerns how the pulp prices have developed since the UPM strike ended in April. Any softening in the environment? Yes. This is, of course, publicly available information. It is clear that the pulp market has clearly softened in the world's largest region for market pulp, which is China. Currently, prices have been, during the last weeks, roughly stable. We don't really speculate in the outlook for pulp prices moving forward. There are lots of market analysis and market data and forecasts available. You know, we always count on our strategies to build and capitalize on our strong market positions, our very specialized high added value products, and to execute commercial strategies and pricing accordingly in whatever, let's say, inflationary environment. There's a question about the planned price hikes for full year 2022, and if we should expect that to have an impact on our volume development going forward. Yes, we have been very successfully executing on our commercial strategy, which includes a combination of pricing and volumes. I have 100% confident in our organization that we will manage this in an optimal way moving forward, also in the future. There's a question about the time lag for passing on these price increases. Can you please remind of that time lag? In a way, an important part of our commercial strategy is the anticipation and the proactivity. We always strive to forecast, let's say, cost development and proactively execute on pricing and implement price increases. In our case, you know, we don't really have that time lag. As you can see from the result, despite record high cost inflation, our margin over variable cost has increased significantly, which means that we have been very successful in the anticipation and proactivity of our pricing. The next question is specifically about the exchange rate impact on our top line and EBITDA. And the question is that how we had a positive impact from FX on the top line, whereas a negative impact on EBITDA. Yeah. Thanks for the question. Well spotted. Let me explain. Of course, you would expect that this would be directionally the same. However, in the EBITDA, it's not only impacted by translation, whereas sales is primarily coming from that. There are also transactional impact from FX in that as well as from hedging, which work in the other direction in this case. Thank you. There's a final question that concerns the Minglian acquisition and the current cost inflation environment. The question is how that cost inflation has impacted our view on the Minglian acquisition. The Minglian acquisition is strongly value accretive and strategically extremely important. It brings us strong position, you know, cost leadership position and strong position in the world's largest decor paper market, which is China. We think this is a very value accretive, successful acquisition. Very good. Thanks for all the questions. There seems to be no further questions in the chat box, and I assume no further questions on the lines as well. With these words then I hand over, Hans, to you for the final remarks, please. Yes. Thank you, Johan. Ladies and gentlemen, thank you very much. We had a record strong start of the year with first quarter with all-time high net sales, as well as all-time high comparable EBITDA. We are continuing to build a better, more valuable Ahlstrom-Munksjö, and we execute on our plans with speed and determination. Thank you very much for your participation, and I wish you a good day. Take care. Bye.