Good morning, and welcome to the presentation of ASSA ABLOY 's second interim report in 2021. My name is Björn Tibell. I'm heading Investor Relations, and joining me here in the studio are ASSA ABLOY CEO Nico Delvaux and our CFO, Erik Pieder. As usual, we will now start with a summary of the report before we open up for your questions, and we seek to round this up in about one hour. With that, I would like to hand over to you, Nico. Thanks, Björn. Good morning from my side. Q2 results for ASSA ABLOY, a strong quarter with significant sales growth and strong margin recovery. A record organic growth of +23%, with very strong sales growth in all divisions except for the APAC division, where we saw stable sales growth. Complemented with good growth through acquisitions of net +5%. Good operational execution, giving us a strong EBIT improvement with an EBIT margin of 15.2%. If we exclude for acquisitions and currency, 15.9%. With strong operational leverage, I would say despite higher raw materials and higher logistical cost, and despite also challenges with component supplies in different of our factories. We also signed four acquisitions in the quarter, and also very good operating cash flow, +6% up versus the same quarter a year ago with a cash conversion of 105%. In numbers, the sales of SEK 23.6 billion, 90% up with a 23% organic growth to 5% net acquisition growth, and then a headwind of currency of - 9%. An EBIT margin of 15.2% versus 10.5% the same quarter a year ago. An EBIT of almost SEK 3.6 billion, 71% up, and then earnings per share of SEK 2.89 per share, 130% up. If you look a little bit into different regions, starting in North America, strong organic growth in North America of 20%, where our residential business continues to perform on a high level. Where we now also continuously see a recovery on the commercial side, where really month after month, commercial business is coming back more, as I also explained already in the previous quarters, which is obviously good news for the second half of the year. That were most affected by COVID-19 one year ago, now also recovered the most. The ones that were less hit by COVID-19 showed also less growth. The ones that showed the biggest improvement, countries like Spain, U.K., and France, the ones that show less growth, a region like Scandinavia and Sweden in particular. Good growth in Africa, +47%, and in Oceania, +11%, despite, I would say, continuous lockdowns in several parts of Australia during that quarter. A flat development in Asia. It's mainly because a continued challenging situation in Southeast Asia. As you know, that part of the world lives off very much from tourism as borders remain closed in those markets. Business activity remains on a lower level. In China, we continue with our strategy where we only take orders where we can get the margins that we aim for and where we also can get paid in a reasonable amount of time. Overall, I think very strong performance, I would say, throughout the world. Some market highlights also this quarter, several project wins. An important docking station project order for distribution and logistics center in Sweden. Perimeter security solution for a large data center in the U.S. The next generation ePassport solution for Estonia for HID. In Biosite, our construction vertical in Global Solutions, security solution for the largest U.K. infrastructure project that is going on as we speak. A lot of new products and solutions also launched to the market in the quarter. A new high-performance door and entrance system focusing on energy efficiency. Of course, very excited about the collaboration with Apple to provide both employee badges and hotel keys in Apple Wallet and in Apple Watch. Again, it's good to see that all our efforts on R&D pay off and also are rewarded by the professionals in our industry. Also different new awards won in the quarter. Now two consecutive quarters, again, with positive organic growth. Really bouncing forward and re-accelerating that growth, mainly through organic growth, but also very good complementary growth through acquisitions. An operational margin also heading again towards 16%-17% bandwidth. An improved top line, improved margins gives us also a strong improvement operating profit, 71% up compared to the same quarter a year ago. On the acquisitions, we continue to be active, with three acquisitions completed in the quarter, six acquisitions year to date. They represent an annualized sales of around SEK 400 million. We will close one more acquisition now in Q3, the MR Group that we announced already. A company in Portugal with a sales of around SEK 230 million. We also informed you that we will divest CERTEGO, that transaction is expected to close in Q3. Our locksmith channel in Scandinavia. They represent a divested annualized sales of around SEK 1.4 billion, and we will also book a write-down and cost associated to that divestment of around SEK 200 million now in Q3. A couple of words on Sure-Loc, an acquisition we did in the U.S., in the Americas. Complements our mechanical hardware portfolio. They are a supplier of residential locks and associated hardware with a sales of around SEK 120 million, and they will be accretive to EPS as of the start. If we go into the different divisions, starting with the Opening Solutions EMEIA division. Very strong organic sales growth in the quarter of +39%, with very strong sales growth in all markets, except for Scandinavia, where it was only strong sales growth. A very good operating margin of 14.9% versus 5.7% a year ago, with very strong volume leverage, 910 basis points, despite a negative mix in the sense that we have more South Europe and less North Europe. Despite higher raw material costs, higher logistic costs, and also challenges with availability of components in our different factories. I think a very good job well done on the operation side by the team. We were held by FX 40 basis points because of the stronger Swedish kroner, 30 basis points dilution from M&A. That's mainly only an internal transfer from India, from APAC to EMEIA. Strong performance in EMEIA. Definitely also very strong performance in the Americas with an organic sales growth of 26%. Also here, very strong sales growth in all product areas and in all regions from Canada over U.S. to South America, with a strong operating margin of 20.4% versus 17.5% a year ago. What I said about EMEIA is definitely also true for Americas. Very strong volume leverage, 300 basis points despite all the challenges in operations. Held by FX 10 basis points and then dilutive M&A 20 basis points. Asia Pacific, our third geographical division. A flat organic sales development of 0%, with good sales growth in Pacific, stable sales growth in South Korea, but then sales declining in Southeast Asia and China for the reasons I mentioned earlier. An operating margin of 9% versus 7.1% a year ago. Same story here. Very strong leverage, 130 basis points with FX dilutive 30 basis points and M&A positive 90 basis points. That's again the transfer of India from APAC to EMEIA. Going to Global Technologies, division that is still hit by a lack of mobility, mainly on the tourist related or people moving related businesses. Despite that, still an organic sales of 17%, with very strong sales growth in PACS, secure issuance and identification technology, stable sales in extended access, and sales declining in identity and access solutions, and sales declining significantly in citizen ID. Also in Global Solutions for the non-travel related businesses, very strong sales growth. An operating margin of 15.7% versus 10.1% last year. Very strong volume leverage, very good cost actions done in this division, 770 basis points leverage. Although travel-related businesses remain very challenging, we see slowly the aftermarket business coming back as mobility starts to improve again. Dilutive FX 100 basis points and dilutive M&A 110 basis points. Last but not least, Entrance Systems. Another strong performance in the quarter. Organic sales up 21%. Very strong sales growth in all business segments and a similar growth in equipment as for service. An operating margin of 14.9% versus 11.4% a year ago. Also here, very strong volume leverage of 450 basis points, neutral FX, and then 100 basis points dilution from M&A. That's obviously in the first place, and in the only place, agta record. With that, I give the word to Erik for some more details on the financial numbers. Thank you, Nico, and also good morning from my side, everybody. As mentioned before, the sales went up with 19% due to a record high organic growth as well as a strong M&A of 5%. The currency went the other way. It went down with 9%, which is mainly related to the strengthening of the Swedish krona. Operating income, the EBIT, went up with 71%, and if you take it in percentage, it went up with 4.7 points. We ended at 15.2%. The net income went up with 129%, and the earnings per share went up with 130%. The reason why there is a difference between these two is due to a non-recurring event of an intra-group transfer of a trademark. If we exclude this non-recurring event, our annualized tax rate would still be around 26%. We had another quarter of a strong operating cash flow. We're up with 6% to SEK 3.6 billion. Return on capital employed increased with two points and ended up at 15%. If we look on for Q3, the FX impact as of today, we estimate to be around -3%. The M&A will be lower, roughly around 3%, due to that as of end of August, agta record has been within the group for a year. Also would like to remind that last year in Q3, we had some positive tax gains, which came out of the record acquisition. This year, as mentioned before by Nico, we will close the CERTEGO divestment, which will have a negative impact of roughly SEK 200 million. This will, of course, heavily impact our M&A column in Q3. If you look into the bridge, and dissect the organic growth, roughly 20% comes from volume, and 3% is related to price activities. The flow-through was a strong 40%, and there we can see that we had help from the strong organic growth, plus that we also had a strong operational execution in the quarter. That was on the positive side. If you look on the negative side, in Q2 last year, we had quite a lot of temporary cost reductions, and also we have the high headwind that we get from the raw material and the logistic cost. The currency impacted the EBIT margin with - 20 basis points, which is related, as I mentioned before, to the SEK, but also to the U.S. dollar. Then we had the M&A column, where the dilutive impact of the agta record acquisitions is 50 basis points. As mentioned before by Nico, if you exclude the currencies and you exclude the record acquisition, our margin would have been at a similar level as what it was in Q2 2019, at 15.9%. Cost breakdown, the direct material, we have a positive impact on the direct material. This positive part comes from a positive divisional mix with a stronger Global Technologies and a flat APAC. If we look specifically onto the raw material, it impacted the result negative with roughly the same, meaning 20 basis points negative. If we look on the prices in Q2, for instance, on steel, they have increased with another 50% in the quarter. We expect that the headwind will be stronger in the quarters to come. We've had good organic operating leverage on the conversion cost. We have good cost control. We have efficiencies if you look on the conversion as well as within the SG&A. However, it's important we still invest into R&D. The conversion cost you see is down with 1.7 points, and the SG&A in total, if you compare to last year, is 3.3 points better. Operating cash flow mentioned before, strong plus 6%. This is mainly related to the improved earnings. If you look on the working capital, it's more or less the same as what it was the similar period last year because there we need the net working capital in order then to facilitate the strong growth that we have had. Our cash conversion on the 12-month basis was 123%. The gearing, we continue to go down on the net debt versus equity, and now down to 45%. In the quarter, we were able to reduce the actual net debt with another SEK 600 million. The net debt versus EBITDA came down from 2.1x last year to 1.6x this year. We have a strong financial position. Our balance sheet is strong, and we can continue our acquisition strategy. Last but not least, as I mentioned before on the earnings per share, it went up with 130% related to the improved earnings as well as this non-recurring tax impact that I mentioned before. With that, I hand it back to Nico for final conclusions. Thanks, Erik. We can say a good second quarter for ASSA ABLOY. We have significant sales growth, record organic sales growth of +23%, complemented with good growth through acquisitions of net +5%. Also very good margin recovery, an operating margin of 15.2% if you exclude currency and acquisitions, 15.9%, similar level as prior to COVID-19 times. Also good actions on working capital resulting in a strong cash flow, 6% up versus the same quarter a year ago. It's clear that now as vaccines are further rolled out and COVID-19 situation is further improving, although there is, of course, concerns around Delta variants and we are still very much in the COVID-19 situation, I would say we definitely are shifting gears and are focusing further on how to bounce forward and re-accelerate further our profitable growth. Growth through acquisitions and definitely also growth organically. While we do that, of course, we will continue to focus also on operational execution. We have to have strong cost measurements. On one side, we have to make sure that we can compensate for the much higher raw material costs through either other cost savings and definitely also through further price increases. Then the component shortages in general and electronic components in particular remain, of course, a challenge that must be handled by our operations. With that, I give back to Björn for questions and answers. Björn? Thank you. Thank you very much, Nico and Erik. Yes, but before we hand over to the operator, I would like to remind you to please limit yourself to one question each with one follow-up, so as many as possible can ask questions. Operator, this means that we are ready to kick off the Q&A session. Please go ahead. Thank you. Our first question comes from the line of Vivek Midha at Citi. Please go ahead. Your line is open. Hi. Thanks very much. Good morning. Sticking to one question. In terms of understanding the strength you're seeing in developed markets and pent-up demand versus underlying trends, did you see any stronger trend on quotation activity as we went through the quarter? Thank you. Of course, we follow up quotations more on country level. The only quotation activity that we really track and trace more on division level is our spec business. There we definitely can see a good increase of activity as well in number of projects as in value, as well in North America as in Europe, where we are back now in Q2 into a positive growth for the spec quotation business in the U.S. and where we also see good, strong growth in EMEIA. Thank you. Actually, if I could just follow up as well on the price cost, which you mentioned before. In terms of the phasing of those price cost pressures during the year, should we still expect the peak of the gross pressure to be in Q3, or is it likely to be Q4 now that you see the most pressure? Thank you. That's a bit difficult question to answer because I don't know what material prices are going to do from here going forward. We only see and have seen that material prices are further inflated in a very strong way in Q2. Like Erik mentioned, several materials up 30%, 40%, 50% in the quarter. If you take, for instance, steel in the U.S., price level of steel today is 200% up compared to one year ago. I would say that's not inflation, that's hyperinflation. That's not something you would expect from a country like U.S. Yeah, we are working very hard with many sequential price increases to compensate for that. Like we mentioned at previous occasions, we now see with that continued inflation pressure that fully compensating for those material cost increases will not be possible this year. It will go into next year. If you see in Q1, we were almost capable of fully compensating for material increases. Now in Q2, the headwind was around 20 basis points. One should expect that to go further up in Q3. As it stands today, we still believe that Q3 is the more difficult quarter. It will depend on what happens now with material indexes in the coming weeks and in the coming months. Okay. Thank you very much. Thank you. Our next question comes from the line of Lars Brorson of Barclays. Please go ahead. Your line is open. Hi. Good morning, Nico, Erik. Can I follow up on that, Nico? Just to your slide, the direct materials as percentage of sales. Obviously, that's not a pure price cost. I just want to understand the message clearer. Am I right to say that the price cost equation is 20 basis point negative? Obviously, you have gross price at 300 basis points. My understanding was that mix was a 40 basis point tailwind the quarter. There's obviously also within that direct material line, an FX component, some supply chain savings, and others. I just want to understand what the pure price cost, if that's 20 basis points. Also, if you can just clarify that the price cost guidance for the year is still what you said after Q1, I think less than 2018. I take that to be less than 50 basis points. Just want to clarify that's still the message. Thank you. You are right with everything what you said Lars. That's perhaps the easiest answer. You remember in Q1 we had, I think 40 or 50 basis points dilution on the material side. We explained that that was because of a negative mix in the sense that we grow more in APAC as the main reason and less growth in Global Technologies, which affected mix in a negative way. We said that if you purely look at material, that we almost compensated 100% for the material inflation. In Q2, it's like you say, we have 20 basis points headwind from material. We show a 20% better result. That 40 basis points is mainly mix in the sense that this quarter it's better Global Technologies and less APAC. This quarter compared to Q1 is a more positive quarter. Going forward, yes, Q3 will be more headwind, but we can repeat what we said before, that we are aiming and confident that the headwind will be less than back in 2018 when we had last time, I would say a more modest material inflation. You're right, at that time, the effect was around 50- 60 basis points purely on the material side. Yes. Helpful. Thank you. Can I ask secondly, just on the sequential trend or the exit rate from the second quarter, I wonder whether you can help us a little bit with that. I think you grew sequentially 9% in Q2. I think normal seasonality would see you grow sort of low double-digit. I wonder what you're seeing as you exited the quarter. Historically, seasonally, you've been sort of flattish in the third quarter. What are you seeing here? Obviously, you're flagging sort of a non-resi business starting to come back. Not sure that already hits you in the third quarter on the new build side, but just wonder whether you can give a bit of color as what you see on sort of short-term trends. Thank you. It depends of course, a little bit how you compare. If you compare with last year, it's of course difficult to compare because if you compare, for instance, April. April was almost that a year ago, whereas then in May and June, business slowly came back a year ago. Comparing with last year is perhaps more difficult. What we do is we look obviously on sales per day or sales per week, and there, like I mentioned, we see commercial coming back in a good way. Month after month, week after week, we see commercial improving as well in Europe as definitely also in North America. As you know, in North America, that's also important for us because it's also the more profitable part of our business in the Americas. That being said, it's of course going to be much more tough now going into the second half because second half of the year was a good half the year for Americas, for instance, and for Entrance Systems. From a comparison perspective, it will become obviously much more challenging than Q2 which was an easy comparison, of course. A year ago, more than 50% of world population was locked down, and that was not the case anymore in Q3 and Q4. Understood. Thank you. Thank you. Our next question comes from the line of Guillermo Peigneux of UBS. Please go ahead. Your line is open. Hi. Good morning, everyone. Guillermo from UBS. Maybe one question, one follow-up. First, on the pricing, you said 300 basis points, 3% roughly speaking. I was wondering whether with the new price increases, whether you could indicate to what kind of pricing level do you expect year-over-year for the second half with the information that you do have at this point? I have a second question on smart locks or electromechanical door locks, but I'll wait for your answer to the first question, and then I ask the second one. Thank you. Okay, you're taking over the Q&A session, Guillermo, with the questions. If I first answer the first question, yeah, it was like we mentioned, price was 3%. Okay, it's not exact science, we believe it was slightly higher than 3%. Obviously we continue to increase prices, and we did not do that a year ago. Everything what we add from a pricing perspective will also be a net further price increase. You should expect that number to further go up now in Q3. That's what we have to do also because you see, of course, material indexes and material cost also further going up. All right. The second question is on the smart locks, which I think in EMEIA continue to grow very steadily, very rather strong. Obviously in Americas it was declining and now it's back to growth. I was wondering on electromechanical and electronic locks. First, what are you seeing in EMEIA? Is this broader adoption in the market with some of the trends that we saw in Americas two years ago, we are starting to take place in EMEIA? Second, in Americas declining and now increasing, what do you see there? Is the growth incoming in residential or non-residential or both? Thank you. The growth is coming in both. If you look at electromechanical in general, and digital door locks in particular, digital door locks is of course, the fastest-growing subsegment that we have in the group, and that was also the case now in Q2 with high double-digit growth. We see good strong performance as well in the Americas, as in EMEIA. Of course, it is also thanks to several new products that we launched. If you take, for instance, in EMEIA, we have launched a new Linus retrofittable digital door lock, an August-alike solution, you could say, for Europe. Getting very good traction. We also got our new Yale Doorman for Scandinavia, which is also selling in a very good way, where we even have challenges to keep up with production and to keep up with electronic components to support that growth. I would say it's in one way, thanks to the new products that we launched. It's of course, also just the market. We continue to see a further shift from mechanical to electromechanical and digital, and we see even a further acceleration of that trend. I would say U.S. has the advantages. It's one country, so it's a little bit easier. Whereas as in Europe, you still, of course, see different speeds in the sense that when new technology comes to Europe, the northern part of Europe, Scandinavia, Finland, is often the first one to adapt, and then afterwards you have countries like U.K., and then it takes much longer to adapt in, let's say, the southern part of Europe. You see something similar with our digital door locks in our different markets. Thank you. Thank you. Our next question comes from the line of Gael de-Bray of Deutsche Bank. Please go ahead. Your line is open. Yes. Good morning, everybody. Thanks very much. My first question is on the cash flow side. I was actually surprised not to see a bigger change in working capital this quarter, given the very strong revenue development. Could you comment on this, please, and on what to expect as we look forward, especially on the inventory side? That will be question number one. Yeah, as we said, the cash flow this quarter is driven by the earnings. On the working capital, it's flat. Of course, you have the components there. Of course, if you increase the top line, you also get more receivables. Okay, on the inventory we need in order then to support the growth. There, of course, in the inventory as well, we also get in the higher raw material prices in inventory as well. Going forward, I think we are going to see the trend that we're not going to see that much, let's say, going down on the net working capital. I would say on the inventory side, if we could have chosen, we would have loved to have a little bit more inventory because we have seen, like I mentioned in the presentation, some challenges on supply chain, getting the components in. Even already, something we would have loved it to be a little bit higher for some of our businesses. It would make sense, right, to expect inventories to eventually go up. Yes Quite substantially in line with demand? Well, of course, we have done a lot of efforts on efficiency improvements in operations in general, and that you all have also have seen in our inventory figures if you look over the last two, three years. We'll continue to do that effort. You will also see, and you should expect to see efficiency gains in inventory values as we grow. Of course, with that important side remark that Erik mentioned, the inventory is a higher value today than a year ago because of the material inflation. Like for like, if you put the same stuff in stock, you will see a much higher value because of material inflation. Okay. Thank you. The second question is on the margin trajectory. Are you still confident that the group will reach the 16%-17% margin range relatively quickly? Of course, any indication on the potential timing to get back in the range would be pretty helpful to us. Well, like we have said at several occasions, and we can repeat again, we have our financial targets to be with our EBIT margin within 16%-17% bandwidth over a business cycle, and are below, and we are working very hard to come back within that 16%-17% as soon as possible. Of course, taking into account the 50 basis points dilution from agta record. If you look at the last quarters, and you correct for agta record, you could say that we were on very similar levels as prior to COVID-19. I would say it's just a matter of time before we will get back into that 16%-17% bandwidth, excluding agta record, or therefore 15.5%, including agta record. We have also said that we have the ambition to bring the margins of agta record within the normal margins of Entrance Systems within three years, realizing on the synergies of that acquisition. Like I mentioned earlier, we are very happy with the way that integration is going. We are, we could say, even slightly ahead of our plans to realize the synergies and therefore bring those margins in line. I agree with your comment that at the group level, the margin is now on par with what it was pre-COVID, if you exclude FX and M&A. If I look at the situation in Europe in particular, the margin in Europe still looks well below that of its 2019 level, despite revenues already back above 2019 levels. I wondered if in Europe specifically, there was a need or not for an extra layer of cost optimization measures. Of course, when we talk about the 16%- 17%, we talk on group level. There is always moving variables in different directions. You talk about EMEIA. I can talk also about a fantastic track record that we have in Entrance Systems where obviously margins are significantly better, where in APAC, we continue to improve margins. If you look in particular in EMEIA, of course, you have on one side the pricing, which it's very high inflation. It's also a complicated market because it's not a uniform market where we are doing more on the pricing to fully compensate for material indexes. We have also invested heavily on the shift from mechanical to electromechanical, where we believe we haven't seen the complete return on those investments yet because, of course, you first make investments in R&D, and then you launch your products and solutions, and then ultimately you get the growth. We see that, for instance, like I mentioned on digital door locks, where we invested in an important way in new product launches and where we now are starting to get the return through higher sales. I think it's more, I would say, I guess, a timing issue, and you should really look at the 16%-17% as a target on group level. There will always be parts of the group that then outperform in your eyes and then some divisions that perhaps in your eyes have further room for improvement. Perhaps just to add on EMEIA. Remember also Nico talked about that we have moved India from APAC into EMEIA. Now you see the I in there as well, and that has a negative impact on their margin with roughly 30 basis points. Correct. We have to go to the next, please. Thank you very much. Thank you. The next question is from the line of Alasdair Leslie at Société Générale. Please go ahead. Your line is open. Yeah. Hi, good morning. Thanks. Returning to the price cost, sorry, 20 basis point headwind from raw materials in Q2 that you called out. It was perhaps maybe a little bit less than I expected. I was just wondering if we can follow up on the question around full year expectations of up to a 50 basis point hit, essentially. I know you're not changing that, but is it fair to say that you're now maybe a little bit more confident or a lot more confident even in achieving the target, given the obviously solid Q2 execution and price actions that you're taking? A follow-up question would just be on China. I was just wondering whether you could provide a bit more color on the decline there. How much of that was explained by the underlying market versus the selectivity measures you referred to? Given that we have seen a pivot to growth strategy there, when does China really return to a solid and consistent growth path and more in line with the growth of the rest of the group? Thank you. We start with material cost. Everything will depend, of course, on how good we will be in executing on the next price increases that we have announced because, of course, you announce a price increase and then you have to realize the price increase. There, a lot depends also on how the market reacts to it. We are, in many markets, a strong market leader and therefore also want to be that price leader, being the first one to come with price increases, second, third, fourth, and fifth price increase. Then we see how the market reacts. If the market continues to react like they have been reacting until now, then yes, we are confident on that statement that we should be better in managing material inflation to price increases this time around than back in 2018, despite, I repeat, a much higher material price inflation this time as compared to 2018. I think the material increases that we see today, I think are unseen in general and are definitely unseen for steel. Yes, under those conditions, yes, we are more confident. When it comes to China, I would say it's not the market, it's really us internally, the way we are implementing that strategy of stability, profitability, and then ultimately growth. Again, we had lower to mid-single digit negative growth in China in the quarter. That was, like I said, because we are very selective in which business we want to have going forward and which deals we don't want to take, because again, we want to have deals with margins in line with our expectations and also a good chance of being paid within a reasonable time. We are definitely in that stability phase. We further increase our margins. If you look on a 12-month moving trend now. Indeed, next step is the growth. I'm most probably much less patient than you are. I don't know you that well, but I can tell you I'm much less patient than you. Like we said from the beginning, this is something that takes time. It's not something that we can fix in a couple of quarters. That's much longer term. We are confident that we will move now from that stability, profitability phase into growth mode, again, going forward. Okay, great. Thank you very much. Thank you. Our next question comes from the line of Lucie Carrier at Morgan Stanley. Please go ahead. Your line is open. Good morning, gentlemen. I have two questions. I will go one at a time. I wanted to come back on the demand dynamic and notably related to price and supply chain constraint. Have you done any analysis from the past or now on how much you think your customer base can take price increase? Because we talk a lot about increasing prices, but there's sometimes also challenges with acceptance. I think it was mentioned already earlier that the seasonality in the second quarter was maybe not as strong as usual. Do you see ongoing challenges from supply chain constraint that could also prevent you from basically delivering on the demand you are seeing in the market, notably in the second half of the year? That's my first question. On the pricing side, it's a bit the same answer as I gave earlier. We increase prices then we see if the market continues to follow. So far, the market continues to follow. If you take the more critical families, very much steel related, I think we have already done five or six price increases, a combination of price increases with material surcharges. So far, the market is following. It's just the fact that the cost goes up for everybody. It's a similar or an equal playing ground field, you could say. Everybody has the same challenge. There is also not so much timing differences between us and our colleagues, competitors in the market. We are confident that we can continue to increase prices as much as it takes to compensate for the cost. Like I said, there will be some lag between material inflation and us realizing the prices, and that lag will go on into next year. That's on the pricing. On material availability in Q2, yes, we most probably had a couple of orders that we could have delivered out if we had better flow of components into our different factories. I would say that it's not significant. In fact, on the top line has been very limited. Of course, it creates a lot of disturbances in our factories and therefore, we have to reschedule and plan in different ways all the time. I think our people in operations are doing great job to manage with those challenges. I would say the more challenging part is that we don't have so much visibility. If you take, for instance, electronic components, it is very difficult to get hard commitment from your suppliers for longer periods of time. Your visibility has become much shorter. The visibility we have gives us enough confidence that we should not have significant effect again on top line or on bottom line in the coming months and in the coming quarter. Thank you very much. My second question was more related to some of the comments you've made in the press release this morning around shifting the growth focus, and you were mentioning specifically software as a service, I think, and also on electromechanical. Can you maybe give us a couple of hints of what you're thinking to do differently now on this area versus what you were doing before, please? I would say there's not so much difference what we do today to what we were doing yesterday or prior to COVID-19. In a sense, like we explained earlier, during COVID-19 times, our first focus was on cost control, on protecting the bottom line and protecting our cash flow. We have seen market dynamics and market sentiment improving in a very good way in general, I would say. Therefore, okay, we want to now take advantage of that better market sentiment and make sure that we grow at least in line with the market, or preferably even a little bit better than the market. It's a similar trend as we have explained at earlier occasions and also in our capital markets. There is a whole shift from mechanical to electromechanical and digital as well on the commercial side as on the residential side. If you have that shift, of course, yes, you also have more software-as-a-service revenue. We have that same focus on software-as-a-service in our different verticals in Global Solutions. As mobility comes back, we should also see aftermarket in general coming back and also in Global Technologies. Then we have, of course, the focus on our service business in Entrance Systems. Okay. Thank you. Thank you. Our next question comes from the line of Andreas Willi at JP Morgan. Please go ahead. Good morning, thanks for the time. I just wanted to follow up on the earlier question on China. I think obviously you described your journey from stability, profitability to growth, but what's the difference or is there a difference in the market that just prevents you in China from achieving longer term the same kind of profitability and cash conversion that you achieve in the rest of the world? In what sense is that different to maybe to what we see in other capital goods companies that don't have that same problem in China? Basically trying to find out to what degree China coming back to growth and good growth is dependent on your own journey versus what just the differences are in the market. I think if we look top-line wise, I think China should be able to grow faster than many other markets in the world because the market dynamics in China are and will continue to be very good. All the macro drivers are also in favor of China urbanization, people moving from rural areas into city, population growth, and so on. If you look at margins, we have said at several occasions that our ambition in China is to bring our margins to high single-digit levels close to 10%, and that once we are there, we will see if we can do even better. We've also said if we are successful in reaching that goal in China, that we then also have a very nice export product solution that we also can sell in other markets like Southeast Asia, even to a certain extent, Australia, New Zealand, Africa, Middle East, with better margins. Why are the margins lower in China than in the Western world, for instance? I think two reasons. One, of course, in the Western world, you have a much higher share of aftermarket business, and we know that we have better margins on aftermarket than on new build. Two, just because of the competitive climate in China. I think our industry is still an industry that is not consolidated. If you take, for instance, digital door locks in mature markets, there is a limited number of competitors. If you take digital door locks in China, most probably there is 2,000, 2,500, perhaps 3,000 players in the market. It's a much more competitive market, and a much more scattered market still today that still needs and will get further consolidation. That consolidation then ultimately probably will also lead to better margins like you see in other industries. I think other industries went through a similar dynamics perhaps a little bit earlier than our industry. Thank you very much. My follow-up is more clarification on the organic growth number. If we look at the absolute organic growth you reported in the statement and divide it by last year's sales, we get 21% roughly rather than 23%. Maybe you could just clarify that. I think, Andreas, that's something maybe you and I can take offline. It's the way it's calculated, where we take off FX first and M&A, and then you have the residual coming. I have the calculation here, which probably is easier to share between a spreadsheet. Thank you. Thank you. Our next question comes from the line of Rizk Maidi at Jefferies. Please go ahead. Your line is open. Yes. Good morning, gentlemen. Thank you for taking the question. I'll start with the price cost question. I think last quarter you stated that you needed 3.5%-4% of price increases to compensate for cost inflation. This quarter we had 3% slightly higher. You got in for an even higher price increases in the coming quarters, and yet it is surprising that your full year guidance for price cost sort of headwind hasn't changed. Perhaps if we could start with a comment there and then perhaps Nico, where do you see within your different divisions, where do you think sort of it's easier to push price increases? Where is price cost positive versus where it is sort of negative amongst the different divisions of ASSA ABLOY? You could say that material has inflated in an important way for all material. If you take copper, nickel, zinc, aluminum, of course, definitely steel. Even if you take plastic or cardboard or glue, you can't name it. All materials have very high double-digit cost inflation. Therefore it's in the first place us doing a good price management and doing that in a proactive way to compensate for that. I think if those increases come gradually within limits, you have time to adapt and do it through different price increases. Like I mentioned earlier, if the price increase is 200% on steel in the U.S., I think we cannot do that in one go and compensate fully for it in one go. Somebody else can do it. I would like to understand how they do it. There definitely, if you take steel in general and steel in the U.S., you will see some lack between price increases versus cost increases. It's not so much about the divisions, I would say it's much more about which product solutions have a lot of steel, and then you come to our steel door businesses in China, in Europe, and in U.S., and you come to our perimeter security business in Entrance Systems. Okay, thank you. The follow-up that I had was just on near-term trading. I think you touched a little bit on this. Obviously, last year we had quite big swings. It would be really helpful if you could tell us how your daily sales growth has started so far in Q3 on a year-over-year basis, please. Again, it's a bit difficult to give a consolidated view on group level because you have a lot of different moving parameters between the different divisions and also, what do you compare with? We have strong seasonality in our numbers. If you compare with last year, it's also not so easy because the way the pandemic hit last year was very different country by country and division by division. If I try to give a little bit of flavor, again, you can say that in the U.S., our commercial business, like I mentioned also at earlier occasions, we see very good sequential improvement month after month, week after week now for several months. We see that commercial business now really coming back, where the residential business stays on a similar high level. Of course, going forward, you will compare with quarters last year that were already very strong quarters last year. The comparison becomes much more difficult. That's true for residential. That's true also for South America, where second half last year was very strong performance in South America. I would say similar story in EMEIA. Residential stays on a good high level, and commercial is really coming back in a good way. Quotation levels, like I mentioned earlier, for our spec business also are good in positive territory again now in Q2. If you take Global Technologies, it's a very different picture between things that are perhaps less tourist travel related, where we have seen that vaccinations and contaminations of COVID-19 going down really has boosted mobility, has boosted business confidence, and we see those businesses bouncing back stronger, perhaps also stronger and faster than we expected. That's, for instance, the case for our PACS business in HID. Whereas the more tourist travel-related businesses, hotel, hospitality, marine, citizen ID, stay much more in challenging territory, let's call it like that. Like we said earlier, we believe that the recovery of those businesses will take longer. The good positive sign there is, at least to a certain extent, we see some of the aftermarket coming back. For instance, if you take hospitality, of course people will now during the summer start to travel. They will go and stay in hotels. You need cards. You need credentials. That business is coming back, but of course, still far away from what it used to be prior to COVID-19. That, again, will take time. Okay. Thank you very much. Thank you, Rizk. It's time now actually to round up the conference. I hope it has been helpful for you, and if there are any follow-up questions, please feel welcome to contact us at Investor Relations. We look forward to speaking to many of you then as well in the coming months. Thank you for today. Stay safe and have a lovely summer. Bye.