Welcome to the Beijer Alma Q2 2023 conference call. For the first part of the conference call, the participants will be in listen-only mode. 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 the speakers. CEO Henrik Perbeck and CFO Johan Dufvenmark, please go ahead. Good morning, everybody, and welcome to our webcast, where we present our 2nd quarter, 2023. Today, we do it now in July for the first time. I'm Henrik Perbeck, and also with me on this call, I have our CFO, Johan Dufvenmark. Good morning. As usual, we will present the overall performance and recent developments of the Beijer Alma group. In addition, we will also present our reporting segments, our two main subsidiaries, and these are Lesjöfors, a full range supplier of standard and customized industrial springs, as well as wire and flat strip components, acting globally with majority of sales in Europe and North America. It is Beijer Tech, acting mainly in the Nordics within specialized manufacturing, value-adding industrial trading and automation in profitable niches. Beijer Tech is also a platform for acquisitions into new industrial niches for the group. Today I will present to you what I believe is a good report, given what continues to be uncertain world around us. The demand picture is mixed, but we deliver growth thanks to the acquisitions and importantly, an improved cash flow. In this second quarter, the group noted overall stable demand, but there are variations within our diversified customer base. Volumes in industrial segments are somewhat lower year-on-year. Similar to what we have reported previous quarters, Nordics and North America remained the stronger regions, whereas situation was weaker in the rest of Europe and Asia, where we also experienced pressure on margins, and these are being addressed with savings. Cash flow improved, partly thanks to reduced inventory levels and other measures to improve working capital, which has been and continues to be in focus for us. In Lesjöfors, demand varied between geographies and customer segments. For business area, Chassis Springs, we saw continued growth during the quarter, and Q2 is also typically the high season. For industrial springs, as mentioned, the Nordic and U.S. were stronger regions, whereas Central Europe and Asia were relatively weaker. In China, we were expecting more macro growth. In Europe, there are really variations between segments. For example, medical segment is performing well, whereas, for example, springs ending up in the construction market have weaker demand. Beijer Tech in the Nordics had a more stable demand situation. Order bookings increased, partly thanks to new projects, but also underpinned by good general demand in Norway and Sweden. Further, the recent acquisitions are supporting profitable growth in Beijer Tech. Also in the quarter, two acquisitions were completed. Tollman Spring, which I commented on already in the last meeting, is a well-established industrial spring manufacturer with a good diversified customer base. More importantly, with this acquisition, Lesjöfors further advanced its position on the North American market. Finn Lamex was acquired by Beijer Tech in June. It's a niche manufacturer of complex laminated windscreens for the aftermarket, for buses, motor homes, and industrial machines. Very happy to have both companies on board in our group, and they both had a good start and contributed well in the quarter. Continuing with an overview of the group's financial performance. Looking at the performance, we can see that order bookings grew by 26% and increased by 4% organically. Net revenues grew overall by 25%, of which 3% was organic growth. Bear in mind the continuous price increases during the year. This means that volumes overall were lower versus Q2 last year. The adjusted operating profit increased to SEK 280 million, with a margin on 12%. In the report, we have also pointed out that the operating profit includes some costs of one-off nature, mainly M&A related, and these had a total impact of SEK 28 million, and consequently affect the margin by 1.5 percentage points. Moving on to the performance of the reporting segments, our subsidiaries.... Lesjöfors, our spring manufacturer, has two business areas. These are industry, where a wide range of industrial springs, mainly customized products, are sold to very diversified customer base globally. Chassis Springs, on the other hand, are standardized replacement springs, sold to car part wholesalers, mainly in Europe. Overall, order bookings for Lesjöfors increased by 31%, supported 20% by acquisitions, currency effects of 8%. Net revenue grew by 30%, of which 2% was organic growth. For industry, the largest business area, the growth was 33%, where, as mentioned, Nordic and U.S. were stronger regions. In Europe, volumes have been lower and more varied. Some industries, such as medical, continue to grow, whereas building sector was weaker. In Asia, as mentioned, we were expecting more growth, we can see delays of certain customer projects. In this region, this has resulted in some pressure on margins, which is addressed with cost savings, commercial actions, and production optimization. The recent acquisitions, John Evans' Sons, Telform, and also now Tollman, contributed to the growth in this business area. For Chassis Springs, growth amounted to 20% broadly across Europe, consisting of volume growth, price increases, and some currency effects. The adjusted operating profit improved to SEK 180 million. This under eighty contains some one-off, mainly related to the acquisition of Tollman Spring, in total of SEK 26 million, and these costs impacted the operating margin by 2 percentage points in the quarter. As you can see, top right, operating margin declined and was 13.6% on EBIT terms this quarter. As you've seen in this report, we do also complement the information with EBITA margin, and for Lesjöfors, this was 1.1 percentage higher than EBIT margin due to the acquisitions. Moving on to Beijer Tech, which operates in two business areas, fluid technology and industrial products, both acting within industrial trading and manufacturing. Further, as mentioned, it's a platform for acquisitions into new attractive industrial niches, such as building automation, and these are reported into industrial products. Order bookings continued to increase in the quarter by 15%, of which 8% organically. The organic growth was partly thanks to new projects in building automation and fluid technology. This order book will support sales development over this year and also into next year. Net revenue grew by 12%, of which 4% was organic. Within both business areas, industrial products and fluid technology, demand was fairly stable and relatively better in Norway and Sweden versus the Finnish and Danish markets. The organic revenue growth was primarily driven by price increases. The latest acquisitions, Botek, and now also Finn Lamex, have had a good start, and both contributes to growth in the industrial products business area. Beijer Tech's operating result increased to 48 million SEK, which includes some 3 million SEK in acquisition costs. Operating margin increased somewhat to 9.6%. I now hand over to our CFO, Johan, for some more comments on the financials. Thank you, Henrik. Let's look into some of these financials. As mentioned, net revenue is up SEK 592 million compared to last year. The largest part of the growth is due to acquisitions, which contributed with SEK 231 million, which was an increase of 16%, while the organic growth was about 3%. We did see a positive organic growth in Beijer Tech, +4%, and the organic growth in Lesjöfors was approximately 2%, affected by a slower pace in parts of the European market and a slow pickup in Asia. The effects from stronger foreign currencies compared to the Swedish krona was large, +SEK 90 million in the period. Order bookings increased with SEK 372 million to SEK 1,809 million. This was as well due to all three factors: acquisitions, organic growth, and currency. The acquisitions contributed with SEK 228 million, whereas the organic growth was SEK 57 million, corresponding to 4%. Lesjöfors order book had an increase of 2% organically, and Beijer Tech had an increase of 8%. The increase in Beijer Tech order bookings was mainly related to building automation and fluid technology, where we had a strong development. In order bookings, as in revenue, effect from FX is large, +SEK 87 million compared to last year. Now, a short look on the segments and how they contribute to the revenue and operating result. As you saw on the previous slide, we had a strong increase in net revenue, and the main effect was within Lesjöfors and was related to the acquisitions. Some of the increase in revenue is related to price increases, which was mostly carried out during 2022. Adjusted operating profit was SEK 280 million in Q2. We did reverse a part of the reservation we had for possible costs related from the exit in Russia with SEK 6 million. This is not a part of the adjusted operating profit. Of the adjusted profit, Lesjöfors contributed with an increase to last year of SEK 24 million and Beijer Tech with SEK 6 million. To some of the key financial ratios. Adjusted EBITDA is up SEK 37 million compared to last year, the difference to adjusted EBIT being higher depreciation following a number of acquisitions. Cash flow after capital expenditure was positive, SEK 267 million. We see good development in a more effective use of working capital, mainly from inventory, but also cash flows from high invoicing during the end of Q1. Net debt has increased to, compared to last year, but decreased compared to last quarter, taking the acquisitions into account. This is an effect of all other things alike, a more efficient use of our working capital. Similar to our last report, the finance net debt is lower compared to last year, related to higher interest rates and higher net debt. We managed the group's leverage, but over time, the development of base interest rates will have an effect on the finance net. Thank you. Back to Henrik for some concluding remarks. Thank you, Johan. Sorry about my mute button. Before concluding, I would like to highlight the 2 acquisitions in the quarter. On the fourteenth of April, Lesjöfors completed the acquisition of Tollman Spring Company, situated in Connecticut, USA. By this acquisitions, Lesjöfors further strengthens its position in the North American market and is now 1 of the leading industrial spring groups. Tollman Spring has a solid reputation with long-lasting customers in attractive segments, for example, industrial, electrical, defense, and automotive applications. Company had a turnover of approximately $22 million in 2022, generating performance EBIT of $3.3 million, and has about 100 employees. Latest now on June eighth, Beijer Tech acquired a majority stake in Finn Lamex in Finland. It's a niche manufacturer with strong market position in the aftermarket for complex laminated windscreens for commercial vehicles, motorhomes, and industrial machines. Located in Laitila, Finland, Finn Lamex generates approximately EUR 40 million in annual revenue with good profitability. The company has 80 employees. I would really like to take this opportunity to welcome the team, Tarsu, Seppo, Aleksi, and their whole team to our group. Our strategy to grow by acquisitions is having an increasing impact, and we continue to look for good companies which fits into our group and can deliver strong long-term growth. Already now in 2023, 4 new companies have been added. That's a significant contribution to our profitable growth. Now for some concluding remarks. In summary, over our second quarter, demand, as I said, overall stable, but really varied across customers and regions, with Nordics and U.S. relatively stronger, Europe, Asia lagging somewhat and creating margin pressure. Growth in the quarter came mainly from the acquisitions, some organic growth, mainly driven by price increases, whereas volumes overall, somewhat lower. Lesjöfors Chassis Springs grew broadly in Europe, and we saw continued growth in order in taking Beijer Tech. We generated an improved cash flow, partly thanks to inventory reductions. Finally, the two new acquisitions in the quarter, Tollman Spring in Lesjöfors and Finn Lamex in Beijer Tech. Now we will open up for questions. If you wish to ask a question, please dial star 5 on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial star 5 again on your telephone keypad. The next question comes from Hjalmar Jernström from Erik Penser Bank. Please go ahead. Yes. Hi, good morning, Eric, and Johan. Thanks for taking my question. First one is, I mean, on the Central Europe and Asia effect that you mentioned, because, I mean, despite seeing a somewhat limited demand, you still report a good organic growth in Lesjöfors. I was wondering, do you feel that you're able to compensate on the top line for the effects you see in these markets this quarter? Does this somehow reflect the order intake in Lesjöfors? Morning, Hjalmar. As I mentioned, we do see somewhat lower volumes in the whole group, and also in organically in Lesjöfors. As we pointed out, relatively stronger is U.S. and the Nordics compared to Europe and Asia, not compensating also in the stronger regions, volumes are year-on-year, somewhat down. It's a relatively measured. I wouldn't say fully compensate, that's why we have the overall effect. Okay. Thank you. Then on the savings measures that you mentioned that you're taking, could you give us some flavor of the magnitude of these and what we could expect, I mean, in the short term, and maybe some in the long term as well? Of what? Sorry. Of the. of the savings measures that you have implemented. As I mentioned, it's a range of measures. Some are immediate cost reductions, some are more commercially oriented, related to customers, some are more production optimization related. They have little bit different time frames. Some are more short term, which we should see shortly, whereas some will require a couple of quarters. Okay. Thank you. One final question on the latest acquisition then of Finn Lamex. Could you elaborate a bit on the growth prospects that you see here? Do you see the company continue to take market shares? Maybe you could elaborate a bit on the main drivers for growth there, please? Yes. Finn Lamex is a very interesting company that we now have in our group. As I mentioned, they have a strong position in a niche aftermarket, where we see a healthy growth fundamentals, both from the general market, but also in the particular niches where they are. It's a company with a history of growth over the last decade, and I think this is really important that we will continue to support the company. We are still working closely together with our new colleagues to fulfill their business plan going forward. It's certainly an interesting company that we expect to continue an interesting journey of profitable growth. Perfect. Thank you so much. The next question comes from Aline Garten from Carnegie Investment Bank. Please go ahead. Johan, I have a couple of questions. First of all, could you elaborate on what FX effects are in the net financials, or if there are any? We haven't quantified that number, there are, of course, some effects from the FX. Something, A large part of our debt is in USD. It's a significant part, and also have some euros in the debt. Meaning, of course, that, you know, just the U.S. market being a little bit ahead when it comes to increasing interest rates, that has an effect. It's not an FX effect, but it is an effect of the base rates. You know, you can see that for now at least, these increases have leveled out. Of course, as well, should this Swedish krona weaken and the dollar being a little bit more stronger, that will increase the finance net in Swedish krona. The biggest effect compared to last year is not an FX effect, being that for this period we haven't made the acquisition yet. Of course, there is a direct effect Towards how much do we have in foreign currency and what is the status of this Swedish krona towards these countries? Okay. Then we can also perhaps assume that the increase in debt is also related to FX effect in net debt? sorry, one more time. The increase in net debt, quarter-over-quarter, is also related to FX effect? I would say some of this is an FX effect. That is true. The biggest part is from the higher base interest rates, which have continued. You can the market rate always run a little bit ahead of usually ahead of the central banks. On the other hand, we have a rollover of the interest rates in the debt portfolio. The biggest part is from the interest rates. Okay, super. Thank you. Also, in Beijer Tech, the margin, it came down quite significantly quarter-over-quarter. It was 1.6 percentage points down. Could you just elaborate a little bit on the margin and the components in the drop Q-over-Q? Looking at the Beijer Tech margin over the last year, I think you will see that it's goes down a little bit. It's a group of, you know, smaller companies. I think, over the last year, we have seen that it has been, you know, around 10%, some quarters a little bit over, some quarters a little bit lower. We don't see this as a drastic change from Q1, where we had some good effects from some projects. I think we are on a stable and decent margin in Beijer Tech now, and as I said, a little bit up versus last year. It is. It's a mix of a lot of companies And some quarters that gives another% more and some% less, but, yeah, I think we're trading on a good margin that was in Beijer Tech. Okay. Since you've done margin accretive acquisitions, and the last one will go into the group, in the beginning of Q3, should we expect the margin to improve in Beijer Tech going forward, or have you had some setbacks in some other companies that has marked lower margins? I think with the recent acquisition, Finn Lamex, it's a fairly significant size company and also a Beijer Tech, by the way. Finn Lamex, of course, had some acquisition costs this year, and came in late in the quarter, but marginally, that should be accretive. We have also over the last several years, the margin in Beijer Tech has step-by-step improved, partly thanks to margin accretive acquisitions. Both of the ones that came in this year, have a positive effect. Okay, super. I have one last question. It's on the receivables. If you look at the balance sheet, receivables have increased, quarter-over-quarter, I just wondered if there's some risk related to customers not paying or, if you're seeing that receivables should come down going forward. Yes. Sorry, I missed that word, but was it related to accounts receivable? Yes, exactly. Yes. We do not see the bad debt increasing, except we had this a little bit, we had to make a reserve for one customer. Actually, accounts receivable is increasing due to higher invoicing, which is a good thing. Of course, if you compare to the end of last year, we did have a little bit low sales in the end of Q4, meaning that, you know, with this, you know, pretty strong revenue, we do send more invoices, meaning that accounts receivable increases, and over time, we are very sure on this will turn out as cash flow, and not bad debt. Okay, super. I think that was all from me. I will get back in line. Thank you. Thank you, Lena. As a reminder, if you wish to ask a question, please dial star five on your telephone keypad. There are no more questions at this time, I hand the conference back to the speakers for any written questions and closing comments. I don't think we have any written questions, right, Johan? That is true. Yeah, then, I think we will wrap up. I want to thank you all for taking your time in late July to listen to our webcast. Have a great summer when that comes. Okay, thank you very much. Thank you.