Welcome to the Beijer Ref audiocast with teleconference Q2 2021. Throughout the call, all participants will be in listen-only mode, and afterwards there'll be a question and answer session. Just to remind you, this conference call is being recorded. Today, I'm pleased to present CEO Per Bertland and CFO Maria Rydén. Please go ahead with your meeting. Good morning, everyone. Nice to talk to you. This will be my last call, at least my last call after a quarterly report. It's with great pride and happiness I can now tell you about our best quarter ever in terms of revenue, in terms of profit, in terms of growth. Also, I think we will guide you that we have a quite positive outlook for the future. Maria and I will take you through the presentation. If we go to slide number three, at a glance, if you see how this is as how it looks right now, rolling 12 months, I just want to comment on the sales numbers. As you can see, we are six months, 8.2, 8.3 something. If it's like that, we will reach and exceed, I would say 16.5 in terms of all the 12 months possible outcome at current pace. Also take in mind that we yesterday announced a new, very nice acquisition. I will tell you more about this acquisition later on, that one we probably consolidated from Q4 this year and could also add to the revenues this year around SEK 150 million. That is the current pace. We will do as much as we can to exceed it, of course, there should be more also acquisition opportunities. There are acquisition opportunities, we don't know if there's coming more acquisitions this year. We are working with that, of course. All right. If we continue, shall we give you some update what happens in the environment and what happens in our market? If you remember in the beginning of the year, we had some complaints about the shortage of containers and the very high prices for containers that makes it difficult to buy, especially from Asia. The reason for that was that all containers at that time went to America due to newly implemented tariffs valid from 1st of January this year. That was after a couple of months, we saw it much better because containers came back to Asia, and they were available for Europe as well. The prices went down. It looks very good. Now again, I think mainly due to the huge demand worldwide we have in all different industries, the prices has increased a lot again. I think they are even on a higher level today than they were in the beginning of the year. Now it's not America we can blame. I think now it's mainly Europe and other parts of the world that are asking for these containers. However, for us, we have been able to get access to containers, but of course, that will have an impact on the prices. I think the latest I heard is around SEK 16,000 for a container now. Of course, that's a minor problem. I think the shortage of components that also is in, especially in Europe, it's not a problem, but can be a problem during the autumn if our suppliers are not able to supply. We have not been affected yet in our business, and we are quite confident for this quarter. We have a lot of it in stock, so we can deliver, and there's only in some cases for our OEM business that we are waiting for maybe one or two parts to fulfill. In our outgoing deliveries, we have much more to deliver right now. We're just waiting for some small components than it to be ready built. The COVID situation is also in a good shape now. I was myself in Italy last week, so we could see that open up. It was nice to see that Europe is more and more opening up, and this will have for sure a positive impact on our business. I think we'll talk more about that later. One concern also, you see this slide, I tell you now that is, let's say, reflects our concerns for the future. The rest of the slides will tell you more about that we are positive and we see the opportunities. Also I think everyone has seen that there are some riots in South Africa. I took an call this morning, just a half an hour ago with our MD in South Africa and listened to him about the situation right now. We have 67 branches in South Africa, and we have close to seven. All these seven are in the Durban area. That is where riots is ongoing. He has-You can see that. I told you also I was in Italy last week, and we see all these restaurants open. We see all these restaurants open in Sweden right now. The people are allowed to go to restaurants in the evening. That makes these businesses also visible for us. We could see that the demand is increasing here, and still are many closed and still people are concerned to travel, they are concerned to go out to restaurants. I also give you an example on this hotel in Italy, in Venice. I asked about how was the reservation. They told it was around 50% reservations when I was there. They said from July 15, it was almost fully booked. They were also in a very good shape and very optimistic for the future. Maybe I just could ask the Operator, is the sound okay for all of you? Yep, you're coming through loud and clear on my side. Okay. All right. I proceed. No, I'm sorry. On this slide, you could also see this long story about refrigerants. This quarter is the first quarter out of the last 14 quarters, I think, that we actually had a small gain comparing quarter-over-quarter on the trading with refrigerants. We think we have reached the turning point. We talked about it a long time. We don't expect this very high impact in the future, as it will make sense, but it's much better for us to have a profit gain on this compared to have the losses we have had. That is, for us, a good news and also to remind you today, I think it's around 7% of our total business, so it's not so important for Beijer Ref as it used to be in the past. If we continue to slide six, you can see what we have done in Q2. I will start with Fenagy. You remember Fenagy, it's a startup company doing environmental-friendly industrial heat pumps, mainly based on CO2 technology. This is the same technology as we do with commercial racks for supermarkets, etc., but this is for much bigger applications. What we have done now, we have invested more in this company. The reason we have done it is that it has started much better than expected. We thought this first year should be just a year of costs and trying to find some business. I think already we are around SEK 30 million in revenues. That is exceeding over the plans we had. We could also see the quotation list we have. For next year, we are very positive with this business. It's growing much faster than expected, and that is why we needed more working capital in the company. This is the reason why we invested more. We want to speed it up. Also, we will concentrate now from July 1st, we have 51% in the company. We have also the call option to acquire the remaining 49% in the future. Looks very promising. It's also a new business for us with industrial heat pumps. In Australia, we took a small company, Industrial Refrigeration Components, only SEK 20 million, but it's a good profitability, and it's a complementary business to our current business in Australia. It's an asset, so this will be incorporated in our current business. Yesterday, maybe you could see that we have announced that we have acquired one of the leaders in Greece. Greece has been a white spot for us on the map. We haven't been there before. Inventor, it's a brand. Actually, coincidentally, I saw it when I was on a DIY Jungel in Sweden. They are doing convertible mobile air conditioners. I don't think it's a big brand in Sweden, but it's a big brand in Greece. It's a big brand in Romania. They are also distributing through Amazon. That is also a new distribution channel for us that will be exciting to see what we can do. Good profitability and the sales, SEK 600 million is increasing this year. We don't know that from this year. I will say the good profitability is double digits and a little north of that. Probably, we will take over this 80% in first round October, beginning of October. We are waiting for the merge control in Romania, and that is mandatory. We have to go through that procedure, we don't see any problem with it. It's a very low limit that you are required to do this in Romania. Probably this will happen in the beginning of October or end of September. The remaining 20%, we had also a call option, we will, what we can use in two years' time from now. The current management will remain and work and run the company together with us in the future. You can see here this year we have acquired full revenues for SEK 1.4 billion and SEK 800 million of this will have an impact this year in terms of revenue. All right. Italy, I said I was in Italy, that was to the inauguration of our new OEM plant, this plant is dedicated to do sustainable, environmental-friendly CO2 business. It's really fully loaded, and with this one, we double the capacity for producing these kind of items. It was very nice to go into the factory and see all this equipment and all these orders and what is really full loaded with work. Also to our Italian staff, so happy that they have this new factory. That will give us a lot of new business in the future. We have signed agreement with important suppliers. You can see Amazon and Tecumseh, and there will be more of these, but this is ongoing business as we always do. All right. Next slide. e-commerce sales, slide number eight. This is also amazing to see how much and how fast this e-commerce is developing. It's now 10% of total business. There are parts of new business here. You must also remember that it's also some cannibalism that we are moving distribution from ordinary business to e-commerce sales. We are building it up, that will continue to grow, and we have a target 2023 that we think we will exceed. How much was it? Well, I think we will exceed our e-commerce target 2023 anyway with the pace we have right now. Slide number nine. Also, as I said in the beginning, that for me, it's a privilege to have this slide, this report with all-time high on all lines in the P&L. Christopher will start here Monday, 1st of August, but he has already been here many times, and he has met all the people. He has met the board a couple of times, and he will also work together with Sam for one week in August. He's very keen, and he's already very much trained with Beijer Ref, and he also already has a huge knowledge of our business and our industry. Coming from ASSA ABLOY, very used to due diligence, very used to decentralized organization. It seems that we really have found a good successor, and I'm very hopeful that the Beijer Ref journey will continue in a fast speed or even faster with Christopher. All right. This is the mega trends. You know them. It's the same as usual, but they are giving us tailwind. The new tailwind is now that we also with the refrigerant prices due to the take-out scheme will maybe support us in the coming quarters instead of punish us. I will also underline that this global warming or I think this warm summer also given impact on the air condition business that you can see. Maria will tell you about the figures later on. This support us and also about the legislation. Remember the Kigali Amendment, that what we are doing in Europe, more than 100 countries in the world are committed to do the same before 2050. This will go on for a long time. All right, slide number 11, my favorite, and it's nice to see that we have organic growth again. As you know, it was 34% in Q2. Of course, it was a very easy comparison due to COVID situational impact that was negative last year. Also remember, if we compare with Q2 2019, it was 14% growth. This organic growth we have in Q2 is, first of all, of course, it's a normalization due to last year's COVID close down of the societies. That is also an additional real growing business for the moment. This was what I had. Now we come into slide 12 and further into financials, and Maria will take it from here. Thank you, Per. This quarter is our best quarter ever. Normally, Q2 is a very strong quarter for us, and we believe so this quarter as well. We have had a nice growth here, as Per mentioned, sales up with 37%, and thereof 34% is organic growth. We have acquisition impact of 6.4% and a negative FX of -3.5%. The FX impact is less than the first quarter, which is also positive. If we look into the growth, we know we have low comparables with last year, where we had the COVID impact. If you also compare with 2019, which was all-time high when it comes to sales and results, we are above that, well above, with 30%. EBITDA, the change in result, the EBITDA margin is 9.4%, and that is also an increase from Q2 2020 when it was 7.6%. Comparing with 2019, that is also an increase of about 14%. Net debt, EBITDA, we have seen the figures before, we just show them for you. These are including IFRS, which is what we report. It's 2.1, that is also the same as last year. If we look back into 2019, it is a reduction because then it was 2.5. We have good headroom for doing new acquisitions, we are working continuously with that and with our bank partners. Earnings per share also pays off when the results are higher. EPS is up 81% compared to last year and also above the 2019 figures. A lot of figures on this slide, the main takeaway is that good quarter, best second quarter ever, best quarter ever, also a solid growth here. If you look into page 14, we can now see that HVAC is growing and is now 50% of the business. Year- to- date figure was 47%, mainly that is the recurring figure. Q2 is a very strong HVAC quarter due to, of course, the summer season and the heat waves. I think it's good that we have two strong business areas of HVAC and also the commercial refrigeration, which also includes refrigerants and copper components. The OEM business is now 9% of the total revenue. The plan is, of course, to grow our OEM business. As Per mentioned, we have to now double the capacity. Looking into page 14, which I am, we can see the organic growth. We have organic growth in all product segments, and that is very promising. That goes also for the refrigerants. We have had quarters where we have seen reduced refrigerant prices, but now it is a turning point here. All our product segments show good organic growth, and that is also what we have communicated later. You can see also that OEM and HVAC are growing very nicely. Yes, page 15, I said it before, strongest Q2 ever. You can also see the rolling 12 figures, what we are targeted for when it comes to EBIT, about SEK 1.3 million. Also the margin, the EBIT margin for this quarter was 9.2% compared with 7.6%, and for 2019 it was 9.3%. It is also where we see the volumes are increasing, sales are increasing, we get a nice drop through. You can see that on the next slide on page 16. We have good contributions from our acquisitions this year. If you recall, we acquired Sinclair at the end of last year, and they have contributed nicely to the profit and also to the margin. FX, as I said, on the result, it's an impact of 9 million SEK, so not too bad in that regard. Also a nice drop-through on the organic, which is mainly driven by the volume. Looking into our segments, our geography, one can see that all regions have increased. We can see that also Southern Europe is increasing most, and that is also our biggest region. They contribute well both on sales and EBIT. We can also see that East Europe, where we have the Sinclair acquisition, have grown nicely and also increased the margin. Africa, as Per mentioned, they got a big hit last year from the COVID, and of course, the situation is challenging, but we still believe in Africa and that they will come back. Before the COVID, they were actually booming us in terms of margin. Asia-Pacific, we have done some good acquisitions, increasing the margins, but also some good efforts in cost control. Africa and Asia-Pacific, they are more into winter season now. Despite that, we see nice profit improvement in Asia-Pacific. You can see the Nordics is not increasing so much on the sales and a little reduction in EBIT. We can see that the Nordics didn't get so much advantage from the COVID last year, and we also have pretty high comparables when it comes to the OEM business beginning 2020 that we didn't have in the beginning of 2021. We don't need to worry about that, and we will recover from that as well. Cash flow. A nice cash flow and an increase here. You can see on page 18 that the normal seasonality for the rest of cash flow is that we tie up capital first half and release second. I would say that 2020 was a very challenging year where we stopped all deliverables. We were able to actually have a positive cash flow in Q2. I would say 2021 is more back to normal and it's related to actually having increased sales, so increased assets, because actually our inventory churn has increased. The main reason for that, we have negative working capital is that we have assets from sales. Net debt is pretty stable. You can see that on page 19, and that we have reduced this from 2019 as well when it was about 2.5, and now it's down to 2.1, as said before. Yeah, we're on page 19. On page 20, we have some nice information from the business paper, Dagens Industri, here in Sweden. They have done a comparison about the share development of some large cap industry companies and some of the OMXS 100. We were on number four here, so 161. The rationale behind is really you can see a link here between if you have a good and nice organic growth year-over-year, which they assess, it also pays off in the steady stock return. Our return has been 29% over the last 10 years. It also, of course, impacts the price to earnings valuation here. Some good data, which we're very proud of. Finally, before we let you in for Q and A, maybe you wonder now what is the DNA of Beijer Ref and when Per is leaving and handing over to Christopher Norbye. We are in a market that is growing, and we get some tailwind from the green technology and the shift in technology and also some strong legislation here. We as a company have had a clear focus and a clear strategy over the years, and that has made us stay focused and also focus on what we are good at. When it comes to the employees, we have a very strong corporate culture, and we get responsibilities since we are a very decentralized organization, meaning that business is local and the MDs are responsible for taking care of all the customers out there. Then we have our synergies on the purchasing side. Last but not least, if we perform, we also get freedom, and that pays off in a stable return. I would say that's also been the value of having a strong owner base, both an industrial owner and now EQT that focus on growing the business and also making it better. I think there are notes that the future is green, and we are here to try to develop the business. Okay. Thank you, Maria. Maria and I, we are ready for questions if anyone wants to ask us something. Thank you. If you wish to ask a question, please dial zero one on your telephone keypads now to join the queue. Once your name has been announced, you can ask your question. If you find your question is answered before it's your turn to speak, you can dial zero two to cancel. Our first question comes from the line of Carl Ragnerstam of Nordea. Please go ahead. Your line is open. Good morning. It's Carl from Nordea. A couple of questions from my side. First of all, of course, a strong report. Looking at the drop through, I think in the quarter it was 13%, 14%, and it seems a bit muted, especially looking at previous quarters, for instance, Q1, 25%. Could you perhaps give some flavor on that? You should be benefiting a bit from low selling and marketing expenses, cost savings using refrigerant headwinds and so on. What is happening with the drop through in the quarter? Thank you. I think there are some things you should take into consideration here. Everything you said is correct, also you can see here on the growth that the main part of the growth, not the main part, but the most important is on air condition. And air condition, as we said many times before, it's slightly lower gross margin than we had on the refrigeration. This is one reason for drop through. Second reason is that something I'm not sure if we disclosed it in the report or not, but you should be aware of, we have had some one-timers in Q2. First of all, we have our LTP program, and we have also had all these recruitment costs, et cetera. I would say all in all, we have one-time costs in Q2 are more than 20 or just around SEK 20 million, but should be due to these extraordinary items. Okay. Very helpful. Thanks. Yes. Okay, we should expect the drop-through to normalize more in the coming quarters, I guess. Well, yes. I'm not sure we could expect the same level as in Q1. Also the comparison, last year we had a lot of subsidies especially in April and May, and this we'll not have in the future. I think it should be something between Q1 and Q2, we should expect. Okay, perfect. Also regarding COVID-19, we have seen tightening restrictions in parts of Asia. We've seen it in Australia as well. Have you seen an impact on the current trading in the specific geographies? I think you could see in Asia, where we have the main part is we see an impact, but it's in relatively small markets. Malaysia, Thailand, we for sure see a negative impact. We could see it partly in Australia, but I think Australia is running quite well for us without this. The impact is mainly in Taiwan and Malaysia, and that is not so big countries for us. It's limited for the moment. Okay. Perfect. Good to hear. On the acquisition yesterday, it looks like of course a nice company with good margins. Do you see possibilities for purchasing and selling synergies? Also we know that Christopher's legacy is being active with price increases. Is it fair to assume that you have the intention to do the same with this acquisition as well? Yes. Every acquisition we do, we always see synergies. I would say we maybe in general, we have more synergies when we buy on refrigeration side than we buy on the air condition side. This Inventor, they take their products from a Chinese factory, and the same Chinese factory we are doing a lot of deals with in other countries. We sell more or less the same products with other labels in other markets. This is coming up to be one of our core suppliers, very important suppliers. There is for sure one synergy in Romania. We are already, we could see some synergies. We also think that we have not decided, but this is an opportunity, a synergy opportunity that this could also be a platform for us to start the refrigeration business in Greece. Now we are only doing air condition with Inventor. Yes, we see synergies. Okay, perfect. Also one more question here. Looking at the e-commerce growth, the share is growing nicely, as I said before. What costs are allocated to this project, and does it have material earnings impact? You mean the cost to implement the e-commerce? Yes, to drive e-commerce growth. Exactly. I don't have that in my mind right now, Carl. Of course it's not free of charge because we have hired a new CIO, we have people working with this on full time. It's a huge work. I think it's not so much additional cost. I think the most important here is that when you sell on the web, you have fixed prices. If you sell through a branch, the branch manager or the sales guy could always give you one additional percent if you are a frequent customer. That's impossible to do. I think there is an improvement opportunity on gross margin. Also that could be when we can scale it even more, it could be some cost reductions we think in the future. Not sure, Maria. I think, the biggest part is really to do the product categorization here, and that has been done over the years. Launching the e-commerce, we have a stand-up program for that. That is taken in the current P&L. The bigger portion has been here to map all the products within the group, the same system. Okay, perfect. Sorry, one final one from my side. Could you also give some flavor on the sales development, sequentially or year-over-year, if you like, for the HoReCa segment? You touched upon it a bit, but if you could be more specific. Well, again, I think I've said it many times, it's very difficult for us to really know what is the HoReCa segment, because we are doing business- to- business, and in most of the cases, we don't know the end customers. We know, of course, which sector our end customers are in general, but that specific segment we don't know. We know when it's coming up, as we have seen now in Q2 with a lot of commodities, line components, and maintenance products, that is belonging in a quite big scale to the HoReCa segment. It's very difficult to give numbers. We can confirm that the pent-up need that we have talked about has started. That means that the HoReCa segment is opening up again, and that gives us, of course, additional business. Okay. Thank you very much. Thank you. Our next question comes from the line of Erik Cassel at ABG Sundal Collier. Please go ahead. Your line is open. Yeah. Good morning, Per, Maria. My first question is on pricing. You mentioned that you have been able to handle price increases from suppliers very well. Any info on how much you have increased your prices on average would be helpful. It's a very difficult question, Erik. We have so many suppliers, I would say a massive range between, I think 0 up to 8%-10%. I would say if you take an average of a median is less than 4.5. I would say, let's say an average 3%-4%, something like that. Okay. Is that neutral on margins, or has it created some kind of headroom for further price increases from suppliers? Do you expect to increase prices going forward as well? We have seen slightly growing margin for us. We are measuring the gross margin, very important for us, even if we don't disclose it. What we said, the message, and what we are really pushing now, because with this environment, with this demand in the market, and also in some cases especially from our competitors, with shortage of products, this is an opportunity to increase prices that we have not seen the last 10 years. We are pushing for price increases, and the strategy is, of course, to compensate in addition to what the price increases we have, because we're also pushing back on all price increases we get from suppliers. This is a battlefield. Sometimes you are successful, and sometimes you are not so successful, and sometimes you have a delay. The good thing here is, of course, when we can push our price increases from our suppliers and say, "We are not accepting that before three or four months from now," we could always try to come out and compensate from our price increases in advance. That is an opportunity for us. We are really pushing for price increases, and I think we do it quite well. The target is to improve, of course, yeah. As I said, it's a battlefield, it's a market, and we have competitors on the market as well. Okay, very good. Do you think this is sort of a temporary margin boost, or could you defend prices going forward as well? Well, I think our margin is quite stable. When we now are not suffering so much as we have done in the past from refrigerants, for example, that is an opportunity for us to grow the margin. On the other hand, if we do more in the air conditioning field, of course, we grow the EBIT margin, but we don't grow the gross margin, because it's so much more volume there. It will be good for the EBIT margin in the long run. All in all, it's always a focus area to see what we can do to improve margin. The e-commerce could also support that in the future, as I said before. Yeah, we think we can grow the margin, absolutely. This is what we always work. We have also a competitive market outside. Sometimes, even if we are market leader in many cases, and there are many followers, there always could be a competitor who dump prices. That is what has always happened also. Very good. HVAC demand was obviously very high this quarter. Do you think volumes have been pulled forward in any way from Q3 due to customers perhaps being scared of shortages going forward? Well, I think no, I don't think so. The last AC, it's a seasonality product in many cases. We can sell a lot in Q2 and Q3. Warm weather is always supporting us, and I think a lot of people have learned from the last summer that it's nice to have air conditioning units, and they want to buy air conditioning units. I don't think that the customers really understand the shortage. You know also, even if we are selling more than one brand in air conditioning, we are dealing with Toshiba, we are dealing with MHI, Mitsubishi, we are dealing with our own brand now, Sinclair. I can also tell you, has been a success for us. It's our own brand, a long- price label that is launched in many markets since we took over. When you are dealing with more brands, even if you run out of one brand, you can sell another brand. I think we can handle that quite good. I also believe we can do it during the autumn, even if that should be some disturbances in the deliveries. Okay. Thank you. On margins, as Carl highlighted, I also would have assumed you would be able to reach a higher margin with drop through as the volumes were so high. You had 10% EBIT margins in Q2 2018 when refrigeration grew a lot. Is it possible to have those sort of margins through HVAC growth as well, or is it primarily from refrigeration? I think that even if the gross margin is lower on HVAC, I will say that the EBIT margin is higher because we have so much more volume. We have double-digit margin in many, many markets. We have additional costs that have a negative impact on the margin, we could also see the new acquired company. I said it's lower for 10%, I mentioned for you in Inventor. We have more opportunities to buy companies that have higher margin. In general, we have higher EBIT or EBITA margin in HVAC because it doesn't require so much cost. It doesn't require so many people working in the SG&A cost. Absolutely. I think if we continue to acquire companies combined with a nice organic growth, it's more likely that we will have more air conditioning business in the future than refrigeration, because there's much more to buy in that field. The good news is that if you buy companies in that field, that's also higher EBIT margin. Okay, perfect. It is a higher growth rate for the moment, or it's a very high growth rate. Yeah, exactly. The last one from me. You talked about a high level of order intake last quarter, particularly for OEM. Have you seen similar order intakes throughout Q2 and perhaps the first two weeks of Q3 as well? Has there been any shift in demand? Do you mean order intake for delivery now in Q3? Yes, we have had a nice now in July, and in one, two weeks in August, there is vacation, holiday. That is always. For the moment, our order backlog is good. Also Maria mentioned about the Nordics was not so good as you remember in Q2. I can tell you the backlog in Nordics is much bigger than it was one year ago. Yeah, we have a good backlog and order intake for the moment. Okay, perfect. Thank you very much, Per. Thank you. Thank you. Our next question comes from the line of Viktor Trollsten of DNB. Please go ahead, your line is open. Thank you, operator, and good morning, Per and Maria. I hope all is well. You have touched a bit upon it. I have a couple of questions on the sales and EBIT bridges on page 16, and especially looking at the M&A contribution. It looks like a very healthy EBIT margin of 16%. You touched upon that with the Sinclair acquisition, with own brands having good profitability and so forth. Could you expand a bit on, is that the sort of target you are looking for going forward as well, with higher profitability than the 5% EBIT margin you have talked about as the classic characteristics historically? Basically, should we expect a smaller dilutive effect on margin from M&A going forward versus historically? That was a good question. Well, we have learned that it's much more interesting to acquire companies with high profitability than a low profitability. We have seen so many more companies with high profitability and higher margin. Now when we look more into the air condition business also, because it's higher, no doubt about that. If you know refrigeration, it's normal private companies, it's let's say around 5%-6% companies because it requires more people. You also know all the synergies we can implement, we can increase that to have double-digit also, it needs much more work for us. I think it's also when we look into what we have in our pipeline. That is something I think I mentioned before that has happened since we have a new principal shareholder from EQT instead of Carrier, that we are working much more focused now on acquisition. We have always been working with acquisitions, you know that, but now we have a pipeline and we have a long list, we have a short list, we have a hot list, we have a possible list, et cetera, on possible targets. We could see also that there are many targets that should also deliver more than 10% profit. I mean, 10% double- digit is something that is a level for us. The answer is yes. Okay. That is clear and interesting. Just an observation on that, looking at the Sinclair acquisition, it seems you are able to maintain the same multiples you pay for those sorts of targets despite your high profitability. Are you confident that the M&A multiples you pay will remain at a similar type going forward? I think if you compare what that could be different multiples and different negotiations, that's for sure, different markets, but it's in that level. We think it's very easy to make the M&A calculation to see that it will be a good gain for Beijer Ref on that level we discussed on everyone, and that will be a good contribution in the cash flow and a good contribution on the EBIT. That's no doubt about that. Of course, one asked me about the synergy now with Inventor. Inventor is also a private label own brand like Sinclair. Now we will go for Sinclair International, but I think we could also utilize Inventor in that area around Greece because it's a very well-known brand in that area. That is for sure a synergy. As I also said, with Sinclair, when we launched it in the big markets like France, Italy, and Spain, it's improved margin, of course, when you do it with your own private label. We believe that, as I said about Sinclair, that started a little slow, but now it has exceeded our expectation, and we are very keen to continue to launch it even more markets in the future and develop that brand. That could also happen with Inventor. Okay. That's clear. Just final for me, Inventor brand, does that have the same sort of margins like Sinclair, are you at 16% or? Well- I think Per mentioned that before. It is double digits in the higher ranges. Well, Inventor today is a double-digit company, and that's even north of the double digits. Okay. It's on that basis, yeah. It's a profitable company. That's helpful. Thank you very much, guys, and I'll step back in line. Thank you. Thank you. Thank you. Our next question comes from the line of Andreas Brock of Coeli. Please go ahead. Your line is open. Thank you. Hi. I only have one big picture question. The other questions have been answered, and when I think about all these heatwaves, heatwave in Europe, heatwave in the U.S., the planet is getting hotter and hotter. Have you done any analysis that if the number of air conditionings in France increase to 50% of what they are in Spain or can you give us any hint of what the market potential is if air conditioning spreads because of global warming? Not market- by- market, but we have looked once, I think I mentioned, in the penetration of installed air conditioning units, residential. We have seen one investigation, which we compared U.S. with Europe, and that was around 25% of all installed residential units in the world is in U.S., that is a population around 330 million. Europe's 450 million-500 million represents here 6%. That is one investigation we have done. We could also see how the penetration is increasing now in Europe. We think that is one of the factors that we pursue this growth now. Europeans had learned to understand how convenient it is to have air condition. Also now when the heatwave is coming, that has started the boom, and now today I think we have a heatwave in Spain again, close to 50 degrees in South Spain. In Greece, it's 35 degrees. All of you have been in this heatwave. We have also 30 degrees in Sweden right now. When you have learned to understand the convenience to have air conditioning, to chill down, it had wings on the water. We strongly believe that we have not done that country- by- country. You can just go to your own home. I can go to my wife, and you know we have air conditioning in our house as normal Swedish people, but it's running during the summertime always, so you get used to it. It's our conviction that the penetration will continue. I'm not sure if it fully answers, Andreas, your question, but this is what we can say, I think, in Sweden right now. No, it makes sense. The biggest investment thesis I have and the strongest case I have of Beijer Ref beyond acquisitions and excellent management and all that is that it's the HVAC business that I'm interested in. You're basically saying that if Europe becomes half of what U.S. is overtime. I'm thinking 15, 20-year time, the whole business could double. It's just a very strong tailwind. Thank you very much. All the best, and I look forward to meeting up on the other side. Thank you so much, guys. Yeah. Thank you. Thank you. The last question in the queue so far. Just a reminder to participants, if you do wish to ask a question, please dial zero one now. The last question in the queue so far is from the line of Robert Redin of Carnegie. Please go ahead. Your line is open. Yeah. Hi, just a few follow-ups. Just the non-recurring items in the quarter, did you say they were SEK 20 million-SEK 0? Yeah. Yeah. Cool. On the price increases you talked about, I think you said 0%-8%, 9%, but also the procurement price increases or were they your price increases towards customers? Sorry, Rob, I'm not sure what's happened. We have difficulty hearing your question. Okay. I was asking about those price increases you talked about earlier. You said something about 0% to 8%-9% price increases. Maybe on average 3%-4%. Were those price increases that your suppliers have communicated towards you, or were those your price increases towards customers? No, I think that was what the suppliers communicated to us. Okay. As you know how it works in our industry. When they announce price increases, we put out our full army to have a counterattack. If they announce 8% or 7% or 6%, it will never end up so much because there's always a long, hard negotiation before we find a level that also we accept as customers. Of course. That was also, yeah. I think, Maria, you said that the organic growth in Q2 was mostly volumes. These sort of needed or necessary price hikes, are they more of a Q3, Q4 thing, or was there already a certain level of price hikes taking into the Q2? If I answer first, Maria, you can add. I think the price increases mainly come now in mid- to- end of Q2. Now the really shortage has started. We could see it from May, I would say. All right. More of a full quarter effect next quarter, then. You know, you have price increases, but you cannot be affected after three or four months or something like that. Exactly. That was what I was after, that the organic growth in Q2 was mostly driven by volume. While price could be more of a component in Q3, Q4. Yes, in Q2, we didn't have any price increases, really. Perfect. On M&A, I mean, it sounds very positive, your comments. That's my final question. You've done SEK 1.4 billion acquisitions with SEK 1.4 billion of sales so far year- to- date. That's sort of 10% of your 2020 sales. You've bought a lot of companies in your M&A pipeline. Is the M&A pipeline still strengthening or lapped, or have you bought off a lot from the pipeline? We are evaluating targets all the time, as you know, and we have also allocated more resources to the M&A activities. Maybe we have speed it up a little bit, yeah. There are still many companies. In the pipe, we have a lot of companies that we are evaluating and also new markets, et cetera. There are more to come. Perfect. Okay, thanks. Those are my questions. Thank you. As there are currently no further questions in the queue, I'll hand back to our speakers for the closing comments. Okay, thanks to all. Maria and I will have another internal call now to the organization. Thank you. If anyone wants to have additional information, you know we are always available to your support. You're free to call us if you want to add more questions. If not, wish you all a nice summer and a hot heatwave, of course. Thank you. All the best. Thank you.