Welcome to this webcasted conference call following the publication of our Q2 report this morning. As usual, our CEO, Christoph Michalski, and our CFO, Ivar Vatne, will hold a presentation. After that, we will open up for questions. By that, I would like to hand over to you, Christoph. Thank you, Lena. Good morning, everyone, and thank you for making the time joining our presentation this morning. I'm quite happy to say that I think quarter two has been a continuation of quarter one. If we go on the slide Q2 performance, you have seen our results. First, we had a very good sales growth driven by positive market momentum, which resulted in a 6% growth, 9% excluding exchange rates. Profit grew in line as well at 14% at EBITDA level. We also could deliver a good and strong cash flow with operational cash flow after investment of SEK 694 million. In the quarter, we also had the production of our first commercial liquid packaging board in Gruvön, which clearly was a big milestone. That will allow us to continue to grow and also to improve our mix across the different mills and factories. So far, in summary, our Q2 performance. Let me give you an update a little bit on the business status and the market outlook. If you would like to next slide, please. As you know, during the pandemic, the food and beverage market generally has been quite stable, sometimes positive, but it was basically the other segments which suffered quite a bit. Today, what we see is, despite some of the messages in the markets of the next variant or if there's a fourth wave, we still see a positive outlook when it comes to consumer products and to some extent, luxury products, but also in the industrial area. You could see that also when you look at our paper sales, did relatively well now in quarter two, and we do not expect the market slowdown in the next quarter to come. Overall, I think we feel that the market conditions are pretty good for the rest of the year. We expect some uncertainty around coronavirus but we do not expect a sudden stop of the market. If we move to the next slide and talk a little bit about our highlights. Market conditions for all segments were very good. We have strong order books. I think we singled out liquid packaging board because these are clearly long-term contracts where movements are not so dramatic. The other segment, carton board, container board, are very strong. You have seen, some of you made some comments about our good performance in paper versus board. I think it's basically the lack of supply out of Gävle for a couple of weeks, which created this imbalance between paper and board, because from a market perspective, all segments are doing very well. We had a maintenance shutdown in Gruvön, and we were incredibly focused on the COVID-19 situation, which at the time was still quite serious. We tested people coming into the plant. We had about 1,000 maintenance workers coming in and out and did 48-hour compulsory testing on everyone and discovered also a few cases which didn't lead to a spread, but basically, the security worked. We were able to finish the shutdown, which I think when you compare our data this quarter would have been even better in comparison to last year, considering that last year we didn't have a shutdown on any of the mills in quarter two 2020. I mentioned that in Gävle, we had a loss of production of 22,000 tons, which was due to an explosion close to our pulp mill, which led to slower down of all the machinery and just stop at the pulp mill. Clearly, as I said, even in the report, we are incredibly sorry to all our customers who expected to get these volumes of product, and at the end, we needed to basically prioritize and make sure that everybody got something. I would like, again, to apologize for this mishap. Excellent progress for the new board machine in Gruvön. I already mentioned that. This gives us, as I mentioned, two opportunities. The first one is to accelerate slowly the production on KM7 itself, but in particular, to manage now the portfolio in a way that we could use on the mills, which are the best made for the different type of products. We are moving products between Gävle, Gruvön, and Frövi. This mix effect is really what will make profitability better, as well as the increased production of KM7 in itself. We continued also our cost and efficiency program, and that is progressing well. If you would like to switch slide, please. The additional contribution from cost and efficiency program in quarter two was SEK 70 million, so good progress. I think to date, we have delivered SEK 475 million, and we expect to reach SEK 600 million at the end of the year, and we will carry some forward next year. I think we will probably look for new activities. This is not the end of our efficiency program. I think this was the first step of saying, "What are the low-hanging fruit? What can we do?" As you know, the start of this program was based on better cost outcome we see from competitors, and we want to get in line and be the best in class. I think from next year we'll launch probably a program which will look much more into the structural savings and how can we further increase sustainable cost savings going forward. A quick word on raw material on next slide, please. Raw material cost in quarter two. These are not the cost movements that the market shows, but these are the cost movements that we had internally. For example, we had lower cost in energy than in quarter two last year. This is mainly due because of good hedging. The energy price actually went up, as you know. We had relatively stable costs for pulpwood. Very good availabilities. There were some movement in the market in quarter one and quarter two with some closures, which freed up some wood or will free up some wood. Remember in quarter one, we talked a little bit about some price increases that some players wanted to get through. We haven't seen any movement on price so far in any significant way. We do not see any reason why fiber availability would change. I think overall we are well positioned for quarter three and probably quarter four as well. Chemicals carries a bit more worrying. As you know, we had some impact on the Texan bad weather, which led to some shortage in latex in particular, which really increased costs dramatically. I think overall, we see a trend of increased prices on chemicals. We expect this trend to continue, and it's probably a little bit similar to the trend that we are currently experiencing with high demand on packaging material, raw material, chemicals, et cetera, overall. Probably this trend is in line with our trend as well. Purchase pulp costs has increased. You have seen the record prices in pulpwood. Currently in China, we see already a slight drop, but we expect Europe to hold up. There might be a slight decrease, but I think we are looking more for stability going forward rather than the big decrease. As you know, we are also a net seller of pulp, so to say. High pulp prices for cost base is not good, but generally for BillerudKorsnäs, this has a positive effect on profitability. Ivar will talk about that a little bit later. I mentioned already energy. Energy costs, because of our hedging policy, will stay unchanged for quarter three. This is not to be said that we expect energy prices to go down significantly. It's more our internal hedging. With that, I think I would like to hand over to you, Ivar. Thank you very much. Thank you, Christoph, and good morning, everyone. If we can move to slide number seven, please. A couple words about our net sales performance. In general, this is a strong top-line performance in the quarter. 6% of reported and taking out the currency +9%. We have significant positive help from pricing, roughly half of this impact is coming from our pulp sales. The remaining pricing impact for Q2 is mainly coming from containerboard, where we had several pricing rounds of being announced in the beginning of 2021. We also have a sizable help coming from volume and mix. Sales volume is up 2% and mix help is coming from several places, but a very big chunk of that is coming from KM7 and a steady increased share of coated material and reducing gradually the waste and secondary material, which is extremely pleasing for us as has been one of the priorities. Moving into next slide. Some words about the profitability bridge. There's quite a lot of pieces here, so I'll probably just spend the time on some of the bigger ones. We have a smaller negative currency impact of SEK 35 million, fully linked by the Swedish krona strengthening versus euro and dollar and helped by our hedging positions. The Gävle mill incident has already been mentioned, the main driver being 22,000 tons of volume loss net impact for us in the quarter, -SEK 75 million. Raw material and logistics bundled together coming in with a SEK 40 million help. There's quite a lot of different items in this bucket. The biggest being we have a fiber and pulp help loss of SEK 100 million, which is partly offset by chemicals, SEK 40 million, and logistics, SEK 20 million. As Christoph mentioned, for chemicals, mainly the latex that has been on usual pricing curve so far in 2021. The pricing piece is the biggest bucket we have on the chart, SEK 200 million. It's been significant in the quarter. As mentioned, roughly half of that is coming from the market pulp sold, while the majority of the remaining part is on containerboard. We have a solid help from volume mix, as we mentioned. We have the SEK 70 million that Christoph mentioned from our cost and efficiency program. That brings us up to an EBITDA of SEK 1,083, excluding the maintenance stop, and this is very pleasing to see because this is not a level we have seen for quite some time. It's really also encouraging to see that part of the programs that we have initiated and focusing on over the last couple of years is working. Including the maintenance stop that we had in Gruvön, it brings us back to SEK 883 million for the quarter. We move into next slide and some comments about our product area board performance. It wasn't the easiest of quarters for product area board. Both the Gruvön maintenance stop, which was planned, and the Gävle mill incident, which you can definitely say was not planned. Two major events. Despite all of this, board delivers 2% net sales growth, +6% if you exclude currency, and that is with flat volume. You see the breakdown for yourself by segment. All of the growth is coming from cartonboard, which had another excellent growth quarter. In fact, if you look at the last, in 13 of the last 14 quarters, we've experienced double-digit top-line growth for cartonboard, which is very pleasing and certainly on strategy. Gävle mill incident impacted heavily the liquid packaging performance, and also the Gruvön maintenance stop had an impact on containerboard. There's several profitability items, the biggest one being pricing, lower fiber cost, positive mix, and help from a cost and efficiency program. The Gruvön annual shut and Gävle mill incident drags our EBITDA numbers slightly negative versus year-over-year. We move to next slide. Some comments around the product area paper. I think it's very fair to say that the market situation is very different now for paper versus what we saw in the end of 2020. Net sales +5%, +12% excluding currency. That's a very strong number. Sales volume, +6%. market pulp sales is leading the growth, followed by kraft paper, where in particular FibreForm had a good quarter. In general, you can say that excluding currency, we actually see growth now on most of the grades within kraft paper, which is very pleasing. Sack is flat, with brown sack being positive and white sack slightly negative. We do have positive sales volume growth for both white and brown sack. Somehow, a little bit similar story that we also had for board when you look at the profitability. Good progress helped by volume growth pricing and benefit from our cost and efficiency program. We move to next slide, talking about another very strong cash flow delivery. It is certainly one of the highlights of the quarter. Operating cash flow is up roughly SEK 700 million versus previous year, driven by both a stronger operating result as well as help from our working capital in particular. It means our balance sheet keeps getting stronger, and net debt leverage now is down to 1.7, as you can see. We are making a small update on our CapEx estimate for 2021. SEK 1.8 billion is the new number that we looked at, which is a combination of SEK 1.3 billion base CapEx, and we have taken down slightly the estimated impact of the program of the Frövi recovery boiler in 2021. Good. With that, I hand it back to Christoph. Thank you, Ivar. Let me spend some time on sustainability and innovation. If we can move to the next slide, please. As you know, we are already 97% fossil free in our production. We set, like I think most companies did, science-based targets for 2030. As you know, it's always at the margin, at the end, where the most difficult reductions are. We designed a program which will bring, step by step, all our mill in a fossil free state. Next investment, which we will implement in 2022, is in Gruvön, where we move towards a backup boiler, which is electricity driven, basically renewable energy electricity, and which replaces an old oil boiler. Step by step, we will take out fossil fuel first, then in the later stages of the program, we will convert our gas consumption from fossil gas to biogas as quick as we can. That's a bit on sustainability. It's a good program, which we will implement within our current CapEx over the years. There is no direct impact to the numbers that Ivar was just mentioning for this year or the years to come. We also had some good new product launches this last quarter and this month. One is Pure DecorX, which is a 3-ply and light coated white top liner. Then it's light, strong, and climate smart. What do we mean by that? It's lightweight, it is much stronger so you can use less material, and therefore also less weight. CrownBoard Prestige is a coated carton board with bleached primary fiber in the top layer. Basically, it's a very good-looking carton, which is used mainly in the luxury and consumer goods products. The market response so far has been very positive on these two new qualities. I come to the outlook. No big change, I don't think, to quarter two. We expect quarter three to behave very similarly in terms of market condition. Probably, we see that trend continuing for the rest of the year. I think we see overall good availability of pulpwood, which should keep prices to some extent under control and have maybe some pressure, but definitely with availability, also some stability. If it comes to other input costs, I think we will manage that with some continuation of looking at our prices and to see, in the strong demand area, how much we can compensate that. As you know, we have a number of business priorities. Clearly, health and safety is number one, so we continue on that. I think we're making slow progress this year. Stable production is the absolute critical factor to deliver our results for the rest of the year. As I said, the market is strong and stable, and stable production is basically the only thing that will allow us to deliver. Ramp-up at Gruvön. I think I will now, as we said already in quarter one, we will less and less talk about a specific mill or machine or something. As we are now producing commercial grade for liquid packaging board in KM7, this will continue. I see good opportunity there. Competitive wood supply is what I mentioned before. We are looking, as you know, we are sourcing in Sweden and the Baltic States, a little bit in Norway, and we will continue to optimize our supply on that front. Finally, very important, we still have a little bit of our cost-saving program left for this year, next year, we have to rework what is our next cost-saving program and efficiency program to make sure that we reach best-in-class cost base for our kind of business. Good. That brings me to the end of the presentation. Thank you for your presence. I think now we will move into questions. Operator, if I can hand over to you, please. Thank you. Ladies and gentlemen, we have a question from the speakers. Please press zero one on your telephone keypad and you'll enter a queue. Our first question comes from Robin Santavirta from Carnegie. Please go ahead, your line is now open. Thank you very much, and good morning to everybody. I have three questions, and if I take them one by one, if that is okay with you. First of all, regarding H2, if we look at the sales price increases that you would expect and then compare that to the cost inflation, and if we exclude the rationalization program, will you then expect a neutral variance or a positive variance in H2 from those two items? Could you maybe, Robin, list all the questions, and let me take them one by one. Is that okay? Yep. Okay, that's the first one. Regarding the KM7, obviously now performing really well. Could you give an indication or an update of the current volume performance, the volume you would expect for the full year of 2021? The timing when you expect KM7 to reach full capacity. Is that 2023 or 2024? Also related to KM7, a question. You stated in the last quarter it reached EBITDA break even compared to the three machines or the performance of the three machines that you have closed. What kind of profitability did the three machines have? Final question is related to the current strong market. Obviously, it is a good market. Is this now only driven by a cyclical strength, or are there also structural elements, for example, paper-based packaging gaining market share over plastics? Those three ones. Thank you. Okay. Good, thank you. Look, let me start with question three, and then we work our way backwards. I will share some with Ivar. When it comes to the market, I think you have probably a double effect. I expect that clearly you see structurally a lot of preference towards paper. We have lots of brand owners discussing with us what packaging option could we bring out of paper to substitute plastics. You have a lot of interest in that area, and that's clearly more structural shift. However, I think what we are also seeing is a cyclic change in the sense that I think COVID-19 brought the world economy a little bit to a stop, and now we are starting up again. As you have seen already in the stock market yesterday and today, there are a bit of wobbles. Is a fourth wave coming or not with Delta? Will that impact the economy as previous lockdowns before? Will we have lockdowns or not? I think there is a level of uncertainty, but I think overall, most people are quite optimistic that the worst of COVID-19 is over in the sense of lockdowns and economic impact and things like that. That basically drives up a certain amount of economic activity in which then clearly being part of a very significant material in that economy where we profit from. That's my sense. I think we have these two trends. One is more in the area of substitution of plastics, and the other is clearly a good, relatively carefully optimistic outlook. KM7 I think we're planning 350 million-370 million tons for the machine this year. The capacity of the machine is 550 million tons on current specs. We expect to reach that in 2024 something. That alludes my comment why I'm saying, "Hey, if we want to continue to grow 3%-4% going forward, we need some ideas after 2024, i.e., 2025 onwards, where our volume growth can come from." That was one of my last statements. When it comes to EBITDA performance, look, we broke even. I don't think we will comment on that anymore. We don't comment profitability by machine or by plant. You have seen the overall result is encouraging, and I think I will leave it like that. Ivar, do you want to take the price question, maybe? Yes, I can do that. Actually, before that, I just wanted to comment one thing, Robin, because you did ask about the KM7 and the old machine profitability on that. I think the 215,000 ton on these old machines, we don't go into that level. The whole business case around KM7 and this SEK 1 billion EBITDA incremental, we talked about it. It is coming from three building blocks. That's no secret. The vast majority of that will be to get volume up to 550,000 ton. A very significant building block is also that we operate a board site, Gävle, Frövi, and Gruvön as a much better driven, you can say, coordination. Meaning that we drive the products and segments in the machines they're optimized for. That will and should give us a good scale and even more efficiencies across. The last piece is fixed cost efficiency in Gruvön. The status, I think, when we look at it right now, is that we're doing well and progressing super well on the volume plan. We're also doing now very good progress this first half on this board site efficiencies and how we now plan and drive Frövi and Gävle and Gruvön, much more planned and coordinated. Again, get the best out of the machines. Fixed cost efficiencies in Gruvön, that we still have something to do. That's still on the priority list for the coming years. That was just some comments on reminding on how the business case has been put together. I think on the pricing piece, I think my answers on this would be that there has been several price announcements happening also during the Q2. You would expect to get, you can say, a full quarter impact when we come into Q3 in the second half. If you do it simple, you can say that out of the 3.5 percentage point we reported now in Q2, and you take out about half of that, which is the pulp and liquid packaging, you would land around 1.7, 1.8 pricing impact for the other segment. You probably would expect something similar on top of that for Q3 and going into Q4. That will mainly be a better impact, a stronger impact from cartonboard and some of the paper grades, which for the time being has not contributed too much during Q2. I think for the raw material cost, I think the bigger question mark still for us is around chemicals. There is a certain time lag on some of our contracts and caustic soda, for instance. We know already will go up with some 10s of millions per quarter now going into second half. I think latex prices is on a high level, very volatile, tough to say. We are basically looking at it roughly stable, but maybe slightly continuation into second half. I think pulpwood has already been covered. We have seen slight increase, but at almost neutral position in first half. We don't see any big change going back into second half. Electricity, I think we look with very solid hedging positions that it should be mainly flat for the next quarters. I think that hopefully should give some coordinates on how we look at sales pricing and input cost. Good. Thank you very much, Christoph and Ivar. That is very helpful. Thank you. Our next question comes from Johannes Grunselius from Kepler Cheuvreux. Please go ahead. Yes. Good morning, everyone. Johannes here. I want to come back on your comment there, Christoph, about more supply beyond 2024. Is the message that you are looking more into sort of de- bottlenecking investments, perhaps on brownfield, or you're thinking about any sort of major investments here coming beyond 2024 in the planning? That's my first question. Do you have another following question? Just give them all then it's much easier for us to understand where-. Yeah how to structure. Yeah. That is also on the pricing side, because it is quite obvious that you did not get so much or almost no price uplift on paper board, carton board. Could you maybe touch on those prices and also how you see liquid packaging board? If you could give us any idea if there could be any tailwind from prices for liquid packaging board in the coming quarters. Yeah. I think that is my questions. Yeah. Supply 2024. I think it's a bit too premature to answer that. What we are doing right now is we basically looked at all our markets. It's not surprisingly to see that actually in containerboard and cartonboard, with fresh fibers, you have huge opportunities in the market. As I mentioned already before, coming into BillerudKorsnäs, my view was, "Oh, we should really focus and have a look. We're doing so many activity, but what can we do in our core business?" Actually we came to the realization that there are massive opportunities in our core. My sense is we are pretty confident that cartonboard and containerboard and liquid packaging board is on our agenda. We are looking at Europe, which is strong. The U.S. is probably even stronger and some of the materials we are making have a strong demand and a little bit undersupplied in those markets. Now the key question for us will be, okay, how will we be able to supply that market from 2025 onwards? If all goes to plan, we will be pretty full. I think bottlenecking is already in the plan until 2024. You have probably seen our productivity is slightly behind that of our competitors in certain aspects. We are working very hard to improving on that front. That will be done with a SEK 1.3 billion CapEx as we go forward. We need to think, are there any significant brownfield investment we could do in order to get better supply? That has to do not just with the CapEx, but also with the wood supply. As you know, Sweden and wood supply, that is a little bit more constrained. We need to think about how we manage that. We are also looking at opportunities. Is it worthwhile to have some supply in other geographies or a mill in other geographies closer to some other markets? That answer I cannot give you today. We are in the middle of working through that equation. We will have, in I think September, October, probably some very good discussion with our board. Hope to communicate a little bit more on this matter then and later in the year for Capital Markets Day that we talked about already in quarter one. That is a bit of supply discussion beyond 2024. Ivar, why don't you go back on pricing if there's anything more to say. Yeah. No, I can do that. Good morning, Johannes. It's a bit of repetition, but I can look at this again. As I mentioned, out of the 3.5% pricing impact we saw now in Q2, roughly half of that is coming from pulp. If you just follow the same logic then going into the next quarters, we are very careful. We don't really expect to see much happening more on pulp. I think the levels are pretty high already. I think you get the same reports as we do in terms of what's happening on the market on that front. I think the pieces on cartonboard and paper grades. Yes, we had some announcements happening already during Q2. So a small impact that more will hit us as a full quarter impact in Q3. We also had some new pricing announcement or valid as of 1st of July. You can just say that if you are to expect, excluding pulp, something similar in Q3 and Q4 as we had for Q2, you would be looking at 1.7, 1.8 on the total portfolio. That means that on average, we do see somewhere between 3-4 percentage points of price increase for carton board and for the different paper grades as we have mentioned. I think liquid packaging, they live in many ways, you can say, the contract life. They are longer -term and there's a different mechanic based on that. They are not in a short-term cycle impacted as we will typically see on some of the other segments. Okay. Thank you. Very helpful. Just a third question, that's the CapEx. You're making a small adjustment. Should we expect this less SEK 200 million to be invested in 2022? Is it sort of a less CapEx for the company? How should we see that? It's a very good point. Let me just clarify this. The overall Frövi project of SEK 2.6 billion, that's unchanged. It's just the phasing. Okay. SEK 200 million less expected now for 2021. You can roughly say you can expect SEK 100 million more for 2022 and 2023 versus what has been previously communicated. Right. Okay. Thank you. Thank you. Our next question comes from Cole Hathorn from Jefferies. Please go ahead. Your line is now open. Morning. Thank you for taking my question. I just wanted to follow -up on the comments you made at the end around your longer -term strategic direction. Could you just give a little bit of color? Is this a major rethink? As in starting to think about potentially disposing of some of the units like your solutions business or even something more material like your packaging paper division? Is this just kind of setting out your longer -term strategic targets, et cetera? Is the first question. The second question on the packaging paper division. I'm just hoping you can give a little bit more color by end market. Where are you seeing the demand pull in packaging paper? What is pulling the improved demand in kind of brown sack paper, white sack paper, and then your specialty kraft grades? The final question around the CapEx into 2024. I do think it's always good to be thinking ahead to grow the business, but return on capital employed was impacted by the Gruvön mill due to overruns there. How do you think about return on capital when you're allocating new CapEx to growth projects? Thank you. Okay. Thank you. Look, as you know, I joined BillerudKorsnäs only in November, and I, with the team, decided, let's make sure that we continue on the current list of priorities, which were health and safety, which was Gruvön, which was stable production and the cost saving program. We have done that, and you see the result in quarter one and quarter two. That's clearly not a strategy in itself. Okay? What we are actually doing is now to work a little bit fundamentally of saying, "Hey, what is the kind of growth rate we want to achieve? What's the kind of profitability level we want to achieve? What is the kind of capital structure we want to have?" Because you alluded to the KM7, and how do we look at that? My sense is, on one hand, yes, we need to go back to a healthier return on capital employed. On the other hand, Gruvön is what it is. Therefore, I will not limit the strategic option to some consideration because in the past, things happened which were a bit unfortunate. I think what we're doing is the fundamental review. We will discuss that with the board, and at this stage, I cannot give you much more color than that, because there's so many options we could pursue. I think by the end of this year, we should have a very clear idea where the train is going. Do you want to take the next one, Ivar? I can do that. Hey, good morning, Cole. I think on paper in general, I think the answer is actually pretty simple, since if you look at most of the channels where the products in kraft paper and sack is landing, we just basically see a very shift of optimism and a much more activity-based pull. If you go into industry and you look at construction or you look at automotive, certainly the trend is going in the right direction. E-commerce for us is still a growing channel, and it's certainly been booming. Retail in general is also really picking up now during first half. Even food service, which was in many ways, you can say the last channel that started to turn from somehow neutral or soft into growth. We've really seen also that now in second quarter that it's gaining momentum. Yeah, basically demand pull is back to a very different level than what we saw, yeah, only a few quarters ago. Listen, I think on the last point, it's a good one around our return on capital employed. We are obviously not very happy with the performance we see at the moment with 4%. It's far away from the target that's currently been set. No doubt that with the overrun, this pull more weight than we expected. I can only just say that, Cole, we will be reviewing that as well and clearly have a very clear lens into future CapEx expects and approvals that it should deliver, well, a different level than versus what we've seen in the last couple of years. Great. Thanks very much for the answers. Thank you. Our next question comes from Linus Larsson from SEB. Please go ahead. Your line is now open. Yes, thank you very much and a good day to everyone. I'd like to start on the wood supply side, and it sounds reassuring, at least for the short-term outlook that wood costs are expected to be stable. You also say, and you have been saying on a couple of occasions, that you are looking into the long-term strategy and to safeguard competitive sourcing. Could you possibly expand a bit on that? What potential changes are you looking into that could have a material impact on your currently quite exposed situation in the wood cost aspect? Do you have any more questions, or should I go for this? Yes, I do. Actually, I can continue as a follow-up on this very question and maybe tying into a previous question in terms of capacity growth beyond 2024. My question here relating to my first question is whether you are also looking into that question in relation to my first question, i.e., would you consider teaming up with someone in a potential capacity investment situation to safeguard the crucial raw material supply? Yeah, I agree. This is fully related. Yes, when it comes to the long -term, any capacity expansions condition has to basically be very clear in view of wood supply. We're looking for capacity expansion, which will allow us to have a stable wood supply to competitive pricing. That clearly opens up the world to some extent but also makes the choices quite difficult because there are not too many areas in the world where you have competitive wood supply, like in Scandinavia. I think in the short -term, it's more an issue of our behavior and the behavior of our competitors and suppliers. I think that clearly we see in the North, we've seen in the future probably some increases in wood price because of the pulp mill, which is building in Finland. You have also seen some expansion plans from Stora Enso. You have also heard about some closures from Stora Enso. These are the big moves, which will have a medium-term impact on the supply availability of pulpwood. You have a long-term trend, which is clearly the policy Fit for 55 of the European Union, where in particular the forestry management is mentioned. Clearly, I think many of the industry were not particularly happy about the ideas which were voiced there. I think at the end of the day, we are all sourcing from the same basket. Even if we had a forest, our wood prices would also go up because we wouldn't make the same amount of money if we were to sell to someone else. I think it's from that perspective with our competitors, it's all a zero-sum game. At the end, packaging material will evolve also with wood sourcing, well, with wood prices, per se. My sentence here, it's a strategically very important question. Like most things in life, on the short -term, it's about our good relationship with our supplier, our ability to manage prices, our ability to develop new sources of wood. In the long- term, it's about placing our mills strategically in areas, where overall the wood supply is in good shape. Would we partner with people? Maybe, yes. Yes, I would never exclude it. Do we do a negotiation on these type of partnerships? Well, I cannot really comment on that. I think, when it happens, it happens. My perspective is on the supply side, yes, you can always investigate partnerships, and if there's a win-win, great. I mean, you have seen the case of Metsä Board, which was done in Husum. Good. I think that's about it, I think. Thank you. Thank you for your questions. Yeah, thank you. That's very helpful. Thank you very much. Just a quick one, you said the FibreForm had a good quarter. As an update, could you provide any more color on FibreForm? It's a very interesting product. It has some great features, but how big is it really? Is there any way to quantify what the size of that business has become? Look, FibreForm is a great innovation and it's a great product, but I think in comparison with our total business is so marginal at this stage that I cannot really comment on that. It's small and it's growing fast. Okay? It will take a significant amount of time and a change of brand owners to use these type of products with scale. I think I'm very happy about this innovation and the margin that these type of products are delivering. Great. Thank you very much. Thank you. Our next question comes from Martin Melbye from ABG. Please go ahead, your line is now open. Yes. I think my questions on pricing have been answered by now. One question remains on KM7. Could you make it simple and say how much remains of the EBIT that is supposed to come from this project? I think it was SEK 600 million. How much have you actually realized as per Q2? Yeah. Martin, as Christoph already mentioned at the beginning, we're moving away a bit from, in particular, commenting particular machines. I, of course, understand the interest given this is a big one. Maybe I can just go back to some of the points I also answered to Robin around the business case that the vast majority building block of this famous SEK 1 billion is coming from volume going to SEK 550 million, versus then the starting point of the old machines of SEK 215 million. Christoph did mention that this year, we are expecting to land somewhere between SEK 350 million, SEK 370 million, fully being ramped up in 2024. That should give at least a big indication. We are making good progress then on the second building block, which is driving the Frövi and the Gävle and the Gruvön as a much tighter organized unit. The last one, which we still have to be, you can say completed or done, is to further get efficiencies on the fixed cost out of Gruvön. That's probably as far as I'm willing to go on that question. Okay, thank you. I'll ask it again next quarter. Thank you. Thank you. Thank you. Our next question comes from Christian Kopfer from Nordea. Please go ahead, your line is now open. Thanks, Operator. Good morning. Yeah, just a two little bit more longer -term question from my side. First, it's about a follow-up, perhaps then on the product launches earlier here. If you look at them as an aggregate, you typically come up with a lot of innovative and new products. If you look at it from an aggregate level, will it still take a lot of time until you see a material impact from those new products? Do you think you will see a gradual impact during the next four to eight quarters or so? That's the first question. The second question is also a follow-up on the wood supply in the more longer -term. If you could comment a little bit on what we hear from the European Union on perhaps a risk that less wood will come out of the European forests and what's your view on that versus an increased risk of competition from mills outside of Europe that doesn't have this situation? Thanks. Okay, let me answer on innovation first. Clearly we're not in a business like a FMCG company where you have very clear after a couple of months, you know exactly where the rabbit is running. I think all the innovations we are doing tend to be quite evolutionary. They create lower weights, more strength, better printability, better pliability, all these type of aspects, or better barriers for that matter. As we move on, people tend, at least those who are working in the quality areas, tend to substitute the previous grade with a new grade. The new grades, we price them very competitively, so we get better margins as well. This is the kind of day to day. What we have done this quarter, so quarter two, is we have actually looked in our total innovation portfolio. We talked a little bit about that, I think, when I had my, it was a quarter four review. A lot of you asked me what did I find when I entered BillerudKorsnäs and what my perspective was. I must say now, six months along the line, particularly with the work we did in quarter two, we have basically streamlined our approach to innovation in the sense that I wanted to see a portfolio. I want to understand what the business case of the individual projects are. I want to understand where they are. I want to understand when will they be launched. This work has now been done, and I think now we are in a much better situation of being able to prioritize resources on specific projects, do projects more in sequence rather than in parallel. I'm pretty confident that we can accelerate our innovation rate going forward. When it comes to the financial returns of this innovation, clearly that is one of the key aspects. We need to understand that any innovation has to have a very significantly higher return on capital of that what we have. That's clearly a must. Then the second part is all the innovation we are doing has to have a better margin than what we have. That is basically the game we are playing on the innovation side. Second question was on the wood- Wood. ... wood l onger -term. Yeah, EU. Look, I must say, as probably most of my colleagues in the industry, we are a little bit confused by the European policy on woods or on forestry per se, because you clearly see a competing interest even within, or contradictory policy within the EU. The first one is we want a circular economy. We want to have recycled products. We want to basically change, move away from plastic and these type of materials, and become much more carbon neutral. On the other side, you want to have biodiversity, and you want to have a carbon sink with the forest, and you want to stop people basically taking down trees, and et cetera. These are two very difficult policies to combine. On top of that, I think on the European proposal and policy, it was to make the overall forestry strategy more a European affair rather than a national affair. As you know, countries across Europe manage their forest in very different way. I think Sweden is probably, Sweden, Finland, and to some extent Norway, are world champion in managing their forestry in an excellent way. We have so many other organization like FSC, et cetera, who set very good sustainable forestry rules and whatever you have. I think we are a little bit skeptical at this stage on, in particular, on the forestry proposal. We have to recognize that clearly some of these aspects are also true, and I think biodiversity is important, et cetera. It's a matter how you handle it. Our preference would be that this would be continued to be handled on a national level, because countries are quite different and the forestry tradition are very different. The second part is probably that in the long -term, we're talking now over the next 10 years, I can see some increases in raw material prices on wood just by the fact that you limit the amount of wood you can explore. Especially in Scandinavia, where a lot of forestry, if you like, compared to other countries, is very active and very developed. That's a bit my view today. We're working clearly with the Swedish Forest Industries Federation, and our different trade association to basically have a input into the debate. We will adapt ourself to whatever comes out of this debate, and I think the timeline is 2022, 2023. It will happen rapidly and it will have, I think, an impact on the overall industry. Yep. Thank you very much. Thank you. The final question comes from Mikael Doep el from UBS. Thank you. Just a couple of questions still from my side. On the sack and kraft paper markets, could you give any comments on the growth rates in the markets in Q2 on a year-over-year basis across the key products there? Perhaps if there's something you could comment what's happening on the supply side in terms of disruptions or swinging mills. Also, if you can say anything about the magnitude of price increases that you have achieved in this business area and what you expect to achieve ahead. My second question would be on the solutions business. Performance was perhaps a bit disappointing in the quarter with revenues up clearly on a year-over-year basis, the earnings still down. Perhaps if you could talk a bit about what's happening there, and what you expect for the second half of the year. Finally, on the cash flow, we did see a good working capital inflow in Q2. I think you had an outflow in Q1, how should we think about the full year from a working capital perspective? Thank you. Okay. Ivar, I will hand that to you. Yeah. No, thank you, Christoph. Good morning. I think on the sack and kraft, let me just see if I got my notes right here. I think the market growth also some lag in terms of some of the reports. We don't have fully updated yet, from the first half performance, but I can definitely confirm that second quarter underlying demand is higher than what we've seen. I think we would expect to probably to see for the first half, somewhere between 2% - 3% growth. This is also a question that we've been asking our sales guys, if the performance that we see now in Q2 is more of a inventory adjustment or actually believe that the market pull is real. The vast and overwhelming response is it's the latter. We actually do believe that in a lot of fundamentals behind the demand and the channels coming back to growth after a bit of hibernation, you can say. In the COVID-19 times is certainly maybe not fully over, but it's definitely taking a very big step back into the right direction. On the supply side, there's nothing major. Segezha probably have been a little bit less active in the first half of this year versus maybe what we saw last year, but I think that's more a temporary item that we don't expect to go forward. On the pricing, I think I have mentioned, I don't think I have too much more to add more than it is true that some of our pricing announcements, within paper, we didn't have a lot of impact of that in Q2, was relatively marginal. We will certainly expect to get more of that now then into Q3 with, again, full quarter impact and some new items coming in the 3rd of July. I think my range of 3%-4% is still pretty good as a kind of a bit of a proxy of how we expect the different segments to deliver. I think on solutions, I think actually one of my favorite tables, I'm just going to check that that's also picked up. It's based on page 23 in the report because it's one of the last tables on that page, and it is without the hedging or the currency hedging, et cetera, because that always is a bit of a moving item based on revaluation of receivables and our hedging position. When you take that out and you look at the solutions are there a little bit more cleansed, you can say it's slightly better than what we had in Q1, which is basically the Managed Packaging business doing a bit of a better. That level now of what you see is somehow what we expect also to go into second half. The drivers you can say from last year when you say it's -SEK 44 million, is actually that the Q2 last year was unusual low, you can say, or better than maybe this year being strange. Some of the bigger building blocks to explain that gap has been around phasing of some of the variable pay provisions that were due, and we also have some emission right timing, which explain a little bit that number. I think your last point around the cash flow, I think you're absolutely right. Maybe I can just quickly remind people on this because it's not an unimportant point that we had a very good cash flow delivery first half. When you think about what the main drivers so far in 2021 versus what we saw last year on the working capital is actually, well, most and foremost related to some of the items we had sitting in last year's result. For some of you remember that we had this energy collateral balance which now will be taken out and eliminated out when we came to the end of 2020. That explains a good SEK 260 million. There's also some receivable balance of some incoming tax payments last year, a bit more than SEK 200 million sitting in that explains also part of the balance. The delta to come up to what we've delivered as improvement this year, it's mainly inventory related. Probably inventory first half last year was a bit on the high side. I can certainly confirm that inventory now going into end of Q2 this year has been on a very low level, very much linked to market and demand being very strong across. With some of the challenges, for instance, we have in Gävle, inventory levels are very low. That means if you think about the second half, operating result is one thing, but we do not expect to see the same pickup of working capital in particular that we have seen in the first half. Actually, I think we will even get a small hurt on inventory because inventory would, if everything else goes well, come a little bit back into a more normal level, which is more sustainable level for us to keep up a good service level rate. That means we would expect to see working capital in the area of 9-ish% of net sales. I think that will be my estimate. Hopefully, that answers some of your questions. It certainly does. Thank you very much. Thank you. We do have a follow-up question with Oskar Lindström from Danske Bank. Please go ahead. Your line is now open. Yes. Thank you. Just two questions here. The first one is on the low inventory levels at the end of Q2. For your part, should we expect this to limit your delivered volumes in H2? That's my first question. The second one is on the insurance compensation for the Gävle mill incident. I understood that the cost for that came in at the higher end of the range. I believe it was SEK 75 million in Q2. When and how much of that can we expect to be compensated through insurance? Those were my two questions. Okay, Oskar, last question from you in this meeting. That's good. Okay. First one is inventory. Look, if production goes well, there's no issue on delivery in the second quarter and in the second half, sorry. Actually, one of the reason why we are so low inventory now has to do with the Gävle mill incident, because then basically all the stocks in all areas went down. Now our challenge is that while we are fully booked, we need to reconstruct some of the stock levels, either because they're security stocks or customers, or generally speaking, in order to keep our service level high. If production works as planned, we will have no issue, and that's clearly our key [audio distortion] going forward. Ivar, do you want to take the Gävle? Yes, I can do that. Hi, good morning, Oskar. Listen, just a quick recap on the case. What happened in terms of the extra cost it forced upon us? Clearly, the volume loss was the biggest item, with a lot of days on either completely reduced speed or pretty much no production at all. There's a certain repair cost as well that needed to be done to sort the basically asset back into shape. We also had a third part because this digester certainly influenced the internal pulp supply in the site, and we were forced then to go out on the market and buy a bit more external pulp than we normally would do. All of this combined kind of adds up. In this estimate now of SEK 75 million, it is a certain expectation on the insurance compensation for that, and we have a very good dialogue with our insurance providers, and we don't expect any big movements now from the amounts that we have already communicated. Sorry, the timing? When should we hope for this money? Already now in the Q2, it sits a provision or an expectation for the insurance compensation based on the dialogue we have with them. We don't expect another or big future movements based on the number we've already talked about. Clear. Thank you. All right. I would like to thank you all for your attention and your participation to our quarter two call. I would like to wish you all a very good summer, and I am looking forward to speak to you in our Q3 results. Thank you very much.