Good day, thank you for standing by. Welcome to the Bufab's Q1 earnings release conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Jörgen Rosengren, CEO of Bufab. Please go ahead. Thank you, operator. Good morning, everybody, welcome to this Q1 conference call for Bufab. My name is Jörgen Rosengren. I'm Bufab's CEO, and I'm joined in this conference by Marcus Söderberg, who is Bufab's CFO, and we'll be taking you through today's material and the information together. Like the operator said, towards the end, there will be an opportunity for everybody to ask a question if you have one. Throughout this conference call, we'll be referring to a material which is available on bufab.com. I'll start off with the third page of that material, and it has a beautiful title. It's called Continued Strong Growth and Significantly Improved Profitability. That is also a good summary of our first quarter in 2021. It was, to be sure, a very challenging quarter operationally. We've had lots of work to do with, generally speaking, quite strained supply chain situation, which exists today globally, and we're struggling also with increasing costs for components, and increasing costs for freight. Nevertheless, we have had the pleasure to record an all-time high result in the quarter for sales, all-time high operating profits, and all-time high earnings per share as well. There are two reasons for this. The first one is that sales is up. It's up quite dramatically, actually, as reported only 8%, which is, of course, good in itself. There are a negative currency effect of - 6% due to the strong Swedish krona, primarily. This masks a very strong underlying organic growth of 14%. It should be noted in the context, though, that the first quarter of 2020 was relatively weak. We're quite proud of this organic growth. It is driven partly by good underlying growth in all segments, actually, but also by us gaining market share also in all segments. This is a trend, of course, as our long-term investors know, that we've had for many years, but still it's very pleasant to see that even in the COVID situation, we managed to gain market share. On top of that, we've had in the quarter very low costs, as we'll be seeing in a moment. The combination of strong sales and low cost, that combination delivers up a very solid profit improvement, actually operating profit improvement of 40%, and also an improvement of the net profit by 38%. Actually, most of our subsidiaries did extremely well, but if we have to single out one or two, we would like to mention our newest acquisitions acquired in the end of 2019, both of which contributed very well. In the beginning of this quarter, we've launched a new strategy for Sustainable Leadership, which is valid until 2025. In connection with it, we also launched new financial targets for the next four or five years. As you can see in a moment, we've made a good start towards those financial targets for this quarter. Very importantly, in this quarter, we committed Bufab to the Science-Based Targets initiative. It's an initiative that's backed by the United Nations, and our commitment to it constitutes a very dramatic and ambitious improvements when it comes to sustainability in Bufab. A topic that is very near and dear to us, but also quite important for our customers, our staff, and our owners. An eventful quarter all in all. Now I would like to turn over the word to Marcus Söderberg, our CFO, who will be taking you through the financial highlights for the group. Thank you very much, Jörgen. Let's turn to the page called Financial Highlights for the Group, as Jörgen said. As you can see, and as Jörgen also already mentioned, we had a really good month when order month comes to net sales. Net sales increased with 8%, whereof 14% was actually organic, and a negative impact of currency effect of about 6%. Net sales was good, as said, but the order intake was actually even stronger. As you can see, it was 12%. Gross profit margin increased with about just more than 1%, driven mainly by purchase savings during 2020, the end of 2020, but also due to increased volumes, of course. Operating expenses came in very low, 15.5% of net sales, driven by efficiency gains, of course, also high volumes, but a good operational leverage made the operating profit increase with 40% to SEK 177 million. Not only the operating profit increased with about 40%, but also the earnings per share increased with about 38%. A good development all the way down to the bottom row, we can say. If you look at the lower left corner, we have the EBITDA bridge, and as you can see, currencies had a negative impact of about SEK 11 million. Strong volume increase had a positive impact of about SEK 55 million. Cost, price mix and other had about SEK 13 million. Acquisitions, meaning namely the revaluation of additional consideration, in connection with the acquisition of [Stevendi], had a negative impact of about SEK 6 million, leaving us with an EBITDA of SEK 177 million. If you turn page, you will see another page called Financial Development of the Group. You have two graphs, one showing our quarterly net sales growth. As you can see, we have been having growth for many quarters back in time, except for the very weak second quarter of 2020. As you can see, we have had both good organic growth and also good total growth, meaning mainly also acquired growth, so to say, well above our target of 10%. In demand, as said, good organic growth of 14%, but a total growth of about 8%. If you look at the right graph, you also here see the 12-month trend of net sales and EBITDA. As you can see, since the second quarter, or actually the third quarter of 2020, we have been taking a big leap upwards when it comes to profitability. Explanations to that is, of course, increased volumes, but also heavily increased efficiency gains and good result development from the cost-saving program that we launched back in 2019 but increased in mid-2020. Really good development when it comes to the results and the EBITDA. If you turn page to the page showing Segment North, you can see that also Segment North had a really good quarter. Total growth of about 8%, organic growth was 10%, and as you can see, also a good order intake. The gross profit margin increased significantly, mainly driven by purchasing, but also due to higher volumes, especially in the producing companies or the manufacturing companies. Also here, you see that we have decreased the operating expenses in comparison to net sales. Good cost savings and efficiency gains, meaning good operational leverage, also causing the EBITDA in absolute figures to increase with about 30%, leaving us with an operating margin of 12.2%, more than two percentage points higher than the comparable quarter. If you turn page to segment West, you can see that also Segment West had a good development net sales wise. Total growth was about 4%, heavily impacted by negative currency effect. The organic growth rate was actually 11%. Also here, good order intake at a total. Gross profit margin also increased here with about a percentage point, also due to purchase savings, but also due to high volumes, of course. Operating expenses also here, going definitely in the right direction. Significantly lower operating expenses in comparison to net sales, about 15%, meaning good operational leverage, also causing the operating profit to increase with more than 50% to SEK 35 million, leaving us with an operating margin of about 11.1%. If you turn page to segment East. East had a really good development net sales wise. Up, total growth with 14%, but the organic growth was actually more than 28%, of course, driven by a weak comparison quarter, should definitely be mentioned, especially in Asia. Gross profits increased slightly, also here purchase savings and rather high volumes. Operating expenses down, not only in percentage of net sales but also in absolute figures, leaving us with a really good development EBITDA wise, up more than 44% and an outstanding operating margin of about 18.1%. A fantastic development in segment East during the quarter. Finally, the last segment, segment U.K. North America. As you can see also, segment U.K. North America had a good development net sales wise, up about 8% in total, and the organic growth rate was actually 17%. Also here, the order intake was considerably stronger than net sales. Gross profit quite stable, slightly up. We see purchase savings also in segment U.K. North America, and of course, higher volume causing the gross profit margin to go up slightly. Operating expenses down, not only in percentage of net sales but also in absolute figures, meaning very good operational leverage also here, leaving us with an operating profit that increased with 41%, leaving us with an operating profit margin of about 14%. Considerably stronger than the comparison quarter. If we turn page to the one with the heading Strong Cash Flow Fuels Active Acquisition Strategy. If you look at the first graph on the left, you see it's actually showing our operating cash flow and cash conversion during the last quarters. As you can see, we have been having really good cash conversion, more or less during all of 2020, at least since the second quarter. Went down slightly during this quarter, mainly due to the very high growth rate that we have seen, meaning that we have tied up more money in the networking capital, at least in absolute figures, even though we are slightly more effective when it comes to networking capital compared to net sales, so to say so. Anyway, good cash conversion. This is also the explanation to the next graph. If you look at the right, as you can see, it's showing our Net debt versus EBITDA, the multiple of that. As you can see, we were up on very high level back in the end of 2019 and the beginning of 2020. Due to very good cash flow, reducing mainly net working capital together with good measures taken when it comes to cost control led us to a very good development in the net debt and EBITDA as the volumes came back during the end of 2020 and now in the beginning of 2021. We are now a significantly stronger company financially-wise than we were one year ago. Very good development, which we are very proud of. Thanks, Marcus. Lots of numbers there, but actually all of them good. That is one of the aspects of this quarterly result that we're especially proud of, is that the improvement is so broad across all of our operating segments. In fact, all the operating segments improved their sales, all improved their profit, and all improved their margin. On the next page, which is entitled EBITA Bridge, you can see how the results this year, this first quarter was built up. If we talk with last year's EBITA in the first quarter, which was SEK 126 million, the result of which we were quite proud of at the time. We've had, unfortunately, negative currency effect, again, tied to the strong Swedish SEK of about SEK 11 million negative. The strong volume adds SEK 55 million to the profit and very good cost control. Despite the strong volume, we are still SEK 13 million better on costs, and that totals SEK 168, so a strong positive. There is a small negative this quarter from acquisitions, but that is actually also good news because it pertains to a revaluation of the earn-out accruals that we have for some of our acquisitions. We're making this revaluation upwards, which then results in negative result effect because those acquisitions have developed much stronger than we thought before. In total, SEK 126 minus SEK 11 plus SEK 55 plus SEK 13 minus SEK 6 equals SEK 177, which is again then our best ever quarterly result in Bufab by a fat margin. The second table in this chart or on this page shows quite clearly also that the improvement was spread evenly across our segments. Segment North, our largest segment, contributed 16% to profit improvement, whereas Segment West, Segment East, and Segment UK/North America all contributed slightly above SEK 10 million, resulting then again in about a SEK 50 million profit improvement. On the next page, we turn to something that I know investors are very interested in, and that's our acquisition strategy. We have made nine acquisitions since we were noted on Nasdaq Stockholm in 2014. We have over the years that we've been in business, made about 60, 50 then, acquisitions. In the last few years then we've added about 500 employees and about SEK 2 billion of sales. A year ago, there was not so much demand from investors for us to make new investments in acquisitions because at the time our net debt to EBITDA was quite large, and there was uncertainty related to COVID. Now we feel we have a very good situation where it's quite possible for us to make acquisitions with a much stronger balance sheet and also as the effect of vaccines start to kick in, easier to go out and meet acquisition candidates. We like to actually meet and get to know the acquisition candidates that we have in our pipeline quite well before making acquisitions, because part of our acquisition strategy is to only acquire very good companies. We've been actually strengthened in that by the fact that the last two acquisitions we made have been so super good. We're a bit picky, but now at least we have the wherewithal to make more acquisitions, and we do also have acquisitions in our pipeline. On the next page called Our New Plan is a small picture of our new growth strategy called Sustainable Leadership, which is valid until 2025, which we launched earlier this quarter. For the interested reader, you can go to our investors website, and there you can partake of the material which we presented on our capital markets day in March this year. There you will learn more about the plans that we have to grow, to improve our business, to keep investing in our business, to generate a sustainable advantage relative to our competitors so we can continue to take market share, and also to continue with our acquisition strategy. In connection with this new strategy, we also launched new financial targets, and they are more ambitious than the ones we had before. We aim now to grow 10% a year every year until 2025, although it can vary a bit up and down. We have raised the ambition level with regard to profitability and said that we will reach a sustainable 12% EBITDA margin by 2023 latest. We will continue to show to our investors a strong dividend growth by continuing to give out profits in the range of 30%-60% of earnings per share. I mentioned sustainability, and that's also one of the keywords of our new strategy. On the next page, you can see some of the important first steps that we have taken on our long journey because this is a long-term challenge that not only we, but every company on the planet faces as well. It's nevertheless good to see how in 2020 we delivered good sustainability results also, not only very good financial results. You can see on this page that our total emissions in Scope 1 and 2 of carbon dioxide equivalents decreased by 30% last year. The emissions per sales, per SEK sales also decreased by about 30%. We increased the portion of our sourced energy, sourced electricity, which comes from renewable sources from 69% to 74%, so by five percentage points. We also paid more tax, that maybe is not something that is raised up so often in this context, it is important. It's an important part of our sustainability strategy to contribute to the societies where we're active, and part of that is, of course, paying tax. Good profits mean a possibility to pay tax and to contribute therefore to society. Our tax contributions to society increased in fact by 26% last year, which is more or less also the profit increase we had. To summarize the situation we're in, and the first quarter, we had operationally quite challenging first quarter, but we also recorded all-time high sales and profits, and also, in fact, a very, very strong margin. Our balance sheet is now much stronger, and the demand improvement that underpins this was solid across all segments, and also coupled with increased market share in all segments. The profit is also further driven by dramatically improved efficiency. On the other hand, we do see very strained supply chains, and we do see also increasing costs for components and for freight. That also influences the outlook because we see that we have to battle with that also going forward, and that means that we do have to increase the prices to our customers. On the other hand, the outlook for demand remains favorable as we see it now at least, and there is also very, very low inventory levels throughout the industry, which of course is also good for demand. Most important though, we're in a much stronger position today than we were one year ago, and even more stronger than we were two years ago and so on. In particular, we would like to highlight that we are a more efficient company now, we're a more flexible company now, and we have stronger customer relations now than we did one year ago, thanks to the long-term investments that we've made in our organization, in our systems, in digitization, and in acquisitions also. For this year, the priorities are to continue to ensure, in a very tough situation, high-quality deliveries to our customers to keep them satisfied with us. We need to start recruiting and strengthening the organization to face this higher demand picture that we're seeing now, and also to be able to continue to benefit from the sales opportunities we see. We do need to move the cost increases that are now prevalent in our industry onwards to the customers, and have them help pay for that. That concludes our prepared comments. Operator, if you can hear me, then now is a good time to open up for questions from the audience here. Of course. Thank you. As a reminder, to ask a question, you will need to press star and one on your telephone and wait for your name to be announced. To withdraw your question, please press the pound or hash key. Once again, that is star and one if you wish to ask a question. Your first question comes from Robert Redin. Please go ahead, your line is open. Hi, Rob Redin from Carnegie. A couple of questions if I may. One is on that organic growth. You're right in the report that the organic growth was particularly strong in March, as comparisons then were impacted by COVID maybe. Could you say something about the daily or weekly sales development? Did it improve in March, or was this just that the comparisons were easier in March? Was there an improving trend throughout the quarter in demand or is maybe the question? It was a slightly improving trend in the quarter, but not extremely noticeable. We had a solid sales development throughout the quarter, I guess you could say. March was influenced partially because it was one working day more. Also, as you say, because the comparison was weaker in March because we started to see last year and towards the tail end of March, especially the last week, seven days, something like that, the first effects of the COVID pandemic, especially in Asia, which then influenced our operations in China then in particular. We saw a solid trend, but March was especially good due to those effects. What is, however, encouraging, I think, is also the order intake, which continued strong throughout the quarter, and maybe even accelerated a bit. I have to say we're unusually bullish on the demand trend. Sounds great. Yeah, maybe ties this into this, the cost inflation, the raw materials, and the freight costs and so on moving higher, so you have to raise prices. Is there any contribution from prices in Q1, or is the 14% just volume? On prices, when do you expect to see a contribution to organic growth from price hikes? In the second half of the year or? Yeah. Let me just add something that I should have mentioned, with regard to your earlier question, Robert. Good morning, by the way. What is also encouraging for demand, I think is the low inventory levels we see throughout the supply chain. It's quite clear that most of our customers have no inventory at all of any components, and we have no inventory, or we have at least a much lower inventory than we usually do, and our suppliers have no inventory. Apart from some ships being stuck in the Suez Canal, there is also no inventory in the freight chain. That, of course, underpins our belief in the strong demand going forward. With regard to price, I think Marcus, we can say that there were not any contributions from prices. Is that not correct in the first quarter to growth? Yeah, I would say so, definitely. We did improve, of course, our gross margin, as you can see in the quarter, partly because of leverage. Also partly because of the cost savings that we did last year, which now are filtering through our P&L. The challenge now is to meet the cost increases, which we see now, with price increases in the same timing during the rest of the year. Right. You wrote something about the large price increases, but is there any indication on what that range could be in terms of numbers? Yeah. There's plenty of indication on that. That's a very hot discussion that we're having now with our customers, exactly what is a good level there. I'm not going to go out here and give you a percentage because then we're negotiating with ourselves. It's quite clear that we're going to have to ask for and get significant price increases from each of our customers. All right, perfect. The final question on M&A, or maybe in the management is net debt/EBITDA. I saw on the graph that it's the lowest it's been since Q1, 2015, the relationship. I guess, how do you see the M&A pipeline, is it improving? Or is the market pick up so strong that valuations are pushed higher? How do you see the M&A pipeline developing? I guess we can answer what we usually do answer on that is, we don't make such a high number of small acquisitions as some of our peers in the industry. Therefore, it's hard to make statistics out of our M&A pipeline. We have, we think a good M&A pipeline, it's hard for us to tell whether it's influenced by this or that short-term trend. Most of the acquisitions we made, we have made in the past and/or intend to make in the future are preceded by long discussions with the previous owners, with the management teams, and have more to do with that than with the short-term trends. I really don't know the answer to your question, is my answer. All right. We can certainly afford it. When we had that situation in 2015, that's when we restored our acquisition strategy. Since then we've made 10 acquisitions. Of course, we intend to make acquisitions also going forward. All right, super. Those were my questions. Sounds super. Thank you so much. Thanks, Robert. Thank you. We have no further questions at this time. Once again, as a reminder, if you wish to ask a question, please press star and one on your telephone keypad. There still seem to be no further questions. I would now like to hand you back to Mr. Rosengren. Please go ahead, sir. Thank you. I would like to thank everybody who attended for your continued interest in Bufab and wish you a very pleasant day. Thank you and goodbye. This concludes today's conference call. Thank you for participating. You may now disconnect. Speakers, please stand by.