Welcome to the Cary Group Q1 report 2022. For the first part of this call, all participants will be in a listen-only mode, and afterwards there will be a question and answer session. Today, I'm pleased to present CEO Anders Jensen and CFO Joakim Rasiwala. Speakers, please begin. Good morning, everyone, and welcome to Cary Group's first quarter results presentation. My name is Helene Gustafsson, Head of Investor Relations and Corporate Communication. With me today is our CEO, Anders Jensen, and CFO, Joakim Rasiwala, will present results for the first quarter. There will be a Q&A session after the presentation. With that said, I leave the word over to Anders to present the results. Thank you, Helene. Before we enter the results presentation, I just want to have a quick summary of who we are and what we do. We are one of Europe's leading vehicle glass repair and replacement company with presence in nine countries and over 2,500 employees. We are proud to say that we have the industry's highest Net Promoter Score and over 1,400 workshops servicing our clients every day. We have grown over 30% per year since 2017, and with our latest acquisitions, we now have a turnover of almost SEK 4 billion. I would like you to flip over to page number three to go through the quarter. The first quarter could be summarized as one with a high growth rate and demand. Despite negative effect from COVID in the beginning of the quarter, we achieved strong total and organic sales, which cemented the strong customer offering we have, and also gave us a good start of the high season, which started in April. The high sales led to an increased adjusted EBITDA of 20% in the first quarter. We continue to focus on profitability improvements with initiatives within operational excellence, pricing and integration of acquired companies. We're very happy to have continued our acquisition strategy and consolidation of a fragmented European market. In the first quarter, we consolidated the Norwegian company, MPS Bilskade, as well as the German company, Zentrale Autoglas. Our acquisition in Portugal, ExpressGlass, closed in the first of April, which means that it will be consolidated from the second quarter. We are also happy to have communicated the acquisition of Pugh company in the U.K., which was closed the 4th May. I'd like you to turn to slide number four. The market in which we operate is driven by strong structural drivers. We have the yearly increases in glass prices. We have the average cost for glass replacement. We have the mix effect in car fleet. We have the calibration and the distance driven. The first quarter was no exception in relying on these factors. Despite the COVID impact that we had in the beginning of the first quarter, we organically grew 10% in Sweden and Denmark, which is countries less impacted by the COVID, and 2% organically in the U.K. and Norway, where we were more impacted by COVID. Especially in the two first months. I mean, we had really, really high sick leaves in January and February in Norway and the U.K.. But after the ease of the restrictions in February, we can see that we are now back on full track again in U.K.. Demand is coming back and we have the staff needed to provide the service. Flipping to page number five, we will discuss a little bit about our sales development. As mentioned in the beginning of the presentation, we're happy that sales developed strongly despite a COVID outbreak in the beginning of the first quarter. In total, sales increased by 75%. M&A growth accounted for 55%, and organic growth was 7%. The strong development of organic growth of 7% was mainly driven by Sweden. The newly acquired and consolidated companies, MPS in Norway, Ralarsa in Spain, and Zentrale Autoglas in Germany, all noted double-digit organic sales number. Turning to slide six. Adjusted EBITDA amounted to 88 million SEK in the first quarter. The adjusted EBITDA margin amounted to 11.6% and was just as expected, impacted by the acquisitions that we made last year. The margin was negatively impacted by higher purchasing costs for glass and personnel and fuel costs in the U.K.. The Norwegian business continued to have a low profitability. We continue to make investments in central functions necessary for our European expansion, which also affected us. Some negative effects from COVID-19, which impacted the business in the beginning of the quarter. When it comes to higher purchasing costs, this was adjusted for in the Nordic region, while price adjustments in rest of Europe had not yet fully been implemented, as seen in the margins in the U.K.. We are now working on pushing through increased prices to the customers. We have done it in the Nordic countries, and we have done it in a few countries in rest of Europe, but we are pushing it and we have some delays on some market. We have several price increases going through the 1st May. Historically, we have always done several acquisitions and always managed to uplift margin once the companies are consolidated. Together with increased margin for acquired companies, we focus on increasing profitability through achieving economies of scale through recent acquisitions and operational efficiency programs in the U.K. and Norway. More about this later. Let's turn to slide number eight. We are on an exciting journey in establishing a leading vehicle glass repair and replacement company with the European presence. The strategy of doing so is an active M&A agenda where we seek to consolidate a fragmented market. The M&A strategy rests on three pillars. We have the platform acquisitions, we have the add-on acquisitions, and we have the smaller moms and pops acquisitions. All acquisitions help to improve our footprint and to reach additional scale and thereby uplift in growth and profitability. As mentioned, the first quarter was no exception from an active acquisition agenda. We closed the acquisition of Zentrale Autoglas and MPS and signed the acquisition of Pugh. In total, acquisitions accounted for SEK 253 million of sales in the quarter. Turning to slide number nine to give you some background about the Pugh acquisition. We are very happy to announce the acquisition of Pugh from the brothers Charles and Ed in March. Charles Pugh is a leading vehicle glass repair and replacement company with a strong wholesale business. Sales for the company amounted to GBP 56 million within an EBITDA margin of 10%. What are the key rationale for acquiring this business? Well, first of all, it strengthens our position in the U.K., and further it enables increased profitability through synergies of almost GBP 2 million with our existing U.K. business. It creates scale benefits going forward as our operational excellence framework is rolled out on a much larger U.K. platform. The acquisition price corresponds to a multiple of 9x EBITDA and 7.2x including synergies. Turning to slide number 11 and leaving the word to Joakim, who will dig deeper into the results of our two business segments. Thank you, Anders. I will start with a review of all the two segments and then also provide an update on our operational excellence projects. Starting with the business segment Nordics, we increased sales by 36% in the quarter to SEK 421 million. Organic growth was 9% and driven primarily by strong underlying demand in Sweden. The business in Norway, as Anders said, was negatively affected by COVID-19 lockdowns in the beginning of the quarter. Adjusted EBITDA increased by 14% and mainly as a result of a strong sales increase. The adjusted EBITDA margin was 20.1% and as expected, there was some dilution to the margin from the acquisitions we have made over the first 12 months. Increased purchasing costs for glass was compensated for in the quarter. As stated previously, our agreement in the Nordic market allows us to allocate price increases over to customers. We did also see some other cost increases on operational costs for example, electricity and fuel, which was not compensated for in the quarter. We are now looking into how these inflation-affected cost items can be adjusted for going forward. Moving to slide number 12 and a review of business segment Rest of Europe. In the segment, sales increased by 125% and driven primarily by the acquired companies, Ralarsa in Spain, which was acquired in August last year. Zentrale Autoglas in Germany, which was consolidated from the 1st January. Organic growth was 2% in the quarter, and that relates then solely to the U.K. business, which also had some impact on sales from COVID-related lockdowns in January and a bit into February. The newly acquired companies, Zentrale Autoglas and Ralarsa, have both had strong organic growth rates. Adjusted EBITDA increased to SEK 22 million, and the adjusted EBITDA margin was 6.5%. The acquired entities contributed positively to the margins and, on the other hand, we had some negative impact in the U.K. market. The higher purchasing costs and the cost for personnel were not fully compensated for by price adjustments in the first quarter. We have a different contract structure in the U.K., compared to the Nordics, but price adjustments are being implemented, and we expect to see effects of that in the second quarter. Now moving on to slide 13. Here is a margin bridge explaining the key impacts from various elements in the first quarter. As mentioned before, our key priority now is focusing on price increases, operational leverage, and extracting synergies. Looking at the development in the first quarter, our gross margin was maintained despite the higher glass cost that we experienced. The pace of price adjustments varies between our markets, and our current focus is to continue to implement price adjustments and now with a key focus on the rest of Europe region. We are also focusing a lot on operational excellence programs in Norway and the U.K., and I will come back to that. We had a negative impact of operational leverage in the quarter, and that is mainly related to U.K. and Norway, where demand was affected by COVID lockdowns. As a key factor behind the lower margin in this quarter is, of course, dilution related to the newly acquired entities. As we have mentioned previously, when we acquire at a high pace, it is to be expected that the companies that we acquire initially have a lower margin than group before we are able to extract synergies and economies of scale. That has had an effect in this quarter. We have also expanded our corporate functions, which also diluted margin in the quarter, and that expansion is of course related to our international growth of the group. On slide 14, an update on the key operational excellence projects that we have pursued in the first quarter. We have mainly focused in on the U.K. and Norway markets. In the U.K., as you recall from our last quarterly call, we have conducted an operational excellence project with a third party consulting firm. The results of this project are now being implemented in both the Mobile Windscreens business and also now in the recently acquired Charles Pugh business. We expect that this work will result in improved processes, coordination of activities across a larger scale, and better efficiency in both operations over the next few quarters. We're also working together with the team at National Windscreens to further review customer pricing in the market. In Norway, we have focused in the first quarter on the integration of MPS Bilskade together with Cary Norway. As Anders mentioned, profitability has been weak in the Norwegian market, but we see strong synergy potential between these businesses, both in terms of the combined and strengthened customer offering to insurance companies and customers that the two businesses now can offer, but also in terms of merging support functions in the market. Now I will hand back to Anders again and slide 16 to give you the latest update on our sustainable strategy. Yes, thank you. As you know, by now, we strive to be a leader in our industry with regards to climate impact. We have therefore, as part of a strategy, formulated a high and clear goal for how to reduce our climate footprint. We're now proud to say that we have joined the Science Based Targets initiatives, based on a calculation of our group's emissions in 2020. Cary Group aims to reduce emissions by 41% by 2030. Flipping to the next slide here, 17. As said, we strive to be a leader in our industry when it comes to climate impact. The key tools for this is to have a digitalized customer journey, to have the proximity to customers, increasing repair rates, have an electrified courtesy car fleet, and recycling of repair glass. In the first quarter, we repaired over 60,000 windscreens, compared to 44,000 last year, which saves 2,700 tons of CO2 and an increase of almost 40%. We have 57 electric courtesy cars in Nordics, which is 18% of our total car fleet in Sweden and Norway. In the quarter, more than 250 customers per day used our artificial intelligence tool in the Nordic and the U.K., reducing miles traveled to and from our workshops. As already communicated, we're also happy to announce that we, from 2021 are climate neutral. Turning to the next slide, which is 19. Thank you, Anders. I will continue with a review of the financials. On slide 19, we have an overview again of our P&L for the quarter compared to the same quarter in 2021. Just highlighting a few items here. As mentioned before, our net sales grew by 65% to SEK 756 million. Our adjusted EBITDA grew to SEK 88 million, and a growth of 20%. We had items affecting comparability in the quarter of SEK 12 million, and that was mainly related to transaction costs for the acquisition in Germany. Amortization of acquisition-related intangible assets amounted to SEK 14 million, and this has an increasing effect of the acquisitions made over the last 12 months. Our adjusted EPS amounted to 0.32 SEK per share. Just to point out that the corresponding figure for last year is not comparable due to the change of capital structure in relation to the IPO. Turning to slide 20 and an overview of our balance sheet and leverage. Leverage ratio was 3.6x EBITDA at the end of March, which was an increase from 2.5x in December. This increase is of course driven by the financing of our recent acquisitions. We continue to stand on a stable financial ground. The company generates strong cash flow, and we expect leverage to gradually be reduced over the course of the year. Our net debt amounted to 1.9 billion SEK at the end of the quarter, an increase of approximately 700 million SEK from the end of the last quarter. In terms of credit facility, as you recall, we entered into a new credit agreement in connection with the IPO in September, and in February we agreed with our banks to increase that facility by an additional SEK 1.05 billion. After the closing of the acquisitions that were made in the quarter, MPS and Zentrale, and also adding the closings of the acquisitions ExpressGlass and Charles Pugh in the second quarter, our remaining unutilized credit facility is just over SEK 700 million. We have also entered into an interest rate swap agreement for a part of the company's interest rate exposure at the beginning of the second quarter. Moving to slide number 21, and looking at our cash flow. Operating cash flow in the quarter was SEK 76 million compared to SEK 111 million in the first quarter last year. We saw a strong seasonal increase of working capital in the quarter, which affected cash flow, and this mainly relates to a build-up of accounts receivable. We expect cash flow to be strong in the second quarter. Cash conversion was a strong 90.8% in the quarter. As you remember, our business has a limited underlying CapEx and the resulting in a strong cash conversion. Moving to slide 22, a summary of the acquisitions that we have made in the first quarter. We made nine additional acquisitions. The acquisitions of Zentrale Autoglas in Germany and MPS Bilskade in Norway were of course the largest ones. Both were consolidated from the 1st January. We are also happy to see that our Spanish business, Ralarsa, has completed its first to the business. Now moving over to slide number 24, and Anders will give some summary remarks. Yes. We are happy to have completed important acquisitions and that they all had a good first quarter in the Cary Group business. Also happy that the first quarter delivered good sales and results figures, a solid start for the high season in which we currently are in now. As all companies have noted, price increases continue to dominate the quarter. We are very confident in the way we have managed to increase prices in the Nordic region, where our supplier agreement allows us to do so, and are now looking into increases by further costs, apart from that. Raising prices will now also be top priority in rest of Europe, where the contract structure differs from the Nordics. We are confident that we will manage to do so during the second quarter. We focus on integrating our new businesses to reach synergies and the economies of scale, as well as operational excellence in initiatives in the U.K. and Norway to uplift margins. When it comes to high season, as I talked about before, we had a really strong end of the first quarter, and the business has started off well in April as well. With that said, we would like to open up for questions. Thank you. Ladies and gentlemen, if you would like to register for a question, it's zero one on your telephone keypad. Once again, it's zero one on your telephone keypad to register for a question. Our first question comes from the line of Herman Eriksson from Danske Bank. Please go ahead. Your line is open. Thank you and good morning. Just first of all, regarding price increases in rest of Europe, can you elaborate a bit on this? How often or how frequently are you able to adjust price increases? When do you expect to see that you have fully offset the price increases that we have seen the past quarters? We have done several increases already. In Germany, we did the price increases earlier this year. They were very quick, I would say, to do so. We have had one price increase in Spain and one in the U.K.. We are looking at doing a second price increase later in the second quarter. Perfect. Just looking at the U.K., can you say anything about how the month has been in the first weeks here in the second quarter? Also, when do you think you will start to see any results or improvement from the operational excellence program that you have initiated now? I didn't really get the first question. Like, you said that it was weak demand in Q1 in the U.K.. How has demand been in the first couple of weeks here in the second quarter? It's definitely better. We could see that it was picking up in the end of the first quarter, and demand has really come back in April. We can see that the demand is fairly strong in the U.K. now. Okay, perfect. Just also on the operational excellence program, you said that when do you think you will start to see any results or improvements on that program? We will see it upticking during the year. As we said, we have GBP 2 million in synergies to take out, but as a start in step one, but we can see some further synergies down the road, but it will start ticking up from now and the rest of the year. Thank you. Perfect. That's all for me. Thank you. Thank you. Our next question comes from the line of Dan Johansson from SEB. Please go ahead. Your line is open. Thank you so much. Good morning, Anders, Joakim and Helene. A couple of questions from my side. I'll take them one by one. Maybe just to follow up on the growth in the UK and Norway to understand it better. Is it only an effect of less miles driven due to Omicron or is supposed to relate to things like sick leave among your staff and labor shortages and such internal things? It's actually more due to our staff shortage. We had significantly high sick leaves in the beginning of the quarter, which made us close a lot of workshops during this time because we were not able to staff them up. It's not really a market demand issue. It's more about our capability of having the workshops open with such high sick leaves as we had in the beginning of the quarter. Great. Thanks for the clarification. Also perhaps a question on if it's possible to split out in the quarter, how much of the organic growth are driven by price versus volume, either on a group level or a segment level? Is it 50/50 price and volumes or what's sort of the dynamic there? We haven't disclosed that in the detail, but as Anders said previously, I mean, in the Nordic region, we were able to feed through price increases to reasonable extent. Whereas in the rest of Europe region, due to contract structure, we did not see any significant price increase, with the exception of the German market where price increases were implemented early on. It differs between the regions, but the price component was larger in the Nordic region than in the rest of Europe region. Perfect. Thanks. The final one from me, if I may. Corporate costs, do you expect them to stabilize around these levels of SEK 20 million, give or take per quarter, or do you see a need to increase that further now during the year to support the growth you're experiencing? Based on the current platform that we have, we don't expect any increases. As we said in the last quarter, I think our baseline was the fourth quarter last year. We were a little bit lower than expected on the margin in this quarter, so could maybe be a slight uptick, but no significant increases based on the current platform that we have. Perfect. Very clear. Thank you so much. Thank you. Our next question comes from the line of Olof Cederholm from ABG. Please go ahead. Your line is open. Hello and good morning. A couple of questions from my side as well. The mix was positive in the gross margin bridge, which is interesting. Is this a geographic mix effect or is it calibration growth that's driving this? In this quarter, the main effect is geographic mix. We did see a strong gross margin in the Nordic region, primarily in Sweden, and the geographic mix is supported by that. Calibration also had a positive effect, but that is not the main effect in the gross margin this quarter. Okay. We talked about the U.K. and how your operational improvements will come gradually throughout the year. Ralarsa is also a big one where you haven't really been able to do much in terms of synergies yet, if I understand correctly. How should we think about that? Is it possible to quantify the synergies you expect coming out of Ralarsa over the coming 12 months? Well, we work, as you know, continuously with improving all our acquired businesses, and Ralarsa is a very strong business from the start. We are now working on a groupwide project to improve our purchasing, and Ralarsa has a very strong role in that process with a strong own distribution and know-how. We haven't, in the first six months of ownership, focused so much on the groupwide synergies on purchasing, but that is something that we step up now, and we expect to see a positive effect on the gross margin from that component in Spain. Also in Spain, we are looking to, of course, grow the business. We started with our first acquisitions, add-on acquisitions in that market in the first quarter of our own franchises, two of them. That process will also over time continue to add also to operational leverage and create further scale for synergies. We're working on it. It's a strong business as it is, but several initiatives that are ongoing, we expect to gradually improve and add to scale and synergies there as well. Excellent. My last question. Is it possible for you to say something about where you think your pro forma net debt to adjusted EBITDA would be, if including ExpressGlass and Charles Pugh? Well, as you probably can work out backwards from the presentation, we will add some debt for those acquisitions. We paid GBP 65 million for the Pugh business, so that will be added to our net debt in the second quarter together with ExpressGlass as well. We expect a slight uptick from the Q1 level during this quarter. To balance that, we also expect strong cash flow in the quarter. It's a high season for us. We did build up some accounts receivable, as you saw in the first quarter, which will be released now in the second quarter. We expect an uptick in leverage from the Q1 level based on the acquisitions, but also countered by expected strong Okay. Do I understand that? Yeah, sorry. I can just add to that, Ola, that we expect gradually to decrease leverage throughout the rest of the year. Absolutely. Thank you. That was all for me. Thank you. Thank you. Once again, to register for any questions, it's zero one on your telephone keypad. Our next question comes from the line of Will Kirkness from Jefferies. Please go ahead. Your line is open. Thanks very much. I've got three of these. Just to firstly looking at the leverage point. Q2 will be the peak, and then we should be back down towards the end of the year, I guess, around about where we are now. Then it's gonna take a little while to get to the sort of 2.5 that you talk about. Are you happy running a little bit higher, or should we just assume that M&A will be reasonably limited, maybe for the next couple of years? I mean, we will definitely pursue any interesting and value-creating opportunities that are out there. We do have strong cash flow, cash generation, and we are able to finance add-on M&As with that cash flow without severely impacting our leverage. As you know from before, these smaller add-on M&As, other top M&As, we are usually able to complete at attractive multiples, and we will continue to pursue those opportunities. As we said in the report, I mean, we've acquired at quite a high rate recently. We've almost doubled turnover in the company, go back 12 months and obviously that has been a big step. We are now focusing a lot on extracting synergies from these acquisitions, and it is not likely that we will continue to acquire businesses at the same high rate in the next few quarters, but also not excluding any interesting opportunities that are out there. If say something compelling came up that was sizable, then you maybe would look beyond debt and maybe equity or? I mean, if a very large or several large interesting opportunities arise, we would take a look at that and decide on a financing strategy at that point. We're very happy with the cash generation and our outlook for leverage based on the situation where we are at now. If that situation were to come up, we would look at it at that point in time. Okay, thanks. The second question, just on growth. You mentioned April being better, just the end of Q1 being better and April being better. Would you be able to just give us a quantitative sense of April versus the 7% organic you saw in the first quarter? Sorry, Will, could you repeat that, please? Yeah. I just wondered if you could give us the organic growth number for April. You did 7% in Q1. I just wondered how it compared to that. You said it was better. Just wondered if you could help us a bit more. Yeah, no, sorry. We will have to come back to that in our Q2 report, so we don't disclose that during the interim. All right, perfect. The last one is just, can you give us a sense of what glass price inflation is running at the moment? What your view will be on particularly to the UK or rest of Europe pass through? 'Cause I know the contract structures are sort of slightly different and your opportunities to revisit pricing may be slightly less. Is the view that within a 12-month window, everything would be passed on? Well, we don't need 12 months for that. That would mean that all price increases came at the same time and at the very same time as we assigned the contract. I would say that we are working with this right now. We have done several price increases, and we will make further ones during the second quarter, I would say. Yeah, we're working with it all the time. Okay. All right. Thanks very much. Thank you. As we have no more questions registered, I now hand back to our speakers. Thank you everyone dialing, and if you have any follow-up questions, please don't hesitate to contact any one of us. Thank you very much. This now concludes our conference. Thank you for attending. You may now disconnect your lines.