Hello, and welcome to the Concentric Interim Report, January to June 2021. Throughout the call, all participants will be in a listen-only mode, and afterwards, there will be a question-and-answer session. Today, I am pleased to present David Woolley, CEO, and Marcus Whitehouse, CFO. Please go ahead with your meeting. Thank you. Good morning, everyone. Welcome to a very bright and sunny day as we'll want to take you through how we see the first half of 2021 on this Q2 interim report, adding our welcome to you all. If we go to the next slide, we'll see our usual agenda. On those points, there's going to be no surprises. We're going to tell you about the summary for Q2 2021. Once I've done that, I'll then pass over to Marcus to talk about the financial results. It will come back to myself to go through the outlook, how we see Q3 2021, after that, we'll go to Q&A, hopefully we can give good answers to good questions. If we go to the next slide, you see the separator for summary Q2 2021. If we go to the next slide again, we're going to come to the highlights for Q2 2021, and as ever, we'll start looking at sales, net sales and revenue. What do we want to tell you about our very, very busy first half of the year and even busier Q2? Sales were up 38% year-on-year. Actual sales coming out as 473 MSEK against last year's 342 MSEK. There was quite an adjustment for currency, which pushed us back 14%. Of course, now we have Allied Enterprises as part of the Concentric family, giving us a 7% of lift. If we look at sales on a constant currency basis, then year-on-year, we're up actually 45%, that the market is absolutely coming back. If we look at the demand from end markets, basically we can see that very strong increase is very much centered on Europe and rest of the world, looking at 69% and the Americas at 14%. We think that the big difference in those numbers is purely down to the phasing. If we cast our mind back to 2020 and we saw COVID coming around the world in a westerly direction, rest of the world and Europe was taken out first and the Americas survived a little longer. That explains that difference in the big numbers. If we look what's keeping us busy on every single day, basically supply and demand, the supply and demand balance is very, very strongly in favor of demand. If we look at the supply chain, we've seen extremes of pain in the supply chain, whether it's availability of certain metals, plastics, bearings, and everyone will talk about microprocessors. Basically, we've worked very hard in our supply team to meet those very strong customer schedule requirements. I'm really pleased to say that overall, I think our team have done a fantastic job keeping our customers moving. No doubt we had some very exciting moments over this last quarter as the world got stronger in demand. Again, team really handled those long supply chains extremely well. Last point on this slide, if we look at the order book, no surprises as ever. The order bank remains very strong and the book-to-bill ratio still sits at 107%. If we go to the next slide, we'll start to talk about the earnings. What was the output of running very hard to make those sales? Okay. What we're going to tell you about is basically the strong sales basically really came through to support operating income, 107 million SEK against a prior year of SEK 28 million. Last year's SEK 28 million was suppressed somewhat by a restructuring provision. COVID-19 was in full swing. The operating margin came at 22.7% against the prior year, 8.3%. Overall, we were pleased that the extra sales, we did a good job of converting them and dragging them down to the bottom line. If I look at that next point here, commodity prices and freight rates, they have moved in a dramatic direction. Again, people listening to this call will follow the same ratios, but commodity prices moved by 100% over a 12-month period. If you look at freight rates over that same 12-month period, we're seeing freight rates have increased between 300% and 400%, looking at which route and which method of transportation. The supply demand really rocked metal prices and freight rates. Of course, that's starting to have an impact in the quarter. The margin was strong, but we were feeling the impact of that. In many cases, we have metal escalator contracts with our customers, there is a pass-through in most cases. There is a lag, of course. If we have three or six-month reviews, there is a lag that we're paying metal before it goes forward. Freight rates has meant we've had to negotiate with many customers to help out with unavoidable and significant cost. Basically, I think a lot of that pass forward on costs will be into Q3 of this year. We had good cash conversion, and when I say good cash conversion at SEK 76 million, to qualify that, clearly any business going into sharp growth is going to drag in inventory, it's going to increase its receivables from customers. We're actually pleased that the cash is as strong as this. Again, we expect to see a bit of a positive rebalancing in quarter three. We did pay a dividend as well in the second quarter of SEK 133 million. Our net debt remains very strongly in control. The net debt was actually a -SEK 22 million compared to last year's - SEK 67 million. Our gearing still remains safely in the minus territory. Just a point of note. We spend a lot of time measuring and managing our pension liabilities. The strong recovery in the economy over this last six months meant that we had a balance sheet improvement as our liabilities fell by SEK 109 million. The graphic is quite powerful. If we look at what the graphic is telling us in terms of actual income or percentage of profits, you can see that our Q2 2021 is pretty much now on par where we were in Q2 2019. Pretty much out of COVID-19, pretty much working very hard, very fast, and pretty much dealing with some exceptional supply and cost issues. If we go now to the next slide. It's good to look into the future. It's great to talk about the quarter. It's great to be able to thank the team for their fabulous reaction to crises and fast recoveries, but it's still a 10-year picture, so we need to talk about electrification. What this slide is trying to tell us is that the main drivers in the market do not change, and they're extremely positive and kind towards the Concentric business. Our customers are absolutely on course to reduce CO2, heading towards new CO2 neutrality. The aim in so many sectors is to go to zero emissions in those next number of decades. Basically, what we tried to do across this last quarter, in June particularly, we tried to send out some of the relevant press releases which help guide the investors to say the progress we're making. We'll talk about four, each one was important in its own particular way because I think it shows the broad strength of the business and it talks about the geographic impact. At the start of June, we announced a new contract to supply electro-hydraulic steering equipment, EHS, to a North American truck manufacturer, electric trucks, everything about the last mile of delivery and returning to base segments, short cycle trucks. Again, we were pleased to win the business. The second one there, 7th of June, was an important development contract. Not our 1st, but it's a development contract for fuel cell applications. We are absolutely insistent that electrification, whether it's by battery or fuel cell, whether it's on highway or off highway, they're all absolutely relevant markets to Concentric. This win of a development contract for fuel cells is important. Next point, we'll talk about our joint venture business, Alfdex. The Alfdex patented product has had an excellent market-dominating position for more than a decade. Typically, the product is turned by hydraulics, it's turned by oil. What we've managed to do in this last part of the year is actually win electrically driven disc separators. It's significant the business doesn't start until another two or three years, but it's product significance that we're moving Alfdex into the world of electrification as well. Last point I wanted to talk about was, again, it was another electric coolant pump, electric water pump. It was basically for cooling batteries, and it goes on to battery electric vehicle truck applications. A very, very steady beat. If we go to the next slide, what that will say, and it's the important direction that we want you to understand is that we've been saying now for the last two years that by 2025, 20% of Concentric's revenue will be from electrified products. With these four press releases alone, these are worth SEK 900 million over those five years based on innovative, class-leading, high-performance e-pump technology. A deeply positive story, and that will continue to grow in the time to come. If I ask you to go to the next slide, I will then pass the presentation over to Marcus Whitehouse to talk about the financial results for Q2 2021. Super. Thanks, David. Hi, everybody. Next slide, please. That should take us on to the Q2 2021 market data. You will see the same graphic as we normally talk about. This time it's a sea of green. It's showing strong recovery in all of our end markets and all of our end applications that we serve. I'm not going to talk about the individual quarter. I think because of the scale of the pandemic in Q2 2020 and the noise that we have in an individual quarter within the market indices, it's not actually meaningful to talk about the scale of change. I think what is meaningful is to actually look at the overall year once some of those inconsistencies in the quarter are ironed out, take what is the general direction from what the market indices are suggesting. That says that we are going to continue to see growth within the second half of the year across pretty much all of our end markets and geographies. That outlook has changed in a positive way from the first quarter, where they were indicating growth of 9% year-over-year, to what they're now indicating is growth of 16%. That's up 7%. That may look, again, a little conservative from what we see within the overall market, but it is positive, and directionally, it feels correct. If we move to the next slide, we'll come on to our Q2 2021 trading performance. As David touched on, sales have been reported at SEK 473 million for the second quarter, up 38% as reported, and with an underlying sales of 45%. Our operating income is reported at SEK 107 million, up 123% from that second quarter. As we've noted, that second quarter was heavily impacted by the global pandemic. What we do see now is that our operating margins have returned to levels of pre-pandemic era of 22.7%, up from 14.2% in Q2 of last year. When we look at the operating margin percentage as reported, we are up against the 8.3%, but that was impacted by the restructuring provision of SEK 20 million. When we look at the half year, we can now see that our sales have been reported at SEK 905 million, as reported up 13% year-on-year, but underlying is up 20%. Our operating income is now SEK 202, up 50% on that we reported for the first half of 2020. Our year-to-date margin is now reported at 22.3%, a good, healthy margin on a business post-pandemic era. If we move to the next slide, please. Now this starts to break out the segmental analysis by region. The first thing I want to draw your attention to is just that top graphic, the sales and the book-to-bill ratios. We've been reporting growth now consistently quarter-on-quarter since quarter three of 2020, and this quarter is no exception. The quarter-on-quarter growth, which I think is an important measure, has been 10% quarter-on-quarter, showing again, the markets are recovering and we are continuing to supply our customers' demand. It's also interesting to see the two book-to-bill ratios. Whilst overall for the group we're at 107%, there is two different beats that we have as we break into the segments. Europe is roughly around the 100% mark, whilst the Americas is still ticking up at 126%. That ties into to the point that David was touching on earlier. We are struggling with some of our supplies from our suppliers to get components into our factories, particularly into the U.S. That is meaning that we are sat on a slightly higher order bank in our U.S. businesses, which we are looking to supply and build out during the latter half of the year. We've seen that our overall margin for the group year-to-date now is sitting at the normalized levels of 22% and what we were enjoying in 2019. So too are our two segments. They have both returned now to normalized levels, and we've been reporting pretty much now consistent margins on the Americas and Europe. Europe nearing the 22%, the Americas at the 15%. If you move to the next slide, please. This will talk about our cash flow and gearing. Yes, we've touched on it. Cash flow from our operating activities in the quarter was SEK 76 million, SEK 148 million for the first six months. Both of those conversion ratios of profit to cash are around about the 70%-75% mark. Not normally what we would expect and not normally what we would enjoy. We always look to have that one-to-one cash conversion ratio. We have got growing sales, which is consuming a little more cash, and we are being cautious with our stock. As we've touched on, we're struggling to get some of those components in, so we are wisely just holding a little bit more stock on our factories to normalize the production and the production flow and meeting the needs of the customers. Overall, we're pleased with that. As we touched on, the gearing ratio is still sitting at a good place at minus 2% and down from the 8% reported at the end of the last financial year. If we move to the next slide, please. This breaks us out into the cash flow and cash that we've generated on the business. Pretty much flat, as we've said, it was SEK 76 in the first quarter, SEK 148 for the half year. Two quarters of pretty much consistent cash generation off the business. Whilst we talk about high working capital, it should be noted our working capital is still at a relatively low level. We're reporting it at a positive 1.3% of sales. Even when we were operating slightly better than this, we're only at -1%, and we like to be in that tight band of plus or minus, depending on where we are within the cycle. Whilst, yes, not quite what we would want, it's certainly no bad measure overall for the business. Lastly, we've touched on it's just really pension liabilities. The big adjustment on the pension liabilities was in the first quarter. We saw the discount rates move in favor, reducing our overall pension liabilities. Year to date, they are now standing at SEK 109 million. Some minor correction that we had within the second quarter as those rates moved a little. Net debt, we're in a good position where it's only -22%, SEK 22 million and -2%. More importantly, it's the cash position. In the second quarter, we did pay out the dividend payments. We're still holding cash at SEK 498 million. We entered the year at just over the SEK 500 million mark. That is a good cash position to be holding for the business. Again, no external debt at this point in time, and well-positioned to enter into the latter half of this financial year. If I just hand you back to David Woolley now, he will take us through the Q3 2020 outlook. If we go to the next slide, we're going to come to the header, which talks about Q3 2021, the outlook. If we go to the next slide again, we will see the words that try to describe how we see this next exciting quarter. You've picked up the picture. The world is a very turbulent place, but a very positive place. Extremely strong demand in all sectors, in all geographies, and on balance, Concentric has stood out as being one of the performers to make sure that whatever the difficulties were, then basically we've managed to protect the customer and protect the investor. The words here. Next quarter, we see the recovery is going to continue. If we look at our actual orders received from customers, we see the world is getting to be a brighter and busier place. Absolutely, it seems that the rollout of the COVID-19 vaccination program is helping to normalize markets. Again, we are seeing that confidence within our customers. We had a particular issue that the government in India reacted very strongly to have absolute hard lockdowns for manufacturing as well as economic and social activity, and that hurt, but we're now past that. Some of the difficulties, particular local difficulties we saw in India in Q2 have moved on, and our Pune facility has stabilized. If you look at the market indices, which as Marcus has talked about, they're absolutely bouncing around all over the place at the moment because we're comparing a crash quarter last year versus a very strong quarter this year. If we do try to focus on the year-on-year, the indices indicate that year-on-year is going to be up about 16%. To us, it sounds reasonable. Again, the recovery we've seen in the first half of 2021 is going to continue. If we look to our customers, the people who have gone public and talked about the market demand, whether it's in trucks or construction or ag, they're all saying the same thing. The first half year was very busy, but their output was slightly constrained by supply chains, and whatever they couldn't make in the first half of the year, they're looking to make in the second half of the year. Again, there are plenty of reasons to say strong demand will continue across the next half of the year. When we look at the supply chain in a critical and calm way, once we get past the excitement that it's been very, very busy and we've had to take some exceptional measures to get material across the world, we do see the capacity in the supply chain is coming forward. It is repairing. Again, geographically around the world, there are some areas which are struggling more than others. We still will see some pockets of disruption, I'm sure, in the third quarter. We mentioned it in the Q2 results. The commodity costs and freight rates have continued on up. Everything that we can see says that this trend will continue. There will be some tension with incoming costs and discussions with customers to share the cost at least. If we look at the demand for the range of our engine and hydraulic products which do typically move out of phase with one another. Engines is a lead indicator, and the hydraulic products is a following indicator. Both are seeing quarter-on-quarter improvements. Basically, we expect that North America to continue to catch up again compared to the phasing going into COVID is the phasing coming out of COVID. Again, positive and positive again. If we try to quantify it or try to guide, if you look at the level of orders that we actually received in the second quarter, it would indicate to us that sales in the third quarter will actually be still significantly higher than the second quarter, maybe even double-digit. The obvious thing to say as well, the team managed this economic crash and this recovery, this pandemic and its impact extremely well. We're definitely on the other side and coming out. What Concentric has managed to do is to maintain a financial very strong position, whether it's capital structure or liquidity. We're in a great place to enjoy the continuing stronger demand. If we go to the next slide, that's all we had to say based on the prepared narrative. What we'd like to do, of course, is invite any questions. If we can answer them, we absolutely will. Thank you. If you do wish to ask a question, please press zero one on your telephone keypad now. If you wish to withdraw your question, you may do so by pressing zero two to cancel. Once again, if you have a question for the speakers, that's zero one on your telephone keypad. There will be a brief pause while questions are being registered. Our first question comes from the line of Erik Golrang of SEB. Please go ahead. Your line is now open. Yeah, thank you. I have a bunch of question actually. First one on the current demand level, given what you're saying about sequential improvement here into the third quarter. Would you venture into a guess on how much of what you experience is restocking? How much will sales fall off once we sort of rebuild inventories to a bit more decent levels here? Second question on improving or raising selling prices to compensate for higher input costs. Should I read you correctly that you see a quite big cost increase into Q3 but a one-quarter lag before prices come through, so there'll be a bit of squeeze on the margin in the third quarter? The third question is on e-orders, SEK 900 million in accumulated orders there. How much of that has been delivered already? Thanks. Okay. Hi, Erik. Good morning. Thanks for the three questions. Let's see if between the two of us that we can answer them. The question about current demand, what is new orders, what's supply line refill? I spend a lot of my time personally talking to our top 10 customers asking that same question. By policy, they won't answer it. By policy, it's difficult for me to answer it. I think it is a statement of the obvious, though. Through COVID-19, our customers absolutely did empty supply lines. They did sell everything they could from their warehouses as they were struggling with both material supply and people getting into factories in that time Q2 last year. Our customers won't give a number to it, but I think if I could try to estimate it, we think that they are still refilling the supply line to some extent, and we think some of that safety stock, which will be the aversion therapy for avoiding the same problem again, I think that we are still going to see some level of refill in Q3. The underlying demands, what customers are buying absolutely is very real because whilst, for instance, truck manufacturers and machine manufacturers weren't selling last year, then the stock, the park of vehicles and machines out there were still working hard. Food was still being produced. E-shopping increased. The capital out there was being worked very hard and wasn't being replaced. There is definitely a very strong demand to actually fill the gap. Public demand now, publicly reported episodes on passenger cars, for instance. They can't get enough passenger cars through. The prices of secondhand cars are shooting up. Some refill, Erik, but I think there's a very, very strong demand on top of that. In terms of impact to selling prices, I would describe that the lag is actually three to six months. If we consider metal prices, and again, whether it's copper or aluminum or neodymium rare earth magnets, then the impact that we've seen over 12 months is a doubling of commodity prices. It's 100%. Typically, not always, where we have contracts with customers, there are 6 months review periods. It's absolutely the case that we're sitting on a lot of metal cost through the first half of the year, which will translate into metal price changes on July 1st. Absolutely, we can put a ring around metal impact by contract to a 6-month lag. The thing which has been more difficult to manage and report and talk about is freight costs. Again, to give numbers from publicly available indices, the cost of a container going from Asia to Europe or U.S. has gone from $1,500 last year to nearly $6,000 this year. Again, pushing 4x. As that's come through, we don't have escalators with customers. These are much tougher real-time negotiations with customers to say, we can share, and we are sharing that cost. We are absorbing some of that cost. Absolutely real time with these negotiations, and those have been going on since the start of Q2, where it was obviously inevitable that rates were going up, and we'd already sat on three months of pain before we had to start taking it to customers. That lag is probably three months as opposed to a metal lag, which is six months. The other thing which we haven't spoke about in the presentation, but it's a given, as the economy has rebounded, as supply and demand has swung heavily over to demand, then there are underlying economic price increases, which we're working with as well, with ourselves and our customers. Three to six months lag, absolutely. We expect that Q3 will see a good part of our money coming back to us, and we'll expect to see that in cash. The third point, Erik, around e-orders. The vast majority of that SEK 900 million is not in our sales. This is future-based. These are sales which typically will be one year or two years out, which is why I always take time to calibrate for the listener, for the people who follow the business. We'll keep coming back to that one heavy data point, which will prove us right or prove us wrong, and I am fairly confident we'll be proved right, is that by 2025, our very good business will be selling 20% of its revenue coming into and from electric products. Whether it's high-pressure steering systems, whether it's lower pressure coolant systems or oil lubrication and cooling systems, the trend is absolutely set. This SEK 900 million just absolutely is a great mini milestone to say we're on target for our 20% by 2025. Just to add to that, Erik, just to give you a little bit of guidance. There is expected to be a bit of a margin squeeze in that third quarter as we have that lag that David talks about. It may be 1%, it may be 1.5%. It'll be in that sort of magnitude. Then we're hoping then for the fourth quarter that those price increases then come through and the margins head back to normalized levels. Just bring, again, just a little bit more to that SEK 900 million. We've talked many times, the turnover from electric products last year was around about the 1%. We know that, we know that it's going to go on a fairly not linear growth, exponential growth over the next few years. We are seeing sales from quarter one to quarter two, again, being stronger within the electric area. Again, we are right at the start of supplying the SEK 900 million. Yeah, there's plenty more to be going at as we go out to the back end of this year and into 2022. Thank you. If I may, just to follow up on that. Has there been a bit of a release on tendering activity on the e-business or here, which means there is going to be a bit of a pause, or do you expect continued good order momentum here for the remaining part of 2022 or 2021? I think I would answer your question, Erik. I'd answer it in a slightly different way. I'll answer a question you didn't ask. In terms of activity quotations, we haven't seen a pause at all. We're extremely busy on the whether it's battery electric vehicles, whether it's fuel cells, whether it's steering, whether it's on-highway or off-highway, all sectors are affected. We haven't seen the pause at all. I think if we look at this year, we've put out more press releases this year than we had in the entire three years before. I think the one interesting trend, which is a question that you didn't ask, where we have seen the pause is when we look at our work on diesel engines, base diesel engines. We've seen the engineers that have worked on those engines for diggers or for on-highway or for tractors move over to e-projects. We've absolutely seen a softening of conventional diesel engine development in preference towards the clean technology. That trend is absolutely clear. For what it's worth, I think that once the e-market really picks up its momentum, I think that the work on diesel engines will actually revive itself because in that medium term, there is absolutely a need for mild hybrids. We do see that electrification wave keep going strongly now on battery and fuel, the wave will then move back onto diesel engines for hybrid diesels, electrification of base diesel engines. Very good. Thank you. Thanks, Erik. Thank you, Erik. Thanks very much. Thank you. Ladies and gentlemen, once again, I remind you, if you do have a question for the speakers, please press zero one on your telephone keypad now. Our next question comes from the line of Mats Liss of Kepler Cheuvreux. Please go ahead. Your line is now open. Hey. Thank you. A couple of questions. First, the outlook there and safety is expecting to improve and I guess book-to-bill in the Americas are very strong. Maybe diluting the margin outlook somewhat given the low margins in the Americas. You mentioned the margin squeeze on raw mats. Maybe operational leverage also in the U.S. It's sort of a positive margin outlook as well. Yeah. We'll go back to the overall business one, talk about the individual sectors. I'm not expecting those margins to change dramatically in their sectors. We know we're going to get a little bit of a squeeze on raw materials and freight in that third quarter. As I said earlier, Mats, I'm expecting there to be 1% to perhaps 1.5% margin squeeze in quarter three as we transition, as we go through that quarter, we can provide further guidance. That's what my expectation is at the moment. Just sort of if you could share some thoughts about the margins within the engine and the hydraulic business, is there any sort of major differences there? I think to take a very positive stance here, Mats, if we go back into history, of course, our roots come from Haldex. If we look historically, there was quite a step change difference between the margins from hydraulic product to engine product. If we look at the many years of business excellence, this Concentric business excellent model, what we're seeing is the margins across the two product ranges have pretty much normalized. There are small differences, but nothing really to be that interested in as a business. They found same levels of productivity with labor, same levels of productivity with material recovery and material price, and transforming the business that some of our hydraulic applications are fascinating, some of our emergency steering projects, some of our emergency braking programs. Long answer to say, overall, the margins between the two are actually quite similar. Thanks. Good. Looking at the P&L there, the share of net income in joint ventures is continually good. It's no drama there. What is the impact there from Alfdex and maybe the changeover from China five to six there? Should we expect a slowdown there on that line in the second half? There are two parts of that question, and I'll answer the first, and Marcus will come up behind. If we look at our Alfdex business, it has been good margin for the last decade as it's matured and matured, and it has a market dominant position in Europe and the U.S. Always good margin, and basically as it crashed in COVID, like everyone else, it bounced back post-COVID. The truck market is more volatile, for instance, than construction machines, and it's more volatile than ag machines. The dip goes lower, and the climb goes faster. To talk about China, we've invested into the China opportunity four years ago. What we saw was delay and delay and delay, as we've seen in the last, whether it's Euro 2, Euro 3, Euro 4, or Euro 5. Euro 6 or China National VI is the equivalent, has slipped slightly. To try to give maybe too much detail in there, we started selling quite a few separators in China during 2019 as gas engines went over to China National VI standard. China National VI standard went full on across the country on the 1st of July this year, of course it didn't. There was a massive pre-buy of the Euro 5 or China National V vehicles. Lots of stocks, the Chinese government has given permission to delay the introduction of China National VI standard in many regions across China. The position is still extremely positive. Our investment four years ago is absolutely coming to fruition now in China, the ramp-up rather than a step change, has gone through a steady climb. Operationally, I don't see that as a problem because the step change 1st of July was quite a scary concept. Very positive, getting better, but it's going to be graded. The impact on the margin overall, then, of course, we can tell you what we can on that. I'll ask Marcus to pick up the question. No problem, David. You have to take the two lines as we've talked before, Mat, to understand the Alfdex position. We've both got the share of net income from the joint venture on the face of the P&L. We've also, within the other income, have got the royalty that's coming in from the joint venture. Now this year, we've had a change in some of the accounting that we've changed the royalty rate. It's flipped the level of profit that's been taken out against those two lines. You have to combine the two to really understand the true picture. When you look at the first half of the year, this time last year, we'd taken net income from them of about SEK 27 million, royalty and net income combined. This year, SEK 49 million. Yes, it's doubled overall. Alfdex are having a good first half of this year, driven not as much as we would want with China, certainly driven from China and overall the recovery from the global pandemic. You need to just combine those two lines to see what the true picture of Alfdex is having on the business. Yes, positive is worth saying. Driven by some extra volumes in China. Okay. China is not the main contributor here either. No, it's not. It's becoming a significant contributor to the Alfdex business. That year-on-year is, again, North America and European trucks, they too were almost 100% truck facing. We know in that second quarter, they absolutely collapsed last year. Concentric was balanced out a little, both by geographies and split between hydraulics, off-highway products and trucks. They had the huge swing down in that second quarter, and they've had the full bounce back. That's why it looks so dramatic when you look at Alfdex in comparison to Concentric. It is skewed just to trucks almost 100%. Great. well, I heard you were somewhat disappointed about the cash conversion, and should we expect that to sort of swing back already in the third quarter? Well, I'll pick that one up. I'm not expecting it to swing back in Q3 2021. I mean, still expecting there's going to be some sales growth as we've talked about quarter-on-quarter sales growth. It will consume a little working capital as we know. We won't get that stock necessarily out until the supply chains fully settle down, and we know that that's going to be over the balance of the second half of the year. When it does balance out and the supply chains are normalized, then yes, we're expecting our absolute normal cash conversion ratios to start to come back, and we'll start to see that wash back in. For Q3 2021, I'd just put a little bit of caution again on the cash conversion ratio. Yeah. There are a few factors in there. Typically, we are very aggressive on inventory management. We drive it down as hard as we can get. If we talk about the regions, and particularly the U.S., by the way, it's nothing that isn't in the press. The ability to get material from Asia into U.S. has been deeply hindered. The main ports across California have been absolutely blocked. We've had material stuck in ships for four weeks before they could get into port, and then they couldn't get through port. We've taken a policy decision to be quite gentle on inventory because there's a cost of inventory, and there's a value of inventory. What we've seen on this absolute climb is we've softened off the view on inventory and also, to be practical and honest, if there are certain components you can't get in, the inventory that you bought in to make the rest of the product is sitting there waiting for the missing part. Inventory is going to be a trailing point. We're going softer on it, I think the global shortages will impact us a little bit. You got to look at trade working capital. Our receivables are right way up there, I am pleased to say. We're being quite kind to our suppliers. We're not going to mess around on payables because we want them to be shipping us parts. Again, it's going to be a slower burn to see some of the freight cost recovery come back. Complicated. I'm slightly more optimistic on Q3. It's going to be tough, but we'll be gentle as well. By Q4, I think the rebalancing will be closer towards where we want it to be. Sounds great. Finally, just about the electrification there, we have this 20% target, and I guess previously you have been pretty clear about that this is more a back-end loaded 2024, 2025 that sales could be expected to pick up. The European Union have sort of implemented or are talking at least about hardening the emission standards and so on. Do you think that sort of will speed up, well, maybe move forward a bit this sales pick up? Or maybe you see larger opportunities in the second half of the 2020s? I think, Mats Liss, it is a really good question, and I think whether we were brave or reckless to put the target out there for the 20%, we were trying hard to give the magnitude to the investors that what's happening at the moment is a market and for Concentric business transformation. It is an absolutely exponential curve. I think the biggest reason why it's exponential is it's legislation. By the time we come to 2025, the manufacturers of whether it's a truck, whether it's a bus, whether it's a construction equipment or tractor, on highway, absolutely, by the time we come to 2025, rather than it's a good thing to do when they look at fleet CO2 output, then the manufacturers of trucks and buses need more electric vehicles. It's not a nice thing to do anymore. It's a legal thing to do. That's why we see it's an exponential growth curve to 2025. The second part of your question would be, and it's a really good question, I think our prediction for 2025 is absolutely safe. That big question would be, would it be stronger post-2025? I think, and it can only be a guesstimate, can't it? I think it will be stronger, but for different reasons. I think e-buses, e-trash collectors, e-fire engines, e-tractors are all going to be featuring on highway stronger than off highway. I think we will come back to, I mentioned in the presentation, the resurgence, the recovery of the development of hybrid diesel engines. I think once we get past the biggest wave on battery and fuel cell vehicles, there'll be a resurgence to say, but for long-duty, heavy-duty vehicles, we will need more hybrid engines, mild hybrids. I think we'll see more growth post-2025 in that sector. Nothing will go down, and I think it's an extremely positive future for us. Yeah. Sounds reassuring. Thank you. Thanks, Mats. No, lovely. Thank you, Mats. Some very good questions. Thanks so much. Our next question comes from the line of Erik Golrang of SEB. Please go ahead. Yeah, thank you. I just have one more question on the tax rate. Should we assume that that stays sort of in the high teens because of the impact from Alfdex rather than coming out on 20+ on a reported basis? Erik, I'd probably feather you towards the 20% mark. The reason for that is, yes, you're absolutely right. It is being heavily affected with the way we have to account for Alfdex in how we report. We have also got a little bit of a provision release that we've got. We were a little over-provided on some of our taxes, and that's been released in the first half of this year. We've also got some internal dividends that are likely to be paid in the second half of this year from territories where we'll have withholding tax. That tax charge is likely to come through in the second half. I would probably feather you more towards the 20% for the modeling. Very good. Thank you. Okay, thanks. Thank you. We currently have no further questions. I'll hand back to the speakers for any final remarks. That's super. Thank you. Once again, as ever, thanks very much for you to take the time to listen to the presentation. Thanks even more for the questions. Hopefully, the answers were as good as the questions. Thank you all very much. Have an excellent summer, and talk again at the next interim review. Thanks, everyone. Thanks so much. Thanks, everybody. Speak soon. Bye-bye. This now concludes our conference call. Thank you all for attending. You may now disconnect your lines.