Yeah. Good morning, everybody. Warm welcome to the Concentric Q2 earnings conference. I'm Martin Kunz, the CEO, and I'm here with Marcus Whitehouse, our Chief Financial Officer. If we highlight Q2, it was a strong quarter in a difficult market environment. Our sales were up 116% year-over-year to SEK 1.021 billion, compared to SEK 473 million the year before. This was driven by 13% foreign exchange, the acquisition of EMP that contributed 78%, but also underlying constant currency sales. Constant currency sales are up by 25%. If we look at the different businesses, there's almost an equal growth between engines that grew at 24% and hydraulics which is up 25%. In engines, we had 17% of growth coming from volume and 7% coming from price. While hydraulic achieved 9% volume growth and 16% coming from price increases. Demand continues to be strong. The book-to-bill of 108% in Q2 shows that our order book remains strong. Next slide, please. Changing to earnings. Our operating income for Q2 has been at SEK 164 million compared to SEK 107 million the year before. The operating margin is at 16.1% compared to 22.7% the year before, reflecting the impact of the consolidation of EMP here in the operating margin numbers. Macroeconomic factors continue to affect our supply chain, both in terms of material availability as well as cost. The ongoing war in Ukraine has contributed to general inflationary pressures in most of our geographical regions. We have worked through the Concentric Business Excellence program to maintain our strong operating margins. China's weak economy and the response to the return of COVID-19 impacted our Alfdex business. This is the joint venture we have with Alfa Laval. As they had really minimal volumes sold in China during the second quarter. Next slide, please. We look at the market highlights. We're seeing a very mixed picture across our end markets. The published market indices suggest that our business is basically flat year over year. However, North America remains strong, Europe appears to be weakening, and the emerging markets are mixed. For the full year, the indices show that the strong growth following the pandemic is tailing off and the market growth is slowing. However, the market will remain at a sustained high level. Next slide, please. Handing over to Marcus, who will walk us through the financials for the second quarter. Super. Thank you, Martin. We should now be on the financial results for Q2 header slide. Moving to the next slide, please. Q2 2022 trading results. It is, as Martin said, a really pleasing set of results to be reporting this quarter. It's another record sales for our group. We are up 9% on Q1 and are reporting sales at SEK 1021 for the second quarter, and that's up 116% on this time last year. The operating income is being reported at SEK 164, up 53% year-on-year, and with a operating margin in the quarter of 16.1% and 16.9% for the first six months of this year. Next slide, please. When we look at the sales bridge to explain away our movement of 116%, let's just first concentrate on the underlying sales. Underlying sales have grown by 25% year-on-year, of which 13% relates to volume, 12% is relating to selling price increases to recover some of those costs that Martin talked about earlier. It is a strong trading performance in what has been a particularly challenging quarter. Next slide, please. The remainder of our sales bridge year-on-year is explained by the acquisition of EMP, which has contributed 78% to that sales growth. With a continued weak Swedish krona against most of the major world currencies, we have a FX tailwind, which has added 13% to our bridge. Next slide, please. When we look at cash flow and gearing, and again, followers of Concentric over many years will know we focus heavily on cash. We've seen an improvement in our cash conversion ratios or profit to cash conversion ratios, which this quarter is now at 80%. Cash from our operating activities is being reported at SEK 76 million. Better than Q4, better than Q1, and an encouraging trend. We still do have a little bit of a lag on our cash generation, primarily due to inventories due to disruption and ongoing disruption that we have within the supply chain. Our net debt increased by SEK 65 million, mainly due to FX changes that we had, and that was linked to our U.S. dollar loan that we used to finance the acquisition of EMP. Our gearing ratio at the end of the second quarter is now 56%. Next slide, please. As we look into each of our two divisions, we can see engines are very similar to hydraulics. Sales are up 24% in constant currency year-on-year. 17% of that is coming from sales volume increases, 7% from price. Book-to-bill ratio for engines, again, is healthy. It's 109%, for the business going into the third quarter. Operating income, SEK 99 million, up 43% from the prior year. The operating margin is 14.6%. Now, that is down on the first quarter by circa 3%, of which 1.5% of that really relates to Alfdex. Alfdex with its exposure to the China market, and China that is having generally a weak economic output at the moment, but also its reactions to the COVID-19 and the lockdowns, has really affected our JV in that second quarter. The balance of the pressure that we've had on margin really does relate to the framework agreements that we have in place, which ties us to when we can push through selling price increases for engines versus the cost that's coming into our business. Next slide, please. The hydraulics business, very similar to engines. Constant currency sales increased 25% year-over-year. Slightly different mix that we have. 9% is coming from volume, 16% from price. Again, the hydraulics business is different to engines. It is far more fragmented in terms of customer base and less framework agreements that we have in place, which means we are a little more able and agile to move pricing on hydraulics into the engine into the end market. Book-to-bill ratio, again, similar to engines, strong 107% going into third quarter. Operating income has been reported at SEK 65 million, up from 38 last year. That's a 71% year-over-year increase, and a good healthy 28% profit flow-through on the increased sales. Operating margin has been reported at 18.8% for hydraulics, up 1% from the first quarter, and largely reflected by some of the price recoveries that we've been able to achieve within the marketplace. Next slide, please. Just touching on the balance sheet to conclude. As I touched on, working capital is up. It's up primarily due to the increase in inventory and the ongoing disruption within the supply chain. We have been able to get a better profit to cash conversion ratio in this quarter of 80%. Net debt and gearing. Well, pension liabilities continue to drop as discount rates continue to increase. However, as stated earlier, the overall net debt did increase in the quarter, but primarily due to FX movements. Cash and cash equivalents at the end of the second quarter reported a very healthy SEK 345 million, and that's after paying our dividend of SEK 142 million in the second quarter. Balance sheet still remains very strong, going into the second half of the year. That concludes the financial section. Moving now on to Q3 2022, and I'll hand back to Martin. Thanks, Marcus. Let's talk for a moment about the outlook for Q3. When we look at the market indices, they suggest that the overall market will be up 5% for the full year 2022. That means that the market will maintain at a sustained high. However, inflationary pressures are predicted to continue for the foreseeable future, and this requires regular discussions with our customers to ensure that the price increases we are seeing from suppliers can be passed along the value chain. The availability of raw materials and components remains a critical sales constraint and will continue to influence our 2022 sales, as will the availability of labor, in particular in North America, where the labor market is very tight. I have to say that our teams, however, have done a great job again in this past quarter to manage the supply chain situation in close collaboration with our key suppliers and ensure that we can serve our customers as needed. We are now operating in a high inflation environment and the regional central banks are taking the necessary steps to control inflation by increasing the interest rates. These macroeconomic factors should have an impact on the demand for our product across the different regions and end market applications. However, it remains too early to predict medium-term demand. The level of orders received and expected to be fulfilled during the third quarter were broadly similar to the reported sales for the second quarter in 2022. This basically concludes our summary outlook for the coming quarter. Let's move over to questions. Any questions from the audience? We will now begin the question and answer session. Anyone who has a question may press star and one at this time. Well, if we have no further questions, I think we'll draw the call to a close. We'll thank you for attending our Q2 call. Sorry, this is the operator. We have questions from the phone. Okay. The first question comes from the line of Julia Utbult from SEB. Please go ahead. Thank you, and hi, Martin and Marcus. My first question is on organic growth. It seems that you are highlighting in the report that the organic growth was not driven by gaining market shares. What would you say the main drivers for organic growth was, and how do you look at gaining market shares going forward? Yeah, Julia, thank you very much for this question. When we look at the market indices, they are an indication for, let me say, how the market is doing. There are always timing issues and, let me say, we also have a complex blend of our different end markets. It's at this moment in time, based on what the market indices suggest, difficult to say for us whether we have gained market share or not. I think the growth is positive, it's strong, but we probably have to see another quarter or two towards the end of the year, let me say, how we're doing versus what the market has predicted. Okay, thanks. If we relate this to EMP, what has the response been among your customers since you acquired EMP? Like, could the full system solution rather be seen as a new product, or is there a dual sourcing risk where you lose some of your legacy Concentric or EMP's customers compared to when they were separated? That's really a great question, and we appreciate that you ask it. I mean, the acquisition of EMP has been really a quantum leap improvement for Concentric and is highly appreciated by our customers. We're seeing synergies across the Board in particular in North America, where obviously EMP has its home turf and customer base. Customers appreciate, let me say that we're joining forces there on what we call the conventional side of the business. That means the non-electric products. When we look at the additional products that EMP bring to Concentric, among them for example the high voltage fans which is a completely new product for legacy Concentric. We are in talks with many customers already here in Europe as well, about how to bring these products to Europe. Overall, the response from the customer base is absolutely positive, and also among the employees. The acquisition of EMP so far has been a very positive step in the history of the company. I'm happy to hear that. Could you give us some flavor on how the margin integration is going and what to expect ahead in terms of what pace the margin in EMP is integrated? Yeah. Hi. I think we've touched on this before, Julia, with the margin. The margins we'll see will probably evolve over time, but it will evolve over time more through mix management as we start to move away from some more of the conventional business that they have onto more of the advanced electric product that we've got. It will be a journey, and we're confident that journey will help margin both for EMP and the group, but it'll be one that we'll experience as we start to manage that mix within EMP. Is that something you have started to see already? No. Not quite yet, Julia. It should be coming as we start to get into next year and volumes start to change, but it's not something that we're gonna be enjoying over the next quarter or two. Now, Julia, just to add here, we are seeing synergies obviously that need to be materialized. The two organizations together have now a significantly higher purchasing volume that will allow future synergies also to come, but obviously we are working on those to be materialized. Thank you. That's clear. I will go back in line. Thank you, Julia. Talk soon. The next question comes from the line of Björn Enarson from Danske Bank. Please go ahead. I'm afraid we can't hear you. Is this better? That's better. Yep. My headset. Okay. Yeah, good morning. I got a question on the situation in China now, and then for Alfdex. Have you seen a recovery already, or how do you look upon that development? We have seen some positives elsewhere post the lockdown. I guess. Yeah. Uncertainty remains high, but if you have seen something already. Yeah. Björn, thanks for the question. I mean, the China situation remains uncertain. So what we are seeing right now is not only that the demand for Alfdex product hasn't yet ramped up, we also observed that there are high levels basically in all stocking points in the supply chains that might let me say make this recovery even slower. In the second quarter, the production of Alfdex in China has again ramped up. We have to see really how the demand evolves over the coming quarters to be able to assess the impact on our business. Okay. Great. You talked about the price impact for the two divisions. Did you say that there are a reason for the big difference in price hike? Is this that you needed more in one of the divisions versus the other or why is such a big difference? Yeah, good question, Björn. It really does come back to the two different business models. Okay. Is more larger customers with framework agreements that ties us as to when we can actually push pricing and cost recovery through. Hydraulics is a far more fragmented business without framework agreements that allows us to move and adapt to price a little quicker. What you've seen within hydraulics is us recover because we're more able to cost within the market in the second quarter. There may be some more cost recovery that we need to do on engines as we move into quarter three. If we look at the net effect, I mean, you have a cost inflation, and you have price hikes. Is it fair to assume that maybe you are a little bit positive on the hydraulics side and still lagging or still negative on the engine side, or? Yeah, I think that's a fair way to look at it. I think as we move forward, we won't be giving guidance on where margin is likely to be in the third quarter. I think that is a fair assumption and an overall reflection of the margin in the group at the moment. Seems like where we're likely to trade. No clear guidance, but it's a fair assumption to say we're a little ahead on hydraulics, a little behind on engines at the moment. Okay. Thank you. Thank you. Thank you. The next question comes from the line of Mats Liss from Kepler Cheuvreux. Please go ahead. Yeah, hi. Well, just a couple of questions there. Looking at the profit and income statement there, I look at some of the lines and I guess the line other operating income and expenses are negative compared to last year. Is it sort of a, or could you explain what's in that number? Just give me one second, Mats. Which page are you looking at, Mats? Sorry. Page nine. It's the other operating income and expense. If that's the sort of trend going forward of the -SEK 12 million. No, no. Sorry. It's well, there's two things that we've got in there. We've obviously got the royalty income from the joint venture, which as we've touched on is a little lower because of the trading with Alfdex. But we've also got in there the amortization of EMP. So it's that that's the year-on-year change. Well, should expect it to be about around that level. Then on the tax line there, it's sort of boosted somewhat by the U.K. tax release of U.K. tax provisions. Is that sort of a one-off or should expect that to continue during the rest of the year? No, it's a one-off that was related to a tax issue in the U.K., but brought about by the EU. We've had a ruling now that excludes us from that particular ruling, therefore no tax risk, but we'd prudently put 100% provision away for it. We've released that in the second quarter, and it's a one-off. Okay, great. Yeah, that was my questions. Thank you. Super. Thanks, Mats. The next question comes from the line of Erik Golrang from SEB. Please go ahead. Yeah, thank you. I want to return to the topic of what you said there about the integration of EMP and the customer response to that. When do you think in time we could see sort of order intake materializing from that, where you either from the sales synergy perspective, where you mentioned selling the fans to European customers or the sort of combined offering system level. Then also attached to that on the e-product related order intake. I mean, you announce larger stuff that you receive. It's a bit lumpy between quarters. Second quarter, we didn't really see any activity or any larger announcements, at least. What are the dialogues with the customers currently? Is there a bit of a pause in the market now, or is it still full speed ahead? That's a good question, Erik. Thank you. First of all, we look at, if I understood correctly, when do we materialize the sales from the EMP products? Let me say, the additional products coming in. Yeah, you said you had promising discussions. Yeah. Promising discussions. These products go into electric commercial vehicles, which is a market that is slowly ramping up. There are a lot of development activities going on, a lot of prototype projects, design projects, but very few of those players are already in, let me call it serial mass production. Some of the newcomers are obviously right now struggling a little bit. It's difficult to predict when those volumes will be going up. Important is that we are on those vehicles from a design point of view, and when the volumes go up, actually we are specified into those vehicles. That's the first question. The volumes will go up with the utilization and the sales of electric vehicles and fuel cell vehicles in the market. Can you repeat your second question, please? No, it's just on sort of tracking your own announced order, large order activity on the electric side. No real announcements in the second quarter. Is that more of a timing factor or any indication of progress there slowing or market activity being lower or anything like that? No. There are ongoing activities, Erik. You refer to the announcement that we have been doing in Q1, right? Yes On major wins. Those wins are there, yeah. We do not always announce them, but there are ongoing activities across all parts of the business in new development orders and prototype orders, et cetera. It's always difficult to predict when those really convert into higher production volumes. We have an ongoing inflow of good activities for both Concentric electric products as well as EMP electric products. Thank you. The final question on the margin. A bit tricky to sort of sort out the balance between cost and pricing, the negative impact from integrating EMP and so on. If we sort of look at where Concentric was a year ago, we add in EMP at around 10% and then weight the two. Is that where you think you should be now if you were balanced in terms of cost pricing? Yeah. Hi, Erik, it's Marcus. Yeah, I think. Again, I don't want to be drawn too much on where the margin is likely to settle, but I think we kind of are where we are at the moment with bringing in EMP, where the market's trading. I think going forward into Q3, it's going to be around that sort of level that we're likely to see. We've got more work to do in some of the cost recoveries. Yeah, what we're reporting in the second quarter, I think is likely where we're going to be moving forward into the third. Thank you. Thanks, Erik. We have now follow-up questions from Julia Utbult from SEB. Please go ahead. Thank you. I would like to add a question on M&A. If we take a look on M&A, as far as I understood, you have an electric motor manufacturer highest on the M&A wish list, right? What does the M&A market for those look like? And if you acquire one, how can we expect it to increase the value of components per vehicle? Yeah. Hi, Julia. Yeah, we have. We continue to look for targets, whether it be on electrification or other interesting technologies that we've got. We are at the moment doing a piece of work around the electrification as to decide what we want to do on motor controller design and manufacture. Yes, it's on the wish list. I don't think there's too many targets that are out there at the moment. It's one of those pieces of work that we'll conclude later this year, take a decision of where we want to go. If we do decide to move ahead with that, then it'll be an activity for 2023. What are the opportunities to develop this in-house? Always an opportunity to develop in-house, whether we do more around the design of the motor controller rather than necessarily the manufacturer. We're exploring that at the moment. As I say, later in the year, we'll have a decision of which way we want to go. Yeah. Julia, if I may add here, to that question. It's not just about the technology. When we assess such a technology in terms of how does it fit into our future portfolio, it's always a question also about cost competitiveness, not just having the technology. Whether we do it in-house or we're kind of buying it from the outside is also determined by what kind of cost level do we need? How cost competitive do we have to be with that technology so that it makes sense within the strategic concept of the company. All right. Would it be possible to say, like, to what extent it would complete the full system, if you relate it to, for example, to EMP products that complete the full solution? Yeah. At this moment in time, it's too early to say. We're running different, obviously, consolidation activities across the two organizations post-merger. Which technology ultimately should be in-house, we're analyzing, and as Marcus has said, by the end of the year, we will have a better picture on in which direction we are moving as an organization. Too early to say. Okay, thank you. As a reminder, if you wish to register for a question, please press star and one on your telephone. We have now a follow-up from Björn Enarson from Danske Bank. Please go ahead. Yes. I have two questions, please. One is if it's possible to get the view. I mean, if you look at your order wins on the e-products and if you look at the OEM's plans that they do have, is it possible to have a view from your side if you are a little bit gaining share or with the e-products or is that too early to tell? Second question is just basically on FX impact on EBIT. Is that boosting margins or neutral or diluting margins in the quarter? Yeah. Mats, thank you for the questions. Martin here. I'm happy to take the first one. It's too early to tell on the electric products whether we're taking share or not. We think we're moving in the right direction, but we also have to see that the competitive landscape is most likely a different one to the one that we have been experiencing so far with our conventional products. But we're moving in the right direction. But again, too early to tell. Yeah. On the foreign exchange, I hand over to Marcus. Yeah. Yeah He was happy to take that question. Yeah. Thanks, Björn. Neutral is the answer. No real gain or loss. Something. Certainly nothing material. Okay, perfect. Thank you. Okay, thanks. Thanks. We have a follow-up from Mats Liss from Kepler Cheuvreux. Please go ahead. Yeah. I thank you. Two questions. First, I mean, electric product corresponded to some, what, 17% of sales, if I get it right. Would you say that you're ahead of the target of 20% 2025? I'll take that one. Yeah, we set the target of 20% pre the EMP acquisition. We always knew that with the size and the scale of EMP and how much electric product it had, it would give us a significant boost. I think it's fair to say we are ahead of the target at the end of or halfway through 2022. It will be a target that we will review as we go into our sort of strategic planning process at the end of this year and into next. We'll probably at a capital markets day update the target for the market. Okay, great. Well, just a question about working capital there. You mentioned that large part of the year-over-year increase there in working capital was due to EMP and they have a higher working capital procurement. Is that something sort of, well, that's difficult to change or do you expect to be able to implement a Concentric strategy or ways of handling the working capital going forward? I think it's one of those, Mats. We'll be looking at it, but the challenge that we have at the moment is more the disruption within the supply chain that we have. That's affecting both us and EMP. Before we can start to work on getting stocks down by any significant level, we need that supply chain to start to balance itself out. Only then will it allow us really to start to look at the efficiencies of stock. At the moment, we're just using stock to manage the system, holding in effect excess stock to give us confidence that we can manufacture to meet our customers near-term requirements. We're doing a good job of that, but it does require us to hold a little more stock than we'd normally be comfortable with. The answer is yes, it will be looked at, but probably not in the foreseeable future whilst we're experiencing these disruptions. The reason they have a high working capital exposure is that the mix there with the higher, well, exposure to engines. It is. It's their business model. They've got a higher stock holding, both in terms of raw material and an end product. It is an area, as I say, that we're going to look at. Before we can get into it, we need to be getting out of this short term disruption before we can make any meaningful change to it. Okay, great. Thanks. For any further questions, please press star and one on your telephone. There are no further questions. Super. Well, look, thank you for everybody for dialing into our Q2 2022 call. I hope those that are on holiday continue to enjoy their holidays and those that are going to get there, hope you have a great time. We will hopefully see you all again for the Q3, if not sooner. Wish you good rest of day and hopefully talk to you all soon. Thanks then. Same from my side, and thanks for a lot of good question and a good dialogue.