Good day and thank you for standing by. Welcome to the Concentric presentation of the results for first quarter 2024. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be the question-and-answer session. To ask a question during the session, you need to press star one one on your telephone keypad. You will not hear an automated message advising your hand is raised. To withdraw a question, please press star one one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to our speaker today, Martin Kunz. Please go ahead. Thank you very much. Good morning, everybody. Very warm welcome to our Q1 presentation. I welcome everybody here in Stockholm who is physically present in the room, but also everybody out there on the web and in the conference call room. I'm here in Stockholm with Marcus Whitehouse, our CFO, and we will guide you through our Q1 performance. I would like to start, first of all, as usual, with sales. Sales came in at just over SEK 1 billion. That was 11% less than the comparable quarter last year. However, it has been a significant improvement over the fourth quarter 2023. We have seen during the quarter diminishing of customer destocking activities, and we can say that our customer demand has, compared to previous quarters, stabilized. The sales of our e-products remain strong. So, we achieved SEK 244 million in electric sales, which corresponds to 24% of our total group sales. The book-to-bill ratio in the quarter was 92%, and our operating income was SEK 137 million, resulting in an operating margin of 13.7%, which is a significant improvement quarter-over-quarter. Cash flow from operations was SEK 43 million, a bit weaker than normally, but this is usual in the first quarter, and Marcus will guide you later on through a few more details on that. So with that, I move over to an update on our strategic execution, and we thought it was worth looking at the last eight quarters at our electric sales, how they have evolved since actually beginning of 2023. So when we look at electric sales today, the 24% in the first quarter has been a very, very strong result. But when you look at the evolution of electric sales, it has been constantly increased over the last eight quarters. That means that the underlying percentage growth in electric sales isn't just due to the normalization in our base business. It's also supported by a steady absolute growth in our electric sales numbers over the past eight reporting quarters, which means we're executing well on our electrification strategy in a difficult market environment. There were a few more highlights in the first quarter regarding how we drive and execute our strategic agenda. As you all know, India is one of our five growth pillars, and in India, obviously, right now, it's a growing economy, steadily growing. The latest outlook means that latest by 2028, if not 2027 already, India will become the third-largest economy in the world. The stable situation from a political side is a solid foundation for investment in this country. And on top of that, we have legislation on emission reduction, which drives innovative and efficient engineered solutions. So we have been in India for almost 30 years with a manufacturing, engineering, and sales presence, but we are now undertaking a significant investment for growth in our Indian facility. And I'm very proud of what our team has achieved in the first quarter. So, we supplied our first on-highway mechanical water pump to an Indian domestic truck supplier, and that is actually a first testimonial of our sales growth in India. This was a business that was born in 2022 and also communicated in public. So, that's the pump, by the way, that I'm holding in my hand and the photo for the engineers. It's a very well-designed, very nice product that we are very proud of, to provide to that customer. And by the way, this customer with this specific pump only will reach 0.5% fuel efficiency just by using our pump versus the pump of a previous local competitor. So as a part of our growth strategy, our sales and engineering teams are actively pursuing new business opportunities for both electric as well as mechanical products in the growing Indian market. Another highlight staying with strategy execution in the first quarter has been the increase in our cooling solution manufacturing capacity in our Escanaba facilities. Those of you remember a bit of history. That facility came to Concentric through the acquisition of EMP back in late 2021. And Concentric is at the forefront of innovative high-voltage cooling solutions for electric commercial vehicles. The launch of our high-voltage fans that was a product actually we brought to the market in 2023 has been supported by one of the largest investments in the history of the company. And the picture you see there is actually the new assembly and testing line for high-voltage products in Escanaba. Now, let's see how that translates to success in the market. The photo on the lower right is actually a complete cooling system, high-voltage cooling system that we are supplying to a heavy-duty manufacturer of trucks or a manufacturer of heavy-duty trucks in the U.S. market. And it is a testimonial of the capability that Concentric has in combining several of our products, and our engineering and development services, to provide a complete cooling solution to a manufacturer of heavy-duty fuel cell trucks. We also have seen in the first quarter a consistently high number of prototypes that were shipped. And this is a testament to customer's high interest in our innovative high-voltage solutions. With that, I hand over to Marcus, who will walk us through the Q1 financials in detail. Marcus, please. Super. Thank you, Martin. I'll just come over here. Good morning, everybody. Welcome to the Q1 2024 financial results section. Yeah, much better performance results this quarter, both on sales and operating income, but we'll start on the sales. As Martin has already touched upon, our sales came in just over SEK 1 billion, so reported at SEK 1,003 million, but down 11% year-over-year, but up on the fourth quarter we reported some time ago. Limited impact from FX as well within this quarter. But we continue to be affected by a generally weaker market across all of our geographical regions and across most of our end-market applications. We can see that within the two divisions that we report at. So engines is down 10% year-over-year, and hydraulics is down 13% year-over-year. The graphic then, below just shows how that impacts on the bridge, our sales bridge, going from SEK 1,127 million-SEK 1,003 million. 7% of that drop is due to engines, and 5% of that drop is due to hydraulics with limited impact on FX. When we move on to the operating income, we're reporting SEK 1,377 million and an operating margin of 13.7%. The quarter-on-quarter, though, is better, and that's down to the cost actions that we took in quarters three and quarters four and a little bit of sales volume gain in the first quarter. Some of that action, as we'll see later, is in our hydraulics division, both on sales and cost action. But the bridge below, again, shows that walk, year-over-year, quarter one 2023 to quarter one 2024. Engines impacted by 36, hydraulics impacted by 8, and we'll touch on the detail of that as we work through the presentation. I thought it was worthwhile just putting this one in for the group. We don't normally, but it does show you what happened as we went through 2023, particularly on that top graph on the bar chart, which is the, sales. And we watched our sales ebb away over the, the quarters, during 2023, and it's encouraging to see a little bit of a bounce in this first quarter of 2024, albeit one swallow does not make a summer. The bar below is the operating income. And again, those drop in sales particularly had an impact on our absolute levels of operating income and also the margins in quarters three and quarters four. Again, it feels like we've turned a corner with a cost action taken in the third and fourth, as we've seen the absolute operating income increase to SEK 137 million and the margin up to 13.7%. Book-to-bill ratio, however, does remain below 92%, and it's below the 100% at 92%, and it's been below 100% now for six reporting quarters. As we move into our two divisions and engines first, we've already touched on the underlying sales year-over-year down 10%. That pretty much flat, up slightly, but pretty much flat to the level that we reported at for quarter four. Book-to-bill ratio, again, is around the 94%, has been down below the 100% for the three reporting quarters. Operating income and margins are almost flat as well to the fourth quarter. However, when we look at the operating margin year-over-year, we're off by about 3.4%. Some of that is to do with Alfdex and an underperformance in the first quarter, particularly in China. But also, we've got some higher operational costs, particularly resourcing electrical components. When we move on to hydraulics, really pleasing with hydraulics this, this quarter. Year-over-year, the sales are still down 13%, but again, the quarter-on-quarter movement shows the performance has picked up in the first quarter of 2024. Book-to-bill ratio 91%, and again, like group, has been below the 100% for six quarters now. Operating income and the underlying operating margin, SEK 48 million and 14.8%. And it's that bottom graph that really is evident as to the turn that we've got in the first quarter as we see the operating income pick up from the fourth quarter and the margin. More pleasing, the margin at 14.8% is almost in line with the margins that we were seeing, back in quarter one of 2023. Cash flow, working capital, and gearing. Martin touched on this right at the start. That top left graphic, and in particular, the bar chart, shows our operating cash flow, per share. And you can see with the dark blue bars, the quarter ones, over that, that period. And it shows the level of cyclicality that we have within cash in this business, particularly as the business winds down at the back end of the fourth quarter with December and the Christmas season, and then the wind up of the business in the, the first quarter. That means this quarter we've seen operating cash flow of SEK 43 million. It is only a conversion of 29% of profit to cash on the low side. We have been impacted this quarter by a working capital increase, particularly in inventory, but also with some of our AR balances where customers have rolled over payments into April. But the working capital, which is that top chart and the line, has normalized. We're at about 10.8% at the end of the first quarter, half a percentage point better than this time last year, which is pleasing, and it's probably at a little higher end of where we would like it to be, but we still have work to do to correct the inventory levels. That said, our net debt, gearing, and cash, it has dropped year-over-year in terms of net debt. We're at SEK 698 million, down from SEK 865 million this time last year. As to our gearing, now reporting at 30%, down from 39% this time last year. And the important measure of net debt to EBITDA is at 0.94, meaning we have plenty of debt capacity to support any of our strategic initiatives. For those that were following, we announced back in July last year we would conduct an own-share buyback program over three quarters, three, four, and one. And we've continued that and bought SEK 44 million of shares in this first quarter, taking the total to SEK 144 million over the program, almost close to the cap of SEK 150 million that we, we announced. We also took the opportunity in the first quarter to pay down some debt, paid off $15 million or SEK 155 million off our RCF balance, meaning our cash and cash equivalents came in at the end of the quarter at SEK 515 million, more than sufficient to support our operational needs in the coming quarters. With that, I will hand you back to Martin to take us through the outlook. Thanks, Marcus. So when we look into the following quarter, we estimate that our end markets will be weaker during 2024 compared to 2023. I think the market indices are out there. There's really no doubt about that. We expect the net sales in the next quarter to be broadly similar to the net sales we have reported in the first quarter of 2024. And as Marcus has highlighted in when he spoke about hydraulics, which I think was an important inflection point we achieved in the first quarter, we continue to monitor our cost base very closely in line with how our top line will develop and obviously put actions in place as necessary to keep our strong financial performance. However, we see that the high interest in e-products from our customers is a positive trend that will also continue in the next quarter. Obviously, as I highlighted in the strategy session of the presentation, regardless of what the market does, we will react to it. In parallel, we will continue to drive really strongly our strategic agenda in terms of growth, investment, and all the other pillars of our growth strategy. With that, I think we're at the end of the presentation and more than happy to take questions. As usual, we start here, in the room in Stockholm. Once I think we covered all the questions here, we're moving out to the audience, in the web or in the audio outside. Please, questions. I think, Björn, you were faster than Mats this time. I just have some questions on the e-products and if it's possible to get some more color on what is driving what. If you can talk a little bit about the new markets in terms of maybe millions in the quarter or something like that. Yeah. So I think we have a very steady sale of our advanced products in the U.S. So that really is absolutely steadily growing. And there, as you well remember, we are in the bus segment. We are in other segments. So we continue to enjoy a very stable demand in that part. But we have also had, in the first quarter, very good sales in actually our energy storage section. We announced, as you well remember, at the end of January, our first win in data centers. That is obviously not yet contributing because that business has to be ramped up from a product, customer relation and product launch perspective. So those are the two main drivers for, I think, the steady development in of electric products in the first quarter. We also had good sales on our electro-hydraulic steering, and some other products. But I think those are the two main drivers that helped us to get to that level in Q1. Energy storage is, I think you mentioned it's like 2% of sales, or? Yeah, 2% is the number that we disclosed in for the full year, 2023. So obviously, we're not talking about that on a quarterly basis. No? It has been, let me say, a good contributor in the first quarter. Thank you. Yeah, Mats Liss, Kepler, [audio distortion] raised a couple of questions, follow-ups, I guess, on Björn's input there also. But, in the order back order intake in the first quarter there, could you say something about volume price and maybe also if e-products are sort of growing in importance there going forward? It sounds like that, but I guess it's, Yes. I mean, we're seeing consistent order intake for e-products in the first quarter, which also, let me say, allows us to make the conclusion for the second quarter that we continue e-products; we see them as to continue strong in sales. The 24%, the mix, well, sales contribution in the first quarter, it could be expected to improve in the second, I guess, then? That's a bit far to say, but let me say it was a good quarter in sales and in order intake. So, let me say we want to continue that trend also in the second quarter. And also one sort of calendar question. I mean, the Easter impact, have you seen any, anything, about that? I mean, it was a first quarter event this year. It was a bit between first quarter and second quarter. If you look back, Easter has actually been at the end of March. So we had a bit of Easter in the first quarter. We had a bit of Easter in the second quarter, but probably not an impact. It came back to Mats. Yeah. Okay. Thank you. Yeah. Thanks, Mats. Julia Utbult with SEB. Thank you for the presentation and for taking my questions. Firstly, a follow-up on your presentation. I think you mentioned you had higher sourcing costs from electrical products. Can you give us more color on that, please? Yeah. I'm happy to take that question. So that is a temporary impact that we had in the first quarter. It had to do with the ramp-up of our high-voltage products in the U.S. As you well remember, we launched the high-voltage products in 2023. And at the same time, actually, the system that I showed in one of the strategy slides is actually fully high-voltage. So everything on that system, the fans, are high-voltage. And we had a few supply bottlenecks that we had to work through in the first quarter where in 2023 we incurred higher purchasing costs that obviously, when they were consumed in the first quarter, translated to higher material costs. But we see this as a temporary issue that first of all we have worked around it, so it doesn't impact our manufacturing. From a cost point of view, it will be phased out over the next quarter or so. These were pretty much very, very specific products where we had bottlenecks in the market. We had bottlenecks with supplier, and we have worked around that by working with those suppliers or where we could. Also in one occasion, we have actually implemented a second source for risk mitigation and capacity increase. So would you say that this problem is solved as of now? It is solved, yeah, but it will still have a bit of an impact, most likely into the coming quarter. But, the problem is solved. It's a temporary issue. Thank you. And then a follow-up on Björn's question there on electric products. And I'm curious how the dialogues are going within data center. Are you approaching customers yourself? Are they approaching you? More color on that would be interesting. Yeah. As usual, we don't speak about that because we have non-disclosure agreements with our customers. But we can say that we are progressing with the collaboration with the first customer that is actually that we have been nominated in the first quarter. So that project is going really to plan, yeah? And obviously, there is a high interest in that market. It's a growing market, and we're also talking to others. Perfect. Thank you. And then, a final question on the margins, both in engines and hydraulics. You had a large, margin improvement there in hydraulics. Would you say it's mainly due to volume and the cost reductions or also mix in, in that number? No, it's not. It's, in hydraulics, it is cost reductions and volumes. The mix doesn't have a great impact. So it's the actions that have been taken that have restored the margin in that first quarter. We didn't really see the same improvement in engines yet. Are there still positive impacts from the cost reductions to come there, or how are you perceiving? I mean, the cost reductions have been done have been taken consistently across the divisions. But in engines, I think we, we have a bit of a different situation. If you remember, in our, let me say Q4 session, hydraulics has taken the hit earlier, yeah? So I think, engines still has a bit of adjusting to the market. But then we had some, some other issues that had an impact on the margin. And one of them was the, the temporarily increased sourcing cost. We would have seen if we'd had the like-for-like on performance and Alfdex, we would have seen a bounce on the margin. It would have improved quarter-on-quarter. The fact we've got a headwind on some of the costs for electrical components, and we've got headwind on Alfdex masks, what we've got in terms of the cost savings within that division. Okay. Perfect. That also makes sense. Okay. Super. Okay. Any further questions here in the room in Stockholm? That doesn't seem to be the case. So Emma, with that, I think we're opening up for questions from the audience online. Thank you, dear participants. If you would like to ask a question, please press star one one on your telephone keypad and wait for a name to be announced. To withdraw a question, please press star one one again. Once again, if you wish to ask a question, please press star one one on your telephone keypad. Dear speakers, there are no questions over the phone. Mats? Yeah. We have one more question here in Stockholm in the room. Mats, please. Yeah? Yeah. Mats, you maybe a sort of a more long-term question there. I mean, in energy storage and, and data centers, you have a lot of opportunities, I guess. But could you say something there about the tenders out there and, what could be expected during the year in terms of larger orders or, or opportunities? Yeah. As usual, I think, as you understand, we cannot go into details because we have nondisclosure agreements with all our customers. I can only say that we're actively pursuing new opportunities in these markets and also some of the other new markets that we have called out, let me say last time, in, for example, truck electrification, but also power generation. And we're also looking at potential new markets that we haven't covered that go beyond those four where we already have either successful supply or prototype activities. So I think it's a broad approach that goes well beyond those two markets into two others that we have already made inroads. And then we're permanently looking at new markets. And I think you're touching on a good point, Mats. We are at a point where, coming from commercial vehicles, which actually has been our home and is still our home for many years, yeah? We are transferring the liquid cooling theme, the thermal management theme, into other industries. But it's always with existing products. So, we're not trying to learn product and market at the same time. And this is, I think, a strategic initiative that we repeatedly also communicate as one of the big growth areas. So you can count with activities both in those two plus the other two new end markets, but we're also looking permanently at expanding into other end markets where existing product might be applied for a liquid cooling or thermal management application. Okay. Thank you. And our teams are very active, I can tell you. Any more questions? Yeah, Björn? Well, if you can, I mean, you highlighted India, startup production, etc. Yeah. You had some good presentation at your CMD last year. But if you can remind us of your growth prospects or your targets for that market and how important it could be for you. Yeah. I think, if we look back a bit at the history of India, it has traditionally been a water pump manufacturing site for many years where water pumps were manufactured both for the domestic market, for our international customers, but also for our, let me say, Western customers. So we have broadened that approach with the India strategy. So first of all, we're now actively pursuing also important Indian domestic customers. And we have been showing with that business win, back in 2022, which is now being launched, that we're successful on that. But we're also targeting electric products, which we have confirmed with that electric product win, I think, was back in November last year that was also press released. Yeah. So I think, Björn, to your point, we're really going broad in India. But we go broad on a very focused market where we, with what we stand for as Concentric, good quality, good engineering, and products that give the customer a better performance, actually can also get, let me say, the margins we want to have strategically. So I think that pretty much covers what we do in India. It's, again, we're not going everywhere. We're looking specifically in the mechanical part, first and foremost, on products that support the legislation in India for emission reductions with higher-performing products to what the competitors offer. And then in parallel to that, it's the whole electric avenue that we are pursuing initially with this pump award that we received in November last year, but also with other electric products as opportunities come up. And we are really targeting the big players now in the Indian market, on a long-term, consistent basis. Does that answer your question? Yes. Yeah. Basically, that the customers are maturing or, Yeah. Yeah. Need better equipment. We're not going after low-cost commodity stuff in India. That's not the market that we as Concentric stand for. We want to provide high-quality engineered products, added value to our customers through our engineering capabilities combined with, obviously, the local manufacturing capabilities that we have in this growing market. Thank you. Julia? Thank you very much. A follow-up on the Indian market there. Are you also having dialogues with the customers in India regarding electric products, or you talk? Yes. Yes. Yes. Okay. And we have already, responding to Björn's question, we have already won a significant business award in November last year with actually a very important commercial or let me say on-highway customer in India. And that product will go into multiple platforms for both truck and bus. And those platforms will be both battery electric as well as fuel cell electric. Okay. Thank you for the clarification. Would you say that the Indian election is playing any role in this? The Indian election, if you look back at when our elections in India has a short-term impact, so whenever India is electing, there's a bit of dip in the sales. We are seeing that right now, overall in the economy. But I think it's a dip of a few months, and then I think they will go back to the growth path that will get them to become the third-largest economy in the world. I was also thinking about potential legislation that could impact either way for your components. I think, Marcus, you want to speak about the Bharat things that we are following there? Yeah. We know India follows what happens in Europe, just a little bit delayed. It will come as the Euro 7, the next Bharat, comes into India. And that's why it was so important for us to win that on-highway piece of business. We needed to have a product on highway in trucks. But we also can see the development of trucks, medium-duty at the moment, but they're not what they were 10 years ago. They are behind Europe now, but they are developing. And it's that need to have a higher-quality product for that market, the need to meet the next level of emission standards. That means we and that's where our product now starts to come into it, Concentric's, offering a higher-grade product, better fuel efficiency. That's why it's starting to pull our product into that market. While it was where it was before, didn't interest, low-grade, low efficiency, couldn't compete on price. But as that product develops, so too does the opportunity for Concentric to sell. And we talked about the electric pump. Again, we wanted to be on highway. Why? Because we know ultimately, as time goes on, we'll flip from some form of mechanical pump to more electric pumps. Being engaged with those customers now, selling them an on-highway mechanical pump, will lead to those conversations where we can talk about our electric pumps in times to come. We've won one. We didn't expect it to come in that quickly. But that was part of that plan as to move and develop with that market as it develops in the coming years. Yeah. Okay. Combining actually your question with what Björn is asking on the long term, actually, we invest right now in India because we're preparing that factory for not just a quarter or two or even a year, yeah? We're really looking at where this market will be in five years from here. And we're putting the infrastructure in place. We're remodeling the factory. You know, we're changing the material flow. We're putting also, let me say, capable people in the leadership team to strengthen our local team. That's all part of the big plan for India to take our fair share in this growing market. In the segments, obviously, we know how to play and where we want to play. Okay. Thank you. Super. Mats? Well, just a sort of question about the competitive situation there in e-products. I mean, you paint a very promising outlook there. And, have you also seen that others are sort of trying to get a fair share of the market in your segment, or? Yeah. Absolutely. I mean, it would be, let me say, unintelligent to believe that competitors are not active. So we're seeing competitor activities across the board. But it's the same as in the mechanical world. I mean, you know you have to know where your sweet spot are. You have to know where your strengths are. And then I think you can find the right market segments to continue your growth journey. But we're not without competition. I mean, there are players out there that obviously want to get into those different markets, where obviously, ultimately, we have to improve our products. We have to be cost-competitive. But we also have to be to get this, let me say, Concentric thing across to the customers that things that we can provide better than our competitors. That has traditionally always been around being close to the customer in terms of engineering and helping to find the right solution. Okay. Thank you. I guess then we have this, in-between, regulation coming up, US27 or whatever it's called and the Euro potential Euro 7, I guess, still. Yeah. What sort of impact do you expect to see from those regulations? I think we will see a positive impact. And that goes back to the big picture, yeah? When we look at right now, and this is all public information, that Euro 7 will either drive, let me say, the manufacturing sales of electric vehicles or making existing internal combustion engine products more, let me say, more efficient, yeah? And Marcus, if you want to probably allude on that, that actually we're seeing some of that right now happening, right? Yeah. We are and we've touched on it before. We're starting to see some of the engineers in some of these truck OEMs start to swing back to either mechanical solutions or other solutions to reduce fuel emissions and to meet targets they've got set for the end of 2030. So whether it be through legislation, Euro 7 when it gets set or EP27 that will kick in in March 2028, might be wrong, but that they will drive, as they always have done, innovation within the truck and truck industry, which will only mean one thing. There'll be some form of innovation that will come back down to the suppliers of components onto those products. But as I say, two years ago, very few seemed to be working on anything mechanical. That's changed again now. We're starting to see that they're innovating, looking for alternatives to reduce fuel and emissions to hit those 2030 targets. Mats, I think the answer to that is engineering, innovation, and engineering. And that, again, will strengthen our strategy to say, yes, the base business is very much alive, and there are good growth opportunities also in that base business. In parallel, obviously, we're driving electrification. Thank you. Thank you. One last, to your comments there on, that the engineers are swinging back a little bit, versus two years ago. So, basically, prolonging the base by the ICE business for another cycle, I guess. Could well be. Could well be. I mean, we've talked about this many times. The pace at which electrification was perceived to be going a few years ago isn't the reality of how quickly it's going today. And I think we're starting to see that within the OEMs, which means and why we've said the electrification is strategically important for the next 10, 20 years to come. The base business, our today's business, remains critical to us as well because it's got more life in it than what we perceived to have a few years ago, and we're still, you know, passionate about mechanical pumps, water and oil, and the technology that they bring because they will serve these markets for many, many years to come. Thank you. Okay. Should we go back and look whether there are any questions in the audience out there? Yeah. Speakers are on there for the questions over the phones. No questions? No. Okay. I think, with that, we come to the end of our Q1 presentation. I think it has been a very interactive session today. Thanks for being here. Thanks for joining also out there wherever you are in the world. I think, thanks in particular for a lot of good and constructive questions to our Q1 results. With that, I would like to close off the session and, most likely, as usual, talk to all of you in a couple of months from here. Thank you very much. Have a great day. Bye-bye. Thanks, all. Bye-bye. Thank you. This concludes our conference for today. Thank you for your participation. You may now all disconnect. Have a nice day.