Good day, welcome to the Elanders AB Conference Call. Today's conference is recorded, and at this time, I'd like to turn the conference over to Magnus Nilsson, CEO of Elanders. Please go ahead, sir. Thank you. Hi, everyone. This is Magnus Nilsson. Together with me here is also Andréas Wikner, our CFO. I will now start my presentation, and I will now go directly to slide number 5 and talk about our performance in the Q1. The strong recovery from the second half of last year continued in the Q1, and we managed to form an EBITDA margin of 5.2% compared to 3.1% the year before. Which means that we achieved an EBITDA result that was 75% higher than last year, despite the negative effect on EBITDA of 11 million SEK because of a stronger Swedish krona. You could see a stable and good demand from almost all customer segments, our net sales grew organically with 16% in the Q1. The main drivers behind organic growth were mainly Supply Chain Solutions and our subscription box business in the USA. We continue to see a low demand from our retail customers because of different COVID-19 restrictions, but we managed to compensate, even overcompensate this with a high demand from different e-commerce channels. Print and Packaging are still negatively impacted by COVID-19 restrictions, but we managed to compensate low sales with higher margins because of cost cuts done in 2020. In the Q1, we also made an additional acquisition in the area of Renewed Tech of the Swedish company ReuseIT, and this will make Elanders one of the leading players in the Swedish market for this service. If we go to slide number six in the presentation. The shortage of semiconductors created some disturbance in production for some of our customers during the quarter, and it appears like these disturbances will continue during the Q2 as well. Some of our customers have indicated that it looks better in the Q3 and Q4. Elanders' existing credit facility agreement expires during the Q1 in 2022. Refinancing discussions are already underway with the intention of having a new agreement in place in the Q2 of 2021. We then go to slide 7, you can see that we continue to have a very strong financial position and our adjusted net debt EBITDA excluding IFRS 16 is now at 1.59 compared to 2.96 in 2019. Our net gearing is at 0.41 compared to 0.74 in 2019. If we then go to slide 8, look at our different business areas for the Q1, and you can see that Supply Chain Solutions managed to improve their EBITDA margin to 5.4% compared to 3%, and they actually improved their results with 91% compared to the year before. The improved results came mainly from our European part of Supply Chain Solutions as a result of the cost-saving program we did in 2019 and also our focusing on improving low-margin business. As mentioned before, Print & Packaging Solutions to increase their results despite negative effects on our sales because of COVID-19 and their EBITDA margin increased to 5.7% compared to 4.6%, and they actually improved their results with 25%. If we then go to slide 9, look at our customer segments in the quarter. You can see that automotive showed a better demand than the year before, even if some of our automotive customers was affected by the lack of semiconductors. The demand from our electronic customers continued to be very stable, and in Q1 2021, grew PC shipments worldwide with 13%, which had a positive effect on some of our customers. We also expect that the demand from electronics will continue to be stable going forward. If we then go to slide 10 and look at Fashion & Lifestyle, you can see that we had a very strong growth compared to last year because of the growth in subscription box fulfillment in the U.S. and also very strong growth in e-commerce that could overcompensate for the downturn in demand from retail. We expect that the actions done in different countries connected to COVID-19 will continue to put some pressure on retail sales, at least in the Q2 2021, but we expect to continue to compensate this with increased e-commerce volumes. Healthcare and life science had a stable demand in Q1, and we have managed to add some additional customers in this area, and we are actually launching a new site for this segment in the second half of 2021. If we go to slide number 11 and look at industrial. You can see that demand declined compared to the year before. The reason is partly because of lack of semiconductors and partly because of our focus on improving margins, which has resulted in that we have exited some low-margin projects in this area. If we go to slide number 12, look how things will be going forward. We are very happy to see that our strong recovery in the second half of 2020 continue in Q1, and that our actions taken in the end of 2019 continues to pay off and improve margins. We can also see that the market continues to normalize, and we have lots of interesting requests from both existing and new customers. We are also very pleased to see that we continue to grow within e-commerce for our Fashion & Lifestyle customers and our new site in North Germany is now up and running, which makes it possible for us to add even more e-commerce customers. Our strong financial position enable us to continue to do acquisitions, which is an important tool for us to both develop our services for our customers, and over time, to improve our margins. Main focus is on small and mid-size companies with a high added value, but also to grow in our area life-cycle management, where we take care of our customers' products' complete life cycle, which also aims to lower ours and our customers' carbon dioxide emissions. COVID-19 and the lack of semiconductors and the stronger SEK will continue to put some pressure on our sales in the South, but we are still very confident going forward based on the performance the last three quarters. That was everything from me, and now I'm opening up for questions. Ladies and gentlemen, if you would like to ask a question, you can do so now by pressing *1 on your telephones. That's *1 if you'd like to ask a question. We will now take our first question. Please go ahead, caller, your line is open. Good morning. It's Carl here from Nordea. A few questions from my side. You wrote the component issue is hampering the recovery somewhat. My question is, have you experienced a more challenging situation at the end of the quarter going into Q2, and would you say that the electronic side is more of a problem compared to automotive, or how should we look at that between the segments or sub-segments? Morning, Carl. No, actually, we have seen that take much more in automotive and industrial than in electronics. It looks like the majority of our electronics customers have secured semiconductors and still managed to deliver what they want to deliver. It was more in the automotive and industrial sector, and it was a bit more in the end of the Q1 in March, actually. There were some reductions in shifts, but it's really hard to predict in the Q2. We think that there will be some similar issues, but hopefully not bigger than the Q1, so we should be able to absorb it. Everyone tried to produce, but they go down in shifts, and they make some temporary closing and then open up again. Overall, automotive and industrial. Electronics, for the moment, it's not so impacted. Yeah. If we look at the whole automotive market, if we look at one or a few of your bigger customers, would you say that it's a positive thing or a negative thing to be working with a niche model such as S-Class and so on? Are they prioritized or not, or how should we look at that? Yeah, that's absolutely correct. I think we are lucky there that we work with the more exclusive models, and they have highest priority. If we have been working more with high volume, medium-class cars, we should be impacted much more. Both that we work with a higher grade and we also have some other customers that they are really high-end cars, and there we have seen very small impact. They have managed to prioritize. We have also seen a few new, or at least one of them, a new model launch. Is it already in the numbers? I am thinking about the new S-Class, for instance, or is it still to be seen later on in 2021? A new model launch, I guess it's at least in the beginning, a positive impact. I think S-Class is actually in the ramp-up phase. I think it was running very high volumes in the end of the Q1. We expect the S-Class will go very strong, I think even rest of the year. It's a very important model for Daimler, and I think they will prioritize it very high. Okay, perfect. Maybe you touched upon it, we saw sales contraction from electronics in Q1 in absolute numbers at least. How should we look at the growth possibilities for this segment in the coming quarters? As As you said you had some tailwind from the work from home trend and the forced digitalization, especially if we adjust for the buy and sell volumes. What should we expect here coming quarters? I think there was also a currency effect, Andréas, when you compare. Partly, yes. Partly. I think we are not maybe even slightly higher than last year. I don't know. We still have some buy and sell deal in Q1 last year that disappeared in Q2. I think going forward, electronics should be rather similar to last year, and hard to predict it if it will go even higher, but I think it looks stable. I think it will be at least on the same level or even up. There is some seasonality also in the numbers if you look at the last quarter and comparing that to the Q1. It's better to compare it to the Q1 2020, because then you have also the seasonality effect with it. Yeah, sales was SEK 733 million, and it was SEK 729 this Q1, and then you have the currency effect. It was actually higher than in Q1 this year. Okay, perfect. The final one from my side is a little bit on M&A. You have done two acquisitions in fairly short time. Your balance sheet is on par with the pre-LGI levels. Could you elaborate a bit on your ambitions in terms of acquired sales in% or in absolute numbers over time, at least? How many companies do you have on your short list? This, I think you said it, but you are primarily focusing on life cycle services, I guess, or do you look even into acquiring more automotive or electronics volumes as well, or how should we see the M&A side? I think when it comes to life cycle management, we are maybe looking at small and mid-size. There could be, of course, a bigger one. If you are around the small and mid-size, I think we have a capacity, with our cash flow and everything, to do at least acquisitions of SEK 200 million to 300 million per year. We can do an acquisition of around SEK 50 million per quarter, roughly. Then, of course, there could still be some bigger opportunities come around the corner, both in life cycle services. Another area that we are looking more closely into is actually the fashion and lifestyle. We have a very strong growth in that area in Europe. We are adding lots of new customers, and could be a benefit for us to find a bit of a similar business in North Americas, for example, or in Asia. I don't think we will do any bigger acquisitions in the automotive and industrial area. We are pretty happy where we are in that area, and that's where it is. Okay. basically a bolt-on to ITG then, I guess. Yeah. Okay, perfect. Okay. Thank you. Thank you. Thank you. We will now take our next question. Please go ahead, caller. Your line is open. Hello. Stefan Aleksander from SEB. Morning. Morning. First of all, regarding Print side, how would you define the competitive landscape right now? You obviously have a strong performance. Where do you see your competitors, and could this also be perhaps an area when it comes to M&A? Where is that out of question? I think when it comes to the print side, I think actually we are one of the winners there when it comes to the COVID-19 situation last year that was pushing down print volumes. I think we talk about numbers of 20% down in the market last year. I think because of our unique solutions that we work both with, also with industrial and automotive clients, our global presence, and also that we have a good growth in online printing, both with our own solutions and as a supplier. I think our position is even better now than last year, and so even if we lose a bit in sales, we continue to improve our margin. We could also see now in RFQs, coming now that we have a very strong position. Our competitors are very weak, so this looks very promising. Normally we don't do any acquisitions in the print side. Of course, if it comes a very specialized company that fits well to develop our service when it comes to digital print or online print and things like that, we are open even to do acquisitions in that area. Right. Another question on shipping capacity globally. You have a lot of exposure to e-commerce, and obviously that is continuing to be very strong. Do you see among your customers any constraints when it comes to shipping capacity in the global e-commerce landscape? No, we haven't seen it so much, not at least in the fashion side. It's like they have managed to get their volumes to Europe, and as soon as it's in Europe, there is no lack of capacity to ship it inside Europe. We also ship a lot to U.S. for our customers, and we have managed it. The only thing that happened is that it drives turnover because the cost goes up, but we can push that cost to our customers. We do mainly last-mile services, and it still works fine there. We had some problems in the U.S. last year with capacity for last mile service, but it's more stable now. Okay. Thank you. Thank you. Thank you. We will now take our next question. Please go ahead, caller. Your line is now open. Yes, hello. This is Thomas Nelson from Analyst Guidance. I just wanted to hear a bit about the LGI segment in Germany. For you to achieve your long-term margin goals, taking out more costs in LGI is an important step. Could you talk a bit about how this is proceeding, LGI in Germany? Thank you. Thank you. I think it's going forward in a very good way. Like we say in our report, the European Supply Chain Solutions, that was a big part of driving the improved results compared to last year and also the increased margin. We're really happy with the actions we have taken there, and we're working very actively to improve step by step. It goes like planned, and of course, we have some with longer agreements that we are still working with. Some contracts will run out this year, and we have some contracts running into 2022. Everything is moving according to plan, even slightly better. It looks very good. Thank you. Thank you. As a reminder, if you'd like to ask a question, please do so now by pressing *1 on your telephone. There are currently no questions in the queue at this time. Okay. I think we close the conference call and thanks to everyone for calling in. Thank you. Ladies and gentlemen, that will conclude today's conference, and you may now all disconnect.