Good day, and welcome to the Elanders AB conference call. At this time, I would like to turn the conference to Magnus Nilsson. Please go ahead. Thank you. Welcome, everyone. This is Magnus Nilsson, CEO of Elanders, and together with me is also Andréas Wikner, our CFO. I will now go directly to slide number five in our presentation and talk about our performance in the first quarter. The strong recovery from the second half of last year continued in the second quarter, and we managed to perform an EBITDA margin of 5.2% compared to 2.8% the year before. Which means that we managed to double our results despite the negative effect on EBITDA of SEK 11 million because of the stronger Swedish krona. We could see a solid demand from almost all our customer segments, but the shortage of semiconductors continued to create some disturbance in production for some of our customers. These disturbances resulted in cancel and change shift patterns with very short notice, which makes it hard for us to adjust our capacity and cost structure. The growth came mainly from our business area, Supply Chain Solutions, and also the subscription box business in U.S. that continues to grow. In the beginning of July, we made an acquisition of the German print company, Schätzl, to strengthen our offering online print, which is one of few areas in print that can show yearly growth. Together with Schätzl, will allow us to be one of the leading suppliers in Europe when it comes to online print. If we then go to slide number six. During the second quarter, we also renewed a very important print contract. The new contract is valid for five years with a yearly sales value of around SEK 150 million-SEK 200 million. The new contract also includes other services than print, like sourcing and supply chain services. Compared to the old one, this means that we have doubled the turnover per year. The refinancing of the group is now in place. The new contract is valid for three years with potential to prolong it for two more years. The new agreement have better terms compared to the old one, which will lower our financial cost and also give us more flexibility when it, for example, comes to acquisitions. If we then go to slide seven, then you can see that we continue to have a very strong financial position, and our adjusted net debt EBITDA exclusive IFRS 16 is now at 1.5. If we go to slide number eight and look at our two different business areas, then you can see that Supply Chain Solutions managed to improve their EBITDA margin to 5.9% compared to 4% the last year, and they actually improved their results with 43%. The improved margin came mainly from our European part of Supply Chain Solutions as a result of the cost-saving program we did in 2019. We had an organic growth in the quarter of 4%, and that was despite that the last year had a positive effect on sales of around $45 million because of delivery of personal protective equipment to hospitals. If we now look at Print & Packaging Solutions, we can also see that they had a very strong recovery because they were very affected by COVID-19 last year. They reached an EBITDA margin of 4.4% compared to -1.5% the year before, and they had an organic growth of 10%. If we go to slide number nine, look at our sales by customer segments in the quarter. If you look at automotive, the sales of automotive last year were very heavily affected by COVID-19, and we could show a strong recovery with organic growth of more than 70%. Unfortunately, are they still affected by the lack of semiconductors, which I mentioned before, affects our efficiency negatively and creates some additional costs. Our customers expect it to continue in the second half of the year. If we look at electronics, we could see that the demand from our electronic customers continued to be rather strong during the whole COVID-19 crisis. It also showed some slight decrease in the second quarter because for some, shortage of semiconductors also affected their manufacturing capacity negatively. We managed to compensate their lower production volumes by growing other services like rework and service of their products, which actually resulted in organic sales in line with last year. If we go to slide number 10 and look at fashion and lifestyle, you can see that we continue to show a very strong growth in this area, and our organic growth in the quarter was actually over 30% compared to last year. In the 2nd quarter was the biggest part of the growth coming from our activities in Europe. The reasons for the growth was continued strong demand for e-commerce deliveries, but also the reopening of shops in Europe. We also continue to see a growth in our subscription box fulfillment business in the U.S. If we look at healthcare and life science, they had a huge increase in sales last year because of the deal regarding personal protective equipment deliveries that had a positive effect on sales with $45 million last year. Underlying demand continues to look very good. We acquired some new interesting customer projects that will start later this year. We go to slide number 11 and look at industrial. We can see that sales recovered compared to last year. We had organic growth of around 20%. Some of our customers in this area are also affected by the lack of semiconductors, but it has a very low negative impact on the service we are doing. If we go to slide number 12 and look at how things will be going forward. We are very happy to see that our strong recovery in the second half of 2020 continued in the second quarter. We can also see that the market continues to normalize, and we have lots of interesting requests from both existing and new customers. We have managed to gain several interesting new customers in the last six months. We are also very pleased to see that we continue to grow within e-commerce services for both existing and new customers in fashion and lifestyle. We can also see that our global footprint is a strong enabler to gain new customers. This is the reason why we have managed to get in three new Scandinavian brands as customers just in the second quarter. The reason is that they're growing rapidly outside Scandinavia, and they need a partner that can support them globally. Our strong financial position, together with our new financing agreement, enable us to continue the acquisitions. We have, the last nine months, already made three acquisitions that support our growth in both lifecycle management and online print. COVID-19 and the lack of semiconductors and a strong Swedish krona continues to put some pressure on our sales and results, which will continue in the second half of the year. Okay. That was my presentation, and now we are opening up for questions. Thank you. If you would like to ask a question, please press star one on your telephone keypad. Please ensure the mute function on your phone is switched off to allow your signal to reach our equipment. A voice prompt on your phone line will indicate when your line is open. Again, please press star one to ask a question. We now move to the first question. Please go ahead. Your line is open. Hi, it's Carl here from Nordea. A couple of questions on my side. First, if you could give us an update on the semiconductor issue by segment, and if you expect Q3 to have a greater impact compared with Q2. Let's start with that. Hi, Carl. I think when it comes to the semiconductor, it's mainly our area automotive that is affected, and it doesn't affect sales so much. It's more about that our production is going very up and down, with very short notice. Some of our customers maybe take away a shift, and then they add a shift the next week after. It puts some pressure on our margin in that business area. I think for the moment, in other areas like electronics, we have managed to balance it with other services as well. It hasn't been so hard for us to handle this lack of semiconductors. Going forward, I must say it's really hard to predict if it will be in the same level or if it will be more serious. The only information we get from our customers is that they think there will be some pressure also the second half of the year. It's really hard. Hopefully for us, if it's on the same level, we should be able to balance it in a pretty good way. Of course, if it should be a more serious lack of it, who knows? I don't know. Yeah, exactly. No drama here in the short term, at least. No, there's no drama indication. Yeah. It's just an ongoing headache, I think, for our customers then. Yeah. Also, with the reopening of societies, people are gradually returning to offices. How do you expect it to impact the electronic business? What we can hear from our customers in electronics, there's still a huge demand. One of our biggest customers, they even made a statement that they could actually sell 25% more laptops if they could produce them. We can also see it in our business where we do take-backs of secondhand computers and things like that. It's a really hard market. Everything we get in, we can sell immediately. I think also it's a change now, because lots of companies will offer people to work from home, and in lots of companies, you have a more normal desktop computer, and I think more companies now are changing that all their employees should have laptops, so they could also work from home. The expectation from us and our electronics customer is that they can sell what they can do. It's much more about semiconductors. Okay, perfect. A question probably for you, Andréas, regarding the refinancing you mentioned. Could you give us any of the terms, or at least the changes from the previous ones and also maybe the impact on net financials going forward? Yes, sure. For one thing, we're going from two banks to three banks. We will have one more international European bank in the constellation. With the new agreement, there would be a little bit more favorable margins on the interest rates from our side. It will have some positive effect on the results, but it's not significant. The new agreement will also give us the possibility to acquire companies and be compensated for the EBITDA effect on the results historically. We have an acquisition window where we can include the EBITDA for acquisition that they are made, and not get only the effect on the net debt when we acquire them. There are some of the things that we have in the new agreement that we didn't have in the old, for example. Okay, perfect. The final one from my side. Prior to the pandemic, you implemented cost reductions or cost out programs in LGI. Would you say that it's more to be done or are you satisfied with the current cost level for LGI, that is? No, I think there's still more to be done, but that is more about coming to some of our customer contracts that has too low profit. I think when it comes to the cost structure now with the new organization in LGI, we are really happy with the new setup and the performance is much higher. As we have mentioned before, we still have some longer contracts in transportation area that we are trying to renegotiate. We will leave some contracts also this year. It's more about customer contracts, that we try to increase prices or we exit them. Otherwise, we are very happy with the structure and the setup. There shouldn't be any more big one-off costs connected to that. Perfect. Very clear. Thank you. Thank you. We'll now move to the next question. Please go ahead. Your line is open. Yes, hello. Good morning. Alexander Wahl here at Stifel. I think most of my questions have been answered. Regarding acquisitions and new financing, you mentioned that you can now take into account basically acquiring EBITDA. How much additional potential buying power does this add, would you say? Is this a big step for you when it comes to potential acquisitions, if you would like to expand on that a little bit? Yeah, no. I think that of course give us some additional space and with the new bank agreement, we have also more flexibility when it comes to increasing debt. The most important thing is that we still can do lots of acquisitions and be under net debt EBITDA of around two if we do smaller ones. I think to do small acquisitions, we have a capacity now to do around, I don't know, EUR 20 million-30 million per year, and still be under two in net debt EBITDA. We also with the new agreement, of course can do some big acquisitions and then temporarily go up to around two and a half, three, 3.5 even. The new agreement gives us power to do lots of small ones without increased cost, and we can also go bigger. No, it's very good. Okay, thanks. Thank you. As a reminder, to ask a question, please press star one. We'll now move to the next question. Please go ahead. Your line is open. Hi, good morning, Magnus and Andréas. First off, I would like to understand the lower than expected gross margin and the sort of downtick from previous quarters. Was all of it driven by increased cost related to supply chain problems and unpredictable shifts of capacity? Was it something else as perhaps sales mix as well? I think that could be a bit of a mix, because I also think the gross margin is affected by that we are still continuing to grow with this subscription box business in U.S., that has pretty low contribution in gross margin because there's a big share of transportation costs. Of course it still affects automotive area with the problem with semiconductors where we have a big organization and when we cannot utilize it in an optimal way, it also affects the gross margin. I think mainly that is the two reasons. It seems like, I think fashion and lifestyle was down almost 20% sequentially within Print and Packaging, and I guess that implies a drop for subscription boxes, and the margin is down sequentially as well. Maybe first off, is it correct to assume that subscription boxes is down 20% almost? If so, what's the reason? No. I think subscription box business is still on the same margin level like last year. There's no change. This could not be that effect. Of course, also, I don't know, Andréas, it will also be depending which trading, what buy and sell deals we have done in. The PPE business as well. Also, yeah, and last year we had the PPE business also. That's a very good gross margin. Yeah. Yeah. A very high gross margin. I think that also disturbs when you compare it. On a subscription box business, the margin level is actually the same like last year, so it's still growing. I don't know if it's the currency. Of course, currency doesn't affect the margin, but if you look at the sales, there's a positive organic growth in the subscription box business within Print & Packaging Solutions. Okay. Thinking sequentially, I'm looking at the numbers here, it says SEK 294 million in sales within fashion lifestyle last quarter, now down to SEK 239 million within Print and Packaging. I'm just wondering if that's subscription boxes mostly, what's sort of going on in that area. At the moment. Let's see. Fashion lifestyle. Yeah, it's down. In Print and Packaging, fashion lifestyle is slightly down. Sequentially, from Q1. I don't know from. 19%. I was just wondering if that volume is sort of dropping off? You can see that the growth has slowed down for the subscription box business. The growth rate is much lower than last year, we still have grown with 10%. Okay Six months. All right. Do you have more questions? Since I'm going to try to look for more details, then we can come back to that question. Do you have some other questions? Yeah, I have one more. Looking at sort of the customer segment level as well, there was a fairly large pickup of healthcare volumes this quarter as well. Is this some kind of a non-recurring contract, or should we expect a similar level going forward? No, you can expect the similar level going forward. We have a good development, online development in the healthcare part because we are growing this business both in Asia, and we are doing well in Europe, and we will add a new big customer as well that will come in in the second half of this year. We are now setting up a new healthcare center in Germany as well with more capacity. We expect to grow that area. It's one of our priorities. Okay. Are these volumes in any way COVID-19 related, or will it continue when things return to normal as well? No, it will continue because it is more related to the other healthcare services, but it is now recovering when the hospitals can do other things than treating COVID-19 patients as well. Yeah. We are mainly in healthcare working with other kind of equipment that you use for daily use, both consumables when do operations and also lab equipment and things like that. We expect that they will come back now, actually. Yeah. Okay, perfect. That was all the questions I had today. You're right about the sales in subscription boxes from Q2 to Q1. There is a drop in sales. Between? Between Q1 also Q2 and Q1. Yeah, between there. Yeah, there is a drop. Yeah. It's still higher than the year before. Yeah. Okay. Yeah. Yeah. That's correct. Do you have any idea for the drop? Are your customers losing their customers, or what's sort of going on? No, I actually know the reason now I think about, because we are trading all the freight for the customer, and 1 of our biggest customers have started to trade some freight by themselves. It's pure, how to say, trading freight. If it comes to number of deliveries of boxes, the number is increasing. It's more that we are moving some part of the freight to the customer directly. We want to do it as well, because if we manage that, we will increase our margins instead. Okay. I guess the EBITDA effect is very minor from this. Yeah. If we move more freight to the customer, the EBITDA margin can go up in the long run. Yeah. Yeah. Yeah. Okay, good. Okay, perfect. Thank you very much. Thanks. Welcome. There are no further questions in the queue at this time, again, it's star one to ask a question. There are no further questions in the queue. I'll hand the call back over to your host for any additional or closing remarks. Okay. Thank you, everyone, for coming in for our conference call. I hope all of you will have a nice summer. Thank you very much. Bye-bye. Thank you. That will conclude today's conference call. Thank you for your participation, ladies and gentlemen. You may now disconnect.