Please begin your meeting. Thank you. Good morning, everyone, welcome to the presentation of Embellence Group's first quarterly report. Next page, please. My name is Olle Svensk, and presenting with me today is Pär Ihrskog, CFO. If we move on to next page. First of all, I want to actually take the opportunity to talk a little bit about Embellence Group and who we are. Embellence Group, we acquire, own, and develop strong brands in wallpaper, textiles, and rugs. Our mission is to contribute to a more beautiful and more inspiring everyday life. Our vision is to be a leading house of brands in interior decoration with a certain focus on premium and to drive the development in a changing market. Next page, please. We have a competitive brand platform today. Our largest brand is Boråstapeter with a Scandinavian decorative design. Our second-largest brand is Cole & Son with a British heritage, and is actually one of the leaders, if not the leader in the industry, with more than 400,000 followers on Instagram. Our third-largest brand is Wall&decò. That's tailor-made contemporary wall covering with amazing Italian design and a brand fueled with innovation. Perswall, it's a brand that we are restarting now and want to develop into a Scandinavian lifestyle brand with a vision to have consumers press print. It will be a purely direct-to-consumer brand. Our fifth brand today and our recent acquisition, that's Pappelina. That's an international brand in premium plastic rugs, founded in 1999 by Nina Ricca. Next page, please. We focus on three strategic areas. First of all, to have continued leverage of the premium market, we estimate that there is an underlying market growth of at least 5%. Secondly, it's all about internationalizing our business, both with organic growth in Europe and in selected markets in rest of the world, but also with add-on acquisitions of brand-driven premium companies. The third part here is digital innovation. We will launch and have launched direct-to-consumer into new geographies, and we will do further investment into what we call digital tools. Let's move on to the quarter itself then. Next page, please. Q1 has been a busy quarter. We had the listing, we have done the name change, and the add-on acquisition. More importantly, we have delivered strong, profitable growth. Our net sales is up with 16%, and we reached an adjusted EBITDA of 15.9%. We strengthened our brand portfolio through the acquisition of Pappelina holds a strong position in an attractive niche market around the world with more than 80% of the revenue outside Sweden. Of course, we have a listing on Nasdaq First North Premier Growth Market, which gives us visibility, better access to capital, and is also the right position for us to continue our journey. The fourth point I want to mention is the direct-to-consumer launch for Cole & Son brand in the U.K. market that happened in March, but also the soft launch of Perswall direct-to-consumer. That's a very important step for us, and it will be followed now in the second quarter with Boråstapeter opening up in Sweden as well with direct-to-consumer. Now over to you, Pär. Yep. Next page. Some more details on the financial performance. We had a strong start of the year. Our net sales were up 16%. It's driven by organic growth, but also through add-on acquisition. Our adjusted EBITDA ended up at SEK 28.2 million, which is almost a doubling compared to same period last year. The improvement was driven by the organic growth, and then also the acquired company, but also an increased share of premium sales. In addition, we have continued to look at our cost. We have cost reduction both in production and in our sales administration. Yeah. Cash flow. We had an improved cash flow compared to the same period last year of SEK 13 million. It's mainly driven by the improved result. The cash flow in the quarter was negatively affected by an increase in accounts receivable, which is coming from the strong sales in second half of the quarter. Same as last year. Next page, please. Some more details on the sales development. In total, we improved our sales by 16% or SEK 25 million, and 14 of those came from the acquired company and 14 came from the organic growth. We also had a negative currency impact of SEK 3.7 million. Next page, please. Let's go into our segments. The first segment of C is the Nordic region, which represents 55% of our turnover. Our net sales in Norden was up 16%, which is coming from organic growth and also from the acquisition of Pappelina. Our adjusted EBITDA ended up at SEK 16.7 million, which is more than doubling compared to the same quarter last year. The improvement in EBITDA is coming from the growth, of course, but also cost reduction, introduction, and a higher share of premium sales in the Nordic region. Our premium share in the Nordic region was 28%. Last year, same period, was 20%. Moving to the next page and the Europe segment is 35% of our total turnover. Also here we saw a pickup in sales, an improvement of 12%, which is coming from, again, the acquisition of Pappelina, but also from organic growth. Our EBITDA ended up at SEK 9.4 million, which is an improvement of 81% compared to the same quarter last year. The EBITDA improvement is driven by the high sales and the add-on acquisition. The share of premium sales in the European region is 82%, which is same as last year. The third and final segment is the rest of the world, which represents 10% of our turnover. We saw also an increase in our sales. It was up 34%. It's driven by organic growth, also acquisition of Pappelina. We should also keep in mind that last year, first quarter, we started to see some impact from the COVID-19 pandemic in China, which is an important market for us. That is also part of the explanation why we see an increase in sales. The adjusted EBITDA ended up at SEK 2.1 million, which is an improvement of 62% compared to the same quarter last year. It's driven by the high sales and the add-on acquisition. The level of premium is 89% in the rest of the world, which is an improvement from 86% last year. Next page, financial targets. We have four financial targets. The first one is about growth. We say that we should double our sales from 2020 numbers to 2025, ending up at SEK 1.2 billion. That represents an annual growth of 16%, which should come from both acquisition and organic growth. First quarter 2021, we had a growth of 16%. Our operating margin, we had a financial target being at least at 15% EBITDA margin over business cycle. For Q1, we ended up at 16.9%. Also the leverage target, we should not go above 2.5 net debt in relation to EBITDA. End of Q1 this year, we had leverage of 1.4. Next page. Summing up. First of all, we delivered a strong profitable growth, 16% up in net sales, strong adjusted EBITDA and a share of premium sales of 52%. We strengthened our brand portfolio with the first acquisition outside of wallpaper with Pappelina. We are now listed on Nasdaq First North Premier Growth Market. We launched the direct-to-consumer business, Cole & Son in the U.K. and Perswall in Sweden and U.K. As the quarter developed, we could register more and more markets in Europe opening up and allowing craftsmen into their homes. Moreover, worth mentioning is also that hospitality segment is starting to show signals of waking up and doing investments again, but also corporate offices. In the quarter, we decorated Microsoft's office in Shanghai, and we decorated a couple of prestigious hotels in the U.K. Pappelina collected a large order for rugs from cruise ships that they will use this for outdoor on their sundeck. With this, we close the presentation and we open up for questions. Thank you. Thank you. If you would like to ask a question, please press zero one on your telephone keypad. There will now be a brief pause while questions are being registered. The first question comes from the line of [Karin Lidén] from Handelsbanken. Please go ahead. Your line is open. Yes, thank you very much and good morning all of you. I have a few questions, so it may be best if I take them one at a time. Firstly, about this premiumization trend in the Nordics going from 20% premium in the first quarter last year to 28% this year. Was the first quarter last year specifically weak, or what's driving this very encouraging trend? I would say that it's coming from various factors. First of all, we have some of important launches that we did over the last year that have improved our Boråstapeter performance in the market more and more. Also, the fact that consumers are spending more money into their homes is also affecting. Obviously, the acquisition of Pappelina is also having a part of this. Okay. How much would you say of that eight percentage point increase would you say comes from Pappelina? Is it possible to say? I don't know. I cannot answer that now. I have to come back to that. All right. Fair enough. It's Pär here. Of the 8% improvement, I would say that approximately five of those come from Pappelina, and the rest is growth in the premium, organic growth. Good. The growth in Europe. You mentioned that you see various countries recovering, but more specifically, did you still have some countries in Europe that are important to you that still had negative sales growth in the first quarter, maybe more specifically the U.K.? Good question. I have to say, top of my head, U.K. has not been the market that we're most worried about opening up. That has performed strong for us. Not strong, but at least not negatively. The markets that we are more concerned about during the quarter, that has been Spain, for instance. Italy was very low in the beginning of the month, but then end of the quarter, I mean, beginning of the quarter weak, end of the quarter quite strong in Italy. It's rather the Mediterranean countries than U.K. U.K., we are continuing to have a strong position, and our estimation is that we are performing better than the overall market. All right. That's very helpful. This cash-adjusted price that you paid for Pappelina, that seems very low. Is this an indication of what we should expect going forward, or was this a particularly attractive price tag from your point of view? We acquired Pappelina for SEK 55 million. In that price, we also paid for the cash, which was almost SEK 21 million. That leaves us that we paid SEK 35 million then. In cash, we paid SEK 26 million, and we also had a debt to the previous owner, which we regulate, or we pay after Q1, the debt. I don't know if that answered your question. No, I think you earlier indicated that Pappelina had about SEK 45 million in sales and maybe SEK 10 million. 10 million, yeah. Last year. Yeah. Compared to that seems like a very low acquisition multiple. I just maybe just wanted to confirm to get a sense of what we should expect going forward. I mean- Correct me if I'm sorry. I think I understand where you're going. It's a combination of many factors. Of course, this is a fairly small company as well. I would say this is on the lower level of the spectrum we can expect acquisitions going forward. I would not say that this multiple or level is the one that other add-on acquisitions will be at. I hope you can understand. Maybe on that topic, if I remember correctly, then when you acquired Wall&decò, since that's relatively recent. If memory serves right, I think you paid maybe five, 6x EBIT for that acquisition. Would that be accurate? We actually paid in a similar level to EBITDA as with Pappelina. Okay. Sorry. You can go on. These direct-to-consumer efforts, you mentioned that you are now launching even Boråstapeter in Sweden so that you are starting to sell directly to consumers. I think the last I checked, if I would as a consumer order, I would still have to pick up the wallpaper from a retailer. Is that the way going forward as well, or will you have a full-blown e-commerce offering? Sometimes. We have not launched it yet. We will have a full-blown one. It will be launched during June. The consumer can decide themselves where they want to have it delivered, to their home or to their office or anywhere else. It will be full-blown, as you say. What are your traditional retail partners saying, since Boråstapeter has such a high market share in the Nordic countries and Sweden? Are they voicing some concerns about this? The discussion we have with the leading retailer chains in Sweden has been, they have been endorsing this and understanding the logic in this as well. We have to be present with Boråstapeter where the consumers want to buy us. We will act as, how should I say? Like a price umbrella, as we will only offer our products on the recommended retail price. We have had the discussion with the important players in the Swedish market since end of last year, and we have been pretty clear that the main reason for us doing this is to build our brand even stronger. Of course, we will collect insights and information on consumer behavior and tastes and so on. Of course, if the consumer wants to buy directly from us out of convenience or time constraints or something like that, they can do it. We have been open with this for half a year in the discussion and so on. If this would have been done five years ago or six years ago, or pre-COVID-19, it would have been another game, but so many things have changed, as we all know. I think the pricing will probably have to be similar to what the retailer is offering. What have you said, or what kind of expectations do you have for margins from your direct-to-consumer sales when you sort of cut out the middleman? Margin is one thing. That will of course be improved when we have it directly. We'll also have additional costs related to logistics and transport and packaging and so on. The net effect and IT structure. We are making quite a lot of investments around that. With this being said, we are not doing this because we think it's bad business for us, of course. Again, it's about building a brand, and we have done consumer studies where we have realized that consumers expect it to be possible to order directly from us. We have to invest and bring some additional service to it that also costs a bit, but it will be a healthy business for us. You know that the majority of the business that we are doing in the Nordic region today, that is Boråstapeter. We are on a healthy adjusted EBITDA margin today. We expect this business to contribute. We will always have a diversified channel strategy in any market, including the Nordics. That was a long answer to a short question. No, that's fine. I have a few questions left, but maybe I will let Operator check if someone else wants to pose a question as well. I'll get back to you. Thank you, Danny. Thank you. Just a reminder that if you would like to ask a question, please press zero one on your telephone keypad. There will be a further pause while questions are being registered. We currently have no further questions. We have just got a further question registered from Kari again. Go ahead, your line is open. Yeah, thanks. All right. A few more short-term or sort of background. First of all, you mentioned the hospitality and the offices and that you have started to see some business from that category. How much of that has historically been of your total sales? These sort of business-to-business customers. I would say that it has been below 10%. Okay, that probably applies to Pappelina as well. Definitely Pappelina. Pappelina is mainly residential, has a residential consumer market. Pappelina has some hotel chains that only have Pappelina, but the cruise ship order was the first. It's mainly Wall&decò and Cole & Son that have a portion of the business addressing the hospitality segment. All right. If we look at seasonality, until now we have had limited financial information available, now we have some quarterly numbers that it seems that the fourth quarter and the first quarter are your seasonally stronger quarters. Should we expect roughly similar seasonal pattern for 2021? Does Pappelina have? Similar kind of seasonality in its sales. Overall for the company, it is like to say that historically Q1 and Q4 are slightly stronger than Q2 and Q3. We don't know the pandemic effects and so on, how that will affect it, but apart from the pandemic, we don't see any signals that this seasonality that we have had will change. For Pappelina specifically, Olle? For Pappelina has been, I would say it is almost a quarter per quarter very much close to 25%, so not that much seasonality. Last year was a bit particular, but looking at 2017, 2018, 2019 it's very similar. When the outdoor season starts in Europe and North America, the rugs are moving outside and the demand. It's even less seasonality than we have with the wallpaper business, if you like. All right, a few smaller or more detailed questions. You have now three quarters where your EBITDA margins have been clearly above 15%. Maybe specifically, how much in terms of government grants do you have in your sort of 12-month numbers, and was there anything in the first quarter? Pär here. No, in the first quarter, we didn't have any. Last year we had in total approximately SEK 3 million, SEK 3.6 I think was in there. We received SEK 3.4, I think, but we paid back already some of it last year, so it's SEK 2.6 last year. We are starting to pay back from a cash flow point of view what we have received in VAT and yeah. SEK 2.6 is a net effect last year. All right. Finally, two questions. Firstly, about gross margins, they were down one percentage point compared to first quarter last year in spite of higher sales. What's behind that? Do you have any IPO costs that you will be charging into the second quarter numbers? The gross margin it's also affected by the acquisition of Pappelina. Slightly lower gross margin than the other companies. That is a mix effect, you could say. That's the main explanation why the gross margin is going down. Yeah. Any IPO costs still to be charged or are they taken? Yes, we have not seen the full charge yet. In the quarter, we had SEK 5.3 in total. Most of that is coming from the Nasdaq. We still have a little bit more to come in quarter two. Not more than 5.3? No. I expect it to be between one and SEK 2 million. All right. That's very helpful. Thank you. Those were all my questions. Thank you, Kari. Thanks. Thank you. We have no further questions. I will pass back for any closing comments. No further comments here. We're happy with the quarter, but we are now geared up in the second quarter to perform well as well. Last year, first quarter was a little bit affected by the pandemic, but it was in the second quarter, as you know, we took a bigger hit in the market as many markets were really closed down. No further comments from our side. Thank you.