Hello, and welcome to the Beijer Electronics Group Q3 report 2021. For the first part of this call, all participants will be in a listen-only mode, and afterwards, there will be a question and answer session. Today, I'm pleased to present Per Samuelsson, President and CEO, and Joakim Laurén, Executive Vice President and CFO. Speakers, please begin your meeting. Okay. Thank you very much. First of all, welcome to all of you listening in to our quarter three report 2021. The way I see it, we have a positive report to present. I will directly go in and say that the most important for us is that we could see that there is a good and stable demand situation still in the market. That is, of course, the most important starting point. It also means that we have a order intake for the second quarter in a row that is passing half a billion. Those of you that follow us knows that we have sales normally in the region of SEK 400+ million. If we then have a order intake in the level of SEK 500 million, that tells something about the future, if I put it that way. We also, a couple of more words about the demand situation is that we can see that on the order intake, but also the different type of customer contacts that we have, we see still that there is a good demand from most of the markets. If I talk about geography, Asia Pacific has been strong for a while. Europe came for us last quarter. Also we now also see some good signs coming up in the U.S. Also we can see that a year ago, it was a little bit not that good when it comes to, for instance, the train segment, because there were delayment of projects and so on. Basically now we can see that most of the segment wherein as well is also starting to place orders as we have seen the last six months. Overall, I would say there is a stable, positive demand in most of the market. That is really the main message. Once again, we can also see on the order intake that it's equally spread in a positive way between the entities, Beijer Electronics, Westermo, and also Korenix. That means also that we had a sales increase in the quarter. We are stating here that it's 23%, but also as we said last quarter, we still have a backlog because of the component shortage situation, and we state that roughly 10% of the sales, we could have had 10% higher sales in a situation with no component problems, if I put it that way. We are coming in a little bit also, if I take a couple of words on. I will come into the component situation a little bit later. Still that is far from solved. It also means that after quarters in the pandemic in 2020, we can now see the EBIT start to come up to more and more healthy situation. We are showing an EBIT of SEK 32 million, and that is a margin of roughly 8%. Most of you know also that our target is at least 10%. If you know, we're starting to come very close to the target, by the way. Which is, of course, compared to how it was one year ago, a very good and positive situation. A couple of words also on the different entities. Westermo, they have also during a long time have had a stable situation. They have, of course, been affected by the pandemic, but still, they have been on a profit all the time. This quarter, the good news on the order side was that Stadler, a German train manufacturer, placed a good order. It's not only the order and such, but it shows that they have been choosing us for their future trains. That is, of course, also positive because in the next couple of years, hopefully, we'll get some more orders from that company. We bought the German company called ELTEC. They are in our numbers from 1st of April. That continues to develop in a good way. We are quite happy that we bought it, and we can see that it will be very good fit going forward and complement the technology, especially on the train side. As you know, they are very good in onboard communication systems as well as Wi-Fi onboard. I would say now in Q3, it's Westermo that has had the toughest situation because of the component shortage. I foresee that that also will continue, I also foresee that step-by-step we will improve, we don't foresee that for Westermo that we will be out of the problem in the near future. One other positive thing is that we could see Beijer Electronics. Once again, Beijer Electronics has been fighting for several years. They were up in really good figures end of 2019, and then they came down again 2020 because of the pandemic, but now they have started to come back and show profit, which for Beijer Group is very important that both Westermo and Beijer Electronics started to perform. Personally, this is probably the most important thing in the report, is that Beijer Electronics starts to earn money again, and we can see that that will continue going forward. As you can see on Beijer Electronics, both quarter two and quarter three, they have a good order pace, which is good. We can also see that the Korenix, some of you know that more and more Beijer Electronics works together with Korenix, and we can see that the product offer fits very well, and we can see now that more and more customers appreciate that. Once again, I'm happy about the future for Beijer Electronics and Korenix going forward. A couple of words on the component situation. This of course creates, a lot of you that is in this call, I know you follow other companies and you read quarter reports in a lot of places here. Of course, we see that some specific components, then there is a shortage of those ones. You can then see that some actors take advantage and increase prices very heavily on those components. You can also see that some is then putting some of the components end of life quicker than earlier forecasted. It creates a lot of problems, but also a lot of work for supply chain in the different entities. Basically, in my position, I'm saying it like this, we have a very professional organization, and they are handling this situation in a very good way. Still, we have situations where we have basically most of the product manufactured, but then we are missing one or two components, and then we have to wait to supply until we get that product or component. This is of course a problem. Secondly, there is frustrations around the transportations, and also I think all of you on this call is well aware of that situation. It means also that not all the time you can trust that you get the deliveries exactly as forecasted. That of course means that we take actions in different ways, and then what we do is that we try to increase inventories in order to be more safe going forward. That, of course, increased inventories, that affects the cash flow, and that is why we don't have a positive cash flow that we normally have. I think it's a strategic decision for us to, and we have take that for the whole group, that we need to prepare ourselves for component shortage the next couple of quarters, and therefore we buy more components and put them in the inventory side. I foresee that if you go another two or three quarters ahead, probably the inventories will go down, then cash flow is coming back. I see this as a sort of a short-term effect. If we then continue look at the slides, you can see on the order intake, this, I would say, if you look at the left side in the order intake here, you can see where we're coming from. That slide shows already from Q1 2018. As you see, we had Q4 2018, we had one quarter with a SEK 450 order intake, and that was actually a big order from Westermo that hit that quarter. After that, we have not more or less been over SEK 400, and then the pandemic came in in 2020, Q2, Q3. Now you can see that end of 2020, it started to come back, in Q1, a little bit increase, but now Q2 and Q3, we are on the level of SEK 500 million order intake, which is of course very good for us. Compare that with sales level of SEK 412, then everybody realizes looking into this, that if we go forward, we will probably to come closer and closer going forward to, if not all the way up to SEK 500, but of course we will be able to increase sales, going along with better component supply. Basically, best figure for us this quarter is the order intake at SEK 500. Second most important is actually Beijer Electronics starting to earn money again. Then, as an effect of this, is of course that the backlog increased to SEK 850 million. I would say a year ago, that backlog was down to SEK 450, I think, something like that. We have a quite good situation there. With that, I'm handing over to Joakim Laurén to go through the group. Thank you, Per. I will take us through the numbers for the group and our three business entities. We start with the group. As we all understand from Per's statements, it's a significant profit improvement, but still, the component shortage impacts our ability to deliver. Order intake of SEK 502 million, sales SEK 412 million, and an EBIT of SEK 32 million, corresponding to a profitability level of 8%. As Per said, the level of impact of the component shortage is around 10%. During the quarter also, we have seen a pressure on the margins due to the fact that we have been forced to buy components where we short-term have higher prices. We need to go out on spot markets from case to case to secure our ability to deliver. By doing so, we need to pay much more, in some cases much more, than we normally do for these kind of components. That puts pressure. We have in previous report also informed that we have adjusted our prices. There is a time lag between the fact that we implement the prices and the fact that we will see effect in the book, and very much given the fact that we have already order confirmed orders, that is, of course, problematic to go back to customers and change prices, et cetera. We have a time lag here. During the quarter as well, we have had a waiver of a COVID loan that we received in the U.S. already Q2 2020. That one, we have been forgiven in the quarter, and that affects the result of about SEK 9 million. What we say is that what the kind of impact that we had on the margin of the component cost increases, we partly offset that with the fact that we have got this waiver of the loan. Looking at the activity level, I think you all know that we introduced a cost program in 2020. That, in combination with a balanced approach on activity levels, we have been able to maintain a reasonable level of the costs impacting the bottom line. We also want to highlight that we have had a relatively small but negative impact of currency on the EBIT of just above SEK 1 million negative in the quarter, mainly transactional variances. Bottom line, we end at almost SEK 22 million at the net income level. As Per said, free cash flow, SEK -21 million in the quarter due to the fact that we have been forced to increase our inventories as Per laid out earlier. Westermo, h ere we state a positive market development and strong order intake. The order intake of SEK 290 million in the quarter, sales of SEK 203 million, and an EBIT of SEK 26 million, corresponding to 12.7%. We did, earlier in the quarter, send out a press release on the Stadler order of about SEK 50 million. Of course, that one is a good one to note in the quarter. Also underneath on other markets, there is a general market pickup, and so it's not only Stadler order in quarter. We see it in other customers and a wider, not only in the rail side, but also track side, we see a positive development in the market. As said, sales have been hampered by the component shortage situation, and we do have some tough challenges in Westermo, as Per pointed out before. Still, the profitability came in on a decent level to 12.7%, giving the fact that we have a good cost control in Westermo. ELTEC acquisition has continued to develop well, and we have also, in the quarter, continued to launch new products for the energy segment. Final comment here on Westermo. We are also now in the quarter been opening up a new sales entity in Spain, actually, where we see good opportunities in the markets of train, track side, and energy, and this entity will focus then on the Iberia region. Beijer Electronics. As Per said, it's good to see a profit on the bottom line for Beijer Electronics. It's a good profitability improvement, and it's driven by the added volume as we have been stated many times during the last years, I would say. Order intake of SEK 192 in the quarter, the sales of SEK 186, and then an EBIT of SEK 15 or 8.3%. If we look at the regions for Beijer Electronics, we saw already in last quarter that APAC or the Asian region we've seen a good traction, and it continues. We are happy now to say that the EMEA region is also showing a good development, while U.S. still it is on a lower level, but it's still improving, but still low compared to what we've seen before. There's more to come in Beijer Electronics. The component shortage has limited sales also in Beijer Electronics, but here we see some signs of improvements for Beijer Electronics in the quarter. The cost increases that I talked about earlier on the group level is as valid for Beijer Electronics, where the waived COVID loan is basically compensating for the time lag that we have in the price increases. As we have stated before, we have continued with the cooperation between Korenix and Beijer Electronics, and that develops in a good way. Finally, we have Korenix. We do see a growth in Korenix and a result improvement, still we are just below zero in this quarter. We had an order intake of SEK 25 million, a sales of SEK 28 million and an EBIT of SEK -0.7 million. If we comment on the order side, compared to last year, it is in the growth. If we look sequentially, it's kind of moving sideways compared to Q2 on the order side. That is mainly because of the fact that Taiwan had another impact of the COVID, which led to that they had to introduce COVID restrictions during the summer, quite rough ones. That led to some postponement of projects that we otherwise would have expected to get. Still, we want to state that the pipeline is promising in Korenix. There's no general concerns, you could say, from the market perspective in Korenix. Also in Korenix, the component shortage has limited the sales, and by that also, of course, the profit generation. Last quarter, we were just above zero in Korenix. Now we came in just below zero. You could say that we are hovering around break even in Korenix at the moment. Also here, of course, needs to be stated that the cooperation between Beijer and Korenix, it's working well. That kind of concludes the numbers. It's over to you, Per. Thank you very much, Joakim. A couple of comments quickly that I want to state is that we have discussed when you have the component situation as we have, and you get heavy price increases on the supply side, it's of course important for us to pass those cost increases over to our customers. We have already talked about time lag when you increase prices, but we can now foresee that Q4, but I would say mainly Q1, the next two quarters, you will see the price increase effect on the top line as such. I think it's important it will come step by step the next six months, and you can see it. The way we see it, we will also continue to increase price. Probably, it will come new price increases end of this year, beginning of next year in the different entities. It's never fun to do that, but you need to do it, and then we are on to it, and I would say that the salespeople are handling that in a good way. During Q4, I will not go in to put the forecast on Q4, but we are in the situation. If you look at the order intake and the backlog, the level we can perform in Q4 is more or less depending on how much we can deliver. We don't have any big restrictions when they come to total capacity. We have installed capacity in all entities to deliver at least on the 500 level on a quarterly basis as such. It's very much now depending on how much the component shortage will affect the quarter. However, I state that I think we have a better situation Q4 compared to Q3. That's how much I dare to say going forward. As you also know, is that we are quite volume sensitive, and you can see now that when Beijer Electronics started to come up to a little bit another level on sales, they directly start to earn money. We can now foresee, and it's the same, by the way, with Westermo, but they are on a higher level, and it's a little bit the same on Korenix. For us, of course, now the big drive is to continue to increase sales every month and every quarter. We have now order intake and backlog in order to do that. There will be quicker effects on the EBIT. Those of you, once again, that follow us knows exactly what I'm talking about. A quick word on Korenix also. There is a very good pipeline when it comes to projects both in Taiwan but also some other places. I foresee also now when it starts to open up a little bit again, hopefully we will see some good orders coming in on Korenix as well in the near future. When it comes to outlook, the only slightly change we have done is that now the group view, you have seen it before, full year 2021, we said it should be better than 2020. Should be, now we say it should be significantly better. That is what we have stated in this situation, and that gives us sort of perhaps a small hint on what we believe going forward. Summary, order intake on a good level, demand is there. Beijer Electronics start to earn money and complement Westermo in a good way. Cash flow negative because of inventory buildup, but that is to ensure that we can start to deliver even in the component shortage situation. We will still have component problems in Q4, but probably not that much as Q3, if I put it that way. That concludes our presentation, and then I open up for questions. Thank you. If you do have a question for the speakers, please press 01 on your telephone keypad and you'll enter a queue. After you're announced, please ask your question. Our first question comes from the line of Markus Almerud from Penser Bank. Please go ahead. Hi. Can you hear me? Very well. Hi, Markus. Okay. Very good. Nice numbers, I got to say. We start by the profitability and the EBIT. We talked before about the order intake is significantly higher than sales, and then once you get the orders coming and converted into sales, then you would see EBIT sort of lift up, which is what we're seeing now. We're also seeing order intake is still significantly higher than EBIT, than sales. Is there any reason to assume that we wouldn't see the same kind of effect as that sales is converted as well, that is, this should continue, right? Yeah. A short answer, yes, it will continue. It's a little bit like, you call it the old zero-based budgeting, is that we have a cost level that will probably slightly increase Q4 because so now we start to travel and go to exhibitions and things like that again, especially in Europe. As soon as we can get more sales, as we take from the order taking to sales, and we have also said that we have normally gross margins on the level of 50% something, then you can calculate yourself that a lot of that will come down to the EBIT line. You're correct, and I just confirm what you're saying, Markus. Mm-hmm. Simply all else equal. Well, you already answered that, I guess. 10% higher sales, if components would be there, and then a gross margin of 50% on that is basically what the effect in EBIT that we're missing. Yeah. from that. Exactly. My second question is on Beijer Electronics, where sales is coming up and order intake is continuously strong. Any specific areas which are sticking out? No, not really. It's more overall. I think that in the beginning of the year, Asia Pacific was there quicker. During the quarter two and three, and mainly three, we can see now that Europe is back a little bit to start to close up to the '19 levels. I think that is probably the most important thing for the quarter, is that the European business is performing in a good way. Otherwise, I would say it's generally speaking, in most markets that has increased, it's not one specific market or two markets. It's more or less generally speaking. We also could see now that there start to be good signs also. There is some increases in the U.S. already, we now foresee the next six months or the U.S. to come up to a little bit better level. They normally in the U.S. sell more of the X2 extreme products that we have higher margins as well. Therefore, I'm looking forward to that, actually. Okay. In terms of end markets, it's the same thing, it's a broad recovery. No specific end market which is very strong. I assume that ship increases should be very strong. We saw the order intake numbers keep coming up in the shipyards, et cetera. Yeah. No, generally speaking, it goes all along the four major segments in the Beijer Electronics. I would say all of the segments are quite okay. Okay. Then my next question is about the energy segment. You said you released some new products in that segment. Anything else you can share with us in terms of momentum and interest, et cetera? What we can see is that now you're specifically coming in, I think, to the Westermo business as such. We can see now that they have done well in introducing the new products. Probably a little bit slow into sales because of it's difficult to sell to new markets if you can't meet customers. They have done a very good job with the product, but also digital selling, if I put it that way. I would foresee that during second half of 2022, we can talk about more substantial changes, so sales into the energy segments with the new products. I think most of you that follow us, if we have new product that has been coming out the last six months, for instance, then to get those specified at customers and get them in, it takes six months, 12 months, 18 months, and so on. It will take some time. I have said several times that wait another three to five years, then I think the energy segment will be passing the train segment, by the way. There is very good prospects into that segment. Mm-hmm. Okay. Excellent. Then one final question about the components. You said that a little bit, but in electronics, you said you see signs of some easing of the difficulties. Is that a general comment that you also see in Westermo? Are there any signs that this is kind of starting to resolve itself or work through, or however you want to put it? The short answer would be no. We see still a lot of complications. We said mainly in the Westermo segment. Of course, you try to work it through. You're trying to find alternative suppliers. You do some change of specification into the product. You do all these things. You buy very expensive, some of the key components, and put them in inventory. That's why you can see in the sales numbers, for instance, of Beijer Electronics, that they have been passing most of it. We have still a situation. When I was younger, we talked about just-in-time deliveries and things like that, and that we can't talk about at all at the moment. It's a little bit to grab the components you can get. I can't see that in the next six months have a normal, stable situation. We have been better and better to handle this rough situation. That's why I think we can handle it in a step-by-step better way. As you can see, we are selling for over SEK 400 million. I think we will sell more quarter four, but we could have sold even more. Once again, you can read all different reports, and you can see that there is a long way to go before we are there. Of course, on top of that, you have these transportation problems as well, that also affect the supply chain. It will take a long time before we're coming back to just-in-time deliveries. That's the way I see it. Okay, perfect. Well, thank you very much. Thank you. Thank you. We have one more question from the line of Mark Sjöstedt from Redeye. Please go ahead. Hello, Per and Joakim. Hi, Mark. Hey, Mark. Hello. I hope everything is well with you. You have already touched upon some of my questions. The first one, you have now two quarters in a row of an order value exceeding SEK 500 million. Could you elaborate a little bit, how much is the order intake boosted by the fact that your customers might place orders for delivery longer time ahead than usual because of the longer lead times? That is, of course, a good question, and it's not easy to have a good, easy answer on it. I would say this. There is an overall good activity by the customers. We were more afraid of inventory buildups, I would say, beginning of the year, if you look at the big customers that we are supplying to. Now when we try to investigate and talk to our customers, do they really use our products and so on, we can see that the products that we are supplying are not ending up in their inventories. I'm sure that there are some effects somewhere of this. Generally speaking, I will argue and stress the point, I think that most of our customers are really having a good demand situation themselves. We can see also that there is a push from, or pressure from our customers that they want to have more supply than we could supply. They don't want that because to put it on inventories. I would definitely state that the way I see it is that there is an overall demand on that level from the majority of our customers. All right. A question also on the ordering intake for Beijer Electronics specifically. You said that it was a general demand, a European order intake had increased, but Asia-Pacific has been a strong area during 2021. I've read in some Q3 reports that the Chinese demand is very strong, especially in the industrial market. Do you see the same thing for Beijer Electronics right now? Yeah, we see that. Now we are not that big compared to other people over there, or other companies over there. Yes, we definitely see there has been for at least from beginning of the year, there has been a good demand situation in China. That's for sure. Obviously, when it comes to infrastructural things, that they are building a lot over there, and we can see that there is a demand, and we can see we are landing orders. By the way, more and more also from our good product in the X2 areas, that is also important to note. Earlier, a couple of years ago, it was more of our low-margin product over there, but it starts to be a good, better mix there as well. That's also good news. All right. One last question. You talked a little bit about it, that you see the power distribution segment be perhaps the largest sales segment in a few years. When you are out meeting customers again at trade fairs, how is the response on the new product lines such as Merlin? Far, it has been very well received, and the important thing now is to get those products into tests so we can see that when they're checking up the products technically that they're meeting the demands. I'm quite sure that they will do that. That will be very interesting to follow that side. I think that the more you read about the energy sector and whatever goes on politically, renewable energy in different ways, wind, solar energy, and so on, is coming more and more. They need equipment like this in, for instance, the substations around the world. That's why I'm so optimistic of this segment if you take another three to five-year perspective, because a lot of countries need to change this type of equipment in their substations all over. That's why, of course, it starts with good products. Yeah, I'm quite happy about that. Okay. Thank you very much for taking my questions. Thank you. Thank you, Mark. We just have a quick follow-up from Markus Almerud from Penser Bank. Please go ahead. Yes. Hi, Markus again. Just wanted to follow up on that last point on the energy sector substations. Just on the ground, when you discuss this with your customers, you say that this needs to happen. Everybody knows that this needs to happen at some point, but where are we in that journey? How are your customers discussing this right now? Because we read in the papers about difficulties with energy, and we have a lot of energy up north in Sweden and not too much in the south, et cetera. Everybody knows that this needs to happen, but where are your customers in this? Are we at the point where this is rationale, so this needs to happen? Or are we approaching a point where this is actually happening? It would be interesting to hear some color around that. I'm sure that there are other people that are more experts than me, but the way I see it, and also from where we are sitting in Beijer Group, I think it hasn't really started to happen in big yet. You can see still that, yeah, the Swedish discussion, but also in other countries where the energy prices are very high. One of the reason is that they haven't really the capacity to distribute energy be within countries and between countries in a good way. There they need to do more. For instance, down here in South Sweden, if I buy a car, as a Tesla, for instance, and then I should load up the battery, it will be coal power from Germany that will be used on the electricity. There is a big step to go, and that's why I'm always saying three-five years ahead, because before they have specified exactly what to do, then to get projects to do it, and then really do it takes some time. I would say that sequentially, it will increase step by step, hopefully starting second half of 2022. I'm only talking for our products, but once it starts, then I think it's not a never-ending story, but then it will be five, six, seven, eight years to go because there is a lot of demand to change a lot of things in the world. I would say on your question, Markus, that's a good one. It hasn't really started yet. That's the way I see it. How long does it take? If we stand here today, and you're launching new products and they started to do specifications, et cetera. How long does it take to build a substation? When should we realistically see orders from this? I think it's two things, Markus. First of all, I don't think you need to build completely new substations. You normally need to upgrade some part of it and some sort of equipment, for instance, the switches and things like that. Therefore, it could go rather quick once you start, because normally they try to utilize the existing energy transportation places or whatever we call it. Then, of course, there will be completely new one as well. Generally speaking, it's more also to have the technical solution, and as such, there are normally system integrators into this as well. Short answer there, Markus, first of all, you need to decide, now we do it. Secondly, exactly what type of technical solution. Once you're specified, then I'm sure that in a lot of the big companies, they will utilize the same solutions in a lot of substations. Once again, it's not that you need new substations. You need to upgrade a lot of the existing substations. I think that's important. Okay. Basically, once we're there, once it's specified, we could see quite lumpy, quite fast, rapid uptake of. Yeah of bills. Okay. Most of the business we have, Markus, on the total Beijer Group is that once you are specified with the right type of product, then normally they will continue to order from us. That's what we see now. I've seen the last couple of years, actually. Yeah. Perfect. Well, thank you very much. Thank you. Thank you. As there are no further audio questions, I will hand it back to the speakers for closing remarks. Yeah. First of all, thank you very much for listening in all of you, and also for good questions and a good discussion. Now we will continue to try to work with supply issues in order to get all the product out from the group. Otherwise, we are looking forward to the next couple of quarters and wish you all a very good day. Thank you very much. Thank you. This concludes the conference call. Thank you all for attending. You may now disconnect your lines.