Thank you very much. Most welcome, everyone, to this investor conference call for the first quarter of 2021. I'm Helene Svahn, the CEO and President at Haldex. With me I have Lottie Saks, our CFO. The agenda today is that I will start by giving a commercial overview. Lottie will continue with the financial overview. I will then end with a summary and outlook and open up for questions. If we go to slide three, commercial highlights of quarter one. During quarter one, we see a continuing recovery in most of our segments and markets. We have a sharp increase in profitability. Our organic sales increased with 12% compared to Q4 in 2020. 1% compared to Q1 2020. Our increased focus on the trailer and aftermarket segments show effects. We see increased trailer and aftermarket sales. Truck sales suffer from lower sales in North America, which is mainly due to the loss of a major OEM customer in 2020 and strained supply chains. The trailer sales increased by 6% compared to last year. At the end of the quarter, we announced that Haldex is significantly strengthening its presence in China by a strategic partnership with the market-leading FAST Group regarding air disc brakes, I will come back to this topic later in the presentation. Next slide, please. Updated financial targets. Over the past year, the management and the board have been working on a strategic review of the business and a more powerful action program aimed at improving profitability. In connection with this ongoing review, the Board of Directors of Haldex has decided to update two of the three financial targets and the dividend policy. The updated targets and policies are: growth target, organically grow in line with or faster than the company's end market, and this is unchanged. Profitability target, achieve a sustainable operating margin above 10%. Capital structure, a net debt/equity ratio less than 1.5, including IFRS 16. Then to the dividend policy. The dividend shall correspond to one third of the annual net profit, taking into account the company's long-term investment needs and financial position. Next slide, please. I am now on slide five. Earlier this week, we announced that we are forming a joint venture to produce and sell air disc brakes, including aftermarket sales for truck and bus, with primary focus on the China market together with FAST Group. FAST Group is the market-leading Chinese manufacturer in commercial vehicle components industry. The ADB market in China is expected to grow significantly during the coming years due to regulatory requirements driving increased vehicle safety. The aim of the JV is to launch a complete range of Haldex ModulT Air Disc Brakes for trucks and buses using Haldex innovation, IP, and technology to leverage FAST Group's strong market position in China. The JV agreement was formed under close dialogue and collaboration, including extensive testing and multiple market feasibility studies. We see excellent strategic and industrial fit between the two companies, and we have joint strong ambitions. The joint venture will prepare to production in Xianyang in China during the autumn of 2021 and will be ready for market launch in 2022. Next slide, please. We will go over to group and regional sales. I am now on slide seven. Sales overview for the group in quarter one. We see a strong market recovery in quarter one driven by Europe and Asia and the trailer segment. The organic sales grew with 1%. Both region Europe and Asia noted a strong recovery and had an organic growth of 8%. The trailer sales grew 6% while the truck sales was down 5%, mainly due to a decrease in North America. Aftermarket sales increased in line with the total sales increase with 1%. In the quarter, we had negative impacts of the currency rates. Next slide, please. Slide eight, region America. The outlook of the OE market is positive in region America, and the region showed a clear recovery from last quarter. If we look at the build rates from market predictions for 2021, we can now see that the truck is expected to grow 32% and trailers 41%. Compared to the numbers we gave in Q4, there are very small changes. We have a decreased organic growth of 4% due to the loss of a large U.S. truck customer and strained supply chain. Towards the end of the quarter, we see a strong demand in North America. In total, our OE revenue is down 6%, but compared to Q4, the revenue was down 27%. We have a strong recovery. The aftermarket continues to be rather stable, being 3% below previous year. In the region, we continue to have a focus on driving the aftermarket and also increasing the efficiency. Next slide, please. Slide nine. Region Europe. In Europe, we have strong recovery in all segments. If we look at the build rate from market prediction for 2021, they are now predicting a growth of the truck market with 15% and the trailer with 16%, which is also mainly unchanged from last quarter. Here, Haldex has an organic growth of 8% in this region, and we see a strong growth in all segments, truck, trailer, and aftermarket. The OE revenue increased with 8% in total, and the truck demand increase is mainly due to the manufacturers are reducing their back orders. The aftermarket revenue increased with 7%, and we continue to focus on the aftermarket and trailer segments to strengthen our position in both segments. We also put efforts in growing our position in air disc brake supplier of specific applications. Next slide, please. Slide 10. Region Asia and Middle East. Here, the build rate market predictions for 2021 is now a little bit better. We have an expected decrease of 7% for truck and increase of 4% for trailer. Here we had an organic growth of 8%, mainly driven by lower comparative figures for truck and aftermarket segments from last year. Truck sales increased by 11%, while trailer sales was down 3%. We had a large increase in the aftermarket sales of 34%, this is from low levels. In this region, brake adjusters continue to be the most dominating product line. As I mentioned earlier, during this quarter, we have strengthened our presence in China through the strategic partnership with market leading FAST Group for air disc brakes. With that, I will hand over to my CFO, Lottie Saks. Yes. We move to slide 12. The gradual improvement in sales and profitability that we saw in the second half of 2020 continued in the first quarter. Increased demand resulted in organic sales in line with prior year, and an organic sales increase of 1%. Gross margin improved with 4.6 percentage points versus first quarter 2020, reaching 31.1%. Improvement largely attributed to savings programs. Short and long-term savings programs continue to be efficient. In total, savings contributed with SEK 88 million in the quarter, of which SEK 57 million came from structural savings programs and the rest from short-term savings. In total, cost reductions implied an improvement of more than 7 percentage points in relation to organic sales. Adjusted operating margins reached 10.6% compared to 3.6% last year. This is the best quarter since the split of Haldex in 2011. We are very pleased with the financial performance and the result of actions taken to improve Haldex profitability. Once again, we want to express our gratitude towards our managers and employees of Haldex who have made this happen. We should mention that the result included negative currency effects of SEK 17 million. We have non-recurring items included in the period that had a net positive effect of SEK 27 million. This included the profit of SEK 43 million generated by sale of a property in Kansas City, U.S. Our strong focus on protecting our cash flow continued and resulted in improved cash flow for Q1 compared to previous year's corresponding quarter. This was driven by improved earnings and lower investment level. The strong net income implied an earnings per share of SEK 1.94 compared to SEK 0.04 last year. Slide 13. Adjusted EBIT in Q1 was SEK 115 million, which was an improvement of 173% versus 2020. A sales increase of 1% or SEK 16 million, FX adjusted, impacted gross profit and EBIT positively by approximately SEK 5 million. We saw only minor impact from change in the segment mix, despite that aftermarket share decreased slightly to 50.6%, compared to 51.2% in Q1 2020, and 52.8% in Q4 2020. Material savings in the period were negative due to the impact of raw material price increases for primarily iron and steel. In Q1, cost reductions amounted to SEK 88 million, as prior mentioned. This related to footprint optimization, reduced headcount, and general savings initiative in travel and general spend. Once again, a one-time cost, a positive of SEK 27 million. Slide 14. A recap of our savings program, including the cost adjustment program two that was communicated in relation to the Q3 report. Haldex has three long-term savings programs running. To summarize these, annual savings expected to be SEK 300 million. Our current estimation of non-recurring costs is SEK 275 million. The Cost Base Adjustment Two Program covers, among other things, workforce reduction of 70 positions located across all regions, but also savings in direct material price reductions. Slide 15. Long-term savings programs continue to deliver. Specifically, the Footprint Optimization Program clearly shows effect to our higher gross margin percentage. Part of Cost Base Adjustment Program One and Two also impact gross margin percentage. During Q1, the Cost Base Adjustment Program Two was initiated, a smaller saving of SEK 3 million was realized in the period. After reporting period, additional headcount reductions were also made under this program. This will be visible in the Q2 result. Program is implemented gradually, the execution is ongoing with expected full run rate effect during the second half of the year. In addition to the long-term savings program, Haldex in 2020 launched a short-term savings program for maximum mitigation of COVID-19 impact. This included reduction of management bonus, savings in travel, consultants, and furlough. Saving in 2020 was SEK 92 million, which was approximately SEK 20 million more than initially expected. As this program was a short-term savings program, corresponding activities expected to have a partly reverse negative effect in 2021. During Q1, we did not see an increased activity spend level while short-term savings continued. In Q1, the short-term savings amounted to SEK 31 million. Slide 16. Looking at the quarterly result in perspective, it's evident that our savings initiatives proved to be efficient. We saw a substantial positive improvement to profitability level for both gross profit and adjusted EBIT. Gross profit increased by SEK 23 million or 7% and generated an improvement in profitability level of almost 5 percentage points to 31%. Adjusted EBIT increased by SEK 73 million or 173%. This implied an improved profitability level of close to 7 percentage point, reaching close to 11%. As the result primarily is driven out of a savings initiative, we want to reiterate that it's our belief that these measures increase our efficiency as a company as well as improve our margin. We're very satisfied with the trading during Q1. Slide 18. Inventory level increased substantially during the quarter, approximately SEK 150 million. This was partly driven by the higher sales in Q1 compared to Q4, as well as higher demand going forward. In addition, the increase was caused by lack of components and increased goods in transit as the containers were still waiting to be loaded after the Suez Canal incident. Inventory levels still did show an improvement compared to Q1 2020 of SEK 25 million. Working capital increased SEK 172 million compared to end of 2020. As mentioned, inventory had a big impact. In addition, accounts receivable increased as a result of the higher sales in Q1 compared to Q4. Working capital decreased compared to Q1 2020 by SEK 28 million. Efficiency improved as cash conversion days of 85 days was an improvement compared to 92 days in Q1 2020. Slide 19. Although cash flow was negative in the period by SEK 30 million, cash flow showed improvement compared to historical levels of Q1 cash generation. Improved profitability, lower working capital, and decrease in investment generated the improvement compared to prior year's first quarter. Focused activities to control our cash flow and strengthen our financial position continue to show result. Many years of increased net debt have been stabilized. I hand over back to Helene. Thank you, Lottie. I will go to slide 21 and give a short summary and outlook. The summary for the quarter is that we have continued sales recovery, and we have the highest adjusted operating margin since 2011, and we are very pleased and proud of that achievement. We also see an increased customer interest in our electromechanical brake systems in all regions. We have strengthened our presence in China through the strategic partnerships with market-leading FAST Group for our disc brakes. Our cost-saving programs are delivered according to plan, and we expect to have the full effect in the second half of 2021. If we look at the outlook, we still have large uncertainty in the market. In terms of the supply chain, it is strained due to shortages of raw materials and components, which means that production disruptions and associated temporary cost increases cannot be ruled out for the remainder of 2021. Overall, we expect Haldex to grow in line with build rates for heavy commercial vehicles and trailers in the respective markets. With that, I open up for questions. Thank you very much. Thank you. Ladies and gentlemen, if you do wish to ask a question, please press zero one on your telephone keypad now. If you wish to withdraw your question, you may do so by pressing zero two to cancel. That is zero one to register for a question. I have a question from the line of Kenneth Toll from Carnegie. Please go ahead. Thank you. Yeah, thanks. Two questions, please. One is the higher steel costs. You mentioned it a bit now for the first quarter, but will it have a larger negative effect in the second and third quarter, you believe? Yes. Based on what we can see right now, we expect the impact to be higher in Q2, and then partly be mitigated in Q3 and Q4. We expect the majority of the impact to hit us in Q2. Okay. Will it be a significant effect, you believe? Will it shave off 100 basis points of the margin or more or less, or you think? We do see a material impact. We haven't communicated how much it is. Okay. Another question is on this disc brake cooperation in China. If I remember correctly, it was only a few years ago when there was a mandatory regulation to use automatic brake adjusters in China, and you gained some business there. The Chinese manufacturers didn't follow that rule to 100% at least. What is the next rule now? When is it coming, and what does it say that will drive demand for disc brakes in China? There are now regulatory requirements that are driving increased vehicle safety in China, and this is then driving the transformation from drum brakes to disc brakes. At the moment, I think the penetration of disc brakes is around 15% only. We do expect that these regulations of higher vehicle safety will drive that penetration rate up. Okay. Will you produce the disc brakes, or will they be produced by your partner? They will be produced in our joint venture. Okay. Together. Okay. Great. Thanks. That's all. Thank you. I remind you that if you want to ask a question, please press zero one on your telephone keypad now. There are no further audio questions at this time, so I hand back to the speakers. Okay, we would like to thank everyone for dialing in and listening to our Q1 report for 2021. Thank you very much. Take care. Have a good day. Thank you.
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