Hello everyone, and welcome to the presentation of Husqvarna Group's report for the first quarter of 2021. My name is Johan Andersson, responsible for Investor Relations at Husqvarna Group. I will be the moderator here today. On the call, we have Henric Andersson, our President and CEO, our CFO, Glen Instone. Henric and Glen will present the report. Afterwards, we will open up for questions. Let me also remind you that this session is recorded. We will later publish it on our website. With that, I hand over to Henric. Thank you, Johan, and also a warm welcome from my side. We are pleased to present a record first quarter here today and a very strong start of the year. Before we dive into all the details here, let us first highlight a few of the main things here. We anticipated a strong first half of the year and a slightly more challenging second half from a growth perspective, given how COVID-19 reallocated volumes between quarters last year, so to speak. We could also see that the strong momentum that we have developed over the last few years really followed with us into the season and was further supported by expanded listings and new product introductions. We are now very well-positioned going into the gardening season. Also very happy to say, of course, that the first quarter also is a record first quarter, both in terms of a top-line perspective and from a bottom-line perspective. Ultimately, we are executing on our strategy, and that is paying dividends. We can see strong growth in all the key categories. All in all, a good start of the year. There's, of course, always some uncertainty and some unpredictability given the global pandemic. Overall, we feel very well-positioned and off to a good start here. If we zoom out a little bit, we can also see the kind of transformation that we are on as a group. Looking at the last eight, nine years here, you can see a gradual improvement of our performance. That's based upon an inherent transformation of the company. Of course, with slightly different focus during the years. In the early years, it was mostly around product cost out, focusing on less but more powerful brands. It was about creating a divisional structure so we could execute well, et cetera. Over the last few years, the main focus has been on really driving a favorable mix where we have down-prioritized or even exited less attractive segments, and we have really increased the prioritization and the focus on the truly attractive segments. This has inherently led to an improved mix in the company. Of course, if you look at 2020 in isolation, there's also an element of a stay-at-home effect and also temporary cost control and things like that. As you can see on the graph, the underlying business is shifting, is improving, and it's because of the transformation we're on. If we then dig into a little bit more the details and looking at the first quarter from a sales perspective, very strong, up 24% organically. As you know, the construction division acquired Blastrac, which would add another percent here if you include that, so totally 25% in terms of growth. As you know, when it comes to particularly the Gardena and the Husqvarna divisions, the first quarter is to a large degree about preparation for the season. What we can see is, of course, that through expanded listings, et cetera, that our channel partners are to a larger degree partnering up with us in preparation for the season. We can also see, which we also anticipated and talked about during our prior calls, that the inventory levels were lower than normal in the trade. Of course, there has been a fill-up during the first quarter here. From an operating income perspective, we reached SEK 2.3 billion versus SEK 1.4 billion in prior year. This is largely driven by getting leverage on our top-line growth, the improved mix, but also cost control and good price management. We have been able to increase the profitability by 61%, despite the headwinds that we are facing here with raw materials and logistics. From a direct operating cash flow perspective, we were positive, SEK 143 million versus SEK 132 million negative last year. That, of course, then further strengthens our financial position. As one consequence of that, the AGM approved a dividend of SEK 2.40, with one-third being paid in April and two-thirds in October as usual. The key metrics that we normally follow, which is how we're developing when it comes to robotics and battery. Here we can again see that we are growing these segments faster than the group in general. We are now at 17% of group sales on rolling 12. Really reassuring is to see how now the pro segment is stepping up, not just from a growth perspective, the growth are high, but it's now starting to amount to a bigger portion of the business. It's now something that you actually can see also from an absolute terms perspective. That's a little bit as an introduction, and I now hand over to you, Glen, to put some more colors on this. Thank you, Henric. Good morning to all. Let's dig a little deeper onto the divisional performance if we can. Starting with the Husqvarna division. Net sales were up 21% compared to last year. Actually, 10% as reported, but 21% FX adjusted. Very strong growth in all categories. As Henric alluded to, notably robotic and handheld products, both gas-powered and battery-powered handheld products. Of course, with those product growth areas come an increase in the associated accessories. Also, from a geographic perspective, all regions have shown a solid growth in the period. Pleased to say that we launched a further two robotic models in the quarter in the Husqvarna segment, particularly in residential. The models are called the 405X and the 415X, and they've been extremely well received by the market. Q1 is, of course, by and large, a sell-in quarter as our dealers prepare for the upcoming gardening season. Of course, we started from a relatively low inventory level, so we've seen an increased level of sell-in. Operating income increased by 58% to 17.4% EBIT margin from 12.2%. An impressive leverage on the sales growth as well as a very favorable product mix. The division has managed to offset headwinds from FX, that's roughly SEK 55 million in the quarter, and raw materials, roughly SEK 20 million, as well as increased logistics costs. On a rolling 12-month basis, the division grows by 12% organically from a top-line perspective and some 50% in operating income terms. Notably above our 10% operating margin. Moving over to the Gardena division. The division continues with an extremely positive growth journey that we've seen for several years now. Sales were actually up 37% in the quarter. Growth was strong in all product categories, but particularly strong for watering solutions, robotic lawnmowers, and hand tools, where the division has continued to strengthen its market positions. We also had a product launch within the Gardena division in the robotics area, and that is our SILENO minimo product. Worth noting, apart from our core markets, i.e. the DACH markets that are very strong where Gardena plays, we're also seeing actually an over even stronger percentage growth in our focus markets. The investments in those markets are certainly paying dividends now. Strong sell-in. Again, pretty much like the Husqvarna division, the retailers are preparing for the season and coming from a relatively low inventory position. We continue to increase the inventory in the trade. The earnings for the division actually increased with 64% in the quarter to a pretty impressive 18.7% EBIT margin. Of course, benefiting from the solid growth, improved mix, and actually managing to offset negative FX of some SEK 45 and raw materials of SEK 20. On a rolling 12-month basis, an impressive 26% sales growth, I would say, and more or less doubling the operating income, that growing with 94%. Moving over to construction. Really pleased to see the continued recovery for the construction division. That was the division which was most negatively impacted by the COVID situation. Q1 organic sales growth was 14%, and then we had a further benefit from the Blastrac acquisition that would add a further 9% into the comp year-on-year. The market situation has improved for the construction industry in the first quarter, and we firmly believe the division is improving its market positions. All regions are showing a solid growth, North America, Europe and APAC. The margin did improve significantly on that organic sales growth by 55% to some 12.2% EBIT margin. The sales growth and improved mix offsetting the headwinds from FX and logistics. On a rolling 12-month basis, sales are more or less flat at - 1%. A clear recovery from the figures we saw back in Q2 last year where we were trending at minus 18%. I think more importantly, the operating margin is back at 11.7% from 10.8% at year-end. A new chart we thought that would be helpful to bring into the equation for the quarterly calls is the EBIT bridge to depict the various drivers that we usually talk to each quarter. An EBIT improvement of 61% coming up from 11.7% EBIT margin to 16.3%. Of course, notably market-driven improvements, which is the big bar there on the left-hand side depicting the volume mix and also the internal efficiency program, generating over SEK 1 billion there. However, price continues very much in line with what we guided on previously. It is SEK 115 million in the quarter or roughly 0.5% on margin. Worth to note that we do actually plan on taking further price increases during the remainder of the year, given the headwinds that we are seeing in raw materials and logistics, that I will talk to in a second. We continue to expand in our strategic initiative area, and this was approximately SEK 100 million in the quarter, or a - 0.4% on the margin. Raw materials, relatively low so far this year. The impact at SEK 40 million. That is pretty much split between Husqvarna and Gardena divisions. We do revise our full year forecast on raw materials now to be SEK 350 to SEK 400 million. Point to note that that is largely going to be a H2 headwind for us. FX in the quarter was SEK 135 negative. Our full year guidance is pretty much in line with the previous expectation. We say SEK 300 to SEK 350 million in negative FX. Worth noting that around 75% of that will come in H1 and 25% in H2. Moving over to the seasonality, this is actually a copy paste of what we showed in the Q4 report. It's more just to really reiterate the slide that we showed there last quarter, showing our seasonality profile for sales and earnings. Of course, the periodization was significantly different in 2020. We want to really point that out. Q3 is the quarter that stands out last year, where we really benefited from that extended weather season, extended demand season due to COVID, largely catching up from Q1 and Q2. Please have this in mind as you think about the profile for this year. Moving over to the cash generation. I am pleased to say we continue with a positive development. We are actually plus SEK 143 this year versus minus SEK 132 last year. It is worth pointing out actually, we actually have a slightly negative impact in working capital from the Blastrac acquisition so far of approximately 240 million SEK. If I looked at true like for like versus last year, we are closer to 400 million SEK on cash flow. Of course, the big drivers here are the improved EBITDA, SEK 850 million. Inventories, more or less in line with prior year in terms of the build up, roughly SEK 100 million improvement. The increased sales do drive a higher AR number, about SEK 700 million negative. The payables is very similar to the prior year. CapEx is also in line with prior year. Just on CapEx, we will remain with the full year guidance that we previously give, which was very much in line actually with the original 2020 plan, which would be around about SEK 2.4 billion for the full year. Capital efficiency, we're extremely pleased that this continues. Pretty nice line downwards there to 22.5%. Of course, we're coming from a tough position 12 months ago, but certainly at the end of Q4 last year, we were at 24.4%. At the end of Q1 2020, we were at 29.4%. Significantly supported by the increased sales, of course, but also improvements to the working capital, as we've mentioned in recent quarters. Q2, we'd expect should continue to show good development here. Of course, we have to maneuver some headwinds in H2 as we have a pretty tough comparison to the prior year, particularly sales wise. Moving on to the balance sheet. The main items to call out, inventory being some SEK 1.2 billion lower than prior year or 11%. Actually, FX is around about 8% of that 11% improvement, so a 3% year-on-year comparison in true terms. It's our sixth consecutive quarter of inventory improvement versus the same quarter in the prior year. As mentioned, receivables do increase in line with the sales development and trade payables in line with the production levels going up in the quarter. Worth to note that we have paid down some additional debt since the quarter end, approximately SEK 1.5 billion, and we intend to further pay down about SEK 1.2 billion in the remainder of the quarter. as Henric Andersson said, a dividend was approved, and we paid the first third of that dividend, which is around about SEK 450 million. That happened during April. Before I pass back to Henric Andersson, just a snapshot on our net debt EBITDA. We're now at 0.9, so we're extremely satisfied with this. Of course, a significant improvement in the net debt, as Henric mentioned, now reducing to 5.3 billion SEK versus 11.6 in the prior year, mainly coming from an improvement in the cash from operations with a slight positive coming from the cash flow from financing, pension discount effect, slightly negative at 0.4 billion SEK, a positive currency effect in the net debt of 0.6 billion SEK. At that, I will pass back to you, Henric. Thank you, Glen. Let's then shift gears a little bit and also discuss the longer term a little bit. We are delivering on our strategy. We are on a transformation. We have seen this picture quite a few times, of course. Let me still repeat a little bit of it. Ultimately, it's all about customer experience and getting closer to your customer and create more intimate relationships while we, at the same time, are transforming the company towards more of robotics and battery on one hand, and also where we are expanding our offering beyond traditional products into services and solutions. Of course, all this rests upon a winning core. Sometimes I get the question, "What is that winning core?" You can say that you have the whole Construction division, the whole Gardena division. You have the professional part of the Husqvarna division that we think of here to a large degree. Of course, in the epicenter of this is sustainability and our sustainability work, not just because it's the right thing to do, but it's ultimately about securing market leadership over time. The reason why we call this a Sustainovate is really that we're combining our passion for sustainability with our innovation capability. That's how we are framing it and how we're focusing on it internally. In the last report, we closed the books on Sustainovate 2020, which was a five-year program we set out with very ambitious targets. We've really moved the company in this dimension during those five years. We kicked off Sustainovate 2025, where we set three very distinct and bold targets for us. It's about carbon, it's about circular, it's about people. In terms of carbon, we are committed to the Paris Agreement and the one and a half degree maximum increase of temperature. To contribute to that, we need to reduce our absolute CO2 emissions by 35% across our entire value chain, and that's our commitment for 2025. In terms of circular, here we want to channel our innovation capability to creating more of a circular economy. Here we have set the target of launching 50 circular innovations by 2025. The third target is about people. How can we empower customers and colleagues to make sustainable choices? Here we have set the target that we will empower at least five million people to make a better choice, so to speak. Going forward in these calls, we will give an update on how we are doing on these different targets, how we are progressing. If we look after the first quarter, we have reduced the carbon by 31%. Let's remember that the baseline is 2015, and one could think that we're almost there already, but let's then keep in mind that we did exit quite a sizable petrol business, and that during 2020, from a mix perspective, we had more of Gardena products and electrical products than what we have had during, let's call it a non-COVID year. Therefore, there's still a challenge to get to the 35% absolute reduction by 2025. In terms of circular, we have already made two innovations. Just to mention one of them, so you get a flavor of it's called Grannboxen. It's a Swedish name, but it's basically a box or a small shed where a community or neighborhood can share battery products in a very easy way. In terms of people, here we have not made tangible concrete progress yet, but we are now launching big training programs for our employees, and we are reviewing how we can change our marketing to also empower customers to a large degree. More to come here going forward. Before we sum up, maybe when it comes to strategy, I can also give the update that the program that we launched in conjunction with the Q3 report, where we, on one hand, are stepping up our strategic investments by SEK 250 million a year, and we are improving our handheld value chain and realizing some savings of SEK 500 million per year. That whole program is progressing according to plan. Before then we open up for questions here, maybe going back to the main messages for this call. I think that it's safe to say that we have had a very strong start of the year, not just because of lower comps and lower inventory, but also that we are continuing to win and that we have this good momentum with us, and therefore we are very well positioned for the gardening season. Of course, there's a lot of uncertainties out there, but we are really in a good position going into the season here. We have delivered a record first quarter, and further strengthened our financial position. Ultimately, we are successfully executing our strategy. We can see the dividend through the growth in the key categories and how that is improving the mix of the company. Okay. With that, I hand over to you, Johan, and let's open for Q&A. Thank you very much, Henric and Glen, for the presentations. With that, we're ready to open up the Q&A session. Please, operator, go ahead. Thank you. We will now begin the question-and-answer session. If you have a question, please press zero, then one on your touch tone phone. If you wish to be removed from this queue, please press zero, then two. If you are using a speakerphone, you may need to pick up the handset first before pressing the numbers. Once again, if you have a question, please press zero, then one on your touch tone phone. Our first question comes from the line of Christer Magnergård from DNB Markets. Please go ahead. Your line is open. Hello. Well, to start with, congratulations for a strong Q1, of course. When you look at Q1 demand, organic growth of 24%, is it possible for you to quantify how much of that was driven by the massive restocking, more than normal restocking from retailers and dealers? Also how we should think about the enormous seasonality going into the second quarter, which is normally stronger than Q1. I think you're on mute, Glen. Yeah, Christer, I will take that one. I would say, of course, it is largely a sell-in quarter, so a lot of the increased demand, particularly in Husqvarna and Gardena divisions, has been replenishing that lower inventory situation. The season is more or less breaking, so it's hard to talk about sell-through at this point in time in relation to Q1. I think a large element of that actually is bringing the retailer inventory levels or the trade partner inventory levels back up to a normalized level. Therefore would expect now going into Q2 a normalized demand situation, but the season is breaking. I think the challenge exists there is that most of what Glen is saying here in terms of most of the sales for Gardena and Husqvarna is filling up inventory for the season. Then the question is what is bringing that back to normal level versus that we are actually taking share with our channel partners. I think that is the challenge, but our general feeling is that we are taking floor space, that we have expanded our listings and so on, but it's very hard for us to give a good number on it. in terms of the normal seasonality, you mentioned that 2020, how that was different compared to historical years. Now 2021 seems to be a bit different as well given the strong Q1. Is it still fair to assume a normal seasonally stronger second quarter than Q1? I think it's a fair assumption. The reason we can say that is, of course, April is our largest month of Q2, where it was relatively soft last year. We're going to comp to a fairly soft April. May we'd expect to be normalized, and June will be a tough comp. Putting the three together, then we should have a relatively easy comp to the prior year. On the EBIT bridge that you provided on page 8 in the presentation. Thanks for that. The one question I have is that you break out strategic initiatives, but you don't break out cost savings. Is it possible to give a net number on cost savings versus SI? Well, I can give a couple of numbers. I think we talked about the 500 million SEK in savings, and we have roughly 30 million SEK coming through already from those H2 savings. There's a 30 million SEK figure in there on cost savings relating to what we call the H2 restructuring activities or activities we mentioned there. The rest of the saving activities, Christer, we are running internally. I would say it is sufficiently offsetting the strategic initiative spend. That is something which we committed to, I think back when we started 2019, that we want to have an internal efficiency program that at least pays if and actually creates a net positive number versus our SIs. That continues to be the case. We do have a net positive contribution when I look at the two together. That's good. The final question is on robotics. We start to talk about the professional robotics segment now having meaningful growth, of course, from a low base. Is it possible to quantify roughly how big of robotic business that goes into the professional space now? Also if you can comment on the U.S., if the development in the U.S. have changed now given the COVID. Okay, two questions. Let's start with the pro one. We are quite excited about how well it is developing. It's clearly outgrowing from a percentage perspective the residential robotics with a big margin. Also, of course, we know what the number is, but we are not in a position of sharing it today, Christer, but what we can say is that now it is a number that you see. It's not just something small that is hidden. It's actually starting to become a real number in the professional space. Maybe in the future, we can be more explicit around it, but we're not there yet. It's developing very good. Also the good thing in that professional space is that in reality, EPOS was launched with a full industrial product here in April. That performance is really without EPOS, and it's without CEORA. It's the other models that were basically, let's say, enhanced residential products rather than developed specifically for the professional segment that we see that kind of development. We are very excited about the prospects here, about the professional segment going forward. When it comes to the U.S., it's a little bit the same story, but different. It's by far the largest lawn and garden market in the world. The potential is enormous. For this year, we talked about this already on an earlier call, we are changing our approach a little bit. Because what we learned in Sweden, for instance, it took well over 10 years until this novel concept became accepted by people to such a degree that it start to snowball, where you don't need to fight for every sale, so to speak. We can do it a little bit quicker in Europe, and we hope again, we can do it a little bit quicker in the U.S. to take all those learnings, and we have realized that U.S. is so big. instead of just relying on our traditional channel partners and with a nationwide approach, we think that we will be quicker by focusing on a local, I mean, a city or a region, overload with resources and marketing to get to that tipping point sooner, so it starts to snowball. we can move on to the next one. also see how we can complement our channel partners with different ways of reaching the consumer. The work with changing that strategy is going according to plan. Again, from an absolute value perspective, the numbers are still too small for us to get excited about the U.S. in the current numbers, so to speak. Okay, thanks. Our next question comes from the line of Fredrik Loken from Pareto Securities. Please go ahead. Your line is open. Thank you very much. First off, a follow-up question on the inventory situation. Clearly Q1 has benefited from heavy selling for Gardena and the Husqvarna divisions. Could you just tell us something about if your customers have been able to refill inventories the way that they wanted to, or will that continue into the beginning of the second quarter as well? We certainly feel, Fredrik, that they are normalizing somewhat. I certainly don't think they're any higher than last year's levels. They're probably getting somewhere towards. I would say either on par or slightly below last year's levels at the same point. All right. When it comes to your own inventories as well as perhaps your supplier situation, obviously we're hearing a lot of things with regards to the global supply chains on shortage of electronic components and so on. Your inventories have been coming down quite significantly. How comfortable are you with your inventory situation, and do you see any risks in the supply chain on your side? I think the pandemic has really put a finger on the sensitivity of the global supply chains, not just for us, but for any industry, any company. We of course been challenged by disruptions in terms of component supply throughout this entire pandemic, and we still are dealing with these kinds of things, and we'll be dealing with it for many months to come, I think. At the same time, I think we have been very successful in mitigating most of this. I mean, just the first quarter sales, to actually take a 24% sales growth, it's also a testament to that we have managed the situation pretty well from a component perspective. Every day there is something, and we are fairly quick in mitigating the situation. I can't say that there are any particular areas that we are more or less nervous about. It's more that we have a lot of small disruptions all the time that we have so far been successful dealing with, and we believe we can continue to be dealing with them. From an inventory perspective, you can say that the most important thing for us at this point in time is of course, that we have shifted the inventory out to our channel partners, because that's where it needs to be for that first sale when the season starts. A little bit later, they will place replenishment orders to us, and then we need to be ready for that wave. We feel like we're in pretty good shape here and well-positioned for Q2. Sure, that sounds good. On the longer term, do you have any thoughts when it comes to the supply chain on perhaps starting to look for more local suppliers or making any other sort of shifts to your supply chain and your production base to decrease these sort of risks going forward. Any thoughts on that? Yeah, I think after, if you call it a crisis like this, it's natural that you assess and you evaluate your supply chain and you see what kind of enhancements you want to make. We are making those kinds of assessments. We already did that actually to a large degree before this season started. A big reason why we could entertain 24% growth was that we were much better prepared going into this season than we had. We had, for instance, stocked up on quite some inventory of critical components before the season because we didn't want to have a COVID impact in peak season again. We did some of those tactical things already from this season, but going forward, I think we need to look at more of having more than one supplier on something. Of course, we have more than one on certain things, but to have maybe one further away and one more local, so you can a little bit be more resilient in these situations. I think that will be one of the things that we'll be looking at. All right. Thank you very much, Henric Andersson. Thank you. Our next question comes from Björn Enarson from Danske Bank. Please go ahead. Your line is open. Thank you. Your comments on our guidance on raw mat 350, 400, and also your comments on the FX in terms of what is hitting in which quarter, and also based on your seasonality, do you still think it's possible to be profitable in the second half combined? Yeah, I think, first and foremost, H2 last year, I said the seasonality was very different. Q3 is a very tough one to follow. Raw materials-wise, we expect most of the headwind to come in H2. We're actually pretty well hedged on raw materials through H1, which gives us that confidence. The second half as those hedges are not in place, then we start to feel some of the headwinds on plastics, lumber, steel, and some of the base metals. H2 will be a tough comparison without a doubt. We're going to continue. We're going to push for additional price. We'll continue internal efficiencies, but I think it's fair to say, Björn Enarson, H2 is going to be a tough comparison versus prior year. Yeah. FX-wise, most of that FX burden will come in the first half year. We think some 75% of the FX burden will be with us through Q1, Q2. What did you say on FX? FX, we said 300-350. Yep. Okay. Thank you. That was my first and only question. Thank you. Our next question comes from Gustav Hagéus from SEB. Please go ahead. Your line is open. Thank you. Good morning, guys. I'm interested in the comments regarding robotics on the professional side, as it relates to the legacy products. Could you first of all discuss a little bit what type of clients that you see a pickup for this? Is it golf courses or parks or whatever? Then secondly, on that topic regarding CEORA, could you give us an update if it's actually ready now? Do you have a finished product there that you can roll out and trial in Q3, you think? If you've come any closer to what type of partners you'll find there to roll out products once it's actually ready? That'd be helpful. Thanks. Okay. If we start with the first question in terms of what customer segments or application stages that we see. Actually, so far, we see a big interest across, I would say. We have an interest in all those different segments. It's more likely going to be a matter for us to decide where do we want to prioritize the most, but there seems to be an interest across all those different segments. In terms of CEORA, you can say that we will have little to no impact of CEORA during 2021. What we have done here in the professional space, is that we have used a different launch method to make sure that we get the message out sooner, and that we also can then test concepts, business models, and IDs with key professional customers before we go for the full industrial launch. if you take EPOS to start with, which is this version where you have virtual boundary wires. We launched that one last year, and we had a test sale of some 100 units to really validate the concept and also then the business models around it. That we started full-blown production for, and the sales start was during Q1, and we have sales start of it here in the beginning of April. CEORA will follow a similar timeline, meaning that we will have the big event where we really unveil the product. I think it's on June 22nd, if I remember, doing a big event where we will actually show the product for the first time. we will, during the fall, do the sell-in activities, and then we will hit the ground running for 2022. I think for CEORA, we need to have realistic expectations in 2021. It's going to have very little impact this year, but it's very important for the future. It's also showing an ambition for those professional users, and it's easier to step in on the current products or the EPOS, knowing that they're more in the pipeline and that we are fully committed to the segment. Yeah, no, I don't think anyone's modeling any material income from CEORA. I'm still interested, are you producing to inventory of CEORA, or is it still at conceptual stage? If you're launching it on June 22nd, I guess you've completed with the product. We are still in those final phases, and we will build a, what we call it, a pilot batch, that will be out for testing and evaluation and sell in here during summer and the fall. The big action will be for next year. Yeah. I guess more so than your regular robot, since the price tag of CEORA will be like, I don't know, SEK 200,000 maybe, you're going to have as a service or lease agreements to a greater extent for CEORA than your other robot. Do you know already now if that's going to have an impact on how you account sales for CEORA? Is that going to be the product sales, or are you going to have more as a service, so it's going to be a longer time before it's recognized in the P&L? Yeah, it will be the latter, Gustav, where we see we will likely have more as-a-service selling. I think this will be a profile switch over time. We do have lease agreements and subscription-type deals with other services today, but it's hard to say how that profile is going to change. As Henric said, it's going to be a slow ramp-up in that respect on the total group's profile. It's hard to say how that will impact us. For sure, we plan to have this in as a service solution. All right. Lastly, on inventory, short term, I think you've been quite explicit about it, but I'm curious about the long-term implications. It's been a little bit of a trend for retailers trying to optimize their own balance sheet by pushing product companies like yourselves to set up logistics hubs and facilitate drop shipment and just-in-time delivery for retailers to push down their own inventory. I'm curious if you feel that this pandemic has put a change of mind in the retailer's set of mind that perhaps returning a little bit to the old idea of actually keeping stock themselves going forward. Is that something you're hearing at all, or you envision? I'm not sure we have heard anything explicitly about it, but what we can see is clearly that many of our channel partners are taking on inventory sooner than normal, and it seems like they're all very eager to be in a well position for the season start. We can see how they act during this year, but whether that has changed the way they operate for the years to come, I think it's too early to tell. I tend to think Gustav, particularly in the retailers, I say sometimes have a short memory in that they remember the behavior of the prior year and the demand of the prior year. That can often guide their buying patterns for the next year, so to speak. I think having strong brands is important and availability is important, and those two really support us for this season. Yeah, okay, makes sense. Well, thank you guys for taking my questions. Our next question comes from Karri Rinta from Handelsbanken. Please go ahead. Your line is open. Yes, thank you. Karri from Handelsbanken. I wanted to start by asking Henric to repeat that question on winning core. What did you, Henric, say was included in that, and then what is the not? Let's start with that. Yeah. if I zoom out just to start with, I think it's important to say, okay, we can have different strategies for different parts of our assortment, meaning that there are certain things that are truly transformative and that is really the future that we really want to invest in and transform to. We have then the things that are very important, but they might not be in a transformative mode. We have segments that are absolutely fine for us to be in, and they're important for our customers, they're important for our channel partners, but they are not as critical to us and our profitability. We segment it a little bit. You can say that in the transformative area, of course, you have a lot of robotics and battery. In then this area of what is very important to our profitability and for defining who we are is what we then define as a winning core. You can say that that is, in the Husqvarna division, very much around the professional space. It is the Gardena and the construction divisions. You can say that if you then go into the next third bucket, so to speak, where we said these are important products, but they are not the ones where we put the 100% focus or where we really want to make a difference. You have a lot of the, let's call it, the wheeled petrol products. If I simplify it a lot. We try to segment it to really make sure that we place our investment and our marketing activities in the areas where we drive the right mix for the future. Okay. No, that's very helpful. My early understanding was that it was maybe a bit more Professional is core and more of the consumer stuff that you now mentioned would be less important. No, that was a very helpful clarification. Secondly, Glen showed the net debt to EBITDA graph of currently at 0.9, and you recently did the Blastrac acquisition, and I guess it's safe to assume that acquisitions will play a strong or key role going forward as well when it comes to construction. Has anything changed in terms of your thinking about M&A outside the construction segment, given that we now have the financial resources, and there's maybe, I don't know, if there are more opportunities, less opportunities, more attractive opportunities now after the pandemic. How have you reassessed your M&A thinking outside the construction segment? First of all, I believe that M&A is a really good tool to sometimes fast track your strategy. it's a tool that we have used a lot in construction historically, and it's clearly something that now it's also time for us to at least bring into the toolbox for the other two divisions. As you know, the other two divisions comes from it being established as divisions, basically taking over what was left of consumer brands, et cetera. They have really not had the opportunity and the bandwidth to add things to the toolbox. I think now we are getting into a next phase where that tool also should be in the toolbox for Husqvarna and for Gardena. That's something that we will be looking into, but not because of M&A on its own, but because we think it could be a good opportunity to fast track the strategy that we do have. From a target perspective, I think that the construction industry and the segments that we are active in is more fragmented, generally speaking, than the larger forest and garden business and the forest and garden industry. There are probably not as many targets as in the construction space, but that doesn't mean that there are no targets. It's something that we will look into going forward. All right. Thank you. Finally, a follow-up on the professional opportunity in lawn care. You mentioned that you are excited about the opportunities, and it's more that you have to prioritize rather than you would have to select. If we specifically look at the EPOS product segment, and you mentioned that you are now starting really the commercial rollout of that. When it specifically comes to EPOS, which customer categories do you feel that you should start with? Maybe I'll just stop there and let you take over. Yeah. It's a little bit different also market by market, depending on where the opportunity sits and so on. Generally speaking, we see opportunity around different kinds of sports fields. We see opportunity around bigger complexes. It could be a big museum, it could be a senior citizen home. Those kinds of things where you can have this. We also see opportunity with golf. The difference with golf is that golf is very, very particular and very, very specific. We can probably take certain tasks on a golf course that we could deliver on. Whereas when it comes to some of the other applications, we can complete all the tasks. It's a bit different from that perspective. I would say that opportunity is really across, and we just need to set a very clear focus market by market, what we want to go after based upon where we think we have the biggest opportunity. Is there any difference on whether the owner is operating themselves on the lawn care or if it's outsourced to someone else? It can be different, but it doesn't have to be different. that's why we also look into a lot of the different business models. One is, of course, if you manage the area yourself, then normally you have your own staff that's doing this. There's a lot of discussion about how can you use the labor to do the value add things, taking care of the flower beds, taking care of the bushes, the trees, and those things instead of cutting the grass, so to speak. You need to have one kind of discussion. Many times they also have service on their own, and then you need to set up your business model in one way. Whereas when you work with a landscaper or a contractor, there's a tendency, first of all, that they move around more, of course. They might not want to have the equipment permanently on one location than the other. Of course, EPOS becomes very important and things like that, even CEORA, because you can then use a bigger product that can make the lawn much quicker than a smaller product that might have to be installed for a long period of time. They don't as often have service themselves, we need to tie that more into our dealer network and how we can support with service and so on. It will be different, but the opportunity is still equally there. It's just that we need to craft the value proposition accordingly. I guess that's what I'm trying to say in a roundabout way. Perfect. Very helpful. Thank you. Our next question comes from the line of Fredrik Ivarsson from ABG. Please go ahead. Your line is open. Thank you. Two quick ones from me, if I may. First one, if we can come back to the raw material prices. From another angle, I think we see quite hefty price inflation within the DIY market at the moment. I wonder whether you maybe have been able to raise your list prices as well. That's my first question. Yes. Of course, a lot of our pricing happens in the fall as we go into the year. It's absolutely we're in the process of reviewing pricing. In some cases, we can make in-season price adjustments, and where we can, we will. I think that's the best way to put this, how we're seeing it. We fully expect actually stronger price increases than we previously committed to. Great. Thank you. Second one, coming back to the market strategy within robotics in the U.S. You mentioned that you're focusing on specific markets. Just wondering if you would be open to share which market that might be. Yeah. Of course, the grass type is very important to us, and of course, where maybe the robot is more appropriate, and hence we make actually some additional models for the U.S. market, which we call the high-cut models. The same for gasoline-driven machines as well, by the way. Certainly, we're focusing on New York, New Jersey, the Carolinas, Alabama, Texas, Atlanta, Florida states. If I can name a few. It's more that Eastern Seaboard to a large extent that we're focusing on initially in North America. We're putting additional focus on is a better way to put it. Okay, I think we have time for a final question. We are starting to get close to 11:00 A.M., but I think, operator, do we have a final question over the queue? Yes. Our final question comes from Johan Eliason from Kepler Cheuvreux. Please go ahead. Your line is open. Yes. Good morning. Good morning, Johan. Did we lose Johan? Did we have a hard stop? I think we did. Yeah, he- Yes probably dropped out. It seems like Johan has disconnected. Do we have another one in the queue then, operator? Yes. We have a question from Christer Magnergård from DNB Markets. Please go ahead. Your line is open. Two follow-up questions from me then. You mentioned that you've hedged the raw mats in Q1, oh sorry, H1, and that the bulk of it will come in the second half. If we assume that the raw material price will remain on the current levels, we will see a similar headwind in the first half of 2022 as we do in the second half of 2021. As it stands, Christer, yes, that would be a fair assumption right now. Thank you. The second one, in the first quarter, given the strong demand and bottlenecks in the value chain, et cetera, have you been able to prioritize products with higher margin than you would normally do? I would say we have had a good mix period, mainly because of a demand perspective. When we have been forced to prioritize, that has been mostly prioritized for us, meaning that we haven't had components for the time being. I would say generally speaking, the demand is coming through with a good mix. Okay. Thanks. Thank you very much for that, Henric and Glen. I think we have reached now 11 o'clock, and with that, we'll close the call for today. Please do not hesitate to reach out to us in the IR team if you have any other follow-up questions. Just noting that we have a roadshow presentation tomorrow arranged with SEB, and then with the DNB on Monday, if you would like to have further meetings or listening to the group calls. With that, we close the call for today, and thank you very much for listening in.