Good morning everyone, welcome to the presentation of Husqvarna Group's report for the second quarter 2021. My name is Johan Andersson, responsible for investor relations at Husqvarna Group, and I will be the moderator here today. On the call, we have Henric Andersson, our President and CEO, and our CFO, Glen Instone. Henric and Glen will present the report, and afterwards we will open up for questions. Let me also remind you that this session is recorded and will later be published on our website. With this, I hand over to Henric. Thank you, Johan, and also a warm welcome from my side. We delivered a record strong quarter here in the second quarter, and we can see a strong and increased demand for gardening products. We can also see that the construction market is continuing to rebound from a quite challenging situation last year. Very good to see that we have a solid performance in all the divisions and in all main regions and in the vast majority of the core product segments as well. It's a strong performance across the board. Of course, an important part of what we do is to execute our strategy. Today I will take the opportunity to talk a little bit later about two very important product introductions that we did during the second quarter that really sets a new trajectory for us and opening up new opportunities in the future. With that very high-level summary, maybe we zoom out a little bit before we go into the details and look at our performance over time. It's important to bring things into context sometimes. What is evident looking at this graph is that we have purposely built a stronger Husqvarna Group over a number of years, where we have really increased our focus on the vital few brands and product segments that have the biggest opportunity for the future and that are truly important to the company. That has also led to us reducing our focus in certain areas and even to exit others. Looking at 2020 and the last 12 months rolling, we are clearly above our 10% target, which is our target to be clearly above 10%. There's of course an element in this of benefiting from the increased gardening interest stemming from the stay-at-home trend. Fundamentally, we have also improved the company over the years by purposely changing the mix, and that is giving us this kind of a performance. If we now zoom in, looking at the quarter from a revenue perspective, we have organic growth of 14%, amounting to SEK 14.6 billion, and we have strengthened our positions in general. We have strong performance in the main regions and in prioritized strategic segments. Strong performance, as I said initially, across the different divisions. Husqvarna is up 18%, Gardena is flat, Construction is up 31% organically. Let me spend a second on Gardena being flat. I think that is a remarkable performance given that the weather has not been favorable in the core market when it comes to irrigation products, comparing to an exceptionally strong quarter last year. That's because of the really good and solid growth Gardena has been generating in the focus markets, primarily in Southern and Northern Europe. We have delivered on this growth despite global supply chain constraints. Let's not overplay that. Of course, the growth could have been yet a little bit higher if we wouldn't have had those situations. From an operating income perspective, we increased this by 21% to SEK 2.6 billion, or just over 18% of sales, largely driven by revenue growth, by price increases, and improved mix. This despite the pressure from high raw materials and logistic costs. Our financial position is strong. We strengthened it yet again during the quarter. The direct operating cash flow for the first half here is just above SEK 3 billion. We have continued to reduce our debt during this time. If you look at the net debt/EBITDA, it's now decreased to 0.7x, which is a very strong position to be in. Very good to see is the development of Robotics and Battery. This very important segment grew 27% during the second quarter, about twice the growth rate of the group average, and now accounts for 18% of the total. We can see growth both in the residential and in the professional segments. The professional segment is no longer just significant from a growth rate perspective, but also start to become significant from an absolute amount perspective as well. We have here a solid pipeline when it comes to new product introductions, et cetera. During the period, we unfortunately also experienced a quality problem with robotics affecting a large number of customers. This is something we take extremely serious, and it's our number one priority to resolve this as quickly as possible. We truly apologize for the inconvenience that we have caused our customers and trade partners inside of this. We are largely through this now, and over the next couple of weeks, we would have a solution for each and every customer here. With that, as a summary of the quarter, I hand it over to Glen to provide some additional detail to this. Thank you, Henric, and welcome all. A little bit more detail on the numbers as Henric says. We start off with the Husqvarna division. Of course, we're extremely satisfied. Our net sales grew by 18% organically, and actually from a first half year perspective, that was +20%. We had a strong growth in all our regions, and all of the main product categories, notably in robotics and handheld products, both petrol driven and battery driven. All regions have shown a strong growth in the quarter, particularly strong in emerging markets and our European region. This is the largest sales quarter for the division, and despite the supply chain challenges that we've had this year, organic sales growth, as said, we managed 20% through the first half year. Husqvarna CEORA was formally launched in the quarter. We've teased this a couple of times. We formally launched our CEORA product in the quarter, that has been extremely well-received, and that is a pro-robotic mower designed for demanding pro applications that cover very large areas. That functions with our EPOS technology, a satellite-based navigation system that enables us to mow with virtual boundaries. That launch really truly emphasizes our commitment to sustainable technology and automated innovative future. The operating income for the division grew in the quarter. We went to 17.4% EBIT, actually growing with 42% overall, coming up from 13.4%. An impressive leverage on that sales growth from the division. Same across the board, we've increased prices, we've also had a strong product mix. There was a slight headwind in the division from FX, SEK 55 million in the quarter, RMI was approximately SEK 75 million as a headwind, we also had further logistics headwinds. On a year-to-date basis, I could say it's a pretty much copy-paste of what I said for Q2. Strong growth as already mentioned, growth in all regions. Operating income actually increased by 50% to 17.4% from 12.8%, with a strong leverage from sales growth, price increases, and product mix. On a rolling 12-month basis, the division therefore grows by 20% on a top-line perspective and has an operating margin above 13%. Moving on to the Gardena division, another strong performance. The division continues the growth journey that we have seen for several years now. Sales were strong in our strategic focus markets of Northern and Southern Europe, which offset the late start to the watering season in Central Europe. Still, we managed to maintain a flat sales development comparing to a record Q2 last year for the division. We actually had strong growth in all product categories, not just watering. Outside of watering, we had a strong growth in robotic lawnmowers and hand tools, where the division continues to strengthen its market positions. There was a decline in watering, I should add there, given the late start to the season in Central Europe. The solid mix and price increases were partly offset by increased raw materials. Raw materials for the division was approximately SEK 60 million in the quarter. We've also continued our strategic investments, notably in brand and e-commerce activities during the quarter. Still, we managed to generate an operating margin of some 25.2%. On a year-to-date basis, despite the flat sales in the quarter, +15% sales through the first half year, the earnings for the division have increased to 22.1% year-to-date and benefiting from the solid growth, solid mix, and partially offset by the headwinds of FX, which was SEK 40 million, and raw materials at SEK 80 million. Looking at the rolling 12 months performance, we actually have a 15% sales growth and generating 15.9% EBIT margin. Extremely pleased with that. Moving over to Construction. A strong rebound, as Henric says, or a continued strong rebound with an organic sales growth of 31% in the quarter. Actually, we had a further acquisition benefit from Blastrac that we acquired there at the year-end that would have generated a further 13%, or did generate a further 13%. Organically, 31% sales growth. The market has improved for the construction industry again during Q2, and the division continues to improve its market positions in all of our main markets. The operating margin improved significantly to 13.7% from 9.9% in Q2 last year, driven from the strong sales growth, increased pricing, and the improved mix, notably power cutters and light compaction solutions. As per the other two divisions, we see headwinds in FX. It's SEK 35 million for the division and also logistics headwinds, with a slightly lower impact from raw materials impacting construction. Year-to-date basis, organic growth 23% and generating a 13% EBIT margin. On a rolling 12 basis, sales are now +12%. You'll remember we were at a somewhat flat position at the end of Q1, so we've gone from a flat rolling 12 to a +12% on a rolling 12. The operating margin is now at 12.7%. Moving over to the EBIT bridges for the group, hopefully these are well received. We actually had a very strong market-driven improvement, a 21% growth overall in operating margin. The market-driven improvements generating some SEK 700 million. Pricing was also positive in the quarter of SEK 155 million. That represents approximately 1.2% price increases, which is very much in line with our previous guidance that I'll come onto on the next page. We continue to expand in our strategic initiative areas. This is approximately SEK 165 million in the quarter. Somewhat similar there to the pricing figure I quoted of 1.2%. Just to put that into the gross profit and SG&A buckets, it was approximately SEK 70 million in gross profit and SEK 95 million in SG&A activities. Raw materials gave us a headwind in the quarter, SEK 140 million. Again, I'll come onto the full-year guidance on the following slide. FX was negative in the quarter to the tune of SEK 80 million. Again, that sits about SEK 130 million negative in the gross margin, and a positive in the SG&A. Our full-year guidance is in line with previous expectations on FX, where we are thinking SEK 300 million-SEK 350 million, and it's probably at the lower end of that guidance as we see it today. Moving on to the half-year bridge. Then I can really flavor with the guidance. The big increase there, of course, is the market-driven improvements, SEK 1.7 billion positivity, which we're really pleased, and that's really the strength of the increased market positions, the strong growth, but also the profit pools, as Henric alluded to, that have grown well during the first half year. Price increases, we are now at SEK 270 million. That represents about 1.1% of sales and very much in line with our previous expectation. We would expect this can more or less offset our raw materials headwinds across the full year. A guidance of something in the magnitude of SEK 500 million. Strategic initiatives, SEK 260 million during H1. Again, just splitting that down into the two areas for you, SEK 95 million in the gross profit and SEK 165 million in SG&A. Raw materials went negative in the first half year. It was SEK 40 million in Q1 and SEK 140 million in Q2, SEK 180 million on raw mats. We actually revised our previous guidance on raw materials upwards. We now think it is going to be more like SEK 500 million-SEK 550 million from the previous guidance of SEK 350 million-SEK 400 million. That would leave us a headwind of SEK 300 million-SEK 350 million in the second half year. As said, we expect our pricing should more or less offset our raw material headwind across the full year. FX SEK 215 million negative in the first half year. As said, guidance of SEK 300 million-SEK 350 million, more likely on the low end of that spectrum, a further SEK 75 million to maybe maximum SEK 125 million to come in the second half year. To remind, of course, 2020 was a special year for us in terms of seasonality, more so in terms of sales, where we had 22% of the annual sales going through in Q3. That was really a periodization effect. I just want to remind you of this, also, of course, we had extremely strong earnings as a result of that strong sales. We'd expect somewhat normalized conditions during Q3 this year, especially comparing to the 2020 year. If we go to our cash, continues extremely strong. We've actually generated over SEK 3 billion in positive direct operating cash flow, comparing to SEK 2.3 billion at the same point last year. There's actually a slight negative from the acquisition effect into this as well, of about SEK 270 million. Excluding that, we'll be nearer SEK 3.3 billion. Of course, the main movements are the strong EBITDA, generating some SEK 1.3 billion more than prior year. We have increased inventories during the period compared to the same period last year, partially because we put the brakes on last year when Q2 was very uncertain. We're also now increasing our component inventory ahead of our second half year and also preparing for the coming season. We've increased componentry with SEK 800 million. Accounts receivable actually lower than last year despite the higher sales, that is really down to the periodization of the sales in the quarter. Last year, very strong sales at the end of the quarter, therefore still sitting on the balance sheet. This year, stronger sales in the first half of the quarter as per our normal seasonality, therefore that cash has been received already. Payables increase in line with our higher inventory levels, ultimately, we see that. CapEx, I would say, is pretty much identical to prior year at SEK 830 million. We will maintain our full-year guidance on CapEx, where we feel it will be around about SEK 2.4 billion or around about 5%-5.5% of net sales. Moving on to capital efficiency, extremely strong performance again, of course, significantly supported by the strong sales, also strong improvements, as I alluded to, on accounts receivable, accounts payable in particular. We would expect this to start flattening out and probably increase a little bit as we go through the second half year, certainly well within our 25% target levels that we talk about. Just quickly on the balance sheet. Of course, extremely strong financial position. The main items probably to call out there are inventories. Inventories are up some SEK 700 million as reported, or 8%. Actually, slightly positive on the FX. It would have been slightly a higher increase in like-for-like FX. Again, our inventory is very much in line with our plans. We are now preparing for Q3 and Q4 and also season 2022. As I said, we have increased some SEK 800 million in component inventory. Also around about SEK 200 million of Blastrac inventory in there. Receivables, I mentioned, is largely the periodization and payables also. Just on the debt situation, we paid down some SEK 2.7 billion of debt in the quarter. Actually, since the quarter end during early July, we've paid down a further SEK 1 billion of debt. Moving over to the ratio, therefore, of net debt/EBITDA. As Henric mentioned in the intro, we are now at an extremely healthy 0.7. This leaves us in a good position going into the second half of the year. Of course, the main benefit versus last year, really the result of the cash flow from operations, generating some SEK 6.5 billion positive. Net debt in absolute terms down to SEK 3.4 billion, and ultimately that is our pension and lease liabilities would make up that number. At that, I will pass back to you, Henric. Thank you, Glen. Let's spend a few minutes on the strategy and executing strategy. I would say our clear sentiment is that we are executing well on a winning strategy. I will not go through the components again since we have done that in previous calls, but rather highlight two pivotal product introductions. Starting with CEORA, Glen gave quite some details as to what the product is. Let's now put it a little bit into context. Just like we have disrupted and transformed the residential market, we, with this product, set out to do the same when it comes to the professional turf industry, which is a very big market segment. We, of course, already now selling quite a few robotics into the pro market, but this platform is really the first truly dedicated platform that we have purposely made for that industry. We launched it to the market in that sense that we showed it on June 22nd. We have received very good response from customers here. They see the same things we see when it comes to how this can actually support several ongoing trends. There's clearly cost pressure in this industry. This is a way to reduce operating costs. This is also a way to get to zero emissions, meaning that eliminate carbon in this market segment. It's also a way to provide a silent or low noise solution into these many times very public spaces. There are several trends that this one will meet or can really benefit from, and that's also the response we get from the market. Pivotal introduction, where we now set off to also disrupt and transform the commercial turf industry. The other introduction that's very important is the K 1 PACE. This is a new standard of battery power cutters. As you might know, in the Construction Division, the most important product is the power cutter and also the product that to a large degree has defined the brand in that market segment. It's also in an application that consumes a lot of energy. Here we have developed a brand-new battery system, 94 V, that can complement our other professional battery system that is 36 V, to basically enable us to step into applications that require more energy, that are a lot more demanding. Here we can actually bring to the market the first battery power cutter that have petrol-like performance. This is really now giving the Construction Division the opportunity to build a strong battery offering. Two very important introductions, not just as products, but as how they have the possibility to open up new markets for us. As you can see, looking at the strategy to the left, that it's clearly in strong support of our strategy. Shifting gears. When it comes to the strategy, spending a little bit time on sustainability and our commitment to sustainability. As you know, we have three targets: carbon, circular, and people. When it comes to carbon, the target is to reduce our absolute CO2 emissions by 35% across our entire value chain, meaning scope 1, 2, and 3, relative to our 2015 baseline, and this is also our science-based target. Here, we are making progress and we can actually take the next slide immediately, I think, Johan. We are now at 30% reduction. Some of you might recognize that, why do you say that you're making progress when that number was 32%, or whatever it was here in the last meeting? This is just a natural evolution with product mix that was a little bit artificial during COVID. For instance, construction, that has more carbon still because we are not as far along with battery, was depressed last year, it is now bouncing back. Those kinds of things. We are clearly progressing towards our 35% target. When it comes to circular, it is really about how do we reduce the extraction of virgin material? We want to link this to our innovation capability and have made a commitment to launch 50 circular innovations by 2025. Far, we have no launched innovations, that's also according to plan since there is a little bit of a lead time from you launch this program until you start to see things come to the market. This target will be a little bit back-end heavy, so to speak. We have the people target, where it's about to empower 5 million customers to make sustainable choices. This is a target where we will have the measurement in place towards the end of this year. We're getting towards the end. If I summarize the quarter, we experienced strong and increased demand for our leading products, we can see that the construction market is rebounding. We have a strong performance in the quarter. It's a record performance, it's across all divisions and regions. Rolling 12 sales growth is 17%, and rolling 12 operating margin is 12.9%. A very strong performance as such. As we just briefly discussed here recently, we are making significant progress in our strategy execution, and we had two very important product introductions here during the second quarter that opens up opportunities for us for the years to come. Before I hand it back to Johan here, and we can have some Q&A, I would just like to highlight here our save the date for December 1st, where we will invite to a Capital Markets Day. It will be in Stockholm, and it will be a physical meeting. That's at least what we are hoping and aiming for. With that, Johan, over to you. Thank you very much, Henric and Glen. With that, we are ready to open up the Q&A session. Please, operator, start the Q&A session. Yeah, thank you. We have our first question from Fredrik Ivarsson. Please go ahead. Thank you very much. Good morning, guys. A few questions from my side, if I may. Firstly, I guess you mentioned pressure on the supply chain, and that's not the first time you mentioned that, but I think it sounds like you're a bit more concerned about the situation now. Is that correct, and has it become even more tangible over the last months? If you could maybe talk a bit about the magnitude of that situation. I wouldn't say that it is necessarily more severe now than before. We have really experienced quite some challenges throughout this entire pandemic. Of course, the challenges have very much changed in nature over time, but it's something that we have experienced all the time. I must say that generally speaking, we have been very good at mitigating them, so they haven't become material. Let's remember that we have been able to meet a strong demand, and we are up 14% in the quarter. In robotics and battery, we are up 27%, as an example. However, that could have been yet a little bit higher if we didn't have this situation. Also our backlog is higher than it normally is. Okay, good. On the CEORA platform, if you could talk around your capacity here, what does that look like if you would try to quantify that? I think it's too early to quantify the ambition there. I think here early on, we need to zoom out a little bit and more look at a very big, very large commercial turf business. We will try to disrupt that with something that's radically different. Of course, that will require quite some effort and some time, just like it did on the residential side, until you reach sufficient penetration, so you reach a tipping point where the whole thing sort of snowballs, if you see what I'm saying. I think this has huge potential for us going forward. However, we need to have realistic expectations in the first few years. Okay. Fair enough. Thanks. Last question from my side. I think you mentioned the European and emerging markets as the key drivers. A bit surprised not hearing strong words about the U.S. market. Can you give some color on what you saw over there? Yeah, we still have a growth in North America, absolutely. A double-digit growth still, Fredrik, but it was even stronger in emerging markets in Europe. All double-digit growth actually in Husqvarna division that was in relation to. Okay, great. Thanks. That's all my questions. Operator, do we have the next question? Yeah, sorry. We have next question from Christer Magnergård. Please go ahead. Hi, Christer Magnergård from DNB. To start with, on just the raw material costs you guide for, it's about 2.5% ish of sales in the second half of 2021. Given that raw material prices, and especially then steel, are continuing to move higher, can you say anything about what we should expect for next year or the first half of next year, at least? Is the 2.5% of sales a good proxy, or could it be even higher than that? No, I think, Christer, we've got two dynamics, of course. This year, in the first half year, we will benefit it from the hedges we had, particularly on steel. We had about 80% of our H1 steel consumption hedged, which was good, so we had limited impact. Now basically we'll take the H2 rates and flush them through to H1 next year. It can be a similar magnitude to what we talk about for H2 that could hit H1. We've had steel impacts in H1, of course, as you know. I would probably, if we're going to guide, think about a similar magnitude to what we say for H2 for H1 next year. Yeah. In terms of promotional activities in the first half year in 2021, can you put that into some kind of historical perspective? Is it on normal level or is it lower promotions than normal? Yeah. Against the normal, historical norm, Christer, then I would say it's probably a little bit lower. We had a very low level last year of promotional activities for obvious reasons. We put the brakes on, and then when demand came, there was no need to overpromote. This year, we wanted to do more promotional activities going into the season, which we did. As Q2 has come through, it's probably still a little bit lower than we've seen against an 2018 or 2019 type year. Okay. There's a question on construction. EBIT margin was, of course, higher than in Q1, from a historical perspective, it was quite low compared to a normal second quarter. Is it a result of Blastrac integrated, or is it difficulties to pass forward the increased costs, raw material costs, logistic costs, et cetera? No, you're spot on. The Blastrac integration, where we've seen good sales there, contributing some 13%, 14% to 13% to the Q2 sales. That is dilutive at the moment to the construction division EBIT margin. It's still positive. We clearly aim that it will be at the division average over time. That is really the diluting factor, I would say, is Blastrac so far. Great. Final question. Other costs have been higher both in Q1, Q2. I would guess that relates to both higher activity and also variable compensation. Can you comment on how we should look at that row going forward? Yeah, you're right, that's why it's higher, Chris, you're spot on. It's higher due to both the short-term and long-term incentive programs that we've been providing for. We would expect in the second half-year, that stabilizes to a normalized rate in the other cost line. What would be the normalized rates? Well, I say front loaded, of course. We try to have revenue recognition and cost matching as best we can. We're taking costs in line with the higher Q1 and Q2 sales. Therefore, would expect it to be in relation to the sales is the best way I can probably talk about that. Okay. Thanks. We have another question from Gustav Hagéus. Please go ahead, sir. Thanks, Gustav Hagéus with SEB. Good morning, guys. Two questions. Firstly, I think you mentioned in the report that your ability to supply the market was perhaps a bit lower than demand. Does this mean that you lost market shares or that those volumes will come back to you in Q3, and they'll be able to build a longer season? How do you think that will play out? It's always difficult to be precise on that comment, but I would say that we have a little bit of both, depending on market and product segment. There is a larger or smaller degree of the customer moving to something else or the customer's waiting. I think there's an element of both, and that's why also we're bringing a backlog larger than normal with us into the third quarter. When you look at channel inventories, would you say that they're still low compared to normalized levels? I would say that they're on the low side versus what is normal, yes. Okay. Secondly, regarding capital allocation, as you mentioned, basically no financial net debt, historically low compared to EBITDA, while I assume your borrowing costs are also historically low if you were to gear up. Could you talk a little bit about optimal capital allocation in your balance sheet and where your priorities lie going forward? That's a question we were expecting, Gustav, so I guess I should take it. No, of course, we are at a low level right now. If we talk about our financial rating of BBB, then we could probably have a net debt/EBITDA ratio of somewhere like 2.5x should we want to go that far from a leverage perspective. It does leave us with a significant amount of firepower. I think ultimately it's a question you'd have with the board, but of course, we as a management team will guide and give advice as we see fit. I think we should come back to this, particularly during the Capital Markets Day, how we see our future use of capital. Okay. I appreciate that. Thank you. Our next question is from Björn Enarson. Please go ahead. Yes. Thank you. I got a question on, you were referring to the backlog. Björn, if you can speak closer to your phone, Björn, if that's possible. Yes. Is this better? Still a bit low. Okay. I'll speak up then. Okay. On the backlog, on Husqvarna, and you talked about the higher backlog heading into Q3. Can you talk a little bit about what segment that is? Is that also relating to Gardena? That's the first question. The second one is on Gardena and regarding the situation in Germany and Belgium. How does it play out now? I guess July is a pretty important month for the watering segment. Thanks. When it comes to the backlog, I think it is fairly well spread across the different product segments. There are a few exceptions, but I would say generally speaking, we see something in all of them, also in construction. Therefore, we have a higher backlog than normal. Again, I do not want to turn this into a major problem. We have managed to accommodate significant growth, and we have managed to mitigate most of it. It's not necessarily super material. It is there. When it comes to the Gardena and let's call it the core markets, the challenge has been that there's been a lot of precipitation in those specific markets, meaning that the customer sentiment when it comes to watering and irrigation products has been lower than normal. I must say that I think it is a very strong performance to be able to offset that by growing in Northern and Southern Europe, and still match a remarkably high quarter from last year. And you talked about- No, I think you talked about, you led it into Q3, et cetera. Yeah, okay. I think that we haven't seen any big changes in the weather, so to speak. Of course, it's going to be highly unpredictable. Will it start to rain now or not? We are planning for the worst and hoping for the best, meaning that we need to make sure that we maximize sales in Northern and Southern Europe, and that we are ready to react if the opportunity opens up in the core markets. Okay, great. Thank you. We have no further question. Okay. It seems that we don't have any further questions at this point of time. We know that it's a very busy reporting day today here in Stockholm. I think with that, if you have any further questions, just reach out to us on the investor relation. I think with that, we thank you very much for everyone participating today over the phone and over the Internet. We wish you all a great summer. Thank you very much.