Hello everyone, and welcome to the Indutrade AB Q1 Report 2021. Throughout this call, all participants will be in a listen-only mode, and afterwards there'll be a question and answer session. Today, I am pleased to present CEO Bo Annvik and CFO Patrik Johnson. Please go ahead. Good morning, and welcome on our behalf as well. We are obviously pleased with the quarter one, and if we start with some highlights from the quarter, we can say that when we thought about this quarter, we knew that we had a fairly difficult benchmark from quarter one a year ago. Now we can summarize and see that we basically beat that quarter on all relevant points, which is comforting and positive. As I've said before, we have worked with some key priorities since the pandemic outbreak. It's involving obviously the employee health and safety dimension, and then safeguard our profitability and capture business opportunities. I think we are living up and delivering on these three points in a good way. We summarize the quarter very briefly, and we will go into more detail on all these points, but improved general demand, positive, more broad-based, and the organic order intake was +5% and +3% in terms of net sales organically. We still see continued variations between company segments and countries, but more of a broad-based improvement. We had a record high EBITA margin for quarter one. We saw a very strong cash flow, and we also saw improved working capital efficiency, which is something we are prioritizing and working with. Despite the pandemic, we were able to finalize five acquisitions, and we are still positive and optimistic about further acquisitions down the line. If we more focus then in detail on the order intake. In quarter four last year, we had a good organic order intake of 7%, and in total also 7%. As I said before, quarter one in 2020 was also strong. There was also an organic order intake of +7%. Now we are more or less at the same level, slightly lower at organic +5%. It's been good for quite a while, and it is continuing in a good way despite a difficult benchmark, I would say. It's more broad-based now, but it's driven by the MedTech and pharma segment. Within that segment, I would say that it's only to a smaller part connected to the pandemic. In order to single out some other positive segments, I would say that the infrastructure segment is good, certain parts of the process industry and also the wind power segments. If we should single out something which is a bit weaker, I would say aerospace and the marine segments are weaker. In the marine segment, we hear and read about more sort of orders for new ships being built. I guess eventually they will need equipment and components that some more companies are working with. There is light at the end of the tunnel, I would say. Aerospace, we also see some positive signals, but perhaps that's even a step behind the marine segment. Some of you know that we have a larger company working with high-pressure valves for the power generation industry, and I would say that their order intake was in line with the last two quarters, but a bit lower than Q1 2020, which then was a very strong quarter. If we talk about business areas, standing out then was the measurement and sensor area, and also fluids and mechanical solutions. Within those areas, I would say it was a fairly broad-based improvement. The weakest was in the U.K. and in flow technology. Flow technology was still good numbers, I would say, but had a very difficult benchmark due to great order intake a year ago. The U.K. is suffering, I would say, a bit from the pandemic, obviously, and a lot of shutdowns and also to some extent the Brexit effects. We saw at the end of the quarter in the U.K., basically in March, a strong sort of improvement. Hopefully quarter two will be starting to become better there. A positive book-to-bill order intake was 12% higher than sales. If we just sort of take the numbers in detail here. Total order intake growth + 6%, organic growth + 5%, acquisition effects + 6%, divestments - 1%. Then we had a fairly strong currency headwind, which was - 4% in the quarter. Within the MedTech area, we have an area where we focus on single-use components, basically assembled in clean room environments. We have establishments in the Netherlands, in Germany, in Ireland. We are now extending capacity in this area. It's growing and it's a great organic initiative, which is delivering profitably. We can talk a bit about sales. The organic sales improvement was a little bit lower than the order intake. Sales was +3% versus last year. Acquisitions contributed with 5%. Again, divestments -1%, and the currency impact was -4%. If we analyze invoicing days in this quarter versus a year ago, I think it was one less day, and that can equate to approximately 1.5% impact, give or take. For some companies, that's very important, and for some, it doesn't matter so much. We are basically 3%. We are at the same level as in quarter one last year and also sequentially from quarter four. Organically, we are growing sales several quarters here now with around 3%, which is a good level. If we look at markets in a geographical perspective, strongest development in Denmark. Denmark has a good MedTech industry and pharma industry, partly driven by that. We also have some other measurement-related companies which are also developing well. Otherwise, I would say Scandinavia, Norway, Sweden, but also Germany and the Netherlands were positive versus last year. Weaker countries would be U.K., Finland, and Switzerland. U.K. I already mentioned, and Finland is very much a base industry, process industry, CapEx-driven, and suffering from the pandemic. We cannot really be out visiting these process industries. Also a fairly harsh winter has also had impact in Finland. During the quarter, a lot of our companies experienced longer lead times from suppliers impacting deliveries and invoicing. In this quarter, our estimate is that the impact was limited. It will probably be more of a challenge in quarter two, but I'm also optimistic that our companies are used to this, and they usually handle the situation in a positive way. If we then turn to EBITA, we had a great development, and as I said, all-time high in terms of the EBITA margin for quarter one at 13.9% versus 12.4% last year and a growth of 16%. Organically, EBITA increased 12%, acquisitions added 9%, and currency was - 5%. The majority of the short-time work programs are discontinued now, and the financial impact from governmental support was very low this quarter, so rather insignificant. On top of the longer lead times I spoke about, we and our companies are noticing price increases for raw materials and some components, also for freight. Again, minor impact this quarter, potentially a higher impact next quarter. Also, as I said, I think we are used to handling this in a good way. If we then turn to the sales situation for the different business areas, as I mentioned earlier, you can see also on the graph here that there is quite a lot of variation between company segments and countries. The positive development in Benelux was mainly driven by the MedTech and pharma segments, also general engineering sector improvement. As I said, valves for power generation. Well, actually, I commented on order intake before. Sales was quite good for valves and power generation. The reference for Q1 2020 was also a little bit weaker. In business area DACH, we gladly saw a good improvement in the German engineering sector. Some of our Swiss companies had lower sales this quarter. I don't think that's due to a weak Swiss industry in general. More some particulars in these companies, hopefully this will develop better going forward. Business area Finland noted the largest decline, as I said, base industry, CapEx-driven, not so many new projects started, also obviously impact from the pandemic and a cold winter. If we then turn to business area Flow, was good during the quarter, was slightly lower than the high levels in the beginning of last year. That area is developing well. The companies have clear strategic plans, I have good comfort in business area Flow. Fluids and Mechanical Solutions, good improvement, broad-based, I would say. Perhaps a bit driven by some companies we have focusing on the automotive aftermarket. Some companies held back in the infrastructure segment due to the cold winter. We'll see better development there. Really standing out is business area Industrial Components, very strong sales. It's primarily related to MedTech. Here we saw some COVID-19 positive effects. Because they have one company with a large order and also delivery in the quarter for ventilators. Also they experienced a more broad-based improvement in the general industry, I would say. Business area U.K., for the most part of the quarter, challenging conditions. As I said, clear improvement in March. Hopefully now we'll see U.K. progressing step by step in a better way. If we turn to the profitability for the business areas, it's comforting and positive to see that seven out of eight areas improved the EBITA margin. The strongest improvement was in the business area Industrial Components. As Indutrade Group, they also had an all-time high quarter one margin of 16.1%. Again thanks to many companies in the area, but particularly to the MedTech segment and some positive COVID-19 impact there. High increases, more than a percentage point was also delivered by the business area Benelux Fluid and Mechanical Solutions, the measurement area. On back of their organic sales growth, you can say that they also have good cost control and delivering a good EBITA margin. In general, I think we have good cost management. As I said, low governmental support this quarter and a bit lower short-time work. Also comforting and positive that the newly acquired companies are supporting the EBITA margin in a good way. I will comment upon them a little bit later in the presentation. The only business area with lower EBITA margin was the U.K., and it's basically driven by unfavorable product mix and the more difficult business conditions as I have elaborated on already. We have five new companies into the Indutrade Group. One Finnish company called Pistesarjat Oy, working with advanced cable systems to basically prevent frost issues, and they work with heating linked to the construction industry, predominantly in Finland. Very established company, well-known brand name, and we see a positive development also potentially outside Finland due to their market position and offering. As many of you know, we have had Germany as a strategic priority in terms of acquisitions. We were very happy when we concluded the acquisition of Tecno Plast Industrietechnik GmbH. It's a big building block in this MedTech priority, I would say. They have single-use modules, and they have a couple of clean rooms, and the order book is full, and really very positive outlook and also positive synergies with other companies in the group. Then actually three companies in the Netherlands. Fire Proof BV, working with passive safety systems equipment components, also having a great development. Typhoon Roertechniek Group, they are working with mixing equipment systems, both for MedTech pharma, but also FoodTech and other segments. Efcon Water B.V., also a company in a great segment which we like, wastewater and sampling systems for this area. Almost SEK 500 million in additional turnover. As I think I said before, the pipeline of new acquisitions is good. I think the COVID-19 is making it difficult for us to travel, visit companies, spend time with companies, but we now have local resources with full capability to manage this. Some of us can, at least in the neighboring countries, visit when we need to. I think it could continue well in terms of acquisitions going forward here. I leave the word over to you, Patrik, to comment more on the financials in detail. Thank you, Bo Annvik, and hello, everyone. Let's dive into the financials a little bit more. As you noted earlier, the total growth for orders was +6% in the quarter and +3% for net sales. Order intake was 12% above invoicing, so a good book-to-bill, and it's connected to a good demand development in several segments. It's not only attributable to the MedTech and pharma segments. Gross margin is slightly higher than last year in the quarter, and there's actually several factors contributing to this. For instance, lower manufacturing expenses, good price management from our companies, and a favorable product mix. EBITDA grew 16% in the quarter, and the margin improved to the Q1 record 13.9% versus 12.4% last year. Only, as Bo Annvik said, a limited marginal positive contribution from the governmental support in the quarter. Finance net is lower than last year, driven by the lower debt levels we have compared to last year. Tax cost in the quarter corresponds to tax rates of around 22%. That's basically in line with what we had last year. Earnings per share up 19%. On the return side, return on capital employed increased to 20%, which as most of you know, is in line with our Group targets. Cash flow was strong and improved with 16% during the quarter to SEK 489 million, and I'll come back to that a little bit more in detail soon. Lastly, the net debt/EBITDA are maintained on a relatively low level, 1.5x versus 2.2x last year. If we go over to the next slide and look at the cash flow more in detail. It is, as you can see also from the slide, seasonally low normally in quarter one, but it improved then with 16% to SEK 489 for the quarter. Working capital efficiency is increasing, and that's really comforting, encouraging to see. Mainly thanks then to inventories decreasing in the quarter versus last year. That's really good to see. If you look at the cash flow improvement versus last year, then that improvement is mainly driven by the higher result. Talking about the capital efficiency going further, we're still working with it and aiming to improve it even further, but the longer lead times Bo Annvik spoke about from suppliers are, of course, a slight headwind for some of our companies. Some of them are forced now to increase inventories slightly than to save customer service levels. A little bit of headwind in that area, even though our aim to improve efficiency further is still there of course. Looking at the earnings per share. As I said earlier, increased with 19% to SEK 1.27 versus the SEK 1.07 last year. The growth mainly comes from the strong EBITDA, of course, but supported by the slightly lower finance net. If you look at the earnings per share in a slightly longer trend perspective and look at the average annual growth the last three and five years, the numbers are +14% and 13% respectively. Net debt increased somewhat compared to year end due to the, as you noted, slightly seasonally lower cash flows and a good pace in acquisitions. Compared to last year, it's a big decrease. The reason for that is the underlying really strong cash flow and also that we did not pay any dividend last year. Net debt equity ratio decreased to 56% compared to the 85% last year. That's a low level from a historical perspective, especially if you consider that IFRS 16, the leasing regulation, has actually increased the ratio with around 12 percentage points. In summary then, our financial position is strong, and debt ratios are relatively low. At the end of the quarter, our short-term funding was SEK 1.5 billion, and we had long-term guaranteed unutilized credit facilities of around SEK 4.3 billion, so ample headroom. Finally then, I'd like to say that we obtained actually credit rating during the quarter from Standard & Poor's Global Ratings. As many of you know, we have been active for several years on the capital markets as an issuer of both commercial papers and bonds. As you also know, I guess, is that many investors have guidelines only to invest in publicly rated companies. It has been felt natural for us to go in this direction and apply for a credit rating to be able to further broaden our investor base on the credit markets. BBB- with a stable outlook which corresponds then to an investment grade rating, and I think that confirms our stable business model and our strong financial position. We are of course committed to maintain this investment grade rating going forward. Thank you, and by that I leave back over to you, Bo Annvik. Thank you, Patrik. Let's talk a bit about COVID-19 and the pandemic impact on Indutrade. You see on the slide here that we have summarized the key points and all in all, I would say it's fairly limited in the quarter. Obviously, we see light at the end of the tunnel linked to further vaccinations. Very positive. The first point talks about disturbances and disruptions in the supply chain. We have talked about that's a reality and a problem, but also in this quarter, fairly limited. As I said, can be a little bit more next quarter, but seems to still be manageable for us. Short-time work declined further, limited use among the companies and the majority of the furloughs were in business area U.K. When we had most of the furloughs in December last year, we had more than 800 employees at furlough and now we are down well below 100. We see a clear trend going down there and it will further decline in the next quarter. In terms of governmental support, it was marginal, I think around SEK 6 million all in all for the company and the Group. We still have some local restrictions and lockdowns obviously, but still manageable. The biggest issue I would say for us on Group level is in the acquisition perspective and difficulty to travel. We have had some companies with positive COVID-19 business effect, but still quite a few. To be more specific we have one company selling ventilators with a good business impact in industrial components quarter one here. In the single-use business I've spoken about some of that is also having a positive impact from vaccine development and manufacturing. Again lower part of that total business. Sustainability is important and we have an ambitious sustainability agenda according to ourselves which we launched in November last year. It's obviously in line with the Paris Agreement and we are really focusing to drive our business to be sound economically, environmentally and socially. We have these three main long-term objectives for 2030 within the people area, within the environmental area and within profitable growth. The last area might seem a little bit odd perhaps in a sustainability perspective. We are convinced that if you have a profitable company and a growing company it's also much more sustainable than if you wouldn't have that. Now we have defined what we call enablers and measurable KPIs below these headings which you can see on the slide there. We will now obviously measure this and follow up on this at least on a yearly basis, some of them a bit more frequently. If you're interested, maybe the best is that you read a bit about this in our recently published sustainability report which you'll find on our website. If we then summarize the quarter improved demand situation in several segments, very positive. Again then variations between company segments and countries. Record high Q1 EBITDA margin 13.9%. Gradual demand improvement expected but COVID-19 restrictions and supply chain constraints create some uncertainty. I would say I'm quite optimistic in terms of Q2 now. There is some underlying demand improvement more broadly and we have some clear segments which are very positive for us. There is much more upside than downside in a demand perspective as the year develops here I think. We are, as a group, I think, capable of managing revenue and cost levels in a good way. Cost will probably stepwise go up when activity levels increase linked to travel and things like that, but so will revenue. We will continue to manage margins in a good way. We have a good acquisition pipeline, as I said before. Started with five acquisitions this quarter now, and I'm optimistic that we will continue in a good way also going forward. All in all, we are a diversified business group, agile and flexible companies working very closely with customers. This has worked for a bit more than 40 years, and I think it's going to work for quite some years also going forward in a positive way. By that, we say thank you in terms of the more formal presentation, and we ask the operators to start the Q&A session. Thank you. Ladies and gentlemen, if you do wish to ask a question, please press zero and then one on your telephone keypad now. If you wish to withdraw your question, you may do so by pressing zero and two to cancel. I see the first question we have is from Carl Ragnerstam from Nordea. Please go ahead. Your line is open. Good morning. It's Carl from Nordea. A few questions from my side. First, a question on the ventilator orders which you received in Q4. Would you say that they were fully delivered in Q1, or should we expect some deliveries in Q2 as well? I would say they are basically delivered fully in Q1. Okay, perfect. Also with the global component shortages in many industries, application areas, and so on, would you say that there could be an inventory buildup effect from some of your customers in order to secure inventories? That's probably likely, and it's extremely difficult to assess how large that is. I would say that that's likely that there is some pre-buy or buildup. Yes. Again, it's very difficult to give you a number linked to that, unfortunately. Of course, I can understand that. Would you say that the effect would be more significant in Q1 compared to what you experienced so far in Q2? The later part in Q1 at least? I think it's going to continue, and I think the disturbances will continue in quarter two, maybe also in quarter three in certain component areas. The pre-buys or buildup will probably continue a little bit in Q2 as well if there's possibility for it. Okay, perfect. In terms of component shortages, you said that some companies experiencing longer lead times and so on. Have you seen gradual increasing problems with component shortages during the quarter and then also here into Q2? Maybe you mentioned it. Which product areas or segments are the most impacted by it? Yes. The impact in the numbers is fairly low in quarter one. The impact will be higher with a full quarter two. In business area measurement and sensor technology, they buy more electronic components than perhaps some of the other areas. They experience perhaps most of the difficulties. There is also difficulties in other areas. Okay, perfect. Many of our companies is, as you know, smaller, mid-size companies, and we are not high volume producers. It's more manageable for us than the automotive industry in a direct material perspective, obviously. Okay, perfect. Another, maybe this one will be quite challenging, but in terms of your EBITDA margin, of course, very high levels and very nice. It's up 150 basis points. You mentioned gross margin. It's only up 30 basis points in the quarter, meaning that it is G&A driven. Looking at sales up to SEK 100 million, selling costs down together with development cost SEK 45 million is quite an unusual development, right? How should we look at that going forward? Could you please just try to elaborate on it? Thank you. Yeah. We will see, and we have said stepwise a higher cost level, and our companies are usually good at balancing cost and top line. As you allude to, it's probably not going to have that full margin sort of effect as it had now in quarter one later on in the year. The new situation post-COVID-19 will also hopefully be a new normal. I really hope and our plan is that we will be more efficient, but maybe not up to the level where we are right now. Before the pandemic, we were at a certain margin level. After the pandemic, I hope the margin will be better than that, but maybe not at this level. Okay, perfect. Very clear. That will be a gradual, it's not going to be all happening from one quarter to another. It's going to have more of a gradual effect, I think. Counteracting that in a positive sense is that we are buying, successfully acquired companies with high profitability and good gross margins. We are also continuously working with trying to improve profitability. We'll see where all this ends up. It's definitely going to be better than pre-pandemic. Maybe not exactly at 14%. I don't know, Patrik, if you want to say something about this. I'm not sure if I can add much. I think cost will increase gradually, but also compared to last year, we will have a better sales development, and our commitment is trying to safeguard and continuously improve margins. I think another further steps from where we are now is difficult short term, of course. A sort of a flattening out of the margin sequentially is more of, I think, what you should expect. Okay, perfect. Very clear. That's all from me. Thank you. Thank you. Next question is from Johan Dahl from Danske Bank. Please go ahead. Your line is open. Yes, thanks. I have two questions, and continuing on this margin guidance, I think it just seems as if you've taken quite a bit different approach compared to when we talked to you three months ago on the margins. I'm just curious to know what's actually new behind that sort of margin view that you will be able to manage well compared to previously talking about lower margins. I also wonder where are you sort of steering the company in terms of margins? It sounds a bit like you'll see here what's going to happen going forward. What are the objectives set and where do you want to take this in terms of margins? The second question is on acquisitions. I see that you've done nothing in Sweden so far this year. Is there any particular reason behind that? Just talk about why this all seems to be happening outside Nordics. I think there was one acquisition in Finland, but it seems to be mostly outside of Nordics. Thanks. Well, if I take the last question first, no particular reason why we haven't made an acquisition in Sweden so far this year. Sweden is still an interesting, important market for us and would be very unlikely if we wouldn't make an acquisition here in the future. No strategic change in terms of that. In terms of the margin, if we exclude COVID-19 and the pandemic for a while, my ambition within Indutrade has been to deliver growth, be on this 10% level, at least on a yearly basis, and then try to improve margin on top of that, but not dramatically. I've spoken, I think sometimes about 0.5% EBITDA margin in a 24-month perspective to just give some sort of notion of what might be possible. Now we have a situation in terms of the pandemic where we have lowered costs significantly. Obviously we will try to manage this in the best way possible. There is margin targets on all companies along with growth targets. Don't get me wrong, I'm very ambitious and driven in terms of building step by step a better margin situation. I'm also cautious in the sense that we are at a cost level which is unlikely to be able to defend when we all can travel freely. I think some of our businesses, they have a business model to visit customers, walk around with customers in pulp and paper mills, steel mills, process industries, and basically detect areas for improvement in terms of efficiency, quality, productivity, and that's part of their sales model. That costs we have lived without successfully now for some time, but I think it will come when the pandemic is behind us. I think it is extremely difficult to forecast for us because we have so many different companies and many companies. For every quarter, we obviously want to defend the level where we are now. If you take quarter two, obviously there will be restrictions in travel and so on, so nothing much will happen in quarter two. I do not know, in quarter three, four, quarter one next year, if that is more the timing where markets will open up for travel and visits and so on. Nothing will happen. Do you see a need, Bo Annvik? Do you sense in the organization there's a need to make a step up in terms of recruitment and employees? You're flat on employees year-over-year despite orders up double digits. We have some businesses where we are increasing capacity both people-wise, equipment-wise, but it's not going to go extremely quickly and distort the ratios we have right now very significantly. We have a lot of trading companies, and those are products in and out from an inventory, and it's not direct labor intense in that sense that perhaps some other general engineering production-related companies or automotive companies and so on. Not so people impacted when we grow. All right. Thanks. The next question is from the line of Robert Redin from Carnegie. Please go ahead, your line is now open. Hi. A couple of questions here. On that order intake in Q1, of course, 12% above sales. Is there a trend there that those orders are for delivery further out in time? Is it a longer or more stretched out order book? Or should we see it as a positive Q2 sales, a strong order intake in Q1? It's quite normal but with some caution on the component raw material lead time issue. In that sense, maybe slightly more stretched out and delivery issue than normally, but otherwise the order book is rather normal in that sense. Okay, perfect. You wrote something about supply chain problems hampering delivery and invoicing in Q1. How much of an impact was that? Could you say how much more would you have sold without those supply chain problems? Can you comment on that, Patrik? I think the aggregated impact so far is limited. I can't give you a number actually. It doesn't impact the overall numbers at all, I would say in Q1. Slight bigger risk, of course, in Q2. Our companies, as Bo Annvik said, they are also agile and working with alternative measures both on the cost side and on sales side, I would say. Slight bigger risk for Q2, marginal or insignificant in Q1. Okay, right. At this time, the headwind with regards to supply chain it's more of a problem than anything else. Is there anything positive long term here? Could customers be seeing these supply chain problems and be more interested in working closer with your trading companies in the coming years? Could it be a trend like that? That's a very good question, Robert, and absolutely something we have as a strategic priority. I think one effect of the pandemic is probably that globalization in a supply chain perspective will be impacted in favor of regionalization and localization. Where some of our customers have bought components in low-cost countries in Asia, for example, we see great opportunities to challenge that setup and offer them high-quality products at a higher price point, but in a bigger, broader perspective, it's a win-win situation for them when you calculate risks and other things. Yes, definitely something we are working with as a priority and are optimistic about. Okay, perfect. Thanks for some questions. Thank you. Thank you. Just as a reminder, if you do have any more questions, please press zero and then one on your telephone keypad now. There are currently no further questions in the queue, so I'll hand the call back to the speakers. Please go ahead. We say thank you for participating, listening, and wish you all a good day. Thank you from us. This now concludes the conference call. Thank you all for attending. You may now disconnect your lines.