Hello, and welcome to the Investor AB Q2 Report 2021. Throughout the call, all participants will be in listen only mode, and afterwards there'll be a question- and- answer session. I'll now hand the call to Viveka Hirdman-Ryrberg, Head of Corporate Communications. Please go ahead with your meeting. Hello and welcome everyone to Investor's Q2 Conference Call. We are hosting this conference call this late in the afternoon as we've had a board meeting today, and then we released our report as the board meeting was finalized. As usual, we will start out with our CEO Johan Forssell, who will present the results, followed by our CFO Helena Saxon, and then we will open up for a Q&A session. Please, Johan. Thank you very much, Viveka, and once again, welcome to this conference call. If we start on page number two, we are clearly seeing an improved economic environment that in combination with the low rates has continued to fuel asset prices. There are uncertainties that remain. We know about supply chain issues, geopolitics, and of course, the spread of the Delta variant. It is worrying that the Delta variant is now spreading, not the least in Asia, in countries such as Indonesia, Thailand and Malaysia, where there is a low vaccination level among the people. This is clearly a risk and we are already seeing an impact in a few places. One example being Mölnlycke that have a plant in Malaysia where they produce gloves that is currently being affected, that they need to handle. It is something that needs to be watched and this is spreading around the world. Overall, as I started with, we are seeing an improvement in the economy and of course the first quarter from Investor was overall very strong. The net asset value was up 5% in the quarter, and our total shareholder return was up 15%, and that can be compared with the stock market in Sweden being up 7%. Moving on to page number three, the listed company had a total return of 5% in the quarter. Patricia Industries' value was up 3%. That was driven by higher earnings, but mitigated by multiple contraction. There was a strong operational performance in the companies and two companies made strategic add-on acquisitions, and then Grand Group and Grand Hôtel property were divested in the quarter. The strong development within EQT continues both when it comes to value and also they had a very strong cash flow in the quarter. Actually the cash flow for the total group was very strong in the quarter driven by EQT, distribution from Mölnlycke SEK 2 billion, and also distribution from Three related to the divestiture of the passive infrastructure, and finally the divestiture of Grand Group and the related property. We have a very strong financial position that we will utilize where we see opportunities, and I will come back to that. If I move to listed companies, the top priorities in the quarter have been to handle supply chain issues and, of course, the rapidly changing demand. At the same time, of course, many strategic investment in R&D technology and also sustainability is of course continuing at high speed. Moving down over to Patricia Industries. The reported sales growth in the quarter was 16%. The organic growth sales was 25%, and the difference between it is mainly that we have a double-digit negative currency effect in the quarter. The profit growth was very strong at more than 30%, and the divestment of Grand generated SEK 1.5 billion of net proceeds. BraunAbility and Permobil made important strategic add-on acquisitions in the quarter. Permobil acquired Progeo, which is a leading Italian manufacturer of manual wheelchairs with annual sales of about SEK 100 million. BraunAbility acquired a majority in Q'STRAINT, which is actually the global leader in wheelchair securement solutions, so basically constraints, with a revenue of about $60 million US, and this company has a profitability above the level what we see in BraunAbility. It is great to see that when we look through our subsidiaries and look at the pipeline of potential add-on acquisitions, we have a very strong pipeline, and we plan to invest significant capital going forward to grow our subsidiaries through not only organically but also accelerating when it comes to M&A activity. Moving down to slide number six. For sure, the second quarter last year was a weak quarter as you can see from this graph. Compared to that weak second quarter last year, the organic growth was 25% and the profit was up 32%. As mentioned before, we should remember that we also had a currency headwind in the quarter. This is important, I think that most companies delivered strong sales and profit also on an absolute level. Basically disregarding the base levels. Now we come back to that on the next slide. Here you have the different companies. I will run through a little bit each company, and not only comment about the performance versus the second quarter last year, but also to give you an indication when it comes to the organic performance where we skip out currency and add on acquisitions, the organic development versus the second quarter 2019, so you can have a little bit of a feeling where are we now compared to pre-COVID levels. As you can see from the chart, if we exclude Sarnova, which I will come back to, all companies generated very strong growth compared to last year, between 18%-81% organic growth. If I start then with BraunAbility, the organic growth was 81% in the quarter, and you can also see that we had a good margin expansion. We then compare BraunAbility compared to the second quarter level 2019, we can see that for BraunAbility, we are still clearly below pre-COVID-19 levels, actually double digits below. This is one company, while we saw a sharp recovery in the quarter, we are still below where we were before COVID-19. Laborie had an excellent performance in the quarter, up 67% organically, and very strong profitability. Here, if we compare with pre-COVID levels, organically, we are now up mid to high single digits compared to the second quarter 2019. Due to the strong development this quarter, we are now above previous levels. Advanced Instruments, our latest subsidiary, has continued to perform extremely well, and we are very pleased to have bought this company. It grew 47% organically in the quarter, and the profit margin was 50%. Here it's clearly record levels, whatever you do the comparison with. Also, Piab had a very strong quarter, organic up 33% compared to last year, with margin expansion. If we compare Piab's performance compared to the organic situation before COVID-19, they are up mid to high single digits, so also here above previous levels. Mölnlycke grew 18% organically, some margin expansion, and if we do the same comparison here with second quarter 2019 and exclude the PPE contract, it's up just about mid-single digit compared to the second quarter 2019, with Wound Care being the main driver, while Surgical is up just a little bit. Permobil grew 18% in the quarter, and also here margins improved somewhat. Here we can see that if we compare with pre-COVID levels, the situation is relatively stable, now almost back to pre-COVID level, but actually a few percentage points below. Finally, down to Sarnova. This was the company where we actually saw negative organic growth by 3% in the quarter, and there are two main reasons for that. First, there was a strong COVID-19 related sales last year, and secondly, we had an unusually mild flu season this year. The underlying performance is good, and if we look on the pre-COVID level, this is up a few% compared to that level. That is a run-through of the companies. Let me say a few more words about Mölnlycke on the following page. As mentioned, organic sales was up 18% in the quarter. The contribution from the customer contract sales related to PPE was limited this quarter and actually slightly lower than during the second quarter last year. COVID-19 related customer agreements within PPE are not expected to add materially to sales during the second half of this year. Please remember that the second half last year was significantly boosted by PPE contracts, so that needs to be taken in consideration. However, the underlying business is strong. Wound Care grew organically by 20% in constant currency, and we saw very good development in the U.S. and in France. Surgical grew 17%, and we saw good development in gloves and trays. The profit margin was up 1 percentage point, driven by both the strong sales, but also a good mix. It was negatively impacted by increased raw materials and also increased logistics costs. The strong cash flow continues in this company, so they were able to distribute EUR 200 million. Moving down over to EQT, the total return for the total franchise was 9%. The listed EQT AB was up 9% in the quarter, and the increase in the funds were up 10%. Please remember that we do the reporting in the funds with one quarter lag. This is up until March 31. The cash flow, as mentioned before, was very strong, SEK 3.8 billion to Investor during the quarter. One of the reasons why it was so exceptionally strong was that the mid-market U.S. fund made some significant exits, and our share in the mid-market US fund is very high. Overall, a good cash flow. EQT has a very high activity, doing both significant investments and a number of exits. To summarize, we have a proven governance model and we stick to it, and I think we have a portfolio with high exposure to attractive long-term trends. Our focus is to continue to work relentlessly as an engaged owner with these companies, capture opportunities, both geographical expansion, but of course also through M&A and other initiatives. Secondly, we also need to continue to make sure that we have an attractive portfolio. With that, I'll stop and hand over to Helena. Thank you, Johan. If we move over to the net asset value development, we can see that the adjusted net asset value continued to develop positively and landed at the end of the quarter at close to SEK 660 billion. Johan talked about the development in Patricia Industries. Looking more closely at the listed companies, some SEK 460 billion, we see that the TSR was at 5% in the quarter compared to 6%-7%. Year- to- date, the relative performance is stronger with 25% TSR versus the SIXRX index at 22%. The strongest share price performance was seen in Wärtsilä and Electrolux Professional, while the Ericsson and Husqvarna shares had a tougher quarter. Moving over to Patricia, the total return was 3% in Q2, excluding cash. On the next page, the sequential change in estimated market values is described in the following graph. The value here is driven by strong operational performance across the board, and with the significant distributions related to the divestment of both Grand, the infrastructure in Three, and also financial investments. The total value of Patricia Industries, including cash, amounted to almost SEK 162 billion at the end of Q2. Looking at the next page, I will go through the major drivers of estimated market values in the quarter. The Laborie estimated market value increased by SEK 2.1 billion and earnings impacted positively, while multiples contracted. For Mölnlycke, earnings impacted positively, multiples and currency impacted negatively, and SEK 2 billion was distributed in the quarter. Please be reminded that as before, the TTM related profits are adjusted for in the last 12 months earnings. For Three, the estimated market value change was SEK half a billion, and here we see a distribution, as I commented before, related to the divestment of the passive network infrastructure. Permobil was impacted negatively in the quarter by multiples contracting, while earnings impacted positively, resulting in the contraction of the estimated market value of SEK 1 billion. Before I go to my last slide, No, sorry, I'm jumping ahead of myself. Please go to page 17 with the financial position as of June 30th. Investor's financial position remains strong with an AA- and Aa3 credit rating from S&P and Moody's, and the leverage ratio just above 2% at the end of the quarter. Now, before I go to my last slide with the average annual total returns, I just want to remind everyone that during the quarter, the annual general meeting approved of the board's proposal of a four to one share split. The first day of trading post-split was May 19th. Looking at this final graph, we can see that based on a strong portfolio and delivering on our strategy, the TSR of the Investor share has outperformed both SEB and our own return requirements over most periods, in this case, 2010, five and one year as well as year- to- date. Thank you, and with that, I hand over to Viveka and we can start the Q&A session. Thank you, Johan and Helena. We will now have a Q&A session and our facilitator will just go through some instructions before we kick off the Q&A. Thank you. Ladies and gentlemen, if you have a question, please press zero one on your telephone keypad and you'll enter a queue. Our first question is from Joachim Gunell of DNB Markets. Please go ahead. Thank you very much. As highlighted in this quarter with the strong cash flows providing insulation to say the least, would it be fair to be more aggressive with the balance sheet since you don't only have the listed portfolio dividends to rely upon anymore? Thank you for the question. I can only say that we recently had a board meeting in Patricia Industries, and we went through the pipeline of the different subsidiaries. We are really stepping up and have a number of great opportunities, I do believe, in our subsidiaries. My expectation is that we will allocate more capital for significant add-on acquisition, including us putting in equity to finance these somewhat larger add-on acquisitions. That is a top priority for us. In addition to that, we are, of course, always looking at other opportunities, both on the listed and unlisted side. What I really see in the pipe right now is the larger than normal opportunities within the add-on acquisition pipeline. Thank you, Johan. Helena, can you perhaps elaborate a bit on when it will be relevant to take away this discount that you attribute to Mölnlycke driven by the PPE pandemic-related boost here? As we have seen a broader peer universe expand their multiples quite substantially over the last year. I think your valuation multiple is not even up 10% during that timeframe. Thank you, Joachim Gunell. It's a very relevant question. I think it's not up to us to decide when PPE sales stops. It's something that is driven by external factors, and in particular, due to the Delta variant of the virus, for example, that Johan Forssell mentioned before. As we do not believe that the PPE sales is something that will go on forever, but it's likely to be related to this extreme situation, we do not want to value it like the rest of Mölnlycke. I will not give you a prognosis of when and how much, but currently we see that it has impacted, and we will see during the fall what happens. Maybe I can just add to that if you look on the PPE profit, because basically the profit related to the PPE sales, we know it's more of a one-off nature. We use last 12 months earnings when we put the multiple in. We also know that during the third quarter, as I mentioned, operationally, of course, we will need to think about that in the third quarter and fourth quarter. Last year, there were significant sales of PPE. That will make it call it a tougher comparison in terms of earnings. On the other hand, we have already reflected that in the valuation. When we pass, basically moving to 2022, the multiple will more gradually reflect the true higher multiple, because then we will gradually sort of get out of the PPE contracts. At least that's what we expect currently. You, yeah. That's very comprehensive. Thank you. Just a final one from me. With the decentralization initiatives here launched in Mölnlycke, can you provide some more color on what the accelerated long-term growth ambitions really mean? Where that stemmed from and perhaps how that relates to the historical, call it the mid-single digit 5% organic growth that Mölnlycke has delivered in the past years. Basically, the company is now putting four business areas with clear responsibility end-to-end when it comes to manufacturing customer and R&D development. By doing that with both Wound Care, antiseptics, gloves, and also the OR Solutions business, our strong belief is that this will create even stronger focus. Of course, each business area head will get an assignment to really develop that business. I cannot give you a specific figure for it, but I think it will be even clearer than before when it comes to the focus and when it comes to the accountability and the related incentives to it. That, as you know, is something that we believe as an owner is normally the right way forward. We are enthusiastic both about the strong position the company has, the development of the company, and also we think and hope that this will further accelerate the opportunities going forward. I don't know to what extent that will boost the future growth. Of course, our ambition is to grow this company as much as possible given the high profitability and cash flow. Very clear. No, that's all from me. Thank you very much and have a great summer. Thank you very much for your questions. Thank you. Our next question is from Derek Laliberté of ABG. Please go. Good afternoon. I was wondering how you, I think this question has been up before, but how do you view your current portfolio in terms of resource allocation? You have quite a big number of holdings. Many of them are really quite small in relation to the total Investor or portfolio value. Does this mean that you're focusing more on bolt-on acquisitions in the current companies rather than new investments? Does it also mean that you sort of have a bigger minimum size requirement for completely new investments? Thank you. Thank you. It's a good comment. I think that the smaller the companies are, all else equal, we would demand a higher growth opportunity going forward. Secondly, our clear ambition is, as you say, to grow some of our, what you call a little bit smaller companies through add-on acquisition, to use the strong platforms to boost them by doing add-on acquisition. That is normally the way we want to do it. Some companies that we have owned for a little bit longer time, we have done permanently, done a number of add-on acquisition, broadening the company. It started out with only electric wheelchairs. We have broadened it to manual. We have broadened it to seating and cushioning and supports. We have also expanded it internationally into, for example, Australia in quite good ways. When we now acquire a company like Advanced Instruments, we try to acquire a company that is a really strong leading player in its niche with high profitability, good cash flow, and especially the best products in the market. From that, of course, our plan is now to grow Advanced Instruments and the other subsidiaries through add-on acquisitions, because then we can not only grow the size of them, but also create synergies in some cases, and develop the platforms. Thank you. That's really helpful. I had a follow-up on Mölnlycke as well. I think, I guess it's quite clear, but just to understand, is it this new four business areas? That's primarily what's new here, or the decentralization and that focus and P&L responsibility. Wasn't that the case before as well? Then I just wonder in general as well if you want to highlight any other important improvements or focus area that the new CEO, Zlatko, is focusing on in the company. I think it's not saying that it has not been a good focus in the company before, but I do believe that this reorganization will further sharpen the focus in the company. That's why we are very supportive of the changes that the board of Mölnlycke and Zlatko now is doing. In addition to that, historically, this company has had a fantastic development growing mainly organically. Of course, it's up now to, with Zlatko coming in and see if also we can find a little bit more of M&A activity in that area. That is something that I know they are looking into. I'm not saying that it will accelerate, but of course, we are trying to find all avenues to grow this great company. Thank you. That's all from me. Thank you. Just as a reminder, if you wish to ask a question, please press zero one on your telephone keypad. There'll be a brief pause while we register any further questions. We have a question from Andreas Lundberg of SEB. Please go ahead. Your line is open. Hi, Andreas Lundberg. Sorry it was me, but operator's telling. Yeah, just a short question on you talked about a lot of normal pipeline. Why is that the case? Why has it grown a lot now? Also, what do you say about the current price levels in the market? Thank you. When it comes to the size of the pipeline, I think it's always a combination. It takes two to tango. Of course, there needs to be opportunity. Clearly we have had a conscious focus now for some time to really work through and build out that pipeline in the companies. The boards and the management team in the company have really focused on that. I think that is one reason. Of course, if you strike the deal or not, it's always a question if it becomes available and the price level. We try to have an attitude or a call it framework in our companies that we really map the target in terms of the potential for and the attractiveness of the segments and also the fit with our companies. Based on that, of course, then trying to dance with the counterparties. You take a proactive approach rather than look what comes available. That's the approach we do when we look into the opportunities. The second question was? Pricing. Price level. Yeah. Yeah. It differs a lot, to be very honest. In some cases pricing can be so stiff that we have to walk away. In other cases, we also have a strong starting point, and we also have companies that actually want to be acquired by us. In those cases, if you get an exclusive discussion, we can actually get opportunities at quite reasonable prices, especially considering the cost of capital in this market. I would say sometimes, yes, it can be tough, but there are also opportunities where we actually can find it at reasonable levels. I would not say that we see it as a huge program, to be very honest. It's more finding the right company that fits with our companies and where we see that we can develop them. If we do that, normally we will go into the multiples. Thank you. Thank you. There are no further questions at this time. I'll hand back over to our speakers. Okay. Thank you. Do we have any questions on the web? No. With that, we conclude this conference call, and we wish you all a great summer. Thank you so much for today.