Ladies and gentlemen, welcome to the Inwido audio cast teleconference Q2 2021. Today, I am pleased to present CEO Henrik Hjalmarsson and CFO Peter Welin. For the first part of this call, all participants will be in a listen-only mode, and afterwards there will be a question and answer session. Speakers, please begin. Thank you very much. Good morning, everybody, and welcome to this presentation of Inwido's Q2 and H1 results 2021. My name is Henrik Hjalmarsson. I am the President and CEO, and with me I have Peter Welin, CFO and Deputy CEO. Next page, please. Page two. We will spend the coming 25 minutes or so going through a brief introduction to Inwido, for those of you who are new to us. A few words on the Q2 performance, the highlights, as well as the H1 numbers. I will go through a brief update on M&A and some words on the market outlook, as well as our short-term priorities. Peter will then take over and go through the financials in a bit more detail, after which I will summarize, and then there will be plenty of time for questions at the end. Next page, please. Page three. Inwido, for those who are new to us, we are a leading window group in Europe, a clear market leader in the Nordic region with a strong presence in the U.K. and Ireland. Over the past 12 months, ending in quarter two 2021, we've achieved sales of SEK 7.2 billion and an operating EBITDA margin of 12.1%. We've got roughly 4,600 employees in the locations that you see marked with white dots on the map on the right-hand side. We market and sell all the fantastic brands that you can see on the bottom part of this slide. Next page, please. Page four. Our value creation is based on a clear and proven model, which we refer to as our virtuous cycle to drive shareholder value. These are five elements that are the basis for value creation, and they ensure that we deliver long term, cost efficient customer value as well as employee value, and hence drive shareholder value over time. They're based on our proven ability to improve businesses to drive profit after more than 50 acquisitions over the past 25 years, and it's built to plug in acquired businesses, obviously being sensitive to their start point to make sure that we protect the base, but also maximize the incremental value that we can derive from new acquisitions. These five elements then, starting from the top right-hand side, is that we drive efficiency synergies from areas such as sourcing and technology. We can achieve better pricing and innovation by buying together as a group, but also sharing product and production technology to improve the businesses under the Inwido umbrella. Secondly, we run a decentralized model with strong local accountability, with focus on business and focus on customers with strong leadership and drive, because we believe that this drives better decision making closer to the customer and also drives performance and results focus. Thirdly, we believe that what you measure is what you get. A clear and strong performance management structure and KPI structure with a strong focus on the results that you achieve drives the right behaviors and drives results over time. Number four is a strong focus on capital efficiency and allocation, which leads then into the fifth one, which is an integral part of the long-term value creation, which is good value creative M&A as well as investments for growth in the different business units. Next page please. Page five. In terms of Q2 then, well, overall, it was a strong quarter for Inwido. We achieved sales above SEK 2 billion for the first time in a single quarter, which means an organic sales growth of 19%. We had an all-time high operating EBITDA in the quarter, as well as a strong order intake and closed the quarter with the highest ever order backlog. We saw a 15% organic growth in e-commerce, despite some considerably tougher comparables from last year. All of this means that we posted the ninth consecutive quarter with strength in margins as well as the Q5 in a row with organic growth. Next page please. Page six. Looking then at the numbers, sales grew to SEK 2.009 billion, up from SEK 1.719 billion last year. The operating EBITDA grew by SEK 65 - SEK 267 million. The operating EBITDA margin strengthened by 1.5 percentage points to 13.3%. Order intake up 32% or up 27% adjusted for acquisition, which means that the order backlog at the end of the quarter increased by 61%, or 55% adjusted for acquisition to just north of SEK 2 billion. The net debt versus operating EBITDA, excluding IFRS 16, closed at 0.9, which is considerably down from the 1.7 at the same time last year. Next page please. Page seven. Looking at the development the first six months of the year. Sales has grown nicely organically at 18% up to SEK 3,653,000,000. The operating EBITDA margin. Sorry. The operating EBITDA strengthened considerably to SEK 388 million with an operating EBITDA margin then strengthening 2.7 percentage points to 10.6%. We've closed the acquisition of Metallityö Välimäki Oy in Finland, being an important part of creating conditions for long-term profitable growth in Finland, not the least in metal windows and doors, as well as facade systems. We've achieved almost a doubling of our EPS to SEK 5.0 per share. Next page, please. Page eight. Looking then at the business area performances, starting with business area South. We saw high growth rate and further strengthened margins in the quarter. As you can see in the ring chart on the right-hand side of this chart, and as many of you will remember from before, we have a considerable exposure to the consumer market in business area South. e-commerce grew nicely in the quarter, 15% organically, again, despite some tougher comparables from last year. Order intake grew 7%, the quarter closed with an order backlog up 43% versus same time last year. The larger Danish units continued to grow sales and margins in what's been a favorable consumer market, we've seen some quite considerable recovery in demand in the U.K. and Ireland, post some quite severe COVID-19 related shutdowns and restrictions in the past year. As you can see in the charts on the top right-hand side, sales grew nicely organically plus 26% or reported plus 20% to SEK 855 million. As you can see in the chart on the bottom right-hand side, the operating EBITA increased and the operating EBITA margin increased from 19.3% last year to 20.8% this year. The order backlog at the end of the quarter was up 58% year-over-year. Next page, please. Page nine. Looking at business area North, very pleasingly, we've seen continued margin improvements and a good sales growth in the quarter. As you can see here in the ring chart on the right-hand side, we have some more exposure to the industry market in North. In the quarter, sales growth was largely fueled by strengthened positions on a positive consumer market. We saw a good profit development, particularly in the Swedish business units, but also have to acknowledge that the industry markets in both Sweden and Finland has been recovering better than expected, both by ourselves but also by industry analysts. As you can see in the chart on the top right-hand side, net sales grew. Reported sales grew 14% or organically 13% to 1.102 billion SEK. As you can see in the chart on the bottom right-hand side, operating EBITA improved and the operating EBITA margin strengthened by 1.2 percentage points to 8.8% in the quarter. The order backlog at the end of the quarter up 62% versus same time last year. Next page, please. Page 10. Looking then briefly at M&A, which is obviously a very important value driver for the group. In the COVID-19 pandemic, it's been relatively easier to make progress in smaller transactions in existing geographies and a bit more challenging to go after larger transactions, particularly in new geographies. As the markets open up, travel restrictions are slowly lifted, as well as meeting restrictions. We do see some increased opportunities in this area. Obviously, we are in the process of integrating Metallityö Välimäki Oy, which as I mentioned before, we closed in April. Looking then at our eight criteria on the right-hand side, starting from the top. We focus on businesses within windows and doors because this is our expertise and our focus. We go primarily for profitable businesses. We prefer to take businesses from good to great rather than going after turnaround cases. We look at businesses with a strong position, either in their markets and/or in their segments. We look primarily at the renovation segments because we run consumer-focused businesses, which we know delivers better and stronger margins over time. We look at management opportunities because we know in our industry, good leadership drives value over time. As mentioned previously, we look at synergy opportunities. Sharing is caring. We know that synergies in areas such as procurement with better prices, also product and production technology drives value from the group over time. We have a clear geographical focus on the Nordics, the DACH region, the U.K. and Poland. We also look for incremental capabilities, be it in products or in technology, for example. Next page, please. Page 11. Looking briefly at the market outlook. We obviously enter the Q3 with a strong order backlog, which will support sales in the near term. We see for the near term, continued healthy activity levels in the consumer and in the industrial markets. However, we also see continued inflationary pressure on input materials continuing through quarter two and into quarter three. We're continuously taking price increases to offset this. We see some midterm uncertainty in the markets as society returns to what we refer to as the new normal. We continue to be optimistic about the long-term outlook as the demand for energy efficient windows and doors increases when investments into homes and buildings across Europe increases to decrease their energy intensity. Next page, please. Page 12. Looking at our short-term priorities, which remain largely the same from before. We keep a close eye on input material inflation to make sure that we take swift and resolute price adjustments where needed. We maintain a customer focus and strong execution in what continues to be a quite dynamic environment. We continue our value-generating investments in growth initiatives, for example, in e-commerce. We obviously continue to increase our M&A efforts as that's an important value driver for the group, and we run a proactive cost management as the COVID-19 impact wears off on the group. Next page, please, page 13. With that, I hand over to Peter, who will take you through some of the numbers. Peter, please. Thank you, Henrik. Ask you to go to the next page. Page number 14, please. On this page, we can see the income statement. To the left, we can see the income statement for Q2. In the middle, January to June. Further right, the latest 12 months, to the right, 2020. If we start with the rolling 12 months or the latest 12 months, the operating EBITDA margin has been improved now nine quarters in a row. Operating EBITDA margin, latest 12 months is now on 12.1%. For the quarter, sales was +17% and we were for the first time ever above the SEK 2 billion mark with a sales of SEK 2.009 billion, a growth of 17%. If we adjusted for a currency as well as the latest acquisition, sales is +19%. We have a negative impact in sales from the currency when translating external currencies to SEK due to stronger SEK in the quarter. Look at the margin. The margin was improved in the quarter from 26.9% - 27.1%. Even though we have inflation in material prices, especially later in the quarter, we have reduced that or compensated that with higher sales prices, but also with higher volume. The higher volume, especially in April, May, has improved the margin. We have better efficiency and better capacity utilization. Operating EBITDA plus 32% compared to last year from SEK 202 - SEK 267 million, the EBITDA margin 11.8%-13.3%. The EBITDA was improved by 37%. The difference between operating EBITDA and the EBITDA per quarter is related to the acquisitions cost of Metallityö Välimäki. Further down in the income statement, we can see the profit after tax as well as the earnings per share was increased by 34% compared to last year. For the period January to June, sales are +15%, adjusted for currency as well as acquisition, it is +18% compared to last year. Margin, close to 1% improvement from 24.6% - 25.5%. We had a good margin development in Q1. We had a strong sale in Q1 due to the high backlog end of last year. We opened up the year with a better sale with a higher capacity utilization and improved efficiency, which has also continued in Q2. Operating EBITDA +55% compared to last year from SEK 251 million to SEK 388 million. Further down the income statement, we can see that profit after tax is +96% and the earnings per share is +95%. We have today an earnings per share of SEK 7.5 compared to SEK 2.56 last year. Rolling 12 months or latest 12 months, sales of SEK 7 billion 167 million and operating EBITDA margin of 12.1% and an earnings per share of SEK 11.08 compared to last. Next page number 15, please. On this page, we can see the development in sales as well as in order intake for 2019, 2020, 2021 for the quarter, the Q2. To the left, you can see the development in sales, and to the right, you can see the development in the order intake. Sales, as I said before, for the first time ever, we are above the 2 billion mark, a sales of SEK 2 billion 9 million, growth of 17% compared to last year, organically plus 19%. Higher organically due to the currency impact. We have a negative currency impact of about 3% in the quarter. North was +14%, organically it is +13% in sales in the quarter. South had sales growth of 20%, organically +26% compared to last year. In 2019, we had a sales of SEK 1 billion, 710. Looking at the order intake, the order intake has improved even more than the sales in the quarter. The order intake is +32% in total, which we call reported order intake. However, when we make acquisitions, the order backlog of the acquisition is booked as order intake in our reporting. Taking away the acquisition of Metallityö Välimäki, the order intake is +27% compared to last year. North has an order intake growth of 39%, adjusted for acquisition it is +30%. South had an order intake growth of 22% in the quarter compared to last year. We turn page, we go to page number 16. This page is showing the order backlog end of each quarter from Q2 2017 to Q2 2021. We have a seasonality in our order backlog. Normally, the order backlog is the highest levels in Q2 or in Q3, and the lowest level in Q4. As you can see on this graph, we have quite large improvement in order backlog end of this quarter compared to Q2 last year. Also here, we have this SEK 2 billion mark. For the first time ever, we have a order backlog above SEK 2 billion. We have an increase of 61% compared to Q2 last year. We adjust it for the acquisitions, we take away the backlog from the latest acquisition, it is +55% compared to last year. A higher order backlog will support sales in the H2 of this year. North has a total backlog increase of 62%, and South has a backlog increase of 58% compared to last year. If we then turn page, we go to page number 17, please. This page is showing operating EBITDA and operating EBITDA margin. To the left, you can see the development for 2019, 2020, 2021 in the quarter, and to the right, we can see the development for the same years, January to June. As said before, the margin has been improved now nine quarters in a row, and the margins for latest quarters, Q2, was 13.3% compared to 11.8% last year and 10.9% in 2019. Even though we have material inflations, it has been mitigated by higher sales prices, and we had an also improved efficiency and the capacity utilization. We started the quarter with a high backlog, and with a high backlog, we could run the productions in a high speed or high capacity utilization in April, May, higher than normally during this month. Thereby, the margin has been improved in the quarter. Looking at January to June, we have a margin improvement of 2.7 percent units, from 7.9%-10.6% this year. It was 7.3% in 2019. We also had a good margin improvement in Q1. Also in Q1, we had high capacity utilization, improved efficiency, which then continued in Q2, and the margin has improved even further. If we then take the next page, please, page 18. This page is showing the net debt and the net debt versus EBITDA, including as well as excluding IFRS 16. The net debt has increased in the quarter compared to Q1, quite normal due to the dividend payment and also due to seasonality. We paid out dividend this year of SEK 261 million in May. Last year, we didn't pay any dividends, and we also had a quite good cash flow improvement last year due to working capital. We have improved working capital also this year in Q2, but not as strong as Q2 last year. However, even though net debt has increased, the net debt as EBITDA is still on the same level of 0.9 because we have improved the EBITDA and compensated the higher net debt. Net debt versus EBITDA excluding IFRS 16 is 0.9 compared to 1.7 one year ago. If we include IFRS 16, we add on net debt of SEK 354 million, and the net debt versus EBITDA is 1.2 compared to 1.9 one year ago. Next page, please. We go to page number 19. This page is showing our development since 2014 until today, rolling 12 months. We made an IPO in September 2014. In 2014, we had a sales of SEK 4,916 million and operating EBITDA margin of 10.2%. Sales have been improved by 46% since 2014, equal to a CAGR of 6%, and we are now on SEK 7,167 million. Operating EBITDA has, during the same time, improved by 73%, equal to 9% in CAGR, and we are today on a margin level of 12.1%. We had a good margin development in 2014, 2015, and 2016 as well. We were close at 12% end of 2016. In 2017, in the beginning of the year, we had sourcing challenges, which cost us and cost us our margin. End of 2017 and 2018 and 2019, we had also high degree of industry sales or lower degree of consumer sales. Those of you who knows about us knows that we divide our sales between consumer and industry, and we have higher margins in consumer sales compared to industry sales. In 2018, 2019, when the consumer sales, the share was reduced, the margin was also then reduced. Now we have improved the margin nine quarters in a row. We have improved consumer share. We are today close to 75%. It has been improved during 2020 as well as beginning of this year. We have a higher volume in our factories. We have improved efficiency, and we have better capacity utilization, and thereby the margin has been improved, and we are today on 12.1% rolling 12 months. I now hand over back to Henrik. Henrik will make a short summary, and then we will open up for questions. Next page, please. Page 20. To summarize the Q2 and the first six months, obviously we've seen a strong start to the year in what's been an overall good consumer market. We've seen healthy sales and order intake growth, as well as strength in margins in both our business areas. Made some progress, although potentially modest so far, but in terms of the acquisition of Metallityö Välimäki Oy, but we are also increasing the M&A activities going forward. We enter the Q3 with a strong order backlog as well as a short-term favorable outlook for both the consumer segment and the industrial segment. Next page, please. Page 21. With that, thank you very much, and we open up for questions. Operator, please. Thank you. Ladies and gentlemen, if you have a question for the speakers, please press the zero followed by the one on your telephone keypad. Once again, to register for a question, it's zero followed by the one on your telephone keypad. Our first question comes from Adela Dashian from Handelsbanken. Please go ahead. Yes. Good morning, everyone. This is Adela Dashian from Handelsbanken. I have two questions, actually. The first one is related to the inflationary pressures. It seems like you've been able to pass those costs over to the end customer already. Is that correct, or should we expect some additional margin pressure in the quarters to come? Hi, Adela. I think what we've seen is we've seen more inflation coming through in the back end of the quarter than early on. We have taken both swift and, I would say, quite considerable price increases. We will see more inflation coming through in Q 3, which might put some pressure on the gross margin. On the other hand, we have an opportunity to, with better production utilization and efficiencies to compensate some of that as well. As I said, we have also taken a considerable price in the marketplace. When we're talking about those price increases, could you give us some context about what exactly you mean by that? Are we looking at 3%, 5%, 10%? What exactly does the price increases mean? Yeah, that's a very good question. In reality, as you're familiar with, we have 29 business units, and the answers to that question are probably 29 different answers. Broadly speaking, price increases are probably in the spectrum of 3% to north of 10%, a bit depending on the material mix that the business in question is selling and also the customer mix. It varies a bit, but it's in that range. Are you seeing that your competitors are doing similar things? Do you expect as a result of your price increases that you might lose some market share if your competitors are not increasing prices as well? We've seen competitors moving on price as well, perhaps a little bit. We were a bit closer to the development, I would think, and we were a bit earlier, but we've since seen the competitors moving as well. We're not expecting to lose any sales at this point or market share because of the price increases. We should also remember that we're going into the H2 of the year with a strong order backlog, which will obviously support the development as well. We've seen a move in the total market on price. All right. My second question relates to your M&A efforts. If you could first just remind us of what the M&A process looks like for you, like how exactly do you go to market when you look at potential targets? What characteristics are at the top of mind for you at the moment? Yeah. There are two typical ways that we carry out the process. The first one, which is the most common one, is actually that we get in contact proactively with the current owners of businesses that we find interesting. Mainly these are private and/or family owners, and many of the businesses are also family-led. Those processes tend to take a bit of time, and they are a bit unpredictable in terms of how long time they come. There is a risk of a ketchup effect in terms of that type of process. The second type is then a bit more uncommon, but also happens where we're actually contacted by potential sellers or sometimes advisors. At the moment, we are actually pursuing targets in both of those categories. The situation is still a little bit dynamic, so in terms of predicting the timeline for this, it is a little bit difficult. We have the ambition to close or to get to, I would say, and sign one or two more targets this year. That is our ambition. Obviously that depends on the exact response from potential sellers as well as how travel and meeting restrictions develop following the summer now. Did you say that you worked on closing two targets this year? We have the ambition to sign one to two more targets this year. Got it. Okay. Lastly, given your market position here in the Nordics, especially in Sweden and Finland, do you believe that your capacity or consolidation efforts are limited here? There are some limitations in the Nordics, yes, due to competition restrictions, as we have some quite considerable market share, particularly in Sweden, Finland, and Denmark. You can obviously make niche acquisitions and acquisitions in what I would call neighboring categories, but they would have to be mainly smaller units. All right. That's actually all I had for now. Thank you very much. Thank you. Thank you. Another reminder to register for a question, please press the zero followed by the one on your telephone keypad. The next question comes from Kenneth Olsson from Carnegie. Please go ahead. Your line is open. Yeah, thank you. I have some questions around the very strong demand situation that you have. Firstly, what are you doing to increase capacity so that you can deliver on the strong orders? Do you feel that the longer Well, first, what are the delivery times if I were to buy some windows for my house right now? Do you see that you start losing orders because delivery times are longer than normal? Okay. Hi, Kenneth. The lead times are a bit longer than normal. Yes. They are probably in the range of, on average, maybe three to four weeks longer than normal, something like that, depending a bit on the category and where you are. We haven't seen that we're starting to lose orders because of that yet. One of the parameters to take into consideration is actually the material scarcity in the market. Thanks to our well-developed sourcing work and also the fact that we are the leading player in Europe, I think we've been better at securing raw materials in a scarce situation than potentially some of competition, which has actually allowed us to keep factories running potentially a bit more than some competitors have. The lead times are a little bit longer than normal. I'm sorry, you had a second part to that question, which I lost. Yeah. A little bit, what are you doing in order to increase capacity? Is sourcing the main obstacle, or can you do more in your plant in order to increase capacity? Yeah, it's a very relevant question, and the answer to that question varies a little bit. Actually, plant capacity is a constraint for us at the moment. As we've said before, one area where we have accelerated our investment work is actually in our e-commerce business. At the moment, we are somewhat constrained by production capacity, actually, in our growth in e-commerce. As many will remember, we had a very strong growth last year. Those investments will kick in at the beginning of next year, which will then relieve that situation somehow. In other areas, we do have some more capacity to spare, so there, actually sourcing is the main bottleneck. It's a little bit of a mix. We're obviously taking action basically everywhere to maximize capacity, and we think we do have room to further improve a little bit the production utilization. Are you adding more shifts as well, or working a lot of overtime? That is costly. No, we're mainly adding more shifts and also actually in some cases, shifting around production of products to maximize capacity utilization. Mainly we're adding shifts where we can. Our normal way of operating is normally not to plan for overtime. Obviously sometimes you run overtime because things don't always go as you plan, but we normally don't plan for that, but rather add more shifts. One thing that I'm thinking about is that if we could get a sense of roughly how much your price increases are. What I'm after a little bit that you have strong organic sales growth, both in sort of sales, but also in orders. Of that growth, how could that be split into sort of price effect and more volume effect? Oh, yeah, that's a very difficult question to answer actually, because, as I mentioned previously, the price increase effect is quite diverse across the units. As I said, there is a spread between probably on the lowest end, 3% up to definitely north of 10% in some areas. Okay. We also have a quite considerable mix effect, as you know, depending on how big of the order backlog is consumer facing versus industry facing. I couldn't actually give you off the bat a reliable answer to that question. There is obviously some price impact as well in the order backlog, and there is definitely some mix impact in the order backlog with consumer sales. To quantify that off the top of my head, I wouldn't dare to do that. Yeah. It seems if I look at the reported numbers, it seems like the majority of the effect is probably volume driven, so to say. Absolutely. That's correct. Yes. Yeah. Great. Okay. That's all from me. Thank you. Thank you. Thank you. There appear to be no further questions. I'll return the conference back to you, speakers. Okay. Thank you very much for your attention. We will close the call there, and we wish you all a pleasant summer. Thank you very much. Thank you. This does conclude today's call. Thank you very much for attending. You may now disconnect your lines.