Good morning, and welcome to Mekonomen Group quarter four report 2020. My name is Anna, and I will be your coordinator for today's conference. During this call, you will be on listening only. However, in the end of presentation, you will have opportunity to ask questions by pressing star one. I will now hand you over to CEO Pehr Oscarson, your host this call. Thank you. Thank you. Hello, everyone, and welcome to the presentation of the fourth quarter 2020. With me, I have our CFO, Åsa Sjölin, and we're going to guide you through the presentation. As we all know, the pandemic is still affecting many countries and markets, and there are heavy restrictions, and these are challenging time. Despite this, Mekonomen Group stands strong. We have taken forceful actions to adapt during 2020, and the fourth quarter is clear proof of our resilience. It's also an evidence of a stable underlying demand of our product and services. We ended the year with sharply improved profitability and a strong cash flow. The focus for the group going forward is to strengthen our financial position even further and to achieve sustainable and profitable growth organically and through acquisitions according to our long-term strategy. This is why the Board's proposal to the AGM is that no dividend shall be paid for 2020. Still, as we have stated in our updated financial goals, the company's and the Board's ambition is that dividend shall resume in line with our dividend policy over time. The update of the financial goals in December 2020 was made to maximize our possibilities for future value creation. This is something we will talk more about on our detailed Capital Markets Day later this month. We will also elaborate on our updated strategy and our favorable position in the market. Our Capital Markets Day takes place on February 25th, and I welcome you all to join. As we have seen, we stand strong and efficient even if circumstances are difficult. We therefore expect a limited impact from the pandemic going forward as long as society in our markets are not completely closed down. We will continue to serve our customers and always in a secure way. Health and safety for our customers and employees has been a priority since the start of the pandemic, and it will continue to be until the pandemic is over. Åsa, please take us through the results of the fourth quarter. Thank you, Pehr. As you see on page three, we report a larger increased profitability during Q4. This is a sign of strength. In short, we are strengthened by three factors: stable revenues, improved efficiency, and better gross margins. This proves that we have a solid business model and an ability to handle changes. EBIT is more than doubled compared to the same quarter last year. The EBIT margin rose to 9% compared to 3% last year, and adjusted EBIT margin increased to 10% compared to 5% last year. We also have the full synergies from the acquisitions after separating the team in the result. The acquisitions have successfully and very clearly contributed to profitability for us. That makes us confident about our strategy going forward. We will continue to grow both organically and by acquisitions. We are glad to see that we gain synergies according to plan, but there is also additional potential to streamline and take advantage of our size. We will continue in full force to work with supplier negotiations and best practice in the group. Looking at page four, we can see that we sharply increased profitability in all our business areas, thanks to strong margins and good cost efficiency. I move over to page five. We have increased gross margins in the quarter, and we have increased slightly for the full year. Here we see proof of that synergies have affected the result positively. Looking at next page, on page six, we see an overview of our updated financial goals that we have communicated to the market about in December 2020. The adjustment of the long-term goal is about creating even more shareholder value. They were made in order to reflect the company's current operating structure and to enable higher growth rate in the future. We are continuing according to plan with our successful structural work to increase profitability in our existing business areas, as well as our focus on reducing debt and strengthen our financial position even further. This is why Board proposes no dividend for 2020. Still, it is our ambition that dividend shall resume in line with our dividend policy over time. As Pehr said, we will talk more about the financial target and our updated strategy on our Capital Market Day on February 25th. Okay, we move over to sales and result per business area. On page, we see FTZ in Denmark. FTZ had a continued strong performance in the quarter. The EBIT margin rose to 9% compared to 6% last year. This is due to internal cost control without any advantage from governmental relief. We estimate that FTZ has increased their market shares further on the independent part of the market, despite a slow market development in Denmark. Over to Inter-Team, our Polish business. In Inter-Team, we are on the right track with underlying stable business, which is very positive. Our EBIT margin is impressing compared to our competitors in the Polish market. We have successfully managed to follow our long-term strategy plan around improving EBIT. We have also taken forceful actions and kept focus on increasing gross margins. EBIT rose to impressive SEK 38 million compared to SEK 20 million last year. This was also possible thanks to short-term cost saving actions with the purpose to reduce the COVID-19 effect. The result does, however, include governmental support of SEK 7 million in the fourth quarter, and also supported by one-off in supplier bonus. We are delivering according to plan in Poland, but there is still work to be done here. We believe it will take a little more time before we reach our long-term goal and have a stable margin at this level. Over to MECA Mekonomen. In MECA Mekonomen, we have a positive trend with stable demand and an organic growth in line with last year. The EBIT rose to 11% compared with 5% last year. We are definitely moving in the right direction here, where our forceful actions to cut costs and improve efficiency have given results. There are some uncertainties going forward where COVID-19 is one, currencies are another. The result does not include any governmental relief in the fourth quarter but includes the rest of the insurance compensation from the data breach last year, which was SEK 56 million. SEK 7 million were paid to us already in Q2 2020. Altogether we have SEK 63 million from the insurance compensation in the full year result. In the full year, we have also taken cost of SEK 50 million for the long-term structural actions we communicated around earlier quarters, which will benefit us going forward. Over to Sørensen og Balchen. We are glad to see a very strong performance from Sørensen og Balchen also in the fourth quarter with an organic growth of 15%. The EBIT margin increased to 18% in the quarter compared to 16% last year. Sørensen og Balchen's business model is unique with a broad focus on B2B and B2C in combination with a very structured cost control. We are benefited from being a sharp niche player in the continued high activity in Norwegian markets. By utilizing this position in the market, we have gained market shares. There is no governmental support included in Sørensen og Balchen's result. I now hand over to you, Pehr. Thank you, Åsa. Yeah, I'm very proud that we have delivered another strong result. This is really a proof of our leading position. Moving on to page 13, shortly about our footprint. We will continue to optimize the network of stores and branches to secure profitability. Regarding the workshop, we aim for a larger workshop with higher number of mechanics because this is more important than the actual number of workshops. It's also important for us that the concept compliance is at a high level to ensure quality towards the end consumer, the car owners. The numbers will change from time to time with little effect on the group's result. On page 14 there is our overview of the sales in the industry. We are, as you can see, number one and two in Sweden. In Norway, we had positions one, two, and three, and we are by far the number one in Denmark. Strong positions that will benefit us going forward. In Poland, we have the fourth place. The Polish market is still fragmented. We believe that will be consolidated in a long-term perspective. Moving over to next page, we have a continued ambition to develop new solutions, services, and offers to our customers. The purpose is clear. To always be relevant and to meet the future customer needs. This enable us to grow and broaden our business. Next on page 16 is one example of this. In Norway, we have established an independent workshop concept for heavy vehicles under the brand MECA Tungbil, or MECA Heavy Vehicle in English. MECA Norway owns the workshop concepts and works as the spare parts supplier to the workshops in the same way as we do in the core business. We have 10 affiliated workshops in the concept since 1st of February. The first workshop is a collaboration with the Norwegian workshop company Bulder, who owns and operates the workshops. By the end of 2023, we aim for 50 workshops under the name of MECA Tungbil chain concept. Moving on, we also scale up in this area in Sweden. MECA Sweden has been a supplier for heavy vehicles with a wide local assortment for five of MECA Sweden's local branches. Since this has developed successfully during 2020, we now expand to include 30 branches with local warehousing. This will result in fast deliveries nationwide, with this initiative, MECA Sweden will offer the greatest availability in Sweden in terms of number of distribution points. Now on page 18. In Western Poland, we recently opened our second regional warehouse in order to strengthen availability further for our workshop customers in that region. Availability, efficiency, competence, and quality is our most important competitive advantage against existing and new players entering into our industry. This, together with our warehouse project in Sweden, is a proof of our continued initiatives towards availability and efficiency in this area. Talking about the Swedish project, as we can see on page 19, the merging of MECA and Mekonomen warehouses is now completed. This has been a successful project, this has developed according to plan, giving gradual increases synergies yearly since start. The last piece in the synergies was the rent for MEKO's former central warehouse, which has been terminated since the end of 2020. I'm very much looking forward to the 25th of February and our digital Capital Markets Day. Together with my management team, I will present our updated strategy, Enabling Mobility, which stretches to 2025. With our updated strategy, we will focus further on operational excellence and on creating sustainable business. More details about our focus areas and how we will succeed with our strategy, you will hear on that Capital Markets Day. Please join us then. Thank you for listening, we will now move forward to some questions. Thank you. Ladies and gentlemen, if you would like to ask a question, please press star one on your telephone keypad. We have a question from Mats Liss from Kepler Cheuvreux. Please go ahead, your line is now open. Oh, hi. Thank you. A couple of questions. We have heard some problems with semiconductors and so on, and the supply chains of car producers are really tough. Do you expect to see some sort of issues with that, both the sourcing of spare parts? Do you think it will affect your ability to supply as well? We don't see any indications of any disturbances in the supply in the independent aftermarket in the same area as you mentioned that the car manufacturers has. The last year was demanding when it comes to supply, and I think that was the first thing we started to be worried about when the pandemic started in March last year. We have had a good supply during the year. Of course, as long as the society works as it is, and we don't see any risks for any big impact on our business. Again, as it is right now. Well, the year has started somewhat cold and snowy. Have you seen any sort of impact of that? It's good for the big ticket items like batteries and so on, I guess. Could be, anyway. Do you have any comments there? No, we don't comment when do prognosis, you're right, of course, when it's cold, we sell more winter products. On the other hand, there is slightly lower demand due to less miles driven, due to the pandemic situation. Cold weather is better than mild weather, so it's good. Okay. Finally, just about the close down of the warehouse in the Sätra, Sweden. Did you say that all those costs are out now and have you also seen the positive impact of the reduced inventories due to that? Not yet because the inventory will go down, but that needs to be sold out, so to say. I would say that we at the moment are overstocked in Strängnäs, but during the year the inventory will go down in that. As you heard, I'm speaking a lot about availability, so we also increase our inventories in different places in the market. Okay, good. I think that's it. Thank you very much. Okay. Thank you. Next questions come from Andreas Lundberg of SEB. Please go ahead, your line is now open. Good morning. Can you hear me? Yes. Thank you. You talk about in the report, manage to see visible signs of a strength and position in the marketplace. Could you perhaps expand a little bit on this? How do you view that? I would say it's from two dimensions. When it comes to the business here and now, we definitely see, as I said, there is a stable demand for our products and services, but there is also, of course, market shares which are moving. Our strong concepts and strong brands is proven to attract a lot of the car owners. That's where I would say we have a strong position in the core business as it is now. We have also, I would say we are well prepared and have a high level of innovation in order to also be positioned for the future, and the future will not be the same as it is now. We are in a good phase and we are also well prepared for changed behaviors in the future. It's both good position now, but maybe also even more important, good position for the future. Where do you think you stand out versus competition? As I said, our concepts is I would say is one of the reasons. We have strong brands, which means that we can attract the car owners through our network of affiliated workshops. We have very high availability, that's another area. We have locations. We have coverage and both, and we also have this multi-brand strategy, which means that we have several brands to attract several segments of the market. We also are everywhere, which is also very important in terms of availability. Has that changed versus before or? No. We're getting better. Okay. So it's- Okay. Thank you. Even better next year. Yeah. Maybe also on cash flows, which obviously were strong in 2020. You mentioned inventory a little bit, but could you give us more color on the status on working capital in general moving into 2021 and also what payments remain or the things you were pulling forward on last year and also on what you expect for CapEx? Thank you. Yes. As you noticed, we have a very good cash flow for both the quarter and the year. In working capital, there is SEK 208 million from state support regarding taxes, et cetera, that we will pay in Q1 and Q2. That is out of the SEK 300 million in better working capital, SEK 208 million comes from state support. When it comes to investing activities, we see more or less the same for this year as for 2020, between SEK 170 million and SEK 200 million perhaps, something like that. No increased investing activity for this year. Okay. The net effect of the inventory, I think you talked about you were slightly overstocked, but also you see some opportunities. What is? Yes. We have about the same. When you look at the balance sheet, you can see that we have a reduction i n stock values. That comes mostly from currency when we revaluate the stock in different currencies. As Pehr said, we have not seen the reduction in stock in Strängnäs yet. We are overstocked there, and we will see positive effect from the merger of the warehouses as one item, and on other locations, we can see a slightly increased stock due to the new Tungbil, for instance, in Norway. Our goal is to keep an optimal stock level so we can serve our customers in the best way. Okay. Maybe for Pehr, you also talk about the business opportunity you see in the light of more green vehicles and new customer behavior. I guess you will talk about this on the CMD, but could you give some examples on what you see on these kind of opportunities? Thank you. I think one example is what we announced already last quarter with this collaborations with ChargePoint in Norway. There is more possibilities in that area, definitely. It's also, I would say, how to be a part of the full value chain. I will keep that secret until the CMD. We have something to talk about that day as well. Please hang on. Okay. Yeah. Yeah. Thank you. Maybe a last one. You talk about some structural initiatives within Mekonomen. I think you talked about it during the year, but can you say what you have implemented during the year when it comes to structure changes within that part of the group? Thank you. We did, we had one of in Q2 and Q3 of approximately SEK 50 million, and that is cost for closing unprofitable branches and some unprofitable workshops. We follow this closely, we can see also that has improved the EBIT in the fourth quarter that we took those measures. Of course, next year we will have full effect of that. That was primarily it. It was some other actions, but the big ones was the closing on the unprofitable business. Okay. Thank you so much. We do have a follow-up question from Mats Liss from Kepler Cheuvreux. Yeah. Hi. Thank you. Well, just a question there about your intentions to move into more heavy vehicle service there in Norway, especially. If you could just give some more indication there. I guess you do it with a partner and it seems, or I don't know, the investments needed to grow in this area. I think the investment is more or less already taken, and it has been increased inventory because this is products which we didn't have. That has been going on for a couple of years. We now have the products in regional warehouse in Gjøvik, but we also have it out in the branches. What we're doing now is that we do exactly what we did with passenger cars 15 years ago, that we conceptualize the workshops, giving them help with education, marketing and signage, and hopefully also with fleet customers and so on. To create a concept which will make the life easier for the workshops and, of course, create some loyalty back to us when it comes to the parts purchasing. Okay. I guess it's not Sweden, which is more like Volvo Scania land, I guess. In Norway, also a lot of Volvo Scania. Are you sort of addressing other brands than Volvo Scania, or how do you sort of play this? Yeah. It's all the same thought as with the passenger cars. We think multi-brand in those terms. Norway is a little bit different to Sweden because it's not that dominated by the Volvo and Scania. There is some more brands of vehicles in Norway. We still believe that there is a possibility in Sweden and in the other markets as well in this area. Maybe Norway is logic that we start there. Okay. Do you see any sort of difference in profitability between the light and the heavier vehicles in terms of spare parts? No. There is approximately the same level of gross margins and so on. Maybe one could think that these parts will be a bit more expensive in the logistics chain because it's more heavy and higher freight costs. On the other hand, each item has a much higher price and value. I think in general, it doesn't differ that much towards what we have in the core business. Well, longer term, how much of sales in Norway do you expect this segment to add to topline? Maybe we will talk about that on the CMD, but I don't have any numbers today. Okay. Thank you. Thank you very much. Ladies and gentlemen, if you would like to ask a question, please press star one on your telephone keypad. There is nobody in the queue at the moment. I will connect you straight away. Thank you. The next questions come from Stefan Stjernholm from Nordea. Please go ahead, your line is now open. Thanks. Hi, this is Stefan from Nordea. Just a question on sourcing. There are much talk about container freight being up quite a bit recently, and also we have raw materials rallied, at least some of them. If the combined impact from sourcing, what can we expect for 2021? Well, if you can tell me the price of containers, I will tell how that will develop in future. There is pressure in that area, we all know that freight costs from Asia has increased dramatically. We don't source that much from Asia that it will have a significant impact, we need to follow this very closely and our ambition is to either we need to talk to the suppliers and get some lower prices to compensate, or we need to be more efficient, or we will need to increase the prices to the customers. The only thing I can say that we follow this closely, we will make sure that it will not affect us very much. So far, you have not done any price increases? Sorry? You haven't done any price adjustments as of now? No, we do price corrections all the time. In some markets, it's annually, in some markets, it's quarterly, and in some markets, it's done by product line. Of course, if there is higher costs, that will reflect that price revisions. I see. Regarding closing low performing workshops, is the worst done now or is it more to come? I think that it shouldn't be more to come in that perspective, but this is also something which we work with continuously. Okay, thanks. Ladies and gentlemen, if you would like to ask a question in this meeting, please press star one on your telephone keypad. We do one more reminder. Ladies and gentlemen, if you would like to ask a question, please press star one now. There is no further questions coming through. I will hand the call back to you. Thank you. All right. Thank you all for listening, and I wish you a good day. Take care and stay safe. Thank you. Thank you. See you February 25th on the Capital Market Day. Thank you.