Hello, welcome to the presentation of Mycronic's Q2 report. My name is Sven Chetkovich. I'm the Director Investor Relations at Mycronic, and with me today I have Mycronic CEO and President Anders Lindqvist and CFO Torbjörn Wingårdh, who will be presenting today. With that, I hand over to Anders. All right. Thank you very much and good morning to you all. What you see now on the screen is the agenda on what we want to talk about today. It is the usual things, quarter two in short, divisional development. We also added, thought it was interesting to also show a little bit of our sustainability strategy. Torbjörn will fill in with some financial details, and then we have also a little bit of information on the recently made acquisition of atg Luther & Maelzer, and then we will end with a question-and-answer session, of course. Today, as an extra service to you, we have also added a compilation, which is the appendix market update, which is a compilation of market data from third parties, which can be helpful for you. This will be in the presentation that is posted on our website afterwards. This together with this presentation, obviously. Okay, if we start with a snapshot of the quarter. What happened in quarter two? We completed the acquisition of atg Luther & Maelzer. That was completed on the 25th of June. All the comparisons here is to the same quarter last year, obviously. Compared to the same quarter last year, the order intake, we saw an increase of 54%, and the increase happened in actually all four divisions. We saw at the same time that the net sales decreased by 2%, and that was very much due to a less favorable product mix. We had a very good product mix in the same quarter last year. Also impacted by negative currency effects of SEK 83 million. That resulted also in a decrease of EBIT with 14% down to SEK 241 million. We had improvements in the High Flex division, High Volume division, and Global Technologies division. The decrease was in the Pattern Generators division. The EBIT margin ended at 23%, and we are very happy and proud to see that in the, what you call the former Assembly Solutions business area, where we have a financial target of reaching about 10% this year. We recorded 13% EBIT margin. We see step-by-step improvements on the margin side in that. On that side. The order backlog declined to almost SEK 1.8 billion, and we have nine mask writers now in the backlog as of end of the quarter. That backlog also includes the SEK 130 million that we get together with the atg acquisition. If you go a little bit more in details on the different divisions, starting with the Pattern Generators. Again, everything is compared to the same quarter last year. We had the sales of close to SEK 400 million and the 45% EBIT. We only had one order, the order intake improved despite that, compared to the same quarter with 89%. We had also quite a lot of orders after the quarter, during the quarter, we had an SLX order. If we look on the long-term market trend, we see that all the drivers and trends for the display market and the photomask markets are all in place. They will still see the same shift from LCD panels to AMOLED panels, more complex displays, more higher resolution displays, and more displays with different shapes, and so on. We see that all the long-term trends are there. That you will see also when you look in the appendix, if you want to do that we had a negative impact last year on the photomask market for display, which actually declined during 2020. There is a forecast improvement from this year and also the coming years on that side. The backlog is SEK 617 million as of the end of the quarter, and at this very moment, we have 11 systems in the backlog, which also includes two orders that we get now in July. The result, the sales gross margin and the EBIT is lower compared to the same quarter. Although we delivered four system this quarter compared to three system, we didn't have any high-end system, so therefore the margin and EBIT is somewhat lower. If we move to the High Flex division, we see a very positive market here. We have a very strong demand from consumers, and also we see the same strong demand for electronics in general. We could also see that the order intake increased with 63%, mainly driven from Europe and also U.S. We had a really major, big order in Europe. In the quarter, t he sales increased by 6%, so a little bit less. We had an EBIT of SEK 11 million or corresponding to 4%, and the same quarter last year, we had minus SEK 15 million. That big difference is actually mainly explained that we had a very big negative currency impact in the quarter two last year, which was SEK 22 million. That difference is actually less than it looks like. The strong order intake, of course, have an impact on the backlog. We're now up to SEK 150 million, which is a very good backlog for the division. Assembly Solutions High Volume, here we see also a very strong market, mainly driven by that we can see that the majority of the business we have here in this division is in China, and we have seen that the Chinese production that outside of China is moving back to China to a large degree. At the same time, there are large investments in automation in this kind of business, which is both favorable for us. We have the number one position in the Chinese market, you can see that the ordering intake increased by 21%, net sales increased to 40%, now up to SEK 315 million. For the quarter, we had a very strong gross margin, and we had a very favorable mix in the quarter of 53%. EBIT, almost SEK 100 million, which is corresponding to a 30% margin. A very strong performance in this division. If we move into Global Technologies, this is the division which will be the home of the recently made acquisition, atg Luther & Maelzer. That acquisition was completed on June 25. The remaining days between June 25 and the end of the quarter is not consolidated into the results. All the quarterly result is without the impact of atg L&M, except for the backlog and the balance sheet. That is how we have treated that part. After many months of weak business in the camera module for the automotive industry, we have seen now quite a good increase in the activity from everywhere, both in the U.S., Europe, and China. We have seen there is quite an intense local competition in China in this business. We have had very good order intake increase in this part of our business. We also have good progress in the die bonding business and with also new customers and some major orders in China here as well. All in all, for the division, the order intake increased by 94%. A very strong increase. Sales was a little bit down, margin is still stable at 38%, the gross margin. We saw an improvement on the EBIT side, we're happy to record a positive result. We have had a negative result here for quite some time. Now we had an EBIT margin of 6% or equal to SEK 7 million. That is actually coming from efficiency improvements that we have made during this last year. Very good to see that is coming through in the numbers here. The backlog here is now SEK 250 million almost, close to. That includes the SEK 130 million that is coming from the acquisition of atg L&M in this case. That was about the divisions. I feel that they have a good momentum here. Therefore, the board also have revised the outlook for the year on the revenue side. We believe that we will reach sales of SEK 4.5 billion. This is at current exchange rates. The reason for change is partly because of the acquisition. Of course, we will have a half year of revenues of the acquisition of atg L&M in here in the result as well. We have seen we have a volume increase in the remaining business, so that together led to this decision. The other targets are still the same as they've been before, that the profitability should be EBIT profitability above 15% over a cycle, a business cycle. A dedicated specific target for what was at that time the Assembly Solutions business area, where we said that we want to be above 10% for this year. For the quarter, you may have noticed that we were at 13%, so ahead of this target right now. The net debt should not be larger than 3x EBITDA, and this is also on average over three years. The long-term target is that we should reach sales by SEK 5 billion in 2023. Coming very close to that right now, as you can see. Okay. Thought this should be a good opportunity also to show a little bit on what we are doing on sustainability and also our sustainability strategy. At Mycronic, we have put three different strategic goals in place when it comes to sustainability. The target is to reach those goals by 2030. 1 is around innovation and our customers, where we said we want to have innovation for sustainability. This is really to enable our customers to achieve their sustainability goals and ambitions. We can do that through innovation of our product. The second goal is that we want to foster and develop future engineers through diversity. We really want to foster diversity, equality, and inclusiveness in all the communities where we act. The last goal is around environmental footprint, and this is our own environmental footprint, where we want to reduce our own carbon dioxide emissions by 50% at 2030. If we look a little bit on what kind of impact we have as a company on the environment, if we look in terms of carbon dioxide equivalents, we have the three different scopes as the standard says, the scope one and scope two is direct emissions. This is all the energy we consume in our own facilities, both fuel for vehicles, oil or gas for heating, or electricity, and also the electricity that we use in all of our facilities. You can see that this is only 2% of the total impact that we have as a company. The largest impact we have as a company is from indirect emissions, which is 98%, which is business travel, transportation, waste, and so on. The largest part of that one is the use of products. The use of products is 80% of the total impact. This is actually the customers' use of our products in their businesses. That is where we have the biggest impact. This is also, of course, where we have the biggest possibility and opportunity to make a change. Therefore, we have this target Innovation for Sustainability. I want to show you one example on what we're doing within this initiative. This is really about our mask writers. A mask writer sold from the PG division, they're typically used 24 hours a day, seven days a week at the customers. The laser in the mask writer consumes quite a lot of energy. This use of mask writers is the largest source of the emissions that we have at Mycronic or that we generate at Mycronic. On the innovation side, what we have done is that with the latest mask writer, the SLX, we have a different type of laser, which is called solid-state laser technology. This laser technology can save up to 99% of the energy used for the laser. A very big improvement in the area where we have the biggest impact. Our ambition long term is to enable this technology in all of our mask writers in the future, then we will have quite a significant change on our impact on environment. All right. That was all for me. I will come back a little bit later. Now Torbjörn will talk a little bit about the financials. Thank you very much, Anders. When we look at net sales and EBIT margin over rolling 12 months, we can see that we had a revenue amounting to SEK 4.4 billion, and we also have an improved EBIT in the three divisions, just like Anders mentioned, High Flex, High Volume, and Global Technologies coming out of the previous business area Assembly Solutions. We are very satisfied about this improvement, which has been very good work by these divisions. For Pattern Generators, it's still generating a very good result. In terms of comparison with in the quarter in the previous year, the product mix is less favorable for Pattern Generators, and that, of course, then impacts our EBIT margin in Q2, which ended up at 23%, and for rolling 12 at 29%. As we clearly see illustrated here on this slide, that our aftermarket business really constitutes a strong and stable base of recurring revenue for our company, which we find is a very good thing to have in terms of our performance. If we look then at the lower EBIT in Q2, where the 23% should be compared to 26% in the same quarter in the previous year, we can see that the effects come partly from volume and partly from the COGS, which was, of course, impacted by product mix. The negative volume effects, they were pertaining to Pattern Generators and to Global Technologies, while we could see a positive contribution from High Flex and High Volume divisions. Increase in R&D expenditures, and we'll come back a little bit to that later. Of course, R&D expenditures are very important for our company and for our continued strong future. We have an impact from lower capitalization behind this increase in R&D costs. As you know, and it's important to reiterate that we are very conservative in terms of activating R&D cost on a balance sheet. This time, there was a bit of a difference, and the difference was that the capitalization was lower, as I said. In terms of the selling cost, that has been impacted by M&A activities, and I'm very happy about the acquisition that we could conclude here in quarter two. In terms of current results, they were, in this quarter, positive effect compared to ending up at other income and expenses. When looking at the quarter in the previous year, you can see there are quite big swings in some of the currencies impacting us. Ending the quarter then at 23% EBIT margin for quarter two. If we look a little bit closer and now when we present our divisions externally since some time back, we can see that the change here, as we have described to a large extent, is for Pattern Generators. While Pattern Generators still generate a very strong performance, when comparing to the quarter two in 2020, it's SEK 99 million lower. As we said, for the other divisions, there is a good improvement. High Flex, SEK 26 million, High Volume, SEK 37 million, and also Global Technologies, despite lower volume, still an improvement because they have worked very diligently on their cost side. For the group functions where we have taken costs for the acquisition, we have an increase in cost at that part of the business. As you can see, the three divisions from the former Assembly Solutions could not fully outweigh the change in product mix for Pattern Generators, but it's a significant chunk that could be compensated by improvement in those divisions, which we feel very satisfied about. Looking at R&D for innovation and growth, which continues to be very important for our future. We would like to iterate that, of course, our spending on R&D is based on conscious and business cases in each of the divisions in terms of their respective R&D opportunities. That is the guiding principle in our new organization with decentralized decision-making. Underpinning this is the decisions in the respective divisions. Still, we find it interesting to display and comment at group level how we develop here. As we said before, impacted by lower capitalization, the R&D spending increased SEK 10 million compared to quarter two in last year. We have a rolling R&D cost to sales ratio at 12%. Of course, in terms of our strong balance sheet, that had an impact from the acquisition that we performed. In the investing activities, which you see here, is almost SEK 1.1 billion. The acquisition of atg L&M was a little bit more than SEK 1 billion. In terms of the financing activities, we utilized credit facilities for almost SEK 500 million. We also paid the dividend of close to SEK 300 million, and we also had a small acquisition of non-controlling interest in a subsidiary to Axxon. We end the quarter with a net cash of a little bit more than SEK 300 million on June 30. In terms of available cash, we have a little bit more than SEK 1 billion cash at hand. Having said that, I hand the word back to you, Anders. Okay, thank you very much. I want to talk a little bit about this latest acquisition of atg Luther & Maelzer. So, atg L&M is a company headquartered in Germany, Wertheim, in Germany, 190 people in total, global business and global coverage with all these people. The company develops and produces and sells what is called flying probe and grid test systems for PCB. This is what this equipment is doing. It is testing connections on PCBs with pins. We have here two different type of technologies for doing that. You can see illustrated on this page on the top right is what is called flying probe. The flying probe tester is robotized, where the pins that test the electrical connectivity on the boards, they are robotized and can move in various patterns, which allows for a very high flexibility in the test. It can test different type of boards with high throughput at the same time. The other technology is called grid test, and the difference to that, so it's still pins testing electrical connections, but it's in a fixed pattern. This is for high-speed production, because here you have no flexibility. You put the grid in a specific pattern that corresponds to the board, and then you can move the products very fast through this process. We have these two technologies of electrical testing. When it comes to the different product lines, so we have what is called flying probe PCB test, and this is this robotized flying probe technology on PCBs, and typically with high flexibility in the low to mid-volume market. We also have flying probe technology for testing substrates with the same robotized technology solutions. Here we can test down to a very high accuracy of 10 micrometer on the pad sizes for different substrates. Then we have the grid PCB test, which is just a fixed pattern on the testing pins for High Volume production. This is the offering. In addition to that, atg also have a very strong aftermarket and consumable business, which is very nice. Why we believe that this was a good company for Mycronic to be the owner of is that we could see that atg L&M really have a very good DNA and culture. They have a very similar thinking with us. We have a similar position in most markets where we also have a strong position in the High Flex market with high precision and a niche position in this kind of market. The business is very stable. It's well-established, has been there for a long time. The company have a leading position in the flying probe test, very solid aftermarket business, and a strong profitability, which is also very stable. I think it's a really good company and a very good fit with us. Why we believe that we can be a good owner and a good home for atg L&M is that coming out of different ownerships in the past, we will be a long-term focused owner, really to allow atg L&M to focus on its business and develop that business. What we can offer is that we have a very strong global presence in the right markets and the right places in the world that atg can leverage, and especially strong presence. What we have from Mycronic is our China presence with more than 800 people in China right now that atg L&M also can leverage on. You saw that [Jesper] told me that even though we have just made acquisitions, we still have strong financials to allow for further expansion around this technology. You see that we can be a very good owner, and we're happy to have atg L&M on board with us. All right. Just some final remarks before we move into the Q&A session. I think that we see that we have a very strong position for continuing with the sustainable profitable growth. We have with the setup and operating model that we are running in a very customer-centric, very scalable, and decentralized organization. In all our businesses, we have a very competitive product portfolio, which we continue to invest in to stay competitive, and we want to make this sustainable growth through a combination of organic growth and acquisition-driven growth. On top of everything, very dynamic, innovative, and responsible culture. I think we have a very good position to continue our growth journey. We look forward to the coming quarters with that. All right. That was everything from me. Now we can move into the Q&A session. Okay. Now we're moving over to your questions. In general, please keep it to two questions per time in order to allow for everybody to be able to ask questions. If you have more questions, you could ask them later, and we will try to get to those questions as well. I will ask the operator, do we have any questions? Thank you. Ladies and gentlemen, if you have a question for the speakers, please press zero one on your telephone keypad now. If you wish to withdraw your question, you may do so by pressing zero two to cancel. Once again, if you have a question, that's zero one on your telephone keypad now. Our first question comes from the line of Daniel Djurberg of Handelsbanken. Please go ahead. Your line is now open. Thank you very much. Congratulations to the very good report, and especially from AS segments. I would like to ask you two questions, if I may, that is mainly on the PG side on displays. We saw in your presentation in appendix that the market expects growth for photomasks in displays 4.5% this year after a soft 2020. I was wondering if you have any insight in how this growth is expected to pan out in terms of more advanced masks, i.e., AMOLED and G10.5, or versus the lower end up to Generation 8 and more LCD? So far, the orders you took here in July has been more tilted to the lower end. Hopefully we will see the more advanced masks also in second half. Any comments would be great. Yeah, that's a difficult correlation to be made there. I think in general, I would say that an increasing photomask market must be a good thing for us and so on. Then what kind of equipment that will result in. We see that there is still a very strong, You see also on the other page, I think also that actually, that you can see the transition from LCD to AMOLED is quite much stronger than the display area growth in general. We still believe in a technology shift there where the AMOLED that requires a more advanced photomask will have a stronger growth over the other type of technology. Also the same is valid for the new kind of the complexity of displays where we believe that there should be a breakthrough, or we will see more of foldable and curved and new shapes and so on. How that will be at the end, that we cannot really comment on, of course. I think on the market trends, we believe that it's going in the right way. Do you have any insight on how large part of the AMOLED that you do serve or is currently served by the Prexision 800 Evo and so on, and how much more masks that need to be done here? If you understand my question is, the underlying demand uptake in AMOLED versus the current availability for advanced photomasks. Yeah. Any data? I can see where you're going, but it's not possible to make that correlation as. Yeah. We know that all the AMOLED displays and the backplanes and so on, all the backplanes in those displays are using high-end mask writers. Yeah, but the t he driver for mask writer is the change in technology and so on, and not the volume of it and so on. Yeah. Yeah, and that split, we cannot see. No, of course. The last question, if I may, and that is with regards to the EUVs on competition to SLX. Is those machines much too expensive still to be seen as a competition to the SLX business or are they coming down in price so it can start to compete also with the SLX? No, there's a significant price difference between that kind of equipment. It's not only in the writer itself, it's also on the surrounding equipment, what you need downstream and upstream in such a process. You need to build the complete process around the EUV technology or the laser technology, and the equipment used also after and before also have a very different price point and so on. There's a clear distinction where you can use laser technology and where you will use other type of technologies. It's really coming down to the node sizes, how fine patterns are printed. Perfect. I think I have my two questions. Good luck and Q3 and have a great summer. Thank you. Our next question comes from the line of Fredrik Lithell of Danske Bank. Thank you for taking my questions. Hope you are all well. I had a thinking around the MicroLED and MiniLED. If you could address those two emerging technologies, even though they are in very early stages, what would that imply for you in terms of what type of equipment on the PG side that would be demanded for those types of applications? Are there any differences? Are those applications even more complex, each of them, or is it any other thing we should think about there? Thank you. Yeah, I think that's a very good question. We could see that those technologies are picking up and they also have positive impact on our other divisions actually from this technology as well, which is in total a good thing. I cannot give you a very straight answer, but both the MiniLED and the MicroLED technology requires also backplanes in building up the displays, quite similar to the LED technology. Still photomasks will be required for making that. How that will look at the end, I don't have an answer on that actually. Okay. Can I take another question on then on the similarities or differences between High Flex and Hy Volume? You have a very strong demand from customers in High Flex as you have in Hy Volume, but you have very different type of EBIT margins here. Is that due to? Within High Flex, for example, you have stated in earlier years that you're one of the leaders and have up to maybe 50% market share on the High Flex. Is there a difference between these two segments that make it so that the High Flex should run with around 4%-7% EBIT margin, meanwhile the Hy Volume is a 20%-30% EBIT margin, or can we see High Flex moving higher? Thank you. Yes. It's very different segments. If you look on the end products, it's really Hy Volume is mobile phone, consumer electronics, computers. For our High Flex division, we're really serving the market that really end products are typically medical equipment or aerospace equipment and high-end industrial equipment and so on. Very different, but the demand is strong in both right now. If you start with the High Flex, so we are not happy with the margin we have in High Flex. That's also part of this former, when it was all Assembly Solutions where we said we want to be above 10%, and with a strong emphasis on above 10%. Of course, High Volume is contributing quite a lot to that difference, but we want all divisions to contribute to that target quite a lot, and I believe that we can reach higher margins also in the High Flex business. Actually on that, still work going on there. I think why we do so good in the High Volume, it's also different technologies. The majority of the equipment we sell in High Volume is dispensing equipment, which is a higher margin product compared to what we have in the High Flex division, which is more pick-and-place and jet printer equipment, which is typically lower margin products. It's also the different type of products that generates the different type of profitability here. Shouldn't one assume that the jet printing, for example, which is a very unique technology where you don't really have any competition, should carry and should help the High Flex to create better margins due to the uniqueness and thereby that you can price it in a different way? Yeah, absolutely. We are striving for better margins in the total High Flex. I think the same is actually valid for the uniqueness of our pick-and-place equipment and also the storage solutions that we have. Improvement possibility all across- Okay ...in that one. Okay, perfect. Thank you. Thank you. Thank you. Ladies and gentlemen, once again, I remind you, if you do have a question for the speakers, you may ask by pressing 01 on your telephone keypad. Our next question comes from the line of Mikael Laséen of Carnegie. Please go ahead. Your line is now open. Yes, good morning. Hi. I have a couple questions on atg. First of all, can you tell us the growth rate that they have generated past couple of years, maybe four or five years, and the expected market growth going forward for flying probes and grid test systems? They had a different owner the last years and so on. I think we stated when we acquired that last year, they have revenue of SEK 420 million, if I look at Torbjörn a little bit. Yes. That's right. 420 million. That's right. Yep. for 2020, and so that is the only what we can disclose from that. I think also we said that the growth rate has been on the conservative side over the last couple of years. We've indicated that also. Yes, exactly. This business is not a super-fast growing business, but a very stable and with moderate growth in it. Is this also the case going forward, that they will have maybe 3%, 4%, 5% growth? Could it be better than that, double digits, maybe? We'll not comment on the numbers there, but we are looking for it. Our expectation is that this business will grow, but not at super high numbers. Okay. Got it. Just curious to hear about the growth drivers, the Global Technologies product areas. They have good support from structural trends, autonomous driving and 5G and data center investments and so on. What about atg? Is this company also benefiting from underlying trends in the PCB or substrate markets in any way? Yes, it's different type of drivers. It's also the drivers we can generate with the products, but also in the market. If you look in the market, the market for testing in general is a growing market. There's more quality assurance, there's more testing, and we also know that the High Flex side of market is a good market to be in, especially now with the production being more localized everywhere. Maybe the volumes will be actually lower when it's produced in more places than one. The big growth driver in this market is on the substrate side, which is still quite a small part of the testing or of the, how do you say, the market or the products that will require testing. The substrate market over PCB have a quite strong growth, actually. That is also a driver to participate in that one. For sure there are, as well here, some good market drivers for us. All right. That was my two questions. Can you say something about the PPA amortization, if you have any early guidance on that would be great. Thanks. Just like we always do following the IFRS set up, we have done the preliminary PPA, as you can find in the quarterly report. We see the pattern, just like in our other acquisitions, that in respecting the valuing the inventory at market value, it means that for the first two quarters, we will have an impact of turning around that inventory that has then been valued upwards in connection with the acquisition, lesser gross margin than what is the case on the underlying. We have commented on that as we proceed, we will use similar types of communication tools to show how the underlying business is performing for that. Of course, in the coming two quarters, the contribution for this recently done acquisition, just like in our previous acquisitions, will be lesser than what it is in the medium and long term. Okay, thanks. Thank you. Thank you. We currently have no further audio questions. I will hand back to the speakers for any further remarks. Okay. With that, I think we've reached the end of today's presentation. Thank you for attending.