Good morning, and welcome to the Nederman Holding audiocast with teleconference, Q2 2021. For the first part of this call, all participants will be in listen-only mode, and afterwards, there will be a question- and- answer session. Today, I am pleased to present CEO, Sven Kristensson, and CFO, Matthew Cusick. Please begin your meeting. Good morning, ladies and gentlemen, welcome to this session where we are going to present Nederman Group quarter two 2021. Starting with a bit of a summary and some highlights, we can conclude that we have seen recovery, a continued recovery in many of the markets. There are, of course, exceptions. We have seen further closedowns and lockdowns and so on, but generally speaking, we have seen a continued recovery in many markets, not only compared with last year, which was easy to beat in comparison, but even so, we had close to 10% order intake growth compared to 2019, which was more of a normal year. We have also been able to deliver strong profitability in three out of four divisions. Very good profitability in MCT, and also very good in the other two. For Process Technology, where we have the large project, we have still had some difficulties sales-wise, depending on the long lead times and the low order intake last year. What is good is that we have had a very good order intake and a bounce back in order intake bodes better for the coming quarters. When it comes to cash flow, cash is king. We have had a very good cash flow for the first six months here, and we hope to continue have a good trend. We see also increased demand for digital solutions and digital tools that we are supplying. We have for some time said that we are focused on digitalization, both with the offering and the tools that we are using internally and also providing our dealers with that. Here we have also interesting that we are one of the finalists, one out of three to the AWFS show in Las Vegas on woodworking, world's biggest woodworking. This is the digitalization tool, the tool that helps you to make 3D drawings. It simplifies life for internal people in Nederman Group, also helping our customers to do a better and quicker job. Very increasing hope that the team will win this challenge. There are, of course, also some continued concern over raw material prices and also transport, not only pricing, but also difficulties to booking transport. We are handling it, but it's a thing that needs to be kept under control for the coming period. Okay, if I move on to slide three and take you through a couple of slides on financials before we go into dig into the divisions. We look at orders and sales for quarter two, order intake was at SEK 1.058 billion versus a very low SEK 740 million last year. That's currency neutral growth of 54% versus Q2 last year. How comparable that is everyone can understand is not really relevant. Sven mentioned already 10% growth versus Q2 2019 gives you a picture of how we've done. Sales SEK 977 million in the quarter, which is also higher than Q2 last year by 14%. Currency neutral growth is actually negative versus Q2 2019. Sven's mentioned some of these difficulties regarding in executing projects, we'll come back to that, particularly on Process Technology side. January to June, so the first half year, we've done almost SEK 2.1 billion in order intake, which is 31% higher than last year, and more interestingly, 10% higher than 2019 currency neutral. Sales SEK 1.845 billion for the first half year of this year, which is just below SEK 1.9 billion we did January to June 2020. Currency neutral, that's actually growth of 5%. We can see that the currency is impacting us negatively to some extent, and as you would expect as well, a slight negative growth versus Q2 2019. If we look at the charts on that page briefly, you see that the order intake chart has continued this upward trend on the quarter-by-quarter basis. The other perhaps interesting thing to note is that order intake for Q2 2021 is on a rolling 12 basis, we're over the SEK 4 billion mark again, whereas sales is under, and that hints that we're building some backlog. If we look at slide four, profitability and cash flow, adjusted operating profit was SEK 97.6 million for the quarter versus SEK 73 million last year. We got to our 10% target yet again. We adjust, but we got there. Profit after tax, that was adjusted operating profit 10%. I ought to mention there was this, and some of you will have seen, there was this one-off booking related to a defined pension contribution, defined benefit pension scheme in Norway that has been disbanded. That was a pure accounting booking for SEK 29 million and we ignore that for all the purposes of presence of the profitability here. Adjusted operating margin 10%, like I say. Profit after tax, SEK 83 million, which gives us SEK 2.36 per share. Cash flow from operations in the quarter, SEK 181 million versus SEK 62 million last year. We see on the chart on the bottom right how strong we are already this year on cash flow. Over SEK 250 million has come in from operations already in the first six months of the year. January to June operating profit, SEK 185 million versus SEK 138 million last year. We are at 10%. We've hit 10% for three quarters in a row now, which we're quite happy with. Profit after tax, SEK 140 million. Earnings per share, SEK 3.99. A little bit frustrated we didn't get SEK 4, but this is how the numbers fell out, and that's where we are. Like I mentioned, cash flow from operations now so far this year, SEK 254 million versus SEK 75 million last year. This is one factor behind the dividend announcements, which we will come back to later in this presentation as well. If I move on to slide five and Sven can tell you a bit about Extraction & Filtration Technology business-wise, and I'll tell you something about the numbers after that. Extraction & Filtration Technology, our largest division, mainly trading under the brand name Nederman, and customer and applications type, woodworking, composite, welding, and other general dust applications. The development during the quarter has been good. They have had growth in orders received and sales in all regions. The sale of SmartFilters to continue to increase, and again, as I said, how smart is a filter? When it is the new fully launched or last year launched filter series with a new control system that are also enabling Insight and they are Insight Ready. Insight Ready is our IoT solution that can help our customers to get more information and simplify life for them. We see a significant increase in interest in also linking it up to service agreement. Increasing factor utilization rate has been a positive factor. That does not mean that we are fully loaded. We are still in a situation where we have plenty of room for more orders. That is not the limiting factor, but it has an impact, of course, on the profitability, which is next point. They've shown a very strong profitability in the quarter, both from very good continued work and also some positive mix situation. In EMEA, we can generally see a very good recovery in most markets. There are some exceptions, but generally a clear good recovery. It's mainly the base business, because we haven't received many large orders. Basically, one large wind power order in Denmark. There's been product sales, and it also includes some of our partners and distribution network has been doing reasonably well. As mentioned, we have also in conjunction with the launch and sales of more Insight subscriptions, we also see a positive development in the service business. Moving on to Americas, we've seen a solid growth in all markets. Once again, it's a base business, but there is one big order, a major order to rescue service segment. There are medium-sized orders in Canada and the U.S. to mainly the wood industry and some others, but no large, with the exception of one to a rescue service. Service business has also been strong and again related to the new digital services. Asia Pacific, several markets are still affected. We've seen later part that new restrictions in especially India, Thailand, Malaysia as well. There has been significant new restrictions. India has had a very tough time, and now they are starting to reopen. Generally, we have had a healthy growth in the region. Especially Australia are coming back again. What has been the division's key activity? There has been successful product launches in the rescue service segment in North America. We have digital product development continuing. We have further launched digital filters in central to retain strong market position. We continue to develop. We continue to fill these new features with capabilities positive for our customers' business. The material prices are increases. We have adjusted the prices, there are risk for lags because the speed and the lack of components makes it more difficult. It's a moving target. There are risk for a hit on margins in short term. We are doing well. The teams have been doing an excellent job so far. We have been able to supply our customers with very limited delays. We have also, which is important, ISO 9001 and ISO 14001 has been approved. There were no comments. Our continuous work with environmental issues, sustainability issues, and quality is paying off. If I take you briefly through the financials for Extraction & Filtration Technology, I won't call out every number on the table that you see. Orders for the quarter were SEK 475 million, which is 42% up versus last year. Sales SEK 444 million, which is approximately SEK 50 million higher than the same period last year. Adjusted EBITDA SEK 80 million, which is 18.1%, which this is Sven mentioned there. This division's had a very strong profitability in the quarter. We did 10.8% in a tough Q2 last year. If we look maybe at the order intake, if we look January to June, the order intake is now SEK 906 million. That's 24% up versus 2020. More significantly, it's also growth versus 2019 and currency neutral. Adjusted EBITDA year- to- date, 17.3%, so rather strong for this division. That's SEK 145 million in EBITDA that they've brought in in the first six months of the year. If we move on to slides number six, which is Process Technology. Yep. Process Technology is, as you are probably aware, where we have mainly large systems. We are in textile, we are in recycling, meaning aluminum smelters, leather. We are in foundries. Bigger projects overall, where Luwa is doing very well. We had a very strong order intake, more than 100% growth versus last year. We have to remember that Q2 2020 was exceptionally low. The backlog is, however, SEK 170 million higher than the year-end. We have, during the first six months, built a healthy backlog. There has been, due to this, an extremely, I would say very good working capital development. We are also seeing increased sales of digital solutions and related services. We see that for Luwa, the textile segment, the fairly newly launched control system, D7, are very well received. We now continue to integrate Insight possibilities with that. That has been well received with the increasing number of service contract and supports in that area. Differentiation from competition. Reduced margin because of lower sales volume and some lower margin projects in the quarter. Project execution, we have had some delays due to COVID restrictions. India, we continue to have order intake, but the Indian authorities have periodically forced us to shut down the factory for weeks or days and so on. That has had a negative impact on our ability to execute the project. We've seen some of that also in Turkey and some other places. If you go to Textile and Fiber, we have seen a continued recovery. 50% of the division's order intake year- to- date is coming from Luwa, meaning the textile and fiber. We have seen that even China now is coming back. Some pressure on local price competition, we try to fight that with our higher technology content, with our new digital D7 and Insight, et cetera. Coming back again, the lockdowns in India and Turkey have disturbed [audio distortion]. Our Indian team is doing a fantastic job under very difficult circumstances with flipping orders, handling it to the best. So far, we have very positive [audio distortion]. In the foundry and smelter area, we have seen some increased demand for aluminum recycling, especially. A lot of new applications, there is a growing quotation pipeline, especially on the European scene. We have basically one really large order, a 10-year service contract with digital monitoring of connected systems, which is again, a result of our work and continuous work to offer new solutions to our customers. Key activities, growing share of systems sold of Insight Ready. Majority of these systems then result, as mentioned before, in a service agreement for one or several years. Supply and logistics chain is in focus. There is rising prices on material and transport, and there's also an increasing problem to book transport from China to other places, Egypt or wherever you now should supply. We have dialogue with the customers and to mitigate this impact, both on price and also making sure that they can get their equipment to install. We have reviewed the entire order book and are in dialogue with our customers to mitigate the impacts, both of increased transport costs and material cost. If I go through the numbers for Process Technology briefly, in the quarter, the division took SEK 328 million in orders, which is 101% growth versus obviously a very weak Q2 last year. Perhaps more significantly, it's also in excess of the sales that we did in the quarter, which were SEK 290 million. Like Sven mentioned, we had low sales volumes and some lower margin projects happened to be those ones that we were able to execute during the quarter. That combination has led to a rather low EBIT, SEK 1.6 million, 0.6%. What is most interesting here, if we take year- to- date, for the first six months, we've taken SEK 703 million in order intake in the division and only invoiced SEK 533 million in sales. It means we've built the backlog, as Sven mentioned, of SEK 170 million. Some of that is good ongoing business, and some of it is a result of the delays that we have seen in certain parts of our project execution. There is a chart on the slide on the top right side where you can see orders against sales for every quarter since the start of 2019. We see that for some time during 2019, we were eating into backlog. That was from some Luwa backlog, which was extremely high when we acquired them late 2018. Of course, Q4 2019 and Q1 2020 were actually rather good for order intake. We saw the very low orders in 2020. You can see this gray curve where we ate backlog throughout 2020. It is now on its way back up. Why talk about backlog? The Process Technology is a backlog business. The time from order receipt to final commissioning of a project can be roughly 12 months or more in certain larger projects. This is significant, and it is a positive sign. The very low profitability you see in Q2 2021, that should not be what you expect to see going forwards here. I'll move on to slide seven and then Monitoring & Control Technology, Sven. Yeah. Monitoring & Control Technology is where we have our digitalization with Nederman Insight. We have the measurement and control from Auburn FilterSense, Gasmet, NEO Monitors. The development in the quarter is that we have had a strong order intake, good sales in the quarter, and a very good profitability, record high, 23.5% in EBITA. If we go to the geographical areas, we have in EMEA have an increase versus last quarter, and orders and sales was a little bit lower than a very strong Q2 in 2020. We have seen less of a COVID impact last year in MCT than in the other divisions. We have had a negative impact from COVID restrictions, mainly in the process control area. The emissions related business has been more positive. Why the process control area? It has been a limitation of access to sites. That has been an issue. In APAC, orders and sales both higher than last year and last quarter, and it's been the Chinese market that has been driving the growth. There has been a positive impact for the whole entire region. In Americas, we had good order intake, and we have growth in that market. We see that they can work much more efficiently, and the market is almost unaffected right now, at least, by the pandemic and the lockdowns and restrictions. However, some of the activities planned that in growth plans we've had for the division in Americas has been hampered by the limitation and still active limitation of us visiting and being able to do some of the initiatives. The key activities is that we have, in order to mitigate the problem of traveling, we have built the first digital demonstration room in NEO in Norway, and that can improve digital customer meetings, and it can also give training to service technicians on remote. We have made this investment, and we will continue to do investment similar to this one. We are sort of learning from the first one that was launched here mid-June, and after the summer, we will take decisions where we will put our next training center, digital customer meetings possibilities. We have completed Insight integration for LBR business, that's for wood application, and they are sold by the EFT division, and we increase, of course, the sales of connected vehicles. We have launched two new products of emission monitoring. T-flange doesn't say anything for your LaserI nspect, but they have been initially very well received, and we continue high speed in developing new products and launch new products in this segment. Over time, things will be more commoditized, so we continue very high speed on delivering new solutions in the area. That comment on solution, Sven, leads nicely onto the profitability. Why do we keep investing in new solutions here? We see what margins we can get out of this business if we execute it properly. In the second quarter of this year, we took SEK 140 million in orders received, which is 25.8% growth currency neutral versus last year. Sales were SEK 136 million, which gave us an EBITDA of SEK 32 million at 23.5%. Very good profitability for this division in the quarter. Year- to- date, SEK 259 million in orders, SEK 258 million in sales. It's good growth again versus last year, and we're almost 21% on an EBITDA margin for the first half year here. Not much more to say on this division. I think it's gone rather well in the quarter, so I'll move on to slide eight, Duct & Filter Technology. Yep. Duct & Filter, as it says, it's ducts and it's filters for internal use and external. We have seen a continued recovery in most markets during the period, and we have a very strong growth versus last year's Q2, and we are definitely back in line with 2019, which is a good sign. Improved volumes operations efficiency is leading to a strong profit margin. We have, again, invested in our new tools. We have invested new upgraded ERP, and we have better control. Nordfab continued strong order growth in all regions. In U.S., EDI orders continued to grow, meaning that our efficiency work is paying off again. We had one big order, and that was a mining order for a Canadian customer. What was a good sign is that we had a record order intake in Europe. Europe is still significantly smaller than our U.S. business, and we are working hard to continually grow that. We are very happy for that. We also had a solid growth in Thailand, which is smaller part of it, but it's mainly export driven to the neighbors of Thailand. Menardi, where we do filter element, had a weaker development in the U.S. The acute need of replacement paper that gave us a good boost in Q1 has died out. That wave has died out a bit, so now they have to work even harder to find new orders. Good efficiency and cost optimization means profitability, and that we could maintain the profitability. We booked a semi-large clean room order for a new battery plant in Estonia. The key activities have been the earlier mentioned interactive Nordfab 3D tool, QFV, and it was launched in the U.S. market. It will give improved efficiency when it comes to design and order and installation. Basically, you get a 3D going. You can put in your specific data, then you get basically a bill of material out with an order form. It simplifies life, and it's very well-received. Again, that's why we are one of the finalists in the design award or innovative award. Again, it will be launched in metric in Europe and Asia later in the autumn. We also, since we have had limited travel access, tried to do it in a different way and what we believe is part of the new normal. Virtual sales training has been completed for all sales personnel. We have used some external support, and we have also trained online training to all sales personnel. It is possible. We cannot just sit and wait for what was the good old days, so we are now focusing on much more online sales meetings. Of course, it will not completely take away the need of travel and meeting people. We have adopted well. Steel prices increases mitigated by customer price increases. There is, of course, a risk because it continues, and so far we've been very successful in pushing it forward and into the market. Of course, our risk of market decline and margin decline if this continues. We have also, as mentioned before, ordered a truly automatic duct production line that will be placed in Denmark, in Europe, and it's scheduled to go live later in Q4 2021. It will increase our capabilities, efficiencies, and also increase the range. We can do longer pipe, and that means we will be even more attractive on the market. If I move briefly on to financials for Duct & Filter Technology, external order intake is up 41% currency neutral versus last year to SEK 114 million. Total sales of SEK 131.6 million in the quarter. Remember, this division actually sells to our other divisions as well to some extent, so this is total sales, including internal sales. Adjusted EBIT, SEK 24.7 million is 18.8%, which is very slightly lower than it was in the quarter one. We see a little bit of this margin decline has crept in and like Sven says, there is a risk that it could drop somewhat further. We're working very hard to ensure that that doesn't happen. So far year- to- date for the division, SEK 50.6 million in EBIT, 19.5% is extremely healthy and a good sign that these operational efficiency is working along with a return to volumes somewhere near 2019 levels again. Moving on to slide nine, a summary of the quarter, Sven. What we mentioned before, we have continued recovery in many markets. We are pleased that not only a very good growth compared to last year, but also a reasonable growth with 10% compared to 2019, which is sort of a more normal year that we can refer to. We are happy that the three out of four divisions have shown very strong profitability, and we have shown a very good cash flow, very much from the fourth division that has had a very good order intake and cash flow. We see that the demand for digital solution and digital tools is growing, and we are very pleased to see that since we have spent the two years here investing a lot of time and money into building these solutions and tools. There are, of course, again, repeating myself, concerns of raw material price increases and availability and transport difficulties and prices, which we continuously work with to make sure that we do the best we can. That comment leads quite nice on slide 10 and the outlook, Sven. You want me to say that we are cautiously optimistic ahead of the upcoming quarters and are seeing a continuous successive return to normality in most of our markets. Our base business and strong digital offering mean we are doing well in the current market where the major projects continue to be delayed. We expect lockdowns and restrictions to have increasingly less of an impact on investment decisions. Rising material prices and transport costs are putting pressure on profit margins, and the negative impact is expected to increase in the short term. Lockdowns have shown what the world can look like when the air is not polluted by industrial emissions. This can be achieved without the paralyzing pandemic. More and more people understand what needs to be done. Every Nederman installation plays a part. Political will throughout the world is also required to use regulations and incentives to work to reduce the risk of millions of people dying prematurely from breathing dirty and hazardous air. This increased insight into the importance of clean air is expected to strengthen the market in the long term. Okay. Dividend slide 11. Some or most of you have probably noticed the press release went out yesterday evening. The Board of Directors proposed the dividend. We said we were going to come back with a comment regarding dividend latest at the end of Q3. The Board of Directors has already now proposed a dividend of SEK 1 per share to be decided upon at an extraordinary general meeting. Notice for that meeting will go out later today. The Board are of the opinion that given the group's financial stability and a good capital structure, good cash flow, and solid profitability, the dividend can be motivated. It's basically a return to the group's dividend policy. This SEK 1 per share equates to 32% of the net profit for 2020. The main point here is that it is a return to the group's policy that we've had for some time of 30%-50% of the profit after tax being paid in dividend. Final slide 11, the financial calendar, the extraordinary general meeting for which the notice will come out today, as I mentioned, that will be held on the 25th of August as a postal voting meeting. The interim report for January to September, so the Q3 report goes out on the 22nd of October. At that point, I think we can stop talking for some time and maybe open up for some questions. Thank you. If you would like to ask a question, please press zero one on your telephone keypad. If you need to withdraw your question, you may do so by pressing zero two to cancel. There will now be a brief pause while questions are being registered. We have no questions registered. Oh, no, sorry, we've just had a question registered from Anna Lindholm-Widström from Handelsbanken. Please go ahead. Your line is open. Hey, Sven and Matthew. Thank you for a very great presentation. Thank you. How are you thinking about sales growth ahead? Are you looking for M&A opportunities? I am especially thinking about your increased cash flows, or is it more of a waiting game, meaning that the reopening will offer enough sales growth ahead, or how are you thinking about this? We have to say we have an ambitious target to grow with minimum 10% in a cycle. We have and are continuously looking at opportunities when it comes to M&A. That doesn't stop us from wanting to grow organically, which has been the case this now. We are working continuously with these two parts of growth scenarios, and we are evaluating loads of opportunities also now at this moment. Again, we are slightly picky what we want. It should fit into our four cornerstones. It should give us more availability to the market, and it should be maybe technology add-ons in MCT division. In the other divisions, it's more that we want to get access to markets since we have, I say internally, we have too many products. We have a very wide portfolio. We can solve most problems in the market. It's difficult to give you a more precise answer than yes, we are working on both lanes. That's very clear. Thank you. Just last question, are there any specific areas where you're more concerned about the increased prices and the supply chain issues, or is it mainly the bigger projects where there is an issue ahead? It's been mainly the project. I can give you an example. We shipped 26 containers from Shanghai to Alexandria. The price increased from $3,000 to $15,000 per container. They closed the Shanghai harbor, so you couldn't load it, and then the customer said, "Well, maybe we postpone it two months and see if we can get a better transport price," et cetera. This is an extreme example, but this is where you see that we have an impact, and our teams are working together with our customers to solve all of this. It's mainly the big, where you have larger shipment and larger orders. When it comes to price, it's been mainly steel that has been skyrocketing and have had an impact on almost everything, and it's also limitations when it comes to access to materials. You have- You have just-in-time deliveries that you haven't really planned for because they are late in shipping in material. Again, we are working together with our customers and have so far been able to handle it to the customers' appealing. They are quite happy with us so far. We haven't seen any really problematic lack of material, which could be, in that case, in MCT division, because there you have very special components. We have been able to mitigate that, especially because we early, already late last year, started to order critical components. Of course, if it continues for another six months, it's going to be increasingly difficult not being hit by any problems. We are working on it. We are aware of it, the organization, I must say, has been working very good in handling this together with our suppliers, our customers. So far so good. Perfect. Thank you. Thank you. The next question comes from the line of [Gustaf von Sydow] from [Catella Fonder]. Please go ahead. Your line is open. Yes, good morning, and thank you for a very nice report. Good morning, [Gustaf]. Good morning. Yeah. I have one question, actually. It's about the Extraction and the Duct divisions. When you see this extreme improvement of the margins, one wonders where we are looking to in a normalized market, basically, to compare it to what has been over the years, this is extremely good. I also wonder, I know your service has increased tremendously, and also the other part is not only goods selling, which I understand is a part of the margin improvement, but I also wonder if there has been a change in the competitive landscape in a way. That's my question, basically. Where are we thinking to be when the normalized market in these two areas when it comes to margins, and is there a change that has made this change to the margin level possible in the competitive landscape? Thank you. If I start, [Gustaf], on the margins on the two divisions that you mentioned there's two main reasons for it. It's as we say, you can see that we've got more normal volumes again. We're back on 2019 levels now, and that's obviously helpful. What we have done is we've taken some costs out as part of this restructuring plan, but it's not really that. That has some help in the short term, and some of those costs do not need to be put back in, even if we take some more volume. We have been working very hard to increase efficiency in the factories. On both divisions, we're around or getting close to 20% EBITDA. I don't know what the heads of those divisions will say, but Sven and I are of the opinion that this is where they ought to be. Okay. That is absolutely doable going forwards. Maybe, Sven, you could comment on the competitive landscape. Part of the competitive landscape, I would say it's rather been more aggressive customers since there has been, how should I say? When you have business that you need to fill, you have a lot of family-owned business that tend to be a bit aggressive in desperation and thinking that selling on price is a good idea. What has been mitigating and how we are addressing this is to give better service and easy to do business with has been a theme over the last few years that we should be better in this. I can give you a nice example. The [QPO] is another part of what Duct & Filter is doing. It has, when it's fully launched now in Assens, what took four hours before takes half an hour, and that's efficiency that gives us better profitability and better service to our customers, and that's why they get new customers. I would say, again, there will be hurdles along the way, but we believe that these 15%-20% EBITDA should be maintained in EFT and Duct & Filter. We can have hiccups with the exceptional prices and problem with price increases and problems from transportation. We have set what I call a new normal, and we have used last year to make efficiency by introducing new ERP systems in both Duct & Filter and in the largest part of EFT. We will do it in other areas in the Americas later in the year. We also see that better control, better efficiency in your factories. If we can fully load the Helsingborg factory, which is absolutely not the case yet, we will see good margins going forward. Okay. Thank you. That's lovely, and I'm heading for the beach. Thank you very much. Enjoy. Thank you, [Gustaf]. Thank you. Just a reminder that if you would like to ask a question, please press zero one on your telephone keypad. There will now be a further pause while any further questions are registered. We have no further questions. I will pass back for any closing comments. Okay. We thank you for taking the time listening to us, and we hope you can enjoy the great summer weather in Sweden. Personally, I'm longing for some rain because it would be good for my land to have some rain and to feed the animals. Thank you very much for today. Thank you for attending. You may now disconnect.