Good day and welcome to the Nordic Paper Q2 2022 report conference call. Today's conference is being recorded. At this time, I would like to turn the conference over to Henrik Essén. Please go ahead, sir. Thank you very much, and good morning. On behalf of Nordic Paper, I wish you all warm welcome to this presentation of the second quarter results for this year. Today, we have Anita Sjölander, CEO of Nordic Paper, and Niclas Eriksson, CFO, on the call as well to present the second quarter results. With that, I leave the word over to Anita. Thank you, Henrik. First of all, I want to say that I'm really proud to present this report, a proof of very strong delivery with several new quarterly records. This good result is delivered in the light of the turmoil in the world right now, with Russian war in Ukraine, high energy prices, general inflation, and lack of components complemented with supply chain challenges. The good result is based on the stability that is the foundation of Nordic Paper. The underlying structural growing demand for our specialty papers for the food sector and industry, combined with our large numbers of loyal customers, creates a stable demand situation. What we experienced during the exceptional situation during the pandemic was that our sales volumes were stable. We could shift our product offerings from professional to retail, from the professional sector, restaurants, coffee house, flight industry, to retail that grew in demand as we were baking at home instead. If we were to see changed customer prioritizations due to higher cost of living as an effect of inflation, we have the built-in flexibility in our production capacity and customer offerings to handle variations in demand. During the pandemic, we also saw that despite lower availability of transport capacity, we were able to deliver our paper and serve our customers. We have a strong balance sheet and financial situation with low leverage, which makes us resistant in turbulent times. What we have also shown is that we have the pricing power to respond to inflation in our cost base. Based on this, we can present another quarterly report on record levels, where the strong market continues for our specialty paper used for sacks, bags, food packaging, and industrial applications, and many times replacing material based on fossil alternatives. Good sales volumes and extensive work to implement product price increases has awarded us a new net sales record, an improvement by 45% compared to the same quarter in the last year, and also an improvement from quarter one this year. The product price increases mitigate the cost inflation we experienced in energy and other raw materials in this quarter, with a result in a new all-time high quarterly EBITDA. We now have two quarters with net sales over SEK 1 billion, and the new record level in quarter two is SEK 1,144 million, which compared to the same period last year, is an improvement by 45% and also 9% higher than the previous quarter. In this quarter, our new asset in Québec is contributing with net sales of SEK 80 million. EBITDA is SEK 247 million, which is SEK 87 million higher than the adjusted EBITDA that we reported in the second quarter last year, and 4% higher than the previous quarter. We report an EBITDA margin of 21.6% for the quarter, which is higher than last year, but 1% lower than quarter one. The increased product prices in both our segments are mitigating the inflation in variable and fixed costs in absolute numbers, but with the improved net sales, the EBITDA margin is slightly down compared to previous quarter. You can see the long-term pattern and development of net sales and EBITDA margin in the graph on the right side. For rolling 12 months, our EBITDA margin is on the level of 16.8%, and our commitment to reach the target of 20% EBITDA margin over the medium term continues. To give you a more detailed view on the development of EBITDA from quarter one to quarter two, we'll this time share an EBITDA bridge on a quarterly basis. From the previous quarter's EBITDA, SEK 237 million, to this quarter's EBITDA, SEK 247 million, we have both quite large positive and negative effects within the quarter. Here you can see the positive effect from price increases, SEK 95 million, and the negative impact from variable costs, SEK 68 million, and fixed costs, SEK 17 million. This is to show the great work we have done when implementing product price increases to mitigate cost inflation, and this is also strong proof of our pricing power. The strong market demand and additional sales volume from Québec gives an improvement by 5% compared to last year for the quarterly sales volume. It's also an improvement from last quarter's record level, so now we have a new quarterly record for sales volumes. Now to support our customers with specialty paper, we have also sold from the stock during this quarter. As always, we only produce according to firm orders and are not taking any risk of building unsellable stock. Stability and growth in volumes are supported by the fact that a large share of our market exposure is to the more stable food sector. Last year, we had an exposure of 58% of our net sales in this sector, and we have actively through the years reduced our exposure in more volatile business, such as the building and construction industry for our kraft paper. We will go into the first of our segments, the kraft paper segment. From this segment, we are supplying our customers with unbleached kraft paper from our two production sites, and all the paper is based on our own unbleached pulp. Our customers are converters producing unbleached paper bags, sacks, and packaging for food and other industrial end uses. On a warm summer day, you might send our absorbent paper a thankful thought, as it is a part of climate control in some air condition equipment in industry and retail applications. For all our paper, kraft paper grades, we are experiencing a strong demand in the market. In addition to the underlying growth in the market, we now also have the effect from the EU sanctions on import of Russian kraft paper, which has reduced available volumes in Europe by 10%. We reported historically high product price levels last quarter, and from this we have implemented further price increases. Compared to the second quarter last year, the product price increase is at a level of 30%. The fantastic development of net sale continues, and in the second quarter we reached a new record of SEK 624 million. With limited impact from cost inflation in this segment, we continue to deliver very good EBITDA margin, this quarter on 35.8%. Our rolling 12-month EBITDA margin is therefore on the high level of 30.4%. If we then move into our next segment, Natural Greaseproof, where we have the Natural Greaseproof papers, in close contact with food, used by both professionals in bakeries, restaurants, and coffee shops, and for takeaways, and also by us self-made chefs and bakers at home. There are also other applications where the properties of this paper is suitable, such as the tube winding paper that is used for construction of yarn bobbins for the automotive industry. This paper is produced in our new asset in Québec, so it is a new product in Nordic Paper offer, and a paper that we are now exploring new possibilities for in other markets. For these Natural Greaseproof papers, we see a continued strong demand as a result from the underlying long-term growing demand, combined with the effect of reopening of restaurants and back to traveling. Our acquisition of Glassine Canada, that now legally is Nordic Paper Québec, is adding to net sales in this quarter by SEK 80 million and improves EBITDA margin in this segment. The combined effect of higher sales volumes and higher product prices gives the good development in net sales. We are now with a net sales of SEK 539 million, about SEK 500,000 for a quarter. Price increases have been implemented to mitigate cost inflation. As we on average have longer contract lengths in this segment, with a minimum of three months, it takes time to capture faster increases in the cost base, such as the pulp price that changes on a monthly basis and the rapid increases in energy price that we have seen last year. The pulp cost has continued at a high level with further price increases in this quarter. The cost of energy has continued at a high level in the quarter, also with the Russian actions and impact from the EU sanctions on Russia. As you can see in the graph, it is a very strong and positive development of net sales. In absolute numbers, we have improved the EBITDA from SEK 32 million quarter two last year to SEK 37 million this quarter. The EBITDA margin that moved upwards quarter four and quarter one is slightly down 0.5% this quarter with a result of 6.8%. We still have work to do to improve the EBITDA margin through further price increases. With that, I would like to hand over to Niklas for some more financial presentations. Thank you, Anita. We start with the net sales bridge, and there I would like to point out that Nordic Paper Québec, the new acquisition, is disclosed separately in the bridge. The increase in net sales is 45% compared to Q2 last year. Volume and mix gives a slight positive effect, mainly related to kraft paper. The price increase is broad-based and comes from both kraft paper and Natural Greaseproof. In kraft, we see an increase of 30% or approximately SEK 140 million, and in Natural Greaseproof, 20%, approximately SEK 70 million. Our invoicing currencies, euro, US dollars, and British pounds, have all been stronger this quarter compared to last year, giving a positive effect to net sales. Nordic Paper is included in our profit and loss statement from January 1, and contributes with net sales of SEK 80 million in this quarter. In the EBITDA bridge, we include Nordic Paper Québec in both volume and product mix, as well as the variable and fixed costs. The increase in EBITDA is SEK 87 million compared to the adjusted EBITDA for Q2 last year. Volume and product mix is SEK 80 million, of which Québec is the main part. Price gives the positive effect of SEK 208 million that we recognize from the net sales increase. Variable costs are significantly higher compared to last year. The main effect we see is the cost for pulp, where the closing of Säffle pulp mill in December 2021 means that we have replaced wood with pulp. The yearly pulp production in Säffle was approximately 20,000 tons. External pulp is also the largest variable cost in Quebec. The price for domestic pulp has increased. The market price for NBSK, northern bleached softwood kraft, is 16% higher compared to Q1 last year. We also see significant increases in energy and freight costs. Cost for production in Quebec, the new entity, is included in the variable cost as well. The main reason for the increase of fixed cost is cost in Quebec. Currency gives, on EBITDA level, a smaller positive effect. The positive effect we saw in net sales is partly set off by variable costs in US dollar and euro, and negative effect from currency derivatives. Other effects are mainly related to other income this quarter. The net sales bridge for the first half year, there we see an increase in net sales of 41% compared to the same period last year. Volume and mix gives no effect on total level, but we have sold more paper and less pulp compared to 2021. The main effect is from price increases, again, in both kraft paper and Natural Greaseproof. In kraft, we see an increase of approximately SEK 250 million, and in Natural Greaseproof, approximately SEK 130 million. Also for the full half year, we have stronger invoicing currencies, giving a positive effect in net sales. Nordic Paper Québec contributes in net sales with SEK 153 million. In the EBITDA bridge, again, Nordic Paper Québec is included in volume and product mix, variable costs, and fixed costs. The increase in EBITDA is SEK 189 million compared to the adjusted EBITDA for last year. As some of you remember, we took a provision of SEK 76 million in the second quarter last year related to the pulp line in Säffle. Volume and product mix is SEK 142 million, including the effect from Québec. Price gives the positive effect of SEK 380 million that we recognize from the net sales increase. Variable costs are significantly higher compared to last year. Year- to- date, we see the largest increases for pulp, energy, and freight, and cost for Québec production is included in the variable costs, but the value of the sales is in volume and product mix, of course. Nordic Paper Québec is also the main reason for the increase of fixed costs year- to- date. The positive currency effect we saw in net sales for the half year we see is set off by variable costs again and negative effect on currency derivatives for the first six months. The net effect is SEK 12 million. Other effects are mainly related to change in stock of finished goods. CapEx in Q2 was SEK 32 million, which is slightly higher compared to the same quarter last year, including costs related to the restructuring of Säffle plant and for the pre-projects connected to the expansion program for Bäckhammar. CapEx in relation to net sales is 5.6% on a rolling 12 months basis, and 2.88% for the quarter. Cash flow from operating activities was SEK 118 million in the quarter. The large increase in net sales gives increased working capital, mainly related to accounts receivables. Stock of finished goods is, in tons, lower compared to the end of Q1, but increased prices for raw material gives a slight increase of the total value for finished goods, raw materials, and supplies altogether. Working capital in relation to net sales on rolling 12 basis has decreased slightly to 12.0% in this quarter. The net debt increased slightly in Q2 compared to Q1, when the dividend of SEK 134 million was paid out, to our shareholders. The increased EBITDA, including the addition of Nordic Paper Québec, have changed the net debt relation from 3.7 at the end of 2021 to 2.2, and we are very satisfied to already this quarter reach a leverage below the financial goal of 2.5. With that, I give the word back to Anita. Yeah. We're coming back to the restructuring of Säffle that we mentioned a few times this call. Here we see the positive development with the reduction of our climate impact. We closed the pulp production and based the production totally on external bale pulp, and this has brought a great environmental benefit. We reduced the fossil carbon dioxide emissions Scope 1 and 2 by more than 70% in this site compared to the average of the full year 2021 through lower need of fossil fuel. As the final part, we would like to share our view and give the outlook for the next quarter. We repeat our expectations about the strong market and are optimistic about the coming quarter as we expect continued strong market conditions. We will implement further product price increases to compensate for cost inflation. We also see higher wood prices as a result of higher fuel prices and lower availability of wood due to the elimination of Russian volumes into Europe. As a reminder, in the third quarter, we are performing our annual planned maintenance in all our production units. We will have direct costs at an estimated level of SEK 95 million, which is in the same magnitude as last year. The maintenance is performed during closing of the production, so the production volumes will be lower. To respond to our customers' needs throughout the year, the delivery of specialty paper continues also during the planned stop in this quarter. With that, we would like to thank you for listening, and we are happy to answer your questions. Operator, do we have any questions? Thank you. Let me just cue for the questions. Ladies and gentlemen, if you would like to ask a question, please press star one on your telephone keypad. Please ensure that the mute function on your telephone is switched off to allow your signal to reach our equipment. A voice prompt on your phone line will indicate when your line is open. Please state your name and company before posing your question. Thank you, and that is star one to ask a question. We will be taking our first question. Yes. Hi, it's Harri Taittonen, Nordea. Good morning. On the outlook, I think you said that sort of price increases expected to compensate cost inflation, but should we read that you aim to fully compensate the cost inflation? Or, you know, how do you see the profile between the kind of the price momentum versus cost momentum in Q3 versus Q2? That would be my first question. Yeah. Good morning, Harri. Thank you. Yeah, good question. Hi. What we see is a continuing strong market and demand in both segments, and we don't see any signals of any lower demand. We estimated that our prices will continue Q2 to Q3 in almost the same level as we did Q1 to Q2. We believe that the total effect, we will have a higher amount in kraft paper than in greaseproof, where we, as you can see, did really large price increases during this quarter too. Yes. Do you care if I keep? Yeah. Sorry. Please. No. I was just sort of if one compares to that to the what we see about the cost inflation, that would it be similar sort of. I mean, you managed to increase EBITDA or sort of managed to beat the cost inflation fully or just a bit more than fully in Q2, but would that be the kind of how we should read the Q3 as well? Or is it sort of a partial offset or full offset that you aim to kind of offset the cost in by pricing. Of course, it's also we set our prices mainly on quarterly on three-month basis or sometimes longer contract length. That's as fast as we can move. Sometimes some of our variable costs, like the pulp costs, for example, where we have announcements on a monthly basis, we can make, of course, estimates on the movement for the full quarter, but it's impossible to fully understand the- Yeah. Yeah Yeah How it will. It has continued when we have seen further price announcements also lately. That is, of course, difficult for us to make the full understanding of the magnitude, and we also have the energy prices that moves much faster than that, as we all know. We are putting a lot of effort into our product price increases. Of course, our ambition is to raise it more than the cost basis moving for us. We try to keep up the pace, but it is a little bit difficult to estimate the variations we have. It was quite large ups and downs within the quarter. To give a good answer, it's a little bit difficult, I would say, but we are working to continue to improve, increase our product prices. Okay. No, that's clear. That's a good clarification to that. Just wanted to clarify that. Thank you. On the, I think one of your peers already also, like, reported this morning, and there's been talk about the sort of the sack, the building market softening, and that of course, part of the sack paper goes to that then, so I don't know. Are you seeing any indication on that? On the other hand, of course, there's a big cut in supply from Russia on that front. So how would you characterize that sort of more industrial segment or exposure? How does that look for your portfolio? As you mentioned, Harri, we're seeing some Russian supplier leaving this market with their volumes, fairly large amount of volume. Yeah. that has disappeared. We have not seen any signals to us. We have also for quite a long time reduced our volumes into the cement in bags for cement industry, for example, so that we should not be exposed so much to this cyclicality in this business. We haven't seen any lower demand, no signals. We don't anticipate that we will be affected by the changes. Okay. Right. I suppose the currency and the doll- I mean, exporting to the dollar-denominated markets, that becomes quite competitive or you are getting increasingly competitive with the currency, of course. Now, which maybe leads to the third question, if it's okay. On the, I think, the FX derivatives, was it so that the number was something like SEK 50 million in the first quarter, and was it SEK 11 million in the second quarter? I suppose this sort of negative. At the current exchange rates, we should probably factor in negative currency hedging or derivative outcome for the third quarter as well, which is of course then offset by the benefit in the underlying business. Is that the right way of reading? Yeah. Niclas here. Hello, Harri. That's correct. Hi. Hi. We have derivatives contracted in 2021, when the currencies were weaker compared to the Swedish krona. They will continue to give effect until they all are due. That's correct. Yeah. You stick to kind of the hedging regime quite in a strict way, or are you kind of modifying the level of hedging with the current dollar being quite strong? Or is it to deviate from the sort of the hedging position largely or not? Yeah. We stick to the policy where we hedge between 50%-75% for the first six months and 25%-50% of the net exposure for the months seven to 12. That's what we are aiming at. What we see is that we have a lower exposure in US dollar now since we also buy the pulp and some transport costs in US dollar. So the main currency that we are exposed to for the moment is the euro. Yeah. Good point. Okay. Thank you very much. Thank you. Thank you. As a reminder, ladies and gentlemen, to ask a question, please press star one. It seems we have no further questions at this time, so I'm handing the call back over for any additional closing remarks. Thank you. Oh, one moment. We have one question, please. One moment. Yeah. Hi, it's Harri. If there's no rush, maybe there's time to just ask a bit on the greaseproof market and how sensitive do you see that to be? Like, if the general concern now is the purchasing power of individuals towards the end of the year and next year with the cost inflation and all that, I mean, is there some color that you could give or what you're thinking on the resilience in the natural greaseproof in this scenario where consumer purchasing power may be an issue or challenge? Yes, we have been as you know increasing our product prices quite substantially. Our customers are coming along with these price increases. Of course, there must be a limit somewhere. We have not been reaching that level yet. We don't know where this is. So far. Yeah. It is been working good for us. When it comes to changes in consumer spending potentially going forward, we can just point at what we learned and experienced during the pandemics, which was a decline in demand for certain parts of the greaseproof business, the professional link to traveling and eating out. Instead, it popped up in the consumer at home part of the market. We seem to consume food regardless of external conditions. That is true. Yes. Okay. No, that's helpful. Many thanks. Thank you. We have no further questions at this time. Okay. We thank you very much for this call this morning. We wish you all a very nice summer, and we look forward to seeing you again at our Q3 presentation, which is in the end of October, 28th of October. Looking forward to talking to you then. Yeah. Thank you and goodbye.