Welcome to the Nordic Waterproofing Holding audiocast for teleconference Q3 2021. Today, I'm pleased to present CEO Martin Ellis and CFO Per-Olof Schrewelius. 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. Speakers, please begin. Okay. Thank you very much. Very warm welcome to all of you. Thanks for participating. It's a pleasure to present our Q3 results. You might have seen already we have a stable return, stable profitability in spite of pretty strong headwinds from input price inflation and also job site delays, where on job sites some components are missing, like insulation material or metal parts, et cetera. That's been going on now for a few weeks or months, I would say. It is still continuing now, so it's very difficult to predict when this situation is going to end potentially. That's the general situation. Moving to page two of our presentation. Sales have increased 10% over last year, and basically all of that is from acquisitions. In the organic growth, we also have a significant component of 5%-5% of sales price increases, which we've carried through to absorb the cost inflation. Organic volume growth is actually slightly negative compared to last year. Last year was a strong quarter. EBITA increased to SEK 176 million, up 7%. Operating profit up 5%. Cash flow from operating activity was significantly lower than in last year's third quarter. We'll go into some detail on that, but the short situation there is that last year's quarter was exceptionally strong and this year's quarter is exceptionally weak because of working capital moves which are due again, linked to job site delays, where we had built inventory of finished products which customers haven't been able to receive. That is especially the case in our prefab elements business. Also a conscious build up of raw material inventory in our legacy business, where we want to avoid that any shortage of raw materials would prevent us from producing normally. We built up a safety inventory in that respect. Earnings per share, SEK 356 versus SEK 407 last year. Moving on to page three. Underlying demand remains strong. Obviously, it's important to emphasize that. This is the case for basically all of our segments. Installation services has temporarily decreased because of these job site component shortage issues, but we don't see any drop off in the underlying demand. We're quite optimistic that demand levels will remain at the relatively high level we've seen over the last two years. SealEco had sales on par with last year with the exception of Distri Pond, which is the business we acquired in Belgium a couple years ago, where you see the picture on the right. There we receive material from a U.S. supplier who has had shortage of availability. That has kept our Distri Pond business a bit low, previous figures. In prefab elements, Denmark, Norway, we had a strong increase in sales and also an improvement of our EBIT due to the profit improvement program, which we launched two years ago. In green infrastructure, Veg Tech and Urban Green in Sweden mainly, we had reduced sales, and that is mainly due to competitive pressure from low price competition. Again, the underlying growth we see as confirmed. We think we're going to take back market share there and we believe also will improve our volume in sales in the future. We've had an impact, but we remain confident we're going to successfully fight back there. The EBITA in the quarter was ahead of last year by about SEK 12 million, and the EBITA margin remains at a very solid level. Moving on to page four. We have a bit of an analysis of where our operating result improvement comes from, and it's basically coming all from the prefab element turnaround. We've had, as we mentioned, margin compression in the product and solution segment. Basically, we think we will ultimately catch up with the impact of the raw material price effect, but it takes time, and the raw material price inflation is still going on. We still see price increases in some categories of what we buy. In the installation service segment, we believe that the margin compression could remain there for a bit of a longer time. Installation services is a market where competition sometimes goes too aggressive pricing more than in our product and service business. We believe that this business obviously is pressured by the input inflation very significantly, and we believe that we might see another 6-12 months of that situation going on. As we said, negative impact on both business segments, with some of the light at the end of the tunnel and slightly different between the manufacturing part and the installation services part. We have, as you've probably noted, continued our acquisition drive. We've acquired a company in Finland during the quarter, which makes metal profiling for maybe roof applications. We're very happy about that. We continue to have a certain amount of targets which we will try to finalize in our pipeline. Page five basically recalls what I said. We expect underlying demand to remain stable at a high level. We continue to see a strong growth in prefab elements throughout our geography. Same goes for green infrastructure. With that, I pass it on to Pal le for some more details on the figures. Sorry. Thank you very much, Martin. Yes. If I then start with the net sales here, that exceeds another quarter where we exceed SEK 1 billion. Now, as you said, up 10% with an organic growth of 1%. As mentioned, we have a positive price increase on maybe 4%-5%, so the volume growth is actually negative or underlying. We also have acquisitions having contributed with 9% and a slight negative currency impact. EBITDA increased up to SEK 176 million compared to SEK 164 million a year ago, and operating profit as well improved to SEK 140 million, over SEK 133 million. EBITDA margin decreased slightly in the quarter to 17.5%, still on a good level. On a rolling twelve basis, we're at 14.4% EBITDA. Mainly, EBITDA is being kept up by good cost management. As mentioned, the profit improvement we are seeing in the prefabricated elements business. When we look into the product and solutions area, where sales is up at SEK 746 million, up 7% over last year with an organic growth of 4% and acquisitions contributing with 4%. We see development in Finland, mainly driven by acquisitions at 24%. Denmark continues with a strong development at 8%, particularly good in the prefabricated wooden elements. Sweden, the best development in the quarter organically with 20% up. Norway organically, basically flat, and other Europe where we had a -1% development. Again, looking at EBITDA in Products and Solutions, we see an increase up to SEK 155 million from SEK 145 million a year ago, and operating profit up to SEK 128 million. EBITDA margin remains stable at a good level at 20.8% here, on a rolling 12%, 17.8%. As you can see in the graph to the right, being historically for the most recent years there at a very good level. Moving on to installation and services on slide eight then, where we can see that net sales of SEK 281 million in the quarter compared to SEK 249 million last year, an increase of 13%, driven by acquisitions being 23% up, whereas organic development is - 8% compared to last year. The decrease mainly caused by delays on job sites due to component shortages, and also that we kept a disciplined approach towards not accepting lower margin business to, you know. EBITDA decreased to SEK 28 million compared to SEK 38 million a year ago, and operating profit decreased to SEK 20 million versus SEK 34 million. The EBITDA margin in the quarter went below 10% at 9.7% compared to 15.3% a year ago. On a rolling twelve basis, we're now at 6.5%. We could also say that we've seen the decrease in EBITDA, I mean, in our Finnish operations due to delays on job sites, but we also see slightly lower profit to our share in the Danish associated companies. If I look at the income statement, as we said, sales in the quarter above SEK 1 billion, but also worth noting that on the latest rolling twelve, we're above SEK 3.5 billion. Sorry, I'm on slide nine. Gross margin for the quarter, 29.8%, so just below 30%, slightly below last year. I think expenses we can just say are managed in a good way, and EBITDA remains on a good level at 17.5%. Here it is also worth noting that we have a negative development of the financial items, and that is explained by updates on earn-outs and valuations for the options to buy outstanding shares in not fully owned subsidiaries currently. Since this is based on a multiple of the EBITDA, you could in some ways say that it's positive that these companies grow very well. If I then move to slide 10 and the balance sheet where the total assets increased a bit more than SEK 200 million compared to last year, driven by the acquisitions we have done. Our ROCE continues to be on a good level at 17.1%, well above our threshold of 13%. We continue to have a strong balance sheet with a net debt to EBITDA ratio at 1.5. If I move to slide 11 and our cash flow, where we can say that compared to a very strong Q3 last year, we are at SEK 101 million in cash flow from operating activities this quarter versus SEK 250 million last year. The main difference here is the cash flow from all changes in operating capital, where we last year had very good development on all parameters. This year we can see, as Martin mentioned before, we have increased our inventories and also the delays in job sites have caused some increase in inventories. With that, I move to slide 12 and back to you, Martin. Yeah. Thank you very much, Palle. Just a very quick reminder of our financial targets, and you can see that we obviously tick all the boxes here. Now we are looking forward to your questions, please. 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. Our first question comes from the line of Max Bacco from ABG. Please go ahead. Your line is now open. Yes. Good morning, Martin and Per-Olof. A few questions from me. I think you mentioned on this in the beginning, but the situation in Finland with delays in job site execution due to component shortage, how has the situation developed as of recently? Yeah. I think there's no big change compared to what we've seen over the last six months, basically. We have some shortages. It does delay jobs, and obviously it's very difficult to predict when that's going to stop. I mean, the wild guess would be maybe another six months of this sort of situation, but very difficult to put a number there. And again, as I think you understand that the underlying demand is not coming down. And maybe you could say that compared to our vision three months ago regarding the Finnish demand picture, we are maybe even slightly more optimistic on the underlying demand. Okay, perfect. The next one, you explain in the report that you have experienced dramatic increases in input prices and that in the segment Products and Solutions, you are in the process of absorbing this through a series of sales price increases albeit with a time lag of several weeks. The question then is, when price increases catch up on cost inflation, what will the impact and margins be, would you say? Yeah. I think there will be a historically good margin level because we are historically at a really high level, which is driven by demand, basically being strong. Then there's a bit of a game, obviously, where customers right now accept the price increases relatively easily because their main concern is the availability of the material to be able to do their work on the job site. When eventually the risk of shortage of material goes away, then customers might focus again a bit more on the price level. We could see sort of a paradoxical situation where once we were able to deliver, we might have a bit of a hit to our top line again with customers becoming more price conscious. I think, as I said, we are on a historically high level. We basically see that continuing even after there's a better balance between costs, prices and sales prices. The last one, you mentioned that you have successfully turned around the prefabricated element business. Just trying to understand here, how much has that contributed to the margin, if you look at 2019 and compared to 2019? If prefabricated elements would have been on the same level as now, how much higher would the margin for the group had been? Yeah, I think, I mean, we don't go into sort of the detailed description of our profitability there, but basically, all of the improvement we've seen in EBIT versus last quarter can be attributed to the prefab elements and slightly more. I hope that gives you a good enough picture on how much we've improved there. Yeah. Absolutely. Thank you very much. Thank you very much for your question. Our next question comes from the line of Sofia Sörling from Carnegie. Please go ahead. Your line is now open. Yes. Thank you for the presentation. Let's start the organic growth for Products and Solutions was mainly driven by price increases. Would you say the price increases affected sales volumes or demand negatively during the quarter? My second question, you touched upon this earlier, but could you comment something on the net effect of these cost increases and price increases, if these will be more negative in Q4 compared to Q3? Yeah. I had a bit of a bad reception. Palle, did you get the questions and can answer them? Sorry. Just could you please take them again? Sorry. Because I also. You broke up when I listened to you. Yeah, sure. Of course. This organic growth in the product and solution division, and that was mainly driven by price increases, but would you say that has affected the demand during this quarter in sales volume negatively since it's only driven by price increases? Also, the net effect of cost increases and price increases, would that be the same in Q4 as in Q3? Would you say it's more positive in Q4? Thank you. Please. Yeah. Maybe I answer the second question first. Obviously, it's not so easy to predict. The key driver is cost inflation. If we have a cost inflation acceleration again in Q4, which we can't exclude, then obviously we will still have this margin compression because it takes some time to pass it on to customers. If price inflation stops, then obviously we might catch up most of the gap with continued sale price increases, which we've announced, for example, first of October. The first question, I'm not totally sure I got it, but let me just say that the increase in sales value has been entirely due to price increases and even a bit more. We do have a slight negative volume effect. Okay. Does that answer your question? Yes. Thank you. A next question regarding your acquisitions. You have done seven acquisitions year-to-date. Is this something that we can expect will continue as more of a normal level of number of acquisitions? I mean, since 2017, you have acquired around 14 companies, so it's quite accelerating during this fiscal year. Obviously, that's difficult to predict, but I think we can say the drive remains there. The number of acquisitions depends also on the size. If we make a significantly big acquisition, obviously, that might have a really reducing effect on the number. I think we basically continue. This year, we probably got a bit lucky in terms of the number of acquisitions, but we certainly continue our drive, and we do have a pipeline of deals that might happen in the future. Okay. Thank you. For product and solution division in Sweden was much stronger than the other Nordic countries. Could you give us any flavor on this? Why is that? Is it more because of the underlying market, or is it the difference in your offering in each market to this date? Yeah. I think it's quite clearly a gain of market share where we have been particularly successful in Sweden versus the other countries. Underlying demand is strong, so it is in the other countries. Okay. Can you also give us some outlook on this green urban environment businesses, which is Veg Tech and Urban Green, and they hold roughly all together more of a modest part of total sales at the moment. What can we expect? What is your outlook in, for example, five years, 10 years? Yeah. I think we will continue to see some organic growth there. We certainly want to take market share back again. We lost some market share because of aggressive price competition. Yeah. We obviously plan to take that back, and that's the focus right now. Once we've succeeded in doing that, we'll look again more aggressively into geographic expansion in that business. Obviously, Northern Europe is a large market and there might be opportunities there. Okay. No further questions then. Thank you. Yeah. Thank you very much. Yeah. Ladies and gentlemen, once again, I remind you, if you do wish to ask a question, please press zero one on your telephone keypad now. We currently have no further audio questions. I'll hand back to the speakers for any further questions from other sources. Yeah. I have no questions on the web either, Chair. If there are no further questions, I think we can round this off then, Martin. Yes. Okay. Well, thank you all very much for participating, and we very much look forward to seeing you in three months' time again at the latest. Thank you all very much.