Good morning, everyone, and welcome to this presentation of Scandi Standard's Quarter Two Results. I'm Otto Drakenberg. I'm the acting CEO of Scandi Standard. With me today, I have Julia Lagerqvist, our CFO. Welcome, Julia. Thank you. First, a few words about myself, as this is my first quarterly presentation for Scandi Standard. I took on this role in June because I think this is a fantastic opportunity. With my background with blue-chip, fast-moving consumer goods companies and my experience from a number of turnaround situations, I am very much looking forward to the journey that lies ahead of us. Moving on to the next slide, please. Overall, Scandi Standard delivered a growing top line in the quarter with a seven percent increase in local currency, driven by recovery in food service and in the Ready-to-Eat business. During the quarter, we have faced several challenges currently impacting our results negatively, which I will revert to in detail in this call. We firmly believe that the challenges are manageable, and we will be dealing with them with the new leadership in force in Scandi Standard. A number of the items are being addressed in the short term, but it will take some time for some of these measures to impact the P&L. More structural items will be dealt with through a comprehensive improvement program, which will be communicated by me later this year. Moving on to the next slide, please. Scandi Standard has a history of strong top-line growth and stable EBIT margins around four percent over the last couple of years. Profitability is currently deviating materially from historic earnings for the following reasons. Firstly, a negative result of SEK 35 million in the Danish Ready-to-Cook business due to a combination of imbalance between supply and demand of high-end products and low export prices. Secondly, low export prices are also impacting other parts of the business, driven by bird flu-related export restrictions and low global demand from food service. Thirdly, there is also a lag effect in passing through the historically high increases in feed prices that we are experiencing. Fourthly, and finally, we have also had some costs related to recent management changes. Next slide, please. This is an overview here of our segment contribution in the quarter. Most of our current challenges are tied to Ready-to-Cook, representing three quarter of our total net sales. Although we saw a strong rebound for the Ready-to-Eat business driven by recent food service recovery, this could not offset the disappointing performance in our Ready-to-Cook business. Other business, including our ingredients business and corporate overhead, contributed negatively. Ingredients was weak and corporate overhead was impacted by the cost for the recent CEO change. Next slide, please. Taking a closer look at our Ready-to-Cook business, we face a number of challenges, leading to moderate growth and unsatisfactory margin of three point three percent during this second quarter. EBIT amounted to SEK 65 million compared to SEK 98 million in the same quarter of last year, mainly due to the losses in Denmark, bird flu effect, and time lag effects in passing through the large raw material cost increases that I mentioned recently. We experienced issues in Sweden in the quarter, which I will come back to. Those caused a seven percent drop in sales during June. Next slide, please. Looking at sales per channel and starting with Ready-to-Cook, we can conclude that there has been a clear channel shift towards food service in the quarter. We're now back to a more normalized situation as was the case pre-COVID-19. Looking at sales development by country, we can see that there was strong growth in Norway and Finland. Sweden's growth was three percent, impacted by negative public attention in June, and we saw a decline in Denmark. Next slide, please. On this slide, you see the EBIT development for the second quarter for the Ready-to-Cook business. As you can see, the development was mainly driven by higher raw material prices being partly offset by price increases. Next slide. To summarize, our key focus for Ready-to-Cook during the quarter has been twofold. Firstly, to address the challenges in the Danish operations, where the main issues are the poor execution of the slow-growing bird strategy that was introduced some time ago. Secondly, low flexibility in bird intake. Thirdly, high plant complexity. Finally, we are experiencing cost structure challenges in our Danish business. Those are the first set of challenges. Secondly, we have also been working hard to close the deviations from standards in our Swedish operation. The current status is that the majority of the deviations have now been closed. A few remain, and we aim to have full focus on this until we have resolved them fully. Animal health and food safety are business-critical factors for us, and our goal is for deviations from the company standards, if they arise, shall be at the lowest possible level. This is a central part of our continuous improvement work. This is important to note that after having thoroughly investigated the deviations, I'm confident that consumers' health and safety in Sweden was never jeopardized due to our backup systems. Also, we can conclude that no increase in consumer complaints has been recorded during the period. We have initiated an investigation to identify and handle deviations from standards in other plants in the group, with the intention of developing an action plan to prevent and handle any deficiencies in our production and quality processes in all our markets. Even if some of these measures may have a short-term impact on results, I am confident that this will put us in a better position for profitable growth in the longer term. Next slide, please. Looking at our business in Ready-to-Eat, I'm pleased to announce that we delivered a strong performance in the quarter. The business was well-prepared and able to lever off a rebound in food service demand. This resulted in a strong top-line growth of 26% and a substantial margin improvement. It's also pleasing to note that the injury rate and level of complaints remained low in the quarter, in spite of much higher levels of activity in our Ready-to-Eat business. Next slide, please. There was a strong growth in food service. As was to be expected, we could see 25% growth versus same period last year. We could also see a strong performance in retail, which is a sign of lasting demand increase for our Ready-to-Eat product in the retail channel following COVID-19. Ready-to-Eat saw a strong performance in all the three major markets where we operate. Next slide, please. Looking at EBIT in Ready-to-Eat, it was mainly driven by higher volumes, normalized pricing, and lower fixed costs and raw material prices, resulting in a substantial improvement of our EBIT to SEK 35 million in the quarter. Next slide, please. For us at Scandi Standard, sustainability is at the core of our business. It's also a key driver why many consumers prefer our brands. We're committed to reporting key sustainability data, demonstrating our progress in core areas. This quarter, we had good performance in all areas except injuries, affected by a higher level of injuries in our plant in Ireland, and we're now addressing those vigorously. Next slide, please. Let's remember why this is such an exciting business and industry to be in. There are strong underlying drivers for chicken as a climate-smart protein, having only a tenth of the carbon footprint compared to red meat. Currently, Nordic chicken consumption is only at the 35%-40% level of the same market or consumption in the U.K. The chicken consumption in Sweden or in the Nordic countries is only half of that of the U.S. consumption, representing a sizable opportunity for Scandi Standard. I think most important to it all, it's all very tasty. With that, I hand over to Julia. Thank you, Otto Drakenberg. If we move on to page 15, coming back to the overall group P&L. As Otto Drakenberg shared previously, we have had positive top-line development, but for a number of reasons, we did not see the same development in the EBITDA. On top, we've had increasing depreciation due to the high investment in recent years. We have also had increased finance costs this quarter, driven mainly by revaluation of share in pension funds. The quarterly tax rate was 20%, all this leading us to a net income of SEK 41 million versus SEK 73 last year, and a low earnings per share of only SEK 0.61 versus SEK 1.19 last year. Going to page 16 and looking at our two main return measurements, we see declining returns versus last year, driven then mainly by the poor results in the first half of 2021, but also the high non-comparable costs in the last half of 2020. In total, SEK 59 million, mainly related to the adjustment of the earn-out debt attributable to the acquisition of Manor Farm. Still worth noticing that when looking at the adjusted return, we were in line or better than the same period last year. The equity ratio is improving to 29% versus 28% last year. Coming to page 17 and looking at our working capital. Working capital is at a similar low level as in the last quarter. We have a positive contribution from a COVID-19 state related state aid allowing for postponed tax payments. I am very pleased to see that reduced inventory also in this quarter. At the same time, receivables are up, mainly driven by increased sales. Looking at the working capital at sales ratio, we have a long-term target level adjusted for financing to be around 6%. Adjusting for COVID-19 state aid and our financing elements, we are currently above this and we are working continuously with it. Coming to page 18 and the cash flow. The operating cash flow is obviously affected by the reduced EBITDA. Working capital is, as we saw, stable compared to the previous quarter, while capital expenditure is slightly up versus the lower than average as of last year. All this leading us to an operating cash flow far below quarter two last year. Taxes were also higher, versus last year, and we have in the quarter two this year paid dividends of SEK 81 million. In total, the NIBD is increasing forward in the period, but it is in line with the rolling last 12 months. Finally for me, I will comment a bit on our cash flow guidance. The CapEx for 2021 is still estimated to be around SEK 400 million versus the SEK 355 million that was spent last year. It is a combination of efficiency, capacity and ESG investment on top of the ongoing maintenance. Given the current poor results, we are doing a thorough review of the investment process at the moment. The paid interest is estimated to still be around three, three and a half percent, and the tax rate is to be around 20%. We also still have our continued liability in the shape of the Manor Farm acquisition. It consists of the [audio distortion], and the final transfer is due in 2021. Looking at our dividends, we did pay, as previously said, a dividend of 1.25 SEK per share now in quarter two. The board will come back to the question of a second dividend that was announced in the report for the first quarter. Just as a reminder, the dividend policy for us is to be around 60% of the net earnings over time. With that, I would like to hand back to Otto. Thank you, Julia. To conclude, quarter two was impacted by headwind and operational challenges. In the short term, we are focused on operational improvement in Denmark, and we're closing outstanding deviations in Sweden in our production. We have initiated a group-wide investigation to identify and handle any deviations from standards in other plants. Even if some of those measures may have a short-term impact on results, I'm confident that this will put us in a better position for profitable growth in the longer term. With respect to the third quarter, we have unfortunately experienced plant downtime in two areas, an increasing number of cases of COVID-19 in the production site in Ireland, which have a significant impact on production, and the heat wave in Sweden during July, causing disruptions in production and delivery. In parallel, we're working on developing a group-wide improvement program that I will come back to during the second half of 2021. With the strong competence inherent in our organization coupled with clear leadership, I'm confident that we'll tackle the current challenges and the improvement program that is now taking shape will enable us to capitalize on the dynamic opportunities in our markets and create shareholder value in line with our potential over time. With that, I will open up for question and answers. We have a question from Daniel Schmidt of Danske Bank. Daniel, the line is yours. Yes. Good morning, Otto and Julia. I hope you can hear me. Yes. We hear you. Yeah. A couple of questions from me then. Starting with what you mentioned in terms of phasing of feed prices. You saw some compensation in the quarter, but not fully. Would you expect full compensation when it comes to higher raw material cost in the coming quarters or coming quarter or will it take longer? Hi, this is Julia. We still expect there to be a certain lag going forward as the prices keep on moving. Over time, as you alluded to. Yeah Our principle is always that input price increases shall over time be passed on to customers and consumers. Is it your opinion that this is an extraordinary situation that sort of, the catch-up is taking longer than in a normal case? Yes, that's my observation. Although I'm new to the industry, I think we're experiencing, and that's what my people are telling me also, that the raw material and especially feed prices, the increases are exceptionally high. Yes, this is an extraordinary situation that we're dealing with. We will deal with it the right way, and I think also it's a matter of us rising up to the challenge and be as good and strong as possible in our interaction with our customers. Is it in any way sort of an extreme situation also for you, in particular, given the production irregularities and the media scandal during the spring? Is that making it harder for you to compensate for raw material and feed prices in the Swedish market? The deviations from production standards that were discovered and published in Q2 are to a majority dealt with, and we have closed the most of them. We could see in consumer demand a drop of seven percent of sales in June, and already in July, we could see that the consumer demand was bouncing back. That is not a material explanation for any changes after Q2. The customer relationships have been virtually untarnished because we've been in very close contact with all our major Swedish customers throughout this process. Okay. There was some discussions during that phase where municipalities were out saying that they were stopping imports from Kronfågel. Is that no longer an issue? That is no longer a significant issue, no. Just on your response when it came to the Swedish consumer, and it seems like the scandal is fading, as you say, but how can you make sure that that's the case? You also have this production problem that you mentioned in Q3. Is it very obvious for you that the drop of, I think it was 12% in July, is related to that and not to the consumer response on the back of the production irregularities during the spring? Two answers to your questions there. First of all, as I said, consumer demand bounced back in July after the public attention. We also, during that period, we had backup systems in our production facilities so that consumer health was never in jeopardy. We also had no increase in consumer complaints throughout the whole period. That's one item of reassurance. The events that you're referring to that we publish in our report here for quarter two, supply issues caused by the heat wave. The heat wave that came all over Europe that was very much dominating the situation for our plant outside Katrineholm is a completely isolated event and had nothing to do with production deviations or consumer sentiment. Completely isolated event. All right. Did that affect your competitors as well in the Swedish market when it comes to supply? I have not heard of those kind of supply issues caused by the heat wave that I think we all experienced this summer in some way. I haven't heard of the same size of issues for our competitors, but I guess that's rather a question for them. Okay. Would you say that your supply chain is more fragile? No, I wouldn't say that. I just say that we had an extraordinary situation. We have production in several European countries. In no other region where we are operating and producing, we experienced the extreme heat that we did in our Swedish plant. During the 30 years, I talked to people who've been involved in the operations there for the last 30 years, they have never experienced anything like it. Now, we all know that with climate change, the unlikely and the extreme is becoming less extreme. We are doing now a full review of all our plants to make sure that we have the right resilience and the right contingency plans for this and other extreme effects that could happen in our production. That's something that's taking place during the fall to make sure that we, to the meaningful extent, can handle extreme events for our production going forward. All right. You mentioned July, and now clearly the weather has normalized now during August. Does that mean that your production and supply chain is back to normal in Sweden? It's absolutely been normalizing since the heat wave. I guess everybody who deals with production have challenges here and there, and now we have since some time dealt with the heat wave in July, and things are getting back to normal. Okay. On that topic, you also mentioned Ireland when it came to COVID. Where are we in that situation? Well, the situation exists as of today. The greater outburst of COVID cases came in August, and it's burdening our production and disturbing our production at this very moment. I guess we have all learned the last one and a half years that it's difficult to predict COVID, the spread of it, et cetera. We are in close cooperation with the authorities. We have taken extraordinary measures so that we can still have the plant running at highest possible capacity. It is absolutely a disturbance, and to the best of our knowledge and assessment, is going to continue to be a disturbance for us throughout the quarter. Okay. Can you in any way quantify the impact when it comes to Ireland? Well, we don't do numerical projections and forecasts, or at least we don't share them. That's not something that I think would be the right thing to do here. I will just refer back to what I said initially, that it's absolutely something that is disturbing our operations today, and we expect it to be continually so throughout the quarter. Okay. There's a lot of things that you need to look into, of course, and it's been a hectic period. On the matter of declaring an action plan for the group, and you will be back during the second half of this year, could you say anything about the Ready-to-Cook business in Denmark and if that's a possible divestment in the coming 12 months? I will give you a few answers on our Ready-to-Cook business in Denmark. Let me first say that we are poised to turn the Danish business around, and that's our only focus within Scandi Standard. The Danish business in Ready-to-Cook is struggling with profitability, as we all know, due to poor execution of the slow-growing bird strategy, low flexibility in bird intake, and also we have a high plant complexity. We're currently taking a number of measures to deal with these issues to restore profitability in the short term. The long-term plan for Ready-to-Cook in Denmark is an important part of the improvement program that you just alluded to in your question. Yeah. Okay. It's undecided yet, I guess. You said SEK 35 million in operating loss in Q2. What is the last 12 months loss in that business? The last 12 months leading up to June 2021, is that? Yeah, exactly. the loss you have? Yeah. Sorry, it is me. I will look into numbers, but obviously for the first half year, which has been extreme for us, the loss has been SEK 85 million. Obviously, a large room for improvement there. The first half of your question was 85. Yes. Yeah. Do you have any number on the full year 2020? Maybe that's easier. We haven't shared those numbers specifically. It was a negative number, is that fair to say? Yes, that is fair to say. A meaningful negative number. All right. We haven't, what I've seen at least, seen any more bird flu cases in Denmark or Sweden during July and August. Correct me if I'm wrong. Does that give you any hope that the worst is behind us when it comes to that particular issue? We did see one case in Denmark in the early July. We do expect to have a similar effect also now into Q3, but then gradually improving. What's the lead time? If we don't see any more cases since early July, what's the lead time for the export market to normalize? It's hard to say because it's not only this one impacting the export market, of course. Normally, we say that there's also a difference between different markets, but three to six months, I would say. Okay. I'll leave the floor open to others. Thank you. Thank you. As a reminder, if you'd like to register a question, that's star one on your telephone keypad. We have no further questions. Oh, we've just received a follow-up from Daniel Schmidt of Danske Bank. Daniel, please go ahead. Okay. If there's no others, I can continue then. You're welcome. Thank you. What's your opinion also coming into this company when you look at the CapEx need? I think you guided for SEK 400 million also this year, i.e., close to four percent or above four percent of sales. Is that a necessary level to be at medium term, you think? Let me comment on what we have stated. For 2021, you're very correct. We expect to spend around SEK 400 million in CapEx for the group in a combination of maintenance, efficiency, capacity, and ESG investments. I expect that we will keep to that level throughout 2021, despite the extra investments that we're now doing to handle production deviations. Looking ahead, I think that's very much a question for our group-wide program. We are looking over not only how we can become a much better player in terms of P&L, but also on the return side of things, where I see potential. Exactly what type of potential and the ranges, I would like to come back to. I think it's fair to say that we have significant opportunities on both profit and loss and the balance sheet in this company. Yeah. Coming back to Denmark, which is a significant soft spot in the business and has been so for some time, although this will be part of your communication at a later stage, could you answer if there's any way, if you look at Ready-to-Cook Denmark, is that production intertwined in any way with the rest of the company, or is it freestanding? The Ready-to-Cook business is freestanding and focused on the Danish market. Our Ready-to-Eat business and plant in Denmark supplies several countries. The answer is yes, Ready-to-Cook plant in Denmark is aimed for the Danish market. There is a small part of the sales going into Sweden, but the majority is local. That means that it has its own production setup, simply? Yes. Throughout Scandi Standard, the plants predominantly produce for the home market. Has there been any thoughts historically, maybe you can't answer that, but Julia, to divest this business before COVID-19? No, there has not been. Like Otto said, the main focus has been to try to turn around the business. Of course, we never close any doors or leave any options. For the moment, and of course, for the last years, the focus has been to turn around the business. Is there any sort of door-opening effects of keeping this business running? Would there be any other implications of just closing the business than what I can think about here now? At the moment, we're still sticking to the plan and focusing on turning the business around. That's taking up all the time that we spend on Denmark is to improve Denmark. I am confident that we'll be able to make significant inroads and improvements with the Danish business. Some of it shorter term, some of it structurally longer term. It's a challenging market, Denmark. I think with the right people, not only investments, but the right people and right strategies in place, I'm convinced we can improve significantly. All right. When you say short-term effects, is it fair to assume that the SEK 50 million and the SEK 35 million in losses that you had in Q1 and Q2, is that really, hopefully, the trough in the impact for the group, even though it will be tough also in the second half of this year? Are we leaving the worst behind in terms of losses? I will not comment on whether the trough has been passed or not. I speak with confidence where I say that the approach we have to the root causes of the Danish situation, this slow-growing bird strategy that wasn't executed in the right way, the low flexibility in the bird intake from farmers, and also the high plant complexity, we're working hard on all those areas. Without commenting or comparing with the previous quarters, I'm convinced we'll see gradual improvements. All right. Okay, good. I think that's all for me. We have no other questions on the phone lines. I'll hand back. Thank you. Thank you all for attending this quarterly call. Until we talk next time, I wish you a great day. Thank you.