There we go. Here we go. Welcome to Swedencare Q2 report and the half year. My name is Håkan Lagerberg. I'm the CEO of Swedencare, and by my side I have Jenny Graflind, our CFO. We will go through the quarter and the half year in somewhat, and then we have some questions that we will answer. After that, we will have a pause for five minutes, and then we'll start our chat session for half an hour. Yes. Please wait with your questions until the end of the presentation. Okay? There we go. Q2 highlights. We had strong growth, as expected, since we have acquired a number of companies over this last year. Plus 400% in sales and our organic growth was 45%. As I wrote in my comment in the report, I was gladly surprised by the organic growth. It was stronger than I expected, but that shows the trend that we've been saying, that we have strong demand for our products and product lines, and we'll keep on growing the years to come. Improved profitability, of course, that shows the scalability of our business. As we grow our sales, we do not need to grow the cost in the same way. That will also be continuing. What we saw some highlights was really a strong recovery from the vet and pet channel. That is, of course, Q2 last year was the, let's say, worst from the pandemic that we had last year. The Q2 was really the quarter where no one really knew what was going to happen. Basically all of the physical stores and clinics closed down in important markets. There was a lot of uncertainty. Now, still with the situation we have, most markets have come back to normal. We see a strong demand in these channels. But we are still growing for the online sales. We have overall had strong growth in all of the channels. Looking at different markets and product groups, we also see the same as for the company as a whole, strong growth in every market, basically, and all of our product groups as well. Several of our group companies had revenue records this quarter. We have introduced a couple of new ProDen PlaqueOff projects, both one which I mentioned within the Nutravet in the U.K., a Nutraplaque product that has been very successful in the initial launch. We have also had a couple of new projects with our Pet MD group company that's launched a ProDen PlaqueOff co-branded product. Also when it comes to online, as I mentioned in the last report, we are really focusing on the online sales, both the big platforms as Amazon, Chewy, Zooplus, and Tmall in China, and also developing our own online presence from our own online shops. Lastly, end of the quarter, we made a really large acquisition, the largest in our history, and I will come back to that at the end of the presentation. Some of our integration and bigger projects, some of them I mentioned last time. I just want to follow up on them, and some are new. We had a really interesting project with launching the topical and dermatology products from Animal Pharmaceuticals and Stratford Animal Care from our group company, SwedencareUSA, entering the pet retail channel in the U.S. It is being launched properly in a couple of weeks at the big expo called SuperZoo in Las Vegas. We've already started sales and have had good response from the market. Lots of our customers and our big distributors have taken this line in, and it will be exciting to follow the development there. Also, the production of dermatology products for Europe in our Irish facility is getting closer. It's a complicated process, but we are getting closer. Now with the addition of Vetio, it will be even easier for us to launch and to develop products since we will get access to all of the knowledge and know-how that Vetio has in this area, and they're really the experts. We had continued our buildup our logistic and fulfillment center in Florida. Now Holden2 of the Pet MD and the other brands have moved to a new warehouse, just linked with our Animal Pharm and Stratford warehouses. We will be able to handle it more effectively and also use the resources from the different companies when needed. Animal Pharm to Amazon and Chewy and Pet MD on Amazon U.K. has just started last weeks of June. We entered with a couple of products, and the launch continues in July and August. I was hoping that would be in the beginning of Q2, but due to different reasons, primarily from these platforms, as I also mentioned, there has been a lot of demand and lots of strain on the fulfillment centers of Amazon and Chewy. It has taken a bit longer time to be able to get the products in. Now they're in, some of them, and the full lines will be in before this quarter is over, Q3. We continue to have very exciting and large-scale business opportunities discussed, and we have entered a couple of deals that will be presented later on, but we continue that, and with the Vetio acquisition as well, of course. We are taking a much bigger space in the animal health sector. We are getting noticed. As I would like to underline is the speed and the willingness to make deals from our organization. That's really what we're looking for. We're very fast-moving, and that is being appreciated all over the world. As I said, fantastic quarter from many group companies, and we just keep on building, and we're just in the beginning of the, let's say, integration of the different product lines, the opportunities that we have right now. It's really just in the beginning, and I expect us to keep on growing all over the board. We've had an interesting situation with the Brexit challenges that we've been able to solve very well due to our group setup. It's that Nutravet, for example, have had some issues exporting to the EU. Lots of paperwork and formalities. The other way around, getting product in from Ireland, from our Irish facility, has not been a real issue, but the rules will get a bit tighter exporting to U.K. going forward. We will solve that very well. We will use our Irish logistics center for the Nutravet exports to the E.U. We will have a larger part of products in Ireland for the whole of E.U. and vice versa. We will ship larger shipments from Ireland to the U.K., being held at the Nutravet warehouse. We've managed to solve that really well, but that will be an issue for many companies that don't have the same presence as we do in both the U.K. and the E.U. Continue with our online efforts, since we've had really good return on investment with different marketing campaigns, both on Amazon, Chewy, and other platforms. That really gives us more confidence to go forward because we see that we have fast payback on all of our investments. Moving over to the numbers, Jenny. Yes. The net revenue for the quarter was SEK 160 million, and that's an increase of 400% compared to the same period last year. As Håkan mentioned, we had organic growth of 45%. There was several of our subsidiaries which presented their best Q2 ever, and there was actually a few of them who actually had their best quarter ever. Our growth margin for the quarter was 59.1%, which is in line with the year-to-date growth margin as well. As mentioned before, we are increasing our marketing spend, it's because it's linked to the online platforms, which makes it increase. Half of the external cost is linked to the online platforms. During the quarter, as you know, we acquired Rx. We had about SEK 1 million in acquisition cost linked to this. If you look at the EBIT for the quarter, it was SEK 44 million. Adjusted for this acquisition cost, we had an EBIT of SEK 45 million, which is 28.1% EBIT margin. One thing that's quite interesting is that despite this increase in marketing spend, if I adjust for the non-recurring acquisition cost, the synergies that we have and the scalability of the business is continuing to decrease the external and the personnel cost in relation to sales. It's been decreasing by 9% and 11 percentage points for this quarter. Just wanted to add about the channel split. As Håkan mentioned, that the veterinarians has really been opening, and we can see even though the online is growing a lot, it's been decreasing from 50% of our total sales to about 39%, while the vet and the pet has increased. Last quarter was a little bit less than 30% in vet, and now it's about 37%. If to mention a couple of things on the first half year, again, we had net revenue for the half year of SEK 294 million, an increase about 322% compared to the first half year last year. Organic growth for the first six months of 34%. I have also added a rolling 12-month revenue of SEK 464 million, which is the reported one. A little bit later in the presentation, after we speak about the Vetio, I will explain how the pro forma will look, including Vetio. The acquisition cost for the first half year, as we had in addition to Rx, we also had Holden2, the total acquisition cost is SEK 1.9 million. Adjusted for that, we had operating EBIT of SEK 81.1 million, with an EBIT margin of 27.6%. There has been quite a lot of happenings in the cash flow. We had a cash flow of SEK 1.1 billion for this quarter. This is mainly impacted by the new share issue that we did at the end of the quarter of SEK 1.1 billion. This cash from the new share issue, together with a loan, was used to pay the Vetio acquisition right after we have closed the quarter. That's why we had SEK 1.2 million of cash at the end of the quarter, just the day after, we paid the SEK 1.5 million. A couple of other things that impacted the cash, we paid dividend of SEK 17 million in the quarter. We also paid the Rx acquisition of SEK 199 million. We have done a couple of investments during the quarter, mainly in our production facility in Texas, but also with this new logistics center that we have in Florida. I can also mention on this slide the earning per share. As you know, we have done a share split in the quarter, where each share was split into five new shares. Last but not least, we have 113 employees at the end of the quarter. Sales per region. Well, the strongest growth is, of course, in North America. This market has 62% of the total revenue versus 32% last year. This is, of course, due to the acquisitions that we have made during the last year. U.K. and Ireland is also affected by the Nutravet acquisition that we have done. That's why they were able to stay at the 21% of the total company. In addition to that, Nutravet has also delivered a record quarter, that also helped the numbers. Sales to Asia has doubled compared to Q2 last year. Rest of the world, you can see how it's mentioned in the left pie. It's impacted by, among other things, a first delivery to our pet food partner in Brazil. Sales per product. Well, the biggest difference here is the nutraceuticals, which is now growing to be the largest product group. Rx offers product in this group. That's one of the reasons. It's also due to the fact that topicals and nutraceuticals, that's where we have the new product from the new acquisitions. I also want to add that the ProDen PlaqueOff had a growth of 43% in this quarter, and it's in all formats, the bones, the bites, and the powder. This is partly impacted by the cross-selling that we have started now between our acquired businesses, where we can sell the PlaqueOff to both new customers and in new formats. It makes it quite nice that last year, if you look, we were highly dependent on the ProDen PlaqueOff with 85% of our total sales. Now we have a little bit of a better split between the product groups. Sales per brand. The biggest changes from last quarter is that Rx, of course, is growing to 12% of our total sales due to this acquisition, which we included from 1st of April. The private and the co-label part has also had a strong growth in the quarter due to large sales to the largest vet chain in Europe. Animal Pharm has also had a strong growth. This is mainly due to the fact that we had had issues in the supply chain, as Håkan has mentioned at several instances. Some of these supply chain issues were resolved specifically with Animal Pharm supplier. That's why we had good growth there. Here's our rolling four quarters, which is, again, off the chart. The blue one is the EBITDA, and we have a 29.2% margin on our rolling four quarters. Now we'll hear about the Vetio a little bit. Vetio. Yes. As I wrote, this is a very big and also the most transformative acquisition we've made since now we also enter into the drug space of animal health, where we have not been present previously. Vetio was created by two different companies, one focusing on dermatology liquid products down in Florida, and one drug development company and manufacturing company in Canada. Those two companies were merged, and by that, Vetio was created. Vetio is really the leading CDMO in animal health. Basically the only one only focusing on animal health when you have the drug competence as well. They work as a contract manufacturer, and we got to know them as a very top-notch supplier to one of our group companies. They have really been diligent in transforming these two businesses that they bought to be state-of-the-art. There have been lots of investments, the plans for going forward is really big growth ahead. We're adding a new facility in Florida to take care of soft chews and nutraceuticals. There are lots of things happening in Vetio already before we bought them. We were impressed by their plans and we will add a couple of things going forward. The sales for 2020 was $32.3 million with an EBITDA of $6.5 million, 2021 has started really well with $20 million in sales and a bit over $4 million in EBITDA. As I said, there will be lots of add-ons when the new facility in Florida is ready, that will be in Q4 this year. Next slide. Why we were interested is really that we saw that it was a really solid and impressive company that they built. We had the relationship being the best supplier we had for one group company. Really, I know I expressed some concern last report, and it's really due to the fact that we have such high demand, especially in the U.S., and we have had some strains when it comes to supply. I have been a bit nervous on how to solve that because we really have the possibility to grow really fast. You need to have products, of course, and this gives us a certainty going forward into the future, so that we would be more certain in how we can get products and also, of course, the quality of products. We know this is top-line quality. We will transfer some other product groups from different group companies into Vetio. That's a real reassurance for us to be able to grow faster than the market. What we get is really, as I said, getting drug development competence, getting into the drug sector as a contract manufacturer. That, of course, opens up different possibilities for us to how we should grow in the coming years. We get an excellent management team that has built this impressive company, both from a technical production and analytical excellence. We get in-house soft chew production facility. We have the soft chews in Vetio North with the drug capacity, and now we're building a soft chew replica of that production line for non-drug products. That is, of course, the sector where we are active as of now. We will develop a lot more soft chew products, and that's the administrative area of giving dogs active ingredients. Soft chew is the sector that grows the most in the U.S., and we haven't really been able to do the most of it as we have had some issues getting soft chew products. That's really an increase for coming into 2022 that we can add a lot of new products there. State-of-the-art product development and regulatory competence. They are approved for both selling drugs into the U.S. and the EU with Health Canada approval. They also have very good knowledge about the regulatory environment, both internally but also for exports. Of course, even though we as a group had excellent distribution network, this opens up a new ballgame for us. Lots of new players that we haven't had relationships with before, both from big animal pharma companies, but also veterinary chains and players there. I also would like to emphasize that Vetio will continue as a strict CDMO partner. All of our group companies will be customers more or less to Vetio, but they will definitely focus on going forward with all of their partners they already have and find new ones. We want to create a CDMO player that really takes the lead in animal health worldwide. As of now, it is in North America, as you know. We will look how we will handle the Vetio expansion all over the world going forward. This is how Swedencare will look like now when we have acquired Vetio. On the column to the left, you would have our reported 12 months trailing numbers from July 20 last year until June this year. The SEK 464 million, which I just mentioned, and the SEK 135 million in EBITDA. The pro forma, the next column, is basically all our acquired businesses, the period which is not included in the Swedencare for the last 12 months. The Nutravet and Animal Pharmaceuticals, you would have one quarter as you would have three quarters included in the Swedencare numbers. We have the Vetio, 12-month trailing for Vetio. With the elimination means that we will have pro forma numbers sales of SEK 990 million and with an EBITDA of SEK 241 million. An EBITDA margin of 26% is our pro forma numbers. Yes, the top priorities for 2021 and going forward is, of course, we keep on working with the integration of the acquired companies, but I would like to emphasize that we have acquired really nice and qualitative companies that are developing by themselves. We focus the integration on sales opportunities and marketing and, of course, when we see obvious opportunities like warehousing and logistics, then we do it, also, of course, when looking at production going forward. We'll keep on increase our marketing spend as we see really good Return of Investment there, as I mentioned. Continue with brand and product development. This Vetio deal, of course, opened up a whole new box filled with opportunities, and all of our group companies applauded this acquisition, and there is a long list of different product developments and new products just being entered in different product lines with the Vetio deal. We just have to prioritize which one we will focus from the beginning, but there will be lots of things happening going forward. Of course, include different products in different product lines, that will continue. That's the low-hanging fruits. With our group growing so much, we, of course, have had lots of contacts with different partners and new possibilities in basically all over the world. We are working at high speed, but it's very fulfilling to know that we are in such a high demand. We will continue working at high speed. As we mentioned in our report, we've had lots of questions about our financial targets, and what we will say is that we will review this under second half year of 2021 and come back with that. We have received a couple of questions before this meeting. We will take those now. If you have new questions, you are very welcome to add them into the live chat, which will start five minutes after we end this presentation. Let's do the questions that we have received. Vetio showed lower EBITDA compared to Swedencare's margin objective along with Holden, while Nutravet is in the higher range. How much would Vetio strengthen its overall margin by moving production of products in the overall range from third parties into Vetio? We can't say an exact number. Of course, all of our group companies when also having transactions with each other, we want to keep the same margin as they would have had with external companies. Of course, Vetio having a bit lower margin as of today, I would like to underline, Vetio has been taken on lots of cost when building this company. Also they are just in the beginning of volume production in Vetio North. There is already a number of deals where Vetio North are doing product development. Those contracts are linked with manufacturing. When manufacturing starts going up in Vetio North, and also with the expansion of Vetio South, the margins will improve for Vetio. That's that one. Yeah. Are there any operational cost efficiencies to be gained in Vetio? What would imply a stronger margin over time? Yeah, as I said, I just mentioned that they have invested in lots of, let's say, production capacity and when that gets going in full speed, then of course the margin will improve. Yes. Has Vetio entered any volume commitments or long-term deals ahead of that acquisition, and if so, in what magnitude and what timeline? Yes, absolutely. If you would like to describe the two different entities is that Vetio South is producing dermatology products and will produce nutraceuticals and soft chews without drugs included. Those are more in line with shorter-term agreements. They have some, let's say, five year agreements there with volumes linked to it. In general, I would say nutraceutical market as such or non-prescribed market as such, that's more of a shorter agreements. Looking at Vetio North, when it comes to drug development and when it comes to production, there it's not uncommon to have, let's say, between 5-10 year deals. We won't say what deals they have already, but I can say that there are agreements that will start production in 2022 and 2023, and they're working on them right now. They will grow Very good. You mentioned there are still back orders from suppliers. What is the impact of this? What do you do to mitigate the issue, and how do you expect the situation to develop in the coming quarters? Yes. One important factor was, of course, the acquisition of Vetio, as I said. We will transfer some product lines from other suppliers, and then also just securing, if we're not, let's say, moving them to Vetio, we have seen an improvement and some of these issues with back orders has, of course, had some explanations due to the pandemic. There has been some trouble in getting parts and different ingredients and such. I would say that with the help of Vetio, we will be able to basically be fully up to speed by the end of this year. That's my expectations. Great. Let's move on to another topic. Despite the solid ownership structure, Swedencare seems to have an increased interest from new investors. Why is this, and what type of investors are they? I would say the animal health market as such and pet market as such has drawn a lot more interest from investors all over the world. You've seen more listings and for some reasons, investors have realized that this is a very strong, solid market and that has had growth since end of World War II, basically. It's a new situation. For Swedencare, as long as we have grown and presented good numbers, I would say that we do have more international investors being interested, and more bigger investors, bigger investment funds and stuff like that. Also, as I mentioned, that we've been including different ETFs, and also when we enter the MSCI index, some funds have invested from that. I would say that there's strong interest, and we have many, let's say, one-on-ones with big groups from the U.S. and Asia. Yes. Let's move on to some M&A questions. Please explain the purchase process of Vetio. How did you find the target? What made you successful in the deal, and was it an exclusive process? Yeah. Vetio, as I said, was a supplier to one of our group companies, good relationship with them, and they have always delivered according to agreements and at the highest excellence of products. No problem with that. That's really what made us interested. Since they were owned by a PE firm, we knew that they would have a plan to sell it at some point. The plan was really for them to sell it in 2022-2 023, perhaps. We had some initial contacts with the management, and they were really a key factor of us being able to buy Vetio, that they wanted to keep on developing Vetio and thought that Swedencare was the optimum new owner. It was an exclusive process, and we're very happy that we were able to conclude it. Are you now content in this area after the Vetio acquisition and the other five done in the last 12 months, or do you have an appetite for more? I would say that we have an appetite for more, but have to be also cautious that Vetio was a very big acquisition for us. I would say that our target list has not diminished. We get lots of more offers and have some discussions, but you never know when or if a deal comes through. We would like to add on new and high-qualitative companies in this sector. What kind of companies are you looking for, then? Still I would say as we always did up till the Vetio deal, was basically strong brands, strong product lines, product companies. Could be strong in one market and that we see possibilities to grow the sales by entering new markets with those product lines. We're pretty broad, but I would say product companies primarily. Could be distribution companies, could be production companies if we see a good fit when it comes to region. Yes and last. If you make additional acquisitions, the financial targets for 2025 seem to be easy to reach. Will these be revised? Yes. I think we've answered that. It will be. Let's say it will be revised this year. Yeah. It will be reviewed this year. Yeah. Yeah. Let's see here. Okay. That's the end of the presentation and the questions that we have received. We will take a five minute break, and then we will answer the questions in the live chat. Please feel free to add your questions, and we'll come back in a couple of minutes. Okay. Thank you so much. Thank you. Bye-bye.