Thank you so much, welcome, everyone, to this brief presentation regarding the year-end report of 2020 for Semcon. With me is also the company CFO, Björn Strömberg. We go to the next page, please. Just a few highlights for 2020. I'm very happy to announce that we have had a fantastic year with regard to showing great resilience and adaptability in challenging times. As you know, we've had a challenge with regard to the pandemic from a health perspective, but also when it comes to our business perspective, we've had a challenging time at the beginning of the year with restructurings in the second quarter. We have managed this very well, and that's thanks to all the dedicated colleagues in the group handling this very well. We've also performed on operating margin, where we achieved our target of 8% over the course of the year, and a fantastic finish in the fourth quarter. We had good cash flow through the year, and we have achieved an even stronger financial position now compared to what we had before, and we are now ready for the next step. Going to the next page, please, and I'm handing over to our CFO, Björn Strömberg. Please go ahead. Yes. Comment on the figures, the strong end to the year. The revenue amounted to SEK 400 million in the quarter, SEK 1.6 billion for the whole year. The growth was impacted by COVID-19 and our restructuring measures. As Markus mentioned, in the second quarter, we decreased the exposure towards the automotive industry. That was mainly in Sweden. The operating profit, SEK 49 million in the quarter, SEK 130 million for the whole year, that we reach a historically high EBIT margin in the fourth quarter of 12% and 8% for the whole year. As Markus mentioned also, we had a good cashflow from current activities, SEK 248 million for the whole year. We ended up with net cash of SEK 199 million at the end of the year. Right. Thank you, Björn. As you can see, we've had quite a journey going from a weaker financial position a few years ago, and now a very strong financial position and strong balance sheet. Also the last point here on this page regarding the dividend, as you know, and we've communicated previously as well, that we have received government grants during 2020, which means that we do have restrictions initially to pay out dividend, and we cannot do that before the end of May. Therefore, the Board of Directors has decided to raise that question again after the end of May to have a discussion regarding possible dividend to be paid out after that date. Next page, please. If we look into the business areas in the group, we have first Engineering & Digital Services, which is the largest business area, where we provide services within strategic design and innovation, advanced engineering, production optimization, and digital services. With regard to these main areas, we also provide advisory services and project and quality management. As you know, the trends are with us. Even though we've had a work that have been done with regard to industry diversification, we have now moved into new areas and new industries and this change in the balance between the industries has served us very well, and we are now in a good position to move forward. Going to the next page, please. If we look into the business area results for the fourth quarter, we see that we have a very strong finish to the year and finishing with an operating margin there of 12.2% in the fourth quarter. Even though we took a larger hit in this business area due to the pandemic and managed to accelerate the industry diversification, this is serving us well now going forward. We've performed successful cost savings during the year, and we now have a better resilience than we've ever had before in this business area as well. The number of employees are impacted in the business area also due to the divestment that we made last year of India and the restructurings that we made in Q2. For the information, That impact was about 170 employees, and India was a number of employees of 192. The share of group revenue for this business area is 65%. As you can see now in the graph showing the industry diversification that we have now, we have automotive, which is 35%, and we're very proud of that heritage within automotive and moving into new segments there. Also we have about a third within manufacturing, then you see a large increase in life science, where we've now built what we call a powerhouse within life science in this business area as well, which is very important for us. A strong end to the year in Engineering & Digital Services. Going into Product Information, which is the other business area in the group where we provide services within digitalization of tools, user information. We create service information, parts and accessories information, and training solutions, and also, with regard to these areas, strategic support and operational excellence support as well to our customers. If we look into the figures here, and going to the next page, please. If we look into the figures of Product Information, the business area, we do see that we have a very strong year, and the trends are really with us here. A large increase in interest from our customer base when it comes to focus on aftermarket solutions. All our customers basically are looking into strengthening their position to increase the value that they provide in their turn to their customers, and to raise the revenues and also their profit margins in the aftermarket solutions. We see a good demand for digital aftermarket solutions, and we now have, which is also a part why we were able to have such good resilience in this business area, is that we have about 75% of the revenue from long-term contracts. The investments with regard to the aftermarket services and solutions is still high up on the agenda for our customers, also going forward a bit accelerated by the pandemic, I would say. We have a significant operating margin improvement in 2020, which is now at 15.4%, and that's an operating margin increase by six percentage points. The industry distribution that we have in this business area, we have 25% within the automotive segment, where there are, of course, large parts of aftermarket services being provided, also within manufacturing industry and the telecom sector. A small part within life science as well. Here we do provide the greatest value to those customers which create and develop complex products and systems, and that's why we are in the industries which you see here. Going to the next page, please. If we look at Semcon in the rearview mirror, just to have a bit of a see the journey that we've been on for a few years now, and which is really paying off, and that we can see also now in the figures and the strategic direction. Going to the next page, please. We do have a better-balanced industry mix. As I mentioned before, we are very proud of our offerings towards the mobility sector and the automotive sector, which is, in 2015, was 67% and is now down to 35% in the industry mix. The manufacturing industry has moved from 20% to 32%, and as you can see, life science, we've made a bit of a jump from 5% to 11%, if we look at the comparison between 2015 to 2020. Energy has increased a bit, and we've also added telecom, which is 9% of the total share. With this movement, and this is really the strength within Semcon, I would argue, that we are able to move between these industries and use our expertise to provide knowledge and specialty services from one industry to the other, and really helping and supporting these customers take those jumps and making those transformations that we see in all these industries now when it comes to the digital agenda and the advanced engineering agenda that they have within R&D and so forth. With this, we have an improved resilience. The automotive sector, we have shifted a focus, going back between 2015 to 2020, we've shifted the focus to go more towards electrification, autonomous solutions, and digital services. As you know, the automotive industry, which is now more and more called the mobility sector, is going through a huge transformation in this regard. These numbers that we've shown here include the German operations divested in 2017. Going to the next page, please. I will hand over to Björn Strömberg again to give you a bit more information regarding the financial position in the group. Yeah, we have also improved the financial position. We have had a good cash flow during the period, a good cash flow development. In 2020, as I mentioned before, SEK 250 million, that was helped of a decrease in tied-up working capital of about around SEK 100 million. We ended up with a net cash of SEK 200 million coming from a net debt position of SEK 80 million in 2015. We have a strong financial position right now. All right. Thank you. Going to the next page, please. Also you can see the journey that we've made since 2015 and up until now. We've had a large focus on improving the profitability during this time. We've actually now more than doubled the operating margin going from 3.5% in 2015 to 8% in 2020. By that, we have also achieved all the financial targets set by the Board of Directors. Going to the next page, please. By concluding that we have reached all the financial targets for the group, it's time for the next step. Looking back at where we were, we set the strategy. We made a divestment of our German operations to strengthen our balance sheet and be better positioned to make investments going forward and strengthen our profitability. We've worked with financing and capital structure, and in focus yesterday was basically the strong and making sure that we achieved a strong financial position. In 2020, we made a restructuring of Engineering & Digital Services to accelerate our transition when it comes to industry diversification. We have had an extensive digital agenda in both business areas, and which has also been very important as a focus from all our customers to help them with that transformation. We have also during this time made investments and acquisitions, and the one that we made in the beginning of the year of the company Xtractor in Stockholm, made us one of the largest providers of e-learnings and digital training solutions in the Swedish market, and we are now really in a good position to grow that further. As you can see during the pandemic, the interest for these kind of solutions have accelerated during the pandemic, also working remotely and making sure that all the staff in all our customer companies can be trained even though they're not on site. That was a good acquisition and very strategic for us. We've been managing COVID-19 in a very well manner that I commented on early on in the call. I am amazed of the efficiency and the productivity that we have kept up in the group. I must say that I'm very impressed by all the colleagues here at Semcon, how they have handled the COVID-19 situation to make sure that we can continue to deliver to our customers and ensure that we keep a customer closeness and customer centricity, even though it has been a difficult time from a health perspective during these times. We concluded, as I said before, to make sure that we've reached all the financial targets. During 2020 was also, of course, to strengthen the profitability. Going forward and entering into the next chapter of the Semcon journey, looking for tomorrow, every part of the Semcon group is now focusing to increase the organic growth. We are looking even more intensely into strategic acquisitions. With our strong financial position, we see a good opportunity to grow in that perspective as well. Of course, the continued digitalization will be an important factor for our growth going forward, and therefore we will continue to strengthen those offerings and those capabilities in the group. We have therefore, as of today, announced that the board of directors has decided on new financial targets due to the fact that we have reached the ones that were previously set for us. In focus forward, growth and continued profitability. Next page, please. The updated financial objectives that we have now for the group is that we aim to reach a total revenue growth of at least 10%, and we also will do everything we can to reach an operating margin which is EBITDA of at least 10%. We're using now going out from EBIT to EBITDA due to the fact that we are focusing a lot more on the acquisition side to accelerate our growth there, and therefore we are using that measurement as well. If we look at the comparison between EBITDA and EBIT today, it's almost the same. There's no big difference in that as of now. It's a very small adjustment that you need to make. We also have new policies with regard to the dividend. We intend to pay dividend of approximately 50% of the profit after tax over time. We also intend to continue to have a strong financial position. We do have added the policy of gearing of net debt/EBITDA ratio that should not exceed approximately 1.5 x. Those are the new financial objectives, and we've also added the dividend policy, and the net debt policy that I've just mentioned. Going to the next page, please. How are we going to grow? Well, we do see the trends are with us, and you can see that in the markets, of course, both looking at our peers, but also looking at and listening to what our customers are saying as they are moving into their next chapters and moving towards their new strategies. We will help them to continue to drive digital transformation. We know that we will have a greater impact with long-term partnerships, therefore, we do intend to increase the long-term partnerships with our customers going forward. As I mentioned, for example, within our business area, Product Information, those long-term partnerships are 75% of the total revenue in that business area, and we intend to make a journey also with the Engineering & Digital Services in that regard. We need to, of course, make sure that we have an inspiring workplace to attract the right talent. We do that today, and I'm very proud of what we are achieving, although we're working remotely due to the pandemic situation. This is a very important part for us to inspire the right talent. I know that the right talent wants to be in the winning team, and I believe that Semcon is that place where they would like to be. We also see that when we look at the number of applications that we're getting and while we're looking at the strategic growth that we need to achieve. We also see the increased demand for sustainable innovations. I'm happy to be in a company where we are part of the solutions when it comes to sustainability, not part of the problem. We do have a lot of customers struggling with challenges to meet sustainability targets. What we can achieve together with them with regard to product development, production optimization, and aftermarket solutions, which have a clear sustainable effect, is very inspiring both for our customers and for the colleagues in the Semcon Group. We will also continue to support transformation in several industries. We are very curious about going into other industries where we haven't been before, but also continuing to have a good industry distribution going forward too, as I've mentioned before, make our resilience even stronger and also enhance our profitability. The financial stability and strategic acquisition focus is, of course, a growth driver. We need to perform good financial numbers to be able to grow and to have that financial stability to grow from. Now we also have net cash, so we are able to make strategic acquisitions to boost that strategic growth going forward. Next page, please. Our sweet spot, as you know, the ones that have followed us for quite some time, is a combination of digital and physical solutions. We come from the physical solutions in our heritage and history, and we've successfully added the digital edge to our offering. We're combining the physical and digital, and this is our sweet spot. By uniting physical and digital solutions, we create user experiences that make a difference to people and our planet. We are now in a very good position to grow. Next page, please. If we look at the financial calendar for 2021 and 2022, you see the next thing that's going to happen is the interim report, January to March 2021, and that will take place on April 29th at 8:00 A.M. We will have the annual general meeting also the same day on April 29th. Going to the next page, please. By that, I am finished, and I hand over to you. Please go ahead, operator. Thank you. If you do wish to ask a question, please press zero one on your telephone keypad. If you wish to withdraw your question, you may do so by pressing zero two to cancel. You can ask multiple questions, but please ask them one at a time. There will now be a brief pause while questions are being registered. The first question comes from Stefan Gudsen from[Inaudible] Please go ahead. Your line is open. Hello, Markus and Björn. Congratulations on the report. My first question is regarding the new financial targets that you set. Nice to see some ambition here. Can you elaborate a bit more about how do you view organic growth versus M&A contribution when it comes to growth? When it comes to growth, obviously we have a lower starting point now due to the restructurings that we made and those activities that were carried out during 2020. We do see a good possibility. Of course, we want to grow faster than the market. The obvious question is how fast is the market growing? There are different numbers that we can see regarding that growth, and it also depends on which market we look into. We do see that, as we mentioned, we have a 10% growth target, and obviously we will do everything to reach that, and it will be a combination of organic growth and acquisitions. I cannot elaborate any more on the details. We will just simply do as good as we can in this regard to grow organically, and then we will boost that growth with acquisitions. Okay, perfect. If we look at the EBITDA margin target of 10%, if we put that into perspective that you did some restructuring this year in Q2, you were already above 10% for 2020. How should investors view that target going forward? Was there something special in 2020 that affected the margin here? Yeah. Let me hand the question over to Björn Strömberg because it's correct. Do you want to repeat the question? I'm just elaborating on the margin target here that you were already above if we adjust for the restructuring costs in Q2. I think you posted 10.3% for 2020. Just how you view the overall target going forward, if you had some special situation here in 2020 that should correct itself in the coming years? Yeah. Excluding the restructuring costs that we had in Q2 and for last year, obviously we do see that we will accelerate also the operating margin and the EBITDA. Those one-time restructuring costs, we do see that it will be an improvement going forward as well. Now we have a combination of the government grants during 2020, and we also have the restructuring costs. Even though they even out a bit, we do see that we have good possibilities to reach those targets, and we will do our best to do so. Okay, perfect. Thank you. Thank you. Next we have a question from Oktay Hager. Please go ahead. Your line is open. Yes, thank you for taking my question. First of all, congratulations to you guys and to the entire organization for a very strong financial in 2020 at least, considering everything that's probably been going on. Just a bit of granularity on the sector side. Under the industry segment under EDS, or I think it's labeled manufacturing now, it was doing pretty well up until and including Q1 of 2020. Can you talk a bit about how you see top line development in that segment specifically? Also under Product Information, the other segment is doing really well. Could you also comment on what you're seeing in terms of trends there, please? If I start with the first question regarding the manufacturing industry in Engineering & Digital Services, we do see a strong trend at many of our customers where they want to create more automation within, and put in place more automation in their production facilities, and also digitalize the production environment. We do see a good demand for robotics in those factories as well, collaborating robots and so forth. We do see a good demand here, and obviously, as we've stated in the report, there is a bit of uncertainty still with regard to the pandemic. Otherwise, we do see that the willingness to invest is increasing in this segment. We do see a good possibility to grow this segment going forward. Just to clarify, we want to see growth in all these different industries that we are in, all the different verticals. It's just that we do see, in the sake of making sure that we have a good resilience and a good diversification with regard to the industry perspective, we want to grow certain industries faster than others to be less dependent on one industry or just a few customers. Which if we go back 10 years, we were very dependent on a few customers, which is not the case today. I hope that that is the answer to your question with regard to EDS. Yeah. Yeah. The second question, I didn't hear the end of your question there. Can you please repeat that? It was just that under Product Information in the other segment, which has been growing fantastically over the last five quarters, what's kind of driving that? It's a good question. What we see in the Product Information area is a lot of revenue coming in from Xtractor, which we acquired early in 2020, right before the pandemic, actually. The kind of customer revenue that we see in that segment is customers like authorities and municipalities and so forth. It's some state-owned companies and so forth. It's a good transformation also coming back to the resilience part, where we do maybe see some less cyclicality in that vertical. It's mainly the Xtractor revenue coming into that other segment. One final question from me, please. Touching on the same as the previous caller. In terms of your balance sheet, it looks really strong now. Day-to-day limitation of 1.5 x gearing. How should we look at that? Does that mean that you, over time, want to stay pretty close to that number? Is that where it starts to look painful or whatever? How should we think about where you want to stay over time? Yeah. In terms of having the right kind of balance sheet? I can provide some guidance regarding that. We want to keep a good financial position. We think that's very important to enable the growth going forward. We don't want to go back to the very weak balance sheet and the situation that we had going back 10 years ago, for example. We want to have a good financial and a stable situation. On the other hand, we also want to boost our business with strategic acquisitions and have the possibility to do that. If we do see that we find really good opportunities to acquire companies which we see are strategically right for us, then we will go ahead and make those acquisitions. If that means that we sometimes, for a period, need to go above that guidance policy that we have with regard to the gearing, then so be it. We want to come back to that level very shortly thereafter to make sure that we stay around that target. As you know, it's not up to us to make the acquisitions only. It's also someone we need to agree on the terms and the price for the target companies, which means that we cannot guarantee that we can make the M&A activities at the pace that we want to. If we do, we want to provide a guidance to the market that we still want to make sure that we have a healthy and a stable financial position going forward. Understand. Thank you. Just from my math, if you have a SEK 200 million net cash position now and given your limitation of 1.5x EBITDA, there's almost half a billion in firepower in the balance sheet. I guess unless you have some really clear candidates right now, there might even be opportunities for an extraordinary dividend. That's up to the board, of course, but it looks like you have a lot of firepower right now, so it'll be interesting to see how you spend that. That's all for me. Yeah. Thank you very much. Yeah, thank you. Just to comment on that, it's of course better to be in this position than the other way around. We have a good position, and that's the right analysis. Thank you. The next question is from Jette Zegowski, private investor. Please go ahead. Your line is open. Thank you. Hello. Congrats to the report. Could you maybe put a bit flavor on both short term and longer term, your growth target if you look at the two divisions? Yeah. We don't provide any forward-looking statements except for the ones that we have in the report. In general, I can say that we do see a good demand for our services, both in Product Information and in Engineering & Digital Services. As I mentioned previously, due to the restructurings, we are starting from a lower base within Engineering & Digital Services, but that base is very good and a fundamental base now going forward. Within Product Information, you can see that we haven't, even though we've had some complications during the year due to the pandemic, we still have managed to defend our revenues in that business area and strengthening the profitability. As I write in my comment in the report today, it's very clear that we have an increased interest from our current customer base and potential customers in the Product Information area to accelerate their investments with regard to the aftermarket solutions that we provide. I think that we are in a good position. Also due to the fact that we are one of the largest providers of those kind of services globally, we also have a good possibility to take additional market share, and we are also, of course, looking into potential strategic additional acquisitions in that area as well. That's what I can say regarding that growth going forward. Thank you. Maybe also a question, looking at your working capital with the change which has happened on the distribution of the sectors, should one expect that you would have less working capital going ahead, or will we go back to same level as we've seen historically? I don't think we would have less working capital, but if we have growth and the more we tie up more working capital. I don't think we will have less, but we want to go back to the higher level that we had before. I think you're right there, Peter. With regard to the industry distribution where we see now the revenue is coming from, obviously compared to historic numbers, we will tie less working capital compared to before, but the growth in itself will tie a bit of capital. Yeah. Okay, thank you. That was what I would like to hear. Thank you. As there are no further questions, I will hand back for any closing comments. Okay, we have also received a couple of questions online. I'll repeat the first question. It's regarding the new financial targets. You have an EBIT in 2020 of SEK 130 million. What was the EBITDA in 2020? Does depreciation of right-of-use assets, are they included or excluded in this measure? Depreciation of right-of-use assets is included. To the EBIT, you should add SEK 3 million in amortization of intangible assets. The EBITDA is SEK 133 million in 2020. Next question from the online version is what does the SEK 11.3 million investment in associated companies refer to? That's a company, GST-move, where we own one third together with Husqvarna and Ericsson, and it's a Norwegian company towards autonomous industry, mainly airports. The next question is were there any non-recurring savings from less travel, et cetera, due to the COVID pandemic? Of course, there is less travel compared to what we've had previously, but I think that all companies experience this. Our intention and our targets for the group is now what we have learned from the pandemic, that we can do a lot more digitally, both from an environmental perspective, but also from an efficiency perspective. We do not have the aim to come back to the travel cost levels that we've had previously, but rather ensure that we can keep that on an efficient level and keep it on a low level. We do the travels going forward. When we do see that the vaccinations are having effect, then the travels necessary will be made. I do see that we will have a reduction over time with regard to this cost. Okay. Next question. Is the margin in Product Information in Q4, would you say it's sustainable going forward? I would say that we do have some effects from the very special year that we had in 2020. Going forward, we want to accelerate growth in this business area as well, so we will take more investments into business development activities and sales. I see an excellent opportunity here to grow this business area further. I don't want to squeeze the margin there to make sure that it becomes even more profitable if that means that we can't accelerate the growth. I do see that we could have a bit of a lower margin going forward, but that's nothing alarming. If we look at the transition that we've made margin-wise in that business area over the past few years, it's been a fantastic journey. Now I would rather like the business area to focus on keeping high margins, even though they might not have to be as high as we see in 2020, but also see the organic growth and also boosted by strategic acquisitions. That is the priority for that business area. Okay, thank you. The next question also refers to the tie-up of net working capital. After the tie-up, do you expect an increase of net working capital in 2021 after the large release in 2020? I think we already answered that. Okay. We have one more question. If we have a margin target for the EDS segment? For the EDS segment, the targets that we have communicated today are of course relevant for the whole group. We want to be in areas in every part of the group, in every market where we're in, we should be able to reach these financial targets also on divisional level and department level. Those are highly relevant for Engineering & Digital Service going forward. We do not have lower targets for EDS. Okay. The next question refers to the decrease in revenue in the EDS segment. How much would you say is due to restructuring, and how much is linked to the continuing operations? Do you expect a recovery in 2021? It's a bit of a complicated question to answer because there are so many different parameters in the financial reports for Engineering & Digital Services from last year. We both have the restructuring of 170 employees that we made in the second quarter. We also have the divestment of our India operations that were made a bit later in the year. We also have some government grants affecting the financial results. Basically, we do see that we have an impact, obviously, and you can see the trend that we have on the revenue side for the business area, that we are starting from a lower level. As I said, we are not taking any more government grants since the end of November last year, which means that we now intend to have a good operation going forward. As I mentioned before, in every part of our group, including the Engineering & Digital Services business area, growth is on the agenda, and that's what we intend to achieve. Okay, by that, we don't have any further questions online. Operator, if you don't have any further questions either, I think we are ready to conclude the call for today. Thank you for participating. Thank you for attending. You may now disconnect your lines.
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