Good day. Thank you for standing by. Welcome to the Sweco second quarter report. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question-and-answer session. If you'd like to ask your question, please press star one on your telephone. Please be advised today's meeting is being recorded. If you require further assistance, please press star zero. I would now like to hand the meeting over to your host today, President and CEO, Åsa Bergman. Please go ahead. Good afternoon, everyone. As said, this is Åsa Bergman, CEO and President of Sweco. Today, we're going to look into Sweco's Q2 presentation. With me today, I have Olof Stålnacke, our CFO. With that, really welcome. Before we move into the quarter, let me give you a short recap of Sweco. We are today Europe's leading engineering and architecture consultancy with eight geographical business areas in Europe, and we do business in more than 70 countries worldwide. We employ 17,500 experts, which means that we can deliver a unique set of competencies to serve our clients. With that, let us move over to our performance in the second quarter. We continue to deliver an overall stable performance, even though we are still seeing some effects from COVID-19. We grow our net sales with 3% and delivered organic growth of about 1%, mainly driven by higher average fees. EBITDA is SEK 529 million with a margin of 9.4%. I am pleased that we delivered margin improvements in five out of eight business areas. Adjusted for calendar, EBITDA decreased with 9% compared to last year, and this is mainly related to continued weak performance in Germany and the U.K. and a slow quarter in parts of the Finnish business. We continue to win the right type of projects. One example from the second quarter is that Sweco has been chosen by the Danish Energy Agency to establish the world's first energy island, as you can see on the picture here on the right. This project will become Denmark's largest offshore wind farm. Finally, we continue to have a strong financial position, giving us flexibility and allowing us to act on opportunities on the market. We continue to make strategic acquisitions. We have announced three acquisitions during this quarter that I will get back to later in this presentation. Let us now move over to the market situation. The overall market situation and demand for Sweco services is rather unchanged compared to the previous quarters, with the remaining effects of COVID-19. The demand in parts of the Industry segment and the Private building and Real estate segments remains weaker, while demand is relatively good in Infrastructure, Water, Environment, and Energy. However, with the signs that the market is improving, we continue to have a stable inflow of new orders, and our order book remains strong. Another good example of a project won in the second quarter is a 10-year contract to work on an extension of the North Bothnia Line in Northern Sweden. The demand for our services is largely related to sustainability, digitalization, and urbanization, and our well-diverse business continues to be a strength for us and provides stability. Now let us take a closer look at the results in the second quarter. We deliver a slightly positive organic growth of approximately 1%, adjusted for calendar effects in the quarter, with a positive development in Belgium and Denmark. This is mainly driven by higher average fees. The development in U.K. and the Netherlands was weaker in the quarter, U.K. still being affected by challenging markets, while growth in the Netherlands was weaker due to fewer full-time employees. Belgium continued to deliver a very strong performance with double-digit organic growth in the quarter. Our ambition going forward is to focus on recruitment while maintaining stable operating margins. Let us now move over to the results in the quarter. Five out of eight business areas improved their margins in the quarter. Sweco Sweden continued to deliver strong margins of 13.5%, and Belgium sustained their positive business momentum with strong margins of 12.5%. Norway showed significant margin improvements, while Denmark and the Netherlands continued to show gradual improvements. EBITDA decreased by 9%, adjusted for calendar, and this is mainly related to the continued weak development in the U.K. and Germany, and that Finland had a slower quarter in two divisions, along with higher costs related to acquisitions and integrations. I have mentioned the development in Germany in our previous presentation, and I want to emphasize that the new leadership is focused on a turnaround of the German business, and this includes implementing efficient ways of working with focus on the right type of projects and underpinned by strict project governance and project control. This is a turnaround, as said, that will take time. Let us now have a look at the acquisitions made in the quarter. I'm pleased that we continue to execute on our acquisition agenda. In Q2, we closed the acquisition of two Finnish companies, Gaia Consulting, Finland's leading sustainability consultancy, and the architecture consultancy, Linja Arkkitehdit. I talked about these two in our Q1 presentation, so let me now give you some more background to our latest acquisition, Boydens Engineering in Belgium. Boydens Engineering was founded in 1961 and have 140 employees specialized in sustainable building. They are also especially known for designing net-zero emission buildings. Together with Boydens, we create a market-leading building design and engineering business with a clear sustainability profile on the Belgian market. With that said, I will hand over to Olof to walk you through the numbers. Thank you, Åsa, and good afternoon, everyone. Net sales in the quarter, SEK 5.6. Adjusted for calendar, we see an organic growth of 1%, increasing slightly from Q1. A significant positive calendar effect in the quarter from eight more hours, and we can also see the positive impact from M&A is slightly higher than the negative FX effects in this quarter. Looking at the EBITDA development, we have an EBITDA of SEK 529 million and an LTM EBITDA just above SEK 2 billion. EBITDA is up versus Q2 last year, but adjusted for the calendar effect, we are SEK 47 million or 9% down. The positive calendar effect from eight more hours is SEK 81 million in the quarter. Looking at EBITDA by business area, Sweden slightly down in EBITDA, but continues to show a high margin. Belgium continues to perform strongly with a margin of 12.5%. Norway comes back after a weaker Q1, whereas Denmark and Netherlands continue the positive momentum from the last quarter. Looking then at the declines, Finland has a temporarily weaker performance, primarily in two divisions facing slightly weaker markets. With a number of acquisitions, there has also been integration focus and integration costs in the quarter. Finland still delivers 9.2% margin, but that's not where we've been used to see them over the last few years with very strong performance. The U.K. looks similar to what we've seen in the last few quarters, and Germany and Central Europe is below last year and shows a small loss. New management in Germany, as Åsa mentioned, has initiated the turnaround program for the troubled parts of the business. Finally, then, the financial position, which remains strong. Net debt is at SEK 1.9 billion, which is SEK 700 million higher than Q2 last year, still significantly below the historical levels. We see trade working capital increases from very low levels in Q2 last year, and a significant increase also in the dividend payout. Last year, the dividend payout was split in two, we had one payment in the second half. Leverage is at 1x, which is half our target maximum. We have available liquid assets of two point. The leverage there is due to the termination of the COVID-19 short-term credit line that we took in Q2 last year. We remain well-positioned to manage through the current situation and also to capture the opportunities that may come out of it. With that, back to you, Åsa. Thank you, Olof. Let us now conclude the second quarter. Q2 was yet another stable quarter. We continue to deliver a slight, and we improved our margins in five out of eight business areas. Q2 was still affected by COVID-19, but we see signs of market improvements. We had a stable inflow of orders in the quarter, and our order book remains strong. Another interesting project from the second quarter is one you see on the slide with the design of an industrial-scale green hydrogen plant in Finland. This is a good example of how Sweco is well-positioned for industrial projects with a clear sustainability profile. We also continue to execute on our acquisition strategy with three new acquisitions in the quarter. With our strong financial position, we are ready to act on opportunities. Let us conclude with some last few words about our focus going forward. Our focus going forward is, as always, on profitable growth. We see signs of the market situation improving and restrictions being eased, there are great business opportunities for Sweco. The pandemic has accelerated digitalization and placed sustainability on top of the agenda, resulting in new investments with our core areas of expertise. We also have a strong position on ramping up our recruitment to be able to meet the clients' demands that we expect. By keeping our focus on implementing our way of working, the Sweco model, and staying close to our clients, I see that we are well-positioned for future profitable growth. With that, let us conclude Q2 and open up for questions. Thank you very much. Ladies and gentlemen, as a reminder, if you'd like to ask your questions on the phone, please press star and one and wait for your name to be announced. We have a couple of requests here. A question from the line of Erik Paulsson of Nordea. Please go ahead. Yes. Hi there. I have three questions. I start with the first one relating to Germany and Central Europe. You were talking there about project adjustments, and I guess this is write-downs in project as we saw in Q4. What is this relating to, and do you see there's a risk of further project write-downs? The project adjustments, or you're correct to assume that is write-down. The net effect in the quarter was around SEK 7 million, which is within the range I would call normal in a business area in a quarter. We see no risk for any major write-downs. This is more of normal fluctuations. Okay. My second question is relating to Finland, and you're talking about their two Finnish divisions. Which ones were this, and do you think this will continue in the second half of the year relating to Finland, those divisions? First, I would like to start by saying that we are used to having very strong performance from Finland. I would say that this decline is, as Olof said before, temporary and is due to market circumstances in Finland. It's related to the divisions of structure and expert services, and also related to some high costs related then to integration and acquisitions. I expect a gradual improvement in those two divisions. Okay, thank you. Finally on the order book. I was wondering if the order book developed positively or negatively sequentially compared to Q1 in Q2 now. It developed positively sequentially versus Q1. Okay, great. Thank you very much. Thank you. Thank you. Your next question is from the line of Peter Testa of ONE Investments. Please go ahead. Hi. Thank you very much. You mentioned the benefit of better fee levels this quarter. I was wondering if you could give some sort of context as to how they compared to employee costs. Were they similar or one ahead of the other or any context, please? No, we have seen an increase in salary compared to last year, which was very low, but the fee increase is in total at a higher level. Okay, fine. Just a question on reorganization costs. Were there any particular reorganization costs in this quarter? Maybe if you could give some context to how, if there were, how they compared to the quarter a year ago. There were no reorganization costs of any significance. Last year, we had SEK 40 million in Sweden in Q2. Right. Okay, fine. Just one question on hiring. You talk about being ready to ramp up recruitment. You've also talked about the billing ratio being a bit lower. I was wondering if you could give some sort of context as to how you're treating recruitment in light of that comment on billing ratio and maybe whether there's key business units where you're more proactive than others. I would say that what happened last spring was that we didn't stop the recruitment, but we started to recruit on a really low level, and we have been really focused on certain areas during the pandemic when we have recruited. Now, of course, when we're ramping up, we are looking into those segments that is growing more than others. The work to be done going forward is to really look at all segments when it comes to recruitment. If I should point you in any direction, I would say that if you look at the European Green Deal and what is in there when it comes to energy transformation and sustainable infrastructure, everything that is related to what is kind of boosted in that plan, there you have the areas where we will need resources going forward. Okay. Then related to the billing ratio, that is a very important KPI for us. We continue to focus on the billing ratio. The combination of our order backlog is being stable and orders received on good level and what we expect of the market going forward, recruitment is a priority for us. Okay. For example, in a key market like Sweden, where you've had relatively stable employee levels through the period, have been really plus minus a couple percent, would you expect that employee level in total to start increasing? Is it some areas like EU Green Deal are increasing, but you're still managing with natural attrition on other areas of lower billing ratio, so net would be similar? We work with all aspects at the same time, but when we talk about focusing on recruitment in this context, we are talking about making sure that we are coming back to FTE growth. Right. Okay, perfect. Thank you very much. Thank you. Your next question is from the line of Dan Johansson of SEB. Please ask your question. Thank you so much. Good afternoon, Åsa and Olof. Good afternoon. Hello. Just one follow-up question from my side, it's the U.K. and the slow development there. Could you elaborate a bit what's driving that? Also, has the situation improved now since lockdowns were eased during the latter part of the quarter, or is it still ahead of you, or how do you view the U.K. market currently? First of all, I would say that the market is still challenging. That, as we reported, is the only market where we still have employees on temporary layoff or so-called furlough. That scheme continues until end September, which says something about the market conditions in the U.K. In the long-term perspective, and if we look beyond the current uncertainties connected to COVID-19 and Brexit, we are positive about the market. We are waiting for a number of interesting projects to start. We have full focus to ensure that we get back to profit levels and get back to growth. It's too early to say when that will happen. Even if we see some signs, I'm not there until I'm there, so to say. Great. Thank you so much. Maybe one more question, if I may. What do you see in terms of vacation days now during this year compared to last year when, I guess, people didn't take much vacation? Is that something you monitor, and do you see it as a risk now for the third quarter or anything in particular in regards to that? It's definitely something we monitor. It's a bit of a special situation and has been now for 18 months. What we see year to date is it may be slightly less vacation taken than last year, but not any sort of big changes. We're watching it closely, but there is no sort of imbalances right now as we see it. Okay. Thank you so much. That was all for me. Thank you. Thank you. Next question is from the line of Johan Dahl of Danske Bank. Please go ahead. Yeah, Johan Dahl of Danske Bank. Just on the project adjustments you talked about in Germany, is any of those adjustments related to the same projects which you wrote down last year? Also, can you relate these project adjustments to the governance issues that you had last year? It's a sum of a number of projects, and some of them were included in the write-downs that we did in Q4 because some of these are large, long ongoing projects, and you will have adjustments over time. I think the adjustments reflect the fact that we now are very strict when it comes to project accounting and project governance. In that sense, there is still more to do, as we also talk about with Germany, in terms of overall project governance. In terms of project accounting and revenue recognition, this reflects the very strict approach we have now. You talk about a bit of a cost creep, a bit of a cost normalization in the group. What actually is that? It seems as if the travel has been very limited and digital processes implemented. What does it represent? Is it education? Can you elaborate a bit on that? Would be great. I think it should be compared to what we did in Q2 last year when we really stopped everything in terms of travel, in terms of internal training, et cetera, in terms of internal development projects. We are now at a more, even if we are still low, we are at a level with slightly higher activity in these areas. I would say, to give you a number, we had SEK 80 million of savings last year, and about SEK 25 million-SEK 30 million of that has come back in this year. All right. Do you envision that you have a pent-up demand for that type of activities, i.e., we would get a short-term more material headwind from this? I think the first quarter that we see a more normalized situation, we may have a boost in pent-up travel and meeting IRL, et cetera. There might be a quarter effect there. I think at the same time, as we said before, I think parts of these savings are obviously here to stay. Thanks. Thank you. Once again, if you'd like to ask a question, please press star and one on your telephone. We also have a question from Johan Sundén of Carnegie. Please go ahead. Thank you. Thanks for taking my question. I also have a bit of a question on the margin side, related to the comment you had, Åsa, regarding focus on recruitment with solid margins during the rest of this year. When I look at things, you talk about operational expenses coming up a bit as some short-term cost savings swinging back. Once you recruit, you should likely have a bit of pressure on the billing ratio as well. Basically, the factor can hold up margin is prices, or you're very optimistic on price development during the second half so that you can offset those effects. Should we expect a margin pressure? I would say that as the market looks right now, and what we have shown so far is that we are really focused on how we price ourselves on the market. This is for us about making the right choices on the market, select and deselect projects, and make sure that we execute them in a very good way so we can minimize the write-downs we have. We have full focus on this, and we will continue. You could expect competition on the market when it comes to resource and talent, of course. We will have full focus on this going forward. We have shown before that we are capable of holding up the prices and develop them in a positive way, recruit at the same time. I would say that if you are steering this right, actually the growth will potentially improve the margins. No, I can't foresee that, and we are focusing on activities that will mitigate that risk. Good. Also another question regarding the general construction market in Sweden. We have during this week seen reports of Cementa's facility in Gotland supplying two-thirds of the concrete to the Swedish market. Do you see any risk that if that situation doesn't get solved, that there could be delays in project starts and so on? How is discussions developing in the market? It's a big question. My boring answer to that is that it's too early to tell. We are, as you, reading the newspaper and, of course, talking to our clients in the market that using lots of concrete. It's too early to tell as it's in the middle of the process. What we're doing is that we follow and monitoring the situation. The best way we can act is that we're staying close to our clients that potentially can get affected and ensuring that we understand their needs going forward. Of course, it's a serious situation. There's lots of solutions, and the final decision is not taken yet, so step by step. If you just resonate regarding the topic, how late can the final decision come until it doesn't impact project starts during the second half? I guess you can't shift your mindset in just five minutes of time and so on. So there must be some lead times that people should be worried at some point. We are working with thousands and thousands of projects on the Swedish market, and there's lots of different materials when we design, and of course, the consequences related to the concrete, if that would hit with one decision that will be affected the day after, the consequences will be big. There is lots of dimension when it comes to the overall society here. I think we need to wait for the last word to be said here. I cannot draw any conclusion at this stage. We are, as everyone else, monitoring the situation to understand what this is developing. Perfect. That was all from me. Thank you. Thank you. Once again, it is star and one if you'd like to ask a question. It appears we have no further telephone questions. Excuse me, we have a follow-up question from Peter Testa from ONE Investments. Please go ahead. Yes. It was just a question on cash flow, please. Obviously, you've had very different years, one year to the next on working capital, I was just trying to understand whether you could give some sense as to how you thought the H1 working capital fit versus a normal period and the extent to which you thought that would largely unwind in H2, or would that increase if you are able to grow? No, I think you should really look at the last 12 months because at the end of Q2 last year, we were at the very low position compared to historical levels. Now we are back to where we were June 2019. Last year we had both the impact from very strong focus on cash flow and cash flow protection from our side, but also effects from government measures in terms of delayed tax payments, pension payments, et cetera, and some customers paying earlier. I think this means more being back to a normal position. We will always be working with working capital to get it down. It's more last year being low than this year being high, I would say. Okay. No, if you look at the slide on the part of the report of the last 12 months, it's still a - 8% or 9% in working capital, which I thought maybe that wasn't right to look at last 12 months, and that you should try to understand what a normal seasonality would be. Is that last 12 months the correct thing to look at? Yeah. I think remembering then that we were at the very low working capital position at the end of Q2 last year. Now we're back to more of a normal working capital position. Right. Okay. Thanks very much. Thank you. There are no further questions. Please continue. Okay. Thank you everyone for joining this Sweco Q2 presentation. With that, I wish you all a great summer. That concludes the presentation. Thank you for participating. You may disconnect.