Hello, and welcome to Trelleborg Audiocast for Teleconference Q2 2022. Throughout the call, all participants will be in listen only mode, and afterwards, there'll be a question and answer session. Today, I'm pleased to present CEO, Peter Nilsson. Please go ahead with your meeting. Thank you, welcome to all of you to this presentation of our half year report. I will start, Peter will start here to give you some overall headlines and some overall comments on our business areas. Fredrik Nilsson, our group CFO, will support us with some more financial comments. Then we will finish off with some guidance on the running quarter. Then, of course, at the end of the session, we will open up for Q&A. Throughout the call, we will use the slides that have been on our webpage, which is then presenting our report here for Q2. That is what I'm gonna refer to. Turning to page 2 or slide 2 in that presentation agenda, starting with highlights, general highlights, business areas, financial by Fredrik, then some summary on some comments on the outlook, and then some Q&A at the end. Turning to page 3, our headline for this report, continued strong growth and record margin. Sales increased in the quarter compared to last year by 21%, driven by very strong organic sales growth of 11%, currency benefits of 8%, and also some M&A adding 2%. In total, summing up to 21% sales growth. EBIT growing more than that, growing by 27% up to a little bit north of SEK 1.3 billion in the quarter, which is corresponding to this record high margin for us at 17.9% of the continuing business. This sums up to the highest quarterly sales for us, highest EBIT, and highest margin so far for Trelleborg. We have small items affecting comparability of SEK -33 million, which is well within guidance for the full year. Fredrik will go back and comment on that. Cash flow at, let's say just shy of SEK 800 million, then impacted by this higher business activity, which is obviously, let's say, given naturally tying up some accounts receivables and also, let's say, higher inventory. We are no way concerned about that. We see it as natural, and I mean, we will get better here as the business develops. Also a smaller acquisition in the quarter called EirMed, which is then being incorporated into Trelleborg Sealing Solutions, which is a company fully focused on healthcare medical with one factory then outside of Minneapolis in U.S. Turning to page 4, organic sales development by geography. Very strong development in Americas, 23% organic growth. Of course, very, very strong. Europe, also strong, 10% organic growth in Europe. Then a little bit weaker in Asia, then heavily impacted by the shutdowns linked to COVID in China. We are not really concerned about that either. We believe that when China is opening up again, we're gonna bounce back rapidly in China. Order intake still okay, and the order backlog in China very good. That will be bouncing back as the market is opening up. Overall, very strong organic sales all over. Once again, China or Asia then impacted by the Chinese lockdowns linked to COVID. Turning to page five, business areas. Quickly turning to page six and comments on Industrial Solutions. Very strong growth and record profitability. In Industrial Solutions, organic sales 16%, and we're actually growing in all geographical markets and also in all market segments. Also here, we're actually growing in automotive due to market share gains in our, let's say, automotive segments in this business area. Of course, heavy cost increases here as well, linked to the. Here as well, all over, of course, linked to the high inflation of raw material, freight, and energy. That has been very well offset by efficiency and pricing, and of course, with the volumes also, flow-through from higher volumes also benefiting this. That means that EBIT in total and also margin increase to record high margin. We're actually first time touching here 15% EBIT margin. Of course, in the quarter, benefiting from good product sales and once again, good development in all businesses in Industrial Solutions. Strong quarter, very strong quarter for Industrial Solutions. Turning to page 7, Sealing Solutions, also good growth and a very resilient margins. Organic sales up by 7%. Strong organic sales in general industry, both in Americas and Europe, but China then down by... That is impacting Asia in total with the COVID lockdowns in China. We note also sales to healthcare, medical, and aerospace increased significantly with both sales in the quarter, but also very strong order intake going forward. In this, we have a small decline in automotive-related sales linked to, of course, now a supply chain issues in automotive industry, which then also impacting us, of course, but let's say this is not heavily impacting us, but nevertheless, it's a slight decline linked to that. But all in all, this is still resulting for Sealing Solutions, a record high EBIT, and a record performance in the quarter, although the margin is down by 0.4 percentage points. We still, with the growth and with, let's say, everything else, we are delivering the best ever EBIT for Sealing Solutions. Touching also on Wheel Systems, since you know that we have signed an agreement to sell this to Yokohama, and we are in the process of getting this deal finalized. But until then, it's reported that assets held for sale, which is then on page 8, and then turning to page 9 to comment on the development in Wheel Systems. Heavy inflation or headwinds, we have to say in Wheel Systems, but well-managed by the team in Wheel Systems, let's say, resulting in organic sales of 21%. Basically a healthy growth in all tire categories and all geographical areas. We should note that sales to America, sales in Americas, both North and South America, are particularly strong. We have, as I commented, in this area, probably the heaviest impact from raw materials, energy and transports, but once again, well-managed and been well compensated by pricing primarily, but also by increased efficiencies linked to the higher volumes, and well-managed on these higher volumes, which is then pushing us to a margin of 15% in the quarter. Turning to page 10, which is a new slide for us. We're reporting this to talk about also sustainability KPIs, where you can see that our CO2 has been also well managed in the quarter, going down in absolute figures, and then of course, also going down in what we call CO2 intensity, which is the tons of CO2 per million, which is also going down. Also in this respect, developing nicely quarter-over-quarter. This is not annual, so this is more quarter-over-quarter development than comparing with a year ago. Turning to the next page, also on sustainability, we're also having another main KPI here, which is linked to our share of using renewable energy in comparison to total electricity. Here it is a flat quarter-over-quarter. You are well aware of the challenges here in purchasing and getting electricity in certain geographies, but we are at least keeping this flat-ish, and we are running at the same level as in Q1. That is the new slide to KPIs for sustainability. Turning to page 12, financials, and then handing over to Fredrik to move from page 13. Thank you, Peter. Let's then move to page 13, looking into the sales development. Organic sales increased by 11% in the quarter with organic growth in both business areas. Reported net sales increased by 21%. We have 2% impact from acquisitions Q1 quarter, and then currency added another 8%. Moving on to page 14, showing the historical organic growth. You can see here that we have a new good quarter with the second quarter of 2022, and we now have 6 quarters in a row on our growth target or above. Moving on to page 15, showing the quarterly sales on a rolling 12 months for continuing operations. You can see that the second quarter was a record high, SEK 7.351 billion. Moving on to page 16. We have a record high EBIT of SEK 1,319 million, which was 27% higher than Q2 last year, with a good strong profit growth both in Industrial Solutions and Sealing Solutions. In the result, there was also positive FX impact from translation of foreign subsidiaries of SEK 69 million compared to corresponding quarter last year. EBIT margin for continuing operations, excluding items affecting comparability, increased from 17% to 17.9%. In both Trelleborg Industrial Solutions and Sealing Solutions, there was a strong sales growth supported by price adjustments. Moving on to page 17, looking at the EBIT and EBIT model rolling twelve months. You can see that the positive trend continues with increased EBIT and higher margin. Page 18, profit and loss statement. Looking at some further details, you can see we have items affecting comparability of SEK -33 million in the quarter. That was entirely related to restructuring costs. Financial income expenses up from SEK 37 million-SEK 40 million in the quarter. We have increased our net debt in the quarter, and that is mainly due to the ongoing share buyback program, but we're also seeing increased interest rates. Looking at the taxes amounted to 24% in the quarter. As earlier communicated, we have said that it will be 26% for the full year, and that still stands. Looking at net profit for discontinued operations, you can see there is a strong improvement. Here we have also some additional support from IFRS 5, where we had to stop depreciation and amortization, which has added SEK 151 million in the quarter. Moving on to page 19, earnings per share for continuing operations exclude item affecting comparability. We increased EPS with 32% from 2.75 to 3.63. For the group as total, earnings per share was up 56% in the quarter. Moving on to page 20, looking into the cash flow, we have operating cash flow of SEK 798, very positively affected by the higher earnings generation. As Peter mentioned, we have a higher business activity, which is dragging a little bit more working capital. The accounts receivable is very logical because sales is up, but then we also have a little bit more inventory to secure a stable supply to our customers. We have both a little bit extra on the raw material side, but also on the finished goods. Investments was also a little bit higher than the corresponding quarter. Looking into the cash conversion on page 21, you can see we have a cash conversion ratio of 69% in the quarter, and that reflects the higher business activities, which require some additional working capital. Moving on to page 22, the gearing and leverage development, the debt to equity ratio was 31% end of the quarter. It's two items that is increasing our net debt here, and it's the dividend that we paid of SEK 1.481 billion during the quarter, and the share buyback. We have bought back almost SEK 1.5 billion in the quarter. Net debt in relation to EBITDA was 1.4 by end of the quarter. Looking at the return on capital employed, new record high of 16.1%. We have a higher capital employed due to the higher sales, acquisitions, and FX exchange rates, but that was very well offset by the increased profitability. Then I will finish off this section with some financial guidelines for the rest of the year or for the full year. We have said that CapEx will be SEK 1.4 billion for the full year, restructuring cost SEK 300 million, amortization intangible assets SEK 300 million, and underlying tax rate 25%, and for continuing operations will be 26%. That is unchanged since the first quarter. By that, I would like to hand back the microphone to you, Peter. Thank you. Finishing off with summary and some comments on the running quarter. Heading for the report, continued strong growth and record margin. I mean, sales up by 21%, driven by strong organic growth and also some assistance from FX, also some smaller add-ons on M&As. EBIT is up even more. EBIT is up by 27%, which then gives us a record EBIT margin in the quarter of 17.9%, which means that the highest quarterly sales for us, highest EBIT, and highest margin to date for Trelleborg. Items affecting comparability at SEK 33 million, and then cash flow already commented a few times, SEK 800 million, which is then little bit pushed down by a higher business activity, higher sales, which is then consuming some working capital. A smaller acquisition, add-on acquisition for our medical and healthcare business within Sealing Solutions, EirMed being added in the quarter. This is kind of, once again, a very strong quarter for Trelleborg, and we are very, let's say, happy with the performance in this quarter. Turning to page 27 and some comments on the outlook. We are guiding for a slightly lower, let's say, demand in the next quarter, in the running quarter. I mean, this is no drama in this. I understood here that there was some questions here between the report and our call here about our order book, but we want to clarify that the order book for us is still on a record high level. We have been growing the order book in the quarter, so we're going into quarter three with the highest order book to date for Trelleborg. Nevertheless, we need to be transparent and say that, I mean, here at the final weeks of the quarter, it was a bit slowdown. Whether that is kind of continuing or not, we don't really know at the moment. I mean, the first weeks here of this running quarter does not indicate any kind of major downturn. It's more a flattening compared to what we have seen before. Once again, we have had very strong order growth for many quarters now. Also there was a growing order book also during Q2. This is no drama in this, but nevertheless, we believe that we will see a slightly lower business activity here in this running quarter compared to before. This is said with still quite high uncertainty. We still have the potential for further COVID lockdowns in China. I I think we should expect that at least up until October, that we're very careful in China. Also of course, we have still the war situation, Ukraine, Russia. We don't know what that's gonna give us in terms of gas supply and other stuff. This is the best estimate we can do and the best estimate we can do for the running quarter. This is the way we look at it. I think I'll leave it with there, and then handing over for Q&A and opening up for Q&A. Please go ahead. 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. Our first question comes from the line of Klas H. Bergelind from Citi. Please go ahead. Thank you. Hi, Peter and Fredrik. It's Klas at Citi. First an order comment, Peter, on this slowdown you talk about. I know it's early days, but I'm just trying to understand to what extent this is real demand weakness, Peter, or maybe just normalization of pre-ordering following your big price hikes, and in which segment and region do you see this? I'll start there. I mean, it shouldn't really. I understood that there was some comments on this following our report, but we don't put too much drama into this. There is kind of a flattening and maybe growing the order book for, I think, 23 months, and then we have a flattening in the 24th month here of June, but it's still on a high level. So this is something which we still. I mean, once again, we have a record high order book, and, I mean, this is of course impacted by some lack of components for some areas. They're not ordering from us. It's not that we cannot supply, but since there's a problem for others to get supply, they are slowing down. So we don't see that as a. We don't want to, let's say, raise anything, and we don't want to. There's no difference in geographies. China, of course, is impacting. I mean, people are not ordering here in the COVID slowdown, so that's been a little bit shrinking of the order intake in China particularly. But, I mean, that is linked to the COVID lockdown and not really linked to the underlying demand. It's our kind of best estimate on that. And I mean, it's once again, it's not really any drama in this. We need to read into everything, and we need to do the best estimate and the best look at it in a more, let's say, look at the figures and do what we believe is correct. Once again, I mean, we are very confident on Q3 that we are going into Q3 with a record high order book, and we have, let's say, very good order coverage for all the sales that we will be able to supply in Q3. We are not really seeing that as a weakening, but nevertheless, we need to kind of address and, yeah, tell what we believe. No, all good. No, I just had to ask given that you single it out in the report. All good, I understand. My second one is on TIS. That's obviously very good to see this margin. You're able to compensate well on price cost, but it also seems like previous M&A and restructuring is now paying off. Can you talk through, Peter, to what extent is it sustainable into the second half? Of course, we have the seasonality into the third quarter, but I'm just a little bit concerned further out that pricing can roll over as cost inflation levels off. I just need to understand to what extent is this going to be. No, I think, I mean, what is, let's say, benefiting in this quarter in Industrial Solutions is good project sales. I mean, that will not be like that in every quarter, but we have been guiding that we firmly believe that Industrial Solutions will continue to improve. I mean, I don't want to say that they continue on 15% here because 15 is the all-time high margin in this. I shouldn't give you the guidance that you get 15% for the second part of the year for Industrial Solutions. This is a little bit extra good. We do believe that it's going to continue with high sales growth, but then dependent on projects and that the outcome will be probably slightly lower. I mean, we are happy and the performance is good, and we are not kind of sliding in any way. Good compensation for inflation and good price adjustments and good efficiency. It's very well managed and a good outcome. We still have to wait a few more quarters before we can, let's say, put this on a- Yeah. -15%, forever level in a way. Yeah. No, that makes sense. My final very quick one is on the choice between M&A and redemption. Obviously, a very solid balance sheet at the start of next year if Wheel Systems go through. You seem confident that this will happen, but you're already a big player in your key end markets, and you say that you want to do bolt-ons, and that's the estimate that will take quite some time to redeploy that cash into growth. A good update from Peter on the choice between maybe partial redemption and M&A, or is M&A still the big focus? Thank you. No, I mean, the priority will be if we can find, let's say, good M&As which is long-term beneficial for us, then of course that will be the priority. We will not spend the money simply because we want to spend the money. It's because we find a good M&A which we believe is more long-term beneficial for our shareholders. I mean, that is what we do. Really, we're not going to end up. I don't know. I mean, we're working on a few projects as we always do. But of course, as you were hinting, most of the M&A we're looking for is much smaller M&As which could be made more or less with the running cash flow. That's really only thing it's consuming. Then there is of course a few bigger ones that we want to go for, but then it's more if that makes sense, and we get it to the right valuation and with the right kind of long-term benefits for both the company and our shareholders. We are still keeping the options open, and we don't really know where it's going to end up. It depends on where we kind of if we find anything interesting or not. Thank you. It's not really about the priority in that respect. It's more the priority is if we find a good M&A, we're going to spend it on that. Yeah. No, I was just emphasizing your previous comment on bolt-ons and given the Yeah. The sheer size of the balance sheet, then it will take some time. That was just my point. Yeah. Yeah, all good. Yeah. Thank you. The next question comes from the line of Karl Bokvist from ABG. Please go ahead. Yes. Thank you, and good afternoon. I just wanted to ask a first question on Industrial Solutions, very strong performance. I think similar to a couple of quarters ago, you mentioned the strong project business and a bit of marine and a bit of other aspects. Also something you touched upon here earlier, you expected strong sales to continue into the second half. My question is really how much of the performance in Industrial that was more or less particularly related to projects you delivered upon only in Q2, and what could continue into the second half? It's always a mix on the projects. It goes a little bit up in profitability. That's the business of project business, at least for us. Even though sales is not always with extraordinary margins. That is, it's a mix. Once again, the overall guidance is that 15% is probably a peak quarter for this year. That is really we don't want to give any more guidance than the 15% was probably a little the high side. Understood. You said you mentioned a couple of comments here on certain end markets as such, but were there any particular end markets or anything in any of our particular divisions where you did see a bit of a decline in order intake towards the end of the quarter? Not really. If you point out, of course, it'd be a bit slow in some automotive related businesses where people are kind of slowly adjusting the year-end estimates and potentially order a little bit more, a little bit less, sorry. That is something which is not really a major. I would say everything developed nicely. Some automotive related businesses and China, I mean, that is really the only two negatives we can see, or basically everything else is positive. Understood. My final one is just where in the process you are when it comes to Wheel Systems exit. How far have you come? No, our estimate is still, as we said before, by end of the year, plus minus is going to be concluded. That is really there is no stumbling blocks, nothing, let's say strange, nothing which is creating any kind of concerns on our side. It is running as planned, and we still expect it to be closed hopefully before year-end or just a few days into next year. That is really where we are looking at the moment. I mean, on that as well, we have also the Printing Solutions pending. I mean, you know, the final closure of Printing Solutions as well with the sale to Continental. That is also something we do expect there to be, that is to be expected, let's say well before year-end. Would you say here in end of Q3 or beginning of Q4? That is a little bit earlier on that one. Once again, on the Wheel Systems activity, nothing strange, everything going as planned. We do expect closing and the money in our accounts here hopefully before year-end. Understood. Thank you. The next question comes from the line of Agnieszka Vilela from Nordea. Please go ahead. Thank you. I have a few questions. I understand that automotive and China were weak in Q2, but I just wonder what you see going into Q3. We're hearing from the automotive companies that they see better supply of semiconductors and components and that they're ramping up production. The first question here, what are your expectations for your automotive exposure going into Q3? Exactly as you're saying, Agnieszka, we expect it to improve, and we expect both China to improve, and we expect the automotive to improve. That is kind of a positive going forward. Of course, China with some uncertainty as we know this convention coming up here in October. I think we're gonna expect them to be careful at least until October. There could be further lockdowns in China, but we do not kind of expect that to be. We expect it to be better. If you say China now when the lockdown was softening a little bit in June, it was very strong in June. We do not expect. If nothing strange, then we will be catching up in China before year-end. As you already commented, we do expect some improvements on automotive as well. That is kind of two positives if you compare to the run rate here in this Q2. Yeah. Perfect. China specifically, how much was it down for you in Q2? It was down a little bit. Actually, we did in Industrial Solutions. It is a little bit where our main activity in China for Industrial Solutions is in Shandong Province, and Shandong was not really in lockdown measures that was going. While for Sealing Solutions with the main activities in Shanghai, they were a little bit down. I mean, I don't say they were down by less than 10%. I would say that it was. It was negative. I can't really remember the figure, 7 or 8% or something like that for the China sales for Sealing Solutions. It's not really dramatic in the totality. I mean, still 7 or 8% down, it could be probably have to get that back. Of course, it has to be growth in the second part of the year, which we do expect it's gonna be. Practically, if there are no further lockdowns in China and we see improving automotive, then you would have some support for your Sealing Solutions business in Q3. Yeah. How do we expect it to be having support from those activities in Q3? Yeah. Perfect. I wanted to ask you about your dependence on the gas as an energy source for your factories in Europe and maybe more specifically on Russian gas, if you know anything about that. Do you have any contingency plans for that? Yeah. I mean, for the gas, I mean, we are not. I mean, we don't have a lot. We have very limited manufacturing in Germany. We sell in Germany, so the indirect impact on shutdowns might be something, but there's nothing we can do about that. For our own manufacturing in Germany, we don't see any real issues. The only issue we have is with the gas supply in Italy for our wheel systems activity. That is the only kind of concern we have. We're working with different contingencies for manufacturing in different sites if that happens. I mean, we don't see that as a major thing for us, honestly. Perfect. Thank you. I have a last question on working capital, and I obviously understand the fact that it's going up together with sales and probably also with pricing and FX. But still you write in the report that you are building some buffer stock. I just wonder what are your expectations for the working capital for the coming quarters? Do you expect to lower your inventories or how? What's your planning there? Fredrik, yeah? Yeah. We expect that we should have peaked inventory here now in June or July, and then it should start to falling down, step by step here during the second half of the year. To say this building extra inventory, we talk about EUR 10 million-EUR 20 million. Euro. Euro. Yeah. It's not really a major item. EUR 10 million-EUR 20 million. Yeah. Yeah. Perfect. Thank you. The next question comes from the line of Erik Golrang from SEB. Please go ahead. Thank you. I've two questions. The first one on CapEx, if you exclude wheel systems for this year, SEK 1.4 billion in total, where would that be ex wheel systems? That's for Fredrik. Yeah. I think it will be around two-thirds of. I mean, you can more or less taking out one-third of the SEK 1.4, and then you will be close to the full year. Oh. Okay. I think that's the best guide we can give at the moment. Second question, and maybe you said it, but how much of the 11% organic growth was price mix or was volume, roughly? We don't want to give the details on it, but the majority volume, let's put it like that. Majority volume. Okay. Then the final question, if you could say something about I mean, you know, you're, you know, you've only seen a bit of a stabilization in your order book towards the very end of the quarter, but still there are, I guess, decent indicator out there that would tell us that the tougher times are coming. In terms of contingency planning and you preparing for a potential downturn, where are you in that thinking now? Is there always a contingency plan for every division that you can pull out, or how does that work? Do you have CapEx plans that you would have to execute on even if things turn worse? If you could just say a bit about how you potentially prepare yourself for weaker demand. No. We are always having, as you hinted, always, let's say, contingency plans, always having room. I mean, you have to say this weakening, of course, we're coming from a very strong organic growth, and we do expect organic growth also in the second half of the year. I mean, our different scenarios is still showing a solid organic growth in the second part of the year. It's only that we do foresee that it's probably not gonna be as high as it's been in the first six months of the year. We are not kind of, at the moment, at least, our kind of plans does not include a dramatic downturn here in the second part of the year. We're still going into the second part of the year, which I already said, with record high order books, and we have very, let's say, very good coverage on current orders in to, let's say, to be able to deliver organic growth also in the second part of the year. We, of course, are always looking to this, but we don't really see that being an issue here for the next six months at least. Of course, things can change, and if things change, we will be speedy in implementing new actions. At the moment, that is not really even close to our kind of core scenario. Very good. Thank you. We have one more question from the line of Hampus Engellau from Handelsbanken. Please go ahead. Thank you very much. Two questions from me. It's coming back to price increases. Have you seen the full effect of the price increases that you've implemented, or should we expect more on that, moving towards the second half of the year? Given when you see cost, how should we then think about the operating leverage for second half? That's my first question. Second question is more general. I know that you have your shortlist on potential acquisitions, and some time ago you mentioned that could be up to 200 companies that you're monitoring. My question is that given that we've seen a quite hefty market revaluation of listed companies at least. Have these guys been softening a bit on when you discuss the price tag? If that's the case, could we expect some intense activity from you guys, on the back of that? Those are my two questions. Thanks. Yeah. On the price increases, we have more price increases kicking in. I mean, the overall cost inflation has been fairly substantial also in Q2. I mean, even though we are quick and we are implementing price increases, I mean, we believe in a very, let's say, solid and quick way. We do still have some pricing kicking in, but also some cost increases kicking in. We do expect ourselves to be, let's say, well in line with the cost increases and price increases. There is more. We have not stopped increasing pricing, let's put it like that. Which refers to, let's say M&A. I mean, it's still. Of course, I mean, this overall market sentiment is impacting also the M&A market. That's of course we are trying to make sure that we get benefits from that. That is kind of an ongoing discussion. I mean, there is still a lot of companies out there which is for sale. Of course, since we are in most times buyers, then of course we are trying to talk down the price and the sellers try to hold on to the price. They are not increasing the pricing anymore. They're not increasing the valuations anymore, let's put it like that. They are more trying to keep the valuations where they are. That's an ongoing discussion. also in most of the cases where we are kind of looking, where we have, let's say, quite a lot of synergies, as it is bolt-on and all of that, it's more to get them to execute. We believe the buying multiples is still attractive. It's more to get them to get the close. We are working on a few smaller bolt-ons and there is also a few bigger ones out there. That is something which is more where we need to watch and see what if we can agree on the valuation. It's difficult to comment on these samples, but I mean, for sure, there is plenty of discussions ongoing, and then at the end of the day, we need to decide whether we believe it's the valuation is good for us or not. Fair enough. Thank Thank you. We just have one more question from Karl Bokvist from ABG. Please go ahead. Thank you. I just had a follow-up on your comment about how aerospace is developing nicely for you. Just out of curiosity, do you feel that you have any relatively strong position within narrow body compared to wide body? Or if it's possible to say, you know, that you feel you have a stronger position with Airbus compared to Boeing, for example, just how to think about the market development. We are well-positioned in all kinds of aircraft. We are leading in a few landing gear. We do actuators, which is controlling the wing flaps. We are also on the cold side of the engine. But for us, it doesn't really matter which aircraft it is. We are well-positioned in all of those areas. I mean, as you say, now it was this Farnborough Airshow. I don't know if you know that there was an exhibition here actually early this week, which is kind of every second year, the biggest air show, and it's really booming. I'm gonna say it's booming. We talk about tens of%. I mean, I couldn't say, but I mean, some of these figures, very high order growth in this area. As you know, there's more airplanes, so it's more a matter of capacity at the moment than actually a matter of demand. It's really, really booming in the aerospace industry, and it's booming all over. For us, we have a good position both at Boeing and Airbus. We know at the moment, of course, Airbus is the one winning a little bit. Now also I saw that there was a few big, big orders being placed also to Boeing. I can't remember which airline it was who ordered 100 airplanes the other day, 777s. Of course, but for us, doesn't really matter. I mean, we are benefiting from orders wherever they kick in. I mean, for us, it's once again, very, very strong order growth in aerospace. All right. Thank you. We just have a follow-up from Klas H. Bergelind from Citi. Please go ahead. Thank you. Thanks for taking my follow-up. I had to jump the call. Maybe you covered this already, but you highlighted this depreciation effect in discontinued, Fredrik. It looks like a SEK 151 million boost, and that was mainly in wheel systems. I just want to clarify how that was split between wheels and printing blankets, which I think is the case, right? By far, I mean, it's. Almost everything. Almost everything is linked to Wheel Systems of the 151. There is a small part, but only a small part that is linked to Printing Solutions. The underlying margin then, I guess price cost pressure, obviously, it's very energy-intensive wheel system, but the underlying margin is more like, you know, 10%-11%. Is that correct? No, no. 15% is true operational margin. Very good. Okay. Including full depreciation and amortization. Excellent. Very good. Okay. No, I got a question from it. I just want to clarify. Thank you. As there are no further questions, I'll hand it back to the speakers. Good. Thank you, and, thanks. I mean, once again, now in Trelleborg, we're very happy delivering a record quarter. I mean, we also very positively looking all to the future. We're going into Q3 with a record high order book, and we feel confident that we're gonna continue to deliver good results here in the foreseeable future. I mean, of course, we are not in any way trying to hide away from this higher inflation and the potential impact from higher inflation. We are preparing ourselves for a slightly lower growth in the second part of the year. Once again, we do still expect solid growth in the second part of the year. We do expect to continue to deliver good also with the price increases and efficiency gains to compensate for this higher inflation that we see. We are very confident going forward in most aspects, and we are, let's say, more or less all aspects. Of course, we have our challenges as well, and that is why we are here, and that is why we see possibilities to further improve. Of course, we're working hard also to close these deals, first Printing Solutions and then Wheel Systems. As I fully focus on this new exciting Trelleborg with a better business and more stable performance and better overall margin. Hopefully, keep in touch on that one. If you have any further questions, again, Christofer, always available, and Fredrik and myself will also attend a few investor meetings. Hopefully, we'll run into you here in the next few months. Take care, enjoy the summer, and speak to you later. Thank you. This concludes the conference call. Thank you all for attending. You may now disconnect your lines.