Welcome to the Trelleborg Q1 2024 report presentation. For the first part of the presentation, participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing pound five on their telephone keypad. Now I will hand the conference over to CEO Peter Nilsson and CFO Fredrik Nilsson. Please go ahead. Thank you, and welcome again to all of you to this presentation of the Trelleborg Interim Report for the first quarter of 2024. As already stated, speaking Peter Nilsson, President and CEO of Trelleborg, and also joining me on the call is Fredrik Nilsson, who is the CFO who will guide us through more of the financial part of the presentation. And on the call is Christofer Sjögren, our Head of Investor Relations, who is also able to support us if there are any questions which need his support. So using the presentation that we have on our web since a few hours, turning to the first page, which is only saying Trelleborg Interim Report, turning to page two, which is the agenda slide. As usual, we split it some highlights from my side and also some comments on the business areas. Which is going to be three this time for the first time since some time. Then financials. Fredrik is going to guide you through this. And then we're finishing up with the summary and some comments on the outlook for the running quarter and then summing up with the Q&A. So then turning to page three, highlights. We have, let's say, the heading improved margin despite slightly lower sales. Sales came in at SEK 8.2 billion, which is, let's say, down by 5% compared to a year ago, which is then reflected as 5% down, reflect organic sales down by -3%. And we also have a negative structural thing here of -2%, which then gets us to this -5. Currency, basically no impact in this quarter, first time since a few quarters. Then, of course, we note looking at organic sales. The holiday, as all of you are aware, was in April last year, in March this year. So that has impact organic sales by close to 2% in the quarter and primarily then impacting our Sealing Solutions activity. Get back and comment on that. EBITDA ending up EBITA ending up at SEK 4,090, which is then, let's say, corresponding to margin of slightly north of 18%. Still running restructuring in order to continuously improve our structure so that we have, let's say, items affecting comparability in the quarter of SEK 55 million. Also relatively strong cash flow in this quarter. As usual, seasonality means that cash flow in the first quarter always is weaker than the other quarters in the year. But if you compare to a year ago, this is a strong cash flow for Q1. We note that we've been managing our working capital good, although at least a bit muted sales. Fredrik will comment on that as well. As already told, we are for the first time, let's say, also presenting individually Trelleborg Medical Solutions. Get back and comment on that. Soft start for Medical Solutions in a challenging market. Also I will get back and comment on that when we speak about that business area. We're also happy to sign the agreement to acquire Baron Group, which is going to be a game changer for Medical Solutions when we get that into the books. Also to be noted, I mean, beyond the end of the quarter, we finalized the earlier announced MNE acquisition in Korea, which is then strengthening us substantially in seals for the semiconductor industry. We also have signed an agreement to acquire BP- Tech Group, as it's called, or more used name is called Boldan, which is then a pipe repair business based in Finland but selling globally. This is kind of the highlights of the quarter. Moving from that over to page four to comment a little bit on organic sales. As you can see, it varies quite a lot across the globe. If you're starting with the positives, we have positive growth in Asia driven by strong development in China, where we see a good bounce back, a continued good bounce back, good order intake, and overall good development, but once again driven primarily by China. Europe flattish with a kind of a mixed development between countries and between markets, but summing up to no growth at all in the quarter. And then we have a negative, substantial negative growth in North America driven by some inventory focus, but also some kind of challenging markets in mainly the construction of highway-related activity then, which is primarily linked to our hydraulic and pneumatic sales, which is then used in areas like construction equipment, agriculture, and also partly mining. So that is kind of the explanation of this fairly heavy negative in North America. Turning back to page five business areas, quickly to page six and comment on Industrial Solutions. Heading improved profitability despite lower sales. Organic sales down by 3%, M&A supporting by 1%. Should be noted that this is kind of in relation to a fairly strong quarter a year ago. It's basically the same development that we've seen the last few quarters here where we see residential construction and certain Industrial segments. The Industrial segment, which is mainly exposed to distribution, continued to be soft. We see that the overall kind of product-related sales in the solutions continue to perform well. We especially note that liquid natural gas customers are increasing orders and sales substantially, which is kind of assisting us. We note that automotive sales are still growing in the quarter. I mean, we are watching this carefully, but at the moment we still see good automotive sales in this business area. Overall, well managed. I mean, we continue to benefit from structural improvements, good, let's say, price management, and also positive sales mix, which is then pushing the margin to high levels for this business area. As already commented, we also continue to build on our business for pipe repair by this acquisition in Boldan. That continued as a continued kind of prioritized area for us where we hopefully can continue to build this even better position in this attractive and rapidly growing segment of pipe repair or aligning of water pipes. Turning to page seven and commenting on the new business area, Medical Solutions, a fairly muted start impacted by inventory adjustments in the industry. We have some heavy, let's say, bigger customers which have, let's say, done heavy inventory reductions in the quarter. The underlying demand is still okay. And that is why we, although we note that this is a soft organic sales and we're also guiding for soft organic sales in next quarter and the running quarter, we still feel that the underlying demand is good and that we overall will see a fairly flattish development actually for the full year in Medical Solution in relation to organic sales development. EBIT actually mix is improving and we are therefore able to, although on this fairly dramatic sales drop, we still manage to deliver an EBITDA in line with last year and actually with an improved margin. And we also continue to tell about Baron Group, which we believe will be, let's say, closed. This deal will be closed within the running quarter. We don't know exactly when, but within the running quarter we expect that to be closed. And when that gets in, we know that we will have synergies and we'll also have a substantially better overall performance of Medical Solutions. We are also growing, continue to develop this new business area structure and we're adding resources in order to be able to approach all interesting customers and all interesting segments. And this is also something that we also, as before. We want to note that we're running with a slightly higher cost, overall cost level in the business areas in order to position ourselves in the best possible way for the future. Turning to page eight and commenting on Sealing Solutions, organic sales, as I say, -2, which is, let's say, to the lion's share impacted by the, let's say, placement of Easter this year. So let's say if we allow ourselves to adjust for that, as you know, it's a flattish sales in the quarter. Sales to general industry is the one which has been pushed down where we then, let's say, in that is seeing or being told by our customers that this is mainly related to continued inventory focus and not really to a lower overall demand. Automotive demand in this business area, flattish and really no change from a year ago. We note to continue very strong sales development in aerospace, good order intake, and also good sales development in the quarter. EBIT in margin down, primarily related to earlier acquisitions, still being integrated and in a good way. But the benefits will kick in, as we said before, here during later this year and also going into 2025. But of course, also impacted by this slightly lower volumes as we are on top of this also focusing on our inventory. We are not, let's say, overproducing. We're actually more or less underproducing in the quarter in order to make sure that you protect the cash flow and that we're not, let's say, building inventory in any way. Also in this area, like in Medical, we are continuing to invest in somewhat what we call fast growing market segments like semiconductor, aerospace, where we are still a little bit running ahead a little bit with our resources in relation to the sales, but where we see that this is going to be a positive impact on a more medium long term for the business area. So this is really what we're going to say about the business areas at this stage. Moving on then, a few comments on our sustainability KPIs with a focus on carbon dioxide. Continue to develop very favorably for us. We are successful in lowering our emissions, as you can see on the slide. Especially also if you are primarily driven, if you turn to page 10 with a continued increase in a share of renewable and fossil free electricity, we feel that we are very well on the way of developing on our targets in relation to CO2, but more of that in the future. Turning then to page 11 and the agenda slide and the financials and then leaving to Fredrik to guide you through with the start of page 12. Thank you, Peter. Starting with the sales development for the quarter. As Peter mentioned, organic sales dropped by 3% in the first quarter. Industrial Solutions declined 3%, Medical Solutions 11%, and Sealing Solutions was down 2%. Then, as you can see on the slide, reported net sales decreased by 5%, and that is -2% from structure, which is mainly related to the divested business in Czech Republic during autumn 2023. Moving on to page 13, showing the historical organic growth. And as you can see here, the first quarter was below our sales growth target, which is 8% over a business cycle. Moving on, page 14, showing the quarterly sales and rolling 12 months for continuing operation. The sales in the quarter reached SEK 8.2 billion, and at the rolling 12 months, it reached SEK 33.8 billion. Moving on, page 15, looking at the EBITA and the EBITA margin development. The EBITA, excluding items affecting comparability, decreased by 2% to SEK 1,490,000,000 with profit growth in Industrial Solution, a flat development in Medical Solutions, while it declined in Sealing Solution. In the result, there was a small translation impact, which was SEK -14 million compared to the corresponding quarter last year. Margin-wise, up 0.6 percentage points from 17.5 - 18.1. That is despite that we initially had some acquisitions with lower margin. And as Peter was also mentioning, we have invested in the organization on some fast growing market segments. Moving on, page 16, looking at the rolling 12 months EBITA. It amounted to SEK 5,964,000 with a margin of 17.6%. That implies that we have had an EBITA growth of 7% during the last 12 months. Going into some more details on page 17 in the income statement, we have items affecting comparability in the quarter of SEK 55 million, which is entirely related to restructuring costs due to that we are adjusting our cost base. I would also like to highlight our financial net that is down from SEK -165 million to SEK -20 million. And that is mainly due to that we are now in a net cash position, but also that in the corresponding period last year, we have a short-term loan for financing the Minnesota Rubber and Plastics acquisition that was repaid during the second quarter in 2023 when we received the proceeds from the wheel divestment. Tax rate for the quarter, 25%, which is fully in line with earlier guidance. Moving on, page 18, looking at earnings per share. A strong improvement of 16% for earnings per share, excluding items affecting comparability. And that is due to the improved financial net, but also due to the ongoing share buyback program that we have fewer shares when we calculate earnings per share. If we look for the total group, you can see it's down 24%, but that is explained with the discontinued operation related to Wheel System and printing blankets that was divested in May 2023. And that added the discontinued operations SEK 1.81 to the EPS. Page 19, cash flow. A good improvement compared to 2023. As you can see, working capital, an improvement of SEK 150 million and also slightly less CapEx in the quarter. Looking at page 20, the cash conversion remains at a really good level and reached 95% on a rolling 12 month basis. Looking at gearing and leverage. I would like to highlight here that as we are still in a net cash position, the reported debt ratio became negative and amounts to -2x. And if we look at net debt or net cash in relation to EBITA, it was -0.1x. We have also bought back own shares of SEK 1,085,000,000 in the first quarter. Return on capital employed on page 22, excluding items affecting comparability, was 12.7% compared to 14.9% a year ago. That is due to the acquisitions with initially lower returns and also the small profit, lower profit that we have this year. Looking at page 23, some guidance for the full year 2024. They are unchanged compared to what was presented in February. So CapEx still 1.6, restructuring cost of SEK 250 million for the full year, amortization of intangibles 500, and the underlying tax rate remained unchanged of 25%. So by that, I would like to hand back the microphone to you, Peter. Thank you. Turning to page 24, agenda slide again. Quickly to page 25 to give you a summary again. I mean, improved margin despite slightly lower sales. We feel the quarter is well managed. I mean, we still had these negative organic sales, primarily driven by inventory reductions and not really, let's say, a firm indication on any kind of lower demand. We still, as usual, we have a mixed picture. I mean, we see a few segments doing very well. We already mentioned LNG, oil and gas, aerospace. Also have semiconductors performing well. And we do also see kind of a good underlying demand in the Medical area, although we are heavily impacted by inventory focus for some of our key customers. Overall, solid quarter, we feel, impacted, of course, by the Easter holiday, already commented on a few times. Strong cash flow in the quarter, let's say, in relation to the season. I mean, we feel satisfied with the management of working capital, well down by our units to manage this in the quarter. And we also noted satisfaction that we are adding to our Medical business by this Baron Group. Now we are eagerly looking forward to close that deal and integrate it and get the synergies that we identified in order to push and improve Medical Solutions substantially following this integration. And we also see this, call it smaller bolt-ons, but very interesting, needless to say, on MNE in Korea, which is offering a new platform for us in Asia for sales into the semiconductor manufacturing industry. And we also noted satisfaction, another interesting and very nice add-on for us related to the pipe repair aftermarket for water and wastewater infrastructure. So, I mean, a good quarter, a lot of things moving in the right way. We continue to have our focus on delivering on our margin target, 20%+. We feel that this quarter is a step in the right direction. I mean, we are able to increase the margin, although we have decreasing organic sales. We feel when this normalized and we see, let's say, a little bit of growth potentially, then we feel confident that this extra growth will deliver a good leverage and we will then get closer to our target of 20%+ EBITA. Turning then to page 26 and commenting about outlook, we don't really see any changes. I mean, order books is solid in a way. We don't see a decline in order book. We see overall good development, but we are, of course, fully aware of this uncertainty where we see, unfortunately, we see around the world with the continued disaster in Ukraine and also with this, how should I say, uncertainty in the Middle East, which, of course, could impact us. And we also see a continued focus on inventory reduction, which is for some of our customer segments. But with that said, we still have, once again, a solid order intake, which does not really indicate any kind of dramatic changes. But once again, this outlook is, of course, let's say, linked a little bit to bigger uncertainty than usual. But overall, looking into what we know from before and what we see in our businesses, we feel that it's going to be equal development in Q2, as we said in Q1. With that, turning to page 27 and quickly to page 28 and opening up for a Q&A session. So please go ahead. If you wish to ask a question, please dial pound key five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key six on your telephone keypad. The next question comes from Erik Golrang from SEB. Please go ahead. Thank you. I have a couple of questions. First, on the demand side for the second quarter here, 2% point drag from the Easter. You talked about sort of generally stable demand trend, and then you have this stocking element in Medical, which is a bit uncertain about the near term. But it must have been an alternative to guide for sort of higher growth given the swing in seasonality and no other real sort of underlying factor changing much, that's fair to assume. Yeah. Erik, we comment on that. I mean, we are, of course, if you look solely at the order book, it will be better in Q2, but we also note that there is uncertainty and we want to be a little bit more on the careful side, if you may say. I mean, we are still trying to make sure that we don't overproduce and that we don't really believe in a brighter future than we see. But of course, I mean, you are right in that way that, I mean, the Easter effect will be positive in Q2 and it was negative in Q1. So I could agree with you that we are a little bit on the careful side, but nevertheless, I think when we put everything in a bag and we look at it, then we believe this is a fair comment and a fair assumption that we're going to see similar development in Q2 as we saw in Q1. Okay. Thanks. Then. To highlight on this also, Erik, I mean, the order book is solid. I mean, the unknown is how much continued inventory focus we have. We still see that some of our core Industrial customers are kind of trying to get their inventory down, although they continue to place orders. So this is the kind of development we've seen for a few quarters. And I think I commented to you before as well. I mean, we are a little bit surprised about that, and that is nothing that is common. So if that kind of trend is changing, then of course, we will see, yeah, more positive sales development. Okay. Understood. And then two questions on profitability. First one in Medical. You say when Baron comes in, it will do 20% EBITA. I guess that implies Baron is doing 30% or so, which is a very high level. Any reason to feel that's not the sustainable level for them? And what's the main factor putting them at such a high margin? And then second, on Industrial, you've been a bit sort of indicated towards expectations of a more sideways margin development for Industrial after a really strong 2023. Now this first quarter, we're up again. Have you been too cautious on mix or price here? What's the delta? Thank you. No, firstly, on Medical, I mean, we fully understand that there is a big difference between the 14 in this quarter and the 20 that we're guiding forward. We feel confident we have an operating plan. We know what we want to do with Baron, and we know what benefits we will get with Baron. So that is where we fully understand that kind of the proof is in the pudding there, and we have that to deliver. But we still want to comment on, I mean, that is the long-term, the medium-term, even short-term target here is to get Medical up to 20. And that is what we are still aiming for. And I mean, I understand that you are in doubt, but that is something that we are working for and something that we believe in, and we need to prove that that is happening. With Industrial, it was a little bit positive mix in the quarter. We said we had some project sales, especially related to liquid natural gas segments, but also a little bit extra volumes in automotive, which is, let's say, created some extra. Although not on the most profitable part of the business area, but nevertheless, we benefited from that. So there is a little bit negative mix in the current, in the running quarter, in the Q1. And we do not fully expect that to continue in the same way, but we still feel that overall, the business area is moving in the right direction. And I think the overall guidance is still valid, that we believe it to increase by 0.5 percentage point per year. But we also comment on that it will vary, let's say, in between the quarters. And this was probably a little bit on the high side in this quarter. And we need, of course, we will try to continue to deliver on the same way. But I mean, it was a little bit on the high side. I don't know, Fredrik, if you want to supplement anything on this comment. No, but I think we also flagged already last year that we have some project business both in Q2 and Q3 last year with a little bit improved margin a little bit. So I will say we have a little bit tougher comps as well going into Q2 or Q3. Yeah. Very good. Thank you. The next question comes from Klas Bergelind from Citi. Please go ahead. Thank you. Hi, Peter and Fredrik, Klas of Citi. So coming back to this destocking, I lost count almost. I think this is the third quarter we've seen destocking in North America. It's obviously highly unusual. We had this massive pre-ordering effect, etc. I mean, we expected that. But when you look ahead, Peter, and look at the inventories among your customers, speak to your customers, also in the channel, are you getting any indication that we're coming to an end? You gave a very specific comment on the destocking in Medical, but I'm curious to hear what you're hearing on the Industrial, [audio distortion], and construction verticals. Thank you. Yeah, no, I think, of course, we are also surprised, to be honest. I mean, I think it's not even the fourth quarter that we see this kind of destocking effect where there are kind of ordering or not ordering. Order intake is actually good, is positive in the quarter, but they still continue to do the call-offs on a lower level. I mean, it's difficult for us as well, to be honest. I mean, we don't really follow it. We get guidance from the customers that the destocking is ending, but then they still continue to order below. I don't know whether it's because they are expecting, speculating on lower pricing or that they are even more cautious. What we're highlighting in this specific quarter is more related to off-highway, which is kind of where we see an increased destocking in the areas of construction equipment and mining a little bit and also agriculture. So these are the areas which have been, let's say, more impacted in the quarter. And we continue to see kind of a low also, which we had for some time. Also less and more residential construction is also continuing on a downward trend. And we are also, like you, to be honest, a little bit surprised that this is continuing and customers are not indicating lower demand. They're indicating that they're more cautious. So that is something we are watching carefully and something that we are, yeah, aware of, that this is strange. I mean, historically, if we go back earlier cycles, this destocking has only been for two quarters, and now we are up to the fourth quarter. So it is a surprise, Klas, and I don't know what to say more. Oh, no, no. I appreciate it's difficult. My second one, I get, Fredrik, your answer on TSS that obviously there was a little bit of an anomaly to have it at this high level. But coming to the margin in TSS, better margin than I thought despite the Easter effect. And when we get this calendar effect, obviously, there is more underabsorption, which is set to reverse here into the second quarter. And given that you say that the MRP integration is on track, I'm just wondering if we can get closer to almost 22% once this Easter effect reverses. I know that the 23% target is more towards mid-2025, but the margin was better than I thought despite the negative volumes. So I'm curious on the Easter impact if you can quantify it. Thank you. But we are not guiding specifically on the margin for an individual quarter, Klas. But what we meant with the MRP integration, we have clearly also said all the way that it's back-end heavy. So most of the synergies will materialize in 2025, but we are seeing progress with the projects that we are running. That's how you should read that comment. But we are, of course, running with a low capacity utilization. We are running with a low capacity utilization. We are underproducing, actually, in the quarters. Of course, if there is, let's say, a positive volume impact, if we manage that good, then there should be a good drop-through. But we are not, let's say, confident to say that this kind of extra volume is kicking in already in Q2. But when it comes, we do expect a substantial leverage on that extra volume. Yeah, yeah. No, but it's just a mathematical almost certainty that you get 2% back. That was my point. And my point as well was I totally get the whole comment. You don't guide sort of you don't guide per quarter. But I think still it was an encouraging level given that you're still early days of the MRP and then Easter reverses. I guess that was my point, but yeah. Thank you. Thank you. The next question comes from Timothy Lee from Barclays. Please go ahead. Hi, Peter. Hi, Fredrik. First, I'll take my questions. The first question is about China. So you mentioned about China is the key driver for recovery. Can you elaborate a bit more about from what segments you see the strength to come from and whether it will be something that you see to be a sustainable momentum given that when we look at the commentaries from the other companies with high exposure in China, they're actually giving quite a mixed picture regarding the recovery in China? So I would like to hear what you are hearing from the ground about China. That's the first question. And the second question, a little bit more on the TSS margin. So again, it is quite a good development in terms of margin. Can we say that the impact from the previous investment in the key fast-growing segments to be something behind us so that we will see some more improvement in terms of the segment margin even though the synergies coming from the acquisitions may come in next year rather than this year? On China, I think it's a fairly wide, let's say, improvement. We do not see improvement if you say residential construction. We are not that exposed to that. But just to clarify, it's not coming from that. We're still seeing on the limited exposure we have to that segment, we still see a downward trend. But we have, let's say, an overall, let's say, infrastructure construction is doing good. Also then relates to mining. Also, construction equipment for the, let's say, infrastructure construction is doing better. But that is from fairly depressed levels, to be honest. So it's not really back to where it were before, but nevertheless, it's a strong uptick. Semiconductors is another area, which is doing good for us. We also see general industry is also improving. So it's a fairly wide improvement, but also we need to be aware that it's coming from fairly, let's say, low levels. So there are very easy comps. So we must not kind of overreact to it or make it, let's say, too big of a thing. But nevertheless, it is a substantial improvement compared to a year ago. On the second question, was that on TSS or what is? I didn't get it there, really. Was it on Industrial Solutions or was more? I I don't know, Fredrik, you can take that. I understood it was Sealing Solutions. You mean the investment organization and the payoff of those investments? Yeah, exactly. Yeah, I mean, that will come gradually. We have invested in the organization. I mean, we talk about aerospace, health, and Medical in the past. Now it's Medical Solution, semicon, and a few other segments. Then, of course, that should turn into incremental sales, and that will come gradually during the year and coming years. We see, let's say, in aerospace firm payback in volumes. I mean, honestly, they're struggling with the growth a little bit there, so we don't really get the efficiency we want in the aerospace. So there we also need some operational improvements. I mean, so that is kind of an investment that is paying off in terms of extra sales. But I mean, we should get a better margin out of that. It seems to be very blunt about that. Semiconductor is also kicking in. I mean, it's a smallish area for us, but nevertheless, now with MNE investments and with this, how should I say, the desire from some of the Asian users of semiconductor equipment to get away from American supply, we are benefiting from that. So that is also something which is also in the same very strong order intake. But also on that one, we are a little bit struggling to get the full efficiency out of that growth yet, but nevertheless, very positive. So there is kind of several areas. Electrification is another area also where we have a lot of small businesses. It's not kind of big orders, but a lot of small pockets, which is growing. We are launching a new food-grade material as well, which is also picking up. I mean, as you know, there is this discussion on PFAS, no PFAS material, and we have, let's say, a very good position in the areas where PFAS is going to be replaced. We have a very good portfolio of material also where we see good order intakes. So in general, I think the efforts that we're doing are paying off. But as we commented before, it will take time to get it into the factories and get, let's say, full efficiency and get it into the profit in the right levels. But overall, we are satisfied. And then, of course, there's a few areas which are slower, like hydrogen or something like that, which is slower, which is more very early days. But overall, we feel water segment is also an area, but just to note on a few, which is still slow, which is then, let's say, impacted by residential construction being low. But we also see that we move forward. We have a good range of material being launched into that area, but we still don't have the upticks. So even though we are kind of having exposed to depressed sales, we are still investing in those segments because we believe in them long term. So it's a mixed bag, but we think it's we believe, we firmly believe that we're doing the right thing and that we're going to get, let's say, the full benefit of this eventually. Cool. Very helpful. Thank you so much. The next question comes from Hampus Engellau from Handelsbanken. Please go ahead. Questions for me. My first question is related to Baron, and it would be interesting to know when you were doing your due diligence on Baron if they had any significant impact on sales and earnings from the COVID-19. That's my first question. Second question is related to. Yeah, but I can take that immediately, Hampus. I mean, they are not exposed to COVID in the same way. So they are exposed to other segments. We are not really being fully transparent yet about what segments, but they are not exposed to the COVID segments. Let's put it like that. Super. Next is more, Peter, your sense for underlying activity in the market. We've heard some other cap goods companies reporting on improving demand in early cyclicals. We've heard something from Sandvik talking about their business. We heard ABB and also some positive signs in Europe. It would be interesting to hear your take on that given that you had earlier Erik talking about you being a bit cautious on your guidance. So I guess I'm coming back to that. Thanks. Yeah, that one. I mean, the order intake is better than sales if I put it like that. So we are moving in the right direction. But generally, if we say, especially in Sealing Solutions, if we get orders there, it's 3 months-6 months ahead of us before we do the sales. But if we solely look at the order book, it's going to get better. But of course, then we still have this uncertainty on inventory and the geopolitical situation overall, which could, let's say, create some extra cautiousness among a few of our customers. But I mean, we see the same. I mean, if you refer to that, we see the same that this is slowly improved demand. Order book is growing, but sales is not growing in the same speed as the sales is not growing in the same speed as the order book is improving. Fair enough. Thank you very much. The next question comes from Douglas Lindahl from DNB Markets. Please go ahead. Hello, gentlemen. I only had one question, actually, and circling back to the Baron acquisition. Given the importance that this company brings in terms of positive margin contribution, I would be curious to hear if you have any sort of updates on when more specifically we can expect this to be finalized. Obviously, you said before H1, but if you have any sort of updates, it would be hugely interesting to hear. Yeah, and I mean, we are moving forward on that, and we are more or less all approvals in place. We're waiting for some formal approvals, and that is kind of difficult. The indication is that it will be closed, let's say, well within this quarter. Let's put it like that. But I mean, it's still uncertainty since we're waiting for some how should we put it? So some formal approvals where we cannot control. So everything which is under our management, our control is in place, and we are still waiting once again for some formal approvals. Indication is that we're going to get it in the next few weeks, put it like that. But once again, I'll say something. And then, of course, it relates to the as you know, we need to close it at the month-end or a mid-month or something like that. So we are curiously looking at exactly the date when we're going to get it. If we then yeah. Yeah. But I guess we can't complain anymore. Okay. No, that's good. Thanks so much. The next question comes from Agnieszka Vilela from Nordea. Please go ahead. Perfect. Thank you. I missed the beginning to the call, so apologies if my question has been asked. But on Medical Solutions, you do expect to reach 20% margin after the Baron integration. But you can see that so far the business has been running at about 15% margin. And with Baron adding 30% sales to the division, it needs to run at significantly higher margins. So my question really is if you did quantify the exact EBITDA margin that Baron is doing right now? We are not yet the owners, and we don't really want to comment on that. But I mean, we understand that this is looking ambitious, but we have a firm plan how to get there with synergies, with the integration of Baron, and also with the kind of operational improvements in the running business. This is a combination of a few things, but that is a challenge that we have taken on and which we believe that we will conquer and that we will get to this 20%. I fully understand, Agnieszka, that there are some doubts on exactly how to get there, but yeah, the proof is in the pudding there, and we believe that we're going to show you, let's say, by the end of this year that we're going to get to this running rate of 20. Perfect. Yeah. I I don't know if I can comment anymore on that one because there are some synergies related to this as well, which has not yet been communicated. Understand. And then on the destocking of the division, when did it start, really, and when do you expect it to finish? We have been fairly late. I mean, I don't know. Of course, we know we're a little bit. But if you looked to other, let's say, our competitors, they were kind of exposed to this already, I think, two quarters away. So two quarters, it was the first one. I would say it was probably during the autumn of last year and through the winter. So we haven't had any impact until very recently, basically. We've been holding up, call it some project sales or some special sales within Medical. Since they are dropping away now, we are fully exposed to this inventory drop. So I think we've been overperforming, if I may say, for one or two quarters longer than most of our competitors. And this is now hitting us in this quarter. And we are not surprised in a way, if I may say. We knew that it was coming, and there are a few individual cases which are impacting us quite a lot. So it's not kind of an overall drop of 10%. It's more linked to individual cases, which is then hitting us a little bit harder. But of course, I mean, that's it, I guess. I don't know, Christofer, you are looking into this a lot as well. I don't know if you want to comment. Yeah. Well, to answer your question, we see the same development year-on-year in Q2, and then we see an improvement, substantial improvement in the second half of the year. So the underlying order book is good. I mean, then the new project inflow is good. The new call-offs on new projects are good. But this is more, let's say, running sizable customers that we have, which has indicated that they will not order anything before we're going into the second part of the year. So that is kind of the impact that we see. Great. Thank you. And then my last question is on your capital allocation. What priorities do you have during 2024? No, no. I mean, it's the same as before. We're going to continue to invest on a fairly high level. We are improving both our geographical balance. But you know we are creating new capacity in India. We're building two new factories in Vietnam, expanding in China, and at the same time, of course, also improving our footprint in Europe and improving our footprint in North America. So we are going to continue to run CapEx in a good way. And now also with Baron, with Medical, we're also adding a plant in Costa Rica. So CapEx is going to be high, continue on a relatively high level from, for instance, historical norms for us. With regards to acquisitions, we are still scouting for acquisitions. We are targeting primarily bolt-on acquisitions. Once again, we've been commenting this Baron acquisition, which is kind of a platform acquisition for us, which is different than the others. So hopefully, you will continue to see bolt-on acquisitions, which is highly synergistic for us. We're doing that, as said before, with a focus on this speedboat segment and, let's say, very close to the core of existing business in a way. So we are not looking for any new areas outside of our current scope. But we do, in some time, we have intensified the actions in order to kind of get a few of these cases executed. Also to note that we still feel that that kind of valuation is still quite attractive. Of course, there is always competition on the acquisitions, but we don't really see the competition increasing at the moment. So we try to get the ones done, which is available and fits us. So you're going to see us investing high on, let's say, capital, CapEx, and you're also going to continue us to see making acquisitions. I mean, once again, the Baron one and this kind of size, don't expect that to happen. It's going to be smaller acquisitions in the, yeah, what do you say, tens of millions of euros. I mean, that is really the size that we're primarily looking at at the moment. Yeah. Lastly, on share buybacks, is there any limit that you are setting yourself on repurchases? No. Then we continue on the same. We have the AGM here in an hour or two, and we're going to ask for a new mandate to continue in the same way for another year, which is the run rate is then going to continue to be SEK 1 billion second quarter, roughly. There is no change in that one. We feel that we can manage this pace of buyback well while still maintaining, let's say, a strong balance sheet and still having cash to execute both the increased CapEx levels and also to continue to execute on this, if I may call it, smaller bolt-on acquisitions. Perfect. Thank you, Peter. There are no more questions at this time, so I hand the conference back to the speakers for any closing comments. Okay. Thank you. Thanks to all of you for showing interest in Trelleborg. And as usual, Christofer is very prepared to support you further with any other questions. And Fredrik and myself, we will be on roadshows in the next few days. So some of you, we'll probably meet. And if you want to meet us, then please make contact, and we are eager to support you to get a better grip of the Trelleborg story. Thanks again, and see you or speak to you soon again.