Ladies and gentlemen, thank you all for standing by, welcome to today's presentation, Q4 report for 2020. At this time, all participants line will be on a listen-only mode. There will be a presentation followed by question-and-answer session. At which time should you wish to ask a question, you will need to press R and one on the telephone keypad and wait for your name to be announced. Just to advise you all that this conference is being recorded today, Thursday, the 11th of February 2021. Without any further delay, I would like to hand the conference over to our speaker today, Mr. Thomas Widstrand. Please go ahead, sir. Thank you, thank you all for listening in. I will try as usual to present on our latest quarter, what has happened and what perhaps not has happened also for Troax Group AB. As usual, I will follow the short presentation that we normally are presenting, which you will find on our own homepage, on the Troax homepage. You will find it under Investors. On Investors, you will then find Presentations, and on the Presentations, hopefully, you will find the presentation for the fourth quarter dated of today. I'll start with the introduction, talking about that as you know, Troax is the world leading company, and our vision is to help the world, so to speak, to become more safe. We have a motto, which is called Safer Worldwide. Besides having safety in every aspect, you probably remember that if you go to page three, that we are working a lot with three different segments. The first one is called Machine Guarding, which is the biggest one, approximately 60%, 65%. As you can see from the picture, those of you who are looking into that picture, some of you have seen it before. It's normally then something connected with different production lines, where we of course safeguard people who are working down in this sort of environment, making, in other words, a hazardous or a possible hazardous environment into a safe one. I go to the next page, talking briefly about the second segment that we have, which is called Warehouse Partitioning. It's also, of course, safe handling, but it's more than obviously from a warehouse point of view, where you also can have a lot of moving objects like you have in this picture here. You have a lot of forklift trucks or other things, but it's normally then based on some sort of warehouse where you have pallet racks or some sort of the basis of it. A variant of this I will come to in a second called an automated warehouse. As said, this is maybe 20%, 25% of our turnover. Last and actually least, but nevertheless quite important for us is what we call property protection and is more of what I call static safety. You don't take care of people who are working in this environment, but you take care of your own bicycles, luggage, whatever kind of gear that you want protected from burglars. There are different sort of burglar, let's say, levels that can withstand burglars, which you can buy from us. Basically, you're talking about a cage then which is normally installed in a cellar or in some cases in the attic. We call it storage solutions then in addition to property protection. We're talking here about some 15% of our turnover, something like that. I come to what we don't have yet, at least as a segment. It's a combination of what we're doing in the machine guarding and also in the warehouse part, and we call it automated warehouse. Actually, in the last two, three years, this is the one which has been growing most organically. It's, of course, combined by a lot of the drive coming from e-commerce. This was existing long before COVID was perhaps invented, but it of course being even stressed even more now with COVID because of obvious change of purchasing behavior from people like you and me who today are buying a lot of the goods that we used to buy in stores, we buy today through the e-commerce channel. This is then something which for us is quite important, and especially in the fourth quarter of last year, we got a lot of very good, interesting orders in this sector. A little bit about Troax in brief. For 2020 then, if you look at the lower left corner of the next page, we had quite good orders received, especially then in the fourth quarter, which I will come to in a second. Totally despite the problems we've been having during 2020 with the COVID effects, we got an organic growth of 6%, which we think is quite a good achievement. Whereas on the sales side, it was not on that level, so we actually received a 3% decrease, which of course is nothing which we should be proud of. I think that based on the general development in the world with COVID and customers not working or at least postponing investments, this is not actually a bad development at all. Due to the fact then that we had a little bit lower sales for 2020, this also created a slightly lower operating profit. I wouldn't say that there are anything extraordinary in this. It's just combined with that the volumes then didn't increase in the way where, of course, we hope it to do. That means also that operating margin is slightly lower than last year, coming up to a level of almost 19% or 18.8% to be exact. Earnings per share slightly lower in the same way as last year, whereas then the dividend, the proposal to the annual general meeting is, of course, to increase that substantially since, as you might remember, we took a rather cautious approach to dividend during 2020 and paid out 50% of what is normally our goal. It was 50% of the ordinary 50% we have as a target. This proposal is now 50% of the net profit for 2020. If you go to the right, you see then the different sales for the different regions. There's not a lot that has changed during this year. You can say that the new markets are going in the right way, albeit still on small figures, and it's probably where we still need a lot of work in the coming years. Otherwise, it was relatively stable during the year compared with the year before. Again, if you look at them, as I said, this division between the different segments, you see that for 2020, machine guarding was 65%, property protection 14%, and warehouse partitioning 21%. Slight change, but not a lot. Next page, we have also included on the full year 2020, you see that we are normally a growth company. We've had quite good growth organically over many years. In the last years, it's been a little bit of a, I would say, weaker market development, which of course has certain impact also on us. We hope, of course, that when the COVID is over, or at least starting to get over with, we will come back to the organic growth that we are used to and that we also are aiming for obvious reasons. We still have a very good position in the value chain, and approximately 30% or a third of our people are working in sales. In this niche market, which is not a huge market, we talk about EUR 1 billion or something like that. We are the global market leader of what we call indoor perimeter protection, or in other words, mesh panel solutions. Going to the next page, we talk about the financial targets, and those of you who've been around before, you recognize it very well. We have not, as regards to sales growth, put up a specific figure, but we are saying that we should exceed the growth that the market is growing. Since we are saying that the market over a business cycle under normal circumstances should increase with 4%-6% per year, on top of that, we have a target of increasing our market share. We should have a figure of maybe something which has been similar to what we've been growing historically, which has been somewhere in the range of 8%-9%, depending on how you calculate it. For 2020, the organic growth in sales was now actually negative, but we still think that we've been taking some market share here and there since we believe that the total market has been going down more than this due to the obvious COVID influence. We had a slight positive influence on the M&A side in the last two months because we bought a company called Natom Logistic in Poland, which I will come back to, and that was consolidated from November one, 2020. Regarding profitability, our target is to have an operating margin in excess of 20%, and we are at 18.8%, so we are close, but not close enough. Obviously, we want to get in excess of that for the future. For the capital structure, we have quite a good balance sheet, I would say. We have a target of being below 2.5 in the relationship between net debt compared to EBITDA. We have at the end of 2020, including the new IFRS rules, a relationship of only 1.4, which shows that we have a rather stable situation, and this also includes then the purchase value of Natom to a big extent. I would say that this is, again, as I call it, a stable situation. Regarding dividend, we have suggested then 52% of the net profit last year, so we are following then the dividend policy as explained before. Going to next page, I want to introduce you a little bit then to some comments for Q4 and a few comments, of course, on the year also. In summary of the quarter four, you can say that it was a much more stable quarter. There were increases in many areas, especially then from order point of view, not so much the sales point of view. We did then this interesting acquisition in November. I think we've taken another step then towards then further organic growth with this kind of improvement. We reached then, nevertheless, a similar EBIT result and margin in quarter four of 2020, despite still some negative effects, of course, of the coronavirus. We still had a number of countries, maybe were not shut down during quarter four, but they were at least shut down to a certain extent, and this obviously had a certain effect then of the activity level generally in the market. Nevertheless, I would say there have been a good sales level, or you would probably say order levels in some markets. I would point out on what we call the new markets, which, for instance, includes China, where we have had some improvement actually during the year, and we have seen some improvement of the market activities, which is quite positive, even if, of course, they were probably the first to go into the COVID problems and the first to go out of the COVID problems. If that now is the case, that means also then that there are some possibilities also for other regions, of course, to come back to more market activities as soon as the COVID disappears or at least gets substantially improved. Generally speaking, in the market from the third quarter 2020, we have seen a continued reduction of the market activities, especially towards then, as we write here, the smaller and medium-sized customers. It's probably that the bigger customers, they've had their investment plans, and they've been trying to pursue this regardless of the COVID effects, at least what's been possible to do. I think in some cases, you could say that we have been, let's call it lucky because we've been able to continue then with a number of these investment projects, which of course, has had a healthy impact on our orders during the year. Earnings per share for the quarter was on the same level as last year. We can also go directly to the next issue. The improvement processes, as we call it, has been continuing also in quarter four. The result for the whole year of 2020 has now been substantially improved compared to 2019, even if it's still not on to the level where we think it can be. We still have some upside, of course, during 2021 to reach an even improved figure, but it's been quite improved during 2020. Regarding working capital, it's on the expected level. The inventory part is a little bit increased to handle both the negative effects of the coronavirus, meaning that lead times are longer, especially than on the raw material side. To a certain extent, also, we've had to increase the inventory because of the effect of the Brexit implications, which we now see in quarter one. We have been preparing for that by increasing the inventory to a certain extent. Generally speaking, regarding investments, they are working according to plan, and the biggest part of the already communicated investments are in principle finalized or at least in the finalization phase. I would say that there are nothing to communicate there about, which is not more or less following the plans. A part of this investment is, of course, what we call a new factory in Italy, a bit outside of Milan, and it's continuing to run very well. They've done quite a good job during 2020 to not only to get started to run in a quite difficult period when there was COVID all over the place in Italy, but we've been continuing to run that in an improved way during the year. I would say that they are on a very good standard now when we are exiting 2020. The factory in Chicago, which we got when we bought Folding Guard, is also improving the efficiency in output, but they have a little bit more been hit by some absence due to corona in the fourth quarter, and also have had some problems with deliveries of steel, which a little bit has had some effect. Financially, I wouldn't say that that is too big, but we can see a certain impact of that in the fourth quarter. The ongoing story about automotive is the same. Unfortunately, it's continuing to be a weak segment, and it's been now so for quite a long time. We've had some small orders, and I think we're expecting that it will improve somewhat during 2021, but don't think it will start to take off next quarter, but it would take some time. I said it already last year, and I probably had to realize then that COVID has had, of course, a deteriorating effect on this. Right now we see that automotive and demand for automotive vehicles are increasing. There should be a potential for us to come back to good orders in these segments. As I said, not maybe in the next quarter, but over the end of 2021 and certainly into 2022. When we then talk about the good things in the fourth quarter, I would say that it is mainly coming from what we call the automated warehouse business, which, as I said, is a combination of products which are both supplied from what we call machine guarding and also from the warehouse part. It is perhaps more from a customer point of view, seen to be more connected than with the moving objects, which we normally call machine guarding. That has been very good during the fourth quarter. We have had a number of both smaller but mainly bigger orders from very renowned and important customers that we have been working with for quite a long time. These are projects which have been going on for a long time. I think that the COVID, if anything, will help further in this longer term, but not directly, I think, has had an impact on this during the fourth quarter. It's clearly then, as I said, connected with the changing of the purchasing and also distribution pattern that the customers are investing a lot more heavily than in trying to make the warehouse activities with pick and pack and distribution much more automated compared with before. Again, this has been very positive in the fourth quarter, and I don't think that we might expect this kind of order intake every quarter in the coming quarters. Without giving any gloomy forecast in any way, I would just like to say that this kind of development you can't expect every quarter. I jump to Poland where we acquired this Natom Logistic and was acquired as per 1st of November. They're not really a competitor of us. I would say that they had more of, as we write here, a complementary product range to us, and they will actually be utilized as some sort of manufacturing unit long term. We see that the product ranges we sold will be sold both through the existing Natom distribution channel, which is mainly connected with European customers, but also will, of course, be utilized through the Troax sales units. We will see how fast that will go, but it's a good opportunity for further growth. The turnover of this acquisition was approximately EUR 20 million. There were 180, 190 employees, something like this, split over two physical units in the vicinity, so to speak, of Poznań in the western part of Poland. I go to the next page. You see the results which you probably have looked into before, and I've talked a little bit about it before. We've had then, as we said, very good increase of the order intake. If you exclude then the acquired company, Natom, we are still on a rather healthy 22%, I think, increase of orders. It was nevertheless, regardless of the acquisition, a very good order intake. Sales was on more or less same level as last year, the same with gross profit and margin. I already got a question on the margin, and I would say that it's quite a stable development. We've had good utilization in most of our factories, which of course means that we get good coverage of fixed costs. Of course, that will have a certain positive impact on the gross margin. Operating margin in the quarter was more or less similar to last year, slightly lower, 19.2% compared to 19.6%. As you see in the middle there, you see then the full year of 12 months, 2020, where we reached then in sales SEK 163 million and SEK 178 million in orders and the operating profit of SEK 31 million, which unfortunately is slightly lower than last year. I think we continue to the next page. You see then the regional development of the order intake and sales. As I normally say, don't take too much or don't read in too much of the figures for one single quarter, because I think you have to look at Troax a little bit longer period to draw any conclusions. Nevertheless, you can see here that was a very strong order intake, especially in United Kingdom and in North America. I would say that especially in U.K., it's of course connected a lot with the e-commerce business, whereas in North America it's not only e-commerce, it's also connected partly actually there with automotive, but also in some cases with some other customer segments. It's very strong there in this quarter. Also in the new markets, we've had slight improvement even, of course, as you see, the figures are on a substantially lower level than the others. A bit weak in Continental Europe, which I would say partly is connected with automotive, but of course also connected to that, especially in South Europe, you will see then that the market activity were a bit lower in quarter four, primarily, I would say, because of the COVID situation. Totally 22% up and then we have the acquisition. Technically then or mathematically, we reach an order intake, which is, I would say, quite extraordinary figure of + 39% compared with the year before. On the sales side, you don't have this effect. You see more than the effect of the COVID on the normal sales. It's a much more, I would say, normal market development figure you see here where a -6% in sales, which of course influenced then by the lower sales in the Nordic region and U.K., as well as actually in North America and positive in new markets. Since we have a very good order book, so to speak, to take us into the quarter one of 2021, these figures will of course be improved also in sales invoice, mainly in quarter one, but also partly spilling over into quarter two with what we know today. If you look at the whole year of 2020, the 12 months, you can then see that there is a certain reduction in Continental Europe. I would say it's the same conclusion as I told you before. Nordic region, very stable in orders. U.K. and North American orders, very strong and actually also in new markets we are improving quite good, at least from a percentage point of view. Whereas in sales it's still so that with exclusion then of new markets and North America, I would say that this shows more than how the market development has been developing during 2020. All right. That was a try to explain a little bit the regional development. We come to some sort of what we call conclusion. Afterwards, as usual, after I've gone through a few more slides, you will have the opportunity, of course, as normal, to put questions, but there's a few more conclusions. I would like to comment again, it was a rather stable market in the fourth quarter, especially when compared with the expectations that we had during the COVID quarter of quarter two. I wouldn't say it was a good quarter from a market point of view, far from it, but I think it was rather stable. In a stable market, it's of course easier to pursue different activities. Again, as I already said, especially small and midsize customers are a little bit waiting, I think, to commit to new orders. Continued low demand from automotive, On the other hand, was very positive in the quarter from what we call the automated warehouse business. In North America, both the Troax Inc., which is the Troax brand, and also the Folding Guard brand were continuing to develop well, and showed a continued improved result, both of them. There's been a stable, but a somewhat lower activity in Continental Europe and Norway compared to the same quarter last year, but very strong, as I said, and was noted, especially in Great Britain and North America. All factories in the group, I would say, were developing well, maybe with a small deviation somewhere, and there were obviously no support whatsoever anywhere in this quarter. We did the acquisition, as I said, 1st of November, and I would say that in total, it was a stable development with a similar result as in 2019. I go to the next page, where you will find a few description of this Natom for those of you who have not listened to me regarding this before. I would say that this SEK 20 million is split up in these kind of markets, which you see here on the map, as primarily what we called previously Western European countries, with the addition, of course, of Poland. A major part of their sales is actually outside of Poland, and we think it's going to continue like that for the coming years. They are quite a good provider of e-commerce, let's say, products. Maybe the products are not that advanced. We're talking about mesh shelves and rack protectors and barriers of different sorts, they are done in a very good way, very efficiently, cost-efficient, with a very good design. For the customers, I think that they have the reason why they bought a lot from Natom, and hopefully will continue to buy, is that it's a good combination of the specification, the safety, the price, the delivery terms, and the accessibility, which of course, hopefully, will be even better now when the Troax sales channel will be made available to the Natom products. The products that you see here on these photos are mainly the ones that Natom is producing. Let's say the core of their production. Growth factors for us, you heard it before, regardless of COVID, it's the increased industrial automation, and regardless, I would say, when COVID will go out, the automation will continue. If anything, I think it will increase even further. I'm quite positive over this. The next one is number three on this list, is growth in e-commerce, which I think will remain for a number of years. We have not seen the peak of this yet. The other things which are still having a good effect on the market, like onshoring of manufacturing, taking home manufacturing to Europe or United States from other countries, safety awareness and regulation, are also to a certain extent important. If you compare with industrial automation and the growth in e-commerce, they are far behind, so to speak, in importance. In this market, you've seen before, we haven't really been able to evaluate if there's been any major changes during 2020. These figures you have seen before, and I think that our judgment so far is that there has not been a big change in this during 2020. There might have been small here and there since I'm claiming that Troax has continued to take some market share. Generally speaking, we still think we have some 25% market share in Europe and some maybe 15% worldwide. An assessment, next page, of the competitive situation. I won't go through this because I don't think it has changed a lot during 2020. On the production units, we've added, as you see to the right, we've added in Poland, and they have a capacity which is utilized to a rather high extent. We do intend to increase the investment there to a certain extent, just like we've been doing for some time in the Troax and Natom and Folding Guard plants in order to increase the machine capacity. That means that there will be a continuous flow of some investment going also into the manufacturing in Poland. Otherwise, not a lot has changed in this picture compared to what we have shown you before. In our group, obviously, work together for a safer world and for a safer tomorrow. Talking about safer tomorrow, what we focus on is, of course, a lot about the environment and also other things connected with ESG. We work a lot, just to pick out a few, a lot with climate compensation program for the transportations. We try to continuously decrease the energy consumption, at least 2% per year, and we are quite happy to say we reached that in the main unit in Sweden for 2020. We will continue to work with this. To go a little bit further down, I think the main part, otherwise, which has become more and more clear for us is that we have to work even more with the purchase of steel from recycled steel. We're saying we should have minimum 30%. That's absolutely something where we have to increase the target in the years to come, because we see when we calculate the impact on the, for instance, the CO2, that what our products and our manufacturing is doing, the major part is coming from the purchased steel. That's, of course, then something which we, to a certain extent, can influence. It will probably take some time for us to get it where we want to. Of course, we are also proud to say that in the new investment we did in the Italian factory starting one year ago, we've invested also solar panels on the roof. Actually 50% approximately are covered in the energy consumption of these solar panels. We're working on the innovation center with R&D, next page, and I will show you very briefly, very quickly, just a few examples of that which was introduced last year, and that was what we call a Smart Post. Just one example where we have integrated control and push buttons, which of course, makes it not only a more stylish and nice design for customers who doesn't want to have a lot of cables running around, but it's also more, I would say, secure installation for the customers. Next one is what we call a Smart Splice. In some cases where we have to build, and the fence is higher up, then, of course, we have to extend both the panels and the post, and we have done that, I would say, clever solution so that when we can do some splicing for tall post. We have actually a patent pending for this, which simplifies high assembly, and that is very good for the customer because it's significantly faster, easier, and stronger. During, I think, fourth quarter also, we released a complete new Rapid Fix, which is one of our connectors for our guarding system, which especially allows quick maintenance access. This not only is then introduced in such a way where it increases then the assembly, or rather decreases the assembly time for the customer, but it also increases then the impact value when we do testing. It's a stronger assembly. It will be a stronger assembly, and it will also be quicker compared to before. This is, I would say, quite a good achievement. We continue to be certified in order for the processes to be not only that Troax has it a certain way. We say also then that what we release is being certified so that the customer can trust that we are not failing with this, and I think that is a quite a good thing for the customers, that they don't have to rely only on Troax. Next page. I'm coming to the end now. For those of you who want to put questions, you see the main factory, still main factory in Sweden, where we have done a lot of extensions in the last years, and we put in new lines, and are also now working with improving the flow as regards the internal transport and picking and packing. Right now, we have a lot of snow here, but otherwise, it looks similar to what you see on the page. We have been the original since 1955, and we intend to keep the flag high towards the customer, and utilize, of course, the strengths that we have all over the world. With this, I want to end by saying, we continue to make your world safe. With that, I would like to introduce then, I go back to the operator and ask him then to introduce you to put some questions to me. Thank you. Yes. Thank you. To ask a question, you need to press star and one on your telephone keypad and wait for it to be announced. Should you wish to cancel it, you would press the pound or hash key. Once again, to ask a question, please press star and one. Got a couple of questions that came in. First question comes from the line of Kenneth Toll. The line is now open. Yes, go ahead. Yeah, thank you. I was surprised to see the very strong order intake in the fourth quarter, which is nice of course. You said that quite a lot of those orders came for automated warehouses. I was wondering when deliveries of those are expected. I mean, generally, you have a shorter order time, but for those, you usually have somewhat longer, is it the first half year or? It's basically, Kenneth, it's first half year. I would say that what we have got in so far by the end of December, the big chunk of that will be delivered from March on. March, April, May, I would say, will be the heavy months from invoicing and delivering point of view. Okay. The steel prices are going up quite sharply right now. Right. Historically, you have managed to increase your prices to compensate for this. Is that the plan this time as well? It's absolutely so. We are right now increasing prices, unfortunately. Unfortunately, meaning that there is a lot of turbulence in the market, so it's difficult to assess what the end price increase has to be. We are right now, during February, increasing our pricing in order to compensate for the steel price. It's so turbulent that we don't exactly know what's going to happen in the second quarter. You don't know if we have to go out in the second quarter with maybe another change of pricing. We are doing right now the compensation in the same way as we have been doing before. Of course, it is so that just because we are increasing prices right now, it still means, of course, that the orders which were in the backlog, they will come with a slightly lower margin of obvious reasons, because we can't go back and renegotiate already taken orders. Great. For the Natom acquisition, the Troax business is depending very much upon a direct sales model. Correct. Natom, do they have a similar model or do they rely more on distribution or? Not really distribution. They have a similar model in the way that they don't have so many salesmen, obviously, but they do go direct to customers. I think the customers that we're talking about, which are mainly bigger customers in the warehouse integration field, I think they value then the direct contact with the producer like Natom. We intend to continue with that. Over time you might sort of trim the product range that they offer and combine it more with your products. Yeah. Correct. Yes, absolutely. Yeah. Okay, great. Your balance sheet is still very strong even though you paid for this acquisition in Q4. If there were another acquisition opportunity coming by during 2021, do you think you would be prepared to act on that one? Yes, I would say that the integration of Natom is not considered at all to be in the same sort of, let's say, difficulties like we experienced with Folding Guard. This is much more of an addition to what we were already doing. We don't expect this kind of long stretched improvement time. From that respect, we are clearly prepared to do it. As you already said, from a financial point of view, we are fully prepared to do that. If something interesting comes up, we are surely interested to pursue that. Okay, great. Thanks a lot. Thanks, Kenneth. I think your next question comes from the line of Herman Eriksson. Please go ahead. Hi, Thomas. Hi. Thank you for the presentation. I just have some short questions regarding the strong order intake. First of all, can you say anything about the customers behind the strong demand in e-commerce? Also, can we expect higher order intake going forward, or do you expect it will be more in line with your historical numbers? I'm not giving out any forecast, to answer your question number two, so to speak, we already indicated that we think that the order level in the fourth quarter or perhaps you shouldn't call it extraordinary, but it's on a very high level that you can't expect to get every quarter. In other words, I'm saying that there will be, I would say, during 2021, under normal conditions, there will be a more normal order development. If nothing like this occurs again, which might happen. You should calculate with a more normal order intake, I think, in the coming quarters. Regarding the first question with customers, in some cases it's not possible for us to give this out externally. We have promised to keep this secret. I can say that we are working with most of the world's biggest customers in this respect. You will all know about them. You read about them in the newspapers. I guess that's what I can say at this very moment. Great. Thank you. Just looking at the income statement, you can see that your admin expenses have increased quite a lot during the quarter. I was just wondering, is all of this related to the acquisition of Natom, or is there something else in those numbers? There are a few other things in those numbers. You're absolutely right with this. We are investing, for instance, in digitalization to a certain extent, and we continue to do that, and there are, of course, some acquisition costs for Natom, and then you have Natom in itself. There are a few things like that. I would say that also from this costing in the fourth quarter, if you now want to calculate for the future, these are a little bit higher, I would say, and not representing perhaps a normal development in administrative costs over a full year. Great. Thank you very much. That's all for me. Thank you. Thank you. Your next question comes from the line of John Heitmar. Please go ahead. Hello, Thomas. John here. Hope you can hear me. Hi, John. I can hear you well. Thank you. Super. I was just wondering around the order intake that you just mentioned was a bit high and not supposed to be expected each quarter, but were those orders on a few number of customers, perhaps one or two big orders, or were they spread out across several? They were spread out both among several customers and within those several customers, they were also spread out among several projects. It's not one or two really big projects. It's more like I would say for us it's quite substantial amounts. We're talking here about projects of three, four, EUR 500,000, which for us is quite big. As you can understand, we talk about a number of those projects, of course, to pile up to this kind of order intake that we're showing now for the fourth quarter. Okay. Given that the orders are a bit bigger than usual, I guess that they will come with a bit lower gross margin, but perhaps the same EBIT margin as on group level or perhaps even better. Do you care to comment any on the margins level there? Right now it's a bit difficult since we have this issue, as we mentioned before, on the steel pricing. It's a bit difficult to see how this will influence now during Q1. I would say that generally speaking, not referring to what might come out in Q1, but otherwise, you're right, John, that you might expect a slightly lower gross margin. Since the sales costs are also a little bit lower, we don't expect any major negative figures when you come down to the EBIT level. When you get these type of bigger orders, you will be able to keep the EBIT margin level more or less on the normal average, due to the lower SG&A in relation to the sales. That is how we are, let's say, planning it. Yes, correct. Super. It seems like orders were good, and you mentioned warehousing in particular. Can you say anything about the auto industry, in addition to what you wrote in the report, but is anything happening in that industry? Yes. We see now that they've come over a lot of the main problems they had in last year with a lot of restructuring and layoffs of people, et cetera. Now they look forward to improvement, or starting to do a lot of CapExes again, because there's a need for a lot of CapExes. We saw during Q4 also that the demand and the purchase of cars were starting to get up again. I think that the industry there, even if it's still rather squeezed, I would say from a CapEx point of view, are seeing some sort of light in the tunnel, at least as far as we can see from our point of view. I would expect that the CapExes and the investments from them will continue to grow from now on, even if, as I said, for us, I don't expect maybe major orders coming in during the first half year, at least. A final one on the auto industry. Do you see any signs of that the automakers are even more working on building cars on the same platforms, and then perhaps they can increase the number of models, but stay on the same production line, and that perhaps would lead to lower demand for your fences as they don't need to change them as much? Do you think the normal pattern will come back as soon as they start investing in new production lines? I think in itself, the normal pattern will come back, but perhaps not to the same extent as before, because obviously a bigger percentage of what's coming tomorrow will be electrical cars or at least hybrid cars, and those will not demand, to the same extent, safety in the same way as the traditional engine, because there are a lot less moving parts. There will be a slight reduction, I would say, in the demand, generally speaking, for our type of product because of this change in, let's say, customer demand, but it's not a significant change. Okay, good. Thank you. That's all. Thank you. Thank you. Next question comes from the line of Adolf Baraveri. The line is now open. Please go ahead, sir. Hi, Adolf. Hello, Thomas. How are you? Hi. I'm fine. Thank you. Just a question. It will be a follow-up from John's question on the auto sector. Can you just remind us what was the size of the market when it was at the top for you? Something like, I expect it's like 16%, 17%. It was in 2015, it was at the top because that's when we went to the stock exchange. It was above 30% annual turnover, which was coming from automotive. Last, not last year, 2019, we will recalculate this figure now for the annual report, for 2019, we said officially it was between 10% and 15%, my guess is that for 2020, it will be an even lower figure. Okay. Then just a comment regarding Folding Guard and the spread between Folding Guard and Troax margin. Can you give us a little bit more details on it? It's still clearly below what Troax is, but as I said, it has substantially improved compared with before. It's somewhere in between, if you see my point. Yeah. Does it mean that you need more volume from the automotive industry to get back to- It's of course quite helpful, but I would say that with the continuous improvement we are still working on, we will be able also with the present volume or at least a normal volume development to further increase the profitability during 2021. We still won't come up to the Troax level because there are some structural differences between Folding Guard and Troax, if I generalize. Nevertheless, there is a clear potential of further improvement during 2021, regardless of automotive or not. Okay. Just a final question on China. I noticed that you were slightly positive on China, even if it's still low volumes. Yes. Is it European players are asking you to work with them, or is it more local players, and then you see that you are taking market share from small local players? It's a very good question. Unfortunately, so it's still mainly European or international players, which is the core of our business in China. We still have a much too little turnover into the Chinese distribution network. They still think that our products are too good, and obviously indirectly they're saying it's too expensive. I think that's still a matter in China. Yeah. Great. Thank you for that. Bye. Thank you, Adolf. Thank you. No further question at this time. Please continue, sir. Okay. Thank you very much. I appreciate your questions, et cetera. We like to hear that you're of course interested. With this, I'd like to end this and say that I look forward to talk to you or together with you in April, where we have the annual general meeting, and in connection with that, we will have this kind of telephone conversation again. I think it's the 26th of April or something like that. Thank you very much for listening in and for your interest. Take care all of you. Looking forward to see you again in April. Bye-bye. Thank you. That is the end of the conference for today, sir. Please stand by, participants, you may all disconnect. Thank you all for joining. Stay safe, everyone.