Beijer Ref AB (publ)

Welcome everyone.

Christopher and Joel here on a beautiful summer day. Looking forward to present the result. And then as usual, we'll finish up with some Q&A at the end of that presentation. So starting a little bit of summary of the quarter. Of course, we like the heading of another record quarter. And as you know, when we put all of our business together Q2, driven by EMEA is the strongest quarter of the year. So we had a 6% growth of sales, about 1% organic of that 6%, the rest acquisitions. And also, as we stated a little bit before, we're now coming to the end of very strong comms from Eastern Europe, driven by some inventory issues in Eastern Europe last year. So as we move forward now to Q3 and Q4, that'll be fading off. And that's also why we stated we just faced Europe underlying organic growth was around 5%. So we see some good, good trends in Eastern Europe, driven by some inventory issues in Eastern Europe last year. So as we move forward, as I noted, we will continue and accelerate growth in our OEM business. driven by EMEA, but also very good activities around in APAC in Southeast Asia. We see more and more trends moving over to natural refrigerants and a lot of activities there. And EMEA, we see an accelerated transition into the natural refrigerants. And part of that is that January 1st quota levels in the EU is going to be up another 50%. And also you see a lot of trends on the natural refrigerants on the heating side through our FENERGY platform. So record backlogs, good growth in the OEM side, and we see that continue as we move through the rest of the year. HVAC, negative affected by Eastern Europe, otherwise positive. And we also see trends now in Europe of picking up demand in countries like France, Netherlands, UK and other markets. So pretty positive on the HVAC development as we move through the year. The refrigeration stable 3%, so solid quarter on the industrial and commercial refrigeration side. Moving over a little bit to me as we talked about, we would say good underlying organic growth in the platform. We see good activities across the board. As I said, Nordics positive, Central Europe positive, Southern Europe positive. And we see that trend moving in with good backlogs on the HVAC side as we move into the second half of the year. So, positive on EMEA as Eastern Europe is fading away and Q3 will have a good development as we move through the year, both driven by HVAC side, but also on the OEM side, as we mentioned before. And also I would say a good backlog. And as we stay there on this slide, both are two key platforms in OEM, Fenergy and SM Free having a record order intake and record backlogs to move through the year. So we see a lot of activities on the OEM segment, And also, of course, a very strong quarter for them on the sales side. Margins at good levels. We still are producing at record levels for Bayer Ref here in Q2. So we continue to be happy with the margin side in EMEA. So all in all, very solid quarter in EMEA. And as I stated before, it looks positive. I was moving to the rest of the year in the EMEA division for us. So very happy about that. You move into APAC, APAC continues to deliver a solid development, continue to be driven by Australia and rest of Asia. Also active in the OM segment, it's very happy. A lot of these regions don't have regulation, but still looking at transitioning to natural refrigerants. So they continue to do a very good job in those areas. And we'll continue to invest quite a lot of building up sales training centers around Southeast Asia. We have more activities in a lot of countries. South Korea is mentioned here, China, Thailand, India. So quite a lot of activities here that we believe long term will also start driving more growth in this region as step by step they start moving into more of OEM type solution for us. Margin solid all in all Q2 is a smaller quarter. It's more a winter quarter out in Australia and New Zealand. So of course their season starts ramping up at the end of Q3 moving into Q4. So another good solid development in our APAC region for the quarterback. You're moving into the U.S., minus 3% organic. It was kind of a messy quarter in the U.S., to be very frank. It started off with some bad weather and rain in April, so the season got started late. Then we also had some announcement on... on pricing and different type of customs from Mexico where a lot of equipment is manufactured for OEM. So we first had sharp price increases, then the announcement were pulled back and then price decreases and et cetera. So for us as a distributor, it was a very messy May to align with these and our exclusive OEM went first with price increases then realigned it. So looking at more clean June and July was pretty good and nice growth in there. So we'll keep in track of that. We believe the pricing issues are behind us. But a little bit of a messy quarter to start off April, May, but strong June and a good development in July. Margin solid. If you adjust for dilution, continue to develop good margins. Nice acquisition and aim distribution. And we do continue to have a nice pipeline expecting to close a nice deal here in the next couple of weeks as well. That's very strategic for the US. All in all, quite positive. As I mentioned before, we don't see any big trends in the market shifting. We're still waiting for higher activity in the housing market. But in the meantime, we continue to develop well and stable in the US in the aftermarket replacement repair. I think worth mentioning what's going extremely well in the US is our private label. Expansion now moved in to almost 90 over 130 branches. We're going to continue to expand the portfolio and we'll continue to grow at double high, high double digit levels of this and we expect this to continue. So it's a very nice added part of our portfolio in the US. And also, as we move into this acquisition, a big driver to expand their sales and margin to through this platform. So we continue to expand in the US and we expect expect this to continue. If you summarize the quarter, sales growth of 6%, organic one, EBTA of 5%, EPS changed 5%. So an okay quarter, but a little bit more positive as we move into the rest of the year, especially in our MEA platform that we expect to see pretty good growth. That should also accelerate our numbers in this type of slide as we move into the rest of the year next year. With that, I'll hand over to Joel.

All right. Thank you, Christopher. Good morning, everyone. As always, straight into our EBIT, which is up 5% compared to last year. As mentioned, the FX translation effect that has been substantial now for a number of quarters have now almost finally faded fully. And on a currency neutral basis, our Q2 EBIT is up 6%. Financial net continues to develop well on the back of our new financing structure. We report a financial net here in the quarter of 122 million, which is 5 million below last year, despite the higher net debt position. We did have some favorable FX effects in the financial net compared to last year, but adjusted for that, we are basically on par with last year. Tax line 285 million, effective tax rate of 25% in line with last year. So all in all, net profit of 834 million, 5% higher than last year. So, moving over to EPS, 1.63 in the quarter, increase of 5%. Year to date, we are at 3%, but as you remember from Q1, we had some relatively tough FX headwind, and on a currency neutral basis, our EPS is up 5%. So cash flow, as you know, Q2 is also a quarter where we continue to build working capital. We did however deliver an operational cash flow in Q2 of almost 300 million. Yes, cash flow in Q2 was lower compared to last year, but it was driven almost exclusively by a more back-ended build-up of accounts receivable this year compared to in Q2 last year, where trading faded a little bit differently in individual months in the quarter. Next slide here, as you see, continue to deliver positive cash flow in our seasonally weaker first half of the year. And now we are entering the more cash generated quarters where we have a rolling 12 months operating cash flow of four billion here so far. Leverage net debt increased by approximately a billion here in the quarter on the back of M&A activity and distribution to shareholders. Our leverage ratio here sits at 2.16 which is 0.3 turns above Q1 and also above Q2 last year. And as I said, we are now entering the seasonally much stronger cash flow generating quarters and we are in a very good position to continue to execute on our M&A pipeline. So with that, I'll hand back over to Christopher. Chris, can't hear you.