Cavotec Group AB

and welcome to Cavitec's second quarter presentation. I am David Pagels, the CEO of Cavitec, and I'm here today together with, as usual, Joakim Wahlqvist, Cavitec's CFO.

So let me start with a short introduction to Cavitec, as usual.

Cavitech has close to 50 years of experience and next year we will actually celebrate our 50 years anniversary. Over those 50 years Cavitech has built a strong position as a leading cleantech company with a global presence. Our offering consists of the design and delivery of solutions to electrify ports, vessels and other industrial applications, heavy duty vehicles, that are used, for example, for the mining industry. Cavitec's largest product groups are shore power systems, motorized reels, crane electrification, and of course, automatic mooring systems. Our most important competitive advantage is that our solutions and our services contribute to the decarbonization of ports and terminals, as well as for vessels and ships, and of course heavy duty vehicles. A significant asset for us is our large installed base in over 80 countries. The installed base gives us a well established possibility to have good relations with our customers, good reference cases and also an important potential to continue to grow our important service business. Let's turn to the next slide and the mega trend that actually drives our market. The mega trends that I just mentioned that drive our market are the urgent need to reduce the greenhouse gases and also noise in critical infrastructures, such as ports, container terminals, and of course on board vessels. Our solutions are also supporting the reduction of emissions and noise in different industrial environments, and in, of course, the heavy-duty vehicles that I just mentioned. These megatrends are supported by international and local domestic regulations that enforces operations of ports, terminals, vessels, and industrial operators to reduce emissions and noise, walking away from fossil fuel into electrified solutions, of course. We operate within market segments that are critical to society and where our solutions are needed to lower emissions and to create a better environment. Cavitech plays a significant role here with our solutions and our leading technologies that are proven, reliable, efficient, and safe, and therefore perfectly suited to meet our customers' requirements. At the beginning of July, I had the pleasure of cutting the ribbon of our new facility in Chennai in India. This new facility will serve the large and growing domestic market in India with a range of products, including various types of reels designed for both industrial as well as ports and maritime customers. It will also improve our supply chain and sourcing, enhancing our production capacity of shore power solutions and will function as a supply hub for our supporting operations across the entire globe. I would also like to mention here that was a very successful event with a lot of customers, suppliers invited to that inauguration. In addition to this one, I also want to mention a couple of contracts which were pressed during the second quarter. The first one covers deliveries of substantial number of power fits for shore power units, those containerized solutions, for the global shipping-in company. The order is worth about 5 million US dollars, and deliveries will start later this year. Another example is of our businesses of the sales field, where we have signed a two-year service contract with Port of Salala in Oman. Port of Salala is one of the leading ports in the region, and they have already supported We have already supported them with our equipment in the birds there with 32 of our more multi-units. With these new service agreements, we will contribute to Port of Saladala's efficiency and throughput by minimizing the downtime, ensuring the continuous operations of the essential and the operation of the port. Now let's turn to the next slide and let me say a few words of another important integration, which took place end of June. This is a picture from the integration of our more massive units at DP World in San Antonio in Chile, the largest multipurpose port in the country. I was there together with a big crowd and invited guests from DP World. This is a key event since this is the first MoorMaster unit we have installed in South America. We have MoorMaster units across the world, but in South America, this is the first installation. Our unique automated mooring solutions attracted a lot of interest in Chile, and the integration was attended by Chile's Minister of Transport and its locations, among others. At the integration, I had the chance to talk to the CEO of DP World, and he told me that the port had been hit by a severe storm, and that's where they have on the coastline of Chile, a few days earlier, and the only part of the port that was actually able to continue the operation and load and unload containers during this heavy storm was the ship that was kept steady with our moormaster units. It just proves that our solutions is there and it really makes a difference for the operators when they load and upload the ships, the vessels. This is yet another testimonial that our strength, our brand, and our position as the leading supplier of solutions that are both efficient, climate-friendly, and also, for God's sake, safe. I'll turn to the financial performance in the second quarter that we're talking about. In the last quarter, we started reporting order intake to increase the transparency and understanding of the development of our business. It is very encouraging to see that order intake increased 11% in the quarter. This development is mainly driven by good demand from ports and maritime products, as there was a service offering attached to that. We report for the sixth consecutive quarter a positive EBIT and the profitability is steadily improving. The EBIT margin more than doubled from the second quarter last year, which is a result of the change program and strategic priorities we introduced about one and a half year ago. And also, the focus on the change program, we reported net profit for the fourth consecutive quarter as well. I would also like to stress the strong cash flow development, where operating cash flow improved from last year's loss of 4.6 million SEK this quarter to 5 million SEK. This is reflecting our group-wide focus on improving working capital, which we initiated last year. So with this short introduction into the figures, I will now hand over to Joachim walk us through the numbers a little bit more in detail.