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[Foreign Language]
Thank you very much. And very welcome to our presentation of our Q2 report.Next page, please. So first, I'd just like to give you a quick snapshot of who we are. And we are a premium provider of solutions for clean indoor air. And we serve more than 3,000 customers globally. And we have an installed base that exceeds 10,000 units globally. We have a business model where we mostly work with long-term rental contracts of 36 months. That means that we have a large degree of recurring revenues. And we have very satisfied customers and in 75% of the cases, our rental contracts are either extended or renewed. As part of our sustainability focus, we measure our impact on society in terms of our clean air delivery rate, and we continue to increase our clean air delivery rate and by the end of Q2, we delivered 4.78 billion cubic meters per month. We have an asset-light business model where we have strategic partners for manufacturing and service that we work with. Next page, please. Looking at our Q2 performance and our highlights. I am very happy to see that we continue to grow our Facility Solutions business. Compared to Q2 in 2020, we are up by 102% in terms of sales. And also that means that Facility Solutions represent more than 20% of our total sales, which is very much in line with our strategy to grow our Facility Solutions business at a faster growth pace. Our order intake compared to the same quarter in 2020 is up by 28% and landed at SEK 92 million. How we continue to increase our installed base and it increased with 17%, and we reached for the first time over 10,000 units, and it was more than 10,700 units, actually. And our sales in the months compared to the sales level in Q2 2020 is down. We were negatively impacted by currency exchange differences of SEK 11 million. But adjusted for that, we had a decline of 9.9%. And this is linked to the fact that Q1 and Q2 in last year was exceptionally high with a very, very strong beginning of the year of cabin sales in Japan linked to the implementation of the Health Promotion Act from the 1st of April. And as part of the increase in our installed base, we also increased the volume of clean air that we delivered and that is up by 28% compared to the same quarter last year. And very importantly, we delivered strong and stable EBIT margins. We have an EBIT margin of 18.5%, which is the same as last year, even though the sales level is lower. So we have an underlying business with very strong profitability. We have high and increase in cash flow of SEK 36 million. Next, Page 2. Looking at the overall order intake for our company, we are then up by 28% compared to last year, and we show a stable positive trend compared to the first quarter after the outburst of corona in Q2 and Q3 in 2020. And looking at the progression of our quarterly sales, we have a stable positive development. And then as mentioned, we have this peak in Q1 and Q2 of 2020. But quarter after quarter, after that, we see a positive progression in our sales, and we see a very stable and solid profit margin of 18.5%.Next page, please. When looking at the geographical split of our sales, the share of Europe is increasing. We are growing our sales in the second quarter of 2021 compared to 2020 with 5%. We have a stable development in the U.S. and a sustained decline in Japan. And when it comes to the order intake, we are up 28% in total, very much explained by a short increase in Europe of 80% and mainly contributed to the increase on the Facility Solutions side. And we are down in Japan, as mentioned.Next page, please. Looking at the regional development on a quarter per quarter level, we see then the importance of Japan in the contribution in Q1 in 2020. But then we see a stable development and a stable increase in spite of a minor decline between Q1 and Q2 in 2021 and that is linked to a couple of major deals materializing in terms of orders in Q1, larger school in Germany and also on the clean room side in Sweden. But overall, a very positive development and significantly higher level than during the first quarters of corona. And we see then a stable sales development in all our regions and the positive progression. Next page, please. Looking at our 3 product categories category per category. And starting with Facility Solutions, our product category with advanced air clean solutions for business-to-business context. We then had a risked year in 2020 in terms of bringing new innovation to the marketplace. And that was both towards our key core segments in industry warehousing logistics, where we extended our product portfolio, and it was also coming out of the consequence of corona, where we saw the need to provide healthier working environment in new context. And that led us to new range of products with here for 14 filters in order to reduce virus concentration and expand our offering.Next page, please. And with this increased product portfolio in Facility Solutions, we continue to grow our business and our relevant in our core segments, introduction industry, warehouse and logistics and food. We continue to take market share in logistics hubs and field customers. So we have very much increased our relevance and the strength in our offering to our core segment. Next page, please. Then we also started during last year with our extended offering with our reinforced product solutions. We address new customer segments. And we have early development of a tight cooperation with [indiscernible] in 2020 going into 2021. And now more recently, we announced that we have installed a larger order for a hospital in France, in the South of France. So this was the first major order for health care in France, a very positive development. Another important newer customer segment for us on the Facility side is offices, where we since before, have a very strong position on the cabin side in Japan and where we now with the introduction of Facility Solutions in Japan in Q4 have managed to cross-sell and expand our offering to customers in the office segment. And also in Germany, we are developing and increasing our presence in the office segment. We announced a major deal earlier in the quarter of 65 units to the state of city in Berlin, and we see continued great opportunities in the territory, great opportunities for continued cross selling. And in the public sector, we have earlier announced a number of large deals, and we have also implemented a number of smaller deals when it comes to schools in Germany, and they have provided an important part of the growth in the Facility Solutions statement. And next page, please. And looking at our figures on Facility Solutions, we see then the positive progression quarter-by-quarter, up 102%, landing at SEK 23 million. We see the positive trend on a 12-month growing basis. And please see that the increased awareness of the importance of indoor air policy coming out of corona is something that will benefit us in the also the medium to longer term, both within our core segments and also in our newer segments coming out of corona. And we see continued great opportunities for cross-selling, and we see great opportunities to get the broader reach with our new product into the new segments and also into the newer more recent geographies. So we see great opportunities for continued growth within Facility Solutions. Then next page, please. Then we have Cabin Solutions, our smoking cabins, where our main markets are Europe and Japan, and our customer segments are in office segments, in public places, the industry and institutions.Next page, please. And there, as mentioned, we had a very, very strong first 2 quarters in 2020 due to the implementation of the Health Promotion Act. And we have a decline in sales in Q2 in 2021, although at a fairly stable level compared to the previous quarters. We have a business that is more mature in Europe, although stable in the customer segments we are present in. And in Japan, we see very much continued growth opportunities once we are out of the corona situation. We've had a long phase of mostly severe lockdown in Japan, and that has an impact on the short-term activity levels that we see great opportunities for continued growth in the medium to longer term in Asia and the more mature and stable market in Europe.Next page, please. Then we come to Room Solutions, our business of cleanrooms, where we mainly are present in the U.S. and in the Nordics. And in the U.S., our customers are pharmacists within hospitals and independent pharmacists for compounding of the medication. Next page, please. And looking at Q2 in Room Solutions, we already communicated a very strong renewal of a contract for 6 clean rooms with the hospital system in New York. And last year was a very positive element in our Q2 U.S. operations. It's a very positive validation of our solution of us as a service provider and of our business model. Then in 2020 in the U.S., we had a challenge in the activity level and the order intake due to the corona situation with the hospital situation being under pressure during corona. So we entered 2021 with a lower order portfolio than we would have liked to. But we are increasing and focusing on sales and closing opportunities and also addressing data and customer segments. And in the Nordics, we have a high activity level, and we have announced earlier, a larger cleanroom order in the Medtech segment in Sweden. And we see great opportunities for growth going forward, both in our U.S. and in our Nordic operations.Next page, please. Then we measure also our environmental footprint and the amount of clean air that we deliver. And we see here the progress of our installed base up to the 10,745 units in Q2, which has a very positive impact on the amount of clean air that we deliver. And in order to make this figure a bit more visual, we translate it into a number of Avicii areas -- arenas per clean per hour previously called the global arena, and we use that because it's the world's largest fairytale building. And there, we have reached almost 11 number of Avicii arenas per hour in terms of clean air delivery rates. And this is something that is very important for us to continuously see that we have a positive impact in terms of the volume of clean air that we deliver.With that being said, I would like to hand over to Henrik Resmark, our CFO.
Thank you, Christina. Then I would like you to flip to Page 18, saying second quarter increased order intake. Order intake is up by 28% versus the second quarter of 2020. Sales is down versus second quarter 2020. And as we have pointed out earlier, the second quarter last year in Japan was extraordinary strong. Facility Solutions is up by 102% in the quarter, and we continue to see clear traction here in Europe. This traction is important going forward.We take next page, please. Page with second quarter profit and loss comments. We continue to deliver high and stable cash flow in the quarter. And even if sales are behind second quarter last year, we delivered also a strong EBIT margins. QleanAir business model continues to deliver strong cash flow and margins. We have an efficient business model, meaning when market conditions are not optimal, we have the opportunity to defend the margins. And our business model is a combination of recurring revenues and sales to finance companies and product sales. And all this in combination with continued investments to reach future growth.Next page, please. It has growth in installed base generates stable recurring revenue. One of our key figures is our installed base constant increase and now about 10,000 units globally. This is our focus area to increase the installed base quarter-by-quarter to drive sales. Recurring revenues SEK 64 million in the quarter. These are solid levels to deliver long-term growth. We can then flip to next page, please, cash-generating business model. Net debt is down to SEK 173 million. Net debt in relation to equity ratio is down to 1, down from 1.7. I would say, all in all, it's a solid quarter despite challenging markets to some extent. Handing over to you again, Christina.
So next page. There, we just like to repeat our midterm financial goals and dividend policy. And our objective is to, over time, deliver an organic sales growth of on average 10% and to deliver profitability levels of EBIT margin between 15% to 20% and pay out 30% to 50% in -- of net profit in dividend.Next page, please. So to summarize, we are very happy to see our growth in Facility Solutions and its contribution to our overall sales and our order intake growth, our strong profit margins and cash flow, our increase installed base and our stable and high recurring revenues. And the key action areas for us in our growth strategy going forward is to continue to grow Facility and leverage our new product portfolio and to cross-sell within our large bank of customers, of 3,000 customers globally, and continue to develop our new customer segment and geographies and continue with sales focus on the Room Solutions site, increased our direct sales force and partnerships in order to continue to build our geographical presence and continue to invest in our product portfolio and our brand. And with that being said, I would like to hand over to Q&A.
[Operator Instructions] Our first question is from Anders Roslund from Pareto Securities.
Okay. Do you hear me?
Yes.
Yes. Loud and clear.
I would just like to ask about your demand scenario for Cabin Solutions. It seems there is a little bit weaker outcome in the second quarter versus the previous quarters, and I referred to the Q3, Q4, Q1, around SEK 80 million, SEK 81 million in states, and now it's down to SEK 75 million. And it's being said -- to some extent, Europe that is weaker than expected. How do you see on that in the future? What should change the scenario to be better in Europe?
I think when it comes to the European perspective, the customer segment where we are primarily present which is industry, institutions and public places. There, we see a fairly stable but mature market. And of course, we have during corona seen impact in terms of lower activity level in the market and so on short term. But we see also in the medium term that the situation is fairly stable in Europe. We have talked about the Japan situation, where we see more short-term. The demand situation declined compared to 2020. And there, we see great growth opportunities in the future. So we see the same scenario as previously. More mature in Europe but with growth opportunities in Japan.
When it comes to Europe, is it any distinction there between renewal rate on contracts and new selling, et cetera. Are the clients which are simply not renewal own contracts? Or what's the scenario there in Europe?
We are not giving out that information externally but we still have more than 75% that's all long-term rental contracts are either renewed or extended. So we still have a very high number there. But we are not guiding on how that split is in Japan versus Europe, for instance.
Okay. Coming back again to Facility Solutions, that is very impressive growth numbers. However, we haven't heard so much about large orders coming in. In the third quarter, you had quite some large orders coming in since the first quarter and second quarter. How do you look upon the growth scenario now? Is it more broadly spread with minor orders? Or how does the demand situation look like in Facility Solutions?
Yes. I mean we see a combination. And as we highlight, I mean, we see great growth opportunities in Facility Solutions, and we see that we will continue to increase the weight in terms of our overall income from Facility Solutions. And we see opportunities to continue to deliver both larger business opportunities and smaller. So that is a combination.
Okay. Have you seen any changes in legislation in Germany? You talked about that there were certain subsidies for introducing an equipment in public places. Are there any differences in that respect?
Yes. I mean there was a strong emphasis on this towards the end of last year and going into this year, then there's been a few months with summer with less intensity. But since some time, there is a very high activity level in Germany, again, to promote investments in air cleaning in schools. So given the fact that corona is not over and it's still crucial to be able to keep societies open. That is something that will continue in Germany during the autumn.
And you also got the breakthrough order in France, what's that onetime effect? Or do you see a further potential in other markets? And Japan, you also mentioned your cross-selling now, how is France and Japan developing?
The development in Japan is stable and progressing. I mean we have since a long time, a very stable presence in the office segment in Japan. So that is continuously developing. In France, this was a first breakthrough in the health care segment, and we see good opportunities for our board offering within Facility Solutions for France, both our traditional customer segments in industry warehousing, food, but also our new segments in health care and in offices and so on. But we have not communicated any other major deals in France, but we definitely see the opportunities.
Yes. I was specifically wondering about the Facility Solutions development in Japan. Have you seen any signs there of sort of and short-term of demand increases in Facility Solutions in Japan?
Yes. Yes. I mean we see a continued -- I mean it was only in Q4 that we introduced ourselves in Japan. And we continue to see a strong demand on the supporting solutions we have for the office segment in Japan. And then we also see the opportunity in the next step year to develop the Facility business in Japan for our core segments in warehousing logistics and food. But even now, we see a good progression of our Facility business towards the office segment.
Excellent. Finally, then Room Solutions, you mentioned the renewal order in the U.S., but you also had some good orders last year. How do you see the sales development that were a little bit postponed. Do you expect to deliver this SEK 10 million order or -- in the second half of this year?
What we communicated was USD 1 million end of last year, which is a significant project. So that is the project that will be ongoing during the year and also to a little bit of extent going into next year. So that looks a little bit different for the portfolio. But in terms of order income, we then generate the full value of the order and the revenue we recognized actually progressing the project.
So -- but how do you see the U.S. market in Room Solutions, is it picking up? Or is it still hampered by the COVID situation?
We have been impacted in 2020 by corona and not having the intensity in activity level towards customers that we would have liked to. So that means that in 2021, we went in with a smaller order book than in the year before. So that is something that we are focusing with the sales team on accelerating further in the U.S. So we see this as a short-term effect. We see a very strong opportunity for our solutions. We have very satisfied customers. Most of our customers come back and order more clean rooms from us. So we have a strong belief in our solutions and in the opportunities for our business. But we also have strong focus now on the sales side and closing customer opportunities. And we see good activity level in the Nordics.
Okay. That's good. Looking a little bit about the gross margin. It seems relatively strong now. You have established a level above 70%, and we have almost 72% gross margin in the second quarter here. Is this higher gross margin a new level or...?
Good question. I will not again guide on that, but it can differ quarter-by-quarter, depending if we have some renewal, large renewal contracts or a higher number of renewal contracts in Europe or in Japan. That, of course, affects the gross margin if there is a high portion of renewal contracts. At the same time, we have new units delivered within Facility Solutions. And always, if we deliver new units, the gross margin will be lower than the -- around 70%. So looking back at the historic numbers, it can differ quarter-by-quarter. But of course, our business model is very efficient in this case. When we get the renewal contract, we don't have to buy the unit again. We don't have to install the units again. And this is a very important part of the business model. So of course, we will strive and continue to deliver high margins all over the P&L, so to speak, but I will not guide and say that the new standard is above 70%. And again, also delivering new Room Solutions units will, of course, not reach the 70% for a specific unit. So it's a combination of new units and renewals leading up to the 70%.
[Operator Instructions] And there don't seem to be any further audio questions. I will hand the word back to the speakers.
Thank you very much. Then I would just like to wrap up by saying that we're very happy to see the continued growth in our Facility Solutions business and the increase in our order intake, our strong profitability level and cash flow, the increase in our installed base and our strong and stable level of recurring revenues, and we'll continue to grow our Facilities business with leveraging our new product launches, continue to cross-sell, continue to develop our new customer segments and geographies and continue to focus on sales on our Room Solutions side and invest in our product sales force and our brand. And with that being said, I would very much like to thank for your attention, and have a good day.