Good morning everyone, and warm welcome to Engcon's presentation of the second quarter 2022 and our first results presentation as a listed company. My name is Anne Vågström, and I'm Head of Communications and Investor Relations here at Engcon, w ith me today I have our CEO, Krister Blomgren, and our CFO, Jens Blom, who will present our Q2 report. After the presentation, we will open up for questions, and you can ask questions in the telephone conference or by posting them on the web. With that said, I will hand over the word to Krister.
Thank you, Anne. Since this is our first reporter presentation, I will guide you through a couple of slides with some background information about Engcon before we start with the Q2 presentation. Engcon is the global market leader in the tiltrotator industry. We have 45% market share. Engcon was founded in 1990 by Stig Engström and Monica Engström. Stig Engström is still active in the company within R&D and is still the biggest shareholder of the company. If you're looking on the map there, you see countries that is yellow marked. Those are countries where we have an active sales plan, where we have boots on the ground and working on penetrating the market with salespeople and technical guys to support that. It's total 16 markets from America to Australia.
On the other markets, we have a more optimistic approach to it. We sell if people ask for the product and so on, and we might have somebody that are pushing our products there but not employed by us then. For instance, like in South America and Eastern Europe then. Also for your information then, we have never sold any large volumes to Russia, so the sales stop towards Russia didn't affect us, that much at all. Our net revenue for 2021 was SEK 1.5 billion. The Nordic region is still the dominating region with more than 50% of our sales. The rest of the world is growing fast, as you will also see in the Q2 report later on then.
If we're going then to our vision, our vision is to change the world of digging. Right now is, we still have 98% left that we can penetrate and convince of this change. As you see in the upper left corner there, this is how the 98% of all the excavators in the world is looking with the bucket direct mounted to the excavator then. Only 2% have the tiltrotator and the possibilities that give. The penetration rate in the Nordic countries are approximately 90%, and that's what we aim for for the rest of the world, too, to get up to that level in the range that we have for the tiltrotators. How will we change the world of digging? We will increase the productivity and efficiency with on average of 25%.
All these numbers is from the IPO market study conducted by PwC, the numbers of increased efficiency and so on. We will also make the excavator much more flexible. We make the excavator to a tool carrier with the tiltrotator and our EC-Oil System. The EC-Oil System is a fully hydraulic quick coupler system. With that, you can switch tools without leaving the cabin or anything like that. The excavator becomes the tool carrier, and with that, it can replace 2.2 other machines like skid steer or compactor plates and so on. We also have a big focus on the sustainability. The more efficient machines you have, the less fuel you need for.
For example, a 30-ton excavator saves approximately 6,000 liters fuel per year with a tiltrotator on it, compared to the ones that doesn't have it. 6,000 liters, that's a lot of money, and it's a lot of CO2 that you get out in there in other waste then. We also have a big focus on safety, where the tiltrotators makes the work site safer, but we also have safety system to reduce the human errors. What are we selling then? We have a full range product suite. We have tiltrotators. We have eight different sizes of tiltrotators from excavators from 1.5 metric tons up to 33 metric tons.
We have quick coupler systems also for all these sizes that are fully hydraulic quick coupler system, as I mentioned, where you can switch tools without leaving the cab. We, of course, have tools, advanced hydraulic tools, but also mechanical attachments to that. As extra, we're selling control system for our tiltrotator and also safety system to reduce the human errors. If we're looking on our approach to the market and so on, we at Engcon see ourselves as an innovation and marketing company. To be able to focus on innovation and marketing, our business model is to buy components from suppliers and assemble it on our production facilities.
We also have centralized most of our support organization to keep our sales companies as slimmed as possible, and easy to scale up, and also easy to add more markets with a low cost. That's why we easily can go into new markets since we're having all the supporting tasks more centralized, so we can have just salespeople and technical people in our sales companies then. It's easy to focus on innovation and marketing then when we're only doing the assembly part, distribution channel then. All marketing and sales effort is towards the end user. We use social media, phone calls, meetings, demo days, trade shows to educate the end users about our products. We sell everything through dealers. We use the dealers network for that and also the way of financing our products there.
With OEM, we focus on R&D cooperation to prepare the machine for tiltrotators to shorten the installation time and also get promotion from the manufacturers about that they are tiltrotator ready. This gives us a credibility and awareness on new markets, and that makes it much easier when it's not only us talking about tiltrotators and the benefits we have, and we can also get that from the OEMs. That helps us a lot on developing new markets. Then we're going over to our production facilities. We having one in Sweden, Strömsund, where we also having our headquarters. This is our biggest facility. 80% of our revenue or net sales coming from this facility. Here, we still having a lot of capacity left. We are only utilizing approximately 50% of our facility there.
The focus here on in Strömsund, Sweden is on tiltrotators and quick couplers. That's what we produce there. Our other production facility is in Poland, Niepruszewo, close to Poznań, where we're having approximately 20% of our total net sales from this production site. Here we focus on more on attachment, hydraulic attachment and mechanical attachment. Here we are closer to our maximum capacity, and we also see a big growth, especially in new markets for attachment. We're having a plan for an extension in 2023 in Poland then. If we're looking at our supplier base geography, then 93% of our suppliers are from the Nordic region. We are only indirectly affected by the war in Ukraine with the fact that some of our suppliers in Poland were buying steel from Ukraine.
Now we will shift the focus to the Q2. That is a strong first quarter for us as a listed company. As you can see on the picture, we reached the milestone and became a listed company on Nasdaq Stockholm in June. If we're going then to some other business highlights, we can see a strong demand, despite the uncertain macro environment for our products, more or less in all regions. We'll talk a little bit more about that later on. Order intake is higher on less mature markets outside the Nordic region. The Nordic region dropped a little bit in Q2. One reason for the drop is the high order intake in Q4 and Q1 in the Nordics then. We also see an improved access to majority of components.
Still, some limitation of certain components that caps our delivery capacity then, but, it's a good trend that we see there at least. Our additional price increase to customers that we announced in April will reach its full effect in Q3 and Q4, and so also the one that we did in Q1 also. We also have launched our third generation of tiltrotators on trade shows in Norway and Sweden. The biggest show will be in Bauma in October. Production is planned to start early 2023. As I mentioned, we are listed on Nasdaq Stockholm then. If we're going to some Q2 figures here then, I'm really proud of our good stable figures in this unstable environment. Everybody within Engcon have made a great job to achieve this.
Order intake a bit lower this quarter because of big order intake in Q4 and Q1, especially in the Nordic countries then. We're having a big order book, so it's still long lead times on our products then. A lot of orders coming in for 2023 then. Organic growth of 31% is really impressing with this challenge we have had on the supply chain. Everybody been doing a really good job on getting all these products out. We can see on the gross margin that we're having an increase during Q2. Thanks to that our price increases have start to kick in, but the full effect will be on the upcoming quarters then.
EBIT level a little bit lower because of IPO and also the start of the ERP system change, and also that the majority of our revenue was still 2021 year's price list in Q2 then. I think ROCE speaks for itself. It's really, really good number with 58% return on capital employed. We received a lawsuit from one of our competitors in June, and I will try to give you an update on the status on this. Rototilt Group AB filed a lawsuit regarding alleged infringement of patent sensor technology with a claim of approximately SEK 120 million. The technology relates to our Q-Safe quick coupler and the usage of multiple sensors. Lawsuit is not related to the sensor technology used in the tiltrotator. That's our main product.
Engcon has, of course, contested the claim of the patent, and, together with consultants, within patent law and experts and legal advisors, no provision has been made in Q2. We also in April 2022 appealed, the decision to grant the patent of the European Patent Office. The process is ongoing, and it's expected to be ongoing for at least 1-2 more years before any decision can be made in this. We also, as we mentioned, launched the third generation of tiltrotator system, and the third generation tiltrotator system from Engcon is the solution for people looking for lower fuel consumption, energy consumption, and service cost, and also want more responsive digging, better precision, and better support. We are ahead of our competitors in product development.
With the third generation tiltrotator, we are at least one level of technology above existing products on the market. What is new with the new third generation tiltrotator system then? The control system is new. It's a smarter control system that can control a lot more things like valves and so on. What's the main new thing in the tiltrotator is the hydraulics that are much smoother and much more efficient. With the efficiency, we're getting the less fuel consumption or less energy consumption then. The load sensing technology that makes the machine or the tiltrotator ready for electrification with the fully electric machines where the problem is to get enough energy, and we need to reduce the energy used in that way then.
We're getting much more smarter and efficient in that way. We also have prepared for fully autonomous machines because then you need to have much more smoother machines. You can't have any hacking or anything like that when you're running those autonomous machines together with the Trimble or Topcon machine control system then. We're also having a user-friendly and personalized system with our app. You can set your personal settings where if you want to drive your tilting faster or rotation slower or whatever your settings want to be, you get your own ID. Like you when you're sitting in your car, you push your name, and you're getting all your settings in the way you want to have it.
In the same way, we're doing it in the app, so you can move from machine to machine and have your personal settings in that way. We're also getting connectivity, so you can do over-the-air updates and over-the-air support. In that way, we can make the product better. After a couple of years, you're actually having better product than you bought from the beginning then. We're doing a soft launch on this at trade shows. As mentioned earlier, in Sweden and Norway already, we've been having it, and Bauma in Munich, Germany is the biggest show within our industry. It's in the end of October, and there we also promote it a lot and show it for everybody, and people have the chance to test it.
Production start is planned to be, as I mentioned earlier, early 2023. We had a successful IPO in a turbulent time, and proud of all the investors, who managed to commit to Engcon, and that they want to be part of the movement to change the world of digging. We have a really good cornerstone shareholder group that shares the same beliefs, and values as us with the focus on organic growth, and we've been having a good start, even if it's been a little bit nervous before the report then. We're going into a little bit more regarding financial development, and I will continue a couple of slides, then I will hand over to Jens Blom, our CFO, that will take a deeper dive into the numbers.
If looking into the order intake then, we see continued high investment activity among our customers despite uncertain environment, as we mentioned earlier. Order intake increased 20%. Sixteen percent if you take away the currency effect. Net sales increased 35%. Thirty-one percent if you take away the currency effect. We have a really strong order book that provides good conditions for stable earnings in coming quarters then. We also have an extraordinary high order intake in Q4 2021, as you can see there. This is not normal. It's a lot about that we made a big price increase for first of January 2022 on 10%. That ended up, like all the Nordic companies starting order pre-orders. The longer lead time we got, the more they ordered.
That was a really high order intake, both in Q4, but also in Q1, but especially in Q4. We don't expect it to look the same, this Q4 2022. If you're going into each region then and to see how it's looking there, it's a stable growth more or less in all the geographic markets. Nordic have a decrease in order intake, but that's expected since the huge order intake Q4 and Q1. If you're looking for the six-month period, it's still an increase of 10% in the Nordic region then. As you can see, the net sales are increasing 25%, and that's really, really good on a mature market as the Nordic region are then. If we're looking into Europe then, Europe have a big growth in Q2, both in order intake and net sales.
More or less, strong performance from all markets in Europe then. A growth of 43%, that's also outperforming a lot of expectations. Americas have an incredibly strong order intake. We can see that our investment with more boots on the ground, both in Central U.S. and West Coast, not only on the East Coast as we were before, start to pay off. We have a much better coverage of U.S. now, and also our cooperation with John Deere starts to give us orders and credibility in North America. A 96% growth on order intake and 41% on net sales, that's a really strong number for Americas then.
If looking into Asia and Oceania, they also show a good order intake and net sales growth, and this shows that it will go faster and faster with the penetration on new markets. Because we started 2020 right before the pandemic in both Korea and Australia. The reason why it's going faster and faster, that's the knowledge about the tiltrotators is spread thanks to social media, trade shows, and that OEMs are preparing their machines for tiltrotators. That way promotes tiltrotators also on those new markets that we haven't been yet. I will hand it over to Jens Blom, that will take you into more details regarding the financial numbers.
Thank you, Krister. We're gonna start to look a little bit about the EBIT. We are ending up on SEK 99 million in the second quarter compared to SEK 83 million, and that's a net increase by 19%. The EBIT margin was 18.5% compared to 21%, and then we have an impact of the IPO cost of SEK 11 million. We also have started to implement a group business system which cost SEK 6 million. This affected the quarter. If we go a little bit deeper and in more details, we can look on the gross margin. It's really stable. It's 42.5% compared to 42.3%. The higher cost for materials and components is being compensated by the two announced price increases that have been made in January and in April.
As Krister mentioned, we are expecting the full effect of those increases in the Q3 and Q4. We also have an effect of the fair value of the derivatives ending up at SEK 16 million. If we look at the bottom line, we have an EBIT margin pre-IPO on SEK 110 million, and where the EBIT margin pre-IPO is 19.5%. If we go and look at the rolling twelve-month period, we have an EBIT margin pre-IPO on 22%. This is really strong if we take into consideration the challenge we had with the supply chain and long lead times. We have taken a close look at our capital structure.
As you can see, we are tying a little bit more capital, and that's due to a higher volume in the inventories. That's the main two effects, one that we need to secure vital components for our production, and also a strategy that allow the more remote markets, like America and Australia, to have a higher volume in their stock. But even though we are tying up more capital, our operating cash flow is really strong. We are ending up on SEK 92 million for the quarter compared to SEK 53 million. We go to the next slide, and we can see there on the return on capital employed. This is like more of a consequence. With an efficient handling of our capital and high profitability, we are ending up at impressive 57.5%.
I think this gives us a solid foundation to meet the upcoming quarters. Now I will hand it over to Krister, and he will summarize the second quarter.
Thank you, Jens. We'll go into how we've been performing toward our financial targets. As Jens mentioned, we had a strong quarter, where the growth goal is to exceed the growth in existing market through organic growth. What we can compare to, since we don't have any competitors within the tiltrotator industry that are listed, we can compare to the IPO market study conducted by PwC, and their expected growth was 19%, and our growth is 31%. That's a really good, strong number for us. EBIT margin, or profitability, where our goal is to exceed 20% measured over a business cycle. EBIT margin is slightly lower because of the huge pre-order book that we had.
We're selling a lot to 2021 year's price list, but also ERP system change and IPO. It's still on 19% then. Capital efficiency, as Jens mentioned, really high. Our goal is to exceed 40%, and we are on 58%. Capital structure, our goal is to equity to asset ratio to be above 35%, and we are at 32%. If we do a little bit of summary and a short outlook, we have a strong order book that provides good conditions for stable earnings in the coming quarters. We'll receive full effect from the price increase to customers in Q3 and Q4. We see that it's improved access to components that shorten delivery times, but we still have some limitation.
This improvement on the access to components will also help us to reduce the inventory needs, especially in our production facilities then. As Jens mentioned, we need to have stock in especially North America, Korea, and Australia then. What we see as a cloud then is potential record high energy prices and consequence of that may affect customers' demand then. We feel that we are a company that having a track record of handling changes by adapting cost and organization while still be able to focusing on innovation and product development. We feel that we are ready for whatever the future brings to us. We're coming into summarizing a little bit more. We feel that we are well-positioned for global growth.
We are the global market leader with 45% in an attractive and fast-growing niche market, and the market is driven by structural transformation. Like you have labor shortage, you have sustainability requirements, you need to change the construction equipment sector transformation. You're going where the excavator is becoming tool carriers, similar as agriculture have done before, and you're having a demand for productivity and cost savings. We're also having, as I mentioned earlier, we have a superior value proposition where we are one step ahead of our competitors, where we innovate through partnership with OEMs and end user helps us to anticipate the need of the end users before they even see the needs.
A little bit like I used to say that if Henry Ford would ask about what type of transportation his customers needed, they would say a bigger, stronger horse, but he was building a car. Our end user focus, we'll continue with that go-to-market strategy, working, building up the market from the bottom up, and also with that, easy to scale up and take on new markets. We can easily go into new markets without taking any bigger cost on it. We have a long track record of high profitability and capital efficient growth, and we're having a clear strategy for continued growth on a global basis then. We are really looking forward, but also of course not immune to any downturn in the global economy or anything like that.
We see we're having a strong quarter behind us and looking forward for the future. With that, I hand over to Anne.
Thank you, Krister and Jens, for a good presentation. We will now open up for questions. You can ask questions in the telephone conference or post them on the web. Let's start with questions from the telephone conference. Operator, please go ahead with the first question.
We will now begin the question and answer session. To ask a question, you may press star then one on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. Our first question is from the line of Agnieszka Vilela from Nordea. Please go ahead.
Thank you. I have a few questions, starting with your orders development in the quarter, it was +16% organic. Can you tell us how much was volumes growth and how much was price mix, out of that number? Thanks.
We can't say exactly how much was each, but it's a mix of price and volume, of course, even though we know that we are only around 25% in Q2 that was on new price list of the revenue. It's a mix because we're also selling different sizes, so that's why it's a little bit hard for us to calculate it.
Yeah. Do you get the feeling that the price increases, which were quite substantial, they are sticking? Maybe if you could tell us what competitors are doing with prices as well.
Yeah. The competitors have followed on most of the markets. There were some markets where they waited a little bit, but we can't say that we have seen that we have lost anything because of our price increases. It's been a high demand on the products and long lead times. They are as it looks like right now then with the energy prices going up, and that probably means that steel and so on might keep going up. They're probably there to stay.
All right. Regarding the 7% organic orders decline in the Nordics, I understand the fact that the comps were quite difficult with very strong quarters prior to Q2. I would just like to know if you get the feeling from the customers that they're becoming a bit more hesitant because of the construction markets, or do you still see good demand for your products in the Nordics?
We still see that. If you're looking on, starting with the order intake from the beginning, then we see that we're more or less filled with what we can sell to Nordic without taking a huge number of market share. The orders that coming in right now from the Nordic market, they are for 2023, more or less all of them. We can hear that some people are, of course, thinking about what will happen and so on with house building and these type of things, but we can't see yet a clear path that it's going down because of that or anything like that. We are trying to follow this as closely as possible all the time by talking both to end customers and to construction companies and dealers and so on.
The deceleration so far, it's mainly due to the strong order intake in Q4, Q1, in your opinion?
That's the only thing that I really can see clearly that it is like that, but the rest would be only guesstimates or guessing from my side.
Yeah. Yeah. Great. Then you had a very solid gross margin in Q2, and you say that's partly due to the price increases biting and you also expect even more price realization going forward. My question is, should we expect even better, even stronger margin profile through the year?
That of course depends on what happens with the component prices and so on. We see that the energy price is going up and that will probably means that the steel price is going up and then our components price might go up there also. It depends a little bit on what happens and if it's become a downturn, then the demand will be lower and then if we can keep our demand in our products, then it's absolutely a possibility. Again, it's hard to say. It depends a lot on what's happening on the macro level.
I understand. Assuming that the input costs remain stable, would you think that with the price increases you could improve your margins further?
That's if you're only looking on mathematics, it should look like that, yeah.
Okay. Then just last one from me. Looking at your quarterly figures, some of them you released in the report, we can see that Q3 last year was very strong on the profitability level with gross margin of 44%, EBIT margin 25%. I just wanted to know if there were any kind of special items in it, or was it a clean base? Also, should the kind of seasonality in profitability look like that?
Yes, I can answer that. Last year we had a slight lower cost due to the implementation of our group business systems. We have a little bit higher cost for consultants at the beginning of Q2. I think last year was more like some not ordinary, but maybe we can see some improvements in the Q3. I don't think you can look and copy last year right off there.
Yeah.
You can also see maybe some trends that we are normally having a higher net sales towards the Nordic region in the first six months, and then and the rest of the world is a little bit stronger in the last six months because they're having a longer digging season in that way then. That also boosts a little bit on the gross margin level.
Perfect. Thank you. I will get back to the queue. Thank you.
The next question is from the line of Kenneth Toll from Carnegie. Please go ahead.
Yeah. Thank you. First, to follow on Agnieszka's discussion, I was wondering if you're adding salespeople in the second half of this year or if you are sort of planning for a slowdown in demand ahead?
Both yes and no. We are adding people in those countries where we see a big potential and where we can get a fast kickback on the investment if we're saying like that then like North America, for instance, where we, as I mentioned, we've been getting more boots on the ground in Central and on the West Coast, and that will continue. Also in some regions in Europe, we will also add more people in then. Of course, otherwise we are a little bit hesitant and looking on the market what's happening then in the rest of the world more or less then.
Okay. Makes sense. You talked about this third generation tiltrotator that you have showed it to customers on trade shows in Sweden and Norway. What has the response been? Has it been more like, "Wow, it looks great," and then not much more? Or has it been more like, "Wow, I would really like to have one of those"?
It's been a positive response.
If we could advance them.
Yeah. It's been a positive response. We had people trying it in the Swedish exhibition that we had. They feel that they can feel the difference. It's smoother and so on. Of course, they need to see they can't see on that short test that it's more efficient regarding fuel and energy and so on, but that's things that we need to show how it's much more efficient regarding that. They like the app. They like those things where you can personalize your settings and so on. Those things are really positive. We haven't made it able to book orders on it yet, so in that way, we can't say how big a positive response it's been.
We'll start with that with the possibility of placing orders after bauma then, or during bauma, actually, I mean. That's the plan we're having.
Mm-hmm.
When we're talking to the OEMs, they feel really positive regarding with their fully electric machine that we're doing this, the things to reduce the consumption and so on, because that's the challenge they're having to make those machine last for a full day.
Okay. Yeah. Great. That's all for me. Thank you.
You're welcome.
We have a follow-up question from Agnieszka Vilela from Nordea. Please go ahead.
Yes. Perfect. Some follow-ups. Just if you could give us a bit more color on the supply chain situation. Is it optimal right now, or do you have some shortages still? What's your expectations for component supplies for you?
It's been like 95% of the components are on a good, stable level where we getting them maybe not always in the numbers that we want or the volumes that we want, but we get them on time and so on. Then we're having a few components that we're still having a challenge with getting in time and it's disturbing the production in that way. We are sometimes forced then to build the tiltrotator and then take them in again and put the last thing on them and so on. We see that we will have challenges at least for the whole Q3 that will not be able to get us up on full capacity that we planned for.
Hopefully we'll in Q4 be able to increase the production capacity than in Strömsund especially then.
Yeah. If I order a tiltrotator now, what are the delivery times?
You can actually get one in November sometime then. It's looking better at least now.
Yeah. Perfect. Just on some financial items for us to understand. The SEK 6 million cost for the group ERP system in the quarter should it continue for a few quarters? How should we think about it?
Yes. You should think about it like that it will continue. The plan is to have it fully installed during 2023 then, where we're having the pilots going out in Q1, Q2 there, something like that.
Similar level for a few quarters. Then on the admin expenses, they have also increased quite substantially quarter-on-quarter. Can you give us some flavor on it and also guidance going forward? How should we think about admin expenses?
Well, this is the higher level, as I mentioned, mostly due to the IPO and to the change in the group business system. It will get lower in the coming quarters because we will not have any more IPO costs.
Okay. IPO cost was booked there, perfect. Jens, maybe also on the fair value of derivatives, this kind of level. I mean, is it based on just the revaluation of your derivatives that you have?
Yes. It is.
Perfect. The last from me, when it comes to your CapEx, it's still quite limited on the tangible CapEx year to date, but you have this expansion of the production in Poland, for example. What are your expectations for tangible CapEx for the full year?
I think we have made some investments in the first six months, and we don't expect so much more this year. As we mentioned in the IPO process, we are starting to look at getting an extension of the production in Poland. Maybe there we're gonna have some more investment in machinery and production facilities. It will be in the beginning of 2023.
And the extension will-
All right.
Start probably earliest Q2 then. The machinery, some machinery will be, as Jens mentioned, early 2023.
Yeah. Perfect. Thank you, gentlemen.
Thank you.
Thank you.
Ladies and gentlemen, as a reminder, if you would like to ask a question, please press star followed by one on your telephone. There are no more telephone questions at this time, and I hand back to Anne Vågström.
Okay. Thank you. We have some questions from the web. One question is regarding the lawsuit. What is the worst scenario relating to the lawsuit and the probability for this outcome?
The worst scenario is, as we mentioned here, what they have sued us for is SEK 120 million. We don't agree on the volume of units they say, and we don't agree on the price they put on the units. The possibility, since we've been handling it not to put it into the books at all, then the possibility is low that we will be affected by it. We see both that we will try to get rid of their patent and also the lawsuit we see as two different possibilities to win this.
Okay. Thank you. Another question. During the IPO process, there was some focus on the tipping point. Does this quarter reflect high growth in those specific countries lying around the tipping point?
Yeah. The tipping point we talked about, the only country that's been passing the tipping point is the Netherlands. Netherlands been having strong momentum for this six months period. We can see, like we were mentioning France and so on, also regarding tipping point, they've also been having good quarters and so on, but we're still chasing that tipping point mostly. It's so far only Netherlands, and Netherlands are doing a good job, where we've been having good net sales.
Thank you. Here's the questions regarding OEMs. Which OEMs are you cooperating with? Well, you mentioned John Deere. Which more?
We are having cooperation with 13 different or 13 OEMs. I can't mention all of them because some of them are not okay to mention. The ones that are official is Kobelco, Hyundai, Doosan, John Deere, Volvo. Help me out with, is there any more that we have made official? Yes. I think it's those that we have made official, but we're totally working with 13 OEMs regarding preparing their machines for tiltrotators and more or less in the same way with some tweaks on each brand then.
Okay, great. Here's a question. What makes Engcon the preferred supplier of tilts compared to existing competitors? Has there been any change in the competitive landscape in the last 6-12 months?
I think the biggest reason for us being the preferred brand is that we are at least one technology level above our competitors. We have been working a lot that you shouldn't need to service your product that much. It should be simple to own an Engcon. Also, if you're looking on official numbers that we have received them from our competitors, then we could see that we, for 2021, was growing much faster than our competitors. In that way, we've been strengthen our position as number one.
Thank you. That was the final question from the web. I would like to thank you all for taking the time to listen in to our presentation. Welcome back on the 27th of October when we present the results for the third quarter. We wish you all a very nice day. Thank you.
Thank you.
The conference has now concluded. Thank you for attending today's presentation.