Earnings Call: Q2 2021

Aug 25, 2021

Thank you very much, and welcome to this presentation of Instalco's Quarter 2 Report for this year 2021. My name is Sergio Hurt Pershoesteran. I'm CEO at Instalco. And with me today, Robin Boorman, Today's CFO, but from next week, CEO of Instalkor, right? We'll come back to that later. Also with us today is Fredrik Traun, Head of IR. Starting with Slide 2 and a short update on who we are and what we do. Instalko is one of the leading installation groups in the markets of Sweden and Norway and Finland. Our main business area is installation and service for particularly heating of plumbing, ventilation and cooling systems along with solutions for industry and technical consulting. And the group now consists more of more than 100 subsidiaries and around 4 1300 employees. Still very and highly decentralized structure. We are supported by a small central organization and stronger profitability with high margins over time. Of course, we will be back to that. So if we move to Slide 3. For the last 12 months rolling, our sales increased to nearly SEK 8,000,000,000 with an adjusted EBITDA of SEK693 1,000,000 as you can see and an adjusted EBITDA margin of 8.7%. We also have a solid order backlog at just only SEK6.6 billion. We will come back to that also. So that's For that, and then we take Slide 4. I think I can say that Instalco has continued delivering high profitability and robust growth. This, I would say, despite the fact that Instalco and the construction and Engineered installation sector as a whole is now more intensely experiencing the effects of the pandemic. And as you understand at a later stage than many other industries. The prices for example for raw Materials is rising in our industry, primarily copper and steel. So we are working intensively to be able to compensate Therefore, that effects, we can start the strategy of applying a cost plus system and the purchasing efforts that we carry out. Our assessment though is that for the long run, there is no risk or at least limited risk that will be affecting us affecting our margins. And for just another quarter, we have had higher sick leave than normal, primarily in Norway and Finland, where periodic shutdowns at construction sites due to its cold infection has led to some delays in certain products. But despite these relatively difficult consequences of the pandemic, we once again delivered very strong quarterly results. We were extreme which we are extremely proud of and I think all of it demonstrates the trends of our business model. During the quarter, there was much activity in the area of acquisitions. We did both strategic, opportunistic and add ons. We grew our operations in the area of roads and street lighting, for example, which is a very interesting and closely related area to our regular electrical installation work. We can also see the effects of our prior start ups that we have as a supplement to the ordinary decisions. Segment Sweden continues to deliver strong results And our innovative segment has recovered somewhat since last quarter, although it's still performing and below the desired level. We have somewhat a lower cash flow than normal this quarter, which is due to some of our companies being a little behind with the invoicing, primarily caused by the fact that we are starting up a lot of new projects and that we compare, of course, with a very strong quarter as we had before. Adjusted EBITDA for the quarter was approximately 195,000,000 with an adjusted EBITDA margin of 8.4%. So if we go to Slide Finally, you can see there we have acquisitions. I can't believe that's a figure issue 22 percent organic growth 12% and in terms of about 2,300,000,000 in 22nd sale. I think As we used to say about the organic growth, this is very good this quarter, but we see it in the long run. We have in the first half year, I think 5.3% inorganic growth we always see in the year. Okay. Go to Slide 6. Here you see the The adjusted EBITDA for each quarter and it looks like before I would say. The quarter differs a little bit, but it looks like before. Slide 7, our order backlog is very solid. It's just over 6,600,000,000 and that corresponds to 8% 3% of our annual sales. We are also very satisfied with that. So if we turn to Slide 8, I will I hand over to Robin. Robin, go ahead. Yes. Thank you. And as you mentioned, Pal, we are very satisfied with the result in the development of segment Sweden. We have a strong and solid result here with a good EBITDA margin of 9.2%. We also see a stable demand for technical installations in Sweden. We are growing in all regions. As you can see, we have a very strong organic growth. As you mentioned, Pab, we are seeing some of our startups kicking in here and growing very well, which is also part of the organic growth here, which is very exciting. We can also see that the consultant business in Sweden It's growing and we now have approximately around 200 contracted technical consultants who will start during fall and are established then in 15 different locations in Sweden. So we're even more confident than we were in the beginning regarding this, I would say, start up that we together can combine consultants and the installation business in one group. And we also see effects here of collaborations and senior GCF. So we are very pleased with the start up here as well. Moving over to next slide then please, rest of Nordics. Number 9. Number 9 then. So looking at Rest of Nordics, as Per mentioned, we have somewhat recovered from last quarter, although we are still a little bit below our installed composite levels. As we've said before, the pandemic has been was tougher in the second quarter And due to that both Norway and Finland have had stricter policies regarding the pandemic. However, we see that our action plan has delivered result in Norway. Norway did a very good result here last month. So we are very pleased with that. We are seeing some effect in Finland. We have had very solid result in Finland so far, but we are seeing a little bit of a downturn there due to mainly due to the sick leave and closing down on some projects due to the pandemic in Finland. However, we are confident about Rest of Nordics and we are still very positive about the long term market here. So we are hoping to get them back on track. And we are delivering, I mean, 5.2% is not a bad result, even though it is maybe not in in line what we are hoping for and aiming for in the Instalco measures, but a positive view on rest of Nordics as well. So next slide here, 10 please. So looking at acquisitions, as you've seen if you follow our press releases, The pandemic has not affected our acquisition rates. We have done 15 acquisitions up until Q2 and approximately acquired around €570,000,000 in turnover in the year, all very profitable and high quality companies. And as you've seen also, we have continued this into Q3 as well. And we did one acquisition as recently as yesterday. And the pipeline is still very good. It's a good solid mix of healthy companies both so to say standalone installed companies, but also add ons. And as can see in the list there, we have a few of the add ons or on add on acquisitions that we have done. So we're very pleased with acquisitions. We're very pleased with the Klein and what's coming ahead as well here. So very good acquisition possibilities. If we take next slide please, Slide 11 and look at some examples. You mentioned before this specialization in roads, so that's Neely and in Gothenburg, which are specialized in road lighting and charging stations, which we think is mostly due to the fact that there are a lot of infrastructure projects in Gothenburg, but also the charging installation business is growing. Approximately sales of around €80,000,000 are very profitable, which is also this is also expanding a little bit of the range of possible projects that we can take on. So we're happy that they wanted to join the Instalko Group. And then just to give another example here of acquisition is the add on acquisition that we did in Norway that Andersson and Axnez did in by engineering, which is strengthening on the MAXNASS in the area of energy optimization. Somewhat smaller sales as you can see, SEK6 1,000,000, but it's adding value to our existing portfolio companies. So as you can see, we can do all ranges here in acquisitions. Okay. Let's move on to the next slide, Slide 12. And as you can see here, we are ticking all the boxes yet once again. We have a Strong year to date growth. We have a target of 10% and we are at 25% year to date. We have a margin year to date of 8.2 percent. Our target is 8 percent over a business cycle. Looking at the capital structure, we have a net sorry, adjusted EBITDA It's 2.5 and we are at 1.4 last 12 months. Looking at cash conversion, as you mentioned, Par, it is a little bit below last 12 months, it's a little bit below 100, But and that's due to this quarter somewhat lower cash conversion. But I think it's also a little bit of backlash as you mentioned, Bharat. We have had Tremendous high cash conversion and we are seeing a little bit of backlash here in this quarter. And dividend policy is unchanged. And maybe we move over to some of the projects that were done so far. Thank you, Robin. Let's do that. Slide 13, yes. Three examples of new projects from the quarter. And I'd like to highlight them as great examples of how we work. The first is Omega's assignment at the major logistics center in Orosusberg in North of Stockholm. And for this, Omega will apply the successful electricity contract model, call it, used by one of our subsidiaries in Bross, which is specialized in the design and installation of electrical solutions at just logistics centers. And I think this is a typical best practice project we learn from each other. And the other project is in Norway, where our subsidiary, GB Electro, was recently engaged for an assignment by Skerge municipality to replace The street lighting at the large and very difficult to access and sensitive area around And exchanging the lightning is a major energy saving project for the municipality. And the third example is Ruhrgruppen and OMNEGIS' assignment with LCC and Region Stockholm to expand the subway system in Stockholm. It's a partnering project for installation of the electrical and heating and plumbing solutions in conjunction with expansion of the Heuerdalen depot. And with the scope of these projects, our technical consulting company, Intept, has been engaged for the technical design work and I'm very glad that we could do that. So if we shift Slide number 14, go to Slide number 14. So to summarize the 2nd quarter, Strong quarter despite the pandemic, 10 acquisitions and a strong pipeline, A margin, we are very satisfied with. And we can also now say that Norway are delivering stronger margins. So I'm very proud of that. So that's it's the summary of the quarter, I think. So let's go to Slide number 15, changes in the management team. And as you might know, I will be leaving the decision of CEO for Instalco in order to take over as a Chairman of the Board. I think by doing so, I will be able to focus even more on strategic matters and Instaiko's future investments and pursuits. I'm also looking forward to work with Stylco's highly competent Board of Directors, of course. But I'm also very pleased that Robin Boorman, as I said, say for today, will be taking over as CEO. Robin and I have worked closely together since Stalco was established in 2014. And his experience of the group's Cision's pursuits in the accounting finance function makes him highly suitable and I think an excellent successor for this role. And with Robin as our new CEO, we ensure continuity and that we have a person with the right historical spirit. Isn't that right, Robert? Yes. I mean, I'm tremendously happy for the opportunity and really looking forward So taking on this challenge and I also feel very confident with the management team that we have in place. And as you said, I've been working here in Instalco since the founding. And I think we have a tremendous journey ahead and also The mix now with you stepping up in the Board as well, I think that's also helping us a lot and So that continues in our plan that we set to have the 2014. So very happy with the situation. Good. Sounds good. Okay. Let's change to Slide number 16, I think. And I think we can take a few words here about our model because we are talking a lot about our model and how we run this company. The Instacom model, our model is built on Team spirit, close coordination between units, best practice and cooperation, but also what we call mature leadership. And then that means that you have to in this team, you have to understand that 1 plus 1 can get more than 2 and if you cooperate. And we have a decentralized organization and we also work what we say what we call is in the middle of the road. We could have come back in a decent way and doing business in the right way. We talk a lot about sustainability. We are in the middle of that circle. We talk about safety, and we're taking that very seriously. We have a flat and lean organization. And of course, the team spirit, as I mentioned, is very important in character as our organization and leadership style, I think. And I will hand over to you, to Jorgen, because I think it's Looking at that, listeners here can rely on this knowledge, it worked very well and I think you Yes. I mean, it's worked tremendously well for us. And I mean, from the start in 2014, when we kind of set This journey when we started this journey together. And I fully agree with what you mentioned. I mean, I think this is the How should I say this is the modern leadership. I think this is the way forward. You're talking about the decentralized organization where we give a lot of trust out there to our local subsidies. I think that's the way ahead as well and building on the Team spirit instead of maybe a typical hierarchy even if we have, of course, boundaries and rules to follow in the year. But I think a lot Trust in this organization and the team's spirit and leadership here. And I mean, even if we have done a tremendous journey, I still think there is a lot of journey ahead of us as well. I mean, we are still in the beginning. You said to me the other day here that the journey is just going to be gone. Yeah. Yes. And I like that. And yes, and I truly believe that there are a lot of things, I mean, that we have done, but there is still a lot Of improvement and growth yet to be taken. And I think Can I ask you, Robin, how you see also I think We have a business, we do business as usual? You have said that to me many times. But how do you see to dig into digitalization, sustainability, ESG, Key things coming on. I mean, if we start by the digitalization that we talked about, I think the pandemic, it's of course Not something fun that has happened to us, but it has helped the construction industry, I think, to maybe do a jump over 5 to 10 years. I mean, Just looking at the before pandemic, if you asked anyone in the construction, should we have a team meeting, people look at it with this strange face and say, what are you talking about? Now we're seeing that we're having the construction meetings on teams, which is much, much more efficient. We are cost saving sustainability. We are seeing a lot of good effects also and on our work here, efficiency. So I think the digitization will improve a lot. We're also looking at kind of how we'll be purchasing. We don't go to the store as much as we did the order online instead. So we have moved into the utilization age much faster than I was Expecting and hoping for. And I think we have mentioned before, I mean, ESG and sustainability that plays right into our arms and something that I really looking forward to working even more with. We are in the middle of it. I mean, we are the ones doing all the installations. It doesn't matter what you're talking about. At the end of the day, it's always something that's going to need to be installed. And who does that? Yes, we do it. And there's always electricity involved. There's always a lot of water and those type of stuff involved in all these improvements. And We are the ones doing the installation. And now with also us moving into the industry as well, we see a lot of this happening as well in the industry. Just opened the newspaper day, everything is talking about carbon or CO2 neutral inflations and everything like that. And who's going to do it there? We're going to do it. So I'm really looking forward to this. We talk a lot about our decentralized model. Do you have any comments on that? Yes, I mean, like I said It's not in the school books. No, it's not in I think that's the modern way of leadership. And I mean, I think the future is with the decentralized model. I think Even looking at the really large corporations, they are trying to do this, but it's very hard and there's little bit slow moving. It's like trying to move trying to turn a big ship instead of having a lot of small ships that you can turn very quick and fast, so you can be more agile and fast moving. So I do think that this is the way forward. And we are also seeing on the market out there, we are even if we've already been here for 7 Yes. There are a lot of people trying to copy us already. So I think more and more are looking at this type of model for ZUKA as well. Okay, good. Okay, let's go to Slide 17. And as you might know, I always wrap up these presentations with a song title. And of course, I could have chosen time to say goodbye with So I'll write it and this will be the last time we're running stones, but I don't feel that. So I chose My Way with Frank Sinatra or I think the title should be our way. Now let me just say that we started Instalko in 2014. We had a vision of becoming the leading installation company in the Nordic region. And I think we are seeing there. 7 years have gone by quickly and we have had an amazing journey as we talked about earlier here and we have an amazing journey so far. We now have more than 100 subsidiaries working daily throughout the Nordic region. And throughout the door, we have delivered strong results and well executed projects. We have also been influential, I think, in developing the industry by launching innovative ideas and activity that contribute to a more our environmental way of thinking and working. And as we have also mentioned, we have a modern leadership with incredibly many talent and employees. Nevertheless, it still feels like we said, It's just the start of what we can accomplish. So I now want to hand over the reins of the CEO to Robin Brouwer, and we've seen of course much success in developing the company further as we continue our journey. And for me as the company's Founder and Department CEO, it has been an honor to have held this role and together with all our fantastic employees has been a wonderful company. I think we've done it our way. Thank you. Thank you very much. And before we kind of hop into questions, I actually put in an extra bonus Slide here in the presentation. And since you're always looking at music titles, I had Find my own music, Michael, to kind of sum up. And it is a classic ABBA. Thank you for the music And for giving it to us. Even if I know it's not really thank you because you're stepping into the Board, but it's a thank you for the CEO. And for me especially, I really want to thank you on behalf of the company for those 7 years that you have Had the role as CEO and led the ship and on this journey that we've taken. I think there's a lot of people out there that has a lot So thank you for this and we are all tremendously proud of being part of Installedco. We especially still remember that First meeting 7 little bit more than 7, 7.5 years ago in the conference room when something said click and And the journey started and truly honored to have been working with you for the last 7 years and I'm really looking Forward to continue this and I think a lot of people within Instalco would agree with me that we hadn't we couldn't have chosen a better CEO for this part of the journey. So we say thank you for the music and for giving it to us, Paz. Thank you very much, Robin. I have a tear in my eye. And now we open for questions. But do remember that it's past last quarter. So B kind. B kind, only nice questions. And then you can There's a couple questions for Q3 when I have to answer them. So now we open the line for questions. Thank And the first person in the queue is Mark Sammelop of Erik Mark, please go ahead. Your line is open. Mark Lambert here at PENSA. I've got a couple of questions. First of all, just You mentioned raw materials and you're working hard to compensate for that in passing on prices. But Just in the meantime, are we seeing some pressure? And does that explain some of the pressure, for instance, on the margin in Sweden? So are we seeing a lag here just to understand? Yes. I can start with answering your question here regarding the you fell away a little bit there, but I'm guessing you're asking about the seeing and the increased raw material prices. And we are we don't see the full effect. I think you have to understand also The way the business works is that on a lot of our contracts, we just kind of push the increase of the price Further, because we have a cost plus system working for us. We do, of course, have some fixed prices, But you also have to understand that we have taken this discussion started in the beginning of the year. So we have known that prices weren't going to increase, then we haven't had the exact percentage. So this effect is in the fixed price projects and We see that some adjustments have been done, but it is actually obvious that the prices are increasing. So we have known for a little bit of while that they were going to increase. So there might be a little bit of lag here absolutely in some of our contracts. I think we have a headroom as well. We have a little bit of headroom. And it's very hard to estimate anything in advance because we don't know how much head So we have gotten in the contract and but that's to give a little bit of flavor at least to you. I mean, you're right. It's marginal in any case. It's nothing material. No. No. The consultants business, just to understand, you're talking about you have 200 consultants coming on board in the fall. And How does this work and what does this mean and in terms of revenues? Because it's not it's a little bit difficult to understand and put it in context 200 consultants coming on board? I mean, I think some kind of Figures for consulting, I think, turnover, when you say, for each consulting is about €100,000,000 to €11,000,000 maybe €1,000,000 €1,200,000 So there you have the figures. And what we expect is a little bit higher margins from the consulting part of our industry and our business, but slightly I think. And now in the beginning, I mean, as you can understand, there are some costs involved here. And just to be clear, we're not taking on 200 in the fall. We have already some working for us. But In the fall, we have contracted about 200 and most of them are already on board, but You don't become profitable day 1, so to say. You have some starting cost and you also have maybe not 100% billability as well. So but once billability goes up and we have all the Structures in place, as Per mentioned, I think margins are slightly higher than they are in the installation business. That's also why we are so interested in the consultant business. But it's also hard for us to give you any estimate of how much this will affect or not because In a startup like this, we need the company and the startup, like I said, there are 15 of them at the moment. They need to run the year before we can kind of give you any precise estimates here. But the main reason for why we're doing this is because we think and we believe hardly in the fact that we can combine a more theoretical knowledge and that we concluded to our customers and that we can solve more of the customers' problems. And that's the big effect. Yes. And looking forward and talking about the consultants, I mean, should we expect you hiring consultants on an organic basis as well or are they mostly coming into acquisitions? I mean these 200 that we have at the moment, they are organically founded, I would say, 90% of them. Then as I mentioned earlier, we did an acquisition yesterday with about 60 technical consultants. So what main part will be through organic, but of course we're looking at acquisitions as well. In the future, but they don't They are not in organic this year. No, no, because then we started that journey line Yes. I mean, if you look at the organic numbers, then the consultants are not calculating since we have not owned them for 1 year full. So Those are not in the organic numbers yet. That's correct. Okay. And how big is the positive We hardly Sorry, it's very hard to hear you. Sorry, you're falling out. The consulting business as of today and the running rate, how big is it? Running roughly 200, as we said, but that's on an annual basis. Maybe today, 50,000,000,000 50,000,000 Okay. And then finally, I'd love to talk about the green movements of the from EU and Sweden, etcetera. And one of these parts is renovations. So there is a big push to get renovations to double over the next 5 years is a big part of the green deal. Is it anything have you seen anything from this yet? Because I would assume that, I mean, you will benefit this. I mean, I would say this way too early. Have you seen anything on this? I think you're You'll fall out, but I understand what you mean. I think that we have had a pandemic during this period. And it has been a little bit difficult to start new projects in the renovation sector as you can call it because people it's not possible to move people out as we did before. But What we can say here and you have absolutely right that this will increase and we can see a tendency now, I would say, that this is the project is starting. But I think we will see in a couple of months or maybe in half a year more activities there. But we're definitely not seeing the full effect of this directive of Trying to push for renovation, I don't believe we have even seen that yet fully. And I think also you'll see a lot of renovation being taking place Once people are a little bit more back in the office, you'll see also a lot of shifts in how our offices look in the way of open compared to kind of small boxes when it comes to office space and stuff like that. So I think it will grow even further and I don't think we've seen the full potential of this area. Okay, perfect. Thank you very much. Thank you. And we have one further person joining the queue so far, Stefan Anderson of SEP. Please go ahead. Your line is open. Thank you. Thank you very much. Fantastic quarter, I must say, impressed with the organic growth there. So I'll Start with a question there. I think I've been touching on this before. And I know at that point, your answer were that you were A small company doing lots of acquisitions, so therefore, there were volatility. But my question is, if you could maybe explain a little bit about the volatility in organic Growth. You had +8 2 quarters ago, minus 1 last quarter, now plus 12. The swings are Very dramatic. And I don't see it in so in some of your competitors that they also cover. So Do you have a sense or feeling for why that is? And the reason I'm asking is, of course, to understand Looking at Q3, Q4 and Q1 next year, is 12% the new level of the 16% in Sweden? Is that the new level we should expect Because of the consultancy coming in or so that's why I'm asking. And of course, you're not giving guidance. So but then you know why I'm asking. Yes. But you see, as I mentioned, this first half year, I think we are on average at 5.3. I think as and I mentioned that you have to see it in the long run. It can be like this fluctuated from almost 0% to 12%. We have had seen that before. And it depends a lot on which company and where the company's growth is and then in which part of our which is pace there are. So that can be. But if you see it in the long run and if you have to put it into in your models, then you should see it on annual or yearly. And we had a 5.3%, I think Robin mentioned here. And that what I think is A level which is very strong. It's very strong in the market anyway. Exactly, with the pandemic. So if you want to squeeze out something out of this and Get some flavor. I think you should more look to our annual increase or organic growth. This is the problem, Stefan, that we are too much quarterly focused in the financial sector. And I think that that's problematic for us. And to give you one mathematical explanation is that if historical has been very fluctuating, then the future is going to be fluctuating because It's a percentage measure. So if you compare Q2 and Q3 and they have been very fluctuating between Then we're going to have that problem next year as well because you compare with the numbers. So it is also a little bit more mathematical problematic. And as we have said from the beginning, it will always be very hard for a company In our industry with the acquisition rate that we're having and we're growing 25% annually the last couple of years, It will be fluctuating. And we also have companies that are growing and so to say Sizing down very rapidly due to the fact that we can ramp in a lot of people to finish one project, A larger one and then you don't have that next year, so you downsize and downsize being that you don't rent in as many installers as you did last year. Fortunately, we cannot guide more than we have done. One example is also what we have done in Norway. We have said that we're not chasing volume anymore. We have to improve our margin. And then we have that focus Then the organic growth will be negative. And that's part of our strategy, I would say. But we see a very positive development with our startups, as you mentioned before or as we mentioned before, With the technical consultant now coming in 200 plus consultants before year end That has not been calculated, including organic growth last year. So they will of course push organic growth Next year as well. And we have some other We have to live with this, Stefan, unfortunately. Yes, absolutely. I just need to understand why. So I fully understand we have to live with it. But I mean, I'm just trying to understand, if you tell me 5% is an average, sure, that's fine. But Why was it 12 this quarter? Was it could you is that explained by you starting an unusually large number of new contracts? Or I mean, I guess you mentioned that. I think that's part of the answer. And also that we have 12% is also that you compare with maybe lower numbers from last quarter or you compare it With the quarter last year and also that some of our start ups now have kicked in and are included in the organic growth that were not the last year, because we also did a new start ups in the beginning of last year, and they are now included and are growing. So that's also one of the explanations that we ended up with very high organic growth this quarter. I guess it was on COVID, Maybe COVID in Norway and such in the last year as well, I guess. Yes. So we have easier comparison numbers. Yes. Then on what was the others thinking about? Yes, I was looking at the order backlog. It seems like you're using Question on the order backlog, with the revenues, book to bill, it's a little bit poor in the quarter. I think it's down 2% Maybe the order backlog quarter on quarter while you've been buying some companies. I know, I mean, again, it's only 1 quarter, of course, and we've seen this Drop Q3, I think, in 'eighteen, 'nineteen or something. And there's been some quarters with those drops. So No big issue, but just trying to hear what you have to say about that. Yes. And one reason, Stefan, is also that You have what we call in Sweden, you have to have ice in your stomach. You have to be cool. When the pandemic started and throughout the pandemic. It has been a more, I would say, a market a little bit But lower market activity and the price is a little bit Lower and we don't want to be part of that Push for that. Push, I would say, and push the level down or so. We have tried and that's The Liberty tried to avoid being in that type of circle that We give you offers lower and lower and lower and lower margin and that of course affects our order backlog sooner or later. But still we are very satisfied with 85% almost 85% of the order backlog of sales. So we I think we can say now that we have handled this very well. And I'm not concerned at all if the order backlog is 2% lower than before or something. No, I fully agree with you, Per, and I would also like to Add to that is that at 83%, we are very satisfied. If you have looked at our in the future and if you look at Some are competitors and also like how the landscape looks like. If you're above 70%, you are very satisfied. And then we have been at very high levels at almost 90%, which is maybe too high. And I think like you mentioned, I think One effect that you're seeing in the quarter is also there is a lot of discussion now. The price levels has not kind of stabilized due to the raw material price shift that has been a big discussion in our industry. So that's also why we have been a little bit more Thank you. Cautious on taking on projects because the price level has not been set yet. So I think those are the two main reasons here. Should I interpret this with the last comments you made then that We're not really past the point where you see that the market has, how should I say, normalized? Or would you say that this pricing pressure, which you have avoided, is that something that was behind us? We can see a recovery in the market, as we mentioned now. And also, the building permits is increasing and another sign of increasing market. Of course, we are in the later stage. I mean, we don't we aren't the first one on in the projects. But I think and I said before, I think we have a Couple of rather good years ahead of us here and we can see they're recovering now the market. The other thing is the price level, because it's one thing that the market increase and there are more Tellers to give and so on. But also we have to be aware of where do as Robin mentioned here, where do we have the price level now? What is this is a proper or what you say call it a level. We also have what we call indexing our projects. We don't know if that reflects all the material prices that we can have index, regulatory index Index adjusted. Adjustment, yes. So it's still a little bit uncertainty Certainly, but I think that we will sort out here in a few months or weeks. I would be scared, like I said, if you see also in Q3 somewhat lower order backlog due to the fact that We might not be as aggressive as before. Like I said, we want to make sure that the price is on a good level. We want to make sure that we're not taking on Any projects that we at the end of the day are not fully satisfied with kind of our purchase price as well. So And on this level, we can absolutely afford to have somewhat lower order backlog without having to sleep bad at night. As long as we are above 70%, we are very satisfied. Perfect. Thank you. Then I just remember the last question I had. Talking to some of you ahead of the summer towards So in the mid of the quarter, I got the feeling, I might be wrong, but that you had a little bit of a soft start to the quarter. Is that the trend you've seen as well that you had a rather strong recovery towards the end of the quarter And then moving rather strongly into Q3 now. Talking about the top line here again. If we have a slow if we had a slow start, but at the end of the day, we had strong report, then you have you understand that we had Strong. We finalized a lot of projects before the summer actually. Could I misunderstood I couldn't move further to the situation, so that's double check. No, no, but that's absolutely correct. We had a slower start in the beginning of the quarter, But it was picking up very rapidly end of last month before the summer. We had a real pickup, a lot of things needed to be done before the summer. So I think it also has a little bit to do with People are looking into returning to a more regular lifestyle, so to say. So I think that was preparing before the summer. So Okay. So thank you very much and congratulations on a great report and it's been great To have to deal with you, Paracocha, John, as well. So thank you for these years, and We hope that it will be as pleasant to work with Robin going forward. Thank you. Thank you, Stefan. Thank you, Stefan. Take care. Thank you. There are a few questions from the webcast. The first one is, Have you really decided not to have any operations in Denmark? No. We are looking into Denmark right now. We have not taken any decisions. We had a board meeting, of course, earlier today. We talked about Denmark. It's interesting for us to look into that market. We think we have good opportunities, But we want to be certain that our platform investment will be the right one and that we found In that case, as we will enter into Denmark, we will find the right companies, of course, but also the right management team. So We are looking into Denmark and that is absolutely a possibility for us. But if we will be there or not, it depends. And I mean, it has not been a real big topic for us going outside Nordic because you haven't been able to travel. And as you Those of you who have been following us for a long time know that we don't do any hasty decisions. We want to make sure that we need to see look each other in the eyes and meet face to face. In that sense, we are a little bit old school. Yes. And it has not even been able to travel anywhere. So but now once we open up again and society is back to normal, Actually, we will start looking ahead as well. And then one M and A question. Has the multiples Increase or decrease somewhat during the pandemic? I think that the it has been a little bit of an increase. And I don't think it has to do with the pandemic. I think it more or less has to do with the fact that we have some more competitors out there. We have a few Larger competitors that are more on an investment type of companies That are not that are looking into all type of segments and kind of more shooting from the hip, so to say. And they are buying up companies in our segments. So we are seeing some higher competition here and that of course drives up the price. But then you can also discuss, okay, is it reasonable to buy a company for as we have done or almost lower than 4 or 4 times. Maybe that's not realistic. Maybe we have been lucky to buy them very, very at a very reasonable price. And there is a slight price adjustment. And I think it's We also believe in our business model and that attracts entrepreneurs all over. So from the other corners Yes. And we also see that for some cases the multiples are much higher than we are willing to pay. But we also see that like you said, our model attracts A lot of good. And as you can see, the pipeline or I mean, the number of acquisitions we have done, there are No big problems here. Thank you. Then one rest of Nordic question about Downsizing a bit in Norway. Now you're saying that Norway has recovered. Is that the effect of your strategy there? But we think so. We think we have succeeded with what we said that we should do, Lower the pace a little, but also go through margins. They have done a tremendous job, Roger, with and with The whole team there and I think we see the result of that now. We have said maybe we said it in the last quarter, I think, or that we will see that effect the effect of that during the fall year. And I think we see that We have, as Robin also mentioned, have been more struggling in Finland. But we have a good team in Finland in place And we know what they can deliver and they will deliver it in the future, but they have been affected by the pandemic even more than nowhere else at the moment. But I think also when we talk about Norway, I mean, we're very positive in the long term view And also for Finland as well and just coming back to Norway, I mean, we're not We won't take our hands off it, so to say yes, because they are delivering now. We will of course keep a close together with Roger who is running the Norwegian business, keep a close eye and continue this year. And it's not a one time fix. So that's I mean continuous improvement is something that we always work on. And it's not been a quick fix and We knew it was going to take a while, but we're definitely seeing effect of our action plan. And then we'll be talking about the organic fluctuating organic growth. And one last question on that is now when it has been so strong this quarter, should we expect lower organic growth for The second half of the year compared with that the order backlog is down a bit? It hasn't so much to do with the order backlog, but I will say that again that On average and we have I think we have on average during these years about 5% organic growth. Take that as the best explanation we can do. I mean, of course, it's up and down during these quarters, 1 or 2 and maybe 3% and 4%, but on average 5%, 5.5% maybe. And that's a good figure. And I think that's what we will hold on to and also what we can achieve. And I mean our financial target is not focused on organic growth. It's just saying that we are focusing on growth and we are focused on profitability. And those are 2 main financial goals. And so I think everyone has to bear that in mind. And we're also very Proud of them, we also have said that what we promised we will help and hope. And I think it's important that I think we have said 10% growth or 8% in margin, that's what you get. And I think that's also important and that's why we don't stress this organic growth because as we have said so many times, you can always increase Again, it will just lower your price and that's not our way. So but 5% as an answer I would say on average high quality. I think that's a very good sentence to sum up this call, The last call for Per. And from my side also I would like to thank you Per for an excellent job. Thank you, Fredrik. Okay. Thank you for joining in and have a good time. And next time, Robin. We'll see you back in the next quarter. The team is all yours. Thank you very much. Talk to you in a number. Take care.