Hello, and welcome to Inderes. We have Oriola report of their Q2 this morning, and we have the company CEO Katarina Gabrielsson for interview as usual. Hi Katarina, so let's start with the easy question: how did the quarter go from your perspective?

From the company perspective. I can see that the Products segment was growing quite nicely, and then when it comes to the volumes in the Distribution segment, especially the special volumes with vaccines and so on were growing nicely. Then we had a little bit slower parts in the normal product flow in the Distribution segment, and we landed on roughly flat to last year. Then we have also had higher freight costs.

Yeah, you mentioned the freight cost kind of full-driven freight cost this one had. I recall that after Q1 you said that you don't see very big problems, so how big of an impact. We are now talking about there. There is an impact.

Of course. It is mitigated now going forward, and the slowness in the implementation, since we had also the customer contracts taking care of this, so from this quarter on it should be on par, or it should be.

Okay, so freight was more a temporary for Q2. Thank you, good. Then on the services side you mentioned some slowness in the medicine distribution, but the advisory services, which was quite slow in Q1, how was that. How did advisory services go?

It continued to be on the low side. What we also said in Q1 was that we can see that the markets around us, depending on the US situation, there is like the pharmaceutical companies have a hesitance to launch new products and take new things to Europe especially, and we can see the vision that has continued. But we are also now taking measures in advisory, so if we don't see that it is going in the right direction, we have already started to do structural changes, but we will continue to do that. So I would say it is a balance in that now. It is also so that when you have started to see the slowness. It is also done so that now we can see that we have had the first ones, and of course you will get more into the decision parts anyway.

So is there some outlook that it would be improving, or at least.

It would step by step.

By.

Stabilizing. We have the contracted there, but if I look at the pipeline, I can see that there is a pipeline also in advisory with possible contracts coming.

Then on the Products segment side you had good growth, like you mentioned, but the earnings was slightly below the comparison period, but quite clearly below Q1 actually, again roughly half of that. So why is that margin so volatile from quarter to quarter?

If you look at the product side.

It's both like product side, assortment side, where we have own product and also dose dispensing. It is a little bit about the mixture between these two segments, as well as we also of course have had marketing costs and so on in the assortment side. So both of these ones are affecting the profitability in this.

Right. So is that more of a timing issue, or can it.

A timing issue.

There is no kind of structural thing?

No, not as I see that.

So nothing helping us to forecast it.

You can see it, of course, when you look at Oriola and if you look at. The business where we have the pharmaceuticals. It's like that it's a reimbursement. Business, it's infrastructure-critical business. We are talking about. Now it is more, we would say, normal maybe on our side, but from other parts of companies. It's more normal. So it can fluctuate a little bit more.

Then on the ERP project you mentioned that you are not kind of planning maybe some changes. If I understood correctly, that is probably being kind of extended or delayed a bit with the next implementations. So can you say anything about the impacts of that to the whole timing?

I can't state the total one because we are still in the planning, as you should. We are then also in the design phase for the second deployment that is still planned to be in Sweden. Of course now, when we take the ERP project and plan it together with the Järvenpää facility. It. It is a new planning, but I hope we can come back quite soon to you to make more clear. In this one.

And when was this second phase originally planned?

The second phase was within, I can't say exactly when, but during 2027.

Good. Then on your joint venture. Kronans, there was positive development. This time and positive results, so of course you have been doing a lot of measures there, but can you now see that there would be a kind of sustainable path towards better, or is it. Is it still expected to be kind of lumpy as we have seen for the past four years?

Of course, as an owner, absolutely. I would like this now. To be a stable one. I think to be able to talk about the trend and more stable soon, I would like to see a little bit longer period. I think that is where also, but what I can see is that during the quarter. It has been like a progress. I can also see that their actions that we have taken, the short-term actions and also what we talked in the same, have given an effect. So with that, we can see a positive sign.

That's good. Then finally on your outlook, you maintained the guidance of improving adjusted EBITDA. You are now very marginally above that for the first half, we are one hundred thousand, so what gives the confidence for kind of further improvement in the second half?

First of all, we can say that last year was also the same. We were then like in the same, so we have a strong second half normally in this company. We can also see that the volume growth is there in the areas. So that is supporting. We can also see the cost efficiency in the full parts that we are now taking their parts to get that out of their profitability is working. So there is a lot of this, and of course. Overall also efficiency improvement that we have been doing in Enköping. We have also, if we have done efficiency improvement during the first half, that will impact the second half in a positive way, and that together with cost control and continuing to be very strict. On that will give this effect.

Good, we'll get back to that in the fall. Thank you very much, Katarina, and very nice summer.

Thank you, and you too.