Concentric AB
STO:COIC
Concentric AB
STO:COIC
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Hello, good morning, and welcome to the First Interim Report for 2018 for Concentric. If I'd introduce myself as David Woolley, the CEO; and introduce Marcus Whitehouse, who is basically the new CFO and on his first quarterly report.Okay. So we are today going to follow the normal format that we always do. I'll kick off proceedings and talk about the highlights for the first quarter in 2018. Then after that, I'll pass over to Marcus to take us through the summary of the financial results. After that, it will come back to myself and we will tell you how we see quarter 2 shaping up for us. After that, we'll go to the Q&A session for questions in the room and online.So, how did the first quarter go? In terms of sales, it was a very positive development. Sales were up 15% year-on-year. And that's given us a total sales of SEK 603 million, and that's after adjusting for the currency effects which we pushed it back by 5%. The increased sales that we've seen, basically coming across in all 4 sectors. So our end markets of truck, construction, agriculture and industrial markets, all 4 sectors are positive.Truck, we see is continuing strengthening in both U.S. and Europe and the rest of the world. Construction is for us a really positive sector, and we'll talk about Europe and rest of world and the U.S., but this sector is continuing to improve. Again, the macroeconomics are driving the sector quite nicely. Industrial applications, again, steady growth all areas, particularly in our main markets of U.S. and Europe, rest of world.Agriculture too, we've talked a lot about agriculture over the last 2 years. The market is still in the fairly weak position, but quarter-on-quarter, we're seeing more strengthening. So still weak sector, but again, directionally going in the right way.The graph at the bottom of this slide talks about the book-to-bill, and what we see is, it's still in positive. We have a book-to-bill of about 107%. We had the peak in Q4 '17 as we had a peak in Q4 '16 relating to working days and the shape of the upcoming quarter. But again the development of the order bank is still positive.On the next slide, we talk about the earnings. So the first line really says what it is. The quarter 1, we saw profit improve now to SEK 120 million. So a very, very strong quarter in that respect. 19.9% against last year's 18.3%, we're pleased with the development. This high quality of earnings is a combination of a couple of things. The markets are favorable. So it's increased our top line. So that will naturally want to help us take profit to the bottom line. But the other thing, again, we'll always talk about is the Concentric Business Excellence model. We never stop working on continuous improvement. And the combined effect of strong market plus continuous improvement means yet more profit or sales is getting down to the bottom line.Cash flow, the expression that profit is always a matter of opinion, but cash is a matter of fact. Cash is strong, SEK 111 million. And this is allowing for the natural increase in our trade working capital, as sales have increased, we've increased inventory, we've increased receivables and balance with payables. So even after taking into account everything, we're still happy with the cash flow.The net debt of the business, again, prudent management of the numbers. We've actually reduced the net debt down to SEK 92 million. The gearing ratio now is, we're down to a 9%. So a very good gearing ratio. We have a lot of pension liabilities on the balance sheet, which again, we'll always talk about. If we were to exclude the pension liabilities, then the underlying gearing now takes us down to about minus 38%. So all-in-all, a very, very pleasing quarter.At this point, I'll pass over to Marcus, to handle his first quarterly review, and thanks very much.
Super. Thank you, David. David -- okay. I'll move over.Right. We've got a good set of numbers for the first quarter. And as David touched on the markets have been favorable. We've seen an underlying kind of increase in our net sales of 15%. We lost 5% with headwinds on FX, most notably, the U.S. dollar, which means our net sales, we're reporting SEK 603 million for the first quarter, that's 10% up on this time last year, and a very pleasing result indeed.We've also got on there a margin, that underlying margin at 19.9% is a record for Concentric. It's the best we've ever posted. And as David touched on earlier, is a compliment to both the top line sales growth that we've got and also the flexibility we have in our business model. With Concentric Business Excellence, to not flex our cost base to an ever-growing top line trend.What we're also seeing from that is that the operating income level, we are getting a 35% pull-through from those extra sales, which is excellent. And that has resulted in our net income for the period that we're reporting is SEK 89 million, that's up year-on-year by 20%. So a really good flow through to the bottom line.Turning our attention now over to cash. David's already touched upon it. So I won't talk too much, but -- yes, cash from operating activities is SEK 111 million, it was SEK 78 million on this quarter last year and an improvement of 42%. And it's allowed us to take our debt down from SEK 185 million at the end of the fourth quarter down to SEK 92 million at the end of the first quarter, and a gearing ratio of 9%. And the group does remain, excluding pension liabilities and surplus funds. So really, really pleasing results that we've got there.Now if we return to those markets that we've touched on. We are seeing green pretty much across the board, and some with really good growth in certain sectors, particularly in some of our key territories.Let me take them one at a time just to explain what they are. North America, we are seeing a continuation of growth. Low basis, David said on agriculture, but also with construction, which is pleasing. But we're seeing really strong growth in our medium and heavy-duty truck sector, 22% year-on-year. And within industrial applications at 22% as well. So that's given a really strong market for us in North America.South America and India are both posting very similar types of trends. Growth plus-10% in agriculture, construction and truck. Europe, on other hand, modest growth, but stable growth, pretty much across the patch. And then we turn to Europe -- sorry to China. And China is a little bit of a mixed bag that we've seen there. We've seen very strong growth within construction and some negative growth within trucks, but there is some mixed data that's coming out of China in our first quarter with soft economic data. So probably we want to watch for quarter 2.So building on that, that picture within the marketplaces, what are we seeing across our 2 broad regions of Americas and Europe and rest of world? Well, no surprise looking at constant currency. Quarter 1, we're seeing year-on-year growth in top line sales in North America of 21% and a good strong book-to-bill ratio of 108%. Again, the areas that we're seeing come through medium and heavy-duty trucks, that are really driving the growth, but also that sustained growth within ag and construction.Looking at Europe and rest of world. Slightly less, we're at 11%, still ahead of market indices. Again, a strong book-to-bill ratio of 106%. And we're seeing within Europe, strong steady growth across pretty much all markets, but we're seeing some really growth coming from the construction sector.India with its local market, again, strong across the piece. And within our China business, despite the data that you saw earlier, we are seeing some steady progressive progress. And our margins pretty much flat within Americas and a slight growth within Europe, so really pleasing.Now we touched on that cash flow and working capital. Yes, we had a very good inflow of cash at SEK 111 million, up 42% on that prior year of SEK 78 million. And you can see without that working capital trend that we are leveraging our position, most notably around stock. It is the position we got from our year-end position to our quarter 1 is pretty much flat, but with good growth.Now what does that mean for our net debt and gearing? Well, in the first quarter, we've taken no adjustments within our pension liabilities, which has allowed that cash flow to pay down debt effectively. Reduce debt down to SEK 92 million, was SEK 185 million at the end of quarter 4. And get that gearing ratio down to 9%. And as we've touched upon before, if we eliminate our pension liabilities, the group remains in surplus funds.So it's a really pleasing first quarter results, both in terms of growth against market indices, margin performance and drop-through, our cash management and where we finish with that our gearing at the end of that first quarter. Okay?
Okay. Thanks, Marcus. Comes back to me now to talk about how we see quarter 2 for 2018.Maybe no surprises, the orders we've received during the quarter indicate that the sales in Q2 are basically going to be very similar to quarter 1. This is taking into account the differences in working days, but it looks like we're going to run it at this sort of level. This increased level of orders is good. The market indices that Marcus spoke about, so as the indices are indicating that the full year 2018 is looking like it's going to have a little bit more potential for a little more growth.The 4 sectors that we operated in are always cyclical as we've talked about over many years. But where we are at the moment is all 4 sectors are actually strengthening, and locally and geographically strengthening.Key points, the invested capacity we have to meet this demand is fully in place. That improvement in business excellence is also involved in making sure that we can support any demand coming through on supply base and on our ability to make the pumps.Again, Concentric business, while we've demonstrated the flexibility up and down, of course, the markets in a great position at the moment, but we're always vigilant to see where the market wants to go. And key points, the key word for us is flexibility up or down, we've managed it and we'll manage it well.Final comment, final line, we remain well positioned, financially, operationally to make sure we fully leverage the opportunities in the market.And in those terms, that's what we wanted to update you on today. At this point now, of course, what I'd like to do is, is open up to any questions that people may have.
Mats Liss, Kepler Cheuvreux. But, I guess, one -- well, I have a couple of questions here. First, I mean, raw material prices have come up quite a bit. And if you can say something about -- well, impact during the quarter and going forward?
Okay. Mats, thanks for the question. Metal commodity prices to us is one of the key indicators that we follow because really -- where we see metal prices go drives capital spend, the equipment that we sell pumps towards. We've seen metal price development now being strong for a full 18 months and a little bit longer. What does that mean to us, contractually, because metal prices make up an important part of what we sell, we basically have contracts with customers for metal escalation. So whether metals go up or down, we have a separate line in the invoice, which takes it up or down. So even in a positive market with metal prices going up, it remains a neutral effect to us because we pass those costs forward.
Okay. Great. And secondly, about currency impact. I guess, you had some headwind there in the first quarter. And if you can say something about the remainder of the year?
Okay. I can start and I'll pass it over to Marcus. The key point is the movement of the dollar, the softening of the dollar and we'll talk about transactional and translational movements, but Marcus?
We're hedged as a group going forward on our position, pretty much to the end of year. So the position that we're seeing in our first quarter is pretty much hedged forward. We do get translational effects that we've got and we'll experience and report those. But in terms of going forward, yes, we're reasonably well protected and hedged and shouldn't have a material impact on the business in the after quarters.
And it's not an accident, but where we source material, where we sell material, we try to naturally hedge as far as we can. So we have contracts in place, but natural hedging is one of the underlying foundations within the business.
And I -- well, third one, regarding capacity, I guess, market are running, you know, long very well. And some of your customers have indicated there are some bottlenecks in the supply chain. Have you experienced or could you see some risk there going forward that you will be affected by?
Absolutely. And there has been a sustained increase in demand going across the market. And to my opinion or point of view, the growth we've seen over the last 6, 8, 9 months has been quite steady. So that flexible business model means we have short links to suppliers and short links to customers. So whatever are the strains on the supply chain, we have not been in any position to restrict any of our customers. We've heard customers saying that they've had their output restricted, but we're not those -- we're not that supplier. Again, it is that Business Excellence, that flexibility, we're very close to the market. We listen to the up and the down, and we follow it very quickly. More typically, where we sell on to engine products, the engine is more of a leading indicator to the market. So we have an internal warning system anyway. When we see engines go up, we know that hydraulics are going to follow, visa-versa when engines would go down, hydraulics would follow 3 to 4 months afterwards. So we've internal warning systems too. And once the increase in demand comes through, we've prepared and prepared well.
And finally, just about -- you mentioned, the changeover in China and India to Euro 6, Euro 6 engines and I guess, to be able to continue to state that you need -- well, I guess, contracts already now. Could you say something about those opportunities?
Real time, it's -- it is good news that both India are going for Bharat VI, which is Euro 6 in India. China 6 is based on the same Euro 6 standard. We've been tracking these markets for a very long time. And we've been looking at the press releases. So whether it's 2020 or 2021, based on adoption in cities or pan-country, it seems to be now that the legislation is firming up. Therefore, what we're seeing in those markets is a move towards better emissions equipment. To us, I think, the best opportunity we're going to see is actually for the Alfdex product because the Alfdex product is absolutely fundamental to meet in the Euro 6 emissions. So we have no announcements to make. But I think, we're probably quite excited about what could happen in China for China 6? And China typically works on shorter lead times than the rest of the world. So we don't have the orders to announce, but we are -- we're basically getting production lines in position. We have a factory in Kunshan. We have production lines coming on for the Alfdex products. And again, we're ahead of the curve, and hoping it's a positive development.
I'm [ Johan Stoltz ] from [indiscernible]. Dave, you are clearly outgrowing the market. Could you put some more light for us, how you're doing that? Any specific clients or any segments? It's impressive numbers.
Are we outgrowing the market? I think for a change, we're beating the indices because the -- we always keep the same indices for consistency of message. And typically, we're behind the more, ahead of them. I think what we're happy to say is we're following the market well. And I'd like to say it was all to our own doing, but we're following those 4 sectors. The 4 sectors are moving quickly in a positive direction. I think we're following the market. I don't think we're particularly beating the indices. I think it's a phasing and timing.
Okay. And in ag, what is the latest trends there?
It is positive. I like the ag sector. And when we talk about agriculture, we think of combined harvesters. The supersized factors. Our product goes on to heavy equipment. If we look back over the last 3, 4 years, the ag market has been pretty tough. If you look at small equipment, lawn care, forestry work, dairy equipment, it's actually being quite buoyant. But the heavy, the heavy investment, the big machines have been really, really low. And now, we've seen for 12 months, quarter-on-quarter, ag is improving and we're really pleased. I think it now accounts to something like 9% of our turnover. The direction is positive. But it's still coming from that low base. So again, we still think that there's room for some more growth in there. Commodity prices apply to grain as well. And I think as grain prices push higher, then there will be more movements of bigger investments on to large capital equipment. So steady as it goes, gently up.
This is [indiscernible]. You talked about Europe production capacity. Looking at the, particularly, the North American market, the truck sector is very strong there. How much more can you order intake could you handle before it's actually getting tight?
Okay. Again, very good question. If we look at the product goes into Americas, so that's made in America, made in U.K. and made in India, particularly. If you look at the shift patterns we're running, then our base model is 24 hours and 5 days. That's our base assumption. If we look over the last 12 months, we've been running typically for 2 or 3 shift depending on the demand. We now watch most of those sales move up to the full 3 shift. So we've used the first 30% of capacity. And now, we've started to use Saturdays as the emergency sixth day. And from time-to-time, we have had to go into the Sunday as well. If you want to give a number, we can probably quite easily cope with another 10% of demand, if it's sustained. So again, what we've also done, is we managed our own shutdowns. And we plan not to work in holiday periods. But that's in our back pocket as -- if we need to go further and faster, we can do that too. So plus-10%, plus-15%, we're still quite comfortable.
For the American market, correct, yes.
Correct.
And what about Europe?
Europe is on a steadier footing. And so if we look at the sites that supply into Europe, hydraulics and engines, we are probably -- we've probably got more like 20%, 25% spare capacity yet. I know we always talk about Business Excellence, and this is quite a dual subject. This means relentlessly our manufacturing engineers, the people who actually work the capacity itself are constantly pushing to get more out of the machines. So month-by-month, quarter-by-quarter, we're finding that extra 1%, extra 2%. So again we're really in a good position for that.
And also regarding the growth in Europe and rest of world, it was 11% organically in the quarter. Could you tell us about the mix between the regions? Because you mentioned that China is a bit mixed, is it, yes.
Absolutely. I think it's to Johan's question earlier. In terms of all 4 sectors are moving pretty much in lockstep, we're seeing slightly more excitement on heavy-duty trucks than the other sectors. But they're all moving in that really positive direction. And if I look over a 10-year period or a 15-year period, whatever we see in Europe is always more muted, it's more stable, it's more presentable. The U.S. market has always been more volatile than Europe. So again, we factor that in. There is a difference always between those markets. The underlying European demand to me is a better indicator of where the market is going. For India and China, we're trying hard to grow in those emerging markets. We have a good position in India but sales into China are quite light. So although we've got some quite exciting percentages of the indices in China, our exposure to those percentages is not what we would want. We're working hard and we are winning business in China, but our exposure is quite light. To the other question we have, yet more capacity in India and China, for instance, already prepared.
I also have a question on the interesting topic of EVs. You reported recently that you secured a contract with another OEM. Can you tell us a little bit about this?
Okay. The most -- we're very, very business -- we're very, very busy in electrification and hybrids. And a lot of our engineering resources are looking into that period. The volumes are not great. And but though it's technologically very important to us, because it is defining where the market is going to. I think the most recent one we released, we actually put a name of ZF and ZTrak. Again, not stunning volumes, 5,000 units a year. There are 2 pictures. The important picture is that Concentric is establishing its name and its brand and its capability within that emerging market, within that emerging technology. So yet now, we have that reputation building that we can provide the solution and the subsystem that goes with where the market is going. The volumes for hybrids and electrification, fully electrified vehicles, I think will never be dramatic. If we look to China ironically, I think, there in China last year, they made 100,000 electric buses and coaches compared to the 10,000 in Europe. So the Chinese market is moving ahead faster. Different technology, but it is moving faster. To us, the underlying question, the underlying importance is, what's happening on the hybrid vehicles now that technology, the volumes will never be massive, but what we're trying to do is spin that technology back. So look at the solutions we provide for on-highway equipment, construction equipment, can we put that -- some of that smart electrification in close control into product that will remain on long-haul diesel engines, be it on or off-highway. And that's at the heart of we're excited about. 4, 5 years out, we're going to see more of that technology come on to conventional product.
So if we look at sales and the effect on sales, could you put a time line on how much time will have to pass before we see this?
I think what we said publicly is most of the volumes we're seeing will start in 2019, 2020, '22, '24. So it's a very, very gradual increase. It's a very gentle ramp. There are not big numbers involved. But again, we're not particularly worried about that. Because what we're doing is what's important for our product is it is bulletproof. Our warranty records are excellent. Our performance and reliability are excellent. And what we're doing over these years is showing to the market that what we do for our conventional engines, conventional construction equipment we can do on electrification. So it's a great proving time, it's a great proving period to get the name and the branding position. The numbers overall are quite small. I would said, I would like to but the reality is that they're quite small numbers.
If we look at -- because this is a new technology, I imagine you will have to put a lot of effort and money into understanding it and develop product. How are you funding this innovation?
In a number of ways. I think I message -- when we had -- if memories would go back, we had a fairly tough '16 and first half of '17. And I think the message we sent to the market is, we're a 10-year business, we're looking to 10-year cycles. We always take the long-term view whatever the cycle is going to do to us. And at that time, when markets were down, we actually increased our sales team and increased our engineers. So even back to '16, we had a larger capacity to work on engineering products. Over this time, because it's new technology, we're working with our own engineers. We're working very closely with the customers' engineers in terms of the solutions because the market is evolving. The market is still working at what it wants to be, what it wants to do. So that close tie with a customer is important. But we're also in collaboration work. So we're working with a couple of universities around the world to actually use the step forward technology and the people are specialists in those areas. Separate to that, we're actually pulling in engineers who are based on electric machines.
So all-in-all, it doesn't mean that we will have to see a rise in R&D spending going forward?
There will be a small increase in R&D spend. I'm pleased to say. We've increased it across '16 and '17 and will see small increases again. But I think what we've demonstrated over the years, the best way to get real good R&D is not to invent things from first principles, it's actually to get closer and closer to the customer to find out where they want to go. And develop stuff that they want rather than come up with a great gadget that doesn't really fit for the market.
Do we have any questions from the telephone conference?
[Operator Instructions] We do have a question from Björn Enarson from Danske Bank.
You talked about your growth versus the market, Dave and talked about a little bit about phasing. Should we be a little bit easier on the growth going forward? If you are -- as I understand it, outperforming in the first part of the year, maybe that will normalize for the rest of the year?
I think, your question is right on message. When we look at the outlook, we're saying that quarter 2 for us looks like quarter 1. So although if the indices are very happy, I think the phasing will change. And we do see a little bit more potential to grow in '18. But we think that normalization will come through. Again, we've all got long memories. And over time, we've seen the cycle so many times of demand goes up, customers buy material, that buy more material and they build inventory, and at some point, there is a correction. We have no indication that there's a correction going on. But we're always thinking about how do we manage it. So we think there is a bit more to go. There is a little bit more list in '18, but we're planning on steady. And organizing capacity materially in that way.
Okay. That's fine. Perfect. And on the profitability and I guess, especially in Europe, is that basically volumes on your operating excellence? And thus this leverage and these margins should be sustainable looking ahead?
Precisely. When we talk about operating leverage, what we say to the market is, we look for a 25% drop through, in normal conditions. On an upmarket, we look for the 30%. In the down-facing market, we try to limit any dropout to 20%. So we're always looking 25% plus or minus. We do see that, again, the volumes have been very kind to us. I'd love to say it was all round operating excellence. It's helping absolutely. But again, it is those kind market conditions are listing us as well as operational business excellence. I think it's sustainable is the answer.
Okay. That's a good answer to me, at least. And but looking at many other companies and you're talking about production on Saturdays and even Sundays, typically more expensive. You're not really highlighting that when it comes to leverage?
Correct. And again, without giving the fine granularity of our numbers behind the numbers, but our percentage of direct labor to sales is not a major impact. It's truly important. It's critical for our output, but the movements and whether we pay a premium on the Saturdays or Sundays of 20% or 30% or 50%, in the grand scheme of things, the numbers that you see, take that into account. So it's not a massive driver. If you look at materials, for instance, that will represent 50% or 60% of our revenue. But direct labor, critically important is not a big mover for us.
Fair enough. And these wording on the strength in sales teams to continue to drive growth. Is this to cope with the market? Or is this you're taking shares or winning new clients or is it towards more existing clients?
It's part of our stated ambition over a very long time that we want to grow the business both organically and inorganically by acquisitions. And to actually push on with the organic growth and taking on extra salespeople, whether it's in Europe, U.S. or China or India. It's a necessary investment. So the teams are in place. They are increased. But again, we are looking for them to work a little bit harder yet. It's really part of that growth story. Our numbers are pretty good. But we don't have an ambition for yet a higher percentage of profit, our ambition is to have a good profitability, but on a bigger revenue.
Okay. And really good news this morning also from the big German subsuppliers saying that the diesel is back and emissions are no longer a problem. So I guess, good news for you.
No. No. It's a relevant comment. The diesel is getting so much bad press. It's not as bad as the press would say. And absolutely, electrification and hybridization is reality. Governments can control urban environments and electric hybrid will take over in the cities. But physics applies, if you want to carry 40 tons for 400 kilometers, then the diesel engine is going to be around for a long time yet.
I fully agree. We are on the same page.
There are no further questions at this time.
In the room? Yes.
I guess, you're bored with this question. The balance sheet is very, very strong. And you touched upon M&A activities. Could you elaborate a bit on that? I know it's difficult, but --
Yes. So we start with history. And since 2011, we've made the 2 acquisitions, Licos and the business in Argentina. They've been very successful for us. Licos, in particular, has been a super success. We have trolled over hundreds of target companies. We have a small team within the business which does nothing but roll over opportunities. We have a network of advisors and there -- it's the football analogy, it can be a great game, but people will only ever remember the result. So with nothing to report, I don't believe we're getting closer. But we've got nothing to report at this point. That twin track approach of organic growth and inorganic growth is not going away. Listening to the movement on both technology and geographical footprint, your understanding we're still following both lines. Nothing to report yet, but it's not for lack of an effort.
Follow-up on that one. I guess, I mean, given the outlook you would probably continue to grow the balance sheet in a very fine way. And should we expect the opportunities in the M&A area to balance the opportunities to divest? Or I mean, share buybacks, et cetera, or will you keep a stable view in that sense?
I think what we've seen is our modus operandi is consistent with what we've done over the last 3, 4 years. And we have a stated policy on dividends to give back to investors 1/3 of free cash. And with the dividend we just announced a month-or-so back, the SEK 3.75. We're actually pushing back with the extra dividend, 50% of free cash back to the investors. We've been buying back over each quarter other than the first quarter of each year, SEK 50 million of our own shares. We have the AGM later on today. So there is still a mandate to buy back shares. And we still have a strong cash position. From my position as a CEO, the best thing we'd like to do is not go back on the extra dividends, and the buybacks is to actually buy and invest in a new target. And I think, with the tools we have, any business that we will acquire, we will make it better. And I think there's more shareholder value in us making the acquisition. But we've got that test, to say what comes in, needs to be a good business. It needs to be something that we can drive and lift higher. So for the moment, it's status quo share buybacks and extra dividend.
Okay. And one, about the strong first quarter and again, I guess, you mentioned that customers are maybe growing inventory to some extent? And is that a secure supply or is it more like only to meet orders they have on hand?
I think I'm an old guy, and I've seen so many of these cycles. We understand if they want to make 1,000 of something, if there is a concern that they can't get 1,000 pieces of equipment, they will order 1,100 in the hope that they get the 1,000. So I would guess, I would guess what we see at the moment is an extra provisioning of material to cover potential shortages. So again, I think there has to be a correction at some point. And we can't change how they behave in their procurement, but what we can do is really keep our senses absolutely on the market and be ready to move up or down, and that's what Concentric does very well with that flexibility of approach.
And one final one about pricing, I guess, with these market conditions you will probably be able to negotiate pricing somewhat easier than in a downturn?
Again, pricing to us is quite flat to neutral. And the added activity is helping us massively in terms of drop through of pricing leverage. Materials which could have been a big issue if we didn't have metal escalation contracts. So to us neutral and vanilla flavor average is fine. Again, we're satisfied with the drop through. Our ambition is to say, how do we go for more market share?
Okay. Thank you. David, any closing comments?
No. I'd like to say that's everything we wanted to say. And thank you for showing up. Thank you for the questions, the interest. It's always a pleasure. And thanks also to Marcus for his first quarterly. Really enjoyed it.
Thank you.
Thanks, everyone. Have a good day.