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Welcome to the Nederman Holding Q2 presentation for 2023. [Operator Instructions]
Now I will hand the conference over to CEO, Sven Kristensson; and CFO, Matthew Cusick. Please go ahead.
Good morning, everyone, and welcome to this quarterly report session. We have, this morning, released a report for the second quarter 2023, and we can conclude that we have a continued positive trend. We have record quarterly order intake, record quarterly sales and record quarterly profit. We can also say that product and technology development launches have generated customer interest and also demand for orders. Good development in growing segments. However, there are some challenges that remain. We have a slightly negative organic order intake growth in the quarter, and the backlog has declined somewhat from the peak levels. We can clearly see the inflationary pressure on margins, especially in the local sales organization. And as you all know, new political uncertainty remains, and the Chinese market remains very slow.
If I take you on to Slide 4 and go -- and start going through some of the key financials. As Sven mentioned, record orders received. They developed well in the quarter. We've got a solid foundation for sales in the coming quarter. This is quite important for us, the order intake figures at the moment.
Currency neutral, in quarter 2, we increased by 5.6% to SEK 1.546 billion. Organically, that was a decline of 2.1%. For the year-to-date, orders received a currency neutral up 5.8% and organically actually down to minus 2.6%. Orders for the year-to-date 6 months in SEK 3.051 billion. If you look at the bridges on the bottom of this chart, I think they're quite clear, it shows where the growth is coming from. We have some boost in terms of sales revenue from currency. It doesn't affect profit anywhere near as much as this, of course. But the biggest chunk of the growth has come from the acquisition, largely [ rolled ] event, but we've made a couple of 2 other smaller ones in MBE and Ezi-Duct and East in Australia. And the picture is very much the same for both of -- both the quarter and the year-to-date.
If I move on to Slide 5 and go through sales. All 4 divisions did rather well on sales, significant organic currency neutral and organic growth is what we can say. Sales for the second quarter, SEK 1.631 billion. For the year-to-date, we're on SEK 3.113 billion. The bridge looks a little bit different in characteristics to the order one with organic growth in sales, some currency assistance and then acquisitions are obviously boosting as well.
Profitability, the most profitable quarter in Nederman's history, as Sven mentioned, adjusted EBITA was SEK 195 million versus SEK 125 million in quarter 2 last year. That gave us a margin of 12% versus 10.6%, which is definitely a positive trend. Profit after tax, SEK 100 million versus SEK 75 million last year, gives us earnings per share of SEK 2.86 versus SEK 2.13 last year.
Year-to-date. EBITA is now SEK 368 million, which is 11.8% in margin. Profit after tax now SEK 178 million versus SEK 145 million at the same point last year, which means earnings per share SEK 5.08 versus SEK 4.14 last year.
Reasonably good cash flow development as well in the year. We have a strong quarter 1 already. Cash flow from operations for the quarter was SEK 98 million, which is slightly lower than the very strong quarter 2 last year, SEK 148 million. But year-to-date, cash flow from operations is SEK 227 million versus SEK 140 million last year. A very small -- relatively small increase in net debt can be noted versus the prior year-end. Obviously, since this point last year, there's a rather significant increase due to the acquisitions that we have made. The main reasons for the increase in net debt since the year-end or first of all, currency with some of our debt being in U.S. dollars and then converted to Swedish krona, it goes up. And then we have made some significant capital investments in our operations in Thomasville in the U.S. and also paid out a dividend of approximately SEK 132 million, which I'm sure our shareholders appreciated.
If we go on to the divisions and Slide #9, Sven, first is Extraction & Filtration Technology.
Yes. Extraction & Filtration Technology, as you now is trading mainly under the brand name Nederman. Focus application areas is food, welding and composite manufacturing and general dust application. We can conclude the quarter with solid core business. However, there was a negative organic order growth versus the very, very strong Q2 2022. There were fewer major orders, only a handful of them in this period, and that can probably be related to the fact that the uncertainties in the market makes investment, larger investments sort of more slow in their decision process. We have received increased orders in prioritized growth segments we have had in food, transport, green energy, defense industry. We have some example, a lot one in waste recycling in Poland, battery manufacturing in Spain, solar panel manufacturing in U.S. All things we've been active in earlier, but where we see a growing investment pattern.
We have higher sales volume, and that has been positive for profitability. But we have had some margin reviews showing reduction, and that has been mainly high share of solution sales. The inflationary pressure on expenses, which is high. We have had a slightly lower margin in RoboVent, but they are improving all according to the plan. So the margins in RoboVent sales are significantly higher this quarter than 1 year ago.
In the regions, we booked 4 major orders in Americas, and it was free for wood and aerospace. Our large business is wood and it is in welding application on the U.S. market. We have one major order in China, which is good. It is in health care. We have seen significant sales increase in EMEA. But there has been an absence of larger solutions sales orders compared to last year.
We have strong sales in RoboVent, whereas in the Wood segment, it's been slower on the U.S. market. As I mentioned, RoboVent develops according to plan, and they are increasing their margins and profitability and we have continued improvement plans when it comes to supply chain and et cetera.
Orders increased also in APAC, but the sales was down due to a very, very small opening backlog. We've got some midsized orders and they are secured in the APAC region. And the project to relocate the operations in China is proceeding according to plan and will be finalized by the end of August.
Some other key activities has been the launch of a new Fume Eliminator mainly for portfolios in the Welding segment. We have new ATEX hose reel for effective management of emission from gas and hybrid operations in public transport. When you are using gas and other high-temperature solutions, you need to have special equipment.
We have continued to roll out the Nederman sale, and we had a big launch at the Ligna woodworking fare in Germany, and we will do for Americas AWFS that's coming up in 2 weeks from now in Atlanta.
SAVE is an energy saving system that has caught a lot of interest in the market. We have also continued to improve our manufacturing sites. And again, we had an inauguration of a new painting line in Poland to further strengthen our efficiency in that more and more modern factory.
When it comes to financials for Extraction & Filtration Technology, strong orders received SEK 657 million, is a 5.2% currency neutral growth like as Sven mentioned, negative organically. Sales extremely strong as well, SEK 627 million versus SEK 475 million in the same quarter last year. And the adjusted EBITA ended at SEK 85 million versus SEK 80 million in quarter 2 2022. That gave a margin of 13.5% for the quarter. For the year-to-date, the margin is 14%, which is equivalent to SEK 173 million versus SEK 162 million in the same quarter last year. Let's move on to Process Technology. Sven?
Yes. Process Technology had a very strong quarter. The development during the quarter, we had a solid order intake. There are differences in different segments. We will come back to that. We have had significant sales growth in all segments, in all regions and both in solutions and service. Our activity to grow service content in our business are continuing to pay off, and we grew also this quarter. It's been the most profitable quarter ever for this division.
Going to Textile and Fibre, where we trade on under the brand named [ Luwa ]. Orders received declined versus a very strong Q2 2022, but it was in line with Q1 2023. We have, due to the strong backlog seen a sharp increase in the sales and the invoicing. What we could see is generally, the textile market globally is weaker, and we've seen a weakening demand in China, whereas India has been performing well and continued to take market share in this market and some others that is served from India. There's been a big interest in Division solutions, including new fan system, providing significant energy saving. Energy savings is of big importance and the new fan that we launched this spring has caught a lot of the customers' interest.
If you go to foundry and smelters, we have seen an increased demand from metal recycling, especially in U.S. Metal recycling has been an issue in Europe for a long time. And if you go for aluminum, I think 80% to 90% the whole used aluminum will be recycled in Europe, whereas it is less than half of that percentage in U.S., but that's a growing interest. We have booked several major orders, and we had an overall strong growth in both order sales and profitabilities in foundries and smelters. When it comes to customized solutions, there was a healthy order intake, strong mining sector in Australia. We did some in Indian petrochemical in line with the globalization strategy, where we are bringing technology that has mainly been developed in the U.S. hub and now more on the global arena.
The key activities: One, of course, the ITMA show where we had a lot of general interest, and we further strengthen our position as a leading supplier, especially they have an interest in our new CFB fan that saves energy. It's a unique [ core ] blade fan that through more efficient air handling can save at least 4% of the energy consumption. It doesn't sound a lot, but it is -- if you compare, you can have very short payback time on this.
We have continued to invest in our plants and new painting line, sandblasting and upgrading in the German plant where we produce -- it's a main production hub for the Foundry and Smelters solutions, the F&S. This restructuring program that is proceeding according to plan and the cooperation here been with the other division, especially EFT and the co-location [indiscernible] everything according to plan.
We spend a little time looking at the very impressive financials for Process Technology division. Order intake was SEK 510 million, which is still extremely strong. 4.8% organic growth versus the same quarter last year is extremely pleasing. Sales were very high. This has been maybe expected, given the backlog levels of SEK 644 million versus SEK 383 million in the last year is a currency-neutral increase of 59%. And with that, the adjusted EBITA totaled SEK 74 million versus SEK 14 million in Q2 2022. That means that an EBITA margin of 11.5% versus 3.8% in quarter 2 last year. So far for the year, EBITA at SEK 116 million for the first 6 months versus SEK 25 million in the first 6 months of '22, means an EBITA margin year-to-date of 10.1% for Process Technology division.
We move on to Slide 11 and Monitoring & Control Technology. Sven?
Yes, Monitoring & Control, this is where we have our control systems, our monitoring -- gas and particle monitoring under different brand names under the umbrella of Nederman, like Gasmet, NEO Monitors, Auburn FilterSense, Insight, et cetera. Monitoring & Control, we had a development during the quarter that was very positive in order intake. We continue to have all brands growing. Americas and APAC were the strongest regions because we have now got some speed to a new setup when it comes to our sales structures, especially in Americas. So still just in the beginning of that process. We have much more to do there. Profitability was strong. We had higher sales volume and better functioning component supply. There are still issues when it comes to component supply in certain. And that means that we have larger, we have -- we fill up our warehouses a little bit more than we would like to, but we need to do that in order to continue to secure a reasonable supply time to our customers.
In EMEA, orders and sales increased versus Q2 last year, and we have seen higher activity, both Gasmet and NEO Monitors. We grew well in most geographies with some exception on Germany and Finland where we saw it slowing -- a slower market.
In APAC, Positive trend for orders and sales continued. Gasmet booked new large orders in several countries, and the recovery in APAC has been better than expected, but there are uncertainty whether this is a long-term trend. We see -- we're worrying. We have discussed about buying Chinese, et cetera, and push for that, which could be a hampering factor. However, our superiority in technology has counter that fairly efficiently. So far, we'll see for the future. We are happy for the strong success so far.
In Americas, we had strong sales and orders received. NEO Monitors sales more than doubled because we got several major orders to the petrochemical industry. And this is a result of our strategies 2 years back to grow our own sales organization and go more direct to the end user.
Gasmet performed well and for the new portable analyzer for various applications, we had a successful launch. Auburn FilterSense were restricted due to capacity limitation during the implementation of a new ERP system. We will secure that, we will get back to the third quarter here.
Key activities, the new GT6000 Mobilis is a very interesting name for a product. All technicians are happy to hear that this portable emission analyzer is generating much interest and many new orders. We are working hard to be able to meet the demand.
Inventory has been maintained at a high level to ensure deliveries to customers, as I mentioned before. We are trying to reduce the levels in a very controlled manner since we see a slightly better fine-tuning component supply.
Financials for Monitoring & Control Technology division, order intake, SEK 186 million versus the SEK 161 million in quarter 2 last year is a 12.1% currency-neutral growth. Sales, SEK 177 million, which is a significant increase versus SEK 149 million in quarter 2 last year, 14.4% to be precise. And an adjusted EBITA of SEK 34 million currently versus SEK 26 million in 2022, gives a margin of 19.3%, which coincidentally is the same margin as the first quarter, meaning the year-to-date margin 19.3% is SEK 67.2 million up from SEK 43.8 million EBITA in quarter 2 -- in the year-to-date 2022. So solid profitability development for this division. You move on to Duct & Filter technology. Sven?
Yes. Duct & Filter, where we supply duct -- special ductwork and filter, both externally under the brand Nordfab and Menardi, and to internal use in the other divisions. The development during the quarter was good. We had sales and order growth versus both last year comparatives and to last quarter. The profitability was strong. We had higher volumes, improved production and inventory process on the way. If we look at the Nordfab, the total orders received declined slightly versus Q2 a year ago. There were fewer orders in the core segments such as wood, and we've seen the saying that the wood industry has gone backwards a little bit this quarter, both in U.S. and in Europe, and we can see that also on the Nordfab side.
We got several orders that we secured in new areas where we have introduced our system. And that is aerospace, it's been in food, it's been in battery manufacturing and also in some recycling industry. We increased sales in U.S. We improved definitely the productive performance and that helped to increase the profitability in the U.S. operations.
We saw EMEA decline a bit with an exception at U.K. where we had the best quarter ever. And this is not due to a booming market, but we are significantly taking market share with our new setup.
The Thai orders increased a little bit versus first quarter this year, but declined with comparison to last year. And we had a slight decline in Australia versus a very strong Q1.
In Menardi, highest ever quarterly orders received, many small improvement to sales activity has given a strong increase in our order portfolio. Profitability known historically very strong level for this area.
Key activities. We have pilot launch over the Nordfab Damper Control, a simple, effective energy efficiency solution. And we have continued the work to renew and update the factories and the manufacturing capabilities. And we have taken into use gradually, the investment -- the large investment in new warehouse and manufacturing in Thomasville U.S. And we have also now a 10,000 square meter solar panel facility on the roof of Nordfab U.S. building. It will be connected to the grid during this month fully. And it's not we that did lag. We are going to be the largest private solar panel user in Carolinas and they had some difficulty to connect us to the grid. But it will be finalized in July. Again, a part of our sustainability activities to stay ahead.
We have also had the campaign, "The Unexpected Superhero" and that is a part of the 50 years and 110 years celebration. 50 years for Nordfab and 110 years for Menardi. And that's to support and also highlight the good performance among our employees.
Financials for Duct & Filter technology, orders received increased currency neutral with 2.7% organically, 1.7% and we're at SEK 193 million for the second quarter of this year. Total sales, SEK 216 million versus SEK 190 million last year is a 4.8% currency-neutral increase. And adjusted EBITA ended at SEK 41 million versus SEK 28 million in quarter 2 last year, which is an EBITA margin of 18.9%. And year-to-date, the EBITA margin is up at a very healthy 19.3%, that's SEK 83 million in real money versus SEK 60 million for the year-to-date last year.
Okay. Outlook. Very interesting to guess the future. If we start to say we have orders received that has remained solid, although we have had a slight decline in this quarter on order intake. Our base business and strong digital offering enables us to assert ourselves well in the current market. Risk of problems in the supply chain There is high inflationary pressure and weaker economic prospects that can impact customers' investment decisions. Such a scenario could impact Nederman's own production delivered capacity.
There is continued geopolitical uncertainty. Our order backlog, however, remains strong, even if now behind peak levels seen previously. This, combined with our ability to grow sales to industries with good structural growth, means we have a positive view for the next quarter, but remain more uncertain regarding development in subsequent quarters. Although various factors may temporarily contribute to dampen the outlook, Nederman's long-term potential continues to strengthen in a world in which insight into damage that poor air does to people is increasing. Nederman with its leading industrial air filtration offering has a key role to play in good positive possibilities for the continued growth.
Very briefly, the financial calendar. The next quarterly report quarter 3 will be released on the 23rd of October this year and the year-end report for 2023 will be released on the 15th of February 2024.
And with that, I think we can open up for any questions that listeners might have.
[Operator Instructions] The next question comes from Anna Widström from Handelsbanken.
So firstly, I would like to dive in a bit into process technology. I mean, this is a very, very unprecedented margin development that we saw during the quarter. Could you maybe give us some more details specifically on what's driven these sort of margin expansion? Because obviously, as you said, you have had solid sales developments thereon, but if we go in a bit more detail on what's driving the margin expansion in this quarter?
Should I make a start on that and what 1we can say, Anna, is that we have delivered well on the projects that we have taken. What we typically see in this division is if you -- if we deliver more solution sales versus the service sales, you might see a slight decline in the overall margin, but we have given that service is more profitable normally, we have, however, worked over a long period of time, particularly in the Luwa business, for example, to drive up our margins on projects and also reduce the risk taken on our projects. And both of those elements have worked out extremely well for us in the quarter.
Then of course, you have the pure volume absorption of the fixed costs in the business. If we're trying to look forward a little bit, we can't expect to be doing significantly over SEK 600 million in sales every quarter, and I actually didn't mention that on the slide regarding process technology, but you can now see a slight drop in the backlog. However, the outlook for quarter 3 is probably rather good. But this division -- the final point I ought to make is this division, remember, is extremely strong typically from a return on capital employed perspective. Right now, it's very, very high, even with a margin of 7% or 8%. Their return on capital employed is significantly above the target of 15% for the Nederman group.
It's more than double.
Yes. It's more than double right now.
May I just complement a little bit. This has been the task, and we have said that it will come. There has been and there still in this generally in this business a strive for growth in top line, et cetera. And the focus in the division has been a clear focus in growing the profitable part, especially, we continue to significantly grow the aftermarket. We develop and launch new tools like Gasmet Insight that was launched in March, mid-March 17th March or something, where we can have service calibration work in the future being done remotely. Again, things at focus on the aftermarket and focused on profitable orders. So we continue to grow the aftermarket.
We have focused and [ carved out ] in stocks, focusing and growing in areas that we do not see that we had such an advanced solution that it's more profitable than average. So we have also focused on efficiency by using what we call more closer to configurated systems like the success in the recycling smelters, foundries, et cetera, in U.S., where we have introduced, I call it, European -- German technology that has been a problem, both internally and externally to get an acceptance from. But when it is -- it's a very efficient solution that is preconfigured to a certain extent, it's efficient, it's known technology. The project turns out well.
Having said that, we are very pleased with all the development, and we believe that we can continue to have significantly better margins than historically, but you cannot expect the 11.5% every month. We have a long-term target to be around 8% in this division. And if we do that, we are significantly above the return on capital employed that we have as our official target. Sorry for talking too much, Anna, but I have to.
It's very positive from my side. So maybe just going -- speaking to these here because it sounds a bit like you're trying to make sure that we don't expect 11% going forward in Q3 and Q4. Is that correct?
Correct. Yes, correct.
Good. And a more general question. What trends did you note is during the quarter? Did you see anything that was significantly different in the beginning of the quarter in comparison to the end of the quarter?
The end of the quarter was better than the beginning of the quarter. Probably, there was a peak in uncertainties during April as well as people had long Easter vacation, especially in and around Southern Europe and so on there. So we saw a better view than April. I can't say it's -- your guess is as good as mine, but it's been -- there were a lot of negative things going on in April in the world. So probably that had an impact.
Okay. Good. And if we go into expectations on inventory levels, you did mention it based on the Monitoring & Control business. But -- on group level, what should we expect? And what will you try to deliver for the rest of the year?
The inventory will come down somewhat from where it is now. What -- if I start with Monitoring & Control, that's where we've got a specific task to get it down. I would say that they're pushing to take it down. But like we say, in a controlled manner. I actually hope -- and now I should -- I'm thinking that someone is going to be listening from that division. I hope that the inventing leveling in monetary value is probably the correct level because they need to continue to grow. That will, therefore, bring down the inventory days somewhat. But overall, it's not a -- for that division, it could be a reasonably good decrease. But from a group cash flow perspective change, I don't think you can expect a major difference here in inventory, particularly if this order intake level that we saw in [indiscernible], which was very good holds.
Yes, that sounds reasonable. How is everything going with the new sites? Does they seem to go according to plan?
If we say the new site in Helsingborg, that is -- there's some walls up there now and the roof actually on the office building. But that is progressing according to plan, and the move is scheduled for quarter 3, 2024. When it comes to the Thomasville plant, which is the other one where we've made a major investment, that one is much further ahead. Of course, as we've mentioned. They are moving into there. They're working on optimized -- the full workspace actually is not being utilized right now, we're making sure that they don't just spread out in there. We want to optimize the layout and the flow in a sensible manner, and there is some more machinery investments to come there. One thing that we will see is a reduction on energy costs from these solar panels, like Sven mentioned. It's the biggest private solar energy producer in the whole of North Carolina. Yes, it's actually quite a big site.
And also, if you look at the changes in China are going according to plan. We do not own those buildings, but we are moving in also there. So we are continuing to invest in capability and efficiency and parts of the increased profitability of bounce back in profitability in Nordfab comes from the fact that we now have taken in new machinery that are in full operation, and we have phased out the old stuff that has had an impact on the efficiency. So we continue that work.
As also, we have, over the years, made significant investments in our Polish factory. And as I mentioned, we inaugurated the new paint line that would further both from an environmental point of view, but also from an efficiency point of view. So we have a lot of pressure now for the sales organization and EFT division to sell more because we have more capacity in a more efficient way. So we continue on those fronts, and we believe that we can stay ahead with these activities.
Okay, good. I think this is my final question. I noticed that you do have a positive organic growth in your business areas that are also growing. Would you like to highlight any out of the margin expectations that you have in addition to the ones on process technology and [indiscernible] on the rest of 2023?
One, we can -- what I can say something -- Monitoring & Control Technology, they're up at 19.3%, pretty sure that's where they are for the first 6 months. You can argue that they could go even higher than that, we would perhaps prefer them to grow even faster than the average of the Nederman Group. And that is one of that growth, actually, growing monitoring and control technology faster than the other divisions is one of the targets that we have in order to get towards our 14% EBITA target for the whole group. We're on 12% to date, growing our more profitable business faster. That's the one where I would say they're probably where they need to be or not very far away from it in margin terms. The other 2 divisions you can look at historically where they've been and how they're doing, and I think you'll make some rather good assumptions on where we think they should be.
The next question comes from unknown caller.
This is the unknown caller Gustav Lonsever from Cargo Fund. I don't know what went wrong. But anyway, congratulations to great reports. It's wonderful to see how you make the company grow slowly, but certainly over all the years we've been shareholders. So that's great. One question on extraction inflation. You said you had inflation on expenses there. And I also saw that organic growth was a bit slow. Is it impossible to sort of move that inflationary on expenses over to the customers? How does the competitive landscape look? Is it tougher than in other divisions?
If I can answer, yes, of course, it can be and should be pushed upon. EFT has a challenge and further have lots of smaller regional local competitors that sometimes here, especially we've seen in Germany where you've seen also the confidence indicators going down. And smaller businesses where they focus more on filling the local manufacturing site than having a reasonable fight.
So there has been some of that. There has, of course, been also more inflationary pressure on transport salaries, all of that. And it takes some time to -- it's taken slightly more time to get the latter part of it in the installation and latter part [ interface ] companies to move over than we would like it to take. But we are continuing to push up prices. We are working on that all the time. The division management are very much aware of it and working with it. So -- and we also have to remember, they have been extremely successful over a number of years to push them up themselves in the pricing sector. And we are significantly more expensive than most of our local competitors. So it's a matter of time here.
Okay. My second and final question is about China, it would be interesting to hear because is it two-sided pictures I see it here. You get some great orders in Extraction and Filtration technology, both large orders and midsized orders, then you have difficulty in Luwa on the tech sales side. Most companies deal with China, and it's a very big country. It would be interesting to hear if you have any idea about the explanation behind this? I'm thinking like the explanation could be internal demand in China for expanding their own factories and textiles, maybe export-oriented business. I don't know, we're interested to hear your take on that.
If you take the textile, the global textile business is significantly down. And if you want to go deep or anything you can read. [ Swiss, Rieter ] is a large spinning supplier, and you can -- well, I have to think some more. The activity in the textile industry is very slow this year and especially in China. And China, has got significant problems. Everybody has been talking about that now they are opening and so on. But as I suspected, as said a quarter ago, China is not having a very healthy economy and now we see also report some of that. So that's a part.
However, if you then look at the MCT side of it, measuring from Gasmet and from NEO Monitors, we are on the sort of upper level, very high-tech solutions in environmental technology and measurement. We have to admit that the Chinese authorities are going after the polluters, and are investing in both cleaning up their coal fire -- coal power plants -- fire coal plants and then a lot of other things. And that has been then a need for high-end measurement technology.
There is, of course, discussions ongoing as we mentioned, which is a potential threat in the future. We don't know this restrictions on buying imported goods that they should -- especially on state-owned or state or government-related companies they should buy Chinese.
We also noticed that the local provincial government's economy is not very strong, which means that we have to fight to get the prepayment, et cetera, et cetera. So generally, I would say China is not extremely strong economy. The traditional areas are not booming. And they also see that a lot of the textile industry start to invest outside China. And that has been something that's been ongoing for some time as well. So we see that we take good orders in the declining market from our Chinese operation who are supplying -- sorry, the Indian operation supplying the neighboring countries, Indonesia, Cambodia, and also others. So it's a complex situation. But generally speaking, I don't think China is going to boom for the coming years.
There are no more questions at this time. So I hand the conference back to the speakers for any closing comments.
Well, then we thank you for taking time listening to us and say, having good and great summer vacation whenever it comes. Thank you.