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Intrinsic Value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.
So welcome. Just some information regarding the questions. [Operator Instructions]So Christoph, sorry, once again, please, the floor is yours.
Yes. Thanks a lot, Olaf, Warm welcome to all of you. Nice to have you here for the conference call of Krones, and we already skipped the first slide and are immediately in the highlights of the first quarter. Again, Norbert and myself, we are a bit more relaxed than in the past since things are going quite well. We have tailwinds from the market, and we have a team, which is quite strong on execution as things are moving forward. And I would say we are on the track to achieve our targets.Order intake was up by 40% in the first half of 2021, quite remarkable. We have not expected it on that level. I have to be honest, it's better than expected. We'll talk about the uncertainty later on. And of course, we brought in now the price increase of 6% for our new machines, which we are going to deal with in the market. And we are, let me say, slightly optimistic that we get that move forward.Revenue was not so much up in the first half of 2021. Why? Because Q1 was quite strong last year, and that's the reason for it. But it picked up in the second quarter, more to come. And of course, profitability, significantly improved. We'll talk about that later on in detail. The important message here, EBITDA margin is at 8%, which is extremely good from our point of view after where we have been going through. And again, we have increased our guidance for 2021. I think you all of you know the numbers, and we are going to get one deeper in detail.So we jump to the next slide and come to the, let me say, a summary of what I have just said, and I don't want to comment those numbers because Norbert will in particular go through the details. I will take the order intake for the beginning, and then Norbert will take over for revenue, profitability and, of course, of free cash flow and working capital.So let's jump first to the order intake. And I would say there is not much to say about the numbers itself. You have heard it's 40% up. We had a quite good order intake over the recent last 3 quarters, which we have reported. And I want to highlight a bit why, let me say, the order intake is higher than expected and where are the deviations from what we have stated previously.I mean most of you remember that Norbert and myself and of course our colleague on the Board for sales, we had many, many discussions with our customers in autumn 2020. And all of them stated that they will have cut their investment budget significantly.Now why is the order intake so high? Number one, of course, the aftersales business is working quite well. Second, we have seen a private-owned company investing much more beyond the trend, let me say, in the last 6 months while the big international key accounts, they are sticking in most of the cases to their statements they have made in autumn 2020, saying they have lower budgets, it's a very big one we have with the red color is one of these examples. But on the other side, this is giving us momentum definitely for, let me say, a confidence into the future because they believe they will pick up and they will go run back to old levels, which we have seen. So all in all, we are extremely happy with the order intake we have.Of course, we have to talk about pricing in that regard. And this will reflect certainly later on when we have to say again increased prices by 6% officially to the market. Of course, it will take time before we have that in the books and this will mainly impact then the orders being executed and being in the backlog for 2022 rather than for 2021. But I think we will talk about that in detail later on. We are fully booked with that, of course. And this will create what Norbert will talk about that some other problems, in particular with material supply where we will talk later on.So that's so far for me, and I hand over to Norbert.
Okay. Thank you very much, and also a warm welcome from my side. Before I come to the next chart talking about revenues, you can see on this chart here also the development of order backlog. And that's basically the gap that's missing between big increase in order intake, but year-to-date, hardly any increase in sales year-to-date. The remaining part, more than EUR 300 million is the increase in order backlog, which will materialize then in the second half of this year and also next year.So I would now go to Slide #5. For those of you who cannot see the slides, maybe because you're on the phone somewhere, revenue EUR 1.720 billion, which is very close to half year last year, only 1.3% above. But you can see already in Q2, it picked up. Q1 was still below last year in sales, 7.2% Q2, 11.7% above the second quarter last year, and we expect in the second half an increase compared to the second half of last year, just for the next 2 quarters between 12% and 17%, which will then bring us to full year 7% to 9% increase in sales compared to last year.When we continue and we look at how the revenues developed in the first half this year compared especially to last year, we see a positive development in North and Central America and in China. This is not surprising to us. Similar situation in the financial crisis 2009/'10, China was first to come out of the crisis, then same this time and then right after North America. A little bit of a surprise for us was South America with a very good order situation -- revenue situation still in the first half year.Also, the order situation was good in the first half. That's because there were also private-owned or more independent companies lagging behind still Europe. Their share or our share in Europe of total sales decreased from last year, almost 32% to 29.8%. And Asia Pacific still below, whereas Middle East, Africa and Eastern Europe are more or less on the same level.We continue. When we look at the EBITDA margin and the EBITDA result, the EBITDA result increased to almost EUR 138 million and 8%. So the development from 2019, '20, '21, 6.2%, 7%, 8%, always on the first 6 months. And of course, our ambition is to continue this trend for the future.Similar on the EBT level, here, of course, we do not see the -- or we see the impact of the impairments that we had last year that are not included in the EBITDA. So here is a significant increase from the 1.9% last year and the 2.5% before corona to the 4.4% year-to-date, which is a result of improved business, of course, but primarily on the structural measures that started already in 2019 and then were accelerated with corona in 2020 and '21.On the next page, Page #9, you see the development of personnel expenses and material expenses. So the personnel expenses close to last year despite EUR 5 million onetime payment to our employees in Germany. But when you compare it to 2019, it's net EUR 45 million or 7% less for the first 6 months compared to 2019.On the materials side, material expenses, they are going up, and the ratio is also going up from 47.7% last year to 49.2%. Still below 2019, but the increase, of course, is a result of increased raw material prices, component prices also temporary labor has been increased attempts in preparation to work off the big order backlog and increased revenues in the second half of this year. So both those impacts are shown here in the increased material expense ratio.Okay. And this is, of course, one of the hot topics since months, material expenses. The challenges in the supply chains are twofold. One is price and the other one is availability. And we don't know what is more challenging. We saw significant price increases in the first half of this year, beginning end of last year from raw materials, components, freight, packaging, everything. Freight costs, for example, from Europe to U.S. shipped is more than double of end of last year. We have topics with simple stuff like wood, which what we need for our packaging, wood prices exploded. And so that's also one side of our price increase. Because overall, we have around, on our products, 4% impact on material price increase.Now if you're asking, okay, you announced 6% price increase. If material is 4%, what is the rest is basically what we lost from before corona price levels to -- due to corona and shrinking demand, a 1.5% to 2%. And now is the time with good capacity load to also get the old price level back from before corona prices. So besides the price topic, the availability is also a big challenge. All of you have read about shutdowns of primarily automotive suppliers who had to send people home or sending people home because parts are missing, and they cannot continue to produce.Now of course, we are in a different situation here. We have no assembly lines like automotive. We are in the project business, and we have much more flexibility in -- starting from the order intake, where we, of course, have possibilities with our customers to say, okay, when the project should be executed, and we can steer that to a certain extent. And then we have comparable big flexibility during our lead times to change things alone with our suppliers, with the customers. And our project lead times are between, let's say, 4 months and 2 years, most of the projects. And during this time, there's a lot of flexibility and options for us to substitute components, to substitute comp suppliers who cannot temporarily deliver or not deliver enough.We also have a production network where we can in-source, outsource, very flexible. And we can even change the -- to a certain extent, our equipment and reengineer certain parts so that we can use other components or sometimes use higher, let's say, value components because the standard ones are not available. So there's a lot of flexibility that our team and workforce has in the supply chain.Of course, we have longer, let's say, inventory reach compared to mass production for standard parts. And just to give you an idea, we have about 16,000 suppliers, and we source around 450,000 active parts and components. So that's a huge variety of products that we are always sourcing. And we always have something coming late or coming not, and then we have to switch to get our projects together. So this is not new to us. However, the magnitude is new to us. And it's not in a wide range from the 450,000 parts and components. We are sourcing around 200 are critical and around 20 are very critical.And I mean, in the end, it still comes down if the equipment is all built, everything is there, but 2 parts are missing, then still the equipment is not running if the 2 parts are missing. At this point of time, it's manageable for us. So we don't have to send people out, but it's a challenge for the organization. And it comes with additional internal efforts and costs to do the workarounds. That's, I think, a fair statement at this point of time.And on the next slide, we try to make, let's say, a little bit superficial, but still a comparison between our projects and engineered to order business versus, let's say, a serial production with assembly lines and starting from order intake flexibility to scheduling flexibility what we have to the also comparable high internal value generation, what we still have. We still have around 50% in our hands, and we can shift flexible between what we do versus what our suppliers do.Sometimes a supplier cannot deliver because some more or less easy parts are missing, and he cannot source it and then we can produce the parts. And if it's a supplier and then he can finish the components for us and things like that. Plus, we increased inventory over the last 2, 3 months in very, let's say, critical area, business critical, for example, spare parts or what the customers need on short notice to prevent breakdowns or standstills.
Let me add one thing because Norbert mentioned that we were even talking to our customers in order to shift some of the lines we have sold. I mean these are quite unpleasant discussions we have at the moment. But I would say there is something changing in the customer environment that they get aware of that's number one. They have problems themselves to keep the schedules of preparing, let me say, the new facilities wire lines going in.So that is helping us to a certain extent. And they are more flexible in really discussing if we can adapt some of the scheduling of the line. This is new. We have not seen that before, and some of the customers are certainly not, let me say, allowing for any renegotiations, but those who are allowing for that will give us some flexibility in that as well. So that's something new, which we have not seen. And I think -- I thought it's worth to mention.
And what we see is that the availability issues for the most parts, that the situation will ease up by the end of this year. But one issue will remain and will remain minimum until middle of next year, that is the chip shortage worldwide because it just takes a rather long time for the chip manufacturers to ramp up capacities. And we are not purchasing chips directly but our suppliers have chips in the components, electrical components, [indiscernible] and all that. And that will remain definitely a critical issue not only for Krones but probably for the whole machine building industry from our expectation definitely until the middle of next year. Okay. So that was a little site work on the material supply chain side.Next information is about our segments. As you know, we have 2 segments. One is our core segment called Filling and Decoration. Here, we still are a little bit below in sales compared to last year's 2%. And we have a slightly lower but still, under those circumstances, decent EBITDA margin of 9.3%. Why is it slightly lower than last year? I think there are 2 major reasons. One is that what I just said, material costs increased much faster and much stronger than what we expected and what we could cover by getting the money back from the customers. Because in the first half year, we primarily recognized sales of orders from Q4 last year and Q1 this year.And the other reason also is that the whole COVID situation was still eating up a lot of productivity. We had separate shift systems until June 30. Since January, we are out of corona shifts, a very separated strict shift system with very little flexibility. Since July, we are in our normal shift system and those 2 issues, a little flexibility with COVID shifts plus also still some limitations on the installations with a traveling technicians plus the material cost increase is reason for a little decline in margin.On the other hand, we have a very positive development in our second segment, Beverage Production/Process Technology, which includes 2 segments. One is Process Technology, including beer and the other one is intralogistics. And since we have a very strong turnaround, which was desperately needed also, we have a second chart that shows the breakdown and the split of the second segment into Process Technology and intralogistics.And you can see Process Technology similar revenue compared to first 6 months last year. But instead of EUR 13.3 million loss last year, this year, a positive result of EUR 1.4 million. And the strongest loss maker last year was beer. The beer business represents around 80% of the Process Technology, 70% to 80%. It's still not yet positive, but it's on a very good way. And year-to-date, the loss was around EUR 2 million, EUR 2.5 million. But overall, the Process Technology, strong improvement with similar sales.A little bit different intralogistics. Last year was hit hard by the shutdown in Northern Italy in the second quarter. Because the biggest operation of intralogistics is in Northern Italy. So this year, a significant more revenue. And instead of almost EUR 12 million loss, EUR 2 million profit. And especially in the intralogistics due to the strong order intake situation, we see -- foresee and expect very positive development in the second half of this year and also for next year.Okay. Now I would come to working capital. Even though working capital in absolute numbers is decreasing, the ratio to sales slightly increased. So this is not satisfying for us, especially receivables went up compared to last year. This has also something to do with almost 12% revenue increase in the second quarter this year. Payables, stable inventory, I mentioned already we built up safety stock as good as we could.And on the other hand, we have some improvement in the prepayments because of the positive order situation. What also comes into play here is that due to the COVID situation last year and still this year, plus let's say high workload now starting and material shortages and sometimes, the project lead times tends to become longer to finish the project. And that also ties up the capital in longer project lead times.Okay. Next chart is employees. You want to do that?
Yes. I don't want to go in detail through the numbers, but you see there that we have kept our promises here to, let me say, to do 2 things when you look back: Number one was certainly a restructuring program, which was needed coming from, let me say, 2018 and '19; and second, of course, the adaption of the capacities due to the COVID-19 situation. And when you look overall, it was a reduction up to now of roughly 1,100 FTEs which we have done. So I would say quite significant for our organizational level in that magnitude before done in Krones. So I would say, even if it was of course, a critical move but a necessary move.And again, I want to say here that the [indiscernible] that we could execute this one. And you see that we have 2021 that there is a majority of the people in Germany was going out due to the voluntary program we have issued in 2020. Some are coming still from the restructuring program. And by the 30th of June, we are mainly through the first program, which we had.At the moment, we postponed the further execution of the restructuring and headcount reduction program. Why? Because we have a strong increase in order backlog. And we have to, of course, deal with that. So that's the second message I want to send.At the moment, we need to get resources balance in a way that we are prepared for, let me say, the mid-term outlook, what we do expect in revenues in comparison to the present cost we have. And second, of course, we want to take momentum out of the point that we have reduced workforce here in Germany. And we have still planned growth, let me say, in the Hungarian plant and in the plant in China in order to compensate then the growth. So that's 2 factors we put in here.And what is -- there's one very important factor in here. We have not reduced our costs in the emerging markets, and this pace very much back for us. Since I said that in many -- in the user have given that we had not had any service technicians for the last 15 months in China, and we have actually installed and commissioned our lines there, with the full satisfaction of our customers. And this is all done by the local team, and we have many of those examples.One point Norbert mentioned that earlier, while, let me say, South America is working so well, we have finalized 2 breweries there, 2 big projects, even on the COVID-19 situation. And this was due to the fact that we have not reduced the costs there. So that's, let's say, in a nutshell where we are with our people and the employees worldwide.
Okay. Then back to financials. Okay. Liquidity, net cash, I think very stable, not much change to previous quarters. That's how we know Krones, we have only EUR 15 million, 1-5, used credit lines. EUR 219 million net cash or free credit -- free credit lines, slightly above EUR 1 billion. So no limitations here basically very solid also. I mean, the increase of the business, of course, will also use and absorb some cash in the next 2 quarters.Free cash flow, compared to last year, first 6 months, a change of EUR 100 million positive, minus EUR 65 million last year, plus EUR 35 million this year. So the debt change is roughly EUR 100 million and there of EUR 85 million from operating activities. And the remaining EUR 15 million EUR 10 million lower CapEx and EUR 5 million other.From our perspective, a good development. And I look back in the last 5 years, and I have not found a positive free cash flow of the Krones Group in the first 6 months in the last 5 years. And Olaf look back until 2003 and couldn't find a positive cash flow in the first 6 months since 2003. So I mean, the one hand side is -- the one side, of course, it's not good to have no free cash flow for so many years in the first 6 months. And we haven't looked deeper into that now on short notice, but there's more focus on cash flow and free cash flow, and we are seeing results now.Okay. And that basically finishes our presentation here, as you have all read because we had the preliminary -- we published preliminary results including a changed guidance. So our revenue growth for the full year from originally 2.5% to 3.5%, now it's 7% to 9%, which means in the second half, anywhere between 12% and 17% more revenues than the second half of last year.EBITDA margin, 7% to 8%. We are at 8%. The first months, not just to answer some of your questions probably right away. We have already 8%, while 7% to 8% for the full year. There are several reasons. First, the strong increase is in new machine business and a new machine projects, which has lower profitability than the stable service aftermarket business, which will run strong in the second half of the year, same as first half compared to -- that's our expectation.The new machine business has lower margins. The material price increase, most of it will materialize in the second half because there's also some time delay. And our price increase will have a time delay, which will primarily have the impact next year, very little, maybe in the last 1 or 2 months this year. Plus we have internal additional costs, as I tried to describe to manage the supply chain shortage situations. And based on that, we said, okay, guideline -- the guidance is 7% to 8% EBITDA for this year.And working capital, we still stay with 26% to 27% and are confident that we can achieve it even though year-to-date June, we are above. But with the increasing sales volume in the second half, then we have a similar technical impact we had when the business went down, just the other direction. Sales and revenues will pick up faster than the development of the working capital.So that concludes our presentation, and now we are ready to answer our questions.
Thanks, Christoph, and thanks to Norbert all the information regarding our first half year figures and additional information to material costs, employee development and so on. [Operator Instructions] The first question is Sven Weier from UBS.
Mr. Broger, you already kind of answered my first one regarding the guidance for this year. Maybe just a quick follow-up on this one. Regarding the benefit that you have in the second half from, let's say, the stoppage of this corona shift model, I mean what kind of a financial burden was that in the first half? Can you quantify that?
Let me before we quantify, a bit of a background on how that worked. I mean, we had around a limitation of 5% to 7% of, let me say, access to performance of our people just because of the shift models. How this will exactly materialize? I would say this has a bit to do with the scheduling of the order we have in the books. So that's just for a channel observation. And then Norbert can certainly elaborate on that.
Yes. I mean we said from experience that one portion is between 7% and 10% lower productivity with the corona shifts. And there, I would estimate this is a 1-digit million amount for 1 year, high 1-digit. So anywhere between 7% and let's say, 10% for 1 year. The other impact, which is almost impossible to quantify is the flexibility.We had, with the shift models, very little flexibility with over time, with overlapping shifts, with people moving from one shift to another shift to help and support. And that's impossible for us to quantify, but it's desperately needed now, and it just comes to the right point from the timing with the increased volume, plus the challenges on the supply chain flexibility is really key for us. And that is probably the biggest asset we have now being out of the corona shifts that we have much more flexibility to, let's say, juggle the different orders with missing parts and components.
And what was the higher raw material prices you earmarked for the second half relative to the first one?
It's -- overall, I mean we have 2 issues. We have in the first 3 to 4 months where the capacity was still underutilized. We took orders with price levels that were not attractive looking at them from behind now. And those orders will be executed now in the second half, plus they come together. I mean, we have 2 -- I'd say, 2 negative developments coming together orders from the first 3, 4 months with lower margins where we were not so selective as we started to be with April, May and the price increases that came at the same time, which will also hit those orders from the first, let's say, 1.5 quarters being executed.Now we have some -- in some instances, we are renegotiating with customers, for example, freight, which is straightforward. There are indices, and we show them our calculation, and say, okay, we calculated freight 100. Here, you see it's 200 now. And we try to get some of this increase. Sometimes we are successful because we have a long-standing business relationship. And the customer says, okay, understood. Let's try to find a solution and maybe share it.Other customers say, we don't care. We have a contract. It's your problem. And here, we expect that this will have a slight negative impact for the second half, which will be overall, that is our calculation, compensated by positive fixed cost impact. So overall, we are pretty sure that we can keep our profitability close or if it goes really well on the level as we have it in the first half.But it's difficult to calculate. So we know that we have a positive fixed cost impact due to the higher volume. And we have on the one hand side, not so attractive orders from the first 4 months that we have to execute now plus price increases plus, let's say, additional efforts and costs that we have to do to manage the supply shortage.
Yes, understood. Because the reason I'm asking is basically with your revenue guidance, you're kind of exceeding your 2022 targets already. And there, you guided for an 8% to 9% margin. So I guess the delta on the margin is really from what you just described. But also means that even if revenues don't grow next year simply because of better pricing, you should already see a margin uplift then, unless raw material prices go even higher.
Correct. Yes. Correct.
We agree.
The other question I had was on the order intake because basically, you're saying the order intake in the second half will be lower than in the first half because you're becoming more selective and may be moving one or the other projects. But on the other hand, you also said we still haven't had the big projects coming. So put that kind of...
Now we couldn't hear the final part of your question, Sven. Yes. I tried to answer how we see the second half of the year in case, hopefully, you can hear all of us. I would say we are careful in terms of the second half of the year because we need to drive pricing. This is exhausting exercise to do. And we know that from the measures we have taken '18 and '19 until we're recognized in the market from 2 big players: Number one, the customers; and second, even competition that we get impact here.And we started already working on the pricing beginning from April with more movements, of course. I'd rather describe the order intake level in terms of profitability of Q1. And it was obvious that we had to do something. And we see that we have to deny some of the orders. Just this morning, we lost that order from a big key account, which usually would be ours.But we have been quite robust on the pricing, and that's the reason why we lost that order since they've done a good job in the previous project. This is something which is unpleasant, and it will take maybe some more deals we are going to lose until things are really recognized in the market, and that's the reason why we are careful on that.Second, I mean, we are fully booked, and we have to be careful that we'll not over-digest the whole thing in the sense of we want to execute the projects to the satisfaction of our customers, of course, because this is the biggest fundament to get the pricing from the customer. So if this goes off the balance, and we have to, let me say, balance that in the right way. So that's the 2 reasons basically why we are dealing with a lower order intake in the second half.
Yes. I was disconnected after asking the questions, so I missed the first part, but we'll -- I'll keep that for later. And may be the final question before I get disconnected again. It's just basically when we think about your targets for 2023, right? I mean do you already see a chance for making them next year? Because when I look at the order intake, even if it's lower in the second half, you might already be as far as the order intake is concerned and kind of the midpoint of that range you had for 2023, so between EUR 3.74 billion. So how would you manage our expectations on that?
I would say the first one thing Norbert can add on that. We have not, let me say, qualified before what we say to that. Well, now you can't challenge us, but we are saying the same thing. Number one, I said earlier, when we look to the number of people we have on board, that we have quite good feeling that we are prepared for the future in that sense. So that means we have, of course, booked in 2022.But I would say, there are 2 factors which we see at the moment. Number one, I would say for the next 12 months, the outlook is quite okay in terms of order intake. But I would call it this way because you had earlier saying that the big key accounts have been a little bit reluctant in order placing. And we believe there is a kind of a pickup effect that they are actually coming back and doing, let me say, more investments, most probably by the end of the year, maybe beginning of next year. So that gives us a kind of a momentum for the future.Second, and this is, I would say, a very different scenario than we had before. Our customers are actually different than a year ago. I mean, everybody is aware of COVID-19 and is aware of that it will not go away. But they are aware of as well that there are business opportunities. That's a big driver, of course.And business opportunities are either new products coming into the market or this is the bigger one that they need to drive down costs because if the sales channels change from hotels, bars, restaurants to supermarkets, they are getting more under cost pressure, and this gives us momentum for new orders in order to decrease their pricing of their products. So that's the 2 things I want to add, and now Norbert can elaborate on where we are exactly.
Yes. I mean reduced on, let's say, sales and margins, we said in last year's conference, 2022, 8% to 9% EBITDA and 2023 in our mid-term corridor 9% to 12% EBITDA. Now the 8% to 9% EBITDA is kind of a promise what we gave and what we will keep for next year. However, on a, let's say, higher volume, what we expect? Certainly not EUR 3.5 billion to EUR 3.6 billion. But 8% to 9% on -- we will see it then. It's closer somewhere between EUR 3.7 billion to EUR 4 billion maybe. Our internal ambitions, you can be sure, is different. But we are in the middle of 2021, and it's too early to give any commitments to the outside beyond the 8% to 9%, what we said end of last year.
Yes. I think that's fair enough for now. Because one thing that struck me, and I wonder is, isn't that still another great streamlining potential regarding your margin target. And then as I look at the number of parts that you buy, 450,000, maybe I'm naive here, but isn't there. And I know corona has done a lot in terms of modularization in the past, right? But isn't there another long way to go into further simplifying that?
I would say that's a way to go. You have to do every year, every day. So that's something which is continuously going on. I would say midterm, this digitalization is driving us certainly to a next level. Why would you ask digitalization? As simple as that, we need to more simplify our machines, that we can enter into service level agreements supported by digitalization. And there is a big program coming up for 2022, where we are going to address that further in order to get, let me say, the product portfolio streamlined and of course, getting parts out of that.But again, this is -- I would say if I would come up with the point of standardization, modularization, you would say, well, that things you have driven the last 10 years, and we have not seen a significant impact. I would say it's more about having dual sourcing for us and having benefits out of that. That's one of the big points we are going to do and again, to take out some of the product portfolio completely rather than redesigning. I would put it this way.
Maybe an add-on. I mean, we certainly have the target to modelarize and standardize more. On the other hand, if you remember, we also have from a production perspective, let's say, a changed strategy that we do not want to make as much in-house ourselves as in the past. And, let's say, noncritical, easier to source parts we want to give outside. So this will have an effect in the other way.We will reduce our own production here, our investments needed. But on the other hand, we will give out things that we still do in-house to suppliers that will not decrease the 450,000. So if we do it right, maybe internal standardization, plus reducing our own added value then it might stay at around similar levels. But I was also surprised to learn from my colleagues that, for example, just a filler we need 80,000 parts, not meaning that we source all those parts. Many of them are also produced here. And that just shows a little bit how many parts are used for the equipment, and actually it's only one part of a complete chilling line.
Well, the next questions are from Stefan Augustin, Warburg.
Can you hear me now?
Yes.
Yes.
The question is actually on the free cash flow. You already elaborated, but you usually have outflow in the first half. Now it's a positive free cash flow in the first 6 months. You already outlined a little bit on raw materials and some other expectations in the second half. But so far, the missing part is redundancy payments. Now you pushed out the program a little bit.So is the expectation that we actually should expect a decline in free cash flow for the full year versus the last year changing because we push out the redundancies. You're getting a decent margin in the second half. There is more volume. The overall working capital balance is still lower to the first half. So all that should actually bring me to a very decent free cash flow level.
Yes. Thank you for the question. The redundancy payments, of course, is something that thank God, we do not have every year from what we have planned and built reserves for last year, around 50% of those payments are included in the first half of this year. From the remaining 50%, around 20% will be 2022 and later. So in the second half, it's less than in the first half cash out from redundancy payments. What has a bigger impact for us are certainly prepayments of -- from customers for new orders. They play a bigger or how much it is when the money is arriving here, whether it comes especially the ones for the last quarter, whether the prepayments come in December or November or maybe January, February that has a bigger impact than the redundancy payments.
Actually, if you push out the program a little bit to this point, is there -- can we come up with the idea that maybe you also need final -- finally, you need to release provisions that had been built. So there could be an extra one-off things.
We will see. I mean, we will have a discussion with the auditors. At this point of time, there are, let's say, 2 issues. First of all is our communication. It's postponed because we have very high order intake right now. And at least to the auditors, we will say we are not quite sure whether this continues on this level. On the other hand, of course, we are thinking also about alternative measures for the next 2 years to come. When you think about reducing added value of manufacturing, when you think about strengthening our plant in Hungary and China, those are things that where we want to use some of the provision that might be left.
Understood. Maybe the final one with respect to the cash flows. If your profitability increases constantly to reach your targets and the free cash flow generation remains up, could you strategically think of changing the dividend policy or would you -- if you have not find an acquisition target with the -- the cash?
Let me say, we have not yet discussed in a deeper manner to change our dividend policy or not. I mean, of course, this consideration comes up, let me say, every quarter. Because I would say that's a reasonable discussion every company of our magnitude has to have. Second, I would say, when we compare ourselves to, let me say, the peer groups, there could be a discussion, but there is not yet any decision made so far for the dividend policy. So that's the statement to the dividend policy.In terms of acquisitions, I mean, we both have looked into that homework significantly because we believe that -- and we haven't touched that issue. But we have, as we executed our programs to cope with the COVID-19 situation, at the same time, we had a lot of, let me say, look into the future. But I would say, again, even in case we have ideas and targets, we have to be realistic. The multiples paid today in the market are so high if there is available target that I would say a strategic investor like we can hardly execute straightforward on that despite it's an opportunity where all sites would fit together.So I would say, yes, we would like to do, but the question is, if you really can exercise that. We have some smaller ideas related to technology, which are, at the moment, from my point of view, more feasible, but they are a bit more out than, let me say, the other thoughts. So I would justify that a lot in terms of what is doable at for the time being in acquisitions and what is for reasonable pricing, not doable. And again, we are concentrating at the moment, particularly to get what we have, okay, getting that to the target levels we have described, and that's where we are working at the moment with the focus. Norbert, do you want to add something? Because we have not spoke again about that before. Okay. That's it. Does that answer your question, Mr. Augustin?
Well, the next on my list is Richard Schramm from HSBC.
The question I have referring to your price increase. I -- quickly in my mind, this was effective from July onwards. So -- and I would be interested to hear from you if there was a kind of prebuying effect maybe that one or the other customer rushed to place an order, and so obviously, you [ crept it ] as you said, to cover your capacities and that, therefore, we have seen a little bit of inflated order inflow in Q2. Would that be a possibility?
I would -- if you could just say, of course, because the customer necessarily tell you. But there could be some of these effects because we were wondering if some of our customers were clever and said, okay, we see the material cost pricing less the point of not utilized capacities I would have more in mind at least a discussion I had, which was more related to rising costs at all. Because they have seen that already on raw material, like sugar or our customers, and maybe that was a pre-indication for them that we might do the same thing. So it was more coming from that side, most probably.But I would say most of the projects, which -- where we usually know on what business case they are founded on, we have already seem without having that impact on the pricing. Maybe then the decision-making has been accelerated by that. But I would say -- let me say, the lease out for Q3 and Q4, we see still there is a lot of activities, which is certainly not based on, let me say, cost increase. So that's the reason why I am a bit careful whether this has been effects like putting the orders earlier because of either not used capacities or material cost increase. But there might be a -- could be an effect, and I wouldn't deny that.To evaluate, one thing further about pricing, they are aware of since the first of July once we have increased pricing. But they have certainly felt before because we have [indiscernible] pricing before already and have been in Q2, much more restrictive on pricing than before without having an official communication. Now the official communication followed on the 1st of July, which was important that the message is going through into the market, so as simple as that. And you are aware, usually, it takes 3 to 6 months until we take benefit from, let me say, official price increases. Does that answer your question, Mr. Schramm?
Yes. And follow-up on this. I mean, you mentioned that you would need about 4% to cover the higher material prices from this price increase and the rest would be for the, let's say, gap from the price pressure you are seeing pre-corona, which sounds a bit like you are optimistic to really push through the full 6%, which I wonder if that is not a bit too ambitious as usually, I would assume that you could be lucky if you result in the end with an effective 3% hike or so. What do you think?
Yes. I mean, a good question all the time when you work on pricing and the pricing power you have then, of course, there remains a question mark. But if you look to the gross margins we calculate in any order we have. So we don't take an order on board. We're setting a clear picture on gross margins. And it's not all reflected in the same -- in different orders on the same level, what is related to material costs.I would say what we see right now because we work on pricing, let me say, from April onwards, we see a trend within the industry where we can really manage better pricing. So -- We have already evidenced that things are working. We are a bit lucky because still the volume is okay, so that's good. But with the indication we had over the last 3 months, I would say we are quite optimistic. And why is that? Because there is a broad sense in the industry that nobody can actually compensate the pricing with cost cutting because it's so severe and significant.And I would say some of our customers try to deny it, but those we had to work away agree if you say that. And by being so serious on that, I would say, there is a momentum generated in the industry, which makes us believe that we can at least manage pricing on the levels Norbert described to maintain profitability on the level we actually promise. That's the point we see. And this is well calculated in any sense. And of course, I would say, there is still a risk, but on the other side, we built in some buffer as well. So I would say that there's both sides.
Plus Mr. Schramm, we or at least Christoph can refer to a price increase that was announced in 2019 by 4%. I was not here at that point of time. But what I saw and it was that the 4% 2019 allowance most of it could be pushed through. It's difficult to manage around the 4% or 3.5%, but it was significant. And now we have a completely different situation because at that point of time, there were no material price increases. And then -- so that's why we have definitely confidence that the 6% are not easy but are realistically manageable and doable.
And then what I can add -- usually it is -- you can't measure that. We are perceived from the customers really, really nicely. Why? Because Krones has managed in this COVID-19 situation, a very good operation, whether it's projects to be installed under very harsh conditions, or whether to maintain the service levels we are giving around the world in a very good manner. I mean, of course, we have shortcomings of that, no doubt. But all in all, we managed it extremely well with the customers. And I would say this gives us some tailwind as well.
Okay. So if I sum it up, then this means that you expect at the end of the year that your order backlog will have clearly better margin implied than it has, let's say, in the middle of early year.
Yes. Excellent.
Yes. Yes.
Our fourth questioner is from Commerzbank , Sebastian Growe.
So first one is on the volume outlook. And on the comments you made on the project pipeline, especially for the big internationals, I understand from the comments that you made earlier that there hasn't been any using. I can point it to end of this year or early next year. But you really would expect any sort of unlocking of that kind of sample situation.Can you just remind us of the rough lifts that you are having in the order intake or generally speaking, the revenues between what is more the small and medium-sized customer base? And then what is really the amount coming from the large accounts? So just as an idea what the catch-up effect eventually might be? Maybe we'll take the questions one-by-one, if I may.
Yes. First, to the volume outlook, again, pipeline looks quite robust even if we -- as we said with you, with pricing, so there might be impact on order intake, of course, on the volume. I would say if we look to the key accounts at around 30% to 35% of our revenues. I can say not all of them are, as you say, classified that they have cut their budget. Some of them, I would say, doing better than what I have said last autumn. But if I look to those, I would justify them between 25% and 30%, who have at least the potential for next year to catch up with their budgets and go back to the precrisis levels.So then in addition, we have to be a bit careful if you look to a very, very big international one dealing a lot in Asia. All of you know them. I mean, they have been very bullish just recently. But with the latest COVID-19 increases, they have seen in the region, I would say that has changed a bit. Why? Because they have certainly not the capacity themselves to execute bigger projects. It's not up to us. It's more up to them. So that might be a little bit of blockage, and we are talking with them at the moment, how we can manage projects with more support from Krones that they could actually invest or that's something positive.And if you would ask me without having me fixed on that. But I would say the project pipeline is quite robust over the next 6 months and the outlook let me say, for 36 months, 12 months from today because we know bigger projects, they have longer lead times, they have longer for negotiations. There's a lot in the market. And this does not necessarily mean we see any road blocks at the moment because I said it earlier, customers are more optimistic and they see they can invest even under COVID-19 circumstances. And that's one of the reasons why I believe we can assume a quite robust pipeline for the next 12 months. again, with all the disclaimer, I can put on it because we have seen things changing in less than 4 weeks in a total different scenario. But from all what we know, this would be a statement I want to make -- would like to make today.
Okay. That's helpful. And the other question is just a quick follow-up on the price hikes that [indiscernible]. Well, I just like asking the question now because it's for a monthly update. So I would be really interested how the month of July has laid out. The back end of the question obviously is, is because of the 6% price hike, we might have seen better momentum in the base order business compared to the second quarter pre-buying effect by [indiscernible] before.
That's really a good question. I would say -- and don't misinterpret it. I explain it to you. It turned out quite well. But again, if you can't do without having enough volume in the market, so as I said all the time, 2 coins of the metal. I mean, we could manage pricing quite well in July. I would say we have any range of customers complaining from like hell and knocking with his phone every day on my phone or on the colleagues phone and up to the range that they understand the actual circumstances. But again, we were doing well in July, and that has a lot to do with -- there was enough volume that we could be as selective as we wanted to be.Does that answer your question, Mr. Growe.
Yes, it does. And the second -- sorry. Third question already for the aftermarket business. From the comments you made, it sounds a bit to me that this looks like, can say, plateauing a bit eventually and then being back to pre-profit levels. Is that the right way of interpreting what you have been saying so far? Or is there any particular areas, product-wise or regions that are still trailing behind. So any color would be appreciated there.
Yes. I mean I would say it was plateauing in the crisis. Fortunately, I would say that this did not erode as much as the machine business. So the growth is, of course, not as strong as we see that in new machinery. It has been quite stable. There is growth. But things have to come. I mean the order intake was quite promising. Even there we have some delays at the moment in converting order intake into revenue.But all in all, this business looks good, and we see still potential for it. And I want to do one remark. We have 2 reasons why we pushed even in Q1, even with the critical pricing order intake. I mean we need installed base, and we have done extremely well on that. If we look to the installed base, we have actually -- we are delivering out of the order intake for the next, let me say, 12 to 18 months that will support further aftermarket business as well. So I would say, all in all, we are in good shape, and we have a positive perspective on that.
Okay. And then 2 housekeeping things. I try to keep it quickly. quick. The first one is on closure. You talked about the cross Technology segment and then calling it segment. Number two, are you planning to permanently provide eventually revenue and EBITDA split going forward? Or is this just the 1 exception to the rule way of wanting to increase the transparency for what's going on there?
Yes. Very clearly, we are going to provide that for the future as well because we want to make that transparent where we are with the 2, let me say, technologies being in our stacking segment, intralogistics and Process Technology, because clarity, that's our point of view and let's say, a clear view on where we are and the developments we are going to manage is an important factor for us, and that's the reason why we maintain that as we headed today. We had it, by the way, previously, but it was shifting away a bit in -- under the circumstances of having more hurdles and problems on the COVID-19 and before. But we believe this is our mid- and long-term thing to state that very clearly. Even since the intralogistics is growing extremely well.
Okay. I appreciate it. And the last question is quickly on the employee base and the restructuring program. Mr. Broger you said that eventually fiscal 2022 revenues could be EUR 3.74 billion in that range. You talked about the postponement of the second part of the restructuring program. Is there any sort of change or risk, however you want to put it off really unwinding the entire program in full? Or how should we think about when if Hungary really taking over in order to then execute this program to the very end?
Yes. Thank you, Mr. Growe for this question, and that gives me a chance to clarify it a little bit. We said that we will reduce the workforce in Germany this year. And's all in the AG company by around EUR 750 million, EUR 400 million from last year and EUR 350 million additional this year. And from the EUR 350 million, EUR 100 million was planned as reduced work for here with redundancy payments that is in connection with ramping up Hungary. And when Hungary is running at full speed, we don't need those EUR 130 million actually here anymore. This was part of the layoffs. Now with the increased business and with the increased temporary labor we have, we have the option now not letting own people go with redundancy payments, but keep them -- put them in different places and reduce the temps. So that's one part of the story.The indirects, we said we will do. That was another EUR 100 million and EUR 120 million and EUR 100 million was in other direct areas. And those other EUR 100 million, we can certainly and will not do because of the high shop load, what we have. And what you do not see in the year-to-date June figures is that because we had several, let's say, agreements that were dated on June 30. And in July, around 140 full-time equivalents left which are not yet in the June 30 figures. So -- and when we look at the picture, including July, -- Then we have a reduction in 17 months of 1,216 worldwide net reduction FTEs and almost 1,000 to be precise, 970 in Germany. So EUR 140 million more than what you see on Page 15. And with that, I think we have a very good base to, let's say, with enough pressure, get productivity results with the volume we have.
Okay. That makes sense. And just a quick follow-on to the redirecting of the 130 people. Will you have to release the provision then? Or am I'm just on the wrong track here just asking this question.
That's absolutely right question, and I'm hesitant to answer it. I mean if we release a provision, we will certainly show it transparently, so that you know what is operational business, what is release of provision, but that is the discussion we have right now and what we have to do with the auditor. I'm a friend of if it's possible, if I have a provision for restructuring that I can keep it even though the announced program is reduced. But if we want to do another program maybe next year to increase efficiency, not due to capacity, but outsourcing and others, then it's good. It's not good to release one this year and make another new one in 1 or 1.5 or 2 years.
Let me put it in this way. It's nil were factored in, not at all. And second, we have more to do, maybe not directly in AG, which was up to now at the point where we have concentrated on, I would say, most of the homework we have done here, but we have other areas where we look into structural changes. They are not yet defined, not discussed in a broader sense. But they are on our agenda because we strongly believe we need further to execute a couple of things. And hopefully, we can then convert that into further programs which are needed to get in the right direction.
And the -- our guidance does not include, let's say, the possibility that the auditors force us to release some of the provisions. So that will be on top if we have to release provisions.
The next questioner is -- sorry, Daniel Gleim from Stifel. Could you speak up a little, please?
The first question is [indiscernible]?
Maybe I caught it. I just want to repeat it, and you just have to elaborate whether I caught it in the right manner because it was very difficult to understand. So your question was in regard of the, let me say, customer mix. let me say, private-owned versus multinational? And is that -- does that have an impact on the pricing strategy we have? Is that we have been more lucky at the moment, managing pricing because it was more on the, let me say, smaller and non-multinational companies. Was that the right understanding?
[indiscernible]
Okay. Yes. I can. this is really easy to answer. Two things. multinational company is dealing on budgets. And once budgets are fixed, and I would say free cash flows with that justified for the year and being promised to the capital markets, I would say they have hardly any chance to escape from their investment budgets they have set in, let me say, in fall of the previous year. So that's one of the reasons.Second is that multinationals are less risk averse than, I would say, private-owned companies. We have seen a couple of investments for new products where customers placed very early orders just to participate in the early stage of this trend. And second, some of them placed orders because they gained order from bigger supermarket chains and wanted to participate in those. So I would say that's a different risk approach than the multinationals have. And these 2 factors, I would say, describe the, let me say, the situation where we are in. Again, there are some multinationals who acted different who increased their budget, but it was around 15% to 20% out. Does that answer your question?
[indiscernible].
Mr. Gleim, you have actually to repeat that because we're receiving you quite low and...
[indiscernible].
Okay. So another one in the meantime.
I have no one at the moment in the line on my list from the e-mails. And perhaps, it's anybody we have no possibility to send an email, I want to ask questions. So please me then ask the question before Mr. Gleim come back.
Peter Rothenaicher from Baader Bank. Okay. Perhaps you can comment a little bit on the competitive situation. So have you heard anything about the price reaction of your big competitors, CDL and KHS? And what is the situation with the smaller players from Italy and China? How are they behaving in the market?
Well, to be honest, we have heard a very few comments on that. I mean, some were wondering that we have really the courage to do, at the moment, the price increase. That was one of the statements we heard. I would say, -- but any competition law is working quite well amongst us. So the, let me say, comments, discussions, whatever is very, very limited elsewhere. And in addition to that, we jumped into the holiday season. So I would say that was one other factor that the discussion was pretty low.But I would say, let me put it in 2 categories. The 2 big ones, I would say, they are taking maybe a bit momentum at the moment out of the price increase we have made. This is not unusual because I said it earlier, we have to be selective. And we said we have to be -- have to allow that they can take momentum out of that.I would say, for the smaller ones, it's highly appreciated at least with one I saw because of other reasons. We said, well, it's the right move at the moment, and we hope we can follow. The smaller ones have, by the way, a bigger issue than we have because since they have less possibilities for, let me say, bigger orders to clarify in the regions, they are, I would say, not in as good shape as we are the bigger ones. And I would include for the bigger ones CDL and KHS. But I have to be honest, not too much from competition that I could justify how they would react to that.
Plus maybe additional comment. When we come from the supply chain, I mean, we all use more or less same similar suppliers for electrical components. And here, as you know, market power size matters. So smaller competitors are in the list of priorities, certainly below Krones where we are with higher volumes and more market power. So that also doesn't help the smaller ones at this point of time.
Does that answer your question, Mr. Rothenaicher?
Yes. And perhaps an additional question on the situation in the brewery equipment business. Can you comment on this? So you mentioned result test improved at Steinecker. What is here the competitive situation now? Do you become more better market situation here? And what is going on then with local production in China?
When you look to processing and the brewing side, we had this top out on the first of April, and with that, I would say, in the second quarter, the release of, let me say, 20% of the workforce was becoming due. So that was not in the first quarter. First quarter was still a problem underutilized capacities and the, let me say, the release of the people not realized. The second quarter looks good in the sense of the way we want to go. So it was slightly positive. We are aware of that one quarter being positive and brewery doesn't make anything. So we have to be careful on that, but at least the order backlog we had till the end of the year, and we are very, very precise with that. It's sufficient to have the capacities booked and second, that the margins are okay to achieve the set targets.So with that, I would say we have a good chance to get -- with Steinecker signing along the way, we predicted and we executed. The competitive landscape is as competitive as we have seen it. However, since we have reduced capacities significantly, we can be more selective on that, and this is what we are doing. So we are very careful in terms of the size of the orders taken on board. So for us, it's a given, we need enough small orders with enough margin to balance risk. So that -- that's one important factor.And I would say, yes, and [indiscernible] are still active in that field, and we feel that. We have just lost recently a big order to GEA. I would assume I have not full evidence on that, but I think that's the point where we stopped on pricing and said, well, it IS nothing where we go further down. In terms of Chinese business, the entity in China is the same way booked as Steinecker itself. However, the order intake in China is a bit reluctant because of just the breweries.That's surprising for us because usually, the market is going well, but we know from the Chinese competition that they are doing in China as well, not very good on the brewing side. But again, that doesn't matter too much for us because the entity in China is used a lot as extended work bench for Steinecker and with the order intake and the backlog we have, but this is settled so we can continue on that. So with the brewing business, at least till the end of the year, we're quite optimistic to reach the targets we have set.
And with regard to the margins for 2023, in this respect, process technology and intralogistics, what I hear your EBIT margins are -- EBITDA margin target.
Can I elaborate on EBT maybe then we -- because we still operate with them on the targets of EBT. So there's a clear target. We want to have them on EBT, first 4% and second 6%. This is the given, let me say, numbers with they are aware of. And let us elaborate, let me say, in the second half of the year, a bit on the timing. I would say, the 4% for 2022 is, let me say, more or less the range where we are heading to and where we are we try to achieve. But again, this is not yet fully calculated for 2022, nor for 2023. But I would say the clear target of 6% to 7% for those 2 segments -- those 2 technologies in segment number two is the target we have.
And that translates also to definitely 9%, maybe 9-plus something 2023 for both segments, intralogistics and Process Technology.
Perhaps, Mr. Gleim, are you already in the line now?
Is the connection now better? Can you hear me better now?
Perfect.
So the second question was a little bit on the sustainability of the order pipeline for the market momentum that you witnessed. The reason why I'm asking is that the current order intake is around EUR 1 billion. So if you -- per quarter, if you annualize that, we are at EUR 4 billion. And as you can -- before the multinationals are coming back where you indicated that this could be another quarter or even 30% up on the current market momentum. So I'm just wondering how much pent-up demand do you see in these figures at the moment? And how sustainable is this? So what is the history where the smaller customers not investing last year as much. So the pendulum is now swinging back. I'm trying to understand a little bit what the new normal is for the beverage filling equipment market?
Again, I would say if we put that in 2 parts, 6 and 12 months outlook, I mean, what we see is the inquiries we have which we call leads and they usually need between, let me say, 4 and -- 4 weeks and 4 months to be converted into orders. If we look to that, I would say that's a very sustainable path. And again, the -- let me say, the underlying subject for it, where we're a bit more careful on the second half of the year is that we want to drive pricing. This -- we are aware of needs to have selection. But we wouldn't drive that so strong forward in case we would be not quite sure that the pipeline is robust enough that we could price sizing.If we would sit here, we will have a weak pipeline. We wouldn't be not as said, confidence on the pricing as we are of today. I mean, obviously, that gives you a bit of a taste how we see the next 6 months. I mean, if we look then 12 months into the future, we see at the moment no reason why this should change significantly, knowing the projects in the bigger ones. Because I would say the order intake we have is 2, 3 lines at the maximum at the moment. We see bigger deals coming up, which will help the market in terms of quantities for order intake, number one.And secondly, I've seen with another proper split around the world where the revenues are done, that some of the regions are lagging behind. So we have even some regions which might pick up and go to, let me say, precrisis levels. So if we take that all together, I would say it's still looking robust. And then one purchasing, which might be not as big as all the others, but even the product mix is changing. So intralogistics is growing significantly.You will see that by year-end when we show you the revenues at the end of the year. And even that, we believe there is a big momentum into that as well. The projects are big there. This is, of course, some type of revenue brings at that. And those projects are running at least for 12 to 18 months before they are really closed. And all of that gives us quite good feeling for at the moment, a robust pipeline.
Very clear. And the last question is on the numbers you gave for the headcount reduction for this year. I understand the original plan was EUR 750 million, and you actually executed now around EUR 600 million, EUR 650 million, is that correct?
I would say, yes, that's correct, EUR 500 million, we have executed to see in the numbers here on Slide 15. EUR 140 million are coming because they are realized in July. So roughly EUR 200 million have missed to fully execute the program. But this was into '18 And again, nobody explained quite well the 2 categories of the EUR 100 million on one side and the other EUR 100 million on the other side.
So I have no one any more no, no one is on my list at the moment. [Operator Instructions] Any additional questions?
Final statement, right?
Yes.
And then thanks a lot for listening and taking your time. Let me do one final remark, which might be then a bigger point, let me say, in the Capital Markets Day, where we elaborate on that. I mean we have not lost focus on the future. I would say that's important despite all the programs we have to execute which is digitalization in particular, where I believe we make good progress and important is the customer believes the same thing. So I would say we elaborate further on that once we are together.I would say our global footprint is going further ahead. going through that crisis, we have not any millimeter stepped away from that. So this is going ahead, hence the sustainability program we have in place, I would say, is even something where we are pretty proud of. We have indicated quite strong targets. And all of those, we will elaborate together with you. And the big thing is, of course, those targets are as well very valid for our future order intake and profitability because a lot goes into the market with our products and helping our customers to reach their sustainability targets.And last but not least, I would say a big program is to get our workforce changed to the extent that we are capable to deal with the subjects of the future. And this is beyond the things I mentioned at least what we have to do in terms of feeding, let me say, and getting people to drink and have a new products on board for the future. So that's something we want to elaborate then in the Capital Markets Day. Thanks a lot for listening. A pleasure to have you here, and all the best for you that no COVID might be close to you. Thanks a lot.
Thank you. Bye-bye.
Thank you. Bye-bye.