Earnings Call: H2 2019

Feb 24, 2020

Good afternoon. This is the Chorus Call conference operator. Welcome and thank you for joining the SOGEPY Full Year 2019 Results Conference Call. As a reminder, all participants are in listen only mode. After the presentation, there will be an opportunity to ask questions. At this time, I would like to turn the conference over to Mr. Mauro Fenci, CEO of Sogesi. Please go ahead, sir. So now Rafaliki speaking with the first time review and talk about Surgessi 2019 results. But before going on to presenting the last year results, I would like to spend just a few minutes presenting my stuff to you before I think it makes sense. So I spent the first 15 years of my career working for the Aerospace business, first for 10 years and then 5 years later on the oil and gas side. During the oil and gas period, I've been in Japan for a couple of years working with the most important following up OEMs like distribution Kawasaki. Then I come back and I started working for SBA Group in 2001, entering into Comau. In Comau, I covered many different roles, including business unit management, project management roles. And from 2,009, I went to leave in Detroit after the Fagre acquisition following Mr. Macron implementing the integration principles in the area. I spent 3 years of my career in Detroit from 2,009 to 2012. Then when I come back in 2013, I took the Canal Chief Executive Officer role. The tax development is led last year in December period. So now I'm here to talk about suggested results. I apologize, by the way, for the late start, but I didn't make any initial on the file. So I will cover slide by slide. Hopefully, you have the presentation with you. Starting with slide number 3, which is covering the main numbers of the year. So as revenue side, last year has been a year with €1,219,200,000 revenues, volumes. That compared to 2018 that has been €17,000,000 is down 3.3% on a reported basis and 2.2% on profit exchange rate. You will see later on in the presentation, and by the way, with respect to the market trends, the company is better. On EBITDA, we closed the year at 174.3 percent against last year, 129.9 percent, so 11.5% on sales in line with previous years. And we are confirming Q4 year on year and 2018 growth improvement, but we will see later on these numbers. EBIT has been at €39,600,000 which is 2.6% on sales on the year. And we have to highlight that in this number, we have been negatively affected by €10,000,000 of noncash asset write downs. That was €5,300,000,000 in the previous year. During last year, we suggested also activities to cover the startup cost euros and the positive free cash flow is positive of 4,000,000, 3,900,000 versus 14,200,000 last year. The net debt at the end of the slide, you can see that it is now at €256,200,000 versus €250.5 at end of 2018. So if you change the slide and we go to Slide 4. Here, you see the revenues by JEOR ARA. And on the left, you see the Q4 and Q4. And on the right side, you see the full year. So there are a couple of areas to highlight. If you follow me on the table, on the total line, first of all, we see that going from the left to right, the quarter to quarter numbers are, as positive changes, minus 3.5% from 'nineteen to 'eighteen. With the cost exchange rate, we jumped at minus 2.2%. Our negative numbers, but on the other side, considering the market trend, which is in certain period of time, minus 5.4%, we are over performing the market And the full year is again showing a pre profit change of minus 2.3, which is a change of minus 2.2. Again, you see the same trend. The market is down roughly 6% with 3.59 basis points better. I would say that Europe has been looking for SOGS to achieve these numbers, And you know how Europe is important for the group. And if you go to the right, discussing the full year, we have also to remember that we have been affected by the strike at GM in U. S. For a certain period of time. In the next slide, so Slide number 5, which is revenues by business unit. Again, same right quarter, so on the left quarter to quarter, on the right full year. On the quarter to quarter, we can see again that on the Air and Cooling business trend, we are at cost exchange rate minus 8.7%. Fee pressure is positive of roughly 8%, 7.7%. And suspension is down 10% on the quarter. While if you go to the right, you see that R and D is down 3.5% as exchange cost and exchange rate, while depreciation is up more or less 3%, and the suspension is down 5 point 6%. I think you see the 2018, 2019 customer portfolio. As you see, the top 4 are at roughly at 10% share on volumes, with Renault, Eastern, the 3rd quarter and the SEA case in order. And then GMV and the portfolio of customer is quite in line with the beauty portfolio. And our presence on some customers like the Endavio is Italy. Then going to Slide 7, you see a very detailed draft reporting the EBIT performance from 2018 on the left to 2019 on the right side. In 2018, and maybe I can be more precise, I mean, there has been a claim on the Diodes that has affected the profitability with the €6,600,000 But if we go from 'eighteen, 'eighteen on, we see that the volumes affected that in a negative way of 14.5 percent, while the company reacted pretty well on the efficiency and variable cost side with 6.5. And also, we covered pretty well the fixed cost with €8,600,000 Going on from left to right, you see D and A and others for a negative amount of 7.1%. Plus, as you know, we are ramping up the 2 brands of Maropi and Romaniya for a near cost of Rafi Italian million, so for profit intake. Reporting then the EBIT 2019 adjusted at 43.9 percent. On top of it, then we added write down, dollars 4,300,000 and the EBITDA quarter Jan, who knows better than either 2019 here, to comment the Slide number 8. Thank you, Mauro. So after a significant start in Q1 of last year with an EBITDA of 10.6%, you can see the recovered quite steadily in Q2 to Q4. In Q4, we closed the year at 11.8% of EBITDA, whilst in the same period of the previous year, we only achieved 9.7% despite higher sales. So the performance of Q4 2019 with sales $40,000,000 below that of the previous year, are quite good actually. In terms of EBIT, you may have seen that Q4 was hit, as mentioned by Naro, by a number of write offs. Hence, the 0.6% EBIT that compares with 1.1%. This said, excluding these write downs, which are not recurring, you can see that in Q4, we achieved a 2.9% EBIT, while in Q4 of the previous year with sales higher than this year, we only achieved 1.5 percent, therefore, a year of improvement nonetheless. Thank you very much, Jan. I have decided to give you in the coming slides a better view on the businesses. So if you go to Slide 9, you see the suspension trend in sales and EBIT, sales on the left and the March. So there is an 8.8% negative on volumes. But we have to highlight that in Europe, the GAAP is minus 6.5% or less. About the EBITDA, we have to remember that in 2009, the Romania for an airplane was a deal, it's got a upper phase, so affected everything, the cost of the business unit, but Romania is very good for the future. In Romania, if we exclude Romania from the EBIT side, you should see the 2.1 2018 against 1.9 in 2019. EMEA is improving quite well in profitability exercise and suspension, while unfortunately, we see LatAm and China a margin decrease. On suspension, the cost of raw material is very important. So if you jump to Slide 10, we decided to show the indicative steel price evolution for 'seventeen, 'eighteen and 'nineteen. In the last period of time, I think about 'nineteen, the steel price, as you see, reduced after a peak in end of 2018, and this affected also the suspension and profit and loss. Going to filtration, which is Slide 11. You see the filtration improved the sales volume from 5 37 to 546. So there is a growth of 1.7%, which is roughly 3% across the exchange. So they have been successful in growing the filtration business almost everywhere with the exception of North America. On the right, we see the profitability that's important softened EBIT in 2019. We went from 4.5 to 2.9. But again, we have realized that EMEA, like for suspension, is improving profitability, particularly well in dictation following the plan. And that EBIT, again, without the Morocco startup cost should be at 4.2%, again, 4.5% last year. On Slide 12, you see the Air and Cooling business unit. This business is almost flat on volumes, 2018 2019, with a 1.7% difference. But we have to again highlight that Europe, also EMEA, is up 5% on the last year, on the previous year. And unfortunately, we have highlighted North America, we have been affected, as mentioned before, by the GM strike last year. On the profitability, Air Liquor, it is improving. The profit varied from 5.2 percent to 5.1 percent. And again, the main area of improvement we are talking about is M and L. L. So going back to the full P and L on Page 13. Just a reminder, 20 18 'nineteen asset values, as mentioned by Mario earlier on, we've taken out from 2018 the €6,600,000 advantage coming from the settlement of the claims in order to be comparable. And 'nineteen and 'eighteen are presented first with IFRS 16 in order to be consistent. So EBIT, as you have seen, stands at €39,600,000 reduction, I'd say, improvement of the financial results on the year, 23.8 versus 27.5 a year before. What remains significant is the income tax. Income tax is €13,700,000 versus a pretax of 15.9 euros So we are not where we wish to be. It's an 86% tax rate, which is a main win. And as mentioned in previous meetings, this comes from the fact that we have new plans on which we have taken a prudent stance, as you say, till they become profitable, we are not going to put different factors there. And there are other areas, especially in Latin America, where we've been very cautious not to book this FX effect due to the uncertainty of the possible recovery. In the last quarter, we'll try to improve this. I know the question will come, but we are shooting, let's say, for a 50% tax rate in 3 years from now because we still have will have the start up cost of the new plants in the coming years. And as I said, till they reach the season, we are not going to put it in tax effect. Minority interest comparable to the previous year. So all in all, after the write downs, which we mentioned before, the net income of operating activities is a loss of €800,000 which fortunately is more than offset by the profit coming from the disposal of the fresh plant, which was €4,000,000 net profit. So all in all, a 3.2 net income for the group. If we move to Slide 13, the free cash flow. As discussed in previous meetings, in 'eighteen and 'nineteen, we had some run ups. In 'eighteen, in terms of cash, it was the acquisition of 30% minority share of our Italian area of Indian subsidiary. In 2018, we cashed DKK5.1 million for a month, the 2nd month of our base warranty claim, of which we paid DKK1.8 million in 2019. And in terms of cash, whilst the fresh disposal only netted 1,000,000 net result in cash, this brought $7,200,000 of fresh cash. Going down the tab, working capital minus 2.1% versus 5.9% in previous years. We must highlight that we have been struggling in collecting from receivables. Just a lot of companies probably are struggling with their cash and so they have deferring payments. So we have more deferred payment than in the previous year. And this is something we'll be working on in 2020 in order to make it right. In terms of tangible CapEx, R60 $1,000,000 versus R68 $1,000,000 in the previous year, of which €9,500,000,000 So the movement is mainly Romania. Romania accounts for roughly €8,000,000 at that amount. And this will keep on in 2020 because in 2020, we still shall have around €13,000,000 of CapEx for the remainder. Intangible and IFRS 15, IFRS 15, I'll remind you still here. So less in time to go than still doing by €7,000,000 in the previous year. So all in all, net free cash flow results IFRS 16 of R9.3 million versus R3 1,000,000 in the previous year. IFRS 16, I just remind you, is a deepening of the debt and costs regarding the leasing arrangements we have committed to. So to take a more constant view, taking out the one offs we started with, as to say, the acquisition of the wind subsidiary, the data claim and the rainfall coming from the disposal of our plant in sales, the free cash flow for the year stands at €3,900,000 versus 13.2 percent a year before, as a result of which our net financial position without IFRS 16 again stands at 256 versus 260 again before. After at €94,000,000 end 2019, whilst it is quite significantly higher a year before. If we move to Slide 15, at the point we didn't have time to commence the deal. As we made a press release, as you know, in November, we completed a private placement of €75,000,000 which was a non convertible bond. The bond is unsecured. It has a fixed income of 3% and is still mature in November 25. The purpose of the bond was to extend the maturity of our debt, something we are working on. So we are safe till 2021 and now working on expanding the line beyond 2021 in order to secure the long term financing opportunities. Thank you very much, Jan. And now we go over to the future. So if you go to Slide 17, we talk a little bit about market evolution. In this slide, we reported the last IHS forecast on February, so in month. As you can see, probably due to the coronavirus in place in this period of time, which is affecting mainly China, you see China drop in Q1, roughly 28%, and Europe with a minus 6% on Q1, too. The forecasts are considering this Q1 as one difficult quarter than to be a color in the other 3 because globally, in the year, it's forecasted at minus 2%, as you see in the slide. If you move to the next slide, which is 18, you can see how Sijeti is covering the net with revenues, and this will be also important later on in case of questions that will come for sure. Europe, for Sogesti, is representing really 60% of the sales, strong positioning in the area, while as you see, the car production is only accounted for 24. In North America, suggested is 20. In Asia Pacific, there is a total amount of 20. But if we talk about China, Sogeti now is covering 5% of the revenue on China. South America is a good market for the company. We are at 11% against car production at 4. It's the first time, I think, we show you or we give you some information about Romania, which is in Slide 19. Is a new plant. As we said before, it's under ramping up sales. Will be a plant covering the suspension business. It's very key for the future because of cost. There is a timing, which is considering a start of production to be considered in 2021 with some permanent steps. We got important orders from German Premier Janssen to ramp up the plant. And it's the plant that was suggested is important not only because of the location and the cost, but also because of the size because we are talking about 30,000 square meters. And the plant at full speed will be roughly 250 people working at full capacity. So now a quick outlook on the 2020. We are as we have seen from the slide before, in Europe, which is very key for Sangessi, there will be a decline which is in the range of 1 0.4%. Unfortunately, the Q1 will be even more challenging, as we've seen before, By the way, not only in Europe, but mainly in China. It is also true that the 5% we are in China is not putting suggesting under a very huge risk in this moment of time. On the contract portfolio, we expect to be on sales substantially in line with 2019 and going on with the performance, which will be slightly better than the market. On the profitability side, we want to continue protecting the profitability in Europe, as you have seen from the previous slide, which is the major market for us. Suspension business will be seen in this respect in Europe to recover and to improve profitability. But we are also forecasting customer contracts. As I said, because I covered in the previous slide, Romania is going to continue the ramping up during the year. We have to tell you that Romania is going to start contributing the business from 2022. And of course, we have to close this presentation saying that coronavirus for the time being is not considered even if they said our portion of sales on China at the moment are in the range of 5%, so amount very critical in this respect. I'm at the end of the presentation. So now I will be glad to reply to questions with regard to The first question is from Monica Bolivoli, Bancaise. Please go ahead. Yes. Good afternoon and thanks for taking my questions. The first one is on the guidance on the revenue that should be flat or indeed above the market. But I'm just wondering if you can better qualify the assumption that you have behind the markets. What do you mean for a global car is likely declining? To me, it seems that the main provider, IHS, are calling for minus 0.5%, minus 1%, but the perception is that at the end of the year, given also the corona virus, the tough reduction might be much worse than this. And also for Europe, you are calling for a minus 1.4%. I'm just wondering if this guidance is including the coronavirus or not? Or if you do not believe that this guidance in term of car production might reveal too optimistic? The second question is on the profitability side. You have improved in the last quarter of the year. You have told us that you are going to defend margins in Europe, recovery in North America. At the end of the day, can you give us an indication, a rough indication of profitability by year end just to quantify? And if you can quantify the potential ramp up costs related to Morocco and Romania, should we expect further ramp up costs that could depress the profitability by year end? Thank you. Yes. So I'll try to reply to the 2 questions. First of all, I'll turn the first one, which is turn on to the volume. As I said, we are not covering Coronavirus at the moment in the numbers. Why? Because, first of all, the evolution of this very key element is unfortunately in front of us and is very difficult to predict really the profitability duration of the event and the footprint affected. But second is because so JP on the Chinese side, so I talk about local people, right? Yes. No problem. We have only 2 plants and the revenues are quite limited. Today, the 2 plants are, by the way, Otendo. We don't have all the workers inside that we have as today more than 50 percent of the work has already been placed. So up to now, let me say, there will be some impact that will be awfully limited. On the overall economy and the overall market, it is clear that the visibility we have today due to the corona zero system is really stable. But on the other side, the portfolio of all the customers we have for 2020 is quite safe. And with these numbers, we are also protected a little bit with some efficiencies planned a possible reduction of volumes, which would be reasonable hopefully in our turn we are planning to continue or to protect the profitability we have in Europe because it's the core market for SUJIFU. So again, without covering corona virus, we expect to slightly improve the profitability of company level with respect to 2019. Like improvement? Yes. Then you asked for the 2 new plants, which are Romania and regards to numbers and the anti environment. I'm sorry, but I can't hear you well. Okay. Morocco was a loss of €6,500,000 in 2019 and Romania 1,000,000 So Altice offered €7,500,000 of start up costs. Last in 2018, we only had Morocco euros which was mentioned by Mario in the bridge represented today. And next year, Romania should weigh more because it's being in full and that price. So the EBIT we are projecting should be in the range of €5,000,000 next year. Thank you very much. Just a quick follow-up. So you are not including coronavirus, but I'm just asking if your assumption on the global car production are not including the coronavirus as well. Is it correct? The minus 1.4% in Europe is not including the corona virus. Is it correct? If you refer to Slide 17 No, to Slide 20, to the first bullet in the 2020 outlook. So the sector services are expecting 2020 global car production to decline slightly with Europe at minus 1.4. This guidance from sector services are not including the coronavirus impact on the automotive sector. No, it's not significant. The next question is from Martino De Ambro, Givid Equita. Please go ahead. Thank you. Good afternoon, everybody. Mr. Fencio, you arrived a few months ago. So 3 general questions instead of being specific on the results. The first is on the restructuring activity because for several years, so JF every year had $10,000,000 $12,000,000 of restructuring costs. Are you planning to accelerate this kind of activity or we will continue to see every year some initiative maybe with the same magnitude. The second is PSA, FCA are going to be merged well known, but this will generate a client with more than 20 percent of your sales. So what is your feeling on what's happening, knowing that they want to put pressure on prices for all what is purchasing for them. And the third, you have 3 different businesses. In the past, there were rumors. I'm not asking you if in your mandate there is the possibility to or the mandatory the obligation to sell something or make a merger. But what is your idea on the potential M and A? Thank you. So let me say that first of all, I will ask to the shareholders to have a period of 2, 3 months really from today to prepare a roadmap for the future because I just started and we have to be fast, but we have also to be professional. And to be honest, learning from the company, how it works and how the market is going. Even if the market I know pretty well because I was working in the same market before. Without restructuring, I will define a better plan or a different plan in this coming period. So I will be more precise in the next time we talk. On the FDA PSA question, I have to be very careful because I come from FDA. So until 2 months ago, I was really within the group. The first check I did in Sogeti, by the way, on this respect, seems to be very positive because we are covering on both sides a good market share. And I think the product portfolio harmonization will help suggesting from this standpoint to be a better supplier for the joint group. Of course, the pressure on prices will come and we need to react. But from the portfolio standpoint, I see Sergey well placed in this game. About the 3 different business units, again, I have to apologize for the reply, but I will take the coming months to understand and to take some actions or to prepare that the plan. What is very key for me for the time being is to improve the value of the company because this is very urgent and for me is the first priority I have, including cash. The 3 business units are improving in some areas the profitability. And I think I have to be sure that this road map is really covered discovering all the geographical areas and discovering, I would say, the scenario we have just discussed. But again, my first task is to make a suggestion, I would say, to give more value to the shareholders and to improve profitability. Okay. Thank you. Two quantitative questions for Jan. Sorry, but I missed your indication of tax rate. Was it 50% for this year and going forward because of the startup costs? Or I missed something. So I know it's a question has great interest in the analyst. The movie has not been good in previous years because we've had a very high tax rate, which is 8% to 6% in 2019. We are going to keep on having startup costs in the new plants, especially in Romania. So as I explained before, till Romania gets on breakeven, we are not going to accrue different tax effects. So that's one reason why the tax rate will remain higher than we wish. We also have areas in loss, and I'm not going to hide Latin America is struggling at present. And this is going to keep on for a while till we fix it. And therefore, what we are shooting for is the tax rate roughly of 50% in 2021. So there should be an improvement in 2020. We are shipping for roughly 50% in 2021. And then if the plan happens as we have made it, we should reach something in the region of 30 percent in the following year. Okay. And just your target in terms of financial costs? Target in terms of financial costs is to keep on reducing them. The main items to deepen will be to restart generating cash in the coming years. Okay. Thank you. The next question is from Alexandre Rovere, David, Kepler Cheuvreux. Please go ahead. Good afternoon, gentlemen. Thanks for taking my question. I have two questions, please. The first one on the sales guidance. I just wanted to clarify one point. I mean, is the guidance of flat sales on an absolute or relative basis? So just to understand if you expect global pollution down 2%, do you expect to outperform by 200 basis points? And then on profitability, so some suppliers took a more cautious scenario already. You expect minus 2%, some of them said minus 3%, whatever. But do you still expect to improve profitability even with the market down 3%, for example? From which level does it start to be a bit stretched for you? So any indication would be helpful. Thank you. What we have said in terms of sales guidance is that disregarding the impact of the coronavirus, which no one can know at this stage, we are shipping with total sales for the group roughly in line with 2019. So this is against a scenario in which for the time being the IHS predicts a minus 2% evolution at the market on a full year basis. So we plan daily and our other intake to beat the market by roughly 200 basis points. And Mauro speaking. On the second question, the reply is yes. We are planning to continue the improvement of cost that has been, I would say, quite visible in the last year, if you remember the slides that I showed with the picture. In order to be safe for 2020, mainly in the The next question is from Fransaro Diardi, Intermonte. Please go ahead. Hi. Thank you for taking my question. Just a quick one on South America. So you mentioned it was still a source of loss for the company this year. Yet the growth projection by AHS for the market next year are pretty good, 4% if they report correctly. Is there any developments or is there any particular developments you're looking at for this region going forward. And then for the Romanian plant, if I understood correctly, we should not expect any contribution on top line margins for 2021. Can you confirm that? Thank you very much. So I replied for Brazil and Argentina. The market there, as you said, is in good shape. And but we need to talk business by business because we have different scenarios. First of all, for suspension, we would like to leverage our market position, which is pretty stronger on both sides, Brazil and Argentina, to improve a little bit market share and profitability locally. On the filtration side, unfortunately, the situation is a little bit less critical under recovery. So we are not planning to grow filtration locally more because we are improving the performances of this business unit in Brazil and in Argentina. And about Oribeir, I think has been the last question. As I written in the slide, the contribution will come from 'twenty two on to the business. Currently, we are ramping up the plant. We have the first clients already sold, and this will last this year and also next year too. So nothing unusual there. It's the standard plan set of a new plan. It's meant to be a significant planned Soguchi. It should be our largest plant at the end of the 5 year plan. And therefore, ramp up costs till 2021, We expect a positive contribution in 2022, and there should be a big increase of the contribution from 'twenty three onwards. This is totally in line with the standard transfer for the new plants. Thank you. And just in terms of volumes, so what kind of output are you expecting? Because we know in terms of square meters, but in terms of annual pieces production capacity, if you can give us some indication on that. The range we expect at full speed because as Jan said, it's a plant which will be at the speed one of the largest plant of Sogeti. And by the way, also the content of automation in the plant is, I would say, higher than in other places. So to guarantee quality and cost will be in the range of €60,000,000, €70,000,000 That's in euros? That's in €60,000,000 €70,000,000 Yes. The next question is from Gabriela Gamarova with Banca Akros. Please go ahead. Yes. Thank you for taking my questions. The first one regards the CapEx level for 2020. Then another question on variable and fixed costs. So they had a positive contribution in 2019. So I was wondering if you envisage a positive contribution even in 2020, especially in terms of raw material costs. What do you expect? And then last question on the write down, the €10,700,000 write down. I was wondering what does it refer to? I understood that nearly 50% regards suspension. And I argue it has to be with, let's say, the plastic spring suspension, but any granularity would be useful. Thank you. So on CapEx, as I mentioned before, we closed the year, the roughly €60,000,000 Next year, it should be higher. Next year, it should be more in the region of €67,000,000 €1,000,000 as CapEx, of which a sizable amount, €13,000,000, now over the next year. The next question is a follow-up from Gabriela Gamboa with Banca Akros. Akos. Yes. Sorry, I also asked you, I don't know if the line was okay, but I asked you also if you think that you will recover in terms of variable and fixed costs this year in 2020 as you did in 2019? I don't know if you got the question. Sorry about the line. It's quite disturbed. Yes, the reply is yes. As I said before, the idea is to go on with what we did last year and to get benefit to Ocean Vuicide in 2020. Okay. And my last question regarding the write down, the $10,700,000 write down you made in Q4. If you can tell me what was it about? Okay. So in the amount we mentioned before, we have I'm not going to expand too much, but we have more than €4,000,000 of what I might call non recurring because it's really a one off one thing we have cleaned up and which won't happen again. And then we have done a lot of cleanup in research and development. Okay, thank you. The next question is a follow-up from Martin Odambroge with Equita. Please go ahead. Yes, thank you. Just to know what is your assumption on the raw mat, particularly for the suspension division that this year should benefit finally after 2 or more years of negative impact should be positive this year. So what is the underlying assumption in your improvement in margins this year coming from raw mat? Of course, for suspension, as you said, the cost of raw materials of steel is clear, and that's why it would be live. We, in the plan, we assume that this trend will be continuous. Of course, we need to talk about region numbers because it makes no sense to have a very reliable we are considering a 1% benefit in cost in Europe. Let's say as a filler word that costs are going in the wrong direction. The next question is a follow-up from Gabriela Gamaru of Vibranco, Akram. Please go ahead. Very last question from my side. Do you see any potential risk coming from the supply chain? I mean, what I wanted to know is if you basically work on a local for local basis in every region or you depend in some way or another from imports from China? So what I would like to understand is if, let's say, the problems in China can have a material impact even on other markets you shared. So, Maura speaking, from this standpoint, I would say that most of the buying volume we have is outside China. Of course, like others, we have a few cases where we rely on Chinese suppliers. And we are today in the task force, as I said before, managing them carefully day by day in order to be in tandem with our deliveries with the customers. But I would say that compared to other companies, Sogeti is more buying in other places than in China. But of course, we have to be careful in some specific cases to be to pay the attention, the right attention on the Chinese suppliers. So it's not very significant that all active ingredient facilities will make the hit directly or indirectly, and we monitor the situation very closely. We know it's fine solutions because no one wants to interrupt the production of the carmaker And for the time being, we've done solutions. Okay. Thank you. Gentlemen, there are no more questions registered at this time. So I really would like to close this call. Thanking all of you for your time. Hopefully, next call will be a little bit more detailed in some areas. And again, to the next time and roughly when we read the next call, the corona deal, which issue would be more manageable than today. So I thank you very much for your time. Thank you.