Welcome to the conference call on MTU Aero Engines third quarter results 2022. For your information, the management presentation, including the Q&A session, will be audio taped and streamed live or made available on demand on the internet. By attending in the conference call, you grant permission for audio recordings intended for publication on the internet to be taken. The speakers of today's conference call are Mr. Reiner Winkler, Chief Executive Officer, and Mr. Peter Kameritsch, Chief Financial Officer. Firstly, I will hand over to Mrs. Claudia Heinle, Senior Manager of IR, for some introductory words.
Good morning, ladies and gentlemen, and welcome to our Q3 earnings call. First of all, I would like to apologize on behalf of Thomas Franz, who is unable to participate in our conference call today as he's unfortunately ill. Get well soon, Thomas. As usual, we will start with a review presented by Reiner. Peter will provide the financial overview and details on the segments. Finally, Reiner will guide you through our latest outlook on the remainder of the year. This concludes our presentation, and we will open the call for questions. Let me now hand over to Reiner for the review.
Yeah. Thank you, Claudia, and also a very warm welcome from my side. The robust positive trend of air traffic recovery continued in August, with passenger traffic reaching 74% of pre-COVID-19 levels. Domestic traffic improved to 86%, while international traffic is at 67%. Cargo traffic showed resilience in August, being slightly above 2019 levels. Recovery is underway, but ongoing challenges, such as recession fears, price inflations, and a new wave of COVID-19 infections during winter, they remain. This needs to be monitored closely. Our new parts repair shop, MTU Serbia, officially opened its facility near Belgrade. It has a capacity of 470,000 repair hours and will increase its workforce to more than 400 employees over the coming years.
Repair instead of replacement, not only is this a major cost saver, but more than that, it is also a driver to a more sustainable business. The additional MRO capacity in Serbia will further improve our strong and flexible network and boost our ability to offer competitive services in the global market. We have signed an agreement detailing our aftermarket participation in the PW800 engine program. This enables us to perform full overhauls of PW800 engines at our site in Ludwigsfelde. This further strengthens MTU's positions in the heavy business jet segment as the PW800 engine powers 4 business jet applications. Currently, there are more than 300 engines in operation, and the number continues to rise. Pratt & Whitney has started flight testing with a GTF Advantage engine on an A320neo aircraft. Flight testing and certification work will continue through the first half of 2023.
The entrance to service is expected then in 2024. The GTF Advantage configuration will be the most powerful engine for the A320neo family, enabling increased range and payload for airlines. Additionally, it will offer full compatibility for sustainable aviation fuels. We greatly appreciate the decision of the governing board of Clean Aviation in favor of our proposal based on the WET technology. Clean Aviation is Europe's leading research and innovation program for transforming aviation towards a sustainable and climate-neutral future. MTU's WET concept is 1 of 20 successful projects which will be supported by a EUR 700 million budget. We are very happy to announce that Silke Maurer will join our team in February next year. She's taking over the responsibility for the OEM operations division as Chief Operating Officer.
Our present Chief Operating Officer, Lars Wagner, who will become CEO on January first next year, will remain responsible for technology and engineering. Additionally, he will be keeping his responsibility for sustainability. By appointing Silke Maurer, we have secured a high-profile manager with extensive experience in operations for our company. Finally, based on the good results in the past month and the stronger US dollar, we raised our full year expectations slightly. I will give you an update in a few minutes, but let me first hand over to Peter for the financials.
Yes. Thank you, Reiner, and also a warm welcome from my side. In the first 9 months, total group revenues increased 27% to more than EUR 3.8 billion. Obviously, we had quite some tailwind from the US dollar at 107 in 9 months, 2022 versus 120 in the 9 months 2021. In US dollar terms, revenue were up 14%. EBIT adjusted increased almost 50% to EUR 448 million, resulting in an EBIT margin of 11.7%. Net income adjusted increased respectively 45% to EUR 319 million. Free cash flow was EUR 290 million, was up 7% compared to last year's figures, which is perfectly in line with our full-year expectation. Free cash flow generation was still strongly influenced by mainly supply chain driven working capital headwinds.
Now let's dive into our business segment, starting with the OEM division. Total OEM revenues increased 17% to EUR 1.2 billion. Within that, military revenues were stable at EUR 309 million. Q3 here was a bit weaker than expected, mainly driven by slight delivery delays of some production engines and MRO services. Commercial business revenues rose 24% to EUR 950 million, and within that, new engine deliveries were up in a mid-single digit percentage number. GTF deliveries further improved, and sequentially, we saw also improvements in the GEnx deliveries caused by the pickup of deliveries of the Boeing 787 to airlines in August. Organic spare parts were up in the high teens, perfectly in line with our full year guidance. Main drivers were obviously narrow body and freighter engines on the one hand side.
On the other side, we also see good demand for BizJet engines as well as for the GEnx platform. This favorable business mix overall resulted in an EBIT adjusted of EUR 251 million with a margin of 20%. Let's move on to the commercial MRO segment. Reported MRO revenues increased 32% to EUR 2.6 billion, while US dollar revenues were up 70%. The GTF MRO share is lower than our expectation for the full year, rather in the 30% area. Over the past 9 months, we saw a lower number of GTF engines in the shop. In addition, these engines needed a smaller work scope than anticipated due to better durability of certain parts of the engine. We saw this already in the half year, and the situation remained more or less stable.
For Q2 2022, we expect an increased level of GTF MRO output, but the revenue share will remain below the 40% which we expected at the beginning of the year. EBIT adjusted in the MRO segment almost doubled and reached EUR 196 million, resulting in a strong margin of 7.4%. The higher EBIT margin is especially driven by the mentioned favorable business mix of independent versus GTF MRO. In addition, we see a healthy IGT business and of course the current US dollar exchange rates are supportive. At this point, I would like to hand back to Reiner for some words on the guidance 2022.
Thank you, Peter. Based on the strong results achieved over the first 9 months and the current environment, we can slightly increase our guidance. We have upgraded our group revenue outlook in euros to the range of EUR 5.4 billion-EUR 5.5 billion, based on a stronger FX rate of an average 1.05. Within this, we expect revenues for the commercial MRO revenue to increase from a growth in the high teens to a growth of about 20%. The top line outlook for the military commercial OE and spare parts business remains unchanged. The EBIT adjusted is expected to grow stronger than initially anticipated, and we now expect a growth in the low 30% range. Our previous expectation was a mid 20% growth.
The outlook for the cash conversion rate is also confirmed, and we have now forecasted a narrower range of 60%-70% from a broader mid to high double-digit percentage range. With this positive outlook, we end the presentation. Thank you very much for your attention, and we are now ready to answer your questions.
Thank you very much. We will now begin the question and answer session. If you would like to ask a question, please press star one and one on your touch tone telephone. The operator will announce your name when it's your turn to ask a question. Robert Stallard from Vertical Research, may we have your question?
Thanks so much. Good morning.
Morning.
2 from me. First of all, I was wondering if you could clarify what the spare parts growth was in the third quarter of the year, whether you're expecting any positive impact from the pull forward of any price increases in the fourth quarter. Secondly, could you give us an update on your expectations for the energy situation in Europe and whether you're facing any shortages? Thank you.
Yes. Maybe coming to your first questions regarding spare parts. In the first quarter, the spare parts portfolio was roughly up 20%. Yes, September was a bit stronger compared to its July and August, and that might be driven by the spare parts price list increase by price increasing. You cannot obviously quantify that. Definitely September was the strongest quarter and strongest month in the quarter, yeah. On the energy situation, I think there's no news flow from that. Actually, at MTU we do not see any shortages for energy.
I think we have mentioned it already that we have a very low exposure, especially to gas, and we have also switched to other energy sources in many regions. I would not expect for this year and for next year huge issues for MTU.
Yeah, just a quick follow-up on that, Reiner. I think Airbus had said that they'd started to do some sort of buffer stocking in case there was an energy problem in the winter. Have you been doing anything similar to that, or have your suppliers been doing anything like that?
I don't know that. Sorry, but we can check it.
No, we ourselves didn't. We didn't create a buffer stock for let's say a blackout or something like that. We don't foresee such a scenario currently, yeah.
Right. Okay. Thank you very much.
Mr. George Zhao from Bernstein, may we have your question?
Yes. Hi. Good morning, everyone.
Hi.
First on the guidance, I guess what drove the organic revenue guide upgrade for the MRO division, you know, considering that the GTF work has been coming in lower than what you've expected. Second one, turning to the cargo. I guess, what's your outlook for just cargo traffic, and how do you assess the trade-off between recession risks and the slow wide-body recovery for your dedicated cargo fleet? Thanks.
I mean, part of the, I would say I wouldn't call it weakness because doing less on PW1100 or on the PW1100 fleet is finally a good message as we don't have the aftermarket cost and the aftermarket contracts are finally more profitable. Part of the, let's say, weakness was already. We saw that already in the half year. Now, I mean, we have a bit stronger business in the independent MRO contracts like the V2500, for example.
What we currently see is really a strong business with IGT, so industrial gas turbines, which we do in our Berlin facility. We see very rich and heavy work scopes and that is a very healthy and also very profitable business. Currently I would rather see the cargo situation in our, let's say, with our customers more or less stable. I mean, before, in the summer region, there was more demand versus our possibilities to offer slots. I wouldn't see for our cargo universe, I wouldn't foresee a big impact or slowing down of our business with cargo operators.
We also don't see that in the spare parts business. I mean, you know, we have the CF6 engine, we have the PW2000 engine in our portfolio, and we don't see, let's say less demand now driven by lesser demand from cargo operators or so. This is a more I would rather call it a stable situation in the cargo market. There's no indication for any slowdown.
Great. Thanks.
Thank you. We will take our next question. Please stand by. Mr. Benjamin Heelan from Bank of America, may we have your question?
Yeah. Morning.
Morning.
Thanks for taking the question. I've got a few. On military, you mentioned delays in production and maintenance. Could you give us a little bit more color exactly what is happening there? Is it a supply chain issue? Is it an issue with the customer? That would be the first question. Second question on GTF. It feels like things are improving and you're seeing those deliveries come through. When we think about the profitability impact of GTF when we go into 2023, you're gonna have higher volume, better fixed cost coverage, but also it's a loss-making engine, so there'll be a headwind from there. Is there any color that you can give us today in terms of how we should think about the headwinds or tailwinds from GTF ramp as we go into 2023?
A final question on associate income. It looks like there was a drop in associate income in Q3. Could you just talk a little bit about what actually drove that? Thank you.
Ben, military business, I mean, it's a supply chain issue. Parts deliveries and also parts from the partners in the program with EJ200 program and also in the Tornado engine. The parts are missing. The supply chain is currently a little bit weaker. A lot of engines, a handful of engines, they will go into the fourth quarter. I mean, if you look where we are after the third quarter with a little bit more than EUR 300 million and the expectation for the full year, which is roughly at EUR 500 million. We can expect a quite strong quarter in the military business.
That's what we expect. We recently did a forecast, and the forecast was still so committed. It shifted into the fourth quarter, and that is OE production, but also if parts are missing, it also hits the aftermarket. Obviously, when you do an overhaul of an EJ200 on RB199 engine and you need a new spare part and you don't have the spare part, then the delivery to the customer moves into the fourth quarter. Associated income, that's driven by the LeaseCo company.
That's the company which is managing the lease pool of the GTF engine and that moves downwards significantly in the 9 months 2022 versus last year. 2 reasons. On the one hand side, we did that already in Q1. We fully wrote down the leasing pools of the leased out engines to Russian customers. That is a magnitude, let's say 6-7 million EUR or something like that. We adjusted that and EBIT adjusted. On the other hand, they did a lot of overhaul of the GTF lease pool. That drops into the cost of the company.
That's why the net equity contribution of this company dropped from, let's say, EUR 50 million last year to 0 this year. It's not. It has nothing to do with Shanghai. Shanghai is more or less stable than the net equity contribution. It's as I said, attributed to the leasing company. GTF head and tailwinds. I mean, on the one hand side we are still working on obviously improvements in the profitability, also on the manufacturing costs of the GTF platform, so PW1100, PW1500 predominantly.
Yes, I mean, we have a higher fixed cost coverage, driven by the volume as, I mean, as you know, I mean, the production of the GTF engines are highly automated. For 2023, I mean, we will talk about that in our Capital Markets Day a bit more, but I would see the ramp up rather in the neutral area and next year versus this year. No tail and no headwind.
Okay, great. Thank you for the color.
Thank you. We will take our next question. Harry Breach from Stifel, may we have your question?
Yes. Good morning, Reiner. Good morning, Peter. Good morning, Claudia.
Morning.
Morning.
Morning, all. Thanks for taking my questions. Get well soon, Thomas. If I can ask maybe 3, guys, I guess when we think about GTF deliveries, can you give us any feeling about how the number of deliveries sort of increased in the third quarter versus the second quarter, and whether the fourth quarter should be up sort of in the same range versus the third quarter, as the third was to the second? I'm trying to get a feeling really for what the headwind to margin could be as we go into the fourth quarter. Secondly, thinking, you know, knowing the press release, I think you said that you expected a commercial MRO, that the mix of GTF revenue should be back up towards 40% in the fourth quarter.
I'm just wondering, can you help us for the sort of reasons behind that thinking? Is it based strictly on the engines for induction into the shop in the fourth quarter or the completed engine shipments out of MRO in the fourth quarter so you've got high confidence in saying that? Then maybe just a quick one. In terms of commercial MRO overall, you know, earlier in the year, I think you spoke about engines, you know, outside the facilities at Hanover and elsewhere. Just wondering if the sort of pent-up demand, if you will, the sort of waiting lists are still around the same as they were earlier this year, maybe coming down a little bit, maybe even going up a little bit. That would be very helpful.
No, I would say the pent-up demand, so your last question, it's rather neutral. It's still, I mean, it's still more or less on a quite high level. I mean, you see that globally that MRO capacity is short, yeah. That hasn't changed that much in the course of the year. I would even say that the situation, so the balance between supply and demand has gotten more negative. The demand really strongly grows and no additional, not a lot of additional capacity comes online now.
Regarding, I mean, GTF MRO share in the fourth quarter, yes, we have quite a visibility there because, I mean, you know, we have, we do a lot of, we do GTF MRO not only in our Hanover facility, we do it in our Polish facility, so the EME Aero engine. Regarding OE deliveries, I mean, the first 2Q in the year were a bit weaker, so we have really a sequential improvement now. We have seen that in the third quarter, let's say, OE sales were up in the 20% range for the whole portfolio, and I mean, obviously, if you do the math, then you can see that, I mean, in the fourth quarter, OE deliveries have to grow 40%-50%, based on.
We see we're gonna see a lot of ramp-up of deliveries for the PW1000 engine. I mean, it's not only our work share. Obviously, you know that Raytheon said that in the second quarter and the first quarter this year, that the engine shipments shift to the end of the year because of their supply chain problems. Now we see a lot of recovery of the delivery shipments from the first and the second quarter in 2022. That will happen now in the fourth quarter.
Not to forget, I mean, we see also sequentially a pickup of deliveries of the GEnx engine. We know that Boeing has restarted deliveries to customers for the airframe in August, I guess, mid-August. That also triggers again deliveries of our GEnx modules to GE and then further from GE to Boeing. Yeah.
Clear. Thanks, Peter.
Thanks.
Thank you. We will take our next question. Chloé Lemarié from Jefferies, may we have your question?
Yes. Good morning. Thank you for taking my question. I'd have a couple actually. The first one would be on the spares momentum, and what you see in Q4, in terms of volume versus pricing. I'm thinking you would have kind of low teens growth in Q4. I would think that most of it would actually come from price increases. If you could quantify that a bit, that would be great. Also, how would you qualify the discussion with customers on pricing now that I would assume they're pretty significant versus last year? Are you seeing them pushing back a little bit more than usual?
My second question is on China and the activity that you see in Zhuhai, because traffic has been relatively poor this year. How you see the level of demand specifically in Zhuhai for shop visit? Has it come down by any means? Thank you.
No, I mean, in the spare parts guidance, I mean, also in our original guidance, there was a certain level of spare parts price increase incorporated into the guidance. Yes, I mean, it's something like a low teens spare parts growth in the fourth quarter. That's correct. There will a significant part of that comes from spare parts price increases. I mean, you know that, I mean, Pratt has increased it in the low teens also. CFMI and GE are more or less in the same ballpark. But I think they come in a little bit later in the year.
Yes, that's the most important driver for spare parts growth is pricing, yeah.
China.
China, Zhuhai, maybe we saw in the second half of the second quarter, we saw a dip in deliveries to, or induction of shop visits due to the lockdown situation in China. Now we have received, let's say, at least a recovery of deliveries to our facilities. For especially the V2500 engine, also to a lesser extent, the CFM56 engines. What we currently do is we ramp up also PW1100 in Zhuhai. These are also heavy shop visits and create quite some workload there.
The facility resource, they're currently in the process of building their second test cell, which will be up and running in the second quarter 2023. We will have more capacity also in Zhuhai. That is it.
Discussions with customer price increases?
No. I mean, as I said, we have I mean, especially in the MRO business situation, that there's less capacity than demand. So there are no discussions about pricing or so, or discounts or whatsoever, no. They don't take place.
Very clear. Thank you.
Thanks.
Thank you. We will take our next question. Christophe Menard from Deutsche Bank, may we have your question?
Yes, good morning.
Good morning.
I have 3 questions. Good morning. The first one was on the MRO margin, which in Q3 is actually a good level, considering the circumstances. I was wondering what was the overriding element. Is it gas turbine? Is it FX, or is it the lower share of GTF or a little bit of everything, you may say? And how should we think about the-
You said it already.
Gas turbine profitability? Let's say, okay. I mean, okay, well, should we be thinking about gas turbine profitability as better than independent MRO or is it same type of margin level?
Yeah. I mean, the industrial gas turbine business is typically more profitable than independent MRO business, yeah.
It's a mix of everything. The second question is the target rates for hedging. I mean, you improved your hedging in this quarter-
Yes.
I mean, for 2023 and beyond. Should we be thinking of? I mean, do you have in mind target rates for 2023? I mean, 2026 is obviously very appealing. But I mean, do you have a sequence in mind or how should we be thinking about this? The other questions are around HR. I mean, that's the last one. It's around the salary renegotiation, if you can give us an update and also more specifically around FCAS, have you stopped the hiring plans for additional engineers or are you still hiring people for the FCAS program?
I mean, regarding hedging, no, we don't have a target hedge rate or so to say. I mean, we have our step hedging models, so we can theoretically hedge out until 2026. We have a lower band and a minimum level and a maximum level for each quarter. We execute that on a more or less mechanical way. We don't speculate. We really do that not with relfs or something like this. We do that only with clean forward contracts. We do hedge accounting, so the unrealized gains and losses go into the equity and the realized go into the PNL.
Typically we start with 90% hedge cover in Q1, and then it goes down to. The latest quarter is between 0% hedge coverage and 30%. We can go to zero, let's say, in 2026, and you can go to 30% hedge cover in 2020 to 30% in 2026. Obviously, when you can lock in a forward contract at 1.04 for 2026, you do that. Is it the best possible point of time to lock that in? I don't know that.
I don't have a crystal ball, but what I can say is that a hedge of 1.04 in 2026 is probably a good thing. For us it's a very good FX rate. We have a model in place with minimum and maximum levels, but obviously we go up and down depending a little bit on our expectation. But we don't have a target hedge rate in mind.
Coming to your other questions, starting with the salary increase negotiations, they are going on. We expect I would say I would expect a solution or a result maybe in the course of second half of November. Yes, it will be higher than in the past due to the actual situation of inflation and so on. On the other side, you should have in mind that we have also some contracts where we can pass the higher cost to the customer in military business, but also in some commercial activities. There is, with some time delay for sure, but it's possible. On the FCAS, we hired already in the fourth quarter of last year some I would say 60-80 engineers. Sorry.
After the situation that the contract was not finally signed, we stopped that. We used these engineers for other activities. During 2022, we have not hired yet additional engineers. We expect a solution or for in that program also towards the end of this year, and then we can start beginning of next year with hiring additional engineers.
Thank you very much.
Thank you. We will take our next question. David Perry from JP Morgan, may we have your question?
Yes. Hi. Good morning, Reiner Winkler and Peter Kameritsch.
Morning.
Can you hear me?
Yes.
That's great.
Peter Kameritsch, can I just start by embarrassing you a bit because I think it's your last call.
Yes, it's my last call.
Listen, can I just congratulate you on a huge success MTU's been since the IPO under your leadership. I just checked that you are the best performing European A&D stock since the IPO.
Thank you.
Congratulations, and I wish you well for the next phase of your life, although I think we will see you at the CMD.
Yes.
Great. Peter, 2 questions for you. I know you're gonna try and resist answering, but let me try. Look at the CMD last year, you gave the guidance for 2024. It was a bit open-ended. All you said was EBITA could be above in 2024, could be above 2019. Look, FX is now 12 cents better. I just wondered if you plan to be more precise about 2024. I guess following Christophe's question, I mean, it's clear on your slide today, the big open FX exposure is in 2025. Will you extend the guidance out to 2025? That's the first question. Then just a second one just on FX. Can I just clarify what is your net dollar exposure, i.e.
Your gross dollar revenue less your dollar costs? If I look at that slide today, with the FX position, can I assume that the $1.4 billion of hedging in 2022, does that mean your net dollar exposure is $1.4 billion in 2022? Then that will grow as the business grows? If that question makes sense.
Yeah. That makes sense. Your last question, yes. I mean, that's in 2022 we are more or less completely hedged. We can assume that $1.4 billion is our US dollar exposure and that obviously grows as the business grows. Yeah, that's a good rule of thumb there. Exactly. I mean in 2023 and 2024 then obviously the hedge cover declines. Then more or less, I mean, in 2025.
You see that, I mean, in 2026 we have placed the first hedge contract there at the rate of 1.04, but that is maybe. It's below 10% of the exposure, obviously far below 10% of the exposure in 2026, yeah. We will be more. I mean, in the structure of our guidance on the capital markets, it will be the same. I mean, we will be more precise for 2023 obviously giving the business drivers and so on. Then we will talk about the business development until 2025. Sure. Yeah.
You'll just extend your envelope 1 year?
Yes. Yes.
All right. Okay.
I mean, more than anybody knows what the FX rates will be in 2025. It's the tricky one. Forecasting FX rates is not so easy.
Well, I guess if I can just follow-up on the FX. I mean, we sort of had a message from Airbus at their CMD a month ago, I guess it was, saying, "Look, we won't keep all of the FX benefit because we think it'll be consumed by things like inflation and other headwinds." I mean, is that a framework to think about MTU? Or do you think, obviously, we don't know what the FX will be, but let's assume it stays at today's rate. Do you think you can retain a lot of the upside?
At least we can retain. I would say the ambition would be we can retain. Well, I can't say all of the upside, but at least a share of the upside, yes. That's definitely the ambition. I mean, regarding inflation, I mean, obviously we try to pass on as much to customer as possible. Also we have, obviously, we can work also on our internal efficiency also with the methods of the digitization and things like that. But I mean, yes, part of the inflation will hit our P&L, but the most of it I think we can compensate. Yeah.
Okay. Thank you.
Thank you. We will take our next question. Richard Schramm from HSBC, may we have your question?
Yes. Good morning, everybody.
Morning.
Not sure if I missed it. I have a question concerning the cash flow statement and just would like to have a bit of more information about this huge turnaround in the changes in provisions and liabilities, which at the end of the day was the trigger for this increase in the cash flow and free cash flow you could achieve, despite this huge uptick in working capital. Maybe you can shed a bit light on this one. Thanks.
I mean, if you look at the cash flow statement then, the change in provision and liability is finally a correction of what is booked in the earnings. It's not the reason for the higher cash flow. I mean, what you can say is that from the EUR 200 million change in provision, half of that comes from FX. I mean, we have, as you know, most of the provision are US dollar denominated, and if you start the year with 1.13 and at the end of Q3, it was 0.997, then you have 0.15 valuation difference.
Obviously that drives up the value of the provision in euros significantly upwards. That is, I mean, you have the same impact obviously on the receivables, but you also don't see the impact of the receivables in the provision line. You see that in the working capital line. That moves the working capital upwards. If you look at that on each line item, then you have to offset, let's say, provisions with working capital change. Yeah.
Okay.
It's a valuation issue.
It's fair to say that this is also then driven by the payment from the US dollar you see.
Exactly.
It's not only on the earnings side but also on the cash flow side then.
Sure. I mean, we are hedged. Yeah, I mean, a lot of our business U.S. dollar driven, a lot of balance sheet positions are U.S. dollar denominated, and they are all subject to revaluation to euros based on the spot rate at the respective quarter. You have a lot of valuation effects in the cash flow statement. Not only in the-
Yeah.
provision line, but also on the working capital line. I mean, if you buy a spare parts at the value of $100 and you have a spot rate of 1.20, then you might have that, you might have EUR 80 on the balance sheet. If you have 0.97, then you have, let's say, EUR 103 on the balance sheet. You have an increase of 30% in working capital, but it's the same part, yeah. That's the effect.
Okay, thanks. That's very clear.
Yeah.
Yeah. Thanks a lot.
There seems to be no further questions, so I would like to hand back to the speakers for closing remarks.
Thank you very much for your attention. If you have any further questions, please feel free to contact the investor relations team. Thank you very much and have a good day. Bye-bye.
Bye.
We want to thank Mr. Reiner Winkler and Mr. Peter Kameritsch and all the participants of this conference. Goodbye.