Morning, welcome to the conference call of OHB SE. At our customer's request, this conference will be recorded. May I now hand you over to Mr. Marco Fuchs.
Good morning. Thank you very much. Good morning to OHB's first quarter three-month results 2020 call. I hope you have all been able to download the documents that have been put on the system this morning. We published our three-month results. Our Q1 report has been published, and as always, I'd like to walk you quickly through the slides. Of course, we have time for Q&A. This is a special time for a Q1 call now after two months of COVID-19 impacts. I guess what you see in our numbers and in our documents is that the first quarter has been reasonably normal. I start on page two with the recent developments from the operational side. We had two additions to the management boards of the OHB System.
Chiara Pedersoli started early January, Uli Scheib was appointed a member of the Vorstand of MT Aerospace. Maybe I quickly also introduce my colleagues here as well. Jump immediately to the slide, because I'm here together with Kurt Melching , Lutz Bertling, and our colleagues from the financial department, and Martina Lilienthal is here as well. Operational progress has been quite successfully and significantly with regard to a number of design reviews that have been completed. Even in a home office mode, we have been able or as they call it in Italy, they don't call it home office in Italy, they call it smart working. In Italy, we closed the critical design review for the ground segment of NAOS. We had very successful progress in the system critical design review for the Heinrich Hertz mission and the preliminary design review of PLATO.
In the launch earlier that took place of the Solar Orbiter, where OHB Italy was on the payload side with the latest payload and OHB Sweden was involved with the propulsion system and the electric control system. Pretty normal work in OHB. Going on to page three, we see that we do have also, of course, impact from the COVID-19 crisis. Space industry has been relatively crisis resistant because the demand for space products is still sound, of course, driven by the usefulness of space products. The long-term nature of our order intake, our projects, is a plus in a situation like that. Of course, certain risks do exist in our industry. We have a delay of order intake because of potentially decision-making delays due to the slowdown in the decision-making process at some customer organizations. We do have also some impact from restrictions.
For example, the Galileo test center in Noordwijk was shut down, we lost time there. There's a lot of uncertainty in the whole world these days. Of course, it's the same for us. Due to the high degree of uncertainty, we decided, we proposed as the Vorstand, the supervisory board, and the joint review. We did propose to the annual meeting that there would be no dividend paid for the year 2019. Our annual meeting will take place on May 26th, as it was always planned to be. It will be a virtual meeting. This will be a new experience for all of us, but of course, many companies have this year virtual meetings, and it will be the first time the people will be there, and no dividends will be proposed and very likely will be adopted.
If you go to page four, another key point obviously is the impact of the COVID-19 pandemic situation with regard to our guidance. During our capital market day on February 13th, we issued the guidance for this year of EUR 1.1 billion total revenue. We are forecasting for 2020, EUR 80 million in EBITDA and EUR 44 million in EBIT. At present, it is not yet possible to see if the actual results at the end of this year will or will not deviate from our plans that we explained in February. For this reason, we can neither confirm nor withdraw the guidance. It's not that we say we will be off. It's not that we say we will be weaker. Just at this point, because of the uncertainty that is around the whole economy, but also especially the timelines, as I explained earlier.
We are making the reservation that the guidance cannot be confirmed nor withdrawn for the time being. We'll have time to discuss that later in the Q&A session. If I go on page five, we see the quick overview. Backlog has decreased to EUR 1.3 billion. That obviously is the regular course of business in the first three months. We still expect, and we are still very hopeful, of very significant order intake coming this year. We'll discuss that later. Lutz can give you an update on that point. Q1 revenues are down to EUR 184. That's - 4%. EBITDA almost at the same level, EBIT and EBT are lower than before. It all ends in an earnings per share of EUR 0.36 this first quarter instead of the EUR 0.42 that we had last year.
It's a softer quarter, of course, basically with the slow number that we saw also in March. Compared to last year, the headcount has increased. It's almost 200 people more, or it's actually 173 people more. The company was significantly growing during the last four quarters. That is, I think, not a surprise. Even from last year's end, December 31st, where we were at 2,930 or 2,933, I guess, we still had 37 people more in the first quarter. The Q1 increase was also good. I move on to the next page six, group results compared to the last four years. You see the total revenues over the last five years, including Q1 2020 from 2016, 2017, 2018, 2019 onwards, is a steady increase and a little bit of slowing down now in this year.
EBITDA is pretty much on the same level as it was in 2019. Still the second-largest EBITDA we historically had in Q1. Strong results from Space Systems on page seven. You see that especially profitability is very strong. EBITDA with EUR 17.2 is a record Q1 result we ever had in our history. EBIT the same with EUR 10.8. The EBIT margin on own value added, if we take out the subcontractor who only passed through, a 12.6% strong result. Moving on to the next slide, eight, weak results in aerospace and industrial products. Weak total revenue, even weaker profitability with EBITDA and EBIT at EUR 2.2 and EUR 0.4 respectively in EBIT. That's weak. Of course, it has to do with the weak business around Ariane. That's not new.
The other small entities in this domain, the more industrial-oriented entities, have had a weak first quarter. Overall, this is a weak spot of our group. Unfortunately, I don't see that to improve very fast this year because the Ariane business we see still for the whole year to be very weak. The industrial activities, the small telematic and tracking and tracing activities will also have a weak year. This will be not a strong year for aerospace and industrial products. Cash flow, page nine, pretty much the same as last year. The minus EUR 50 is really by accident. This chart looks very much the same as the last year. We had a EUR 50 million operating net outflow. Investment also at around EUR 3 million.
What is a bit different is that we had a stronger net inflow from financing because in March, when the COVID crisis came, we decided to stock up our cash reserves at our accounts. This resulted in a more significant increase in cash. You see that the financing activities, you see the EUR 21 million more. Obviously, you see that the bottom line, that the liquid funds at the end of March have been significantly higher with EUR 160.5 million compared to EUR 60 million last year. That is a lot of precaution. That is a lot of unpredictability. Of course, the reaction with us was put ourselves on the safe side and have a strong cash reserve at the company. If we're moving through the balance sheet, page 10 on the asset side. I guess the biggest change here is the cash, actually, which is good.
The fact that the balance sheet got longer by EUR 35 million, basically cash-driven. As you can see, everything else is pretty much the same as it was on December 31st last year. That's a good sign. On the shareholders' equity and liability side, no surprise that the biggest change there is current financial liabilities. That was also the stock-up of cash. No significant change in the balance sheet. If we go on to page 12, a couple of selected financial ratios. Free cash flow, similar than it was last year. Net debt, slightly up from the year-end 2019 with EUR 192 million. I'll come to that in an overview. CapEx is the same level, low, very low, with EUR 4 million compared to the EUR 3 million last year. Own work capitalized is even lower.
I mean, it was EUR 1 million, basically not. There were no significant own work capitalized in Q1 2020. Return on capital employed is a bit lower than last year. If we compare that in a few slides with the historic chart that follows, it is pretty much a number that is very much normal for us. On page 13, the development of the net debt ratio. You see that over the last years, from 2015 onwards, the net debt, which is including the pension provisions that we have on our balance sheet, mainly for our MT Aerospace, has decreased from EUR 174 million in 2015, down to EUR 135 million at year-end 2019. You see more significant if you take the light blue and the net debt without pensions over the last years, because of the constant positive cash flow that we had over the last five years, went down from EUR 81 million to EUR 27 million.
Currently at Q1, at three months, it's up again. That's the regular course. Overall, we see that the OHB Group has been able to generate significant free cash flow over the last years. You can see that on page 14, where you see that around EUR 100 million free cash flow was generated in 2015, 2016, 2017, 2018, 2019. We see for the cash flow this year, even though all the unpredictability, we see a solid cash flow here this year. I'm sure Kurt will go into detail on that. On slide 14, you see the return on capital employed. Like I said, that's pretty much a regular number we have had also over the past years. In that respect, it's business as usual. On slide 15, what is not as in the past years is the investment spending.
You see the CapEx has been pretty high over the last five years, significantly driven by the investments in aerospace, the Ariane 6 facility, and significantly driven in OHB System investment in upgrades of clean rooms here at Mikroba and the satellite testing. Below this year so far, we will probably be significantly below last year average, especially that is the case for the own work capitalized. We had a high point in the own work capitalized in 2016 with EUR 29 million. You see that reduced over the past years down to EUR 10 million in 2019. This year we will be significantly below this 2019 number. Mainly the case because our massive effort in own work developed around large satellites, geostationary platforms, has been completed.
That's the bigger part that you see here, that has been successfully completed. We have still some investment going on, but not in such a massive sum. The years are coming where we have an investment honeymoon with regard to our own satellite development. The next slides have not changed at all. Shareholder structure unchanged since a long time. The analyst rating has been updated recently. Still a mixture between buy and to hold. What has changed on slide 18, significant change in the average daily trading, massive increase to one with 22,000, almost 23,000 average daily trading, significantly higher than last year. I have to say, last year was also very low with 4,000. We are now coming into territory where we should be. Overall, I think the stock did reasonably well compared to others in the crisis months.
Yeah, hence the quick run through. As I told you before, on slide 19, you see that the annual meeting will be a virtual meeting. The next quarterly report will be in August 11, half year report. With regard to investor relations activity, investment in the community, of course, it's a bit uncertain this year. Lots of conferences have been canceled. We're not really aware. It's hard to predict how this will end the year. This was my quick overview. Now I would like to open the Q&A session for you. Please feel free to ask questions. Thank you very much.
Thank you very much. We will now open the question and answer session. If you'd like to ask a question, please press star one on your touch tone telephone. The operator will announce your name when it's your turn to ask a question. In case you wish to cancel your question, please press star two. For questions, please press star one. First question is coming from Mr. Alexander Hauenstein. May we have your question, please?
Yes, hello. Alexander from DZ Bank. I've got four questions. Maybe we can go through it one by one. First of all, could you please provide some more details about where the difference is between March Q1 and April and Q2 are in terms of production size and utilization as well as other COVID-19-related issues in order to allow us to get a better assessment of the Q2 profitability by segment, please.
Yes. Kurt, maybe this is a question for you.
One question from second quarter is that there will be still an ongoing movement of milestones in our supply chain for to a later date. This may lead in the second quarter to a comparable low total revenues. On the other hand, we see no major impact on the profitability in Q2. We see in the first quarter already that in the Space Systems segment, the total revenues are a little bit lower compared to last year, but on the other hand, the profitability is good. Usually, we have each year in Q2 some profitability comparable weaker compared to Q1 due to the fact that the working days in Q2 is lower compared to Q1.
On the other hand, we see now first indications from the month April that the total number of productive hours is still an acceptable good level due to the fact that, in principle, our productivity figures are good concerning also the figures concerning like illness, like unproductive hours are still in a good shape and on a good level. At the end of the day, in summary, I expect for Q2 comparable lower total revenues with a shift from these revenues to Q3 and Q4 and Q1 next year, most likely. On the other hand, no major impact on profitability coming from or resulting from COVID-19.
Okay, thank you. The next question would be, could you please speak a bit about the potential deferrals or even cancellation, which you already mentioned. Which are the orders or projects that you have the biggest risk here? Thanks.
We don't have really the risk of cancellation, but Lutz will walk you a little bit through the impact on order intake.
First of all, good morning. In terms of cancellation, I wouldn't see the slightest risk. We don't have any indication that customers cancel existing orders. I haven't heard Marco saying this, honestly. That might have been a misunderstanding. In terms of order intake, I would say for most of it's nominal, and then there are a few risks and opportunities. What is nominal? Particularly all the ESA business. The results of the ministerial conference 2019, which were very favorable for us and for the whole space industry, have not been challenged. All countries are sticking to their commitments. The European Space Agency is actually doing pretty well in progressing on the evaluation of the different offers which have been placed already.
The first big things to come will be, on the one hand, the so-called Gateway, which is the new space station which will actually orbit around the moon. Here, we don't have order intake yet, but the proposal in which we have been involved has already been selected internally, we expect the order intake to come. The next one then is Copernicus. Copernicus is running nominal. It's foreseen that the ESA internal boards taking the decisions on the Copernicus missions shall happen on June 30th. I had a call with the responsible director of ESA last Friday, and he confirmed June 30th. They are on track with evaluation of these contracts. Hera, our asteroids deflection mission, the offer from us is due this week, Friday, and we expect this to happen, which means we will submit it and we expect by early Q3.
We are the sole bidder. Normally by early Q3, we should have an intake here. On the ESA business, honestly, I don't see any negative impact. If we leave ESA and we go to E.U., the one thing which might slip timely a bit is GTS, Galileo Transition Satellites. This might create even an opportunity for us. If ESA slips there, then to keep the overall Galileo system operational, they would need to have a gap filler and even a potentially larger gap filler than 14 up to now, which means we expect that there might be an additional order for Galileo G3 satellites. This order naturally would come to us because if you want to go for a gap filler, then you can just order more of the same.
If they would go to somebody else, then development efforts would start and the effect of being a gap filler to keep the operational capability of the constellation would be gone. A slippage of GTS would not degrade our chances for the next generation GTS, Galileo Transition Satellites. If it slips, it might create an opportunity even for this gap filler. Expected at this point in time on some Copernicus, which I mentioned already, which is a joint program by ESA and E.U. At this phase, the decision and the funding is fully coming from ESA. No impact expected there. National orders, we think compared to our plan, we do not expect any negative news. We might even see, here I can't go into any detail, we might even see good news in Q3. I'm simply not allowed to disclose any detail here.
Here again, I would say a slight upside. The one thing where I would see a slight downside or slight risk is on commercial business for telecom, but actually in our order intake planning, commercial telecom was literally nothing. Commercial order intake for oil and gas. Here, I mean with the current economic development and with the oil price, which we see at the moment, financing for oil companies is more difficult. We have one project in that area. Actually, to my surprise, the financing commitments which I have seen up to now, very recently, are good. This one, I believe, once we ink it on the paper. It's the one and only, the one single project where I would see a bigger risk, while on the other hand, I see opportunities as well, as I said. Overall, it's quite a balanced picture.
I don't see any overall negative significant impact. We might see something slipping from 2020 to 2021, but this is a bit unforeseeable. It depends a bit on how this Corona thing goes on, if there's a second wave or not, and so on. In substance, I don't see any significant risk for us.
Okay, interesting. Maybe I read another question, which is not an easy one, regarding the guidance. What are your underlying base case assumptions here in order to achieve the EUR 44 million EBIT? In which constellation will it be difficult or even impossible to reach it? To put it differently, how quick do you expect any kind of recovery for OHB? We all know it's impossible to predict exactly, what are your ways of thinking in terms of scenarios here?
That's not an easy question. Of course, in a time of uncertainty, the key thing is uncertainty. This is why we basically said to the guidance what we said. I think what you can see from Q1 is already a tendency that the top line is lower than last year, whereas the profitability in Space Systems, and overall on an EBITDA level for the group is not so much impacted. This is what Kurt just said, and this is probably more the trend that we also now, with all the uncertainty as a general landscape, we expect it to also be valid for the whole year. With the said that, our guidance at EUR 44 million EBIT was not, if you remember, let's say very overambitious in February to be careful because you remember that this was the guidance that was lower than some market expectation.
When we came out with the EUR 44 million in February, markets were not excited about it. Somehow it was good timing that we came out with a relatively low EBIT guidance. I think you might be able to extract from my comments that I don't feel totally uncomfortable with the EUR 44 million, but maybe I leave it to Kurt to go more into detail.
Great. It is really the case what Marco just mentioned. It's the question of uncertainty. It's the question of uncertainty, especially as I already mentioned, there are movements of important milestones in our supply chain, and it's really not predictable what will happen in the next months. We see a relaxation in some companies in south of Europe, in Italy, in South of France, and in Spain. If this relaxation and the, again, startup of open some facilities and open the companies and produce actually on a not full level, but if this will increase, then some of these movements will be recovered. I expect it will not be fully recovered for the whole year. Really, it's difficult to say.
On the profitability, if we proceed, if we can proceed our business as it can, as happened in the last month and also as happened in April, if this is the case, with no major influence from other and again influences from COVID-19, I see the profitability guidance is really feasible for us.
This is why we are not lowering the guidance. We're just saying it's uncertain. It's not a lowering of the guidance. The point is it's uncertain.
Okay. Yeah, that's understood. Thanks for that. Last question, very quickly. How does the crisis impact the Ariane 5 ramp down and Ariane 6 ramp up schedule or also the topics that you're faced with? Thanks.
My understanding that the ramp down of Ariane 5 is not much impacted. Our industrial ramp down is already more or less completed. We have delivered everything for Ariane 5 already last year. Our ramp down is there, and I think also the execution of the remaining Ariane 5 flights might be a little bit delayed because of the shutdown that we saw in French Guiana over the last months. I'm not aware of significant changes there. With regard to the ramp up of Ariane 6, the industrial ramp up on our side is there. We are manufacturing. We have delivered, actually, the first, and now we are working on the first lot of Ariane 6 ship sets. I don't know what it really means.
I think this will be later this year communicated by Arianespace or ArianeGroup what it overall means with regard to the Ariane 6 introduction. I have no real feeling. I think Ariane 6 development is on a very good path. I think technically, the rocket is ready. Let's hold our thumbs that the ramp up of Ariane 6 will go as the prime contractor plans to.
Thank you. Thanks for the trust. All the best.
Mr. Zafer Rüzgar from Pareto Securities, may we have your question, please?
Yes, good morning. Only one question from my side. Regarding the margin development in the Space Systems segment, it was quite impressive. Maybe you can shed some light on the reason behind this quite impressive improvement. Is it related to the mix, or is it related to the share of subcontractors or are there any other reasons?
At the end of the day, it's obviously related to the share of subcontractors. The own work share, the own contribution from the company is higher compared to last year, and the amount of subcontractors are lower compared to last year. That is the lead to an increase of margin to a very good level of now 7.56%. To be very honest and to be very clear, if there is an increase in the next quarter, that is the second and the third or fourth quarter, of the amount of subcontracts, then the margin looks a little bit lower. The bill looks a little bit lower.
Okay. Thank you.
Mr. Richard Schramm from HSBC, may we have your question, please?
Yes. Good morning. Just to follow up on this margin explanation you gave. I think you should have a quite good visibility on how the mix looks for each project between your own workload and the suppliers. As you indicated, we should expect that H2 will see here a change in this here, which frankly, I've seen in Q1, correct?
You mean a change in the sense of what our own work share and suppliers. What you see, of course, the share of suppliers was a little bit delayed, and that was the main reason why the top line was weaker than the bottom line because your own value was more steady. This is, I think, what you will be referencing to. This is the case, right? This will be the case in Q2 as well, right? This will be the case in Q2 as well. It may change, as mentioned, in Q3 and Q4.
Yeah. Okay.
Yeah, because there might be a recovery, of course, we are optimistic people, so there might be a recovery from the supply chain at the end of the year, right? That's the idea. Yeah.
Okay, thanks. Concerning the overall, let's say, sector environment, we have seen that there are some issues on the financing side from commercial projects, especially these small satellites projects are under pressure here. How do you see the impact from this on your business? Do you expect any impact, or is it even clearer for you that your newcomers here on the competitive side are at the moment so much under pressure here? How do you see the situation?
Yeah, there are always good and bad things in changes. Of course, you see that in a time of crisis, established companies like ourselves have also certain advantages. On the other hand, in times of change, newcomers have certain advantages. We feel that we are in a good spot in between these things. We feel that, of course, we're working based on an established business with institutional clients, so our robust business model, in general, is being confirmed in the crisis. We're very happy that we have this solid business base and institutional clients. That makes us pretty robust. Of course, there might be some of the newcomers now being in strong difficulty. There might be a shakeout in that respect.
The conclusion is it's hard to predict. We feel comfortable at the positioning where we are, and we feel we're in a good middle spot to be on the innovative side. Some of the activities Lutz was just explaining.
Great. Thank you. Last we have on the liquidity position you mentioned. Just that I understand you correctly. You increased on one hand your liquid funds, while you also increased the short-term financial debt. Does this make sense? I assume that you pay more interest than you get because you get all the interest on your liquidity.
Yes, you're right. What we did is we made Before the end of March, so this is part of these numbers. We made a drawing of our loan because we were uncertain if the money came in on time, and it did come in. The bottom line is that we are, of course, we made a cautious approach in taking lines, using lines, and then it turned out that the inflow of money was better than expected. At the end of the day, there is no major impact on the interest fees we have to pay. It's a small impact for sure, but compared to last year, we expect no major impact on this front.
Okay, it's more a kind of timing issue with the uncertain temporary imbalance.
Yeah.
Okay. Thank you. That's it from my side. Thank you.
Jasko Terzic from Bankhaus Lampe. May we have your question, please?
My first one, sorry to bother you again on the guidance. I was wondering if you could give us an indication, what are the conditions that you either think the guidance could be reachable or that would make you think that the guidance is not reachable anymore? For example, if it's a test center that needs to be running latest until end of May, or is it something that gives us a little bit more grip on what are the conditions that the guidance could be reached or failed, in that respect?
I see two aspects. Where do I start? The first is really the timing of order intake. Some of the orders that we see in the pipeline and Lutz was talking about come in this year in a way that we really start them this year. That helps us a lot with regard to guidance. The uncertainty is that we do expect, or not really expect, but we are concerned that maybe some of the order intakes that are coming our way, and we hope we are winning, might come, but they might come in a bit delayed fashion, that they will not have an impact in our books this year. That would be just the major risk I see for 2020. Second risk is, of course, if the shutdown with regard to test centers and space ports is longer than we expect.
By the way, we do expect that that is ending soon. We know, not we feel. We know that French Guiana will have the next launch scheduled for mid-June. It's the Vega rocket, and one of the main satellites on it is one of our satellites from LuxSpace ESAIL. Satellite is in the French Guiana since a long time, and there is a schedule now that French Guiana opens in, I said, relaunch or opens launch in mid-June. If that takes place, we are not losing much on that side. The test center is another debate. We are having test centers in Holland that we are waiting for to finally be utilized again. Two things, order intake and external impacts on ongoing projects. Those are the two impacts I see.
The first one you mentioned is the more concerning one or the more crucial one.
Regarding orders. Okay. That's very helpful. Secondly, on the European Commission budget. I know in the last crisis, I think there was no real European Commission budget. Can you give us your thoughts on the key risk of those budget approval? I think as of yet, there hasn't been any approval so far.
No, you're right. Remember that by the end of last year, the Finnish presidency was working hard to get the budget done. Currently, it's obviously a big debate. The Croatian presidency now is also working on it. The expectation, this is just Marco talking, my expectation is to go into the German presidency, which starts on July 1st. I do not expect a deal on the budget now in the remaining six weeks of this presidency, but maybe I'm wrong. Who knows? My feeling is that we will see a budget deal in the fall. Where that budget comes out, obviously, is very much too much speculation. I think overall, I think when this crisis moves to the next phase in the mindset of people, there will be a lot of money being, let's say, organized and established for recovery.
How that will then be divided is obviously a political process. I am pretty optimistic that space will not do bad because we are a useful high-tech, innovative industry. The things we do with regard to helping mobility with Galileo, the things we are intending to do with regard to Copernicus to also fit in well with the overarching goal of the Green Deal. I do expect that Copernicus will be funded, but the exact numbers obviously are currently not there. I do expect that the space budget will be within the corridors of the debate that we had over the last presidency. It will be somewhere between the Finnish and the parliamentary proposals, I guess. Whatever it looks, I don't know.
No, I fully agree.
That's something that at the end comes with the lean. I mean, at the end of the day, our government will be very crucial to proposing deals.
Okay, thank you. The final one is pertaining to MT Aerospace and also the potential projects that are looming in India. If you can give us an update here and maybe also your thoughts on what do you expect, how severe a setback in demand might incur in MT Aerospace in Q2?
Yeah, I think MT Aerospace, obviously, business model is a factory, and it's very much driven. In the past, it was very much driven simply by the amount of Ariane ship sets. If there were, I don't know, five a year, it was like this. If there were six or seven or eight. Of course, the demand and the timing of Ariane 6 ship set is very important for MT Aerospace. This is something obviously completely independent from COVID-19. It's something hard to predict because the first launch of Ariane 6 is still pending. The moment that takes place, hopefully successfully, we have a better understanding how this ramp up will be there. Uncertainty is the big word, yeah. Again, not necessarily bad, but it's uncertain.
If everything goes well, the demand might be bigger than we all believe now, but we are in this period before the product Ariane 6 is introduced to the market, where uncertainty is unfortunately the big thing. Especially as MT is just a supplier, so we don't really have complete visibility on that. The good thing is with Ariane 6, I think that the technical development goes very well, and the good thing is that Europe has made a strong commitment to use Ariane 6 and to make Ariane 6 a success. This is something that we all rely on in the Ariane world, and that should safeguard MT to a certain extent. With regard to other businesses, you were mentioning India. Yes, since quite some time, we are preparing a JV there. I'm not completely aware of the last detail.
Maybe Lutz, you know better, but I know that there are lawyers working on setting up a JV and stuff like that. I think something's going on there. Lutz, you know better than me.
Not very much. What I can say is that the process with our Indian partners is going as planned. We don't have any major delays there. We don't see any indication that India would withdraw from its commitment. The need for launches went down and by this the business case of the JV would no longer fly or so. Actually up to now, we have not seen any impact which was significant enough that I would have heard about it.
Okay. Thank you. That was very helpful.
If you want to ask further questions, please press star one on your touchtone telephone.
Yeah, that seems not to be the case, right?
We have no further questions, Mr. Fuchs.
Yeah. Thank you very much. I'm looking to my clock, already 10 to 10:00 A.M. Thank you very much for your interest. Thank you for following OHB so closely, and I hope, even in uncertain times, our information, our documents, and also the answers we could give are sufficient for you to make your assessment. Overall, my conclusion is that space is in a positive spot. Our industry at large is doing well. You see that in the United States, you see that everywhere in the world. We are very happy to be in this part of the industry. Many other industries around us have really severe issues. The ones that we talked about, also in this call, are relatively manageable. It's said that there's still uncertainty, but as people that go far out into the universe, we are very much used to deal with uncertainty.
This is not a major issue for us. In that respect, I hope that OHB will deliver on this year. We're all very happy to stay in touch with the financial market. If there are any questions, please feel free to get in touch with Martina Lilienthal or myself or Lutz. We hope to hear you all again then on August 11th with our Q2 numbers, hopefully having a clearer visibility for 2020. Thank you very much and have a nice week. Thanks so much. Bye-bye.