Earnings Call: Q2 2019

Aug 15, 2019

Welcome to the K PlusS conference call regarding the publication of the half yearly financial report. H 119, hosted by Doctor Burkhart Law, CEO. For the duration of the call, you will be on listen only. However, at the end of the call, you will have the opportunity to ask questions. Please note on page 2 of the presentation you will find for the disclaimer. I'm now handing the call over to Doctor Berghardmore to begin. Please go ahead. Thank you. Good morning, ladies and gentlemen. Welcome to our Q2 conference call. Let's start right away on Slide 3 with the highlights of headquarter. Our EBITDA showed a nice improvement again, up by +14 percent in Q1, We accelerated the momentum and achieved an increase of 24% in the second quarter over last year. The unchanged favorable pricing environment, but also higher sales volumes in agriculture supported this success. The EBITDA of our operating unit Euro plus increased by 29% while our EBITDA in America came out below last your results, mainly on the basis of higher logistics and maintenance costs. Even more important is in the current transformation phase of our strategy that we again improved our cash flow. Compared to last year, our free cash flow increased by 150,000,000 to more than €100,000,000 issued to. With this, we report the best second quarter free cash flow since 2011. In the first half of twenty nineteen, we didn't cash in more than 1,000,000. And now please turn to Slide 4 to have a closer look at our deleveraging progress. With the end of June and calculated on the last 12 month base, our financial leverage came out at 4.4 times. Compared to 5.3 times at the end of 2018. Adjusted for last year's weather related outage days, This multiple, which has only been at 3.7x. We see excellent results after the first half of 2019. We are well on track to achieving our deleveraging target. Please have a look on slide 5 to see the development in the different customer segments. Mainly due to better pricing and higher volumes, revenues and EBITDA increased significantly. The EBITDA contribution from Arthune was clearly positive and up against last year. However, the latest Chinese placements to temporarily suspend MLP imports makes us a bit more cautious on the outlook for short term demand. Our customer segment industry is generating sound and relative stable margin Sales and EBITDA are fairly equal to spreads over the quarters, while sales were up slightly higher costs for freight and maintenance had a negative impact on the quarterly EBITDA. Both revenues and profit increased our Consumer business, a more favorable pricing environment, especially for water softening products, helped us to compensate for slightly lower sales volumes. Small suppliers that base on a seasonally low quarter, our de icing business and communities reported a negative EBITDA. However, based on the first half of this year, profitability is comparable with last year's achievements due to a jump start at the beginning of the year. Today's call the upcoming winter season started promising, especially in the Midwest and Canada. And now let's move to slide 6 and have a closer look at the wastewater situation. Ladies and gentlemen, I'm sure all of you remember the challenging weather condition in 2018. Due to the drought in Germany, we had to stop production at our Varra plants, which burdened our full year EBITDA by almost €110,000,000. But we made sure to be better prepared in the future. We've used our basement capacities for saving wastewater from 500,000 to 600,000 cubic meters. We increased our logistics capacity transporting the brine to old mine. And at the beginning of August, we received the approval from additional temporary underground storage facility up to 400 double cubic meters on time and as promised. Thanks to that, we feel comfortable to state that even in case of an extended drought, it's now a high probability to have no weather related expenses in 2019. On Slide 7, I would like to give you an update on the current situation, As already released, a week ago, we will enter into the next phase to improve the quality of our Bethune products. After we have installed grinder pumps in July, we will prepare and install cooling, seeding, and crushing equipment in September. Which will be fully up and running in fourth quarter. The longer maintenance periods will have an impact on our full year production which is now anticipated to be around 1,700,000 tons. The expected quality improvement should show up in 2019 and can be recognized by our customers in 2020. Now please turn to the next slide to talk about the full year guidance. First of all, we are narrowing our 2019 EBITDA guidance from range of $700,000,000 to $850,000,000 to now 730,000,000 to 1000000. This means a significant increase compared to 2018. And a small increase of our formerly guided midpoint by 1,000,000. To reflect current spot rates, we changed our euro dollar exchange rate assumption from $1.20 to $1.15. The positive effect from this should overcompensate the extended maintenance period in Bethune and our temporarily more cautious assessment due to the Chinese imports. Furthermore, we increased our free cash flow expectation. We now expect an adjusted free cash flow of at least 1,000,000 when reaching the midpoint of our EBITDA guidance. Please and gentlemen. This concludes my presentation and we are now happy to take your questions. Operator, please open the line for the questions and ask If you would like to ask more than one question, please submit one question at a time. Once answered, we will move on to your next question. You'll be advised when to ask your questions. The first question comes from the line of Andreas Heine from MainFirst. Please go ahead. Yeah. 2 questions. So I ask Monroe. At first, I'd like to understand a little bit more the unit cost progression in the angry contribution. I was expecting these 2, comes a little bit lower than the outcome was. Maybe you can elucidate, a little bit more on that. What has happened in the second quarter and then update on, what you should expect on the full year base. The last thing I know it was funded. It should be slightly above €200 per ton. Maybe you can provide and give an update. And there's one more, but I'll stop here with component? Yes. Hello, Andre. It's Sophie. The guidance is 6 So we said that we're gonna we're gonna see another this year, about 200. In the midterm, we wanna go below the 200. I wouldn't overevaluate the effects in the second quarter. What you see here is based on a on a sales volume. Number, we have produced more. So we have, on a potash on production based number, the number looks much better. What we what we wanna do in future is we don't have the number yet, but we wanna we wanna give you a different number in future to really reflect what the production cost might have not affected by freight, etcetera, etcetera. So we are working on that, but I can confirm. I can confirm that we're going up below 200 to 10 somewhat for this year. So everyone has nothing specific in in the second quarter. I'll just explain. Okay. Good. Question is on cash flow. Indeed, very pleasing outcome. Looking into the cash flow statement in detail, the progress was to a current high degree on this receivables and other, short term assets. That's very good net. The network engagement, did improve that much, but how sustainable is it if you then look into 2020? Hang up the feeling that there is obviously progress in your pricing performance, but most of the free cash increase is more on the net working capital side rather than driven by the earnings? Yeah. I would say, I mean, it's early as well. So I mean, we have a I'm looking at the half year year over year. So what I can confirm is there are no extra ordinaries in this number. We had an earnings improvement. Also, the 2 we contributed to this. When you look at the receivable price, I mean, what we are now realizing are the cash flows from the Good Potash business in the fourth quarter 2018, the strong American Store business in the first quarter of 2019. These numbers come in. And beside of that, yeah, a couple of things. I mean, we look, we we talk about a more active working capital management. We look better at receivables right now where we're showing you the actions between our finance department and our sales department. To see how we can realize our, our receivables. We have we also look better into into what is coming in the rest of the month. So we, believe we have a more accurate forecast. That's why we get to take We wanna realize at least 100,000,000 this year. On the paper side as well, we don't see that in the numbers that much, there's a chunk of from procurement on, managing price, cash discount payment terms. And we always told you, we wanna manage it, we wanna manage it more efficiently and better. We have now taken this step down. I wouldn't expect that we do such a step every year, but we do, of course, our uploads that we cannot be cheaper. Level. Yes. So maybe repeating what is in my words. So you say, what do you see in the networking capital trend in this year is more normal than what we have seen last year. So then if you go to 2020, and then there should not be a big distortion, from that side. Yeah. That's that's a good summary. The next question comes from the line of Christian Faitz from Kepler Cheuvreux. Please go ahead. And it looks like I have one question, and then I'll go back in line. Can you share with us your production plans for Bethune in 2020 already, when basically all the measures should be in place, which you are taking now? Thank you. First of all, we have to deliver 2019, and, we feel quite fine with the 1,700,000 ton. And we have achieved expecting half of that in the first half. And, we should do more in the second half, but Yeah. So maintenance break that we have elaborated on. That's why we see, the same volume in the second half of this year. We will see a higher volume in 2020, but it's too early to get a precise number because that is mostly driven now out of secondary mining. And here, we are still learning and have to look into the outcome of how it's run secondary mining harvesting in this year. And then by the end of the year, we will be able to give you a more precise outlook. For next year, but even, of course, there will be a step up. You're welcome. The next question comes from the line of Thomas Swoboda from Societe Generale. Please go ahead. Yes, good morning, gentlemen. I actually do have 3 questions. I will take them 1 by 1. First question is on your cautiousness regarding China. I think this is under 10 or However, my my question is you're cautious on 2019. It isn't it isn't just a reason to be cautious of 2020 as well. How do you think this will pan out, please? I think this is a temporary situation. And I remember that some of my sales colleagues are already very optimistic for 2020, you know, that they they are disclosing their numbers before. That's why I am saying that. And I'm in line with them because we have seen that situation earlier. I think the last time it was 4 years ago, when we get too high volumes in in, in China, for several reasons. The top of imports for 2 or 3, 6 months, 4 months. And we expect to see the same this time, the market is prepared for that. And it will have an impact on this year. That's why we are the group cautious for this year. It might have an impact on the new flight. I'm not sure it's, difficult to say what that means that will have an impact on 2020. But I'm not, in in in full time, I'm optimistic for any changes. And, even with this, pickup in China. We expect growth by demand, on the level of last year, last year was a good year. So we shouldn't forget that we are discussing on a very high level. Howie, if my I may follow-up. Are we talking of, your expectation on the contract price to be down year over year in 2020. Is is this the conclusion? That would be a guessing. And at the beginning of this year, you should expect that there might be pressure on the price negotiation then, in April, May, we have seen some, positive tenders in this area. Something's about if price could even go up. Now this import top is, of course, a negative, a negative circumstance for these negotiations, but there's no change. I'm not expecting to have any contract to in China. The situation is different in India here. We should see a new contract in the next couple of weeks. That's fair enough. My second question is for the CFO, probably. Regarding your guidance on financial results, if I if I looked at the run rate in H1 and what you've guide for the full year, that would mean that financial expenses were worsened very significantly in H2. What is the driver for this, please? The guidance we have given is for 100 20, right? And, we, I mean, we always have we are, like you have have also been in the in the second quarter. We have, a positive contribution from the, ethics, which comes in as you have to do with in house financing, and we do see you know, benefits. So I wouldn't exclude frankly that this will also continue in the second half of the year. So maybe the 120 it may be too high. So it's quite why I was but when I took the time for me to answer what to realize that, so I think we are due to negative on the guidance for the question. Well. Thank you. The first question is on the statement you made Mr. Lourde in the Fats recently. If I understand correctly, you said the target to lower the sodium chloride level in Vera River by 2021, which was agreed a while ago, it's not feasible. So my question is, what does it mean for Q And S, especially production wise and financially? If it is a cost to that attached to that, if you don't manage to lower the you saw the concentration, as agreed? No, it's embedded in the in long story, but I try to keep it as short as possible here in this call. As you know, the Deepgram indexing will end by the end of 2021. And, by chance, today, the the environmental minister conference, of Sarah and Lisa, have a meeting today and, here in Casa, by the way, and they will decide on what is the the measure after 2021 to discharge our production water production water. So far, we have discussed it for the pipeline, but I don't expect that the pipeline will be the, the, measure which they decide on, by the way, we would have talked about 300,000,000 of additional CapEx on this one. The decision will most probably be in, discharging the waters and not temporarily as we do it now, but continuously in the underground in the old mines in the area, which means it's It's a best solution for the environment and it's a best solution economically. We don't have to transport the profits, etcetera. And we I have, clarified that we are fine is that we confirm the targets target for 2008 when it comes to a chloride, hunting in the barrel. But I also open to the discussion. We have to talk about, how do we get there until 2028. And, this is everything I am I mentioned this interview that I want to have an open discussion, with the current, targets and is going to be able to meet them in 2022 already. And, it's not more and not yet this is part of his interview. And it does not necessarily and directly transfer in in operation costs or whatever you would like to read out of this. Next question comes from the line of Tom Wrigglesworth from Citi. Please go ahead. Morning, gentlemen. Well, I'll take my questions in order. First question is if, you had the quality that you aim to achieve at Bethune today, how much higher would you think the, realized price would be from Bethune? Are we talking like 5 per ton or is it more like a 20 plus or a ton improvement from as the quality rises? No, the price is not the issue. We are actually the market prices with our to improve products. Of course, from time to time, we are contemplating additional logistics costs to our customers. The problem is the production volume. If we would have the targeted quality already, we might have up 200,000 points more in 2019. And that's what we are aiming for. Okay. Thank you. And second question on the German assets. Could you just refresh us on the, roof stability at Neuhoff, when you're expecting that to, it should remind me when that's going to return to normal together with K-twenty, which I think was coming through a low grade zone, transition zone. If you can give us an update on when you expect those 2 assets to kind of return to normal levels production? Let's start with the with the bright stuff. I wish with this slightly weak, due to all content, we we will still work in this area until the end of this year. And and, we can expect them to know that because we have done some geological research, we can then expect higher collected or content again for 2020. And with NOLOOF, we have a solution. We have temporarily given up this area where we had the roof stability problems and working in another area. The setup is done. And by August, we are back to a normal production, almost normal production models, but we hope that we can go back maybe with the new technology, in the old area of the hospital. It has nice capable content. Okay. Thank you very much. The next question comes from the line of Patrick Rafide from UBS. Please go ahead. Thank you. I have 3 quick questions, please. The first one is on agriculture where volumes were up, but specialty fertilizer volume were down. Is is that related to signal, or was there any other effects we we should know about? Yes. It's related to signal. Okay. Good. That's easy. And then on cash flow and your cash taxes, in the first half of the year and also in q 2, lower than the the P and L tax. It's that just the temporary issue as as happens off and we should expect an increase in cash taxes in the second half? Or is there a one off that we should be aware about of Normally, 2nd half cash flow. Sorry. I'll start again. Normally, 2nd half cash taxes are higher than in the first half. But I would expect a cash tax number, which is well below last year, which was about $100,000,000 because we had last year. It's all that was replaced in the first half, So I would expect a number lower than last year, but it went up in the second half. Okay. Thanks. And, the third one is on, on the commercial segment, I understand the mix effect that impacted earnings. You also mentioned higher maintenance and logistics costs, Is that something you can quantify? Is that something that will continue in the second half? Because the the you sounded quite upbeat about the pricing outlook, into the upcoming season. So you think we we can still see higher EBITDA here versus last year, or are these costs just too high and we shall see a flat or slightly lower EBITDA for the year. So, let me talk about the maintenance cost they occur in Q2 and Q3. And as you know, these are more or less a little bit weaker, seasonally weaker quarters. So they have an impact, but that is done then in Q4. And we expect in total an increase in EBITDA. Okay. Thank you very clear on all these questions. Thanks a lot. The next question comes from the line of Michael Schafer from Palmerzbank. Please go ahead. Yes. Good morning, gentlemen. And three questions from my side as well. First one, starting with communities, I EDI Singh. So you mentioned, as you have seen a rather promising negotiation period over the past couple of weeks. So I wonder whether you can quantify or help us a bit with what we should expect, basically, in terms of pricing, one of your competitors indicated something like 8% increase in de icing. ASPs heading into the new season? And maybe related to this one, your competitors have talked about a our logistics costs due to flooding in his Midwest area. So anything you are experiencing as well as a headwind from this one would be my first question. Yeah. Thank you. When we talk about, the outcome of the bidding processes, I think we need to talk about the different, areas because the starting point is completely different. And let's start with the strongest area where we had 2 beautiful winters in a row in the Midwest. We are really seeing and are not comparing season to season We have already seen double digit price increases, which is very promising when the volume comes in the next season, we will be very happy about this. The Canada is slightly up. Only a slower single digit number. We were positively surprised, US East Coast. The the season was not that good, but the prices are still stable. And even in Europe, the prices apply here. So in total, it's a good starting point for the next season. And, to the freight cost, it is true. It's definitely North America after we had higher freight costs in, in last year already. For different reasons. This year, it's a it's a river system. It's a it's a problem which we use heavily for our salt, transportation. That has been impacted as well negative impact or not. I'm calling for Adelero, what was the decision basically in terms of extra logistics costs you are facing? For the full year or to lower double digit number. And half of it is already in our numbers. Okay. 2nd question would be on accounting soon and what you've done there in terms of accelerating and taking extended 1 week maintenance period on top of what you already planned. So what does this do to your mix effect basically heading into 2020 also with with the other measures you mentioned in the fourth quarter. So how should we think about granular, like you said, into 2020 in comparison to 2019? Nassoon. That's a good question. And at the same time, it's difficult to answer the cost mix. It's not only driven by, production capabilities, and we believe we have, from next year on all capabilities to do render the favor of the mix, but also driven by market conditions. For example, we have now actually can deliver into China. We have increased our standard volume to deliver as much standard in the China as possible, and it will, have an impact on the full year standard dynamics. The next year could look completely different, I would say, too early, to give you a number for, for the 2020. Product mix. Okay. So leave it there. The 3rd question is, as a follow-up on your working capital outlook heading into the second half, So last year, typically, you, obviously, you reported a network shrinking of the brain in the second half. So last year, we had something, like, 230,000,000,000 outflows in the second half 'eighteen. To build up of production and majority of the season in Northern Hemisphere. So I wonder how should we think about, the working capital flows in the second half twenty nineteen that's given that you're still ramping up production. So any kind of indication what you have baked in there after the very strong contribution in the first half? Yes, I can only repeat that. We do see of course, an increase in working capital is because of the, the the limited CVV. So we're setting up an increase for that. We are building up inventories on the fresh side. So we would expect an increase from both of that. On the other hand, we we we still are keen to optimize where we can. And I don't want to give you a very concrete number what we are expecting. We also see a ramp up in the CapEx. So when we think about cash flow, don't forget that our CapEx is, tech and loaded. And, that's what I can give you for now. The next question comes from the line of Markus Mayer from BARDA Helvea. Please go ahead. Good morning, gentlemen. Two questions from my side. Firstly, again, coming back to this, logistic course If you would strip out the, flooding effect on the logistic cost. So, yes, would you already see that the inflationary effect that's coming down for that were highlighted by some other companies, for you for the rest of the first question. It's rather a flight without this extra ordinary shift. Okay. Okay. And the second question is then on currencies. If you would like the current, wasting the run rate going into 2020. Could you remind us what would be the positive effect on, EBITDA, from this currency? So we are still in 2019 market. On the full year, we have now in our forecast based in 115 instead of 120 through that. And, maybe it's giving us a dollar, close to one cent. We wouldn't expect it significant competition from FPS. We know that's, the most of our, effects have And, because of the higher, FX rates last year at this time, we hedged at higher rates So it's really it's not a not a another positive effect really to expect if the dollar, comes to one time, for example. Okay. Perfect. Next question comes from the line of David Simmons from JP Morgan. Please go ahead. So firstly, if you come back to the electricity volumes in agriculture, you mentioned that 6 and so had an effect, but the Q2 volumes were down more than you might expect. Versus the Q1 volumes. So just on that, were there any other smaller effects that were in that, or was there maybe some inventory left over in the first quarter? When you look into the single quarter, and many effects. First of all, for years, we have been sitting on very low inventories. And, as often already indicated, we have produced more in the second quarter than we have sold. But it's partially part of our strategy to slightly increase our inventories. And of course, if a ship, hits the arbor on the 30th, 30th June or on the 1st July, that it's not much different for us in total, but it differs, of course, the view in in Q2 and in Q3. And it happened with 2 shifts, by the way, in this quarter. So, definitely was not, was not marketed. Okay. Thank you. Just on the plans post-twenty 20 for the Vero River, secondly, obviously options are being discussed. Can you get maybe a range of the potential CapEx and the OpEx impacts from from whatever the solution is. I mean, are you expecting an increase in text versus the Deepgram injection solution? And will there be much CapEx associated with it, if you did the base installed, if you can't help? First of all, we're talking about the time after 2021. So the 1st year with the new solution is 2022. And we start with the small solution, the volumes that we so far have injected. The same amount run out of the KAF into the old mine. Why it is because the KAF selling waters have to magnesium chloride content that we need to avoid any thinking of the of the surface So therefore, we do not have to spend a lot of CapEx. If we then later on, and then we are talking about the late twenties, increase, the saline water that we want to discharge in the old mining areas, etcetera. Their might occur some additional CapEx, but it's too early to make some numbers. Sure. Okay. That makes sense. And then, lastly for me, this might be one that you you can't answer particularly specifically, but, you mentioned that there may be some price impact in China by the the delay of imports. So if you if you're seeing lower prices in China, less of a working capital tailwind last year, next year, I mean, potentially slightly higher CapEx next year, just given that you're below your guidance so far this year. Do you think you can increase your free cash flow year on year in 2020. And are there I mean, I'm not really expecting us, but are there bridge items that you that I've missed out you expect the boost to be captured next year? Thanks. Yes. 1st of all, we have not indicated that the CapEx goes up in 2020. So, we are expecting a level of CapEx level on on the the level that we will see this year as well. I can see if if there might be a lower policy in China that is only one of many initiatives, And don't forget, we will have a higher volume available. And especially volume out Bethune from Bethune secondary mining with very low cost base. And it's really to increase. It's a CEO where we want to deliver a good portion of our synergies and what's the target of 150 in 2020. 1, so there will be a good portion and an in positive impact So in total, without guiding in 2020 now, then we got a reason to believe in a further positive free cash flow. Installment. The next question comes from the line of Chris Ryan from Bank of America. Please go ahead. Hi. Yes. Good morning. Thank you for taking my questions. Just to try to Alvin field working capital 1 more. On your receivables outstanding, is there any target that you have for, like a case suitable outstanding that you, that you look to get to? Friday neither neither on the DSO nor the DPO side, we look into hard targets. Of course, we measure that internally. Let me answer it on the on the on the pay book type. For example, if if we will give consumers their targets to go down to a BPO number of X, we would ignore that, the best lever to improve this number is to negotiate the best price. It's happy to go for cash discount and then, to send it out to think about how can we negotiate payment terms. And So when we talk about working capital management, we've been measuring those KPIs, and we have we have to know the identified hard targets. And, yeah, that's the way that's the way we need to tell you. Sorry. I just had two questions on Salt, on customer inventories, especially in the US, are there any hard numbers that you're able to give, and how they pair currently versus last year? No, so far we are not planning to give inventories by customer segments. Got it. And then, in the deicing salt business, How much of your volumes are shipped versus, ground transportation? Oh, sorry. How much are it shipped via the river versus ground transportation? I'm sorry. I cannot give you the number by heart, but but we will make sure that the relation is able to answer that question on the phone later on. Sure. And if I could just follow-up quickly on that. On the ground transportation, how have you seen, cough throughout the year and what's the exit trajectory from, from Q2? We will dig into that and see what we have later. We have a further question from the line of Andreas Heine from MainFirst. Please go ahead. You know, maybe coming to the production Americas. If I continue, the agency sent at this flat. You know, the indications have been on the price side. Looks a little bit better. As far as I know, the Americas basically reflects to a to a high degree has been, the icing business in Americas. Of course, there are other things as well, but it didn't move that much from 1 year to the year. Could you elucidate and put you across the for America for this year based, what you said, about the pricing and the icing in this please. Yeah. Of course, there is a good reason to believe that with the higher prices, we have a nice contribution, but we know that the bigger part of the season is the first quarter. So we only expect some weather in December Of course, if we see whether in November, we take it, but that is not part of our forecast. And so the impact is higher in the first quarter of 2020. On the other hand, we have already elaborated on, a extraordinary cost trade some maintenance and normal inflation. That's why we see the total outcome for this year as guided. We have a further question from the line of Christian Faitz from Kepler Cheuvreux. Please go ahead. Yes, sir. Thanks. Just quickly on, on, can you tell us what your salespeople are telling you about, demand, in, in the, going into the season there? Yeah. Thanks for that question, because here we talk about the market which runs from one record to the other. We have seen so much improvement in demand from Brazil, and we will see a year with higher demand again this year. The way they might look like they are, the winners of the tariff price, which are ongoing between U. S. And China. And that's why everybody who's delivering into Brazil is very happy about the situation. What we also see is, of course, as you know, we are not present with standard product in the US. U. S. Was very weak due to the extraordinary weather situation. And of course, some volumes which usually run into the U. S. Markets were relocated into Brazil. That's why we have seen some pressure on pricing, but that is, you're talking about $5.10 Nothing which, really, strikes us about the demand. The underlying demand is strong, and we are seeing that for the future We have a further question from the line of David Simmons from JP Morgan. Please go ahead. Sorry, just following up on that last question. Do you have any sense of, your share in the Brazilian market versus some of the some of the North American players, something in nitrogen. And the reason I ask is you've obviously maintained your outlook for volumes for this year, for the for the full market, whereas between that decrease their outlook for volume. So just curious on what those sort of difference you're seeing there is? Yes, we are growing with the market in Brazil. That means we are adjusting our share. And so we wouldn't have been able to deliver from Germany, more volumes, which is available. So as you know, with with Brazil is a g market for our granular products. And as we ramp up the the we grow with the market and keep our market share. Currently most. Thank you. This was the last question for today, so I will now hand back to doctor. Yeah. Thank you, everybody, for joining us today in the call. We were very happy to report these good numbers, especially free cash flow, and we told you last year already that in 2019 we'll be the year with a positive free cash flow and with the new guidance more than 100,000,000 we even will reduce in total our net financial debt slightly. And that will now be on the road and see the one of the one or the other of you, and we are happy to discuss further and, thank you for your time and, all the best Bye bye. Thank you. This will conclude today's conference. Thank you for your participation, and have a pleasant day.