Hey, ladies and gentlemen. I am Erkka Salonen from Finnair IR, and it's my pleasure to welcome you all to this Finnair fourth quarter and full year 2019 earnings call. I have here with me Finnair CEO, Mr. Topi Manner, as well as Mr. Mika Stirkkinen, Finnair's CFO, for the Q&A session. Now I will turn this call over to Topi Manner. Please, Topi.
Thank you, Erkka, good day to you all. Thank you for joining us on this call. We are posting today a strong Q4 result and of course, with that a full year result. Before going into that one, the hot topic of course currently is the coronavirus, I plan to start with a quick update on the corona situation and how we are seeing that, then after that, going into Q4 financials. I think that when speaking about coronavirus, to start with, we should remember that this is especially a human health crisis. It currently seems to be concerning China and especially the region of Hubei and the city of Wuhan. We in Finnair, we stand ready to all our customers, especially the Chinese customers, our employees in China, also our partners in China.
We have been doing, for example, by sending medical supplies to our partners because as you know, there is a shortage of medical supplies such as facial masks and hand sanitizers and things like that. We, as many other airlines across the world, suspended our flights to mainland China last week, we carried on until yesterday in order to bring our Chinese customers home to China from Europe after Chinese New Year, also bringing our European customers from China back to home. That we have been doing during the past couple of days until yesterday, that has been well-received by our customers as well as employees.
In terms of cancellation, that is amounting to approximately 200 flights up until end of February when it concerns our Beijing and Shanghai routes, then up until end of March when it comes to Guangzhou, Beijing Daxing, and Nanjing routes. As we have been stating earlier, the direct financial impact of this situation until end of March, also assuming that China flights would remain to be suspended until end of March, is relatively limited for us. We are reiterating that comment today, this is simply because the weeks after Chinese New Year are also in a typical situation the slowest weeks of the year, they are also the weakest in terms of profitability. The way the situation will unfold from here and develop from here remains to be seen.
The visibility is low and it can swing basically either way, and that is something that we are taking into consideration in our guidance for this year. What is clear, however, is that eventually this will pass. If we look at the experiences from SARS and similar viruses in the past, I think that the conclusion is clear, and the conclusion is that the situation is of temporary nature, and when the recovery starts, then the recovery will also be relatively fast in terms of global aviation. In situations like this, we at Finnair, we manage for the long term, and we stick to our strategy. It is about sustainable, profitable growth for us.
We stick to our initiatives and to our targets related to our strategy, and we carry on focusing on those initiatives, implementing those initiatives, including our planned investments. With respect to China, that means that we remain committed to China over the long term. In our strategy, it has an important role, and China is our third-biggest market after our home market of Finland and Japan. Some 9% of our capacity is directed to mainland China routes. We want to keep our slots in China, and we want to maintain our long-term presence in China. If the situation prolongs, and that we really do not know at this point of time, I don't think that that assessment can be made as of now. We will make some smaller tweaks, tactical adjustments, if you will, to our summer season schedule with individual flight frequencies and so forth.
All of that will be done in the context of maintaining our longer-term presence to China. The tactical measures that we have been taking, there would be, of course, many smaller measures that we are doing. One great example would be that we were supposed to take delivery of one Airbus A350 in April, and now we have been postponing that delivery for two months in collaboration with Airbus. In terms of the outlook and guidance, what we are stating in terms of guidance is that we experienced a good business momentum, strong business momentum, especially in our European traffic during Q4, also in January, and we are currently seeing that strong momentum continuing in Europe. We are reiterating, as stated in the comment that the direct financial impact of coronavirus during Q1 is relatively limited.
On the back of mainland China route suspension, assuming that that will continue until end of March, and on the back of postponing the Airbus A350 delivery, we estimate that our capacity during this year will increase approximately 4%, falling to the midpoint of the range that we communicated in our Capital Markets Day. Basically, the range of growth being between 3% and 5% during the next strategy period up until 2025. Due to the decreased visibility of the coronavirus, we will come back to more specified guidance in connection to our Q1 report in April. What can be stated about current sales and the current flow of bookings, we are of course following that very closely on an hourly basis. As I said, we see the strong momentum continuing in the European traffic.
When it comes to sales and flow of bookings in Asian markets outside of mainland China, markets like Japan, South Korea, Asia -Pacific, Thailand, and Singapore, India, we see the bookings coming in in a usual fashion. So that was the quick update on corona, and we can definitely come back if you have further questions. Moving into Q4, as I said it, the overall headline being that 2019 was a volatile year for us, but it ended with a strong quarter. You know the volatility and the reasons for that one, U.S.-China trade war impacting especially our cargo business. Brexit definitely was a theme during the year. The MAX 8 situation impacting the capacity on global aviation. We also went through some industrial action by unions, experienced one-day support strike during Q4. There was airspace restrictions.
We had the unrest in Hong Kong and so forth. 2019 will also be remembered of the discussion related to climate change and that topping the political agenda and sustainability to take center stage in many ways in the discussions related to aviation. In the midst of all of this, we continued our strong growth. Our capacity grew with 11%, more than that. With that, of the medium size and bigger airlines in Europe, we were one of the fastest-growing. We carried a record number of passengers, 14.7 million passengers. Due to growth, our net number of employees increased with more than 1,000. Looking into the full-year key figures, revenue increasing more than 9%, close to double digits. Comparable operating results landed at EUR 163 million. That is to be compared with EUR 218 million the previous year.
Majority of the difference is attributed to jet fuel price increase, including the hedges. Customer satisfaction developed favorably. Our Net Promoter Score for the full year was 38, and that is comparing well with our peer group of airlines. So good development on that one, especially towards the end of the year. Passenger volume growing double digits. Looking into Q4 isolated, Q4 was the strongest quarter on relative terms for the year for us. Revenue increased with more than 13%. We carried 3.5 million passengers, more than 100 flights to Asia on a weekly basis, opening new routes like Beijing Daxing and Sapporo in Japan, which has been very well-received by our customers. Our original plan was to introduce that as a seasonal winter route, but now we are right away extending that to be a full-year route also covering the summer.
In cargo business, the operating environment remains to be challenging, but on relative terms, under these circumstances, we are doing well on that one as we are keeping and increasing our market share. In terms of travel business, Aurinkomatkat was again Finland's largest tour operator and increasing its market share. So those would be some of the highlights related to Q4. If we look at Q4 in terms of the numbers, the operating results landed at EUR 31 million. The comparable number last year was EUR 26.5 million. That includes a one-time income booking of EUR 11 million from a so-called pilot long-term incentive cancellation. What would need to be remembered is that, well, obviously, the fuel price development is impacting the comparison as per usual. In Q4, the fuel price, including hedges, increased with EUR 12 million in comparison to previous year.
The impact of the support strikes, the one-day support strikes in Finland amounted to some millions of euros, let's say EUR 3 million-EUR 4 million. That is also something that should be taken into consideration when interpreting the results. Updated customer satisfaction improved towards the end of the year. Again, the NPS score was 41 for Q4. Our market shares are improving in the Asian traffic, edging upwards a bit. In the European traffic to and from Helsinki, our market share is strong, and it has been strengthening during the past quarters. Now we are back on the levels of 2016, 2017, the years before the LCC started to increase capacity in Helsinki. That is something that we are very happy about.
When we look at the passenger revenue and the various revenue categories, it is really the passenger revenue that is driving the growth with 16%, and especially the strength of the European traffic is visible here. Also, North American routes performed well. Ancillary improved with close to 14%, of course, in line with the increasing number of passengers. Also the ancillary revenue per passenger grew to EUR 12.7, and that we took a clear step forward on that one. If we look at the revenue development more closely, a combination of improving load factors and clearly improving unit revenue across our traffic categories, that is the biggest driving factor behind the strong results. European traffic, as stated, was quite bright especially. We increased our capacity with 7% and the unit revenue RASK improved with 10%.
In North America, we increased our capacity with one-third, and unit revenue increased with more than 4%. As you would know, with this kind of capacity increase, the unit revenue increase is not that typical. We are very happy about that development. In Asia traffic, our capacity increased with 11%, and unit revenue also edging upwards a bit. This is also something that we are happy about because we were a little bit weighed down by the unrest in Hong Kong. That at the very end of the day, actually impacted our loads and the revenue less than we anticipated during Q4. All in all, unit revenue developing well across the board and across the traffic categories, most notably in Europe. That has been visible in the sort of geographical take on the revenue.
Developing well across the board, but most of it coming from Europe this time around. When we come into costs, in our strategy, we have clearly stated that we aim to have constantly and gradually decreasing unit cost, excluding fuel, excluding the currency fluctuations. During Q4, our unit cost measured this way increased 1.3%. This is something where we clearly have a job to be done going forward, and that requires continued relentless focus on costs. By means of the initiatives that we have already started out to do, focusing on on-time performance, not only optimizing and improving the arrival punctuality but also enabling us to optimize our costs, putting a lot of focus to weight and fuel efficiency, automatization, and digitalization of our purchases, and general being very cost-conscious, stretching the penny across our organization. Fuel cost, I think that we covered largely already.
The hedging policy remains as you see on the slide. When it comes to Q4, the impact of the fuel price was EUR 12 million, as I stated a moment ago. In times like this with coronavirus, having a strong cash position and healthy balance sheet certainly helps a lot and enables us to manage for the long term. Together with the strong momentum in European traffic, the booking flow from markets outside mainland China in Asia, the balance sheet provides us firm ground to stand on. During Q4, our equity ratio increased to 25%. Gearing went down to 65%. This will be enabling us to continue with our investments. We estimate that our current investments for this year will be in the ballpark of EUR 432 million. Moving to customers. The customer satisfaction improving clearly towards the end of the year.
41 is a number that we are happy with. It has been continuing upwards in January. We have been bringing a lot of new things to our customers. One example would be new lounges at the Helsinki airport, a new business lounge and the new platinum wing, and these are genuinely beautiful lounges. We have been receiving a lot of good feedback from our customers, especially the business travelers and the frequent travelers. We have been also investing into customer communications and disruption management. That came in handy when we had the one-day support strike and had something like 40,000 passengers on that day. We were able to cope with that situation in a good fashion and also minimize the profitability impact during successful revenue capture. We have been investing quite a bit to digital services during the year.
New features and functionalities to our mobile app. The Net Promoter Score is 68. We also have been successfully rolling out a new dotcom site, finnair.com, in 35 markets with 16 languages. It has been quite a significant undertaking, this is an important enabler in our quest to be a modern premium airline doing more direct sales, being able to offer more choice to our customers, being able to personalize the offering for our customers. In times like this, we stay focused on the long term. We continue in accordance with our strategy. We want to grow in line with the market growth, we believe that the 4% capacity increase will be doing just that. We will strengthen our offer. We will work with efficiency, aiming for constantly gradually decreasing costs. We remain committed to our Asia strategy, including mainland China.
We also have made a significant commitment related to sustainability, going for long-term carbon neutrality, putting in place a roadmap for long-term carbon neutrality, that sustainability plan we will be making public separately in some weeks. Coming back to the outlook and guidance, I think that I covered already the main points. What should be noted is that we are proposing a dividend of EUR 0.20 per share, that equals a dividend payout ratio of some 40%. This is a signal, the signal being that we believe in our business, we believe in the profitability prospect of our business, that is why we are doing the 40% payout instead of minimum payout of 1/3 of our dividend policy. That pretty much covers the Q4, with that, the whole full year. Thank you.
Thank you, Topi. Are there any questions?
Can I open up the session for Q&A, sir?
Yes. Yes, please.
Okay. Thank you. Participants, if you would like to ask a question, please signal by pressing star one on your telephone keypad. If you're using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. Again, press star one to ask a question. We'll pause for just a moment to allow everyone an opportunity to signal for questions. We will now take our first question from Jaakko Tyrväinen from SEB.
Hi, it's Jaakko from SEB. Could you elaborate a bit more on the demand outlook in Asia, especially the routes except the mainland China. How are the bookings developing currently? If I understood correctly, you're not seeing any signs of softening due to coronavirus or the Hong Kong riots.
Yes. If we decompose that a bit, thank you for a very good question, relevant question. I said it, we see the strong business momentum in Europe continuing. You have potentially seen our January traffic figures, the demand continues to be strong in January. I said it, we are following bookings, the flow of incoming bookings, on an hourly basis. Just as of now, the outlook is Europe remains to be strong. Markets outside mainland China in Asia are developing normally. In Hong Kong, we of course, have the situation that we have been weighed down by the unrest during the Q4. There's no positive change in Hong Kong related to that. At present, the situation today is that we see the bookings coming in normally and the strong momentum in Europe continuing.
Okay. Excellent. Thank you. In case you might see a softening demand on elsewhere than Mainland China, could you temporarily adjust your capacity, or are you obligated to operate those routes?
Outside mainland China or-
Outside mainland. For example, Hong Kong or some Japanese routes.
In the case of Hong Kong, the authorities in Hong Kong, including the Airport of Hong Kong, they have already listed their slot criteria. In Hong Kong, if that situation would be materializing, we would be able to adjust our capacity when it comes to the slot criteria. That is specific situation in Hong Kong. Then typically, with any given slot out there with the use it or lose it type of principles. The use it criteria is not 100%, it's typically something like 80%. Meaning that we could do some demand supply management with individual frequencies if the demand picture would deteriorate. We are not seeing that now.
Okay. Excellent. Thank you. In terms of your capacity, in January, your European capacity was still quite heavily up. When should we expect this to flatten out given your overall capacity growth of 12%?
This is Mika Stirkkinen. Originally, for the year, the plan was to grow during Q1 quite strongly, double-digit growth, then the capacity growth is muted during the last three quarters of the year. The same applies to Europe as well. That's the bit for outlook.
Okay. My last question relates to the numbers and your depreciation and leasing costs were up quite a bit quarter-on-quarter. Were there some one-offs or should we expect this to be the new run rates?
This is basically the new run rate.
Okay. Thank you. That's all from my side. Thanks.
Thanks so much. Can we take our next question?
Yeah. We have an online question, I guess from Craig Clement. What percentage of your capacity is in mainland China? That figure is approximately 9% of the capacity would be on our mainland China routes.
Can we take the next question, sir? We take the next question from Pasi Väisänen from Nordea Bank.
Great. Thanks. This is Pasi from Nordea. Related to this very good momentum we have actually seen in Europe. Where is the positive mood actually coming from? Is it the local business traveling or the leisure traveling, or is it related to transfer passengers or probably coming from the ticket pricing? If so, from which category it's coming from? Secondly, if there will be some kind of bit softer demand for Asia routes in the summer, is there still a kind of room in Europe to put more capacity to your routes or to your destinations? Also, when looking at the kind of the effect you actually highlighted from the coronavirus for the first quarter, what's actually the limited impact in terms of euro you are referring at?
Are we speaking about EUR 3 million, EUR 4 million, EUR 5 million or EUR 10 million-EUR 15 million approximately when looking at the kind of the first period you guided? We can start with those ones. Thanks.
Mika Stirkkinen here. M aybe I answer the first question. The European traffic category performed really strongly across the board. It's not coming from a single route or single source. When one looks at the report, it's really kind of untypical to see so many routes with increased RASK. It's not only coming from the routes where we experienced less capacity by us or by our competitors. It's really coming from almost every route in Europe. What's notable there is that it's not coming from the Asian transfers. It's coming from travel within Europe, and within Europe meaning both point to point between Helsinki and Europe, and then via Helsinki to, for instance, Lapland, which was strong again. Another notable is that the domestic traffic category performed strongly. It's really across the board, the strong performance what we see.
One more comment is that we introduced a new revenue management system some 1.5 years ago, and the team there has really excelled with the new system, and it really shows the strength. We had the question on the summer capacity, that's number two?
Yeah, please.
Related to the capacity, as I mentioned earlier, when we consider the potential capacity reallocations for the case that the coronavirus situation will be prolonged. In making that assessment, our starting point is that, I said we are committed to China strategy over the long run. We want to maintain our slots there. That we will be doing. If there will be tactical adjustments that will be done for the summer, of course, there are some long-haul routes where we could add frequencies.
There would be strong European routes where we could also consider this kind of a possibility. We have some routes like London, where we have applied for the capacity currently. Our sort of number of passengers for London, Helsinki have been increasing significantly, something like 20% on annual phases. For example, for next summer to London, we have already decided to include eight frequencies per day. I guess if you ask that whether there would be possibilities on that space, yeah, there could be some selected possibilities. What was number three? Oh, I have to admit, I forgot now. Yeah. I think that. Oh, yeah number three was that how much is relatively limited. Relatively limited is relatively limited. That is, I guess, the bottom line, Pasi, on this.
I guess, that means a couple of million euro then in that sense.
We don't disclose that.
Yeah. If I may actually continue, I have two kind of details still. You were referring up to EUR 11 million kind of booking related to share incentive program for pilot. Was it a year ago in the fourth quarter? Yes, in the fourth quarter on this Q4. It was Q4.
Q4 2020, yes.
Yeah. We're looking at the kind of RASK development. Would it be still kind of a realistic approach for this year that your revenue is actually growing by some 6%, meanwhile, your capacity is up 4% if you actually kind of are not seeing any kind of cancellations or weakness in the bookings for the remaining part of the year?
This is the thing that we are not guiding. I mean, visibility is less than usual right now given the situation related to coronavirus. We want to be prudent in this, we want to resort to what we know as of today of the situation, that is what we are telling you today. I'm sure that our situational picture will be updated during recent weeks, next days and weeks when we go forward, then we will be updating our guidance in connection to Q1 report. As I said, when we look at the long-term picture, we think that the situation with coronavirus eventually will go away. It is of temporary nature, the signaling that we are doing with the dividends, with the 40% payout ratio is that we believe in the medium and long-term profitability possibilities of Finnair.
Okay, great. Thanks. That's all from my side.
Thank you so much. We take the next question from Achal Kumar from HSBC.
Yeah. Hi. First of all, congratulations about the strong results.
Thank you.
I just want to understand few things, actually. What I'm not able to understand, of course, the demand to HK has softened quite a lot. Of course, for the protest and now, of course, because of the coronavirus, looks like quite locked down. Still you are sort of continuing with the double frequency, and you said that you can utilize 80% of the slots and still maintain it. If you could please help us understand why you're still utilizing full, and then how that has impacted the load. In that same context on the China side, when you say you have canceled 200 flights, in terms of percentage of your capacity, what is that percentage out of the total capacity you have canceled?
Have you been able to utilize that capacity or that still remains on the ground? That is my first question, please.
If I start on the last one. The impact of the approximately 200 flight cancellations that we have been now doing is amounting to approximately 1%.
Yeah.
We haven't made the decision, but assume that we would be canceling March also.
Yes, correct.
The impact of the 200 flights that we have now canceled, and assuming that the same would continue for whole of mainland China until end of March, capacity impact of that one would be roughly 1% on annual basis.
Have you been able to utilize that capacity somewhere else, or does that still remain on the ground?
This is low season right now. The capacity is on the ground. Of course, we are doing things. We see some benefits on the on-time performance side, and there are some things related to maintenance that we could now do.
Okay. On my Helsinki-Hong Kong question, please, if you could help us understand on that.
The question related to Hong Kong was how are we seeing that? I said it, in Hong Kong, we have the double daily and the Hong Kong Airport and the regulators, they have been lifting slot criteria. There we can adjust our capacity without fear of losing the slots. The 80% that I mentioned was related to slots in Asia, outside of Hong Kong, outside of mainland China, as a general rule. Related to Hong Kong, we see the load factors basically continuing to be similar than in Q4 where we were slowed down by the Hong Kong unrest. We are observing this very closely.
I guess we have announced that there will be six individual frequencies where we are doing the cancellations, meaning that if another daily flight, either of those is having a low load factor, we are rerouting customers to the other flights.
Okay. One small question. Your intra-European traffic is doing fine, on the total intra-European traffic, how much is the traffic which comes from Asia? What is that sort of amount of traffic out of total European traffic, which actually comes travel from all the way from Asia, connects on your Helsinki hub, and then travels onwards to European traffic? I just want to understand that portion of the traffic might have softened as well. What is that? How that works?
Passenger-wise, during Q4, on the number of passengers on European traffic category from Asia is less than 1/4, so less than 25%.
That's all of Asia.
Yes. That's all of Asia.
Including Japan, South Korea, Asia -Pacific, India.
Yes.
All of those.
All of those.
Do you see the softness in that kind of demand also?
Well, if there were, and as Mika said it, the current view is that the only soft spending we see is from mainland China, where we don't fly at the moment. Elsewhere in Asia, the status is normal with the exception of Hong Kong where the situation was a bit soft already during Q4. The momentum in Europe is continuing.
Right. I wanted to understand about the package holidays, the group bookings. You mentioned that while the demand was strong, the supply was down. Who is cutting the capacity? Where the supply is going? Who is taking the supply out? Secondly, in the same segment, the package holiday world, how do you see the demand-supply equation going into 2020? I understand that you have got a lot of group bookings as well. How do you see that segment going ahead? First, who is cutting the capacity? Historically, where do you see the capacity going out? How do you see the equation in 2020?
Just to understand your question precisely. Now you are referring to the package travel. Basically, we are talking about sun tours only in our context.
Yeah.
Yeah. There of course, the competitive landscape has been changing recently. Thomas Cook and in the Nordics, Ving finding another home, a new home. There has been some significant changes on the market in that space. I think that on the overall, when we look at the package travel segment, we see that the competition remains to be tough. We expect that to continue during this year, full of this year. That said, we do acknowledge that especially during the last couple of years, that particular segment has been more than usually impacted by the weather. First, a very, very good summer weather in Finland in 2018 that decreased the demand quite a bit. During last summer, very divided summer weather when that generated a bit more bookings.
That is something that we will need to keep in mind when we consider performance during this year.
Perfect. I'm so sorry. I have two more questions actually, if you can help me to understand. One is about the RASK performance. Of course, as you rightly said that on North America, you increased capacity so much, and then yet your RASK was up 4.3%, which is quite unusual, which doesn't happen, of course, and that's quite good. On the other side, in Europe also and domestic also, RASK was up 10% and 8%. Just want to understand, so what is changing? Has the customer profile been changed, and you just pointed out that you have a revenue management system. Do you see late bookings happening more or more corporate travelers? What has changed? Why the RASK performance was so strong in Europe, domestic and North America? If you could please help me understand on that. Yeah, please.
May I answer this question now? In North America, the RASK was especially good on our Chicago route where we added capacity. There in the month of November, we had a daily service and that attracted our customers. There was this classic phenomena that when you improve the product, it pays off. The daily product really was seen positively by our partners. In domestic, there was less capacity in the marketplace when Norwegian pulled out. At the same time, as said, our revenue management really controlled the availability well. For instance, for the Christmas peak period, so when we hold the inventory tight and manage well the booking curve. That's behind there.
In Europe?
In Europe, some capacity decrease is there, the revenue management worked really well. Minor effect also was due to the fact that Finland was the president of the EU, some added travel from various European countries to Helsinki. The remaining factors are the good performance by the revenue management and the capacity outlook for this year where Norwegian is seen pulling away from-
Some of the other, generally capacity reducing on the market.
Yes.
Sorry. When you say revenue management, are you referring to late bookings, wherein you get the more fare, higher fare, or how does it work?
Yeah, that's the logic there. If you know what you are doing and you are holding that inventory tight, i.e meaning that you rely on the later booking, which have higher willingness to pay. You need to know when to do that. When you have a Christmas holiday peak, you need to know what the price is for that particular time of the year or time of the month. That's what the revenue management team is doing now very well in Europe.
Okay. Right. Fair enough. My last question please, on the cost side, you talked about the cost efficiency, good that you're having a strong focus on the cost. Now, going ahead, as you have capacity on the ground, you have uncertainty around China, Hong Kong, and your capacity growth slows down significantly to 4%. Sorry. In the overall scenario, how do you see the cost pressure? You already talked about the depreciation, but then other costs, with the slowing capacity growth, do you see that will have pressure on the cost? How do you see that, please?
It has some impact. You need to remember that what Topi said early on, so the overall profitability is quite low during this season, especially on China routes. We haven't done an extremely thorough analysis on the volume impact in general. There's another factor what is impacting positively our costs. I don't know how closely you follow the Helsinki weather here, but we have had extremely mild weather here in Helsinki, and all the costs related to the weather and the operational costs have been really positive for us. De-icing is done less. Our on-time performance has been extremely good during the early part of the year. That is offsetting that cost drag due to the grounding of aircraft.
That is, of course, now seasonal. What you see, for example, in January on-time performance. January last year when there was a lot of snow and snowstorms and days like that, our on-time performance was 65% for the month of January. This January, our on-time performance was 85%, so a huge improvement in that one. Generally, when it comes to costs, as part of our strategy work, we have been making a very thorough cost benchmark. I think that we understand where the opportunities lie vis-a-vis our benchmark of airlines. As part of the strategy implementation, that will be having impact with the 18-month buildup period, as we have stated, related to our financial targets. We are working to address that cost immediately.
Okay, perfect. Thank you so much, and good luck.
Thank you.
Thank you.
Thank you, sir. There are no further questions at this time.
Thank you very much for joining us on this call, and thank you for very relevant questions once again. We hope to see you in our next earnings call in Q1, when we will be updating also our guidance. Thank you.
Thank you so much. This concludes today's conference call. Thank you for your participation. You may now disconnect your lines.