Good afternoon, ladies and gentlemen. Welcome to this news conference regarding Cargotec's Q3 results. My name is Hanna-Maria Heikkinen, and I'm in charge of Investor Relations. During the third quarter, we saw orders received grew in all business areas, and Kalmar's overall performance was strong. Today, our CEO, Mika Vehviläinen, will start with the group development and strategy update. Then our CFO, Mikko Puolakka, will continue with the business areas and outlook. After the presentation, there is possibility to ask questions. Please, Mika.
Thank you, Hanna-Maria. Good afternoon, ladies and gentlemen, also from my behalf. Thank you for participating for the Cargotec Q3 conference call. Overall, I'm fairly pleased with the progress we made during the quarter three. It is serving as a strong basis for us to drive our revenue and profitability in the coming quarter and into the next year. We saw strong demand in many of our key sectors, resulting, as Hanna-Maria already said, into the 23% growth in our orders or in over EUR 900 million in absolute terms. All our business areas are growing. Sales increased by 9% data point.
Despite the low headline number in our services, I'm pleased with the good progress we are making again in our service, core services business, where we showed strong growth in sales and orders. I come back to that one a bit more in detail in a moment. The operating profit was at last year's level. Obviously Hiab's profitability during Q3 was a disappointment for us. We had some specific issues in Hiab during the Q3. Mikko Puolakka will elaborate them during his business area-specific reviews. We saw good demand in port equipment, logistics, and industrial sectors in Kalmar. We also made further progress in our automation with yet another substantial order in automation during the Q3.
In Hiab, the construction and logistics sectors activity has continued to be a strong level both in North American as well as in European markets. We saw orders increasing in all the geographic areas. In merchant sector, market has improved but remains still at the low level. The activity level in offshore has increased but has not yet realized a substantial order improvement or activity. As said, orders increased in all business areas. In MacGregor, the comparison point had one specific large order for delivery of the floating ramps. The actual order intake increased in the core merchant sector as well as in the offshore sector, but obviously from a relatively low level. In Hiab, orders increased 14% in constant currencies. The orders increased both in Europe as well as in North America. In Kalmar, orders increased by 41% in constant currencies.
Our order book is now EUR 320 million higher than it was at the beginning of the year. The order book is of a particularly high quality with high proportion of short-cycle equipment with good margins. During Q3, we still suffered from some supply chain bottlenecks and have not been able to convert the strong orders we saw in Q2 and Q3 fully into the revenues. Despite that, the revenues increased by 9 percentage points. The overall supply situation has improved, but we suffered from particularly poor performance with very limited number of key suppliers during Q3. This was affecting our profitability negatively, both in Kalmar as well as in Hiab, with the impact on revenues, especially in certain product areas, and increasing cost levels in our manufacturing.
The delivery situation, however, is improving, and the strong pace we saw in September gives me confidence on Q4 and into the next year revenue and profitability as well. I am very pleased with the strong progress we are having in services. If we take out the impact of currencies and then the mergers and acquisitions, particularly the exits we did in Kalmar core services actually grew by 9 percentage points, and orders were up by 13% during the Q3. In Hiab and MacGregor, services grew 7% in constant currencies. Software sales were strong with a 33% increase in Q3 driven by high licensing activity, and software orders are actually up by 66% with a good progress, especially in automation software. The services and software are now 33% of our revenue. Here in Q3, we also concluded our strategy review.
Our vision remains to be the leader in intelligent cargo handling. We see many opportunities with inefficiencies in logistics industries and our capabilities to answer into those requirements. We are making great progress in services and digitalization, and they remain at the core of our strategy. Building on the progress we see in software and digitalization, we are aiming to build further solution capabilities to answer the questions and challenges our customers have in industry efficiencies and to build new solution models and revenue streams with our customers into the future. Heavy investments we have done in our business platforms and core control capabilities will drive our productivity improvements in the coming years. With that one, I'd like to hand over to Mikko Puolakka, who will cover the business area specific information.
Thank you, Mika. Good afternoon also from my behalf. Let's start with Kalmar, where we had an excellent quarter. If we look at Kalmar's orders, orders grew 38%. EMEA was up 53% and Americas 34%. We had very good development in the automation and project orders, and we got again a larger automation order in quarter three. We had also another good quarter in the mobile equipment, especially in the container handling equipment as well as in the forklift truck product line. The services orders developed well, especially in the EMEA fleet. In Kalmar, also the software orders grew by 62% year-on-year. Very nice development in that area.
In Kalmar, our order book is now slightly above EUR 1 billion, this of course offers a very nice basis for the quarter four as well as for the first half 2019 deliveries. This order book is now EUR 217 million higher than what we started the year 2018. Kalmar sales were up by 12%. If we exclude the two divestments, i.e., the Siwertell as well as the rough terrain container handling business, but those divestments which we did in the second quarter, sales grew even 18% year-on-year. We had a good progress also in the automation and project deliveries during quarter three.
Services sales grew by 9%, excluding the currency and M&A impact. Overall, Kalmar delivered very good results in quarter three, at EUR 38.6 million. It is very much coming from the good top-line development, deliveries as well as well managed costs. During quarter three, Kalmar managed to do actually very good results despite these supply chain issues what we have had, i.e., certain missing key components which we need for the product deliveries. Moving to Hiab, where we had a mixed quarter. There was a strong demand, and demand continued strong on our main markets, i.e., on Europe as well as in Americas. Total orders were up by 13%.
In EMEA, we had +50% growth in quarter three in orders, and in Americas, 9% growth. Especially the demountables and truck mounted forklift product lines performing nicely in quarter three. Hiab's order backlog is now also record high, EUR 371 million. Also here we have a very favorable mix towards quarter four and the early part of next year. Hiab sales were up by 3%, and services sales up by 6%. Despite the good top-line development, Hiab's profitability was to a certain extent below our expectations, and there were a couple of reasons for this. The largest item is related to the currency, the weak U.S. dollar impacted Hiab result by EUR 4 million.
We had also unfavorable product mix because of the supply chain challenges what we have had throughout the whole year. Also, the fixed costs were somewhat higher in Q3 compared to 2017, and this is coming from the investments which we have done in the sales tools and sales channels in overall. We have done the Effer acquisition, i.e, the loader crane acquisition in Italy during Q3 and expect closed deal now in Q4. Also, we have a new head of Hiab. Scott Phillips started as President of Hiab on 1st of October , 2015.
Moving to MacGregor, where the orders increased slightly in quarter three, quite a lot, driven by the Rapp Marine acquisition, which we did earlier this year. In this quarter, we did not have any major orders, but as Mika indicated earlier, in quarter three 2017, we have the floating linkspan order in France, roughly EUR 25 million in deal size. Service orders grew nicely, 8% year-on-year. In the MacGregor sales grew by 14%. This is to a great extent coming from the Rapp Marine acquisition we concluded earlier this year. Operating profit decreased from 2017, basically there are two drivers for this. We have incurred roughly EUR 1.5 million, M&A and integration related costs during quarter three.
We have had slightly lower capacity utilization ratio in certain product groups. As MacGregor profitability is fairly low, we continue also going forward seeking new opportunities to improve the cost base. That brings me to the savings programs where we are progressing more or less according to the plans. In the group wide EUR 50 million savings program, we have generated now in quarter three, EUR 3 million savings for the project to date, i.e., from 2017. Since 2017, we have generated in total EUR 18 million savings. MacGregor savings program, which we started in December 2017, there we have completed the actions, mostly personnel related reductions, and so far we have generated in this program EUR 8 million savings during first nine months.
The Kalmar production transfer from Sweden to Poland has been completed. The savings are somewhat lower than what we have expected. This is mainly related to the production inefficiencies which we have incurred because of the shortages of certain components and the supply chain bottleneck, and mostly related to our Polish operation. We expect that once these supply chain issues have been removed, we are back to the EUR 13 million annual savings here. All in all, our quarter ended with very solid orders, and after nine months we are now 15% higher than last year. Our order book is almost EUR 1.9 billion. This is EUR 321 million higher than what we started the year with. Nine-month sales are slightly above last year's level.
What comes to our operating profit, excluding restructuring costs, we are currently 9% behind last year's level. This requires a strong push from us for the Q4 for which we have the backbone. Our cumulative restructuring costs are EUR 41.3 million after nine months. Here the largest single item is the EUR 30 million Rainbow Heavy Industries share ownership revaluation which we did in Q2 this year. Looking our cash flow that has been impacted primarily due to the supply chain related challenges, missing key components, lower advances received. Our inventories have grown EUR 73 million since the beginning of the year. This is pretty much related to the supply chain bottleneck. Our advances have been going down by EUR 58 million, pretty much related to the MacGregor project.
Our ROCE was 7.4% versus 9.6% at the end of last year. ROCE has been primarily impacted by the fairly high restructuring costs which we have incurred during the first half of this year. Now after nine months we are roughly twice as high in the restructuring cost compared to last year. This is the main driver for ROCE. Our outlook has remained unchanged. We reiterate our guidance, i.e., we are targeting and expecting to improve the profitability from 2017. With those words, I would hand over to Hanna-Maria.
Thank you, Mikko. Now there is a possibility to ask questions, and we will start with the potential questions from Ruoholahti.
Good afternoon. It's Erkki from Inderes. A couple of questions from me. First, regarding the supply issues, was it entirely about availability or about also price for both? What would you say, have the problems been solved already or what should we be expecting going forward?
Regarding that one, the primary reason was the supply issues. It was actually related very much actually almost a single supplier. Beginning of the quarter we had a fairly dramatic shortage of some key components and that pushed back deliveries later in the Q3. The other bottleneck we have in the supply issue is actually installation capacity in Hiab. At the moment it's a very hot market situation. The installation capacity in North America and Europe is also a bottleneck together with actually the truck deliveries as well, with the strong truck demand as well. We are getting better, and as I said, the run rate towards the end of the quarter was at very good pace. If I look at in Hiab's case, for example, the loader crane product area
We were up to SIS 24-week delivery times, during the summer. Right now we are looking at sort of, 12-14 weeks delivery time. We are just starting to get on top of that one. Unfortunately also, and this is partly explained the higher situation that supply bottlenecks affected especially the higher margin product lines during Q3.
Okay. Thank you. Then, regarding just Hiab, could you add a little bit more granularity to the, to the margin issues? I mean, the impact of PHU talking about the EUR 4 million regarding Forex, but the other ones as well. Will Forex be a negativity going to Q4?
If I started the Forex, I mean, the one thing that maybe was missed a little bit was the fact that when we have such a long lead time during the spring and summer, and as we are actually hedging upon the orders, i.e. the cash flow, actually, the FX, even though the FX situation itself has corrected due to the long lead time. FX flowed into [audio distortion] from [audio distortion] to Q3 was still relatively high, and that was EUR 4 million. Exactly. The other issue was related to supply chain issues. Despite the strong orders we have seen in Q2 and Q3 especially, the delivery of the higher margin products was affected very negatively during the Q3, whereas some of the lower margin products are in better shape.
The mix was actually particularly and negative on the Q3. However, we see the supply chain situation correcting itself already on these higher performing or higher profitability product lines as well. The last component was about EUR 2 million, which is the investments we are doing in our services and frontline capabilities. Those will obviously continue in Q4 as well.
Very clear. Thank you.
Thank you. Are there further questions from Ruoholahti? If not, we will continue with the international questions.
Thank you. 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. A voice prompt on the phone line will indicate when your line is open. Please state your name before posing your question. Once again, please press star one to ask a question. We'll now take our first question. Please go ahead, caller your line is now open.
Hi, Magnus here with UBS. Just a couple of questions and a follow-up to the one we already heard. I mean, if you had delivery issues in the higher margin products in Q3, will you see a catch-up effect on those into Q4 with potentially higher margins?
that's correct. Unfortunately, this was even within the Q3, we had a particularly bad start than because the delivery situation or let's say with all the bottlenecks, we were not able to catch up within the quarter. As I said, the pace we are having at the moment is very encouraging.
Could you say anything about which product that's related to?
I don't want to go to the particular product area.
Got it. Also on, I think you had a less negative group cost in Q3 than we are used to. Should we still think about EUR 10 million as a fair guidance for Q4?
I would say that, between EUR 10 million and EUR 13 million, there is every now and then this kind of quarterly shift because we are doing also supporting some of the corporate by project. That might cause some deviation between the quarters. Typically our group costs have been on annual level, roughly EUR 40 million, say EUR 10 million-EUR 13 million, EUR 14 million per quarter.
Got it. finally on the TTS acquisition, how do you see that progressing?
We see pretty good progress with our discussions with the competitive authorities, and we still expect to have all the permits coming within the Q4 this year.
Got it. Thank you so much.
We will now take our next question. Please go ahead caller, your line is now open.
Thanks for taking my question. It's Manu Rimpelä from Nordea Markets. Firstly, just on the group guidance, I think you made it quite clear that it very much depends on being able to deliver the backlog and you have these supply chain issues. I guess my question is that you had these supply chain issues for quite some time, and I guess they've been dragging on for longer than you have expected. What gives you then now the confidence that we will not end up in February in a situation where the supply chain issues just dragged on for longer than you expected and we will not meet the guidance?
Yeah. The overall supply chain situation has actually steadily improved in most of the areas. We had a particularly nasty situation with one key supplier and a very critical component in the early parts of this quarter. That has been now sort of sorted out by actually having a number of different suppliers then and kind of covering that situation. At this stage, we don't see other critical component shortages. There are a lot of equipment that is almost ready or partly ready already today within the factories and the backlog and the current pace we see in our deliveries, we are confident on the Q4. Obviously, one has to admit that it's not without the risks to be within this situation as well.
Okay. Can you then comment about the pricing situation in the different businesses? I mean, we're seeing labor inflation picking up, we're seeing raw material costs being up, and then at the same time, the kind of economic outlook is maybe slightly soft spending, although you still have good order in taking in the quarter. So are you able to pass on kind of cost inflation and actually totally offset it? Or is it so that you're only able to pass on raw material costs? Can you just elaborate on that, please?
Well, I would first of all say that the MacGregor situation and the market situation is somewhat particular and there the competition is still tough environment in there. In Kalmar and Hiab, we have kind of initiated number of different pricing increases, both in terms of the equipment as well as the services. Very clearly, the market demand is strong. Our suppliers are increasing their prices or at least trying to increase their prices, and we are passing those price increases to our customers. Having said that one, the situation is somewhat more difficult in a sense that with the longer delay, delivery times in some of the products, it takes longer for us to pass some of those price increases.
With shortening delivery times now, for example in Hiab, we would expect those price increases to start to bite back there as well, of course.
Could you comment on the Kalmar margin a bit more in detail? What was the driver behind the year-on-year increase?
Mikko, would you like to take that?
Basically, in Kalmar, it's very much coming from the top line development. We had the overall deliveries in the project as well as then in the smaller equipment light as well as in services. Basically, there were no kind of, despite the component shortages, there were no major negative items in the delivery structures.
Yeah. You would say that without the delivery issues and the costs that incurred, there would have been ingredients for possibly even better performance during the Q3.
Is it fair to say that this is kind of a normal quarter given this level of sales that you see this operating leverage coming through? Maybe related to that, what impact did the software sales have? I guess they were up EUR 9 million. What kind of a contribution does that have to the margin in a quarter?
Software, of course, has a significant contribution in the margin. With the software, as long as the licensing model is still the primary revenue driver in Navis especially, that the results will vary from one quarter to another. We see a strong pipeline and the backlog, of course, the equipment as well on the Q4. I think all the ingredients to deliver good quarters are there.
Okay, thank you. No further questions.
We will now take our next question. Please go ahead. Caller, your line is now open.
Good afternoon. Thank you for taking my questions. It's Leo Carrington from Credit Suisse. My questions are both on Kalmar, please. Kalmar orders have been very, very strong, in the quarter and underlying in the previous quarter. This quarter there were no mega orders. Do you see a improvement in the underlying environment?
Support, order and activity has been clearly last year was relatively low level in many ways, and it was of course visible in not only all of our key competitors' order intake and very clearly the activity has been in the port sector higher this year. We see increasing interest into the automation. We have now done four automation deals this year so far. Also at the same time, the logistics sector, for example in U.S., is having very strong demand at the moment. In some of the product segments in logistics sector in U.S., our capacity is actually fully tied up until May next year. Also in the industrial sector for the heavy equipment, we see good demand as well.
In quarter three, we got one another automation order, not necessarily the same size as the mega deal in quarter two. Automation continues.
Okay, thank you. In terms of software sales within Kalmar, in terms of the strategy to move towards software as a service, as you just alluded to, how's this actually going? Have you received any more significant SaaS contracts after the COSCO deal?
We haven't had deals of that size. The SaaS will actually happen in from two main sources. The new software products we are introducing primarily from Navis are all sold in the SaaS. We are also converting the current main product, the terminal operating system into the SaaS model, and COSCO was an example of that one. The new terminal operating system deals, some of them will be done in SaaS, but there is also still a strong element of the licensing revenue within the TOS market as well.
Right. Are customers generally quite receptive to the idea of paying for their software is by SaaS rather than license fees?
I would say generally they that's seen as a more predictable cost model. And for some of the new digital platform products, that's actually because that's linked into the traffic and the different other performance factors. Customers see that very beneficial for them because it's directly related to the level of activity they will experience themselves.
Okay, thank you very much.
We will now take our next question. Please go ahead caller, your line is now open.
Yes. Hi, this is Johan Eliason at Kepler Cheuvreux. I was wondering a little bit on automation again. Can you tell us a little bit where the demand is sort of coming from going forward? Is it more of these orders from inland logistics centers like last quarter or is it actually ports that are converting or expanding their automated ports right now? Thank you.
This inland logistics center and the big trend of actually trying to kind of lighten up the ports and moving the traffic in inland by making the port effectively only an unloading area and then doing all the other activities within inland is a mega trend. Those are of course, huge infrastructure changes, and they will happen sort of slowly. At this stage, in Q3, we had none of those ones, and I think they will be far and few still between, but that's still a sort of mega trend that will continue for number of years to come. I would say in automation then, and the main direction is the same we have indicated earlier.
It's the partial automation of existing ports where, sort of customers will take, certain areas of the port and then automate that one. The level of activity on that one is good at the moment. There will be some of those larger greenfields, but they are again, few and far in between.
Good. I think I saw a report from Drewry saying that the port industry looks under invested in the coming years. Is that a view you share? Do you think the normal CapEx capacity, CapEx will have to be stronger as well going forward?
It looks like at the moment that the capacity utilizations are actually getting higher in the ports at the moment. The traffic of course, has been relatively strong in the recent months and the Drewry forecast, even though it was taken down some of this, still showing a relatively strong traffic growth in the coming years. Very clearly there are indicators that show that the capacity utilization in ports is getting relatively high.
Okay, good. Just finally on the margin in Kalmar, obviously, I think this 9% was already a record high, what I can see for the Kalmar division, but it seems like you still have a bit of a catch up effect coming from this move to the Polish plant. We saw a tremendous impact, I think it was two years ago for here when you got that operation running smoothly. Is that what we should expect ahead of us for Kalmar, despite the already very good margin?
EUR 13 million that we indicated is still very much there to be had. The timing in hindsight wasn't perfect because while we did the whole capacity ramp up for the new production coming from Sweden, we saw a strong demand across the board at the same time. We really struggled with that one. At the same time, the sort of the component shortages haven't helped us either. We have products moving in and out of the product line while we are fixing the shortages in there. Give you an indication, the labor costs are now roughly 20% higher than in the plan with the current performance in the Polish factory because of the inefficiencies coming from these factors.
There is clearly, and then we stabilize the situation still and an upside opportunity on that cost area.
Okay. Thank you very much.
We'll now take our next question. Please go ahead caller, your line is now open.
Yes. Thank you. This is Antti from Danske. Just to make sure, what really drove the strength in Kalmar orders. I know that you have different client groups. You have terminals, then you have industrial clients, and then you have logistics centers. Was it really container terminals that grew the development, or is it more like I thought you said before that logistics and industrial segments were potentially the driving force in Q3 orders. Could you just clarify a little bit on that?
Mikko is looking at the numbers in detail, but I would say so that it was strong in all around ports. They're probably slightly above that average number. I would say that the industrials slightly below that one and the logistics and probably the ballpark was slightly higher as well. The strongest growth I think was on the port and the logistics side, with the industrials being somewhat lower.
Right. When I see a 38% if I recall right, year-over-year increase in order intake for Kalmar in Q3, one could say that it was really, I mean terminals was behind that. It's not like, it was mainly some other segment that grew that increase.
No, absolutely. Similar to the Q2, in Q3, the port and terminal order activity and generally the activity we see in front of us is at a good level.
Is that because terminals have started to replace again at a faster pace, or is it that they have started to expand? Which of the two, replacement or expansion is that you see improving?
The replacement is an underlying activity and especially in our equipment side. The business is always primarily driven by replacement business on that one. Obviously, the port activity has been fairly high level in lately, and that's driving, of course, utilization of the equipment. There might be some element of accelerated replacement. Of course the automation as that we have set so far for automation deals this year, they are driving part of the ordering increase as well.
Very clear, I think with the stronger consolidation of the shipping lines continuing, I think the balance of power between the ports and shipping is shifting where the ports usually had a very, sort of, a friendlier operational environment and the cost pressures there are leading for ports to consider sort of different efficiency measures, automation being one of them.
Yeah. Okay. That's all from me. Thank you.
Thank you.
We will now take our next question. Please go ahead. Caller, your line is now open.
Yeah, hi, it's Antti from DNB. Thanks for taking my questions, which would be on Hiab. Firstly, referring the quite strong order intake growth that you're seeing both in America and Europe. Do you think this is a fair representation of the market activity, or are you taking market share, especially in America? Is there a kind of a behavior among your customers that they are placing early orders in anticipation of cost inflation or that's the lead times of trucks, and I guess your equipment also are kind of long right now? Thank you.
I don't think we are moving market shares in a considerable way at this point. This is really at the moment a question who is able to deliver at the moment. If I look at that against our biggest competitor, which I to my understanding is also struggling for supply chain related issues and as most of the sort of related industries at the moment. I haven't seen a larger shift. I think this is primarily coming from the market demand at the moment.
Okay, thanks. What about the longer lead time, for example, on the truck market and overall, do you think that your customers are kind of eager to get orders in before cost inflation takes another step, or because it's getting longer and longer time to get the equipment, or is that dynamic at all visible in Hiab's business?
Don't see that much, obviously. I think people see cost inflation and increase in prices in our own pricing as well as truck pricing. Some of that there might be a factor of that one of trying to, you know, order before they see further pricing increases. Again, I don't think that's a big driver at this stage.
All right. That's all from me. Thanks.
As a reminder, please press star one if you wish to ask a question. We will now take our next question. Please go ahead, caller. Your line is now open.
Thanks for taking my follow-up. It's Manu Rimpelä from Nordea Markets. Can you just comment about how do you think about the cash flow progression in the fourth quarter? Obviously, you said that you've been tying up capital because of the supply chain issues. Should we expect kind of bigger working capital release in the fourth quarter? Are you willing to kind of give any sort of an indication of how you think the year-end net debt could be landing at?
Basically, of course, the cash flow forecasting is perhaps even more difficult than the profitability forecasting. I would say, like you said, it's very much dependent on the deliveries and the timing of the deliveries. The sooner we can do those during the quarter, the faster that we can collect also the monies, because if we deliver at the end of the month, then it just moves from inventory to receivables. Of course, there we aim at conclude the deliveries as soon as possible to also to collect the money. We are not guiding the cash flow separately. Very much, now in quarter four, that's dependent on the deliveries.
If I may follow up on that? Basically, we should expect kind of a typical seasonality and then, hopefully on top of that, some working capital release.
Yes. Correct.
Thank you.
We will now take our next question. Please go ahead, caller. Your line is now open. Please ensure that you're not on mute when trying to ask your question.
Yes, this is Tom from Carnegie. I wonder about two things. Firstly, can you give some kind of indications about when you expect MacGregor's demand to start improving, split into different chip segments? What are your current feelings there? Then I wonder also about the prospects for even larger automation orders next year. Do you have any interesting quotations at the moment that it seems to roll forward?
On MacGregor, we see the situation improving all the time, but at a relatively slow pace. From overall performance, I would say that one should not expect MacGregor's next year performance to be much different from this year's performance, although we would expect to see order starting to improve throughout 2019. On automation, as I said, the activity level is relatively good and there are some interesting projects on that one. As we have learned from the past as well, I mean, trying to forecast the actual timing and realization of those projects is quite difficult.
Okay, thanks.
There appear to be no further questions. I would like to turn the conference back over to the speakers for any additional or closing remarks.
Thank you. Do we have further questions from Ruoholahti? Seems like that there are no further questions. Thank you for great questions and active participation. We will publish our financial statements due on February 8 th. See you then. Thank you.
Thank you.
Thank you.
This concludes today's call. Thank you for your participation. You may now disconnect.