Welcome to Sitowise's Q3 result presentation. My name is Mari Reponen, and I'm Head of Investor Relations here in Sitowise. I have here with me our CEO, Heikki Haasmaa, and our CFO, Hanna Masala, who will shortly start the presentation. Here is our agenda for today, and as you can see, Heikki and Hanna will first discuss our Q3 performance and then our January- September development.
After that, Heikki will go through our outlook and how we are progressing in strategy execution. If you wish to ask questions, you can do it, do that via chat box on the presentation. I will go through the questions you have sent after the presentation. We kindly ask you to provide your name when presenting questions. Now we continue to the presentation, and I will hand over the stage to Heikki and Hanna.
Thank you. Thank you, Mari, and welcome all on my behalf as well. We had mixed performance in our business areas during the quarter. Let's start by looking at what went well. Firstly, two of our business areas, Infra and Digital Solutions, continued their strong growth. On year-to-date basis, they are also above their targeted profitability levels that we indicated in our Capital Market Day in June. As the market environment has some weaknesses in these business areas, also, this means that we have continued to outperform the market. So I'm very pleased with this performance. Secondly, our actions to ensure our future competitiveness and performance in Buildings have progressed well. I will come back to this later on. And thirdly, our cost control and pricing activities have been successful in mitigating the effects of inflation.
During the quarter, we also benefited from lower voluntary attrition rates and lower sickness absences. But we also had some challenges during the quarter. So firstly, we had the market headwinds. The continued market decline, especially in buildings, had an impact on our third quarter net sales growth and was one of the two key reasons behind our full year guidance revision two weeks back. Secondly, integrations and other internal matters took more bandwidth than expected in Sweden. This led to a decline in sales focus at the same time when the market was also a bit softening.
I'll go through the development in Sweden in detail later in this presentation, but already at this stage, I want to underline that for the main part of the business in Sweden, we are doing well, and we are confident that we can overcome also the challenges faced in third quarter by refocusing our actions in future. So, the headwinds mentioned weakened our third quarter performance, as you can see from these figures. Our net sales growth was down by 1% year-on-year. In addition to the weak performances in buildings and Sweden, net sales growth was slowed down by the negative calendar effect. Krona-euro exchange rate had an adverse impact too, as net sales would have grown by 1% in constant currency exchange rates.
Organic growth, which is adjusted both for the currency and number of working days, increased 1% year-on-year in third quarter. Lower sales and earlier mentioned challenges had an impact on our adjusted EBITA, which came down to EUR 3.5 million and 7.6% in margin. We'll get back to this also later on. The general economic environment is visible also in our order book that came down 5% during the quarter. However, the order book is still in a good level in each business area. Let's then have a look at each business area more closely, starting with buildings. So buildings continued to suffer from the very difficult construction market and also negative calendar effect, and its net sales declined by 13% from the comparison period.
During the quarter, our focus in buildings was on two things: firstly, on adapting business operations to the existing market situation, and secondly, on ensuring solid growth platform for buildings' future growth. In third quarter, we continued to adjust our capacity through different vacation arrangements and also limited temporary layoffs. The effective management of work helped us to keep utilization rate on a good level. We also continued to focus heavily on the costs and pricing, and actually, I'm really satisfied that the average prices developed well despite increasing price pressure, since we have prioritized long-term profitability instead of entering to toughest price competition. We still have a good order book in buildings, and new orders are coming in basically from all business segments under buildings business area.
Of course, the weakness in the construction industry continues to impact our business and outlook for the coming quarters. However, we believe that we are now better positioned to seek for the growth and performance, and expect to see some positive impact already in fourth quarter. We initiated the change negotiations in buildings in the beginning of August, and those were completed in early October. I still want to recap what were the objectives for the negotiations. Securing conditions for the future growth, having more agile ways of working, developing national cooperation, and also improving performance. Following these negotiations, now a new leaner organization that supports also efficient project and client work was introduced.
We reduced the number of employees by close to 80 people, and in addition to that, also approximately 10 voluntary leavers left during the process. The one-off costs related to these changes will be roughly between EUR 1 million and EUR 1.5 million, and they will be recorded in items affecting the comparability in fourth quarter. The savings will be visible from the fourth quarter onwards, and fully from January 2024 onwards. When estimating the impacts of the personnel reductions in 2024, cost base and comparing those to this year, it's also worth keeping in mind that we had temporary layoffs of some 20-30 employees ongoing in buildings for most of the part during this year.
Then following the new organization in buildings, we will increasingly focus on services with higher margin, such as special services, energy efficiency planning, and other services related to energy, as well as security-critical services, which continue to grow. We also aim to broaden our client base and service offering to improve the resilience of our buildings business further. The areas we are looking at include, such as commercial and logistics, buildings, automation, and also now increasing the smart services, new kind of, digital services. Then with the new organization, and also under Timo Räikkönen's new leadership, we continue to develop cooperation between local offices. And I'm now really happy to share also that... So Timo, will start to lead this building business already in the mid-November.
As a final point, under the buildings, we continue to improve performance with the group-wide initiatives related to new sales culture, innovation culture, pricing excellence, utilization rate, and also cost containment. Let's move on to Infra business then. So, as I already said, Infra clearly outperformed the market again and grew by 9% year-on-year. I'm very pleased with this performance, and almost all of this growth is organic. The market environment also in the Infra continues to be mixed. There's a very strong demand for energy and environmental projects related to green transition, and then also the security-related demand is growing. However, weaker demand is seen in projects related to municipal infrastructure design and also groundworks for new buildings. This is closely related to the construction market downturn.
There are several factors impacting Infra's great performance, but ultimately, success is really based on the work done during the past years. So we have close client relationships, our market position is strong, and they are really good experts working with high drive and dedication. Year-on-year, we have also succeeded in pricing. In utilization rate, we saw a small drop during the quarter, but that was really much related to more time spent on sales, so that's good for the future. Order book is at a good level, and as a whole, we see a good and stable outlook for the Infra business. And we are also looking forward to the outcome of the effects of the new Finnish government program. Then, digital solutions.
Net sales in the Digital Solutions continued to grow rapidly by 23% year-on-year. The growth was entirely organic. There was a significant contribution from Bitcomp's LeafPoint product roll-out. The growth was supported by the good development overall with the SaaS product sales, successful pricing, and also the utilization rate, which was at a good level. During the quarter, we also saw increasing number of offers for our digital solutions offering together with Infra or Buildings. This is showing that how we are further developing and improving also our top-line synergies from our different business areas. As earlier mentioned, the market was also a bit softening in third quarter in Digital Solutions. We see that the macroeconomic situation in Finland is impacting our private sector clients who have cut their investment budgets.
There's, on the other hand, one exception to this trend, and that is renewable energy sector, where the demand continues to grow rapidly. The public sector also continues to invest well in digital solutions. Outlook is overall still good, and our SaaS business continues to grow well. It is good to note, however, that Digi's growth rate is expected to slow down to a more challenging market environment and completion of the LeafPoint roll-out. As the last business area, then we'll deep dive to Sweden. Firstly, the krona-euro exchange rate continued to impact heavily our reported net sales figures. In kronas, our net sales increased by 7% year-over-year, but when reported in euros, it declined by 4%.
The top line was also impacted by the negative calendar effect and also the slight softening of the market. The latter was visible, especially as a slower start and lower utilization after summer. However, the market remains still reasonably good. Local infra market is growing fast, and there is good demand in commercial, industrial, and also institutional building projects. On the other hand, the local housing market is very weak, but Sitowise Sweden is not so exposed to that weakest market segment. Order book was slightly down in third quarter, but still on a good level. And in third quarter, the integrations of companies acquired in 2022 and some other internal matters took more bandwidth than expected in Sweden. I'll come back to this one in the next slide. But before that, some short comments about the outlook for Sweden.
So firstly, we expect the market to remain mixed, but overall good. And, yes, we have analyzed the reasons behind the third quarter weaknesses and are confident that our corrective actions will take us back on track, and have a good action plan for that one. So let's run through where we are in Sweden. Firstly, in the past four years, we've done eight acquisitions and built a company with industry-leading expertise in selected segments. This is a very good achievement, and our team in Sweden has been doing a good job in serving our clients and also creating and promoting the Sitowise brand. Secondly, to benefit from the larger scale, we have focused on efficiencies by gradually integrating our systems and ways of working in Sweden. During the third quarter, in addition to the softening market, we had couple of internal challenges which burdened the performance.
So firstly, time spent on these integrations has been higher than expected. Secondly, there was also one problematic project dating back to 2020, which has taken a lot of management time and resources. Thirdly, there has been some delays in the key recruitments, and as a fourth item, there has been quite a lot of focus on the internal activities at the cost of sales.
But how do we then move on? So, we aim to get back to the targeted growth and performance track in Sweden by turning the focus back on sales and client work. So concretely, this means high focus on pricing, growing market segments, and also building a more proactive sales culture. We also pay attention to the project performance. The challenging project, what I just mentioned earlier, will be finalized by the end of the year.
And thirdly, we deprioritize some internal activities. So the integrations of the three companies acquired in 2022 were finalized in third quarter, and now we also postpone the implementation of some non-critical development projects in Sweden to release time for the number one, basically here. Let's then have a look at the whole group's performance. Firstly, I'd like to highlight how our business area mix has been developing during the last year. So as you can see, both in the net sales and also in the share of the FTEs, both Infra and Digi has been increasing quite a lot, while Building has declined clearly. And this is also the trend what we expect to continue in the near future as well. Net sales. So just recapping, net sales was down by 1%, but up by 1% in constant currencies.
The net sales for growth was driven by Infra and Digi. However, the growth was adversely impacted by the negative calendar effect, weakening of the krona, the continued weak market in buildings, and time taken by internal integrations and some challenges in Sweden. Organic growth, which is adjusted for the calendar effect and currency impact, was 1%. Good to mention still that when we exclude the buildings business from the organic growth, our growth would have been 9%, which is actually really good overall. The group's order book declined by 5%, both from the end of June and from the comparison period. In Digital Solutions, the order book increased. In Infra and Sweden, order books saw minor declines, and in buildings, order book was down a bit more.
But all in all, as said, we are in a good position. Our order book remains at a good level. I'd like to share a couple of great wins from the quarter. So the first example is from the Infra business area, where we signed a significant framework agreement with the French company, Neoen, regarding environmental surveys and permit process management for renewable energy projects, such as wind farms and also solar energy projects.
Digi has had a service contract with Neoen already for several years for digital services, and in practice, this cooperation now expands also to our Infra team. The second example relates to digital solutions, where we did a service agreement with the Swedish Solkompaniet Sverige on using our GIS, so geographic information system, data management platform in solar farm exploration and development. Digi, Digi is also participating in the Neoen framework agreement signed by Infra as said. But great wins both. And now I'd like to hand over to Hanna.
Thanks, Heikki. Let's start with this familiar slide, where we present the three key components when analyzing our technical consulting business. The first graph here shows our headcount and FTE development, and that's obviously our capacity to grow and serve our clients. Even if the graph of these employee shows quite flat development, there is quite a lot happening between the business areas, as you saw already on the page presented by Heikki.
If we compare Q3 with the situation a year ago, FTE number was down by roughly 100 in buildings, while other BAs were growing with a clearly largest increase in Infra. The second graph here in the middle shows the sickness absences, which play a key role in the picture, as those reduce the available capacity.
Our sickness absences were slightly down from the comparison level, which had roughly EUR 300,000 positive EBITA impact compared to the previous year. The third graph shows the utilization rate, which tells our ability to bill the available hours.
In Q3, the utilization rate declined slightly from the previous quarter, and this comes from Sweden, from this internal focus, as Heikki mentioned, from Infra also, where it was more time on sales and tenders, and from the buildings, where the market had some impact, and then the change negotiations took some time away from the work. We are obviously not satisfied with the adjusted EBITA margin of 7.6% for the quarter, as it's clearly below our targeted level.
The biggest reason for the profitability decline is the market-driven weak performance in buildings. There, both the growth and profitability have taken hard hits, and we've been managing this with temporary layoffs and other efficiency measures.
The second factor impacting the profitability was the weaker-than-expected performance in Sweden that was just discussed. When we compare the salary increases or when we compare with the last year's third quarter, the salary increases from the collective bargaining agreements have also impacted us. The personnel costs were up by almost 4%, while our FTE amount was up by 1%. This gap indicates the upwards pressure from the salary inflation. As we have mentioned also earlier, we are mitigating this increase by focusing on pricing and our cost efficiency measures.
For example, we continue to cut underutilized premises and constantly work on streamlining IT purchases, and so on. Then the last item, which also was mentioned by Heikki in the quarter, was this one working day less than the previous year, which is hitting our top line and bottom line, and the same difference in the working days will also appear in Q4. Our cash flow from operating activities decreased to EUR -2.7 million in the quarter, while a year ago it was slightly positive. The biggest reason for this decline is the change in working capital. Due to the seasonality, Q3 is typically having low cash flow. We have the holiday periods, meaning lower invoicing, but still the salaries and other costs are running normally.
But then also we had some timing effects of payables, some pension-related payments, which had been on a high level at the end of the Q2 and were at the more normal level in Q3. So this was increasing the working capital during the quarter. Obviously, then, the weaker profitability also caused the cash flow to decline. Our net debt amount increased from the end of June, and the leverage also increased, being at the same level as the year earlier. Typically, our net debt and leverage decline towards the end of the year, as Q4 is a period of high activity and invoicing in the business. Let's then look shortly at our performance year to date, from January to September.
Good to note that this is clearly better than the Q3, looking at isolation, thanks to the stronger first half of the year. In the first nine months, we saw 8% net sales growth or, ten percent growth, in constant currencies, and the organic growth was 3%. Our adjusted EBITA margin was, down year-on-year. The first nine months' performance, however, was clearly closer to the comparison period, totaling 9.2%. Operating profit, on the other hand, improved clearly from last year, and it was EUR 11.4 million, thanks to lower items affecting comparability. Also, the operating cash flow was ahead of the comparison period for the nine months, totaling EUR 12.4 million, mainly thanks to the improved operating profit.
As said, in the previous page, the leverage was on the level, on the same level as the comparison period. As just discussed, over the previous slide, the January-September was clearly better than the Q3, and this can be seen especially in the operating profit, which increased 21% year-on-year, and in the cash flow, which improved 31% from the comparison period. Then back to Heikki.
Yes, thanks, Hanna. Market outlook and guidance. So firstly, I still would like to repeat that the demand for our services is supported and continues to be supported by the megatrends: urbanization, renovation backlog, digitalization, climate change, and also security, increasingly. Then, of course, there are still uncertainties in the market, which may continue to impact our clients' short-term decision making. Outlook for the fourth quarter, especially for buildings, continues to be challenging. In Infra, Digi, and Sweden, we see both areas of stronger and weaker demand, but overall, the economic outlooks in both Finland and Sweden look quite okay, but there's some slowdown in the growth. There are also other factors impacting the rest of the year, such as we are going live soon with the ERP and CRM.
Of course, the continuous inflation, calendar effect, currency exchange rate, and then also the higher interest rates. Overall, then looking at the guidance, so, we revised that two weeks ago, and, we are saying that, Sitowise Group estimates that its net sales in euros will increase compared to last year, and that our adjusted EBITA margin for the whole year, 2023, will be below year-to-date adjusted EBITA margin of 9.2%, but, above 8%. So this was the financial part, but then it's also good to show how we are progressing with our strategy. First, as a reminder, so, we have the following elements in our strategy: our values, purpose, and then the direction where we are going, our vision and the strategic pillars.
With the help, we are also measuring how we are progressing overall. And then we have strategic focus areas. Today, we'll go through how we have been progressing with these strategic pillars. Let's start with the most innovative. We've already succeeded to build a solid pipeline of smart services and turned several ideas into productization and commercialization phase, so this has been well progressing. One example of those is our smart analytics offering for the forest segment. So we are using satellite data and AI, artificial intelligence, to provide insights of the changes in the forest. And this service provides significant value for our clients. In addition to this, we have already six innovations for further development as part of our innovation competition.
And going further, we continue to use data, analytics, and also AI for new use cases and business opportunities to provide both, yes, new business, but also, like, internal efficiencies. Both are needed. The most sustainable, we've continued to develop both our existing sustainability tool, which is integrated to our Voima platform, and then also our own sustainability related processes are progressing well towards our sustainability goals for 2025.
We also see a significant potential in providing sustainability services to our clients, and this has been well progressing. So we've already now announced a new internal organization to drive further development and sales in the high future growth and margin areas. And these include renewable energy, climate change mitigation, biodiversity adaptation, and then also circular economy. And we have clear targets for each one of these.
And then the most efficient, so here our objective is to develop a lean operating model that enables our experts to focus on client work. During the third quarter, we introduced a new sales organization, which has specific sales groups for the strategic sales growth areas, such as sustainability services, renewable energy, and also industrial clients.
We also have we also have established a, like, a horizontal business area sales group that focuses on, and also coordinates these smart services, which are then going to be offered in all business areas. And then we continue to define and implement the smartest ways to work and develop key IT systems. And, as mentioned, so ERP and CRM system go-lives are planned to happen in the coming weeks. And for all of this, we have set clear goals and KPIs to monitor our progress.
Just would like to also still remind that we have set also two key strategic KPIs for our strategy period, so the one being, to double our sustainability services revenue, and then secondly, that our recurring revenue will be 10% of our annual revenue by the end of the strategy period. Then, of course, we have several metrics also, for the strategy to ensure that, we have our clients', support for us and, how we are, how we are developing, the customer loyalty. But now it's time for the questions.
Yes, we have a couple of questions, and let's start with the market-related. So, the question goes: "How is the pricing environment for you at the moment, and are you able to increase prices or prices coming down?
Yeah. So of course, okay, yeah, basically, in all of the markets, clearly the pricing environment is like tough as there is some slowdown in all of the markets, as just explained, and there is heavy, heavy price pressure. But, as I said earlier today, so actually we've had a really high focus overall on the pricing of like focusing on all of the levers there, and we have been successful. So, actually, our average prices have gone to the right direction.
Okay. And then about the organic growth rate, it was one person in Q3, so is that something you look forward also in Q4?
Yeah. Again, as was said, so now the fourth quarter also from the mixed market environment continues to be clearly visible. So we then expect that probably same kind of growth rates will be there as we shared. So in the building segment, it has been... Or we've had a negative growth. But on the other hand, basically all the others, also with the constant currencies, have been well growing. And of course, we want to maintain and further improve the growth organically.
Mm-hmm. Yeah, I could just complement that obviously we are not guiding the sales by quarter. We've said that this year we expect the sales to be higher than last year. And then one thing which Heikki also referred to was that in the DT, we've had, like, a lot of this Leafpoint product rollout impact and that's sort of more or less done. So, that's, that's one kind of element in that, and of course, also in the year-end, there are typically some project kind of completions, and there could be a bit like in one year you have more of those and in one year a bit less, so let's see. Then a specific question about buildings. So what kind of savings you are expecting from the layoffs?
Yeah, so we are not disclosing the exact savings, but as was said, there are now layoffs of, yeah, close to 80 people. And then, of course, it's good to just remember that, of course, already, like, this year, we've had already all the time, basically, like, from 20 to 30 people absences due to this temporary layoffs and all kind of arrangements. So, basically from there it can be then calculated.
Mm. Yeah. Also, I think it's of course unfortunate that these layoffs needed to be done, but good to remember that they also, like, respond to the market decline. It's not like this overhead reduction program like you, you can do in some companies, but here we are also losing top line, with the, with the people. But that's just kind of a fact that the, the market is not providing sufficient work, and that's why, why we took down the capacity. So it's not as straightforward as just to calculate the kind of pay, like salary costs.
A couple questions about Sweden. Firstly, what kind of problems are you having there?
Yeah. So, as mentioned today-
Sorry, a continuous question-
Uh
... when do you expect them to end?
Yeah. Yeah. So, as we, as we said today, so, yeah, quite a lot of time has been going for the integrations. But these integrations will be ended by the end of this year. Or actually, okay, they were already completed, but now by the end of the third quarter, but also all the things related to those ones will be then. So that's one thing. And then, then we had this one, pretty big and troublesome project, which date back to 2020, but that will be also closed by the end of this year, and that's, of course, not then helpful here.
As we said, there have been some delays in these key recruitments, and of course, now we are working heavily with those ones so that we get the FTE growth, and then the sales, sales naturally, which is a key part here overall. And then the fourth one was that we are also now deprioritizing some of the internal activities, just this kind of, like, development, which are not so time critical, so we will be postponing just to release time for the client and sales work.
Considering the situation in Sweden, the market, as you said, is still fairly good one. Sweden is a strategic growth area, but are you able to continue growth, especially with M&As in this situation?
Yeah, of course, Sweden stays as a high priority area for us, and we really want to get the growth from there also in the future. So, as I just mentioned now, we had some internal challenges. The corrective actions are progressing. Of course, now we pay attention to those ones, but then when we are also or have been solving them, then of course we are able to continue our journey.
A follow-up question on the key recruitments in Sweden. What's really the issue? Is it about finding candidates or just other slowness in process?
Yeah, a bit of a slowness in the process, but of course, this also in general relates to all what has been said, that we've been also focusing on some other activities at the cost of the sales. So, of course, now focusing on the sales side, client work, and then the FTE growth will come as a result of that one as well.
Okay. And then a question maybe to Hanna about the covenants in loans, what are they?
We have not disclosed the covenant levels, but obviously confirmed again this quarter that we are comfortably within the covenant levels.
Okay. And then, a couple of questions about the ERP and CRM system. So how big risks are really related to the implementation of those, and what kind of profitability improvements do you expect from these systems?
Do you want to-
Yeah
... That one maybe-
I can comment.
Yeah.
Yes.
Mm.
Well, I think the risks are-
Mm
... obviously, are related to the fact that now the people need to learn to use the new systems. We have trainings starting soon, and there is obviously we have planned them to be done in a most efficient way we can. But there is a possibility that this is kind of somewhat impacting the utilization rate as people need to start, like, doing the hour bookings and creation of new projects and invoicing with new systems. And then obviously always these are big projects that impact basically all of the parts of the company. So we've done a lot of kind of preparations and testing and everything and are confident that it goes smoothly. But of course, like, you can never 100% plan everything. But I think the biggest thing is that if there is a kind of a decline in the utilization rate. When it comes to the benefits, obviously, you can't like expect that to happen in a week or in a month.
But the longer term, we have, for example, the CRM system, which will be much more developed than the previous one. So this will be greatly supporting the sales efforts. We will have better ability to coordinate the client activities between the business areas. We'll be able to better plan the client work. When it comes then to the project work side, obviously, this will help us to automate some processes, and overall, we'll get more modern systems to continue working from.
... Okay. Then, question about investments in innovation and smart services. Are you able to continue those, or do you have to sort of prioritize there as well, or downscale the plans?
No, our plans for, like, overall, what comes to our strategy, we continue to execute our strategy. And, of course, we also will be investing in these, like, new opportunities and services, and also some ways of, like, redefining the efficiency, because we feel that that's also something that is also then paying off in the mid long term. So, we'll continue. But of course, we want to be there and also naturally selective, and then we are really selecting only the ones which have, like, also what comes to the innovations, new services, the ones which have, like, a truly commercial potential. So of course, it's not just looking at, like, five years, but also that they should be seen then quite soon, I mean, the results of that.
One element on that is also the kind of public funding. I think it's been great-
Yeah
... to see that now the new government in Finland, for example, is supporting the kind of R&D funding, and we already have some publicly funded projects and have a very good dialogue with, for example, Business Finland to-
Mm
... sort of get an extra boost for this.
Mm.
So I think it's a good support for us as well.
Okay. And then we have a question: How happy are you with the acquisitions made in past?
Yeah, well, I can-
Mm
... start commenting that. I think, of course, we've done, in 10 years, we've done some 60 acquisitions. So obviously, I think there is a variety of, some have gone, have been, sort of, excellent, truly exceptionally good. And then always you have some which were maybe not perfect. There were some, some hassle at some point, but I think overall, on the average, I think we have a very good, good practices and, and good focus in, in the acquisitions, on the integrations, and we can be very happy. I think, sort of, this, this company has in its DNA, growth and, and also growth through M&As. So I think, overall, I, I can say that we are very happy with, with what we've done.
As the final question, it's about the long-term targets. When do you expect to reach again your long-term top-line target, 10% annually and adjusted EBITDA margin target of 12%?
Yeah. Firstly, of course, both, both remain here intact, and I, I fully believe that we have all the natural possibilities to achieve. Then, of course, maybe first starting from the EBITA margin, so naturally that's something that also... In addition to, of course, all what we are doing today and executing our strategy and all these successes, what we have and the key drivers, what we have for the profitability development. But still, of course, the market, especially the building construction market, should be picking up. So, that's pretty evident here. But then what comes to the growth, so we have, as we have been today sharing also, we have several like areas of growth here.
Or like we already know where we have the growing market segments, and we are fully focusing on those ones, so we believe that we can also get the necessary growth from there. And then, of course, okay, now, in the short term, we of course want to now improve our leverage, or like a balance sheet structure overall. But then in the midterm, naturally, the M&As will be... And Hanna said it already, they are part of our DNA and will continue to be there. So of course, then we'll continue then as well.
Okay. Thank you, and thank you, audience. This was all the questions for now, and we hope to see you again in connection of the full year results at the end of February. And now thank you, Heikki and Hanna, and you all, and have a great day!