Good day, and welcome to the Stora Enso Q1 Results Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Ula Paisinen Sainio, Head of Investor Relations. Please go ahead.
Thank you, Yerena. Good afternoon, everyone, and welcome to Storais' Q1 Results Conference Call. And I will hand this over now for our CEO, Karl Sundstrom and after him our CFO, Det Bokbaru will talk about the figures in more detail. Karl, please go ahead.
Good afternoon, good morning depending on where you are in the world. I would like to start with a very short presentation of the results and then hand over to Seppo. So we believe we delivered another solid quarter even though we are having tailwinds from the foreign exchange supporting us. Sales decreased by 3%. But if you exclude the structurally declining paper business and the divested Corenso business, we were basically we were up 3%.
And that is mainly driven by the ramp up of Montes Del Plata, which is a sign that the transformation strategy we've chosen is paying off and is also being shown in the income statement. We concluded the quarter with a 21% increase in operational EBIT ending it at €220,000,000 Net debt was unchanged compared to the end of the year, but improved versus the same period last year. And operational return on capital employed ended up at 10.1% versus 8.6. So we are moving up in profitability. We are moving up in return on capital employed and we are strengthening the balance sheet.
If you look to the different businesses, you can see here that Consumer Board continue to improve profitability and they improved their EBIT or operational EBIT by 27% based on basically 1% sales increase. And if you go to Packaging Solutions and if you exclude Corenso, which is in the numbers for last year, the sales were up slightly more than 1% and the result is flat. So the minus four here is basically coming from the Corenso that we had included in last year. Then you come to biomaterial, 35% growth and 3.5 times increase in profitability. Wood Products, which is seasonally low and we are having higher curtailment this year to avoid any channel stuffing declined by 12% in sales and 18% in EBIT.
Paper declined 8.5% in sales and decreased the profitability by 28%. But you have to remember, which is included here is a €7,000,000 provision for doubtful accounts. And then in the other, it's basically due to the companies Bergvik and Tonotor. Being in a fairly volatile environment with currencies and increasing our pulp exposure, I just want to remind you about the sensitivities that you are having on a yearly level with the impact on one, but excluding the dynamic effects that my comment and I know that Seppo will talk about later on. The Guangxi project is processing according to plan.
As you can see on this quite foggy picture taking just a few days ago, you can see the main body of the board machine where the board machine will be. Right on the board machine you can see the warehouse being built up. And next to the warehouse there are some buildings with blue roofs and that's the administration where basically the old people in Guangxi are sitting right now. So the Guangxi Board Mill Phase 1 is estimated to cost around €800,000,000 in Phase one. This is an increase of €40,000,000 due to strength in RMB.
Construction is in full speed and expected start up is mid-twenty sixteen. The investment in Imatra of the '27 that we announced a couple of quarters ago to increase the capacity by 20,000 tonnes as well as the cost effectiveness will already start to yield in September 2015. If you look on Packaging Solutions and Wood Products, the varicose conversion is going according to plan and we plan to start up in the 2015. Wooden elements that we announced last quarter, the $43,000,000 investment is expected to start up in Q2 twenty sixteen. And the Moroz sawmill in Poland is already starting up next quarter.
Montes Del Plata is now ramping up and that's one of the reason as you have seen in the numbers why we are now getting a better result supported by currency in the whole Biomaterial division. Sunilamil, we have concluded the investment in the lignin production and we will start to commercialize that in the 2015. And the Viridea acquisition and demonstration plan is going to according to plan and probably we will have the first commercial products out in two to three years. So this is for me just an explanation of the transformational investment we're doing. If you look upon the effects what you can see in the journey that we've done from 02/2006, paper is still slightly more than one third of sales, but in this quarter mainly due to price pressure as well as the provision for doubtful accounts, they are actually now below 10% of the operational EBIT, which means percent are coming from the other business and we are still doing a 21% increase versus last year.
With that, I would like
to hand over to Seppo Parnvi. Thank you, Karl. Now let's look at the summary of the financials on some key figures first. So sales for the Q1 this year came out at €2.491 that is 3% decline year on year. But you should remember and keep in mind that excluding structurally declining paper business and divestment of Corenso, sales actually came up 3%.
Operational EBITDA increased by two percentage points and was at 13.6% for the first quarter. Operational EBIT increased almost 21% year on year. Operational return on capital employed was 10.1% and net debt to last twelve months operational EBITDA was stable at 2.6 compared to end of Q4 last year. It actually decreased from 2.8% Q1 twenty fourteen to mention 2.6% this year. On the following slide, we have a bridge comparing EBIT reported for first quarter last year and EBIT for the first quarter this year.
Here I want to concentrate on the three boxes or bigger circled in the graph. First of all, foreign exchange difference or improvement on sales was €74,000,000 and offsetting that we had €10,000,000 increase in the cost due to the FX. So the net benefit was €64,000,000 and about €40,000,000 of that was CV Biomaterials division. But you see that there is a significant decrease in the local sales prices and mix €86,000,000 This is something we need to look at the combination with foreign exchange effect on sales, because you have to remember that we are primarily operating in euro and Swedish ground cost based operations. And at the same time, selling synagogue volumes in other currencies such as U.
S. Dollar, the main currency for the pulp business and British pound for instance in the paper business. And these two in combination caused material impacts on operational EBIT through price and currency movements like explained here. Euros this this year increase of about €20,000,000 compared to first quarter last year. That was about 7% of the sales.
Net debt increased since the year end 2014, mainly driven by S. Dollar having an effect through the revaluation of the debt portfolio. Then some comments on different divisions and I will start with Consumer Board, where sales increased to €569,000,000 due to higher port deliveries that's about one percentage point increase. And operational EBIT improved 27% to €79,000,000 Operational return on operating capital was 17.3% that is up from 15.7% a year ago.
And this figure remember is burdened by Guangxi project. If we exclude Guangxi, return on operating capital would have been 30%. Then next looking at the Packaging Solutions, where sales decreased to €221,000,000 and operational EBIT decreased to €26,000,000 by €4,000,000 But here you have to remember, if we take into account the effect of currency divestment, our sales figure actually increased 1.2% for Q1 versus Q1 last year and EBIT operational EBIT was flat. Operational return on operating capital was 12.9%. And just a reminder on Q2 maintenance versus we have Ostroleka mill maintenance during the quarter in Packaging Solutions division.
Then next biomaterials where we had significant increase in the sales figure almost 35% increase year on year mainly due to Montester Plaster deliveries and FX impact driven by U. S. Dollar. Operational EBIT increased also significantly from twenty one million dollars a year ago to $73,000,000 this year. And as mentioned earlier, FX impact was approximately $40,000,000 partly offset by lower U.
S. Dollar based soft wood pulp prices, which I was a bit referring earlier to bridge also how the dynamics work on the market. And higher modesty parter volumes also increased the result partly of course offset by higher depreciation of fixed costs. Of course, the MTP startup and increasing volumes was a major player for the result improvement for the quarter. And we had in the Modeste Plas the first maintenance stop during the quarter and that went well.
It went as planned and actually the total costs were slightly below the assumptions and budget for the maintenance. And operational return on operating capital was 11.4%. This is now including Montes De Plata as it has been up and running since June. We don't exclude that anymore. And maintenance in Q2, we have major stops at Veracel and Enossel during the quarter.
Then Wood Products where our sales declined 12% year on year mainly due to lower deliveries to Japanese and Middle East markets. Operational EBIT at the same time decreased by 25% and was €15,000,000 That was affected by lower production and delivery volumes related to oversupply and lack of profitable orders, But fixed costs were low at the same time. Operational return on operating capital was 11.7 percent that is down from 15.3% a year ago. Uncurred payments were 6% compared to 3% a year ago. Then look at the Paper division where our sales cash flow to sales improved to 7%.
Sales declined 9% to €940,000,000 driven by asset closures. You remember we closed in late sort of one paper machine last year and Corpe M mill in France was closed and also demand was declining somewhat. During the quarter, we also completed dispose of Utterse mill as announced earlier. Operational EBITDA decreased by 28, but here you have to keep in mind that remember that we booked out a receivable provision of €7,000,000 in the quarter. I think it was also affected by lower volumes and lower prices that were partly offset by positive foreign exchange effect.
We are very happy as you remember paper is our cash flow engine helping us to fund our investment program. And here our cash flow to sales improved from 1% to 7%, great great achievement. And maintenance in Q2, there we have activities along the Dropska Energy, Oulu, Suction and New Metal. CapEx forecast on the following page. There we have increased our guidance for the full year CapEx to $820,000,000 to €880,000,000 That is driven by the increase in CapEx in Guangxi due to the foreign exchange rate effect.
Good to remember here that even though this increase now leaving this on-site, we are well within the budget. So in that sense, project is moving ahead as planned. And also you saw the pictures Karl showed showing the progress there. Here we have to remember and keep in mind that we have sort of natural hedge in place. We have injected equity to China already in 2014, the head of the investment payments.
And if you look at the currency rates today and what their currency rates were at the time when we injected equity in China, we would actually need to put in over €100,000,000 more today to get the same amount of rent in this in currency. This is of course reflected in the equity revaluation where the total gain due to FX was about €200,000,000 half of that roughly coming from China. Also we have had good liquidity kept in China because of the same reason. And if you look at the revaluation of money market investments and cash in China that gave another benefit of €30,000,000 It's such that this hedge doesn't meet on the same lines as you can see, but the total picture looks pretty good and well managed. Then before I hand over to Karl, guidance for Q2 compared to Q1.
First of all, the sales for the Q2 we estimate to be slightly higher than the Q1 sales that was €2.491 Operational EBIT for Q2 is expected to be in line with the Q1 operational EBIT of €220,000,000 Here and here just a reminder, I already mentioned the main mills where we had to maintain in Q2, about €30,000,000 more maintenance impacts costs and effect on the sales than in Q1. Here on the page also list of those sites that already mentioned earlier in the presentation. With that, I hand over to Palve.
Thank you, Seppo. So the summary of this quarter is that the transformation is in progress and it's evident by the strong contribution from Montes del Plata and it's more to come. Sales excluding paper increased 3%, which means that the underlying business that we are investing in has continued to delivering growth. Operational EBIT increased 21% year over year. Net debt improved versus last year and operational return on capital employed reporting now over 10%.
With that, I hand over to Ulla.
Okay. Thank you, Karl. Yes. And just to remind you that we will have our Capital Markets Day in London May 28. So you are almost welcome to attend and please remember to register to that.
And now, Irena, we are ready for Q and A session. Thank you.
And we will take our first question from Antti Koskivuri, Indanske Bank. Please go ahead.
Yes. Thank you. Three questions, if I may. First from of the maintenance cost, you say now that in Q2 it will be €30,000,000 higher than in Q1. Could you give us a number?
What do you expect the delta will be in full year 2015 versus 2014? How that split will go into different quarters? Then second question on graphic paper prices. Now quick calculation implies that your average sales price came down quarter on quarter some bit less than 3%. I guess that's partly a mix issue.
But should we expect similar kind of pressure in Q2 versus Q1 assuming that part of the new prices were in place during the quarter? And then lastly about the announcement of capacity additions in European carbon board market. Could you share your thoughts how you expect these to impact the market balance in Europe in one to two years' time, I guess, when these announced projects would be finalized? Thank you.
So the first question I give to Setypu. Okay. So on the maintenance side, we don't give full year guidance. To put but put it a bit into perspective like I said maintenance is estimated to be in Q2 about €30,000,000 higher than we had in Q1. And if you then compare to previous year the difference is about €15,000,000 But it goes a bit up and down depending what mills are down etcetera.
So we are not giving like for the result also we give a guidance for the coming quarter not for the full year here. But then Alba, you take the
Yes. I'll take the paper. So I think your assumptions are for Q1 is fairly okay doing that. But when we look into the second quarter, we do believe that the prices will be fairly stable.
Okay.
And then the last one regarding the future CapEx, I will give a little bit. We have said in previous calls that 2014 and 2015 are the peak years of our investment because it's not sustainable to continue. And we have a policy that we should be around CapEx in a longer time along the area of our depreciation. So I think that gives you a bit of Actually an
my question was about the announced projects in cartonboard. It's mainly in folding boxboard. We have now two announcements of 400,000 tonne machines in Yeah.
You have the Kotka and then you have the one up in the North which is part of Metzibor in Yes. Are following that, but we are trying to understand what it means. And making conversion is not always very simple and we are following this very carefully.
Okay. Thank you very much.
Thank you. And we will take our next question from Mikael Doepel in Handelsbanken Capital. Please go ahead.
Yes. Thank you. I have two questions here. First of all, you talk a lot about Montes De Plata and the significant impact on earnings from the ramp up. And there still if you exclude the FX impact the delta is actually not that big in earnings.
So could you perhaps elaborate a little bit on what the contribution really was in terms of earnings from Monster Platine in Q1?
It's a very big part of the year over year improvement. And I also think it's important to understand when we talk about the dynamics effects on pulp between local prices that are referenced most of the times in dollar and we are not in Montes De Plata, but in the rest of the organization and not in Veracel very much as SEK or euro based. This with the local prices versus the currency is a dynamic effect.
Yeah. Yeah. In terms of the well still if you look at if you strip out the FX you have a 30 But
I don't think you can strip out the FX.
I said, yes. If you just look at the FX, you have to remember at the same time that softwood pulp prices in U. S. Dollar have been coming down during the quarter. And one major driver has been the stronger U.
S. Dollar. So taking into account the currency effect together with lower U. S. Dollar prices, actually euro prices are same or somewhat higher even than previously.
And that's the logic I was trying to explain also in the bridge earlier in my part of presentation. So you cannot look at those in isolation fully.
Sure. In terms of the volumes from Montes De Plata, when would you expect to reach the full capacity there?
So we are at a high capacity right now, but full capacity is probably towards the end of this year, because to ramp it up to a fairly high 90% to 92% takes about six months. But then to get it to 100 in the last fine tuning, it's another year. And that's what we've been saying all the time.
Okay. Good. Then the second question. You touched up on the pricing picture for paper previously. But if you look at the overall pricing and demand environment in Q2 and if you look at your other main divisions be it paper or packaging what kind of environment do you expect to see in the second quarter in terms of pricing and demand?
I think if you take pulp away, because I think pulp we need to be very careful because it's very much driven by the currency movements as well. But if you look in paper I said fairly stable prices. I would say that Consumer Board will be stable. And when I think when I look upon the containerboard, it might actually go up a little bit. And then when you take corrugated packaging, I think also can go up a little bit.
Okay. And in terms of volumes?
In the guidance, we are actually for the first time guiding increased sales despite structurally declining paper. So I think I've also answered that question for you.
Okay. And that's fair enough. Then just finally in terms of costs, what kind of cost trends are you seeing moving forward? You have some deflationary trends now in Q1. Do you expect that to continue?
We understand the whole company that we got some tailwind from the currency. And we are tracking tracking that very, very careful. So we don't think we are better than we are. Then obviously cost focus is going to continue for us.
But in general, I would say except for here, if you look at the variable cost development for instance that is rather flat. There are no strong pressures up or down.
But we need to work on it, because the worst thing is when you get the tailwind and you think you have achieved something yourself.
Yes. That's clear. Thank you very much.
No problem.
Thank you. And we will take our next question from Lars Kjellberg in Credit Suisse. Please go ahead.
Thank you. Good afternoon. A couple of questions from me. You highlighted of course that paper is now a very small portion of your operating profit. It is indeed generating a lot of cash.
Could it not be made a case here that you would actually benefit from spending some money in that business to actually improve profitability and medium to long term cash flow? If you want to share some thoughts on how you look at this business because you're now sort of distancing yourself from it to a certain degree when you comment on it. The other component I suppose when you look at FX you talked about the dynamics that's coming through in the pulp market, but there is also potentially a dynamic working the other way around. And I'm really referencing on the packaging side, what export markets in particular. And I guess also on the paper side, export market pricing is extremely good.
How what is your strategy to take advantage of that, if I take those two questions upfront?
Okay. So when looking on paper, I think it's what we are we are not distancing ourselves from it. And we really want to make sure that we have the most competitive and the best in class paper business. But it is also a challenging business per se, but it's a huge cash generator and they are doing a really good job. What we are trying to make sure in the paper business and what kind of investments we are doing, we are focusing very much on things that like energy which had short paybacks.
The other one is to make new ways of driving the operations and also segmenting better the kind of offerings we're having. So for example the investment we did in Klanschwieden with improved news because that is a segment which is we call the retailer segment which has been holding up quite well. And the office paper is holding up quite well. The newsprint due to our capacity closures has been running very high operating levels. And we are also investing in various new ways of doing business more supply chain management kind of contracts etcetera, etcetera.
So it's not that we're trying to distance ourselves from it. And I'm very proud of the paper team I have. So I hope that that answers your question.
It does. Yes. Thank you. And then in terms of maximizing the impact from the tailwind for potential exports of paper and board from Europe? So when we take
the export prices on from Europe or selling into U. K. There obviously the prices have come down a bit especially in The U. K. On low lower levels locally, but they are keeping up in euros.
And we have also seen that the export prices out of Europe the dollar based ones which is the export of European paper producer are also coming down in dollars, but it's still okay. So we are trying to make sure that we address that to keep the volumes and the utilization on a high level in the paper mills. When it comes to board paper and especially consumer board, they are holding up fairly well because it's a slightly different product. And a lot of the sales we are doing with the containerboard is mainly in Europe and less export.
Understood. If we're looking on TERCEPT, if we you had a €64,000,000 tailwind from FX, 30,000,000 sequentially. If you were to say at current FX, what would the impact be in the second quarter sequentially? And also if you can share what was the hedge impact that partially mitigated the full benefit of FX in Q1?
Yes. Well, Lars, as you know we don't guide and give details of the FX per quarter. But if you look at the sensitivities on different currencies, the key driver is of course U. S. Dollar As you saw actually on one of the slides Karl showed earlier.
So if you look at the 10% move on dollar that's €116,000,000 positive effect for us. And in Swedish krona it's negative by 82,000,000 because we are based in Sweden producing Swedish cost. British pound is €46,000,000 positive. Our hedging policy remains as also earlier that we roughly hedge about 50% of the next twelve months flow. So that is maybe it comes down a bit with the delay.
And if you look at the FX by quarter and of course there was a significant change in the U. S. Dollar against euro year on year some 20%, 22% quarter on quarter 10%. And now we saw 64% increase year on year and €30,000,000 quarter on quarter. Last year you might remember in Q3, Q4 the FX effect was in the region of 10,000,000 to €15,000,000 a quarter.
Then the rest will depend of course how it moves going forward. But it has been a single driver and of course remains so if it remains here compared to previous year.
And just to clarify your guidance is that based on some sort of continuation on the current FX rate for the second quarter?
Yeah. You can that's a fair assumption. It's with the current levels where we were end of the quarter.
Thank you.
Thank you. Our next question comes from Mikael Jas in Kepler Cheuvreux. Please go ahead.
Yes. Hello. Good afternoon, everybody. A couple of questions. First on the Warkaus new liner machine.
Do you see that that machine will fit well into the marketplace? That's the first question. Or do you see any risks around that project? And then last quarter we discussed a little bit about the potential pulp mill decision in China. Could you just sort of come back to that and say if there are any changes to the plans or not?
And then lastly, we see quite a lot of potential pulp short fiber pulp projects being announced especially in Latin America. So could you please give us your view on how you see that affecting the marketplace in a couple of years' time? Thank you.
Thank you, Mikael. And if we start with the Valkyaus, the Valkyaus is 390,000 tonnes of kraftliner. And today, we are importing somewhere between eight hundred and nine hundred thousand tonnes of kraftliner from U. S. And Asia into Europe.
And so there is a market replacing import. When it comes to the so I feel comfortable with this and with this investment. And when it comes to the if I read you right here regarding the risk, we are working hard on it, the team is dedicated and everything has been according to the time budget and the cost budget. So I feel good about it. It's really good.
And you have to remember this is an investment that basically
saved the village of Varkau. So it's a huge cooperation not only from our own employees, but from the whole society in Varkaus. Sorry, I may add. As you look at the latest U. S.
Dollar euro development and keeping in mind that a lot of this kraftliner is imported through Europe from U. S. That's actually supporting our business case.
Then about the Guangxi, our approved what we have done, we got an approval from a board machine and a pulp mill. That's what we got from the MDRC. And what we have said is that once we got the board machine up and running, which is the 2016, we will take the second phase of the investment in Guangxi to the board. And that means that construction might be able to start late twenty sixteen or early twenty seventeen. And then the last question was regarding all the mills that has been starting up.
Yes, there are a number of mills starting up in The U. S. In Latin America that will probably short term in the areas of 2016 and 2017 put a bit of pressure on the pricing. But that is always happening when you put new mills online. But you should not forget there is also coming softwood mills online within two years in the Aynokoski, the new Metzibor or the Metzolito mill.
Did that answer your questions Mikael?
Yes. Many thanks.
Thank you. Our next question comes from Linus Larsson in SEB. Please go ahead.
Yes. Thank you very much and very good afternoon to everyone. Just a couple of clarifications maybe. On the maintenance side, could you just say what the maintenance cost delta was in the first compared to the fourth quarter?
Okay. What I can say while except we're looking for that, but compared to the same period Q2 last year Q2 this year, it's €15,000,000 higher.
You mean Q1 on Sorry, Q2 versus I think, Lilis, your question was Q4 versus Q1 and that's €12000000.1200000.0 So we have €12,000,000 less in Q1 than we had in Q4 last year.
Excellent. And then on the paper side, just want to double check that we're not missing anything. Correct me if I'm wrong, but we had special items positive SEK 11,000,000 in the fourth quarter operational EBIT for paper and we have negative €7,000,000 of provision for doubtful accounts included in operational EBIT in Q1. Is that correct? Have I got
You're that absolutely correct.
Yes. So the remainder, how do you break that down? Is that entirely price currency cost? Or is there anything else? Sorry, price currency volume?
Or is there anything else that you would add to that?
I would say it is price mainly, pricedemand.
And has that been a I mean has price been a disappointment if you look now compared to what you expected three months ago?
A little bit. We expect it towards the end of Q4 when we sense the price negotiation coming up and we felt it yes. But obviously, we are not happy to take
it out for the count of $7,000,000 And in which segments have you seen that kind of disappointment? I think
it's been in some of the coated grades, but also a bit in standard news.
Okay. Great. And then on the CapEx side, were you willing to be just somewhat more precise on 2016, Given that you're increasing now in 2015, should we also increase in 2016 for the same reason or
Denis what I said is that in 2016, we are peaking in 2014 and 2015 and we will come down. And we have a longer term policy basically that we should invest the same amount in CapEx as we have in depreciation on the longer term.
Okay. All right.
Thank you. Thank you.
Thank you. Our next question comes from Oskar Lindstrom in Danske Bank. Please go ahead.
Yes. Good afternoon. I have a question which I guess is for you Karl Henrik. I mean generally these are pretty good times in the pulp and paper industry. And a peer of yours or a competitor of yours commented recently about acquisition prices in the industry being high.
I mean that's not really a problem for you since most of your growth is organic driven. But would this be a good time for you to maybe potentially divest assets or entire business lines?
There are a couple of things here. So divestiture is not I have said this publicly and I will say it again. If somebody is willing to pay me for what my paper business is worth, I'm selling tomorrow. Unfortunately, there's no buyer, okay? The other part of the portfolio I feel confident with then.
But how it is somebody is coming with a dream bid we might be able to discuss that.
All right. I mean do you see potential for individual mills or smaller parts of business areas?
I don't want to go there. But obviously, my job here is to create shareholder value. And if somebody comes with something that is so good, I have to take it and understand what it means short term versus long term for the company.
All right. Thank you very much.
Thank you.
Thank you. Our next question comes from Lars Kjellberg in Credit Suisse. Please go ahead.
Just wanted to come back to an earlier question, where you talked about conci and the pulp mill. Were you saying that you as a management team will recommend to the Board that you continue with Phase two? Is that what you said?
No. What I'm saying is that, when we got the NDRC approval, it was a pulp mill and a board machine. We put it in a different frequency. And you know the story Lars to get faster to the customer and all that. But the day we have got the pulp mill up and running that's when we go into the Phase two.
That's what I was trying to say.
And you have no particular view if you will or not or will you? Are you I'm just trying to understand because your CapEx you said you're going to come down over time to depreciation but it what you just said is that you're going to snap back up again in 2017 as you get on to Phase two. No, I
did not say that. The long term the peak years are 2014 and 2015. That's what I said. And if Yes. And
you have to remember Paul, it's a couple of years ago since we split the protein into two. It will be another year or two before we will revisit the case and that time comes to look at the partner project. So we obviously need to look at the business case, our internal needs, how the global market is, etcetera. So it's impossible to comment and answer your question now.
Thank you.
Thank you. There's currently no more questions in the queue.
Okay. Good, Irina. I think I will take over the call now. And just want to thank everybody for the good questions during the call and we will be talking to each other then when we are out with our Q2 result in July. But still in the end, Karl, do you want to say a couple of words?
No. First of all, I just want to repeat, we delivered another solid quarter supported by tailwinds in FX and the transformation journey that Storenz is on continues. We've got a lot of exciting project coming on stream already in 2015 and we've got a big board machine in China by the 2016. So thank you.
Thank you. Thank you.
Thank you. That will conclude today's conference call. Thank you for your participation. Ladies and gentlemen, you may now disconnect.