Good day. 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 Ulla Paajanen-Sainio, Head of Investor Relations. Please go ahead.
Thank you, Lena. Good afternoon, everyone. Welcome to Stora Enso's Q1 result conference call. I will hand this over now for our CEO, Kalle Sundström, and after him, our CFO, Seppo Parvi, will talk about the figures in more detail. Kalle, 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. We believe we delivered another solid quarter, even though we are having tailwinds from the foreign exchange supporting us. Sales decreased by 3%. If you exclude the structured declining paper business and the divested Corenso business, we were up 3%. 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 it's also being shown in the income statement. We concluded the quarter with a 21% increase in operational EBIT, ending it at EUR 220 million. Net debt was unchanged compared to the end of the year, but improved versus the same period last year.
Operational return on capital employed ended up at 10.1 versus 8.6. We are moving up in profitability, we are moving up in return on capital employed, and we are strengthening the balance sheets. If you look to the different businesses, you can see here that Consumer Board continue to improve profitability. They improve their EBIT or operational EBIT by 27% based on basically 1% sales increase. 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%. The result is flat. The minus four here is basically coming from the Corenso that we had included in last year. You come to Biomaterials, 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%. You have to remember, which is included here, is a EUR 7 million provision for doubtful accounts. In the other, it's basically due to the companies Bergvik and Tornator. 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 might come, and that 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 taken just a few days ago, you can see the main body of where the board machine will be. Right on the board machine, you can see the warehouse being built up. Next to the warehouse, there are some buildings with blue roofs, and that's the administration where basically all people in Guangxi are sitting right now. The Guangxi board mill phase 1 is estimated to cost around EUR 800 million in phase 1. This is an increase of EUR 40 million due to strength in RMB. Construction is in full speed, and expected startup is mid-2016. The investment in Imatra of the 27 that we announced a couple of quarters ago to increase the capacity by 20,000 tons, as well as the cost effectiveness, will already start to yield in September 2015.
If you look on Packaging Solutions and Wood Products, the Varkaus conversion is going according to plan, and we plan to start up in the fourth quarter of 2015. The wooden elements that we announced last quarter, the EUR 43 million investment, is expected to start up in Q2 2016. The Murów sawmill in Poland is already starting up next quarter. Montes del Plata is now ramping up, and that's one of the reasons, as you have seen in the numbers, why we are now getting a better result supported by currency in the whole Biomaterials division. Sunila Mill, we have concluded the investment in the lignin production, and we will start to commercialize that in the second half of 2015. The Virdia, the acquisition and demonstration plan is going according to plan, and probably we will have the first commercial products out in 2 to 3 years.
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 2006, paper is still slightly more than a third of sales. 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 that 92% are coming from the other business. We are still doing a 21% increase versus last year. With that, I would like to hand over to Seppo Parvi.
Thank you, Karl. Let's look at the summary of the financials and some key figures first. Sales for the Q1 this year came out at EUR 2,491 million. That is 3% decline year-over-year. You should remember, keep in mind that excluding structurally declining paper business and divestment of Corenso, sales actually came up 3%. Operational EBITDA increased by 2 percentage points and was at 13.6% for the first quarter. Operational EBIT increased almost 21% year-over-year. Operational return on capital employed was 10.1%, and net debt to last 12 months operational EBITDA was stable at 2.6 compared to end of Q4 last year. It actually decreased from 2.8, Q1 2014, 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 figures circled in the graph. First of all, foreign exchange difference or improvement on sales was EUR 74 million, and offsetting that we had EUR 10 million increase in the cost due to the FX. The net benefit was EUR 64 million. About EUR 40 million of that was seen in Biomaterials division. You see that there is a significant decrease in the local sales prices and mix, EUR 86 million. 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 krona cost-based operations. At the same time, selling significant volumes in other currencies such as US dollar in the main currency for the pulp business and British pound, for instance, in the paper business.
These two in combination cause material impacts on operational EBIT through price and currency movements like explained here. Euros this year increase of about EUR 20 million compared to first quarter last year. That was about 7% of the sales. Net debt increased since the year-end 2014, mainly driven by stronger US dollar having an effect through the revaluation of the debt portfolio. Some comments on different divisions, I will start with Consumer Board. Their sales increased to EUR 569 million due to higher board deliveries. That's about 1 percentage point increase. Operational EBIT improved 27% to EUR 79 million. Operational return on operating capital was 17.3%. That is up from 15.7% a year ago. This figure, remember, is burdened by Guangxi project. If we exclude Guangxi, return on operating capital would have been 30%.
Next, looking at the Packaging Solutions, their sales decreased to EUR 221 million and operational EBIT decreased to EUR 26 million by EUR 4 million. Here you have to remember that if we take into account the effect of Corenso divestment, our sales figure actually increased 1.2% for the Q1 versus Q1 last year, operational EBIT was flat. Operational return on operating capital was 12.9%. Just a reminder here on Q2 maintenance works that we have Ostrołęka mill maintenance during the quarter in Packaging Solutions division. Next, Biomaterials, where we have significant increase in the sales figure, almost 35% increase year-over-year, mainly due to Montes del Plata deliveries and FX impact driven by US dollar. Operational EBIT increased also significantly from EUR 21 million a year ago to EUR 73 million this year.
As mentioned earlier, FX impact was approximately EUR 40 million, partly offset by lower U.S. dollar-based softwood pulp prices. I was a bit referring earlier in the bridge also how the dynamics work on the market. Higher Montes del Plata volumes also increased the result, partly of course offset by higher depreciation of fixed costs. Of course, the MdP startup and increasing volumes was a major player for the result improvement for the quarter. We had in the Montes del Plata 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. Operational return on operating capital was 11.4%, and this is now including Montes del Plata. As it has been up and running since June last year, we don't exclude that anymore.
Maintenance in Q2, we have major stops at Veracel and Enocell during the quarter. Wood Products, where our sales declined 12% year-over-year, mainly due to lower deliveries to Japanese and Middle East markets. Operational EBIT at the same time decreased by 25% and was EUR 15 million. That was affected by lower production and delivery volumes related to oversupply and lack of predictable orders. Fixed costs were low at the same time. Operational return on operating capital was 11.7%. That is downfall from 15.3% a year ago. Gear payments were 6% compared to 3% a year ago. Look at the paper division, where our cash flow to sales improved to 7%. Sales declined 9% to EUR 914 million, driven by asset closures. You remember we closed in Veitsiluoto one paper machine last year, and Corbehem mill in France was closed.
Also demand was declining somewhat. During the quarter, we also completed disposal of Hylte mill, as announced earlier. Operational EBITDA decreased by 28%, here you have to keep in mind and remember that we booked doubtful receivable provision of EUR 7 million 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 achievement. Maintenance in Q2, there we have activities at Langerbrugge, Anjala, Oulu, Sachsen and Nymölla. CapEx forecast on the following page. There we have increased our guidance for the full year CapEx to EUR 820 million-EUR 880 million.
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. In that sense, project is moving ahead as planned. Also you saw the pictures Kalle 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 2014 ahead of the investment payments. 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 EUR 100 million more today to get the same amount of renminbis in currency.
This is of course reflected in the equity valuation, where the total gain due to FX was about EUR 200 million, half of that roughly coming from China. We have had good liquidity kept in China because of the same reason. If you look at the valuation of money market investments and cash in China, that gave another benefit of EUR 30 million. It is just that this hedge does not meet on the same lines, as you can see, but the total picture looks pretty good and well managed. Before I hand over to Kalle, 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 EUR 2,491 million. Operational EBIT for Q2 is expected to be in line with the Q1 operational EBIT of EUR 220 million.
Here just a reminder, I already mentioned the main mills where we have the maintenance in Q2. About EUR 30 million more maintenance impacts costs and effect on the sales than in Q1. Here on the page there also list of those sites that I already mentioned earlier in the presentation. With that, I hand over to Kalle.
Thank you, Seppo. The summary of this quarter is that the transformation is in progress, and it is evident by the strong contribution from Montes del Plata, and it is more to come. Sales excluding paper increased 3%, which means that the underlying business that we are investing in is 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, Kalle. Yes, just to remind you that we will have our Capital Markets Day in London 28th of May. You are all most welcome to attend and please remember to register to that. Now, Irena, we are ready for Q&A session.
Thank you.
Thank you.
If you would like to ask a question at this time, please press star or asterisk key followed by the digit one on your telephone. Please ensure that the mute function on your telephone is switched off to allow your signal to reach our equipment. Again, please press star one to ask a question. We will take our first question from Antti Koskivuori in Danske Bank. Please go ahead.
Yes. Thank you. Three questions if I may. First one, of the maintenance cost, you say now that in Q2 it will be EUR 30 million 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? The 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? Lastly, about the announcement of capacity additions in European carton 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.
The first question I give to Seppo.
Okay. On the maintenance, we don't give full year guidance. Put it a bit into perspective, like I said, maintenance is estimated to be in Q2 about EUR 30 million higher than we had in Q1. If you then compare to previous year, the difference is about EUR 15 million. It goes a bit up and down depending what mills are down, et cetera.
Like for the result also, we give a guidance for the coming quarter, not for the full year.
Okay.
Kalle, you take the-
Yeah, I take the paper. I think your assumptions for Q1 is fairly okay doing that.
When we look into the second quarter, we do believe that the prices will be fairly stable.
Okay.
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 is not sustainable to continue. We have a policy that we should be around CapEx in the longer time along the area of our depreciation. I think that gives you a bit of a indication.
Actually, my question was about the announced projects in carton board, is mainly in folding boxboard. We have now two announcements of 400,000-ton machines in Sweden. Yeah.
You have the Kotka. Then you have the one up in the north, which is part of Metsä Board. In Husum.
Yes.
We are following that. We are trying to understand what it means. Making conversion is not always very simple. We are following this very carefully.
Okay. Thank you very much.
Thank you. 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 del 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. Could you perhaps elaborate a little bit on what the contribution really was in terms of earnings from Montes del Plata in Q1?
It's a very big part of the year-over-year improvement. 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 U.S. dollar, and we are not in Montes del Plata, but in the rest of the organization, and not in
Very much it's SEK or euro-based. This with the local prices versus the currency is a dynamic effect.
Yeah. In terms of the Well, still, if you strip out the FX, you have EUR 13 million-
I don't think you can strip out the FX.
Seppo, yeah. If you just look at the FX, you have to remember at the same time that softwood pulp prices in US dollar have been coming down during the quarter, and one major driver has been the stronger US dollar. Taking into account the currency effect together with lower US dollar prices, actually euro prices are same or somewhat higher even than previously. That's the logic I was trying to explain also in the bridge earlier in my part of the presentation. You cannot look at those in isolation fully.
Sure. In terms of the volumes from Montes del Plata, when would you expect to reach the full capacity there?
We are at a high capacity right now, full capacity is probably towards the end of this year because to ramp it up to a fairly high 90%-92% takes about six months. To get it to 100 in the last fine-tuning, it's another year. That's what we've been saying all the time.
Okay, good. 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.
Sure.
If you look in Paper, I said fairly stable prices. I would say that consumer board will be stable, and when I look upon the containerboard, it might actually go up a little bit. When you take corrugated packaging, I think also can go up a little bit.
Okay. In terms of volumes?
In the guidance, we are actually for the first time guiding increased sales despite structured declining paper.
I think I've also answered that question for you.
Okay. That's fair enough. 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. We are tracking that very careful. We don't think we are better than we are. Obviously, cost focus is going to continue for us. In general, I would say, Seppo here, if you look at the variable cost development for business, that is rather flat. There are no strong pressures up or down. We need to work on it because the worst thing is when you get the tailwind and you think you have achieved something yourself.
Yeah. That's clear. Thank you very much.
No problem.
Thank you. 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 there 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.
There is also potentially a dynamic working the other way around, and I'm really referencing on the packaging side where export markets in particular, and I guess also on the paper side, export market pricing is extremely good. What is your strategy to take advantage of that? If I take those two questions up front.
Okay. When looking on paper, I think we are not distancing ourselves from it. We really want to make sure that we have the most competitive and the best-in-class paper business. 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 like energy, which have 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. For example, the investment we did in Kvarnsveden with the improved news, because that is a segment which we call the retailer segment, which has been holding up quite well. Office paper is holding up quite well.
The newsprint, due to our capacity closures, has been running very high operating levels. We are also investing in various new ways of doing business, more supply chain management kind of contracts, et cetera. It's not that we're trying to distance ourselves from it, and I'm very proud of the paper team I have. I hope that answers your question.
It does, yeah. Thank you. In terms of maximizing the impact from the tailwind for potential exports of paper and board from Europe?
When we take the export prices from Europe or selling into U.K., they're obviously, the prices have come down a bit, especially in the U.K. on lower levels locally, but they are keeping up in EUR. We have also seen that the export prices out of Europe, the U.S. dollar-based ones, which is the export of European paper producer, are also coming down in USD, but it's still okay. 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 to Seppo. You had a EUR 64 million tailwind from FX, EUR 30 million sequentially. If you were to say at current FX, what would the impact be in the second quarter sequentially? Also, if you can share what was the hedge impact that partially mitigated the full benefit of FX in Q1?
Yeah. Lars, as you know, we don't guide and give details of the FX per quarter. 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 Kalle showed earlier. If you look at the 10% move on U.S. dollar, that's EUR 160 million positive effect for us. In SEK, it's negative by SEK 82 because we are based in Sweden, producing with Swedish cost. Now, GBP 46 million positive. Our hedging policy remains as also earlier that we roughly hedge about 50% of the next 12 months flow. That means it comes down a bit with the delay. If you look at the FX per quarter, and of course, there was a significant change in the U.S.
USD against EUR, year-on-year, some 20%-22%, quarter-on-quarter 10%. Now we saw a EUR 64 million increase year-on-year and EUR 30 million quarter-on-quarter. Last year, you might remember in Q3, Q4, the FX effect was in the region of EUR 10 million-EUR 15 million a quarter. The rest will depend, of course, how it moves going forward. It has been a significant driver of course it remains so if it remains here compared to previous year.
Just to clarify your guidance, is that based on some sort of continuation on the current FX rate for the second quarter?
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 Jåfs in Kepler Cheuvreux. Please go ahead.
Yes, hello. Good afternoon, everybody. A couple of questions. First on the Varkaus new liner machine. Do you see that that machine will fit well into the marketplace? That's the first question. Do you see any risks around that project? 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? Lastly, we see quite a lot of potential short fiber pulp projects being announced, especially in Latin America. 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. If we start with the Varkaus. The Varkaus is 390,000 tons of kraftliner. Today we are importing somewhere between 800,000 and 900,000 tons of kraftliner from U.S. and Asia into Europe. There is a market replacing import. I feel comfortable with this investment. If I read you right here regarding the risk, we are working hard on it, but the team is dedicated and everything has been according to the time budget and the cost budget. I feel good about it. It's really good. You have to remember, this is an investment that basically saved the village of Varkaus. It's a huge cooperation, not only from our own employees, but from the whole society in Varkaus.
Sorry, if I may add, actually, if you look at the latest U.S. dollar, euro development, and keeping in mind that a lot of this kraftliner is imported to Europe from U.S., that's actually supporting our business case.
About the Guangxi. What we have done, we got an approval from a board machine and a pulp mill. That's what we got from the NDRC. What we have said is that once we got the board machine up and running, which is the middle of 2016, we will take the second phase of the investment in Guangxi to the board. That means that construction might be able to start late 2016 or early 2017. The last question was regarding all the mills that has been starting up. Yes, there are a number of mills starting up in Latin America that will probably short term in the areas of 2016 and 2017 put a bit of pressure on the pricing. That is always happening when you put new mills online.
You should not forget there is also coming softwood mills online within two years in the Äänekoski, the new Metsä Board or the Metsä Fibre mill. Did that answer your question, Mikael?
Yes. Many thanks.
Thank you. Our next question comes from Linus Larsson in SEB. Please go ahead.
Thank you very much. A 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 Seppo looking for that, compared to the same period Q2 last year and Q2 this year, it's EUR 15 million higher.
You mean Q1 on-
Sorry, Q2 versus I think, Linus, your question was Q4 versus Q1, that's-
Correct
12 million, one, two. We had 12 million less in Q1 than we had in Q4 last year.
Excellent. On the paper side, just want to double-check that we're not missing anything. Correct me if I'm wrong, we had special items positive EUR 11 million in the fourth quarter operational EBIT for paper, we have negative EUR 7 million of provision for doubtful accounts included in operational EBIT in Q1. Is that correct? Have I got that right?
You are absolutely correct.
Yeah. The remainder, how do you break that down? Is that entirely price currency cost, is there anything else? Sorry, price currency volume, is there anything else that you would add to that?
I would say it is price mainly. Price/demand.
Has price been a disappointment if you look now compared to what you expected three months ago?
A little bit. We expected towards the end of Q4 when we sensed the price negotiation coming up, we felt it, yes. Obviously, we are not happy to take a doubtful account of EUR 7 million.
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. 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?
Linus, what I said is that in 2016, we are peaking in 2014 and 2015.
We will come down. 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.
Yeah. All right. Thank you.
Thank you.
Thank you. Our next question comes from Oskar Lindström in Danske Bank. Please go ahead.
Yes, good afternoon. I have a question, which I guess is for you, Karl-Henrik Sundström. Generally, these are pretty good times in the pulp and paper industry. A peer of yours or a competitor of yours commented recently about acquisition prices in the industry being high. That's not really a problem for you since most of your growth is organic driven, would this be a good time for you to maybe potentially divest assets or entire business lines?
There is a couple of things here. Divesture is not. I have said this publicly, and I will say it again. If somebody's 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. How it is, somebody is coming with a dream bid, we might be able to discuss that.
All right. Do you see potential for individual mills or smaller parts of business areas?
I don't want to go there, obviously, my job here is to create shareholder value. 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 Guangxi and the pulp mill. Were you saying that you as a management team will recommend to the board that you continue with phase 2? 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. The day we have got the pulp mill up and running, that's when we go into the phase 2. That's what I was trying to say.
You have no particular view if you will or not, or will you? I am just trying to understand, because your CapEx, you said you are going to come down over time to depreciation.
Yes.
What you just said is that you are going to snap back up again in 2017 as you get on the phase 2.
No, I did not say that. The long term, the peak years are 2014 and 2015. That is what I said.
You have to remember also, it is a couple years ago since we split the project into two. It will be another year or two before we will revisit the case.
Yes.
At that time, comes to look at the pulp mill project. We obviously need to look at the business case.
Yes.
Our internal needs, how the global market is, et cetera. It's impossible to comment.
Yes
It's impossible to answer your question now.
Understood. Thank you.
Thank you. There is currently no more questions in the queue.
Okay, good, Irena. I think I will take over the call now. 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. Still in the end, Kalle, do you want to say a couple 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 Stora Enso is on continues. We got a lot of exciting project coming on stream already in 2015, we got a big board machine in China by the middle of 2016. Thank you.
Okay. Thank you.
Thank you. That will conclude this conference call. Thank you for your participation, ladies and gentlemen. You may now disconnect.