Earnings Call: Q2 2018

Jul 19, 2018

Good morning, everyone, and welcome to Wartsila Half Year Financial Report 20 presentation. I have here this morning with me the whole Board of Management and Natalia Waltasari, the Head of Investor and Media Relations. So everyone is here ready to answer all the questions you might have. The good momentum in order intake continued in the during the second quarter. I'm extremely happy to see the development of the order intake in services. We have a strong support from our customers for the long term agreements. Also Marine Solutions order intake was a highlight of this quarter. If you look at some of the important most important figures, order intake in a group wise was 14% higher. Net sales stable, a bit lower on the Q2, but if you take the 1st 6 months, a bit higher. I will come back to the development of the net sales in different divisions. Book to bill very high, result at stable compared to last year. And earnings per share a bit higher. Cash flow now developing to the right And it's great to see the order book at the end of the period is almost €6,000,000,000 so over €800,000,000 more than previously. If you look at the different divisions, really services long term agreement development is driving the growth in services. In addition to that one, there is a lot of retrofitting scrubbers in our business. Marine Solutions, the same. The scrubber business is developing well. And Energy Solutions, stable. Last year, we had a good number and now it's stable. But if I when we go through Energy Solutions later on, you can see the quotation activity is very positive. Net sales, stable and services. Here, it's good to remember that FX impact negative FX impact. If you correct that one in the second quarter, we had a 3% increase in net sales and on during the 1st 6 months, it's 5% increase just according to our plans. Marine Solutions 2nd quarter a bit up and then What is actually affecting the net sales of the group in the first the second quarter and the 1st 6 months is the timing of our Energy Solutions project. So some of the projects have moved from the second quarter, hopefully the Q3 and so that development will be later on corrected. Service is now 48% of the net sales and energy a bit higher than marine. Booktubill, very nice development. And if you look at the order book distribution, of course, the last 6 months of this year, delivery schedules are going to be higher than in the 1st 6 months. So of course, Typically for Wartsila, again, the Q4 is going to be a very important for us. Operating results stable. And when moving to the different divisions, services sales as I said, FX impact, with that one correctly there is a growth. And when you look at the distribution in different businesses or product areas first, spare parts is still a bit less than 50%. We are driving, of course, that heavily. Agreements, 22% now. That's very good because the agreements support the long term growth also in our services business. Power plants, a bit lower than previously. There might be some slower developments in our nuclear power plant business services not nuclear power plants, but supporting the nuclear power plants with our engines. And then you see, of course, cruise is growing at the moment, cruise and ferry a bit. Installed base now development on energy side. And One of the highlights in the Q2 was actually a good deal with Transocean, one of the biggest offshore company, where we will optimize the maintenance of all Wartsila thrusters installed on Transocean's fleet. That's a very performance based agreement and really again is a good combination of the new digital development within the services organization. Energy Quotation activity, again up, a lot of gas, LNG fueled power plants. And the order intake is stable. There is a very clear trend when you look at the gas driven power plants going forward. And when you look at the different areas, Asia is very active. And one of the highlight here on second quarter was a power plant in Myanmar. It's a gas fueled 145 Megawatt Power Plant. Now we have sold power plants to 178 countries. So one country added to the previous number. And this is a fast track project, so should be operational already during the Q1 next year. This is a bit older number, but we have reached the 21% market share. And that's of course because the development of renewable story globally. Marine Solutions, June 62 vessels. But if you look at the 1st 6 months, there is a growth in vessel contracting. So there is a positive momentum going on now in the marine market in quite many segments. For us, of course, still good development on cruise and ferries and gas carriers. And when you look at the different development on the segments traditional merchant is now up. That's probably and mainly because of the scrubber orders we have seen there. But cruise and ferry is still playing also quite important role and the gas carriers. One of the highlight is the scrubber business today €170,000,000 order for hybrid gas cleaning equipment for one of our customers. This is a retrofit. So this is actually a services transaction, but it actually highlights that a lot of these scrubbers are going to the market at the moment. A couple of slides regarding the financial cash flow developing on the 2nd quarter now better and the 1st 6 months stable development. Here I have to mention that one of the reason for the development of the cash flow is the working capital development. We are building inventories at the moment for heavy deliveries during the last 6 months of this year. Gearing a bit up because of the latest transaction acquisition we bought Transas, €0.29 now. And the prospects, we have now changed and raised the prospect in marine solutions. So it used to be solid. Now it looks good because we see positive momentum in the marine market. With these, I end this presentation and now we are of course ready for the questions and answers. And As we started last already last time that please ask one question only and then one follow-up question. And then if you need something more, then please come back to the line later on, but so we can have the possibility for everybody to ask questions. Anybody here in the audience? Here in Helsinki? No. And why don't we go directly to the lines please? Thank you. We will now begin the question and answer session. We have questions that come from the line of Sven Weier. Please ask your question. Yes. Thank you for taking my questions. The first question would be on the spare parts business, which overall didn't show any major improvement in the quarter. But I was just wondering if you could comment a little bit about the momentum in the quarter, if you saw any improvement towards the end of the quarter or anything you could tell us about that? That would be question number 1. Thank you. Thank you, Sven. And Here, Paolo, you see daily how that develops. So let us know more about the momentum. Well, what we can say is that, 1st of all, excluding The negative impact of the €68,000,000 we have seen as Jaakko has mentioned, we have a growth of 5% that we have forecasted or we have planned for this year. The orders that we have received in the previous year were related to mainly to long term agreement. And in order to recognize the long terms agreement. According to the IFRS 15, the standard revenue recognition is based on cost accumulation. So that, let's say, may delays our revenue recognition compared to previous approach. On the merchant, we have still slower activities compared to what we expected. In what it is good is that during the Q2, especially on merchant and specifically on the 2 strokes, the order intake and the sales on parts were higher compared to quarter 1, and that is a positive indication, especially in June. And this is the reason why we expect to recovery this segment, good recovery during the second half of the year. Thank you, Piappa. So the momentum is getting now better. But also partly you see it in offshore. In offshore, the bleeding has stopped. The bleeding has stopped. Thank you for that. And that's actually leading to my follow-up question because if I look at the order intake in Marine, I can see a bit of a pickup in the offshore order intake. On the other hand, a bit of a slowdown in cruise. I mean, I'm conscious of the lumpiness here and conscious of the fact what you said that I guess there are still like 100 cruise ships where they haven't placed the engine order. So should we see a stronger second half than in the cruise orders again? That would be the follow-up. Thanks. Thanks, Sven. And Roger, I mean, I'll let you to answer the I mean, you know what's going on in cruise specifically. Yes. Thank you. If we look at the cruise, If I start from vessel contracting, it's continuing as expected, I would say. We had 13 vessel new vessel contracts for cruise vessels during the first half of the year. We don't see a slowdown on cruise at the moment. As we have said before, it's fairly long delivery time and all yard capacity is in full use, so you have to wait a long time for the vessels. But from an activity point of view, it's more the normal quarterly differences. And some of the cruise ships are now getting also a little bit smaller and you build expedition cruises. Expedition cruises and that has actually been a fairly active vessel contracting ordering for the first half of the year as well going more to special segments and that we also expect to continue. Good. So in a way that backlog of this 100 cruise ships is getting bigger at the moment? Yes. You can say so. There is no indication that we would see that, that would go down at the moment. Thank you. Your next question comes from the line of Max Yates. Please ask your question. Thank you. Just my first question is around trying to understand the sort of profitability development in the quarter. We obviously talked last year a lot about management provisions for incentive programs. That looks like it was $18,000,000 tailwind in the quarter. I'm just trying to understand sort of where that went, what the major offsets were in the business and whether it is just purely the spare parts development. Because if you look at spare parts in Q2, they were actually flat year on year. So there's not an obvious discrepancy there. So is there anything else going on in the business which can help explain what has eroded the reversal of what looks like quite a significant tailwind from management provision? Thank you for the question. Yes, There are a couple of items. We are still spending money in our digital development. That's going on and will continue to be That was €3,000,000, right? In the first In the first In the first In the first In the first digital? The first probably, yes. That's around the right number. And because of the higher activities in the businesses, specifically also in I mean, as you see in energy sector, we have been investing in new resources. So we have new people in the organization and that's of course the department costs are also higher. Okay. And maybe my follow-up question would just be around FSRUs. And obviously, that was quite a healthy sort of order segment for you last year in 2017. I think there have been fewer of those orders. But just trying to understand the pipeline of orders there for SSRUs because obviously that can have quite a significant bearing on the gas carrier segment that you report and potentially overall marine. So just if you could give a bit of color around what you're seeing there, that would Thank you. Roger, would you If I start from the gas carriers, we have 42 gas carrier orders year to date now from a contracting point of view. So we're already higher than last year in total. But FSRUs, we have had clearly less activities at the beginning of this year, because there are still FSRUs in the pipeline that don't have a final contract. So at least we expect that those needs to come in place before we will start to more activities on FSRU. So good activities on gas carriers. In general, FSRU is so far beginning of this year slower than last year. Okay. Thank you. Thank you. Thank you. Your next question comes from the line of Johan Eliason. Yes. I was just wondering about how the scrubber orders will turn into revenues. So you announced a big order in the service side. Is that all for next year? And then on the newbuild side, can you quantify how much scrubbers were of the new build orders, whether they have the same magnitude services or we're talking a smaller number there? And are they later on? Thanks. Thank you. First of all, if Marine customer orders scrubber for the new buildings, that's of course deliveries are later on and depending on the ship building schedule. The retrofitting is a business which is mainly going to affect our numbers next year 2020, so the next couple of years. Not so much yet this year. I don't think the timing is I mean, it's too quickly coming the year end. And the numbers, marine side, we sold 41 scrubbers and services 68. Okay. Thank you very much. Thank you very much. And your next question comes from the line of Manuel Rimpel. Please ask your question. Thank you. I would like to follow-up on the margin developments. I mean, as previously stated the impact from the increased investments into digitalization was NOK 3,000,000 and that still leaves a pretty big gap. And you explained the GAAP compared to last year's result with the increased investments in energy solutions. So Are we talking about more than SEK 10,000,000 of increase in investment into people and back office and different functions in the Energy Solutions, which sounds like a fairly sizable number. Or is there still something else which is kind of burdening the margin the previous year, like the mix impact in services as well. Thank you, Manu. Marco Virena, our CFO, wanted to add some highlight to the question. Yes. Thank you for the question, Manu. If you just look Q2, we can see that volume actually had a negative impact on our EBIT as well. And that was quite a big number in if you take that from gross margin, so drop through the EBIT is actually double digit. Then of course, just like Jaakko mentioned, the department cost. And of course, we will have heavy deliveries on an increase in deliveries in Energy Solutions. So we've seen an increase in engineering cost and that's coming in Q2 as well. And then actually R and D, as I mentioned in Q1 already, we have a little bit tilted distribution of the full year R and D cost towards the H1. So we will have a lower number in H2 compared to H1. So in Q2, R and D costs were €6,000,000 higher compared to a year ago. So I hope this gives a little bit more flavor on but on the other hand, I would say also that the positive thing is that gross margins were a little bit higher in Q2 this year compared to last year. So we see the improvement in margins going up. Okay. And then let's follow-up on that. So I mean, can you help us to think around then the seasonality as we know that you are very much Q4 heavy in terms of the profits and the first half of the year accounts on 35% of the full year profitability. So will we then see even higher than normal SKU towards the second half of the year given that the first half of the year, you are lagging still behind what you delivered or slightly up compared to what you delivered in 20 And if you include all the long term investment incentive provisions, you're actually behind. So help us understand how to think about the seasonality. Thank you, Manoj. I'm not going to start guiding quarters. As I said, the last 6 months are going to be important for us and definitely the Q4. It's also how the development in services is going on. We strongly believe when looking at the markets there will be the mix of services is important and the growth of services in the next month. So that will all that will definitely help the numbers for the year. Thank you. Thank you. Your next question comes from the line of Francis Cusselin. Please ask your question. Thank you. I would like to talk about the scrubbers. Can you just state the number of retrofit scrubbers in Q1 and Q2 combined. 108,000,000. 108,000,000 totally. 60,000,000 the quarter, 68,000,000 the second quarter for retrofits. Okay. And how should we think of this? Alfa Laval has spoken about 5,000 ships to be retrofitted overall. Over what time period do you think this should happen, many years Of course, now it's important to understand that this regulation comes into force 2020. So everybody is aiming for that one. That's the starting point. So that's why next year is going to be very important. For order intake is, of course, this year and then next year to retrofit them. Of course, if you don't get the slot or you don't get the scrubber, you can switch to diesel and do it later or then scrap your ship and build a LNG driven ship. So but the main high. I mean, like the momentum is this year and next year. Okay. And what do you think what is your feel of Wartsila market share in the scrubber business today? The biggest players are Wartsila and Alfa Laval. Then there are a couple of smaller players also in the market. There are some companies who have their own even their own scrubber manufacturing. I don't really know if we know today. This has developed also very quickly during the last couple of months. So but I would like to say that we are the market leader at the moment. Yes, everybody is agreeing with me here in Helsinki. So should we say 40% market share for that? 40% margin? No, not yet. Market share 30%? Yes. Let's get back to that one in January, then we know exactly where we are into 2018 or we were. Okay. Thank you. Thank you. And your next question comes from the line of Sean Mokwauben. Please ask your question. Good morning. Thank you. Just a follow-up from the previous question. If I can understand how you think about your capacity to deliver scrubbers? Are you now already sold out for next year, how are you thinking about maybe prioritizing resource internally to ultimately allow you to deliver this very high number of customers that seem to be coming your way for very quick delivery? Thank you. Thank you. It's a very good question. And of course, we are paying a lot of attention how to solve and service our customers. And of course, I mean, we rely a lot to our sub suppliers and we have been working with them heavily to be able to sell first of all and then deliver. Our own service organization is, of course, there to help when we are doing the final retrofitting on board of the vessel. So every possible ways have been utilized and we are studying new ways also to service them better. We have not it's not yet sold out for next year. So there is a possibility. And of course, the customers who come first, they will be served 1st. And as the gentleman here also said, it's developing quite well at the moment. But it's a challenge. I mean, you had a good question. It's a challenge to it was ramped up quite quickly. But We were waiting for that one. So we already knew that it's the customers will be there. And a follow-up, if I may. Just to understand, what percentage of this order intake is just for the equipment? And what percentage is the equipment plus the installation? Of course, the Marine 41 is only equipment there is that will be installed at the shipyard. And the 68 in the second quarter or over 100 for the 1st 6 months in services, That's a I mean, can you Those are including some engineering. There is injection, commissioning, but it's not homogeneous, let's say. So it's not possible to start breaking it up. Okay. Thank you. Thank you. And your next question comes from the line of Edward Maravanyika. Please ask your question. Good morning, Jakob. So most of my scrubberish questions have been asked. But just the €170,000,000 is all of that tied into the €68,000,000 or Does the €170,000,000 not cover the entire CPA? €194,000,000 1 $94,000,000 is 2nd quarter in I missed the first spot, sorry, the line with black. Sorry, I Was it the 2nd quarter or the first half year you were asking about? For Q2, so if I look at the €170,000,000 order that you announced, does that relate Is that all the 60H Q2? No, no. No, no. That's a one deal. That's a one deal retrofitted deal with one customer. Okay. So how many scrubbers were in that €170,000,000 order? Do you remember, Hammad? Yes, I know. But 56. 56,000,000 is the number. 66,000,000. 56,000,000. 56,000,000. 56,000,000. Okay, 5, 6. So if we wanted to do a sort of an average cost scrubber, How much of the No, no, no, no. That's a retrofitting. That's a value of the transaction. So that includes engineering, installation and all kinds of scrubbers. First of all, the size of the scrubbers are different, first of all. And the second, the scrubbers Three different size of scrubbers and ore imports. And then the type of, let's say, scope of supply is different. So we cannot homogenize. If we cannot take all the scrubbers and divide the money by the scrubbers, it would give a very, very wrong assumption. Okay. All right. Okay. Fine. Can you put and as a follow-up, can you put a capacity utilization number in terms of your scrubber work at the moment? No, no, it's not possible. No, Sub suppliers. All right. Okay. But if the current order rate continued for the next 3, 4 quarters, you would be able to keep your delivery times safe? Yes. Okay. All right. Thank you. Thank you. Thank you very much. And your next question comes from the line of Tommy Rialoa. Please ask your question. Good morning. This is Tommy from SEB. A little bit on the M and A theme, a couple of larger possible deals have been gone elsewhere. What's your current thoughts on that side? Yes, I don't know. Thanks, Tommy, for the question. I don't know what you mean elsewhere. But We have analyzed, of course, I mean, we look at all the possible candidates in the market and we have analyzed those companies also and look at the possibility what it would mean to Wartsila and conclude it's not for us. Just a follow-up, is it on the price or quality? Are you happy with your current portfolio without this? There is all kinds of reasons. I mean, you have to add all them together. Thank you. Thank you. And your next question comes from the line of Robert Davies. Please ask your question. Hello? Hello? Can you hear me? Yes. Now we can hear you, please. Yes. Thank you. Thanks for taking my question. My question was on the Energy Solutions business, whether you could give us a little bit more color in terms of the regional developments. So what customers are saying into the various regions and what your expectations are for the back half of the year, if you could? Thanks. Thank you. Javier, now please Tell us more about that region. Excellent. Thank you for the good question. I mean, the growth that we are experiencing in the last years continues and that's very diverse globally. So that is one of the key strengths of Barcelona. Jako was mentioning that This quarter, we were contracting a new country, an order in Myanmar, a new country for Barcelona and a new country that is opening up for more flexible solutions, thinking in a future with more renewables. I'd like to highlight that there is no single country in the planet that is not aware that renewables are coming. So renewables are coming. They need flexibility. That means flexible engines, energy storage, the full integration package. So a very quick answer would be everywhere, and we really see growth everywhere. The last 2 years plus, we have seen Asia being the one growing most. That will continue. I mean, Asia will continue growing the most due to the development of economies there and also due to the leapfrog that countries are making jumping from old fashioned technologies, inflexible and stiff technologies that don't enable solar and wind to more flexibility. And that's why we see Indonesia, we see Bangladesh, we see many countries now. Myanmar, we have seen not in Asia, but in Australia going to down under compared to here Helsinki. I mean, we are we had our first big order ever with 2 11 megawatts announced in the Q1 of this year. So we see that development everywhere. If I give the top 3, it will be Asia, United States and probably between Middle East and Africa, the 3 places. I said 4, but And Senegal was 1 high also. So Africa is developing well. Exactly. Senegal is investing in renewable future is I mean, we know that the sun the big sunny solar irradiation belt is impacting heavily in Africa. So there is an enormous potential for solar electricity, for solar energy being extremely affordable. And we as Barzilah, not only because we are very present in Africa through our services and long term agreements, but because we have the technologies that enable solar to be destructible and to be reliable. And that's why, as you said, Jaco, Senegal was one of the highlights of this quarter in which they go full fledged for renewables. So they adopt the Barcelona Smartener Division and they come with us with engines, storage, software and all our EPC and services possibilities. So but I said, Asia, U. S. And the third one, Middle East and Africa. Okay, great. And then my follow-up was just, I wonder if you could make a comment about how you see the potential risk from trade tariffs as obviously various companies are starting to sort of mention. I just wondered, what are your thoughts in terms of implications for Alfa Laval over the next year or so? So, first of all, I mean, globally, I mean, if you look at Wartsila, the uncertainty in the market is, of course, is a concern. And it's but it hasn't developed, I mean, not in energy market yet customers are investing. Customers are buying vessels as you see from the vessel contracting. Some of our customers in marine markets specifically are probably only exercising the most necessary service job. So there you probably see some a bit hesitation. But of course, if you would see a trade war global trade war that would definitely affect to everybody's business. Okay. That's great. Thanks very much. Thank you. Thank you very much. And your next question comes from the line of Peter Reilly. Please ask the question. Good morning. Sorry to come back to the scrubber business, but can you talk about how the market for retrofit is going to look in 2020, 21 last year, but do you expect to rush next year and then the market essentially dies because people will either have retrofitted or they won't? Or do you think it all depends on where the relative price of high sulfur and low Hello? We lost Now he has to go back to the line or how does it work? Just get back up. And your next question comes from the line of Glen Leidy. Please ask the question. For the Energy division, can you give us an idea of what's happening to pricing? And what is the split between sort of power plants that are going to facilities where it's connected to renewables and how that's developed? Okay. Glenn, thank you. I can ask the first question. The pricing is going up and that has been a very positive trend in our energy business. Do you want to, Javier, continue with on with connecting to the renewables? Because both questions are very connected. And as Thiago mentioned, we see every quarter and every month the profitability of the pricing environment is getting better. And this is coming because the complexity of the grids and the complexity of the solutions is getting bigger. And this is something that in the energy market is already known during the last more than 3 years that the complexity is getting higher and higher when the solar and wind and more intermittent sources are coming into the grid. That is answering part of your question. So the more renewables you have into the grid or into the whole ecosystem of assets, then the more complexity you need to solve. And that is really the strength of ArcelorMittal and that is the know how we have with our smart solutions. We can put them all together with a software platform. We can construct them. We can service them. And When we talk about grids where there is no renewable jet, and I linked to the previous question we got from another colleague, that renewables are coming even if they are not here today. Countries need to invest today in assets that will last 30, 40 years. So and they need to have plans for renewables to come and for that reason the solutions need to be ready to adopt and to integrate intermittent sources of power. So even those places in which there are not renewables, solutions need to be ready for them to be welcomed because this is a transition that is accelerating everywhere. Okay. And a question on the service business. You have seen an improvement in the proportion of your installed base covered by long term contracts. I know it will be lumpy, but are there larger potential contracts in the pipeline? Because clearly, as the percentage of your installed base that grows, getting a small contract isn't going to make much of a difference. But Are there still large customers that you're engaged with that could enter into long term contracts? Thank you, Glenn. Excellent questions. The answer is yes, but I will let Pierre Paolo to open it up a bit. The answer is yes, definitely. And let's say, we hope to announce very soon something interesting. The second comment is related to a number of installation that is leading to what you exactly were mentioning. So the number of installations have increased visibly also from the previous quarter from 829 to 864, not including the 200 installation locomotives on which we have, let's say, a good maintenance agreement that we have published during this quarter. So having the same comparing Apple with apples is 8.29 against 8.64. So number of installation is higher. Power density is lower, so it is also in accordance with the trend of our industry. So the installations are becoming, And your next question comes from the line of Erkki Peszola. It's Erkki from Endres. So you're talking about Energy Solutions projects having been moved from Q2 to Q3, maybe Q4. Could you give us any kind of ballpark figure how big the impact was? And was there anything exceptional in this performance? Erke, thank you for the question. I'm not going to start talking about the exact numbers there. I mean, it's a timing issue all the time in our energy business, how the delivery finally will be then recorded in our figures. No exception. There's no drama. I mean, it's I mean, how the month ends then unfortunately, if it's not yet there, then it moves to the next month and so on? So we talk about this as usual very much? It's as usual. This is business as This is lumpy business, isn't it? Yes, I know. Okay. Thanks. Thank you. Thank you very much. And your next question comes from the line of Mark Seif. Please ask your question. Just a quick follow-up. So on in the Power business, if we go back sort of 3 or 4 years ago, there was a lot of around emerging market currencies, the uncertainty that, that causes a lot of your emerging market customers and it was at a time where quotations were still very good, but you were still unable to actually book the orders. So I just wanted to check whether some of the emerging market currency volatility that we're seeing at the moment is having any impact on customer conversations and sentiment. And I know the quotation still look good in the presentation, but that was also the case 3, 4 years ago when we also heard about this. So any color you can give around any effect that that's having on customers or perhaps not would be helpful? Thank you. Thank you, Max. And no, it's we don't see it yet. Of course, I mean, if the depending on the development, let's come back to that one. But today, No changes. We are present in so many countries. I mean that we I mean if you have 1 or 2 cases of countries that are overheated. I mean, you don't see any effect on the business side. And in developing world, quite often, the more question is on financing, how to get the financing in place. These some of the projects are so long anyway. I mean, you know that we are negotiating one process sometimes meant for many years. And of course, depending on the global situation, then it will be closed or not. Okay. And maybe just one follow-up on El Salvador. Are you able to give us sort of any update as time goes on when that may fall? Are we thinking sort of back end of this year? Or does it look more like 2019 now? Javier? I mean, definitely. Wonderful question. All the signals so that should be a contact that should happen still of this year. But as said, we have a big pipeline of projects. We have a very strong business going on. So we are pretty confident with all the targets for this year. And if it happens, will be great. But still the figures of this year are going to be as we would have suspected. So El Salvador is not in our minds. It will happen, and it will be a great addition too. Exactly. If it happens this year, there's an upside. Okay. Thank you very much. Thank you. Thank you very much. And your next question comes from the line of Ben Weier. Please ask your question. Yes. Just two quick follow ups, if I may. The first one is following up with Javier because you sound as excited as ever I have to say, but obviously the obvious question is why do you leave now? Thank you, Sven for the question and Javier that's You answer. Should we take a private line? I mean, definitely, I'm super excited, Sven. I mean, super excited about the Barcela business, Barcela growth, our vision, how things are moving, the team we have, the business that is happening. So growth is going to continue. And indeed, as you have seen in the last 3 years, we have entered into solar business. We have entered into energy storage business, we have acquired the biggest software integration platform to integrate any assets. So we have created our Smart Energy division going to 100% renewables. And one of the key in all this integration is that we are pretty technology agnostic in all these new technologies like solar, wind storage. And indeed, as you have seen, I'm moving to be the CEO of a new energy storage company. The time sure that we'll be still very close to Barcelona, and we will still work. And I will I mean, the good thing is that I'm not leaving. I mean, still several months here. And the transition is going to be very smooth. And indeed, all the Barcelona vision, all the Barcelona DNAs is coming to that new company. So be aware of that. Okay. And the other follow-up was just a quick housekeeping again, sorry, on the scrubbers because I appreciate the number of scrubbers, but I was more curious about the number of vessels, right? Because I guess the alpha figure, 5,000 is a vessel figure, not a scrubber figure. So the 108 retrofits, how many vessels are those approximately? Do we no, we don't have the answer at the moment. Let's get back to that one, Sven. We need to dig deeper in. But sad to say that at least the bigger vessels have several scrubbers, right? Yes, depending on the vessel, yes. Yes. If it needs more power, then of course you have more than 1. Okay. Thank you. Thank you. Thank you very much. And your next question comes from the line of Johan Eliason. Please ask your question. Just a follow-up here on the services. You said 5% organic growth now in the first half and then your target is 5% for the full year. Now with all these scrubbers coming, I mean, just this $170,000,000 order is sort of 7% last year's turnover in the service business, do you think you will exceed this 5% organic growth target next year when all these installations are supposed to be done? And what will that in that case do to the average margin of the service business? Thanks. Thank you. Now, I mean, questions I'm not going to answer exactly. Let's get back to next year development in January how the year looks like. But as said earlier, most of the retrofitting new orders, service orders will actually affect next year's numbers, not yet this year's numbers. And the margin levels, I think it's a good business today, whatever that means. Okay. Thank you. Thank you. All right. So no more questions. Thank you all. Very good questions. And have a nice summer. And let's see us then again in October.