Earnings Call: Q4 2020

Feb 11, 2021

Good morning, and thank you for joining us for the presentation of Kongsberg's 4th Quarter and Preliminary Annual Accounts for 2020. I hope that you all can see and hear us clearly. As always, it is possible to ask question throughout The webcast, the questions will be answered towards the end of the cast by our CEO, Geir Heu and our group CFO, Gudev Skalberg Ingra. With that, I'll leave the floor to CEO, Geir Heu. Thank you, Jan Erik. Good morning, and welcome to everyone on the call. And then thank you for joining us for the presentation of our results. When we last met, most of us probably were hoping for that our next meeting, That is today. It would be under a little bit less strict circumstances. Unfortunately, This is not the case. But hopefully soon, we will be able to meet in person again as we did back in the good old days. In the meantime, we are looking forward to present the quarterly and as well as our preliminary annual results to you. I would like to start with some reflection of the year. 2020 has in many ways been unprecedented. We have all been affected by the ongoing pandemic crisis on many levels, And we are all looking forward to a more normal situation. But as I have told you before, Kalmsberg, We are not sitting around waiting for normal. We are working under whatever circumstances we are facing. And I must say that the entire organization has done so with impressive determination and dedication in 2020. We have been tested. We have had to make tough decisions. We have implemented several measures, and We have proven that we are able to adapt and stay agile. We have also learned a great deal. And this experience, we are taking with us going forward. So Let's look at the results. I think most of us will think Of 2020 as the year where we really experience how interconnected and interdependent we all are. Therefore, I'm equally proud of how Kongsberg has maneuvered and what we have achieved the last year. It's solid performance by all teams across the entire group. The book to bill ended up The year ended up at 1.13. This is driven by the defense with a book to bill of 1.4. Kilometers had a book to bill of NOK0.98. And I must say that Even if the book to bill is below 1, I think this is very impressive given the current market condition. We stand by our ambition that Kongsberg will continue to be a growth company, And I think we have demonstrated this in 2020. The revenue ended up at NOK 25,600,000,000, Equivalent to 10.2% growth compared to last year. This is especially driven by the defense at 7.4% growth. And in the maritime, we have 7.4% growth. In total, we have delivered an EBITDA of approximately NOK 3,300,000,000 and an EBITDA margin At 12.7 percent. This is an increase of more than 50% in 2020. This is due to a favorable project mix, but even more excellent performance by all our employees. Their adaptability, their agility and the way the entire organization has managed the COVID-nineteen situation, Also in close cooperation, of course, with our customers and partners. Another significant highlight of the year, It was is what we have achieved in the value capture program. We have realized annual savings of NOK 6.40 NOK 1,000,000. This is NOK 140,000,000 above the target we set at NOK 500,000,000 And it's also 2 years ahead of the initial plan. This has, of course, helped our financials this year and we'll continue to do so going forward. The value capture program in its current form is now concluded, But we will, of course, continue to work on other value capture and efficiency initiatives. In the year, we have also significant achievement when it comes to the digital domain. As KDI continues to roll out the dynamic digital twin with good traction on the global Shell agreement. And also in Q1, we sold Hydroid Inc. To Huntington Ingalls Industry, which is in line with our active portfolio management strategy. So based on the overall results and the strong balance sheet, the board will propose for the general assembly An ordinary dividend of NOK 3 per share and additionally NOK 5 Norwegian kroner in special dividend per share, total of NOK 8 per share. In addition, the board will propose to initiate a share buyback program up to NOK 400,000,000. So in total, the board will then propose a remuneration package of more than NOK 1,800,000,000. Nok. So I'm very satisfied with how the Year ended. But let's look closer to the quarter. We had a very solid order intake of NOK NOK 11,400,000,000. This is especially driven by the several large defense orders, which I will come back to on the next slide. So that means that we entered 2021 with a record high backlog, This gives us confidence to our growth ambition. In the quarter, we booked SEK 7,100,000,000 in revenue With an EBITDA of NOK 950,000,000 corresponding to an EBITDA margin of 13.3%. In maritime, certain segments are still challenging. Despite this, I'm pleased to see that KN deliver delivers an order intake in line with Q4 2019. And then we need to remember that, that was a quarter not affected by any pandemic. Looking at the Kilometers order intake achievements, both for the quarter as well as for the entire year in 2020, I think we must go back to 1993, which is the same year as I started in Kongsberg to see the same level of newbuild contraction. I think this saying a lot about the strong position Kilometers holds in the market. It is a solid performance allowing us to maintain our order backlog under very challenging condition. While defense and digital also are affected of the situation, these business areas has continued to ramp up during the quarter. This is to meet the project's project demands. Our activity related to the F-thirty five production And the maintenance is progressing with full force. We continue to expand production facilities in Kranzberg Technology Park, among others. And we have also launched recruitment campaigns both in Kongsberg Digital and also in Kongsberg Defense and Aerospace. Also during the quarter, we delivered our remote weapon station 20,000, and we have now 25 Countries on our customer reference list, which is a great achievement for this successful product. Then as I mentioned, I'm very pleased that we are continuing to securing contract on Both considerable size, but also strategic importance. I'd like to mention the Hungarian NASEM contract At EUR410,000,000. This is now the 12th country that has acquired Nasarps. And I think it's underlying the success of cooperation with Raytheon in the air defense market. And also, the air defense contracts are strongly supporting our ambition to grow. Delivery of Protector RVs to the mechanized infantry vehicle program to the British Army. This is the 7th delivery contract, including 2 upgrades for the British Armed Forces. So this Protector will now be integrated on the British Army's new fleet of Boxster 8 by 8 vehicles in close cooperation with Thales UK, Rheinmetall and KMW. Then we have now the 2nd close to 2nd follow on JSM contract with Japan At NOK 820,000,000. And then KLM has secured a contract with the Spanish shipbuilder, Naviente, To supply a propeller system for 5 F110 frigates, which is currently under construction for the Spanish Navy. The contract has a value of NOK 200,000,000. Then KAM Has signed has strengthened its position in the offshore wind sector with another Innovative solution for installation vessels. The contract is signed With MacGregor to deliver pile gripper guidance systems for the OHT Alpha lift, We soon will be the world's largest customer built offshore wind foundation installation vessel. And then lastly, We are very proud that we have had a breakthrough with our remote international breakthrough with a remote tower system to Spain. The Menorca Airport is going to operate with Kansberg's remote tower, which allowing us to prove our remote tower solution outside Norway. So if we dive deeper into our business, none should be surprised that there has been uncertainties in some markets. As Kongsberg is a global company, we are affected by the ongoing restriction in travel. But at the same time, Our global setup and remote support solutions is enabling us to solve our customers' demands locally. Konigsberg Maritime is continuing to improve its profitability. This is partly driven by increased focus on project performance and also a good project mix. Also, the continued Cost focus and value capture program has strengthened Kilometers' competitiveness as well as the financial robustness. In addition, we have also already realized SEK 700,000,000 in cost sales from our Combined portfolio between Kilometers and CN. And I'm really excited about what Kilometers will accomplish as we progress further with our product harmonization program, which is ongoing. Kugs for Defense and Aerospace ended up a year on a very high note, driven results for the group. In defense as well as in maritime, we benefit from a favorable project mix. It's a strong cost focus and continued Solid performance in all divisions. Also, we are continuing to scale up as we are working to deliver on already robust order backlog, as mentioned when talking about the highlights in the quarter. Then we are also continuing to strengthen our footprint within maintenance, repair and overall, the MRO market. Entering this was a strategic priority for us, and I think this will become increasingly more important to us in the years to come. I think this is also emphasized by the opening of the F-thirty 5 Motor Engine depot at Rigge. This is one of 5 planned maintenance, repair and overall and upgrade facilities worldwide for the F-thirty 5 engine. Customer Digital has impressed me this quarter and also this year. With its ability to maintain and strengthen customer dialogue under the circumstances, constantly exploring ways of interacting with both customers and partners, utilizing Konspers developed digital tools as well as others. We are also chasing new opportunities as we see interest The increased interest for remote and digital services. And here, I would like to mention our real time drilling monitoring tool, the Sitecom, And also the e learning solution, Kaysim Connect. And by that, I think I will leave The floor for Gerrit to take us through some details of the financials. Thank you, Geir, and Good morning, everyone. Thank you for listening in to Kongsberg this morning. Another year and another 4th quarter. Today, I will start with the order intake during 2020. After entering into 2020 With a record high order backlog last year, Kongsberg has continued with a strong order intake through All the quarters in 2020. We ended 2020 with the order intake of SEK 28,800,000,000 And a book to build for 2020 of 1,100,000,000. With that intake, We increased our order backlog with NOK 3,600,000,000 and entering 2021 with an order backlog of approximately NOK 36,000,000,000. In addition, we have several large framework agreements on the fence. Out of this order backlog, SEK 18,000,000,000 are scheduled for deliveries Already this year. If we compare that with last year, we had only secured SEK 16,700,000,000 when we started 2020. On top of the SEK 18,000,000,000 for 2021, we also normally delivers around SEK 7,000,000,000 in global customer support, And we have the recurring revenue in Kongsberg Digital. So even with the uncertainty we experienced today in the maritime market, We believe that Kongsberg will grow also in 2021. Kongsberg Digital had an order intake of NOK 1,000,000,000 Last year, 2020, as earlier, all we report on Kongsberg Digital is external orders from external customers. If we look a bit more into the order intake and what happened last year. On the screen now, you can see the split in order intake during 2020. I have not comment on this during this year, so I will give you a bit more details this time. For maritime, you can see that aftermarket or global customer support still is of high importance to us, particularly in periods when the newbuild market is at such low levels as we see now. There are also limited of orders that we count into our order backlog. Looking at the segments or vessel types that you see here, This provide proves the diversity that we have in Kongsberg Maritime today. Also want to point out that the orders received from Offshore also includes offshore wind, where we see several opportunities at the moment. Offshore wind has a good fit With both the value proposition and the product offering that we have in maritime today. In the segment for For production units, you will find deliveries to typically Johan Sverdrup and other installations on the Norwegian continental shelf. In the pie here, you can also see others. In others, you will find our other underwater vehicles, typically the Huggins. If we look at the defense on the right side, on the chart here, the air defense or the NASAM has And the main driver for our significant order intake this year with our recently signed order with Hungary. Further, our Land division, which with the remote weapon stations, was the 2nd largest Contributor. And as Geir mentioned, we have reached a milestone in Q4 when we delivered the remote weapon station number 20,000. Missiles continue to grow. And over the next couple of years, we expect that, that will be the area That we will continue to grow and increase its relatively share of KDA's order intake. And Just to remind you, the margin on the missiles area are a bit lower than on some of the other areas. In other, typically, it has been comms and also defense communication. Revenue growth and increased profitability. I think that sums up the last year. 2019 was a year with significant growth for Kongsberg. And in 2020, we continue to grow and we ended the revenue With a revenue growth of 10%. All our business area has had a growth last year: defense with 17%, Maritime with 7% and digital with 3%. Digital was affected by the legacy business Maritime simulation that was hit by COVID-nineteen, but recurring revenue in digital ended at 35% for 2020, And we see positive development for SaaS revenues. Maritime started the year with growth but ended on a declining revenue trend year on year, and I will come back to that later. For 2020, we deliver, as Kael said, an EBITDA of euros 2,250,000,000 with a margin of 12.7% compared to 9.1% last year. All business areas have contributed to an increased EBITDA. Scale, positive COVID-nineteen effects, Successful value capture program and a favorable project mix on the defense side are the main drivers for increased EBITDA this year. To add a couple of more specific effects, Kongsberg has over the 18 last months put more focus on sourcing of indirect spend. And we are now able to measure more concrete effects or saving effects on that program. Included in the figures for 2020 It's also worth mentioning that we also have booked and paid out a bonus to all our employees due to strong financials And as an alternative to social gatherings that was put on hold last year. EBIT on EUR 1,900,000,000 With the gain from the sale of Hydroid of NOK 1,500,000,000 after tax, Kongsberg delivers NOK 2 €900,000,000 in earnings after tax for 2020, a significant growth in the earnings last year. If you look into the Q4 of order intake and margins, you can see another strong quarter, An order intake of €11,400,000,000 with a book to build of €1,59,000,000 Main drivers for the order intake have been the 3 large defense Contract in the quarter, NASAMS Hungary, U. K. Infantiary Vehicle Program and the JSM Japan. Together, those three orders count for 44% of the order intake in the Q4. Most impressing is still Maybe the maritime with a flat year on year development and a slight increase from Q3 despite a very challenging market. Q4 had revenue decrease isolated on 10% compared to last year. Maritime had a decline of 18% this quarter, explained by overall lower activity and a weak newbuild market. Defense continued to grow and increased the top line by 6%, while digital grew by 3%, driven by the digital twin rollout. A milestone this quarter was the EBITDA for the group, €948,000,000 And if we add on the associates in the EBITDA, as we have reported It until the Q3 last year. We delivered more than EUR 1,000,000,000 in EBITDA in a quarter isolated. That's the first time. Cash flow. Ending 2020 with SEK 7,400,000,000 in cash, An increase of almost SEK 2,000,000,000 during 2020. As you can see, the main Contribution has been from operational cash flow and the sale of Hydroid, while main use has been Dividend to COGS by shareholders and repayment of a bond COGS 10. Approximately 2 €700,000,000 of the cash that we have at the end of the year is prepayment from our customers. Net working capital. In terms of COVID, it has been important to monitor the development in the working capital during 20 20. As I comment last summer, our focus after March last year was on 3 KPIs: daily cash control, Outstanding on trade receivables and the quality in the order backlog. Looking at the development in the working capital here. The cash conversion and the increased profitability during 2020, this focus has been important. Before the acquisition of Commercial Marine, Kongsbergmariten was on a higher level in regarding working capital. It was actually up to 15 Percent and sometimes 16%, 17%. With combining the 2 companies, the average working capital Level came down. And after a small increase this year after COVID, we will aim to lower it again to around levels around 8%. And I don't think I need to comment either on the defense or on the digital. The digital is quite flat on working capital. And as you can see, because of the prepayments, we still have a very healthy working capital on the defense side. Kongsberg Maritime. Let's look at some details here. Isolated for the Q4 year on year, we have a flat Order intake in maritime and somewhat up from the Q3. Maritime still has a healthy order backlog Entering into 2021 with an order backlog of €11,400,000,000 with a book to bill in 2020 of €0.98 €8,300,000,000 of the next year's top line is secured. And on top of this, we normally have, as I said, Orders from our global customer support area of approximately €7,000,000,000 If we look 1 year back, we have Today, a better order backlog for deliveries in 2021 than we had last year. During 2020, We experienced very few cancellations, and those came already in the Q1 last year. So no cancellations have been received the last half year of twenty twenty. Given the order backlog and the diverse Maritime segments we operate in, we are slightly positive that we will continue to deliver according to the volumes we have seen The last two quarters in maritime. But as Gerd mentioned, very well positioned when the market activities start to increase again. Maritime has a decline in revenue with 18% compared to the Q4 last year, But it's up from the 3rd quarter. And revenue in Q4 are approximately EUR 200,000,000 Lower than in Q1, but it's €600,000,000 higher than both in the second quarter and in the third quarter, with a positive Development on global customer support towards the end of the year. We see that from having Well, on temporary leave during the Q2, there are now only a few left on temporary leave. We have developed new solutions for remote services and are increasing the deliveries month by month with new ways to work. But to see growth again during 2021, We need new orders either in the newbuild market or a number of larger projects in the aftermarket, typically for retrofit or upgrades. EBITDA in the Q4 of EUR 464,000,000 That is actually all time high reported from Kongsberg Maritime. Lower revenues are offset by improved gross profit margin And lower OpEx is largely explained by reduced integration and restructuring costs, value capture measures and COVID-nineteen related Cost savings. So then the value capture program, a really success story. The value capture program was launched 1st January 2019 and has come to an end, 2 years ahead of the schedule. The program has realized savings this quarter for NOK 195,000,000 and in total NOK 640,000,000 Over the last two years compared to a 2018 baseline cost base. There are counted All these numbers are counting on annual basis, which means that we will see full time benefits from that program also in 2021. The restructuring of DKKA machinery have been a real turnaround and has contributed heavy during the last year in this program. From 2021, we will not report on the value capture program, but we'll continue with different efficiency initiative To increase our competitive advantage in a leaner and more competitive maritime business area. Typically, that will be sourcing, Continue product harmonization and optimize the new normal with more digital and remote services. Then have a look at the defense area. Order intake of EUR 11,900,000,000 this year with a book Book to build of NOK 1.40. Isolated for the Q4, a significant increase from last year with an order intake of NOK 7,300,000,000 We now have an order backlog of NOK 23,500,000,000 in the defense area. Out of that order backlog, 38% will be delivered this year, meaning that we already have secured €9,000,000,000 on next year's top line in defense. This is €2,000,000,000 higher than the secured deliveries at the beginning of 2020. Looking at the revenue growth. Revenue in the Q4 of €2,600,000,000 with a growth of 6% year on year, largely driven by high activity on NESM's Qatar, higher cross deliveries and the growth on the F-thirty five volumes. EBITDA margin of in the Q4 of 9.6% is in line with the full year EBITDA margin of 19.5%. EBITDA is €68,000,000 higher than the Q4 last year, and the EBITDA margin is up with 1.6%, driven mainly by increased revenue and gross profit in addition to scaling of OpEx. Then something that we'd not often comment that much. If you look at the associated companies, our 2 main contributors as The associated companies are Korsat and Patria. Both of them had a very strong year in 2020. Quosat also achieved a milestone last year and delivered more than €1,000,000,000 in revenue. One of the main drivers for growth are the increase in satellite passes. During 2020, the satellite passes increased with more than 10,000 For CorSoat, looking at the EBITDA margin on 41%, looking quite impressive. You also need to remember that this This is a very CapEx heavy business. Last year, Korsat invested EUR 250,000,000 back into the business. Regarding Patria, we have been running a close to GAAP program together with our co owner in Finland for the last 18 months. The combination of this cost efficiency program combined with very strong Q4 lifted the EBIT in Patria at the end of last year. And last but not at least, Geir has already provided you with the good news. And according to our capital allocation principles and our dividend policy, the Board, in combination of dividends, special dividend and share buyback, We'll propose to return SEK 1,800,000,000 to our shareholders. If accepted, you can see the key dates on the screen here now. Thank you so much. So back to our business update to Gerd. Thank you, Gerd. Then Let's have a look at the outlook. I think as previously stated, our solid Order backlog gives us predictability and grounds for optimism for the future. This is despite global uncertainty in the market where we operate. At the very start of my presentation, I said that We have been tested, both our systems and the organization. At this yes, our measure has proven to be efficient, and we have confirmed our scalability, And we have embraced new ways of working. We have also seen willingness and ability in the market to adapt to the situation. And we believe that this, combined with the transition to more sustainable solution and energy sources, will affect investment level going forward. This provides opportunities both in the markets where Kongsberg already has strong foothold and in new markets where our technology will be a part of the solution. In the maritime, the market are still partly very challenging with very few newbuild vessels being contracted. This is a trend we expect will continue in 2021. At the same time, the mentioned quest for more sustainable solution We'll have a positive effect going forward. In the defense, I expect continued growth as our operations are running close to normal levels and our significant order backlog provides a solid fundament. Of course, we are prepared for possibilities of delays in our supply chain, and some program negotiation might be also somewhat delayed given the situation. I think in digital, we have gained good traction with our dynamic digital twin as well as for our recurring business models. No doubt that Our investments in digital products and servicing are paying off. As the current circumstances are highlighted are highlighting the need for and the strength of such solution. So in general, 2020 has accelerated and underlined the importance of safety, sustainability and digitalization in all our industries. Kongsberg has deep domain knowledge, world leading technologies, technology solutions and strong industrial position in all these areas. So that makes me very confident for the future as our foundation has never been stronger. By that, thank you so far. Then I will ask Kiri to join me again, and we Then we have a couple of questions from the webcast. The first couple of questions are from Mr. David Barker in Bank of America. You had 0.88 book bill in Kanspa Maritime in Q4. Do you think you will be able to sustain a book bill above 1% in 2021? We there is still uncertainties in the market. And as we said, we believe that the newbuild contracting will The challenging also in 2021. As Keri said in her Presentation, we to have a growth here, we need to see more activities on the project sites on Aftermarket particularly. But our, let's say, feeling right now is that we should be able To stay on the same level as we have been for 2020. I think we are well adapted for the current market condition in constant maritime. And of course, I believe that we are also well positioned for a possible upgrade. And That is particularly related to Sustainable Solutions and also, of course, other fuel resources or energy resources. That could be And then another question from Mr. Barker. You had a large order for NASAMS in November last year. What is the outlook for NASAMS in 2021? Do you have any major contracts in negotiations negotiation that we should expect? Then I think I will I'll repeat what our Head of the Kansper Defense and Aerospace Business Area said during our Capital Market Day in November. We believe that we should be able to secure 3 to 5 NASAMS contract in the next years to come. Obviously, that was before Hungary, so you have to deduct 1 from that numbers. But we are in a very strong position Within ASMs, and we have a good hope to continue to secure important contracts in that segment going forward. And the final question from Mr. Barker is, do you plan to do any other major disposals in 2021? And does choice towards buyback and special dividends rule out any medium or large scale M and A cases in 2021? I think if we look back now, taking 12 months back and forth together, We are returning €4,000,000,000 to our shareholders. And this will be this is a proposal For the General Assembly in May, so it's not planned anymore this year. And in terms of M and A, I can I assure you that we have dived into a lot of companies over the last year, but we always look for opportunities in that area? And then I have a couple of questions from Kenneth Sivertsen, Pareto. Congratulations, what an impressive year. Would you have believed a record high backlog could be secured during the COVID-nineteen pandemic? And two questions on top of that. Cost improvements of SEK 195,000,000, would that be the run rate going into 2021? But of course, now we have been running a very, very strong value capture program, And we are always looking on new opportunities on that. And as I said, we are running now a more tight sourcing program. We are still having some product Harmonization to do. But I think this will be quite hard to then Go with this run rate. But as you know, you never know how the world will develop on uncertainty times. We need to have On the cost all the time. And of course, there are always an opportunity after COVID-nineteen with the new normal to see how you can do Things in a better way with lower cost. So we have focused on it. But to guide on any cost reduction quite specific, We will not do it right now. I think if I may add, I think very much depends on Development of the pandemic and how the world will open up readily. Of course, there will be some costs coming back. But obviously, as I said in my presentation, we have learned a lot during this last year. And our goal is, of course, to Bring that with us going forward also when it comes to the cost control. Thank you. And second question from Mr. Sieversen. You mentioned that KDI includes inorganic growth. Do you have any specific Areas in KDI that needs to be strengthened or broadened, preferably by acquisitions, to broaden scope? I think KDI has really, let's say, made their foundations more solid in 2020. But there is now, let's say, we need to scale further scale up. And of course, we have Our platform here, we have some tools and the digital twin is in place. But we need to speed up, for example, application development. And that we do as we speak with organic growth. But of course, if the right opportunity is there. We will definitely consider that to further and faster speed up, Particularly within the application side. Thank you. And I have a couple of more questions from the web. First, can you share any news with regards to the Qatar vehicle program with us? I think you also mentioned that during the Capital Market Day, and I have also mentioned it in the earlier quarters, The program has also been affected by the COVID-nineteen situation. We had to bring people home From the ground in Qatar, we are now back with people in Qatar. The dialogue is reopened. And We will see. This is a huge program, and we are, as I say, positive for the Go in discussions, and then we will have to see the timing of when something can be concluded with the Qatari and government. Another question on the defense side. With regards to Kansper Defense and Aerospace, you mentioned missiles would represent a larger share of revenues going forward. And this being a lower margin business than other areas, is it fair to assume lower EBITDA margins for KDA going forward. The goals that we have in 2020 for the defense area For 2022, it's lower than the margin that they actually are delivering today. So It does what I try to say is that we are not seeing any increase in the margins up From the level that we are now and the project mix that we have on deliveries for the defense area There will always be a guidance on how the margins will develop there. And as you can see, it's just Japan that's had ordered the JSM Missile. But heading over, we think that we will increase those portions of orders in our order backlog. And then as they are increasing, they have put more pressure on those high margins that we see today. So I think it's fair to say that up from 9.5 percent EBITDA margin is hard for the defense area When the missiles are having a larger portion of the order backlog. And so on the project mix, if we That will be remain Sussie. Okay. Final question from the webcast. There are several companies experiencing significant supply disruptions currently. Have Kongsberg experienced any of those? 1 of the first after make sure that our employees was safe during their working hours. I I think that was one of the first thing that we addressed when the lockdown come. That was to really go into our supply chain and see For alternatives in case something happen. We have not experienced major Supply chain that has been affected by the COVID-nineteen so far. There has been some incident, but we have managed to deal with them. So but we are on the alert, and that is something that we're really monitoring both in the Defense area, also in the civilian side, we are continuously working with our supply chain to make sure that we are robust In case something are delayed or not able to be delivered. Probably a higher Or a more challenge for us is the older travel restrictions that we have on all our service engineering, especially on The maritime side, but also on the defense side, to be able to travel around and monitor all the projects and the Rapid change in the travel restrictions is a challenge. But so far, we have handled it quite good. Thank you. That was the final question from the webcast. Then once again, thank you for joining us today, and we look forward to see you Next time, hopefully in person. Thank you.