Welcome to the Alfa Laval Quarter 3 Earnings Call. At this time, all participants are in a listen only mode. Following the presentation, there will be a question and answer session. I must advise you this conference is being recorded today on 28th October 2014. I would now like to hand over to your speaker today, Mr.
Lars Wrenstrom. Please go ahead, sir. Thank you
very much, and good morning, and most welcome to our presentation. I will start by highlighting 3 matters. Firstly, order intake in the quarter reached a new record level of SEK9.7 billion and year on year the growth was 31%. The recently acquired Frank Moon AS had a very strong quarter and contributed with 1,500,000,000 And we are pleased to be able to state that we expect demand in the 4th quarter to remain on about the same high level. Secondly, a one time charge of CAD260 1,000,000 was booked for a cost reduction program that during the Q4 2015 will give annualized savings of $300,000,000 Finally, sales increased by 29% and the operating result of CAD 1 SEK1.55 billion was the best quarter in more than 5 years.
The result of the financial items increased by 16%, excluding the one time charge for the cost reduction program. Now we move over to the key figures. There you see that orders received rose 31% to SEK9.7 billion. Net sales grew 29 percent to 9,300,000,000. Adjusted EBITDA increased 29 percent to $1,550,000,000 and adjusted EBITA 18% to DKK26.2 billion, net sales increased 15 percent to 24,300,000,000 and adjusted EBITDA grew 13% to 4,000,000,000 adjusted EBITDA margin reached 16.3%.
Moving over to orders received. There you see that we reached on rolling 12 months RMB34.7 billion and the increase year on year was 26%. On the next slide, you see at the order analysis that year on year acquisitions contributed with 20% and organic growth was up 5.7 percentage units. Currency effects were 5.2%, giving a total of 31%. Sequentially, acquisitions contributed with 10 with The EBITA margin reached 16.7% and the operating result of SEK 1 0.55 billion is the Fed quarter in more than 5 years.
And now we move over to the highlights in the quarter. In Process Technology, we booked an order for air heat exchangers to a natural gas liquid export terminal in
the U. S.
We booked a similar order in the previous quarter, We also booked an order through a Korean EPC contract for the Middle East and an order for an Indian refinery. In Marine and Diesel, we booked 2 very large and one for an oil drilling platform off the Canadian Coast. Demand for pure SOX continued to be good and we booked 8 systems for 6 ships. Since the commercial launch 2012, we have booked 58 systems for 51 ships. And now we continue with the development per segment.
In the quarter, we had 6% organic growth year on year and you see that all segments in Marine and Diesel Division grew, while it was a mixed picture in Process Technology and Equipment. We are very pleased that organic growth for service was up 6% with all 3 service segments contributing.
Let's take a closer
look at the development per division. And now all comments are sequential and we start with equipment. Following the all time high in the previous quarter, all capital sales segments declined, while service was unchanged. Industrial equipment was down due to lower activity in areas requiring refrigeration products. Sanitary was negatively affected by dairy and the resulting effects from the sanctions against Russia.
OEMs saw weaker demand from the air condition industry following a relatively cool summer in parts of Europe. Let's move over Marine and Offshore Systems dropped due to non repeat large boiler orders. We are pleased to see that pleased to see the good development for exhaust gas cleaning systems and we have recently launched the 2nd generation. Marine and Offshore Pumping Systems had an excellent quarter boosted by 2 large offshore orders. Now we move over to Process Technology.
In Energy and Process, oil and gas did very well, while refinery and petrochemicals declined, resulting in an unchanged order intake. Food and Life Science grew, boosted by brewery as well as Life Science and Renewable Resources. Resources. In Europe, current investment cycles are coming to an end and that caused a minor decline in water and waste. Moving over to the next slide.
Year to date, you see that all marine and diesel segments have been growing, the equipment segments have been stable or growing, while we see a modest decline in the capital sales segments of Process Technology. However, service has grown very well. And now we continue with the geographical developments. There you see that year on year North America has grown with 47%, boosted by investments in oil and gas production, refinery and and industry and the acquisition of Frank Moon AS. Western Europe and Nordic have had a moderate growth.
Center and Eastern Europe has held up well despite the conflict around Ukraine. And Latin America has declined 20% due to lower activity at Petronas and lower demand for raw materials impacting the Latin American Economies. Now we take a closer look at the development per region and now all comments are sequential and we start with Asia. Excluding Frank Moon, orders declined slightly due to non repeat large projects, but base orders and service did very well. It's interesting to note that China saw a broad based positive development driven by base business and marine.
However, a wait and see mode caused delays in the decisions for large projects. Moving over to Europe. Western Europe and countermeasures in Russia as well as lower demand from emerging markets. Central and Eastern Europe showed the same pattern as Western Europe with fewer large orders and the decline in base business. In Russia, there were fewer large projects, but base business performed surprisingly well.
Customers that rely on public funding are doing well, but those depending on private funding have some difficulties. Moving over to Americas. In North America, we had continued good growth driven by large orders in oil and gas, exploration and production, while base business was unchanged. Water and waste did well, thanks to good activity in municipal wastewater. In Latin America, we declined as Brazil saw fewer large orders, but base business in Brazil was still up.
Food volumes were also lower in the region. On the positive side, we booked oil and gas orders in Peru and Mexico. Next slide. Year to date, Asia stands out boosted by Marine and the acquisition of Frank Moon and North America is boosted by oil and gas exploration and production. Western Europe has developed well, thanks to some large orders and exhaust gas cleaning.
In Central and Eastern Europe, we see the impact from Russia and Turkey since all other markets have had good growth. And the decline in Latin America comes entirely from Brazil. All other markets have delivered growth. And now come to the next slide. There you see the top 10 markets in 2013.
The green bar is whole year 2013 and the yellow bar is last 12 months. There you see that the U. S. Continues to grow, thanks to an acquisition and oil and gas. China is boosted by traditional shipbuilding, oil and gas offshore and the acquisition of Frank The decline in Russia is 15% and the same goes for Brazil.
Adriatic and Benelux are boosted by large orders. And now I hand over to Thomas for the financials.
Good morning all of you. Let's move right into the sales as Lars has covered orders received in-depth. In the quarter, we realized sales of $9,300,000,000 an increase of 29% year on year, of which the organic element was 5.3%. Of the quarter 2, we commented that based on having Frank Malone in the group for the full coming quarter, it's of course reasonable to expect an increase in sales also in quarter 3. So what happened then?
Well, in comparison with quarter 2 of 20 14, sales was up 10.1%. However, that was including an organic decline of 2.3%. Percent. This decline was partly due to the recovery in quarter 2 from the delay in invoicing in quarter 1. And in addition to that, normal variations in revenue recognition for contract based sales.
I think it should be noted that Trancom contributed with sales to the tune of 1 $300,000,000 a sequential increase of 9%. Of course, quarter 2 was only 6 weeks for Frank Moen and now we have obviously a full quarter. Moving on to service, the service activities represented 26.4% of total revenues, the same level as in quarter 3 of last year. I think it should be noted that organically the relative portion of after sales to total sales increased. But remember, aftermarket revenue Mohan is lower.
Let me then come to the first forward looking statement concerning revenues. We expect that sales will increase and increase slightly in quarter 4 compared to quarter 4 in accordance with the seasonal factors. Let's then move on to the next graph about gross profit margin. In the quarter, we realized a gross profit margin of 35.3%, representing a decline of 1.4% year on year and a decline of 1% sequentially. Again, with quarter 2 report, I said, in the near term, we do not foresee any material change compared to the outcome in quarter 2.
So the actual for quarter 3 then came out, I have to say again, slightly below what we expected and that is due to the distribution of FX effects between quarter 3 and quarter 4. In total, the 2 main contributors to the lower gross margin sequentially are firstly, the lower gross profit margin in franc mode having a full quarter effect and then as I just mentioned, the negative FX transaction effect to the tune of 0.5%. So obviously, FX was the most sizable of the 2. Let me remind you in this context that as for Frank Mone, you must remember that the overhead costs are lower than the rest of the group. So on an operating margin level, there is a positive effect from Frank Mowen.
Let me then give you the 2nd forward looking statement. In the near term, we expect gross profit margin to get a limited positive influence from FX transaction effects. I will specify FX effects further later in this presentation. However, gross profit margin in quarter 4 will be adversely influenced by the seasonal increase in capital sales. We do not expect any further adverse price mix effects within capital sales.
I think that is important to have in mind. Let's then move on and look at the overhead cost development. R and D ended at $180,000,000 second the quarter, an increase year on year like for like of 1.4 It's also a reduction sequentially in absolute terms of SEK 20,000,000 This has been bringing the year to date increase down to 7 percent like for like. So the high levels of increases in the 1st couple of quarters is coming down as I think we've commented earlier this year. Sales and admin amounted to $1,380,000,000 in the quarter representing an increase like for like year on year of 4.9%.
Salary inflation and selective increases in resources are of course the main reasons for the increase. I think it still should be noted that the level of increase like for like is lower than in quarter 1 and quarter 2. So really the first sign of our savings initiative. As I just commented, we had adverse FX effects, Total impact net of translation and transaction was only SEK 7,000,000, but a fairly sizable transaction effect within this net. All in all, as Lars mentioned earlier, an EBITA margin of 16.7%.
As for operating income or EBIT if you like, there is a non recurring charge of SEK260,000,000 included and I will get back to that in a moment. Profit before tax, following from all what I've said above ended at €991,000,000 which is a reduction of 8% over last year. But then if I allow myself to exclude the non recurring charge of 2 $60,000,000 it's actually an increase of 16%. A lot of that of course explained by the contribution from Frank Mone net of financing costs. Before leaving the P and L, taxes were a bit above came out a bit above the 28% guidance, but we maintain our guidance of 28 percent going forward.
EPS, again, if I allow myself to exclude the one off charge, EPS would have been up 8%. Finally, return on capital employed and return on equity are of course both impacted by the acquisition of Frank Mon as presented in the report, particularly as the numbers are not presented pro form a. Then let's talk a bit about our cost savings program. We did talk about a review of structure and course with our quarter 2 report. So let me just give you a few detailed comments about this program.
Realization,
$100,000,000 will show up in the P and L in 2016. If we look at the expected headcount reduction of 300 employees, approximately 40% are related to cost of goods and then obviously the balance is overhead personnel. As for distribution of the savings in the P and L, we foresee that 40% will be showing up in COGS, 20% in R and D and the balance the remaining 40% in sales and admin. Let's then move on to divisional performance. Just a few short comments on the operating profits and margin by division.
Equipment came out below quarter 3 of last year and exactly as quarter 2 of this year in absolute terms. Comparing the margin to quarter 3 of last year, the decline was mainly due to a negative price mix effect, but also increased sales and admin costs and increased sales volume had a limited positive impact on operating profit. Then Process Technology, operating income was basically unchanged year on year. The operating margin was burdened by a negative price mix effect as well as increased sales and admin, partly compensated by higher sales. Marine was benefiting from sales increases from Frank Mone as well as organically, but then adversely impacted mainly by the increase in step up amortization as well as sales and admin costs and price mix.
Sequentially, marine was adversely impacted by step up amortization and FX. Let's then move on to a few details on our funding. As you may have noted from an earlier press release, the bridge funding put in place in connection with the acquisition of Frank Mode has been replaced in its entirety. The main element of this long term funding is the issue of Eurobonds with maturities of 5 years for €300,000,000 and 8 years for €500,000,000. This was earlier complemented with additional loans from the European Investment Bank, the Swedish Export Credit Council and also to some extent from our bank syndicate.
Overall, I should say we're very satisfied with the terms achieved for funding this acquisition. As you may have seen, the very good cash flow in recent months has with the current level of gross debt, we anticipate interest net to be SEK 90,000,000 per quarter. But of course, we expect that to gradually decline as indebtedness goes down. Then let's get to the cash flow statement. Cash flow from operations amounted to SEK1 $67,000,000,000 well above quarter 3 of last year as well as quarter 2 of this year.
The main contributor of course being a reduction of working capital to the tune of SEK 600,000,000. Free cash flow SEK 1,260,000,000 that is to be compared with less than SEK0. 9,000,000,000 a year ago. Some of the improvement in cash flow from operations was obviously consumed by increased financial costs. And let me also state that Frank Mown, of course, contributed to the cash flow generation.
I think it's hard to say that we're truly happy with the development of cash flows. Then let's get on to FX. As I mentioned before, the net was a negative $7,000,000 in the quarter. But again, note that transaction effects, they were negative to the tone of 0.5% in relation to sales. We've updated the forecast for the full year, an improvement of SEK 15,000,000 compared to the last report.
And then finally, we have updated our expectations for 2015. Given stability in the exchange rates at current level, we foresee positive effects of totally 250,000,000
in 2015.
Let's then look at our order backlog. We had a total order backlog at the end of September of SEK22.4 billion. Dollars The backlog was representing 6.4 months of LTM sales that is if I exclude Frank Mone. If I include Frank Mone, then the back load we estimate represents about 7.5 months of sales. So, an even longer backlog for the Frank Mown activities.
On a like for like basis, the order backlog to be shipped in the current year and this is really important for your full year forecast. Like for like, the order backlog to be shipped this year is about compared to last year. Including Frank Mone, as you can see from the slide, the backlog for shipment in quarter 14 is about $700,000,000 above September last year, but that is of course including Frank Moen. Having said that, let's move on to the bridge sales 2013 to 2014. The numbers, I can say immediately, they are the same as last time.
We start off with SEK 29 800,000,000. Order backlog going into this year was down SEK 200,000,000 compared to the year before. FX translation still positive with $500,000,000 and then the acquisitions, Niagara and Frankfurt in combination adding SEK 3,000,000,000 giving a subtotal of SEK33.1 billion. And then of course, you need to think about the implications of demand for orders in for out as well as price effects.
With that, I hand over to Lars for the outlook and the closing remarks. And the outlook is as follows. We expect that demand during the Q4 will be on about the same level as in the Q3. And for each division, our demand expectations for the 4th quarter are as follows: Process technology to increase somewhat due to large contracts Marine and Diesel to decline, following ship contracting development earlier in the year and a strong Q3 for Frank Moon Offshore. And finally, equipment to be unchanged.
And that completes our presentation. And I will hand over to the operator for the Q and A session.
Thank you. And your And your first question comes from the line of Lars Brosson from Barclays in London. Please ask your question.
Thanks very much. Good morning, Lars. Good morning, Thomas. A couple of questions from my side. Just on the divisional outlook for Marine, I was curious as to the thoughts on base order trends versus large orders going into Q4?
Obviously, Frank Mone saw a couple of very large orders in Q3. Is it the view there that that's seeing the deterioration going into Q4? Or are you seeing broad based weakness across your Albo and legacy Alfa product portfolio as well in terms of the outlook? And then secondly just Thomas to the cost reduction program if I could ask to give a little more granularity there divisionally? And also whether the headcount reduction includes the 90 headcount reduction that was announced earlier in the quarter from all aboard industry in the stainless manufacturing sites?
Thanks.
Well, when it comes to Marine, we expect a modest decline. And when it comes to large orders, those come in a bit lumpy. But to answer your on the base business, a modest decline.
Then your questions about the cost reduction program, as we were quite explicit about already in the quarter with the quarter 2 report, we made review across all parts of the organization. So the savings program will have an impact in all of the divisions as well as I pointed out cost of goods and R and D. As for the Old Boy closing, whether that was included in terms of headcount reduction, yes. But remember, 90% is the gross impact in that particular project. The net impact is well below half of the $90,000,000 So in relation to $300,000,000 you should only think about something like 30 to 40 people in the Allboy
project. Understood. Thanks.
Your next question comes from the line of Max Yates from Credit Suisse London. Please ask your question. The HU line is open. Please unmute your line and ask your question. Okay.
No response. We'll move to the next question, which comes from the line of Ben Madlin from Bank of America.
Just on the weaker ship contracting comment that you make, can you
just give us a a bit
more granularity on where you see that? Is that in Framo? Is that in the traditional business? Is it in certain segments? Maybe cut what you see in terms of merchant offshore and then liquid fuels?
That's the first question. And then just a question on oil and gas markets generally. We've seen the oil price come down. Would you expect to see any negative impact on your business going forward? And are there any big differences you see in terms by region or in terms of upstream and downstream markets?
Thank you.
Well, I can start with your last question. We had a very strong order intake in oil and gas in the Q3. And what we can see is that there is slightly lower tendering activity, but it's you can differentiate it when it comes to the U. S. We see that it is continued very strong and there we have shale oil and shale gas continues in a very strong mode.
And of course, in a longer perspective that there will be an impact from lower oil and gas prices, but the lead times on these projects are very long. And then when it comes
yes. Then coming to the lower ship contracting and more granularity on that, let me start off by reminding you that we are exposed to every segment of this market. So if you look at the total statistics for contracting from the beginning of this year, you have seen a decline and obviously that is the reference point for our expectation. There is a lag of everything between a few months and up to 9 months a that there is a difference in mix between us and that's that makes this difference. So I think as far as we're concerned, you can just look at the statistics the beginning of this year and the evolution of a decline.
And again, we are exposed to all the different types, of course, with the difference that Frank Mone is only chemical tankers and product tankers.
Got it. Okay. Thanks a lot. Thanks, Thomas.
Your next question comes from the line of Sven Vila from UBS Frankfurt. Please ask your question.
Yeah, good morning. A couple of questions from my side please. I'm just curious when you did see the Marine business starting to go down in the quarter? Was it just in September? Maybe you could give us some additional details on that.
And then also on Marine Services, we've been having Rolls Royce mentioning some weakness starting into the second half. It seems that you didn't see that weakness. Is that also because of a broader positioning that you have in the marine market? Thank you. Yes, Borikin.
Marine Services had have had an excellent development and we have seen Marine Services accelerate year on year during the last three quarters. And our conclusion is that because we've had few years with very modest growth when it comes to service in marine and that is because ship owners have been holding back due to the low freight rates, But they have our conclusion is that they've reached a point where they have to make their service and their retrofits. So in fact, we had a very good development in the Q3 year on year when it comes to marine service.
And then I think your first question Sven was about when did marine start to go down. And Sven, I think we have to refer back to quarter 2. I think we were quite explicit after quarter 2 that quarter 2 was really extraordinary, particularly when it comes to the boiler product range. We have seen a continued, I would say, quite strong orders received for the division as a whole supported by offshore. But again, you know very well what I mentioned on Ben's question, there is a lag.
We started to see a decline and of course that is in contracting and that is gradually kicking in. 9 months.
Understood. Thank you.
Your next question comes from the line of Nick Wilson from BBS London. Please ask your question.
Two questions, please. With apologies, just trying to get to the bottom of the gross margin. And I know you gave some moving parts, but also I guess you will have some benefits in terms of maybe some COGS savings, although albeit fairly small. So my simple question is, do you think the gross margin of 35.3% will prove to be the low and then we start to move forward from there. And then linked to that as well please R and D, again, I know it's part of your cost savings program going forwards, but obviously it's been quite lumpy so far this year.
How should we think about the level of R and D spend going forwards given obviously your target to reduce it by I think you were saying or maybe 20% of the cost restructuring program was aligned to R and D? Thank you. So
let's start off with the first question about gross profit margin. Yes, the impact from the savings program will clearly be very low, if any at all during the rest of this year. But then of course, as the changes in structure are kicking in, there will be an impact that totally, as I mentioned before, savings. As far as gross margin in general is concerned, I think I was quite explicit in the presentation. For quarter 4, we will have this seasonal increase in capital sales that will have an adverse effect because of a different mix between capital and aftermarket.
But what I was also quite explicit about is that we do not foresee any further adverse price mix effect within capital sales as we have experienced over a number of quarters. Then, of course, FX will eventually start to turn positive. We will get benefits from the stronger U. S. Dollar, the stronger euro in the quarters to come.
Then for R and D, the R and D is inevitably lumpy in nature. We do not capitalize any R and D cost given the lifetime and our assessment of the individual projects developing and producing new tools, 1st sets of tools and the first prototypes of the products, they incur costs that cause the lumpiness. There is an underlying stable quite stable level of resources for R and D, mostly in house, but to some extent external. And we do expect and we do have in mind to reduce the total R and D spend going forward because we believe that we can better optimize from R and D into introduction to the market and payoff from customers by a slight reduction. So that's the reason why we're cutting back on R and D to a limited extent.
Yes. And to add, we have during several years increased our investments significantly in R and D Even when we have had previous cost saving programs running, we have spared R and D and continue to invest. So therefore, we feel quite confident that we can make a reduction of 10% and still be very successful.
Thank you. Your next question comes from the line of Colin Gibson from HSBC London. Please ask your question.
Hi, good morning gentlemen. It's Colin from HSBC. Two questions please. The first, anything at all you can do to help us just to understand the organic profitability trend in Marine and Diesel? Obviously, Frank Moen coming in the quarter and making a big impact both on top line and I guess on the margin as well.
But any help you can give us in terms of trying to disentangle all of that versus the organic business? And then secondly, we saw very strong cash flow in the quarter. We also saw a weaker margin in the equipment division than the market was expecting. Are we seeing this deliberate destocking from EDD in the quarter? And if so, could you comment a bit around that?
Thank you very much.
Okay, Karl Lian. Well, when it comes to profitability trends, we think it is fair to state that Frank Mone is contributing positively to our operating margin. We do not go beyond that because of agreements with the sellers of the business among other. And as far as the divisional profitability is concerned, we are not prepared to go below the level of disclosure that we have in the report. Then looking at the Equipment Delivery division, profits as well as profit margin, yes, we have a lower profit margin in at this juncture, but there is a significant change in among other the approach to market where there is an increase of distributor sales.
There is a launch of web tools to increase our presence within customers. We're totally convinced that this is the right approach to improve presence with customers to increase volume as well as profitability going forward. So as far as we're concerned, we are
equipment.
Thank
you. And your next question comes from the line of Peter Froland from Handelsbanken. Please ask your question.
Yes. Good morning, Lars and Thomas. A couple of quick ones to begin with. Thomas, you mentioned savings this year about CHF 50,000,000. What have you seen so far this year, if any?
And implicitly what we could expect in the Q4? Also on the FX, I mean given your hedges and your FX guidance on the total earnings effects for 2015, could you help us to understand how the pattern will look like by quarter?
And then my question
to come back on service, sorry for this. But if we look at the entire company, not only sort of the marine side, we have seen strong service growth year on year, but a slight decline quarter on quarter. Is there any seasonality here on a group level to take into account? I mean given the installed base you might could expect continuous growth of the service at least on a year
on year basis going forward? I can take the last one first. It's while we had the sequential decline in service was due to some exceptionally large orders that we booked in the second quarter. And if you look over time you will continue to see a continued growth year on year for Service. We are quite confident that the activities that we put in place that they will continue to generate very good development.
And you can see year on year we are up about 6%. That's very clear. Yes. Thank you.
Okay. Then coming on to your first two questions. As far as savings this year are concerned, remember I said total effect this year, dollars 50,000,000 in the P and L. And well below half of that was the effect in quarter 3. When it comes to FX next year, a total of SEK 250,000,000 positive.
And of course, as far as translation is concerned, the bulk of that will be kicking in during the first half As far as transaction effects are concerned, they will be coming in rather towards the latter part of the year. So the net of those 2 then, is
it flat over the year or it's back end loaded?
Well, Pedro, I think we have to get closer to next year before we get into the details by quarter. As far as we're concerned now, translation will come earlier, transaction will come later and we'll get back to more details in the coming quarters.
Thank you, gentlemen. I'll get back in line. Thank you.
And a follow-up question from Peter Froelen from Handelsbanken. Please ask your question.
Yes. Thank you. On your outlook, I mean, you've been quite sort of open with the additional sort of arrows going into Q4. On a total group number, I mean, we have seen large orders being very, very strong. Talking about service continue to grow.
At the same time, Marine is expected to come down. I mean, your outlook is that on with normal large size order or is it a total order
number? Well, as you rightly say, Pedro, we've had a really strong quarter in terms of large orders. And I would like to remind you of last qualification for Process Technology. Process Technology is expected to increase somewhat due to large contracts. And of course, if these expected large contracts total incoming orders in quarter 4.
Okay. Thank you. Thank you, Peter.
And your next question comes from the line of Lars Brossen from Barclays London. Please ask your question.
Thanks. Just a quick one from my side. How many scrubber systems did you book in Q3? And what are the thoughts and expectations here
for Q4? Thanks. We booked
6 ships in the Q3 with in total 8 scrubbers.
And can I just be clear, you booked 27 systems in the first half of twenty fourteen, is that right?
Yes. Let's see. I have to dig up my statistics if you hold the second. You can yes, let's see here. The number of scrubbers we bought booked 27 in the 1st 6 months, yes.
And the Q4 outlook?
Well, we see that there is a continued good demand for scrubbers and we are quite busy taking orders, booking orders and receiving down payments. So we definitely believe that order intake will be higher in 2015 than what it has been in 2014. Sure. Thanks. And there are no further questions at this time.
Thank you very much. So thank you, Mats. Thank you very much for your attendance and contribution and we wish you a continued good day.
Thank you for participating. You may disconnect.