Thank you, Andreas. Good morning, everyone. Welcome to the presentation of Attendo's third quarter results for 2018. This is my first quarter as the CEO of Attendo. I'm very excited about my new role. I have great respect for Attendo and what the company has achieved in the past. Given its demographics and upcoming need for new capacity, I also believe that our biggest growth opportunities are still ahead of us. I've spent much of my first time visiting units and meeting with customers and employees across the company. I must say, I'm very impressed by the commitment and the entrepreneurial spirit we have in Attendo on all levels. Society is facing large challenges in relation to social care, and I see that Attendo has an important role to play in this area.
Right now, we're adding more capacity than ever before, thereby providing local authorities with services that enable more people to get access to modern and high-quality nursing homes. We foresee that we will maintain a very high opening pace in 2019. This is fundamental to strengthen our market position and fuel organic growth and building shareholder value long term. At the same time, the high opening pace will continue to put pressure on margins short term while allowing for increased profit growth. Our absolute ambition is to be at the forefront of improving the quality of care, establishing new operations, and to solve important tasks for the local authorities across the Nordics. Now I will turn to the presentation, starting by presenting the results in brief and by sharing some business and market highlights, then Fredrik Lagercrantz, our CFO, will take you through the numbers in more detail.
Next slide, please. We had a very high activity in 2018 with a record number of openings and construction starts. For the third quarter, net sales amounted to SEK 2.8 billion. Growth was 21%, adjusted for currency, a result of openings recent quarters and acquisitions. Organic growth amounted to 4% and will over time increase as more beds get occupied. Operating profit, the EBITDA, amounted to SEK 297 million, corresponding to a margin of 10.6%. Both acquisitions and improved occupancy this year in units which were under startup in Q3 last year contributed positively to profits. We have also improved the performance in our home care operations in Sweden. This is a function of improved planning and process work in combination with tactical acquisitions the past year, increasing customer density in our home care operations. Profits was continuously negatively impacted by costs for opening up new units.
The loss from ended outsourcing operations was larger than earnings generated by new outsourcing units, this trend is expected also in Q4. Denmark is still a loss-making area, the losses were lower versus the previous quarter. They have stabilized the development in IOF, results are still slightly lower versus last year. The margin for Attendo as a whole is lower than 2017. This is a consequence of high startup costs and the acquisition of Mikeva in Finland, which has clearly lowered margins in Attendo as a whole. We reported the operating cash flow of SEK 186 million. As previously announced, we're in the process to divest Attendo's healthcare operations in Finland. The competition authority's process to review the transaction has been slightly delayed, we expect the closing to be around year-end.
Let's take a closer look at our contract models. You can see that the quarter reflects continued growth in own operations. Net sales increased by 34% compared to Q3 last year. The increase is mainly explained by acquisitions, but also from new nursing homes and higher occupancy in units that were under startup during the corresponding quarter of last year. The largest part of the sales growth in own operations is derived from the acquisition of Mikeva, which was consolidated into Attendo in November last year. During the third quarter, we opened 12 new own units with a total of 319 beds. This is lower versus previous quarters as we prefer not to open homes during the summer months, and we expect a higher number of openings in Q4. Turning to outsourcing. Outsourcing accounts for 20% of sales in Attendo.
It will decrease as part of the group as we are growing in own operations, but it's still of strategic importance as many local authorities start using outsourcing as the first step to increase freedom of choice. Net sales and outsourcing operations increased slightly due to currency and contractual price adjustments. Looking at the results of tendering processes in Q3, we lost contracts of an annual sales value of SEK 60 million. In Q4, we expect a drop in revenues for outsourcing since some larger contracts will expire with a combined annual sales of around SEK 200 million. Over time, we expect the outsourcing business to be stable with slight growth potential, while it can show some revenue volatility short-term. Next slide, please. This chart shows a rolling 12 months opening phase. As I just mentioned, we opened 319 beds in Q3 isolated.
This is significantly lower versus the previous quarter. The number of open beds rolling 12 months around Q3 was close to 2,500 beds. This is more than 60% higher than the same period last year, and this is a fundamental driver behind our organic growth and future value creation. The high number of openings has an impact on profit and margins. Before we reach a sufficient occupancy, open units are loss-making. Also, with increased and currently very high activity in the market, the expected time to reach full occupancy has increased from earlier 12 months to around 18 months. Many openings also mean higher demand on the organization to sell more beds, and we're putting more efforts to sales and marketing, and we're pleased to see that we have never been selling more beds on a 12-month basis. Still below the exceptionally high opening rates.
On the right side of the slide, you can see some photos of homes opened in Q3. The photo to the lower right displays a new day center for people with disabilities, and this is an example of our vision in practice to empower individuals. In this case, through providing disabled people with meaningful work in a bed and breakfast operation for external customers. Next slide, please. Attendo now has more than 15,300 owned beds in operation. This is an increase by almost 50% from the corresponding period 2017. We have continued to find new opportunities, and we started construction on 13 new units in Q3 that will add more than 400 new beds. In total, we have more than 2,500 beds under construction by end of Q3. This is a slight increase versus the previous quarter, while lower versus the same quarter last year.
We are the clear market leader in Nordics in terms of number of beds in operation and in terms of ongoing projects. Next slide, please. Let's now turn to the overall market trends. We continue to see strong interest in our operations in both Sweden and Finland. The outsourcing market in Sweden was stable in the third quarter, volumes up versus last year in care for older people, but slightly lower for care for people with disabilities. Attendo has had a high win rate in 2018 year-to-date. In mid-September, elections were held to the parliament, county councils and local authorities in Sweden. While the financial political constellations in the national parliament and in many local authorities are still unclear. On the overall level, pro-private parties have increased their voter share.
Attendo believes that the discussion regarding profits and welfare services will be less significant at the national level going forward, and that the election outcome could, over the long term, mean increased opportunities for new operations at local level. In Finland, the public sector needs new solutions to get access to new capacity and replace outdated facilities. We have seen higher interest from local authorities to divest outdated nursing homes to private providers in order to get access to modern care homes and to secure local services and local jobs. For example, in the turn of Q2 and Q3, the municipality of Imatra chose to sell several care facilities to Attendo. With that, I hand over to Fredrik for a financial review of the quarter.
Thank you, Martin. As you remember from last quarter, all figures related to the income statement are presented without the healthcare operation in Finland, unless we state otherwise. If we turn to page seven, we can see that the net sales continue to be strong. Total net sales amounted to 2.8 billion SEK, up by 26% compared to the corresponding quarter last year. Adjusted for currency, net sales increased 21%. Acquisitions contributed with approximately 17%, an effect from the many acquisitions made during 2017, of which Mikeva being the largest. Organic growth improved to 4% in the quarter and is over time expected to increase due to our many openings. You should bear in mind that net sales this quarter is still negatively affected by the closed units within home care and the individual and family care business.
In the fourth quarter, we expect less positive sales growth from M&A. This as a consequence that the Mikeva acquisition was consolidated into Attendo already in November 2017. Attendo will also lose sales in the outsourcing operations in the fourth quarter due to some large contracts that will expire in the coming quarter. EBITDA amounted to 297 million SEK in the third quarter, slightly up from last year's 277 million SEK, and with a margin of 10.6%. The margin has declined compared to last year and is pressured both by the large startup costs and by Mikeva coming in with clearly lower margins than Attendo. I will come back with details on the underlying EBITDA development on the next page. Financial net was negative 35 million SEK compared to negative 21 million SEK in the third quarter of 2017.
The higher interest expenses are explained both by higher debt and higher interest margins after the Mikeva acquisition. Income tax for the quarter was SEK 54 million, which equals a tax rate of 24%. The higher tax rate is mainly explained by losses in the Danish home care business and to some extent of a lower share of remaining business in Finland.
Net profit from continued operations amounted to SEK 171 million in the quarter, which equals an earnings per share after dilution of SEK 1.06. Next slide, please. As seen on the previous slide, the operating profit for the quarter was up SEK 70 million to SEK 297 million. The largest profit contribution continues to come from our acquired units where main part relates to Mikeva. We can also see that the number of units now entering into a more mature phase is increasing, which has a positive impact on profits.
We are also pleased to see that our strong efforts to improve profits in our home care business are now paying off. The home care market is highly dependent on a good customer density, something that we have worked with both through tactical acquisitions, but also by closing down units lacking good prospects for future growth. Looking at the items pressuring our profits, we see the large impact from startups and the negative balance from started and discontinued outsourcing units.
We have had a very high opening pace since the third quarter of 2017, which has put a substantial pressure on the profits. The openings rolling 12 months are now declining from the peak level we experienced in the second quarter, but still at a very high level. Going forward, you should bear in mind that the opening pace is expected to remain high with continued profit pressure as a consequence.
Long-term, we are confident that the units that are now pressuring our short-term profits are laying a strong foundation for future profitable growth. Before we turn slides, I just want to give a few comments on the fourth quarter. We expect positive impacts from units that were under startup last year. Openings will at the same time have a continued negative year-on-year effect. We expect a pace headwind from outsourcing units that expires, and we also have a negative calendar effect compared to prior year. Next slide, please. On this slide, you could see the complete cash flow statement. I would just like to make a few comments on cash flow. First, bear in mind that the cash flow includes the health care operations in Finland. Cash flow from investment in real estate projects was slightly negative in the quarter with a negative SEK 59 million.
This is due to that the summer is an active time for construction projects. Overall, cash flow from real estate investment has been positive during 2018. Net debt amounted to SEK 4.7 billion, which equals the net debt to EBITDA of 3.8. Excluding the close down cost, net debt to EBITDA amounts to 3.7 in line with Attendo's financial targets. With the proceeds from the divestment of the healthcare operations expected around the year-end, the net debt level will decline substantially. With that, I hand back over to you, Martin.
Thank you, Fredrik. Next slide, please. We try to ensure that all our customers should feel safe, involved, and independent. Achieving this requires systematic quality improvement as well as a competent and value-driven employees. I'd like to give some examples of activities carried out in the units during the third quarter. This summer was characterized by the unusual and long-lasting heat wave. We know from experience that heat waves could influence comfort and health for our customers. During this period, we took actions both on central and local levels to prevent dehydration and other discomfort for our customers. As a result, we didn't see negative deviations during the period. In Finland, we're trying out new ways to present our services. One example this quarter was a pop-up nursing home at a shopping center in Pori.
The space in the mall was furnished exactly like an Attendo home, where shoppers could peek in and get a sense of Attendo's available lifestyle concepts. For the second year, Attendo Unika in the Stockholm area was nominated for the Lead the Way Award in the employer of the year category. The award is given by the state-owned company Samhall to persons who try to integrate people with disabilities in the labor market. Attendo Finland has awarded the Nurse of the Year within care and healthcare, the Innovation of the Year, which was granted to the new mother's dental box, a package of dental care products for expectant mothers. With that, I would like to conclude the presentation. The result in Q3 was slightly higher in absolute terms versus last year, but with lower margin as a consequence of the many units in startup phase.
The openings will also remain on a high level in coming quarters. Next year, the new accounting standard, IFRS 16, will be implemented. In connection to the year-end report 2018, we will present the impact on the P&L and balance sheet for Attendo. At the same time, we aim to present updated financial goals for the group reflecting the new accounting standard. Attendo is a clear market leader in the Nordics and has a strong foundation in terms of culture, quality of employees, and ambitious plans. At the same time, we must continue to challenge ourselves to get better and never settle for good enough. I'm very excited about the future journey and looking forward to develop the company together with my 24,000 colleagues. Thank you for your attention. Over to you, Andreas.
Okay, we'll now open up for questions, please take one question at a time. Operator, please go ahead.
Thank you. Ladies and gentlemen, if you do have a question for the speakers, please press zero one on your telephone keypad now. If you would like to withdraw your question, it's zero two. Once again, if you would like to ask a question, press zero one on your telephone keypad. First question comes from the line of Kristofer Liljeberg from Carnegie. Please go ahead. Your line is now open.
Thank you. Is it possible to give the figure for the net impact from homes that are in startup phase? The one you said were minus SEK 50 million in the second quarter.
We usually don't give that exact number. I don't think we said exactly SEK 50 million in the second quarter, but that's roughly where we were. It is lower this quarter, that's a consequence also that we see. As you can see, the number of beds opened over the last 12 months is lower. It's somewhat lower this quarter.
Do you think it will become higher again the coming quarters given what you say now or should it continue to decrease as you see also more of those homes getting profitable?
One thing is to bear in mind that this is the absolute cost of the new openings. It's not the net with the kind of profits we get from ramp-ups. One thing is the volume of units and beds we open, but also every product and unit has a bit of different local market prerequisites, so they can fill up differently. It's not that you exactly mathematically can say how that they will develop exactly the same. It is dependent on the local market conditions. Over time, it should follow the amount of open beds.
Look, since the effect was then lower in the third quarter than the second quarter. For modeling purposes here going forward, should we expect, if you look at the total net effect with the positive contribution from homes that are filling up, becoming more profitable, at the same time, we have a lot of starts. Do you think that type of net effect, do you see that will now continue to be gradually smaller, or could it be in the short term more the negative impact again?
Over time, it gradually should improve as the total amount of openings are declining somewhat, and at the other hand, we get more and more positive contributions from ramp-ups or the units that were in startup one year ago. To predict a specific quarter is very hard. Over time, that balance should improve. Just looking at the stock of units we have under construction, we predict that in looking at the next year, number of openings will be lower than 2018, somewhat lower.
Do you think it's a fair assumption to assume, well, the margin will be at pressure, but because of the higher sales that you will be able now to continue to grow earnings year-over-year?
What we see is that the current opening pace is pressuring margins, which makes it hard to increase the margin to short term to our long-term target of 9%.
Okay. Thank you.
Thank you. Our next question comes from the line of Mikael Holm from Danske Bank. Please go ahead, your line is now open for your question.
Yes. I have two questions. The first is if you could say something about the average revenue per bed in Sweden and Finland to help us get a feeling for the occupancy levels in the two countries.
Yeah. Okay, Mikael. When it comes to the first question, as you know, there's significant difference between the Finnish and Swedish market when it comes to the revenue per bed, while as you know, margins are not that materially different. In Sweden, an average bed are roughly on the range of SEK 2,200, and in Finland, the corresponding figure would be EUR 135 per bed, roughly. Give an indication. We don't give out occupancy, as you know, but you can just, as you see as a whole system, we're opening up very many more beds in Finland, obviously, the occupancy is on average lower, but in mature units, we are about 90% in both countries.
If I have the average revenue per bed in Finland, I guess I can calculate the occupancy as you give out sales for own operations, or is there something I would miss then?
Yeah, you could give an idea about it, yes. There was a mixed effect. The majority of our operations are within elderly care, but then we have disability care, which tends to have a higher revenue per 24 hours. Then we have social psychiatric care, which tends to have a lower reimbursement from the public system. So, and also when it comes to beds difference doing outsourcing, you don't have the rental component, for instance. So it is quite tricky to do that math. But of course, it gives an indication, yes.
Okay. My second question is regarding Sweden and a change in mix on where you build new units. Historically, we can see that most new units have been in municipalities where there's a LOU system, while you're now building more in municipalities with more frame agreements. Could you give some more color on this in terms of positives and negatives with this shift in terms of new openings?
Well, we don't see it really as a major shift because we are interested to building new units in the local authorities where there's a shortage and where there's a future need for capacity. It could be in the freedom of choice municipalities, LOV, that's what they're called in Swedish. Also LOV is quite common, and it's more dependent on the local situations. We are analyzing basically all municipalities in Sweden to find opportunities, there's no clear trend there on how we are thinking on that. If you would say something about the general pattern, of course, in a freedom of choice system, we are a bit more exposed to price risk as the price is more set by the local authority. We can more control the occupants as we can attract customers a bit more independently.
While in a framework agreement situation, we have a bit more opportunities to work with the price level. However, of course, we're a bit more dependent on how the local authority are managing the queues.
There's no differences in terms of margin historically or what you see as the future potential?
Margin could differ a bit from municipality to municipality, there are no clear pattern on that. It differs very much from region to region, that's part of our model, really, that we are diversified and we are finding all opportunities where we can.
Okay. Thanks.
Thank you. Our next question comes from the line of Hans Boström from Credit Suisse. Please go ahead. Your line is now open.
Good morning. Three quick financial questions, please. I see there's some quite considerable movements in your amortization of intangibles in the third quarter compared to recent quarters. Is this the cause of acquisitions? I'm not sure that you have made so many acquisitions to justify SEK 10 million quarterly on quarterly increase. Could you explain that? Secondly, your interest margin on my calculation appears to have risen as much as 140 basis points on last year, which obviously seems a huge increase. That might be slightly distorted by average debt levels, but still it seems to be more than 100 basis points. Is this really the case? While the other financing costs involved in your finance net, but we should be not seeing as recurring. What will happen to this borrowing rate when you have sold the Finnish operation?
Are we safe to assume it will go back to where it was, or are you still going to be at a much higher rate than you were in the past in terms of, and I suppose there might have been movements in underlying rates, but if you talk about margins, that would be helpful. A third point relates to your comment on tax rate, which appears to be partly relating to issues in Denmark, but there was also comment about Finland being a lower share. You've been in the 21% region in the past before these non-recurring issues started, but is that a sensible level for the future or will you be at a higher rate? Thank you.
Very many questions, let's take them one at a time. Starting with the question on amortization. The increase year-on-year is primarily due to the Mikeva acquisition.
That was already effective from the first quarter, there has been a SEK 10 million increase as far as I can see, unless my numbers are wrong sequentially.
I need to look again because I was answering year-on-year development. If we take interest margins, when we have increased our borrowing as a consequence of primarily the Mikeva acquisition, that impacts, as you say, both the debt level, it also impacts our interest margins that we pay because that is based on the leverage rate. It's a combination of higher debt and higher interest margins.
Can you comment in terms of how your terms, given I presume you have breached some form of covenant that is triggering this increase in interest margin.
We have not breached any covenants. We have a margin ladder that is depending on our leverage. Our borrowing has increased, if you compare it to one year ago, quite significantly. That drives both the amount of money we have borrowed, also the margin we pay on the full amount. We should remember that following the closing of the divestment of the Finnish healthcare operations now around year end, borrowing will go down again, that will impact also the financial net.
Yes, could you quantify what types of swings in borrowing margin we're talking about? These swings are truly significant in the context of this company or any company for that matter.
I think if you look at our current financial net and calculate based on our net debt, you get fairly close to what we pay in interest margin. With current leverage, it's a bit north of 2%. That goes down significantly. I don't want to comment specifically on exactly how our financing agreement looks, the interest margin goes down significantly as we go down in borrowing. Hans, we didn't get the third question really.
You did talk about the raised tax rate being a function of the Danish losses. I presume there's some non-taxability there, also shift of business away from Finland.
Yeah. As we expressed, the tax rate now, it's for the remaining business. Since the health care operations in Finland is in Finland, and Finland has a lower corporate tax rate. When we exclude that, when we're commenting. Which has a slightly higher corporate tax rate compared to Finland.
There is no element of non-recurring items that impacts the 24% or so tax rate, is an underlying tax rate for the business as it looks today?
No, the main reason for the high tax rate is the losses in Denmark that we cannot deduct from a tax perspective. The long-term perspective, looking at the 20% and the 22% we have in Finland and Sweden as tax rates, that's a good proxy of the long-term perspective of what our tax rate should be once we have turned Denmark around to make a profit.
Okay. I'd appreciate if you'd come back to me regarding the amortization.
Yes. To me it looks like that the amortization in the third quarter is very similar to the second quarter in 2015.
Okay. I had the wrong information.
I think it differs SEK 1 million only.
Okay. Thank you very much.
Thank you.
Thank you. Our next question is a follow-up question from the line of Kristofer Liljeberg from Carnegie. Please go ahead. Your line is open.
Yeah. Thank you. Actually, two follow-ups. Could you comment on the average time to fill up the homes if that has continued to increase or if it's stable now? I guess you have also had some wins. Is SEK 200 million the net effect how much lower this will be in 2019 or is that less? Thank you.
Yeah. If I start with outsourcing contracts. These are contracts that we have known for some time that they will end. We announced that a couple of quarters ago that we lost the contract. Now exactly the kind of finishing time is approaching here in Q4 and SEK 200 million is the annualized sales impact, and that's a good proxy for what will happen in the fourth quarter to use that number. Moving into 2019, we have other contracts coming, starting up as well. It's not SEK 200 million on a full year basis for 2019 negative.
What do you think the negative effect will be in 2019?
We don't give that specifically.
Okay.
In terms of fill-up time and how quickly we fill the homes, we can reiterate what we've said before, that every market is very local. It depends on what's the shortage when we open in the municipality. Where is the buyer mechanism? Is it the freedom of choice or is it the framework agreement? It is different from unit to unit and market to market. To be very specific on what we expect for the next quarter or what we see exactly now, we cannot be that specific because it varies. It depends on if we this quarter have many things opening in Finland or in Sweden and so forth. What we can say is that overall we've seen average time to reach a full house has increased from the 12 months we used to talk about, and now it's 18 months.
Okay.
We don't see it worse than we talked three months ago during the summer. We are at the similar level.
Okay. Thank you.
Thank you. Our next question comes from the line of Karl-Johan Bonnevier from DNB Markets. Please go ahead. Your line is open.
Yes, good morning. I just wonder if you could help me with, if you look at the 15,300 own beds you have in the own operation, how many of those would you consider be in this kind of ramped up the mature units coming up to the 90% occupancy level?
We changed the view a bit on how long time it takes to fill them from 12 to 18 months.
Assume that about two-thirds will be in full occupancy or the kind of targeted occupancy at this stage.
More. It's north of 10,000 beds is mature.
Excellent. Just on the calendar effect for Q4, can you give some indication for it? Because obviously, depending on how Christmas falls, it could be a huge impact.
Yeah. We have estimated the impact somewhere between 10 and 20 million SEK for the group.
On the revenue level?
No, on profit level.
On profit. Thanks.
It doesn't impact our revenue so much. It's our cost that is higher.
Of course. Finally, looking at Mikeva, obviously there was an integration and earnings enhancement case you to some extent took charge of there. How has that developed to date?
Integration has been going to plan. We have now spent almost a year on it while still that's significantly lower than Attendo as a whole, and its profit level is on a similar level versus points of acquisition. We have some units that were more challenging than we thought. Of course, two of the biggest factors when improving the business is staffing, which is something to work with. It's also lease agreements, which take longer time. We're working hard with that acquisition. We said that we believe that we will improve it, that particular acquisition, and we will improve the margins over time, but it's hard work doing it.
Your total scope that you should be able in due course to get it up to your Finnish level, so to say, the old legacy level in Finland, that should be still a fair assumption?
What we said is that we should get it in three years overall Attendo margins, and that we've committed to.
Excellent. Thank you very much.
Thank you. Our next question comes from the line of Riccardo Romiati from One Investments. Please go ahead. Your line is now open.
Hi, thanks for taking my question. I have one question on your own operation business. You talk about closing a number of homes in the quarter, and I wanted to understand if some of these homes are being renovated and will reopen. How many of these homes on the other end will be closed? How big the number is, and in what geography are we talking about?
What we talked about is that we have closed a number of units. That has primarily been one thing we've done is we closed a number of home care units, which is when we provide services at the client's homes. That's because that operation, it's so important to have a good customer density. We work with two levers there. One, doing tactical acquisitions, then also close down units. That kind of not closing any facilities we've had. Otherwise, it's within IOF that we have closed units, and that is integration care and individual and family cares. Thirdly, we have closed some outsourcing contracts that we've been exiting.
Okay, because you also talk about a number of clients being moved elsewhere. I was just wondering what was generally the impact and also the closing, some operations were phased out entirely.
No, in Finland, sometimes we have moved clients to more modern facilities. That has been more of moving operation. It's not closing down the operation as such, we've closed the old unit because we have a new, more modern facility in the area that we want to utilize.
Okay. Now that's clear. Thanks.
That could be as a result of some acquisitions we've done as well, where we consolidate the operations to more modern facilities.
Okay, that goes to the optimization of the utilization of the footprint that you have.
Yes. That's quite limited still.
Okay. Thanks a lot.
Thank you. Our next question comes from the line of Hans Boström from Credit Suisse. Once again, I do remind you, if you would like to ask a question, it's a zero one on your telephone keypad. Hans, your line is now open for your question.
Yeah, just to follow up, the 300 odd beds you open in Q3, which obviously is a considerable step down from the last couple of quarters. Is that a reflection of the summer months, or is this a sort of more premeditated slowdown as you absorb the recent capacity additions? How should we think about that and how this number will develop in the coming quarters?
We have learned that it's better for us to be a bit slower in openings during summer months, given that it's harder to fill up the house early on in the middle of the summer. That's a deliberate choice that we tend to open in a slower pace in the summer months. The opening pace will go up again in Q4.
We're back up to 900, or what's your thinking on that?
No, we're not back to 900. If you look at the number of beds under construction, it's roughly around 2,500 beds under construction currently in Q3. If you look at the rolling pace as well, 12 months, you can say that that's the average opening pace per year. On average, we will probably be opening around 600 homes per quarter. Now it was considerably higher in Q2. It was considerably lower in Q3. You can expect a more normal number in Q4.
Okay. Thank you.
Thank you. As we have no more questions registered, and I'll hand back to our speakers for any closing comments.
Okay. Thank you all for your participation. Our Q4, our year-end report will be released on 14th of February next year. I look forward to speaking to you at that point in time. By that, we conclude this conference call. Thank you.