Earnings Call: Q3 2017

Oct 19, 2017

Welcome to the presentation of Equit's 3rd Quarter 2017. The results will be presented by our President and CEO, Claus Falco and CFO, Anders Knickman. After the presentation, there will be time for questions from you here in the audience, but also from those of you who are following us on the webcast or on the conference call. And with these words, I hand over to the first presentation, Charles Farquhar. Thank you. I'm also then brought to you to our hand sheet record for as well as to our financial reports for the Q3 in Axos. Before we go into the agenda, let me just give you a quick snapshot of our access today. Our rolling 12 sales is now past ZAR45 1,000,000,000. We have over SEK4 1,000,000 customers every week in our different reseller assets. We have now SEK274 group owned stores, 119 stores of the franchise concept with handsets, 24 Axle snazzyos, and we operate today with 4 online retailers, in online categories. Now moving into today's agenda. And it's fairly full agenda, as you can see, as we, of course, would like to cover the financials for the quarter and for the 1st 9 months, but also would like to provide you all with an update on our way forward as well as inform about the restructuring we plan to do now with the impact of the business. Let me start by providing 3 highlights for this report in terms of our performance. First of all, I think we have a clear momentum in our sales with strong growth across the line. We have a solid process in the corner, particularly, I would say, driven by our same village, who's really leading the way. And we have outlined a clear agenda for our way forward as we are doing significantly this investment today for the long term growth, and we have now outlined the way forward. So I'll come back to that later on. Let's now go into the key ratios for the report and start with them with sales. So overall net sales, close to 8%, 7.7% and like for like growth of strong plus 4.5% across acquisitions. And I would say that all segments, as you can see on the slide, contributes to our growth particularly on the like for like side. I'll come back to the Hempstead to a brief on this slide. And if you compare this growth with our growth, and I have to say the number is exactly the same. So don't get me confused. But from January to September, our solar sales is also 7.77. And I think if you see this, it's clear to see that if you compare that to the market growth, we are seeing market share. Overall, the market is growing 3.3% up to the order. We still have not seen the numbers for the market. Moving into the profitability and profits for Ag Ag Food, our profit in the quarter is about SEK 600,000,000 to SEK604,000,000. Actually, it is an all time high profit for the quarter in absolute history. It's driven by a positive like for like, but also, seriously, that we had some negative impact from the investments we are making on our online business as well as some of the investments we are currently doing in terms of their stores, new stores and also with their service and program. Our operating margin is at 5.2 percent. And overall, we had a stable underlying margin with all our growth. But I'll come back to the handset part, which is somewhat down in this quarter versus last year. So moving then into each of our segments and starting with the star in the quarter, Village is reporting a very strong sales of over 12%. Like for like, as you can see, it's almost 5%, the Village. More customers are appreciating what we have to offer. We're seeing also higher added ticket value within the ticket value. Obviously, within the numbers, we have from the total growth perspective, we have euro cash and euro cash is supporting our growth. And it's also been somewhat more significant growth in this quarter due to the positive seasonal effects that we have in Europe. So more sales during the summer period in Eurocast. We've opened up our 200 store in Dilly, and we have an online growth, which is very positive. We are starting but coming from low numbers. We've added more cities, and we've added more stores to our online growth, our online platform. And we see a very positive growth, particularly on the kitchen select business. So the service is pleasing for us and good to see the customer appreciates the Click and Select offer that we have. We are recording a record profit in the village of SEK 323,000,000 in this quarter. Moving then to Hemship. It's also positive, we have some clear impact in this period in handsets. So first of all, we are also in handsets seeing healthy growth of above 4%, 4.4% as a total. And like for like, we see a strong growth of 3.6%. We've opened up one new store in the quarter, and we've closed 1 and sold 1 to 1 of our sanitizing parts. Also on online in Hampshire, we've added our business from online. We are now in 7 cities with Hampshire and have 17 connected stores with the MESHIP on our business. Now as you can see, our margin did see a dip in the quarter. And let me quickly go through the reasons behind it as there are clearly few areas that is impacting investment strategy. First of all, the refurbishment program. We have during the whole 2017, we serviced 9 stores, And one of them, M5-fifty, that we have recorded on is obviously a unique one, and we have to close the store for some time and have had a big impact. But in total, it's not only the MTS fifteen, and overall, we have a resurgence program that happens in that. And if you compare that to last year, we have 3 stores now the same size. The new store is also an important area for us. We are continuing to expand the handset concept. We've added 4 new stores this year compared to 1 open pit of 0 last year, none last year. And then obviously, the online part where we are going and adding more cities as well as more stores connected to our online. So this is long term investment. It always will take time to build this up and also somewhat high fixed costs in this part of the business. So the volume build and initially this impact the month. Moving on to Nelitz. Nelitz shows a solid sales and profit in this quarter. We have to say, we have responded this and doing a strong performance, I would say, in NERLYNX at NERLYNX with the customer base significantly out in the convenience sector as seen during this summer, impacted by the somewhat seasonal summer. But overall, a solid performance in the quarter in that. Looking at Dargah, I would say the same thing. So it shows a solid quarter with positive sales, supported obviously by the overall safety of that business, but it's also supported by the acquisition of Maastricht Associates Industries. In terms of profitability, I would say it's a solid quarter as we're also handling the efficiency we are managing to handle some of these losses. So some of the or all of that we have within the past year. So finally, during the dialogue, I have to say, it's pleasing to see that our private labels are doing really good. We've added more brands into our private label portfolio and it's pleasing to see that the consumers are rewarding us for that. And our growth rate is healthy, and we're now at approximately 29% share of sales. That was the first part regarding our key numbers and key ratios for the quarter. I will hand now over to our CFO, Alex Mon, who will cover the 9 months and some of the financials. Thank you, Carl. To summarize the 1st 9 months, we had a fairly good growth of 6.9 percent and our like for like store sales increased by nearly 6% in the period. The operating profit amounted to SEK 1,488,000,000,000, which is in line with our full year forecast. The operating margin is mainly affected by our online operation, future ventures and family history. And as we can see, the operating margin is well in line with our long term loan of 4%. Then take a look at the cash flow in the quarter. We had a very strong cash flow in the quarter, which is explained by the good underlying results. In the quarter in the Q3, Nordiskoorten got approval from the EU submission to a 5% 9% of the euro cash. And this transaction had a positive impact in the investing activities in the quarter for us. We have also managed to reduce our net debt furthermore in the quarter. And at the end of the September, we had a net receivable position of If we then take a look at, as a net debt, development over a little longer time, we can see that we have a net dividend in the quarters and exactly for the Q1, but it's explained by the dividend and so the investment, especially this year, we have acquisitions that had affected the Q1. And if we you can see in the chart, our equity ratio follow the same pattern. We have a long term goal of the exploration to be above 25%. And that is well met even in the first quarter. Then we go over to the investments in the quarter. We have additionally invested SEK 204,000,000 in the Q3. And for the whole period, we have the total investment of approximately SEK 1,650,000,000, all this SEK 1,500,000,000 for acquisitions. The remaining CHF 518,000,000 is a little bit higher level than recent years. And it's in both in the stores and in the wholesale operation. Company. And we reiterate the guidance for the full year to be between 800,000,000 €900,000,000 euros stronger. And that is to be in the lower risk. And with that thought, I hand over to you. Thank you, Anders. And so let me now continue and move into the strategic outlook for Axios. And I have to say, first of all, now I've been with the company for approximately 7 months. And I also have to say it's been a very stimulating but also intense period. Intensive as we have as you have seen and I can see noted, we have full suite in many of our initiatives in the company. 2nd, also, as we ask everyone else in the food retail business today, we're in a very interesting time with some feared trends going on for the future, trends that create some challenges, but also very much some large opportunities. And I'm not going to cover all these trends in detail. We will have a Capital Markets Day later on in November that will be a little bit more. But clearly, urbanization, the consumer shift towards the more towards more meal solutions, increased price transparency, digitalization and a clearly more conscious consumer in regards to sustainability are clear trends that we need to address. And when it comes to sustainability, it's not only the awareness and interest on how food impacts our health, but also how food is produced and what impact it made on the planet. So with this in mind, we and our leadership team have revisited our business concept, our vision, our mission, our strategy framework to address our way forward. And I will keep coming back to these strategic areas further down the road. So today, I would like to take the opportunity to briefly walk you through the update, what we have done and what we have included. So started then with the heart of our business, our business concept. And for us, it's really part of the house of brand strategy, I want to say. Our business concept of a family, of successful and distinctive food concept in close collaboration. And as you can see on the slide here, we now have a family of strong brands. We've added some of some concept as well to this portfolio. And one of the strengths we have, obviously, is that we are collaborating with particularly within Dalia with the logistics, with the sourcing, with the range. But also, our IT platform is a core strength for us as well as business development where we learn from each other and take opportunities to have. So this is clearly a concept for us that we can be doing for the future. Moving on from the business concept into the mission or the purpose of our business. And we are clearly dedicated to a mission to the customers in terms of that we believe that every customer can ensure they enjoy an affordable, good and sustainable food. And obviously, this is important today, but we it will be even more important for the future. So how can we help the customers and everyone that the customers could be able to afford good and sustainable food within all our brands. That leads to our ambition in terms of our vision at FMS that we want to take a lead in this. We think it is important today, but it will be even more important as we go along and as the customer is becoming more and more aware of sustainability and what we are eating. So our vision is that we will be the leader in good and sustainable space. Moving on to our strategic areas, which obviously is there to help us deliver our mission and our mission statement. And what we have done, we have divided our strategic into 6 focus areas, which is clearly divided into how we are meeting the business. And within these 6 areas, obviously, sustainability goes across the line. And we will come back to this more and more later on. But the areas are in terms of our customer offer, our customer meeting, our expansion, our supply chain, our work approach and obviously, the most important aspect we have are seasonal. And I'm not going to go through all of them in detail today. But if you look at our customer offer, obviously, what is important for us is that we offer an attractive, efficient range within the sustainability that is broad and affordable in terms of goods and service. Looking at the customer meeting, which we all think clear and if you're in the retail business, it's one of the most important things you have. We want to, through our different brands and concepts, meet the customer's different needs, obviously, anytime, anywhere in the channel of their choice, we want to be flexible and be able to communicate them on their needs. Expansion, you've seen several areas recently in terms of access, how we are expanding. And it's clear for us that we want to grow and expand in our existing markets, We'll also do that through establishing new stores, but also it could be also new segments or new sales channels like the online. And we want to develop new categories and new services as well. Being on the retail, the supply chain part is very much driven for us from the start to the end in terms of the same as our focus, but also obviously with high focus on efficiency and quality across the whole wholesale working. And the work change, work approach for us is obviously to develop an innovative customer change oriented organization that works efficiently, where cost controls remains very much impulsive. And we are stepping into this area as well in the digital world where we are getting more and more digital growth in terms of our work. And finally, it's very easily said, Axle will attract, recruit and develop the best people in our business in terms of focus on our people. Now these are the strategic frameworks. What we then will be more important, obviously, what we put into this. And that's where we're working in terms of how we are assessing every year, what are the key areas, how we're going to prioritize it, so we make the prioritization across the line more efficient as well as we go more together and get incentivized a bigger impact. We'll come back to this more later on, obviously. But just to give you a few examples in terms of some of the progress we've done in some of these areas and starting them with the customer offer. And really simply, the end should vary with veggie as an important part, where we are now making more alternatives for the veggie variant alternatives and making it easier for the consumers to find these products. We also launched more Vebi alternatives where we have been more innovative through our own brand, Daram. And recently, we've done some steps in our sustainability in terms of packaging. And we actually have been we are one of the first out we're actually the first out in terms of the food bags that you find in old retail or food stores today that we are now moving from into bio material. It's obviously a good step in reducing our impact in the plant. So moving on then to some examples from the customer meeting. I'm sure this will be something we'll come back to later on. But just a few comments regarding this. This is about, for us, an omnichannel structure, obviously, where we're continuing to invest in terms of how are we meeting our customers in the stores, where we've seen that we are refurbishing a lot, and continue to do that. That is a important part for us. We also initiated some of the work regarding the last mile as we have acquired Mazda 50s with their transportation, called Carlos. So we're starting to collaborate as with some of our other resellers where we are using the same transportation. So this is a step by step approach. So we're getting more and more integrated in these parts. Last mile is and this seems to be an important part there. We're also rolling out the online offer to more citizens, to more consumers. And small parts, but we are seeing we are starting to develop synergies across the brands where if your customer is not successful, you will now start to buy some of the range from our Urban Belly range So some of the products that we offer, we can also That was part of the strategy and some other way forward. If I now turn page, we have today also announced a reorganization plan that we have managed to do within Axis and Airbus. To state this, it's more of an internal with limited impact on Akzo as a whole. However, longer term, obviously, we think this will put us in an even better position to drive this. And for some of the audience here, it obviously will have some impact on our reporting segment. So I'll try to publish this to the release so you'll follow what we are planning to do. Let me just give you a quick background on Axford Nelis. Today, this is how the structure looks like where we have 3 business areas. We have Sempco and Hamdan. We have a clear business to business where, as I've shared before, the convenience sector is very much linked to. And then the third part is from Snabios, which is focusing very much on the capital investment. So the reason why we are looking into this is very clear. We want to strengthen our business, very clear on that. We want also to capitalize on the strength that we have in Dargas, which is a very strong nationwide wholesale operation, and we want to capitalize on that and use that strength. We also want to increase our efficiency, and we also see an opportunity for us to increase in our reporting line. So in short, what I will do. The Tempur business today, representing approximately 150 stores, will be included into our handset operation from last year to recent months. Nellies customers, the other one, mainly convenience stores and related to the business to business, we'll move into a new business area within Dargah that will handle S-twenty five. And Smabios, finally, will be reporting as a known segment, reporting directly up to afterwards, report in Q3 myself. So step by step in detail, with a more in detail, PEMCO. Already today, we have a lot of collaborations between Tempo and Hemship, where we're using some of the resources we have. And obviously, by linking them together, we see even further opportunities in this, where we can strengthen the resources that we use for both Hempshaft and Tempo for under the stronger out of market. We think this will benefit both to the brands that are very strong. Snubdrols, by putting Snubdrols as home segment and placing our managing directors today, Sonali, as managing directors. So Sandoz puts the focus for us in terms of how we want and how we can accelerate this part of the business. It's a very clear link to Snagro brought into the fast growing cafe and restaurants. We can see an interesting feature here as we want to continue further in the forecast. And finally, as I mentioned, we have a very strong wholesale operation with this product. And we are now have been seeing that this has been handled on different areas within Haxby. So we are now gathering all the external customers into 1 new business area within Daga. Obviously, because this is also very much related to logistical work for this segment, how we can improve logistics. It's more of a wholesale operation. So this is now we are setting this up. And obviously, we have strong belief that with this step, we will improve our customer support and also become more efficient over time in the company. So for some of you here in terms of what is the impact of this. Well, first of all, it's more or less neutral practice as a whole. Long term, as I stated, this integration since we are successful. Now by detail on this, the sensible profit will go into Hampshire. That is previously then Now the sales has always been dargets, so that's and then and therefore there, so this is the business, will then be as to the profit as we go to target, same sales listed as it is today within BDC. Brazil. So we are that's when we get the processing sales in 1 month. And then Axis Navios will have its own reporting segment. So then combining also the fact that we are now losing the MatHem business. So if we don't we don't see for you when we look at this any large variations due to this. We will come back later on in 3rd quarters regarding some of the differences of how we see how this has impacted. But overall, again, we're not going to make So that was the restructuring part in terms of NALIS. If you look at the outlook for 2017, well, our forecast, we are we stated in our forecast that we are focusing on growth and new investments. And the forecast is an operating profit in 2017, which we endeavor with the outcome of 2016. So as you know, it is the same And if I then summarize my and Anders' presentation in terms of Axos, I think we are leaving a strong quarter behind us, both in terms of overall growth, but also clearly in terms of our life to life support. We're actually delivering an all time high profit for 1 quarter, which includes some clear investments for the future as well that is answering our profits. That is also clear, an important part for our agenda overall, how to drive that this way forward. And as our CEO on the Selectronom reported, we have a very strong financial position as a company. It's obviously important that we expect for that. That concludes my part, Cecilia. And we start with questions here from the audience. If that's Yes. Niklas Stefan here from Carnegie. A couple of questions. Firstly, I'm curious about the investments that you're talking about that you've done that have hampered earnings or hampered margins in this quarter. How do you see these playing out over the coming quarters given that the margins are down 35 basis points, but they're still above your 4% margin target. And over the next few quarters here, do you expect investments to be of a similar magnitude? Or should they be granted? I think it's a mix, clearly. If you look at Hampshire, it has been some of the impact from a margin point of view. Clearly, we are not going to see the Hampshire's 50s impact. It's twothree of the quarter more or less. It's been we had the slow growth. So as it takes some time to ramp up the floor fully. The refurbishment program has been big this year. We still have work to do with the refurbishment program program. We're not sure. So we continue to drive that. New stores, and then you need to compare that to that. No new stores at all. Now we have 4 of the 5 stores later on. We'll continue to open up new stores. We'll come back if you die from some number of new stores. We have all the on all both in terms of the few online player, Mazzatese as well as Ville as well as Hempure, has a negative impact, and it's very much volume driven. We see a very healthy growth in these areas. But we also so the more growth we get, obviously, the better the consumption depends on our fixed cost. So the answer, and that is somewhat related to the growth that we have. And can I ask you specifically in this quarter, you mentioned 3 things that hampered margin? How Amtrapped margin. Amtrapped margin. How big or how big share of that was related to the oil and gas system? The hand chest system. No, but I see it is I'm not specifying the other part, but it's from the magnitude of the numbers. You see the profit in quarter is somewhat above €40,000,000 as we've seen. And the sequential if we had around €15,000,000 impact last quarter and it's around €10,000,000 impact this quarter. And can I ask about your relative performance as well? I mean, it's a very strong top line, particularly for Willy. We've seen the numbers from IKEA, Sweden, which is 2.5% cycle life, but 2 percentage points stronger. What do you see in terms of other peers? Not exact numbers, but what kind of trends are you seeing? Is there anyone who is improving the peer rating? Any changes at that? No, I think you see some of the numbers recently did as we do. So what I think is if I look at our performance, the low price segment will really sustain and is having a positive result, but we don't see it to be the best in that part. So in general terms, the recent benchmark against this, hopefully, is a floating market. And I know some of these players in the world to report, and some of them are not. So from a total perspective, we are growing faster than the market. We are pleased to see that. I would also say that the low price segment continues to have a positive growth. Well, in terms of the colleagues or competitors, we have deferred FBM in terms of what they are doing. Obviously, we are keeping track on the whole market and are focusing on our own side. Can I ask about private label sales as well? You mentioned here a record high number in this quarter of over 29%. A couple of years ago, you had a target of 20 5%. You've obviously surpassed that quite a while ago. Do you have a new target for private label sales? I mean, it's been growing now at a pace of around 1% to 2% points per year. Is that likely to continue over the next 5, 10 years? Well, if I look at the history books, I think it was around 2012, the past year, the target in 'twenty five. So the fast answer is no, I don't have any targets to apply to you today. I have the same view on this as I always had intensive private label. We need to focus on developing quality innovation in our own private label. The better we do that, and obviously we have a strong price set point for the consumers and then moving to the private label segment. So the better we do that, obviously, if the customer is rewarding us for that, that is possible. And that said, the mix is also very important for us. It varies somewhat, obviously, out in the different channels. You see somewhat lower fiber laser share and But if so the mix is important that we continue to drive that mix. Then as we've seen the maximum for our sales and private labels, most likely not. Do you see that we're seeing a major jump? Most likely not. But I think there will be a role in the next quarter continues to drive that part of the deal, as I said before, pointing out mid season. And we also do these very tough quarters as well. So we had a strong quarter with quarter, so there's a very strong seasonality effect. So maybe we now take some questions from the conference call. Operator, do we have any questions? If we don't have any immediate questions, we continue with the questions from the audience. Please, Alan, go ahead. Could you give some color on your development pipeline? How fast it can go and maybe which of your concepts going on? Well, we are not saying that in detail more than in general terms that we have a very high growth. But I also have to say, and it's fair to say that we also come from somewhat lower levels. We started hemp just a year ago, really in May last year. So we are ramping up. And as you see, then it's easy to talk about high growth. Mark, like this, we have seen in the market for some longer time. We're continuing to have a positive growth. So overall, we have a healthy growth. And then if I give you one number and one area, that is the sense from the pace that they are coming. And the market is the online market is obviously growing. And I guess that might not be so affected by what competitors are doing. I don't know. But there have been some of your largest competitors removed 5 to 4 for delivery. And is that something that you're affected by? Well, I think you currently see that you have the way you have your sensing your delivery costs, you have one cost for delivery and a package cost of 12. So I mean, the sellers have dealers clear on their pricing model, but they have a 2 year model. And so delivery as well as package pricing is doing really good in the market. You have some players out there that is having a free delivery above the certain level or a free package cost above the certain level. So we need to dig into the numbers in terms of how it looks for 3. And I think the last mile is important part and it's evolving. I also think that all every one of us is working right now on the online for food is looking at the last mile, how to handle that and how to work at the source. Of course, it is a complex part that you have to be sensitive to the zones, and it's a costly part as well for everyone today. So obviously, we are following the market and looking at the market with that perspective. So we and also have different solutions. If you look at HEMSA, they have a 20 Krona our home delivery fee. So it's not major differences in the world. And finally also on How big is this impact? How is the what is the difference in the East Coast? Well, obviously, that's a very good question since we maybe it's easy for me to come back to you on that next year when we're seeing the full year since we've just added a board for 8/1. Although we learned from the history, the absenteeism now has to be a very good one. But One follow-up on Eurocash. Can you please validate some flavor? Did Eurocash add or subtract the margins from little bit and all? That's a very good question. We're not disclosing Eurocast, but if you've seen before, the numbers were very close to each other. So that's kind of the price. Okay, great. And regarding Jogger, could you give us some flavor on the effect over the past 12 months on deliveries to Markham and Markham. So after next year, we must have more than, and we are not disclosing of very smart. But obviously, there is a big 2 customers and large volumes as well as some earnings as well that are dynamic. Okay. And final for me. At least when we estimate internally your price points come online compared to some of your peers, it seems to be sitting below in terms of pricing, since those in delivery costs. Are you happy with this price point? And do you expect this to continue? Or what are the matters to follow? Well, I think it varies. And if you look at the various concepts that you have, drillers are very clear since they're size deficient, and they follow the same size on mine as they do in the So that's we are, I think, well equipped in that. I also pointed out that we have a very strong good and collect parts within the list because obviously this is very complicated, it's possible for us, it's possible for us. The price position in the others are it varies, you would say, not that this is something in the middle of that and sort of Yes. A couple of more questions for me. It's Seth here from Carnegie. Following up on the online business, you mentioned here in the presentation, you said that you had 23 Willy stores with Click and Collect offers and 70 Hampshire with Pick N' Collect. What does that mean? Does that mean you have 40 stores with Pick N' Collect and only a part of them have home delivery? No. What does that mean in terms of Click and Collect offers a number stores. Now as you know, in Billings and Hampshire, the stores also work as kind of a dark store where you're handling all the online or the home delivery part as well. And every one store should cover a larger area. So in one way, we should not look at stores. This is no less than Okay. That's clear. And I'm curious on Willett now where you have passed 200 stores. Do you have any idea of where you want that to progress going forward? Do you see a continued strong expansion of Willys stores? Or is it nearing saturation? Well, we are following obviously the market and seeing opportunities, continue to see opportunities to build it over time. But in terms of guidance, the store expands with that. Well, I was thinking more in the longer term and looking 3 to 5 years ahead. I think if you Yes, but if you look at the real estate concept today, as I pointed out, we are very pleased to see that the customers more and more customers are appreciating the list. We have strong momentum in this. Obviously, we are looking at wide spaces in some areas where we see opportunity. But again, that also links into the market development and how that's also currently is the very safe track on these areas in terms of where do we see growth opportunities, where do we live space? And is there an opportunity for us to add on that? So in the software. Okay. And also, can you say a little bit about this pharmacy system that is acquired? I mean, this is obviously very small. It will take a long time before it has a significant impact, and it's only 28% that you have bought. But I'm still curious about the rationale for the acquisition, if you see that Axle going forward is looking at making 4 similar acquisitions, if you want to branch out into other areas? No. If I first, it's not an acquisition to start up, that we are a part of. And the news that we have now is that we have a name, Alphoham. So and the theme there is very pleased with that. And we are so that is, again, very early, it's an early phase. The reason for accident is obviously the pharmacy market is a very interesting market. I also have a strong belief that it's a very interesting online part of the market going forward. We have a strong customer base compared to some of the other products we have in the market. We want to also include the pharmacy offer as a whole to our customers as well over time. So that's the rationale behind this being part of the flow. And in terms of nuclear acquisitions, I mean this last year has been quite difficult. A lot of assets have. Do you see a lot of In an intense period, in an intense Q1. And so the answer there, of course, we're always open for new ideas and new acquisitions. But I also it's clear, particularly both externally but also internally that we now have a lot to handle and focus on the line that we've done. Thank you. So operator, do we have any questions from the conference call? We don't have any questions from the web call. So there are no more questions from the audience here. I want to thank you for your interest today, and I hope to see you on the 28th November at our Capital Markets Day here in Stockholm. And thank you and have a good day.