Welcome to the Bergman & Beving Q4 2023 report presentation. For the first part of the presentation, participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing pound key five on their telephone keypad. Now, I will hand the conference over to speakers CEO Magnus Söderlind and CFO Peter Schön. Please go ahead.
It's Magnus speaking here, and I have Peter on my side here. So welcome to the interim report for the last of our quarter, the Q4 quarter, and this is actually also a full-year report. So as normal, you are free to put up questions along the way here, and we will try to answer them, of course. But just some highlights from the fourth quarter. I mean, we have some deteriorating market conditions, both within the construction and the industry, especially in the Nordic. But still, we are delivering positive earning trends in this quarter, and we now have 17 consecutive quarters with improved EBITDA profits. And we have a very strong development in two of our three divisions. The Building Materials and the Tools and Consumables division are really performing well. I would say both in terms of profit development, cash flow generation, and margins, and so forth.
However, the workplace safety is not in line with our expectations, and I will come back later on to explain where we are on that. We have made six acquisitions during the fiscal year. We made two each quarter, Q1 to Q3. But no acquisition in Q4. You shouldn't read that that we have lowered our acquisition ambition. It's more the result that we are very quality-oriented in terms of what type of company we would like to acquire and to what type of EV levels and the multiples. So that's more kind of a result of that. So if we look then on kind of the P&L, the revenue, we have a decline of 2% in the quarter. And that is a combination of that. We're still facing out low-margin, high-volume products in combination with a weaker market, then. Both within the industrial and construction sector.
You can see the payoff in the improved gross margin. We continue to improve the gross margin, and we're now delivering a 48% gross margin in this quarter. That's 4% units higher than the previous year quarter. The majority of this improvement is organically. Of course, a little bit spiced by the acquisitions we made that have high margins, typically above the 48% that we have on average on the group level. We also have taken efficiency measures and lower costs in some of our companies. It's really strategy company by company. Some companies we invest for growth and actually do some investments. Companies that don't have the profitability that we expect, they should work on improving the product mix and lower cost.
That, on a total, has amplified that we are close to 10% lower cost organically compared with last year quarter, despite the inflation that we have had since then. And this, in total, has led to that we increased EBITDA level by 12% this quarter, ending up with SEK 160 million. And this also has improved the margin. So it's 1.2% unit improvements compared with last year. We ended up with 9.6%, so we're getting close to a double-digit figure. And still, we are facing higher financial net due to the higher interest rates. So the EBITDA was a little bit weaker than previous year. But going forward, we expect to have an easier kind of financial net to kind of match based on that the interest rate then has been higher for the similar period. We also deliver a very solid cash flow from the operating activities.
It's SEK 101 million. Normally, the Q4 quarter is the weakest cash flow quarter for us, and it's quite normal that we actually have negative cash flow during the Q4 quarter. If you compare with last year, that was a little bit lower. We had SEK 145 million last year, quarter four. But then we have an even bigger effect of the lowering of our stock values that was built up during Corona. So we are very happy of the cash flow, the strong cash flow that we had this quarter. So then, if we look at acquisition, I earlier mentioned that we made six and none in Q4. But I think the key message here is that we are buying highly profitable companies. So to the right here, you can see all of the companies we acquired had a profit margin above 15%.
Profitability-wise, they were all above the 45 target level that we have for the group level. The total amount of revenue is amounting to SEK 450 million last fiscal year in total. If we have some additional comments here. I said it before, but we now have 17 consecutive quarters with improved profit. You can also see on this curve that we have along the way improved the EBITDA margin. As we communicated, we should reach the SEK 500 million EBIT level late fiscal year 2026/2027. Also have an EBIT margin of 10%. So I comment that in the quarterly report that we are following the kind of path getting to that level, both in terms of EBIT in absolute terms and in margin. That's also good, I think, despite the kind of tough market conditions that we're currently facing.
If we look at the revenue, I have stated before, and this is also relevant for this quarter, we continue to prioritize profit growth ahead of turnover or revenue growth. So we had an organic decrease of 12%. And I would say the majority of this is due to the kind of tougher market conditions. But still, part of this is due to we still have some phasing out of low-margin, high-volume products. And as you can see, the acquisition added 10% to the top line, and this in total ended up with -2 in revenue, and we didn't have any currency effect in this quarter. So with that, we also mentioned the gross margin. And also on this slide, you can see this is a continuous positive trend we have in improved gross margin, both on quarterly terms but also on rolling 12. We are now at 48%.
You can see we went up from 38% during the last 3.5 years. A lot of this is based that we have worked with the product mix in all our companies and once again phasing out low-margin products. And as said last quarter, you shouldn't expect this curve to kind of continue going upwards. Most of this phase out has been done now. Of course, we will continue to acquire high-margin, high-gross margin companies. But I think we're getting to kind of a more stable level in terms of gross margin going forward. But some improvement there will be, but not in the kind of magnitude that we have seen historically. And you can also see on the right side of this slide, part of this is also that we have improved the mix in terms of own products. So we are now at 72%.
The target is set to 75% in two years from now. We also can see that we have this improvement that also is kind of reflected in the improved gross margin and such. With that said, I will hand over to the CFO, Peter Schön.
Hi, everyone, and good morning. If we're starting out by looking at the earnings per share. As you can see below, it was SEK 1.70 per share in the Q4. As Magnus said before, it's lower than the year before. It was SEK 1.90. It's due, of course, to the higher interest rates, mainly. Which we expect to stabilize, at least going forward. As you read in the report, the board proposes a dividend of SEK 3.80. That is compared then to last year's SEK 3.60 as a dividend. Increased dividends from the board, even though it's a higher percentage of the earnings per share. Next slide, we'll move into the inventory. The inventory was reduced. Actually, if you look at it, it's organically back to the pre-COVID levels.
But we worked a lot with the assortment, reducing high-volume, low-margin products and decreased safety stock. So we have had a really good effect. But since we worked with these high-volume businesses reducing their sales volume, if we look at the inventory turnover, it's still not on pre-COVID levels. So we are still working on that with all our companies. But as you can see in the graph, it is on a good trend, moving up. So we expect that to continue going forward. We're moving further on to the cash flow from operating activities. It was SEK 100 million in the quarter. And it's a bit lower than the year before, as you can see in this graph. But if you move back to the next previous two years, you can see that that's more of a normal seasonality curve.
The main reason for a weak cash flow in the last quarter is that one of our large companies, ESSVE, is having spring orders that they delivered during the spring, which they purchase going into Q4 and pay to the suppliers. But then when we sell it to our resellers, they try to stock up before the summer. They get long payment terms on that. So the cash gets into the company in June, July instead. Good. Then if we move to the next one, it was on the net debt. As you can see here, we have decreased the net debt. And that is not the goal in itself. I'm actually more focused on the previous slide, the cash flow. So the main thing here is that we still generate good cash flows.
We could even increase debt short-term as long as we have a good cash generation. So we have decreased the debt. And the positive thing here, I think, is that we have acquired companies meanwhile. So acquired SEK 450 million in turnover, but still reduced the debt. And also the net debt EBITDA is going down. So that's really positive. And as I said, it's not our main objective to reduce debt. It's to get good cash flow so we can acquire companies. And that ambition is still on the table going forward. So we have a good pipeline and we'll continue to acquire good companies.
So let's go into the three divisions that are forming our group. The Building Materials division, you can see on this slide here. They are mainly focused on the construction sector in the Nordic, but then commercial building and infrastructure. So they are not so exposed to residential building. That is the segment in the construction sector that has suffered a lot in the Nordic region. But as communicated before, overall in the construction sector, there is a weaker demand. And that is something that, of course, the companies within the group, the Building Materials group, are kind of dealing with. And especially ESSVE then is facing partly a slower demand in this quarter. So the revenue decreased by 9%, but we are focusing on profit. So as you can see, the EBITDA increased 15% in this quarter. And we got an all-time high EBITDA margin of 13.2%.
That's a really, really strong performance, I would say, despite these tough market conditions. This is due to improved efficiency in the companies that we own and in combination with highly profitable acquisition that has kind of leveraged this. If you can see on the graph here on the right side, really the EBITDA margin rolling 12 is having a very positive development over time, as well as the EBITDA in absolute terms. I think we have done a very good job in this division given the tough market condition as such. Our second division, the workplace safety, is also, I would say, the division most heavily exposed to the Nordic in the industrial reseller segment, as well as the construction reseller segment. They have also had a weaker demand in this quarter since the industrial kind of segment has weakened compared with the previous quarters.
So also here we have a revenue decline in the quarter, but also an EBITDA decline and also an EBITDA margin decline. And this is something we are not happy with. We haven't been able to kind of match this weaker revenue with lower cost. And we have some better gross margin in this division, but they haven't improved to the level necessary to match the kind of weakening top line. So we have taken additional cost measures during the quarter that is to be implemented and has been implemented. And we also made a change in division leadership to put some more effort and energy into kind of moving this division in a steadier and right direction. So our third division, I would say, has a lot of similarities with the building material. I would say all the key parameters are going in the right direction.
Here we have some improved revenues, mainly due to acquisitions. This is the division, I would say, that the majority is exposed to the industry sector. So they, of course, also been facing a weaker demand in this quarter. But despite this, they have then increased the EBITDA by 46%. So that's a great achievement, mainly due to acquisitions, but also to some companies in the division that have performed better. And Luna is one of those that is well above the previous year quarter. And here we also now have an EBITDA margin above 10%. They're delivering 11.1% in this quarter. That also is due to the acquisition of highly profitable companies in combination with improving companies within the division. So I'm very happy with the Tools and Consumables division development.
I think it's also good that we are working both on the companies that we own in the division and improve them in combination with doing very good acquisitions. We communicated in November some additional goals. We previously had the EBITDA of SEK 500 million latest fiscal year 2025-2026. We added the EBIT margin should be above 10% the same year. And then the profitability target that we have, profitable working capital of 45%, should be reached one year later. And that is the target we phrased as 500/10/45 . And this will be achieved by continuing to acquire. And this is the ambition we have this fiscal year, to acquire SEK 50 million-SEK 80 million in combined annual earnings and focus on own product companies. We have 72% now, and we should aim for the 75% in two years' time. Those targets are still valid.
We are currently on the path of delivering on all those targets in the set time frame, despite the tough market conditions. So we don't see any reason to kind of change those ambitions. And as Peter was mentioned, we have now proposed a dividend of 3.8% SEK. That's a little bit above the interval 30%-50%. I think it's 53%. But we stated that that is over a business cycle. And we were a little bit lower than the 50% previous year. But this is also kind of a signal that we are very confident with the debt situation and what type of cash flow we can generate and still deliver on the 500/10/45 targets. So how should we reach the 500/10/45 ? There's actually nothing new on this slide compared with previous quarters. It's about doing what we always are doing.
It's prioritize profit expansion over revenue expansion. It's to make sure we allocate capital in the proper way. And we are using our Focus Model to make sure we are good in allocating the capital to the companies that we see the best profit growth opportunities. And it's really company-by-company strategy. I mentioned earlier, some companies are reducing costs, focusing on improving the product mix, improving the gross margin, and actually decreasing the revenue. And that's the result you can see in the organic decrease, partly. But there's also some companies that have all the kind of financial parameters in place. And here we invest for growth, expanding the business, and really try to grow the top line. And we have some good examples of that also in this quarter. We also like to support our companies in their journey. So we have our Bergman & Beving Toolbox.
I mentioned that before, and we don't have the time to go through all the things to have in that toolbox. That is a very appreciated tool that we have that our companies can use to kind of reinforce the development in the group companies. We continue to acquire companies, focusing on profitable B2B companies with leading position in expansion initiatives. On top of that, we have some specific group team that is based on where we are and how we feel the market conditions are going forward. We really focus on cash flow and increased liquidity. Peter mentioned the stock level and the ITO. We are still not on the pre-Corona level. We still have some work to be done there. We have done a lot of good work, and that has generated and freed up some cash. We are not done yet.
That's something we will continue to work on. We are still cautious with asset investments based on the kind of market condition as such. We really scrutinize all the investment that we're doing and are very cautious and make sure we do investment that allocates capital in the right direction in terms of what companies to invest in. We still have a tight cost control. We don't expect the market to kind of pick up in the next coming month. Hopefully, we will see a pickup in the autumn, but that's too early to say. We really make sure that the companies have a very tight cost control. Some companies, as mentioned before, have taken some cost measurements reducing costs. As mentioned, the workplace safety has during the last quarter taken some additional activities in reducing costs to match the weaker demands.
I also showed the strong gross margin development that we had. But we also make sure that we protect that gross margin. And that's implied that we actually will have and will make some price adjustments during this year. It will be in a much smaller kind of attitude compared with what we've done historically, or I would say during the Corona situation. But we still need to increase prices in a few percent units to be able to kind of protect our gross margins. So with that, that was all we had for this quarter. So we now open up for questions.
If you wish to ask a question, please dial pound key 5 on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key 6 on your telephone keypad. The next question comes from Zeno Engdalen Ricciuti from Handelsbanken. Please go ahead.
Yes. Good morning, Magnus and Peter. Thanks for taking our questions. I would like to start out in workplace safety primarily. Based on what your company's heard from their customers, how do you basically expect the underlying market to continue? Do you expect it to get worse kind of before it gets better? You mentioned the autumn.
Yeah. That's a very difficult question. But currently, I don't expect it to get worse in terms of demand, but not even better. So I would say it will continue on this level. That's my guess, at least up until the autumn. And then hopefully, we see a stronger demand. But that's too early to say.
Thank you. Just on the cost savings you did in this quarter, if you could quantify or give some more color on it, and if you expect it to have more if it didn't have full effect in this quarter, so to say, if we look ahead?
Yeah. Along the way, the last fiscal year, we took, I would say, each quarter additional cost measurements and activities. So some of those activities and actions taken, you haven't seen yet in the cost base. So there is a lag from the point we take actions till you actually see it in our cost base.
I see. And just lastly, on the M&A where you commented on the quality, maybe not in this quarter of the companies you looked at being where you wanted it to be and multiples maybe a bit demanding from them, would you say that this is just company-specific or is there any red thread to a change or similar?
No, it's company-specific. I mean, we made an acquisition 1st of April, the first day of this quarter. So you shouldn't read into anything in this lack of acquisition in the Q4 quarter in terms of our capacity or capability to continue to acquire along the target of the SEK 50 million-SEK 80 million earnings per annum.
Very good. Thank you. Those are my questions.
Thank you.
The next question comes from Emanuel Jansson from Danske Bank. Please go ahead.
Hey, good morning, Magnus and Peter. I hope you can hear me. I think I got good morning. I have two questions here. I think we can follow up maybe on the M&A agenda and also on the financial target here on reaching SEK 500 million in 2025-2026, right? Do you still estimate that about two-thirds will stem from M&A and the one-third will stem from organic improvement going forward?
That's a very good question. I mean, that is kind of the kind of ambition we have over a business cycle. And going back to the question, when will the demand pick up? I mean, we are now in the first quarter. The autumn will be in our third quarter. Of course, if the market picks up in Q3 and Q4, then we will have a very good position organically to grow profit because a lot of those cost reductions we have done, a lot of the product mix improvements we have done will remain when the market picks up. So then we will have a very good effect organically on the profit growth. So that's kind of the million-dollar question. I can't put this kind of percentage in this point in time.
That is kind of a target we have once again over a business cycle, but that will be very dependent on the underlying market development during this fiscal year.
Okay. Perfect. That's clear. Do you also think that when it comes to in terms of M&A, that you have a good pipeline in order also to deliver on these targets, or do you still need to search and look for companies?
I mean, it's a continuous process. I mean, we look at more than 100 cases per year. Once again, we are very rigorous in making sure that it's the right type of company and we get the right valuation in the end. Currently, I feel confident with the pipeline that we have that we should be able to deliver on the targets we set, i.e., the SEK 50 million-SEK 80 million earnings per annum in acquisition contribution.
Okay. Perfect. I think last question from my side here. Looking at the Tools and Consumables division, you have worked throughout the last couple of years here with phasing out the low-margin, high-volume products. I think soon we'll start to also face kind of maybe easier comparable numbers year-over-year, given the organically improved development in this division. Do you think also that it's fair to assume organic maybe sales growth from the autumn here, or will we be able to see that earlier in this division?
Yeah. That also will depend on the kind of underlying market. The Tools and Consumables is mainly exposed to the industrial sector. And the industrial sector kind of demand was quite stable up until autumn last year. And then it started to weaken. And we see this weakening trend also in the Q4 quarter. So if we then use the Q1 and Q2 as comparable quarters, they were quite strong or at least stable last year. So I think that effect you will have in the second half of this year then.
Okay. Perfect. The trend going into Q1, is that a similar way in the Nordic market as you have seen in this quarter?
Yeah. I would say, once again, I expect the Q1 and Q2 quarter, our fiscal year, to be on the same level, roughly market-wise, as the Q4 quarter.
Yeah. Okay. Perfect, Magnus. Thank you for taking my questions.
Thank you.
The next question comes from Markus Almerud from Carnegie. Please go ahead.
Yeah. Hi, gentlemen. Can you hear me?
Yes. Hi, Markus.
Yes. So I'd like to start maybe following up on the demand discussion and demand question. If you could, when you say that you don't expect demand to get worse, but maybe not also get better, then we'll see in the fall if it'll pick up, do those comments go for both industrial and construction, or do you see it different there? And maybe more specifically, have we seen any further acceleration downwards on industrial where I would assume that construction has been quite stable? Just elaborate a little bit on what you've seen.
Yeah. Once again, this is a guess game. If you look at the construction sector, I mean, the big settlement has been in the residential building segment. What we see, that will most likely pick up already during the next month from a very, very low level. But before, we are not especially exposed to that segment. We are more exposed construction-wise to kind of industrial and infrastructure segment. They have been quite stable, actually, maybe in some instances, some weaknesses. So overall, I don't see any big difference. I don't expect any big difference in kind of the development of the demand in the segments we are exposed to, both in the industrial and the construction sector.
Okay. Because you were also talking about spring orders. You mentioned the spring orders. And we've been talking about that for the past couple of years in this period of time. And you said here that spring orders were kind of are they coming back? That is, is there a little bit more optimism in that part of the value chain that they're ordering more now than they have done in last year and the year before?
The so-called spring orders related to our company ESSVE that is selling fastening products. What typically happens is that the reseller builds up a stock of fastening products for the spring because then it's the biggest demand on those type of products. During this period or this kind of spring order period, we have a weaker demand on those products compared with last spring order period. We don't see any kind of strengthened demand in that segment in this year.
But one important thing there is that the resellers put their orders in to ESSVE in August, so last year. So it's not really a good yeah. It's not a good temperature indicator, you can say.
Okay. Okay. And then I have a question on interest level. I mean, interest keeps rising, and now interests have come down a little bit. And you're talking about stabilizing. Would Q4, you say, is it clean enough to use as a kind of reference point going forward in coming quarters and going into next fiscal year?
Yeah. I think so. We did have a bit of an exchange rate variation of about SEK 5 million maybe in the quarter. So it was maybe a bit high, actually, to use as a reference, but.
Okay. So a little bit lower than this quarter we're looking for.
A little bit lower. Yeah.
My final question is just, I was curious about this internal education that you have on your targets and especially on the R over R co. When did you start this, and have you seen any impact of it already, or is it still to come?
I mean, this business school that we launched two years ago, it's part of a greater kind of agenda. We have really enforced the companies to understand how we should allocate capital through our Focus Model. And part of that is to make sure that the management in all companies understand the logic and what action activities they should prioritize based on how we allocate capital. So this kind of business school that now 20% of all our employees has kind of been through is part of the agenda to make sure that our capital allocation, the understanding, and actions is in line with our Focus Model. Actually, I will go to London this evening, and I will participate in U.K. business school tomorrow, actually. It is. So this is a continuous process. And new companies, of course, as well as current companies, are participating in this business school.
It's an important part to make sure that we get acceptance and understanding for our Focus Model.
But it's more of an evolving kind of thing, part of the long-term agenda than new initiatives.
Yes. Yes.
Okay. Okay. Perfect. Excellent. Thank you very much.
Thank you.
The next question comes from Karl-Johan Bonnevier from DNB Markets. Please go ahead.
Peter, I wonder if you could start, maybe give us an idea of how big a headwind you saw from phasing out of low-margin, let's say low-margin, high-volume products in the quarter so we can get some grasp of how that 12% decrease is built up, so to say.
Do you mean those organic top-line decrease of 12%?
Exactly how much that is saved. How much is it due to, say, market environment? How much is your decision to leave products?
That's also a difficult question because we don't have exactly the detailed information, what is what here. But on an overall level, I would say the majority of those 12% is due to the market, a weakening market. I expected the market to be maybe 2/3 of that, that's my guess. And 1/3 is the kind of phase-out effect.
That's fine. If you look at the same kind of comparison during the fiscal year, is that because I remember you have now talked about these phase-outs, obviously, for quite some time? Is that impact decreasing as you see it going through the year, or as you now indicate that we might even be through it to some extent?
No. If we would compare with the Q1 last fiscal year, the majority then was phasing out or low margin. So we have communicated earlier with the end phase of this phasing-out process. And that's why also you shouldn't expect the improvement path of the gross margin that we've seen historically because that is the main effect you see there in the improved gross margin of this phase-out. And that will again level out now.
Yeah. And that looks very, very healthy, obviously. And also take your view a little on obviously, a fantastic turnaround of the Tools and Consumables and getting good comments about what you have achieved in Luna. And if you then compare the situation that you are now facing in workplace safety, is it a question of also maybe going through the Skydda platform much more aggressively also to get that going, or is there other things happening in the workplace safety area that needs to be considered?
Yeah. That's correct. Skydda is one of those companies that need to perform better than they have done the last fiscal year. But we have some other companies as well in this group that need to improve. So it's not only a Skydda topic. It's some other companies as well that need to step up.
You mentioned in workplace safety that obviously, it's a reseller focus, and some of the resellers have been cautious and also obviously seen decreasing volumes. How has the number of listings for workplace safety with the resellers worked out during this period? Is it increasing, decreasing, stable? Because I know a couple of them are really focusing on trying to get their own brands into their operation in this area.
You're meaning if we lose market share?
Yeah. Relative space, at least, with them, given that there's, I guess, a volume component to it as well, so.
If we look at the customer base within the workplace safety and the product companies there, I would say it's a zero game. It's kind of moving materials. So in some situation, we kind of lose some market share, but in some, we gain some market share. So on a kind of aggregated level, I would say it's kind of a zero game.
Excellent. No, no. Then it's down to also the market recovering that to some extent is going to help you, so. And when you look at the quarter, I saw that Finland was very weak. Obviously, that's where you have the weakest consumer confidence numbers also coming out. But was there a huge strike impact for you there hitting the quarter?
Yeah. It was also partly some effect of the strikes.
Yeah. It affected the deliveries mainly. It was a logistics issue.
Do you dare to quantify it in some way?
No. No. I don't think we would. Yeah.
You shouldn't put any big number on that.
No. It's not the biggest companies, but of course, there are some, take, for example, Polartherm. They couldn't deliver in March because the harbors were affected by the strikes and so on. So it was companies like that.
Excellent. And one final for me. Looking at the 500/10/45 target, I get the feeling that the 45 that you obviously are talking about a year later looks to be the real challenging numbers to meet to some extent. Could you just describe maybe what kind of evolving you have had on the business unit level of the amount of turnover or the amount of business units that are already above the 45% and then maybe allude to what kind of extra strategies would be to get the ones that are not up there yet to get there?
I mean, as you saw on this acquisition slide, we only acquire companies that are above the 45%. So that, of course, will help over time. And then we have our Focus Model where basically, if you're below the 25% profitable working capital, that's Profitable Working Capital, we don't want the company to grow revenue. We would like them to focus on improving their product mix and reduce costs. And that is, for example, the agenda of Luna. And as communicated, they have a significant profit increase this year and this quarter compared with previous year, along with improved working capital efficiency. So it's kind of we are moving companies slowly but surely towards the 45%. But I agree with you. That's, I would say, the most challenging target of those 500/10/45 .
But we have a good improvement of 5% units on this profitable working capital on a group level this fiscal year. And we need to kind of increase that path during this fiscal year. But I think we have some very good actions in place. And I feel confident that we should improve our speed of improvement in those aspects. It has been a long journey, I would say. I've been now with the group for three years and introduced this Focus Model and capital allocation two and a half years ago. And it has taken time for everyone to understand and accept and act accordingly. And now, I think we are getting there. And we all have seen some effect of this, but I expect that we should see even greater effect of that going forward.
Excellent. I know focus normally pays off, doesn't it? Could you allude to how many of the business units during the last fiscal year was above the 45% level?
If you look at the full fiscal year, is that the question, or?
Yeah.
Half of our companies.
Because I saw you mentioned a couple of success stories in your CEO statement as well, showing the width of things that needs to happen to get things going up there.
Yeah. And that's correct. I used that to kind of everyone to understand how we work with this capital allocation and the different agendas dependent on how profitable you are.
Excellent. Now, it sounds promising. Thank you very much for all the answers. Welcome to London, Magnus. Hope you get a good teach-in here, so.
Yeah. I'm actually going to the Cambridge area.
Not surprised. Not surprised. Good to hear. All the best out there.
Thank you.
Thank you.
As a reminder, if you wish to ask a question, please dial pound key five on your telephone keypad.
What I can see, we don't have any additional questions. I would like to thank you for participating in this session. This is kind of the last chance to put any questions on the table here.
There are no more questions at this time, so I hand the conference back to the speakers for any written questions or closing comments.
I would like to thank you for participating and looking forward to talking to you later on the development of Bergman & Beving. Thank you very much.