Q2 20/21

Apr 13, 2021

Hello, and welcome to The Dustin Group Audiocast with Teleconference Q2 2021. Throughout the call, all participants will be in a listen only mode and afterwards there will be a question and answer session. And just to remind you, this conference call is being recorded. Today, I'm pleased to present CEO, Thomas Aikman. Please go ahead with your meeting. Thank you very much, operator, and good morning and most welcome, everyone, Both of course are existing and new and potential new shareholders to our Q2 presentation and conference call. Hope you all have had a good morning so far. Here on our side of the call is myself, Johan Sjekmann and Johan Karlsson, CFO and also Peryk Satstrom, Head of IR in the room as well. So today we present our Q2 results for our fiscal year 2021. And we are continuously navigating Our sales in our different markets through the current conditions. I must say I'm very proud of our achievements and everyone adapting for their strong contribution in helping and supporting And continuously enable our customers to stay in the forefront, especially also now when you see that the hard work also shows up in the numbers. We as you know, as you have seen, we have also announced an acquisition of Central Point in the Netherlands in the Benelux region today. And we will, of course, come back to that later on in this call. But let's first just go through the quarter in brief. And if we look at the quarter then, I should say that we have started we have strengthened our position in the markets And we report an organic sales growth of just over 6% for the Q2. Our productivity and strong position in the value chain, of course, Our performance in the market, which has been impacted by component shortages and supply chain disruption due to the pandemic. This in combination, I should say, with a strong cost focus resulted in an adjusted EBITDA increasing more than 30% and the EBITDA margin strengthening to 5.5 And in addition, of course, our online core business performed strongly in pace with the higher share of online retail and greater need for mobility, Cloud service security and driven by the underlying strong trend. And continuously, as I also mentioned in the previous quarters, I mean, the 5 market trends that we build our strategy on, The online shift to growth mobility, cloud services, demand for predictable IT cost and focus on security and integrity. And last but not least, of course, sustainability, they have all Sky rocketed during the pandemic and making of course our long term position even stronger. But with that said an introduction. Let's go over to Slide 2, Dafy Netgalans. Most of you know us, but just briefly as a refresher, And we are by far the biggest retailer in the Nordics and also in the Dutch in the Benelux region with a large Assortment, fast deliveries, great customer support and competitive pricing. Sweden is biggest market in the quarter here with 40% of sales And then the other Nordic countries between 201520. Netherlands, which we entered then a little more than 2 or 2.5 years ago, soon 3 years ago, It's currently 7% of sales, but we should of course be more now with Central Point. So that is shortly about Dostin. And moving on then to Slide number 3 for the financial highlights To see how we are improving and performing now during Q2. As said, we continue to strengthen our total market position. Net sales were SEK3.6 billion, up with 4% versus last year. The organic growth of that was SEK6.4 of which SMB showed a positive 8.3%, LCP 4.9% and B2C 5.5%. So overall, strong organic growth for all segments with an increased activity level among all our customers. Gross profit was SEK591 1,000,000 compared to last year's SEK557 1,000,000 And that gives us a gross margin of SEK 16.1 million, up from last year's SEK 15.7 million. And as said earlier, our adjusted EBITDA increased with 30% and came in at SEK 201,000,000 SEK versus last year SEK 154,000,000 and that then gives us the adjusted EBITDA margin of 5.5% for the quarter versus last year's Last year, it's 4.3%. So overall, strong performance and record earnings, which is, of course, really good. I mean the margin improved by, of course, good performance, but also on the structural changes that we're doing combined with continued good cost control within all segments. Both SMB and S and P showed good progress in the margin uptake. And then consequently, EBIT was up SEK177 1,000,000 compared to last year's SEK133 1,000,000. Cash flow operating activities was SEK 218 Compared to last year's SEK155 and EPS earnings per share also up to SEK1.38 per share versus last year SEK104. And our leverage in the very lower part of our target at 2.0 versus last year's 3.1. And as you know, our leverage target between 23. And apart from an intense quarter from an operational perspective, we have as previously announced, we closed our Central Stockholm due to the changed customer behaviors and we have launched E2 Workplace, which is a true online service aimed towards smaller SMBs. And of course, as announced today, we have acquired Central Point in the Netherlands, giving us a leading position and we become an IT powerhouse not only in the Nordics, but also in the Benelux. But we will come back to that as I said before. But let's just briefly go through the segments. Johan, can you take us through the different segments? Yes. Then let's move to Slide 4 and SMB segment in some more detail. Sales for the quarter in SMB was SEK 1,615,000,000, which is an increase of 6.9% over last year, representing an organic growth of 8.3%. Sales growth continues to improve quarter over quarter despite challenges in the global supply chain. During the quarter, we saw good sales development In all the hardware categories from all customer groups in the segment, recurring sales of services is slowly coming back after last year's negative effect from the pandemic and grew by 6.3% in the quarter to an annual sales rate of 838,000,000. We saw positive Sales numbers in all countries with Norway and the Netherlands performing particularly well. The project related installation and services was still suffering from people not being in the office. However, situation is getting better and we saw a slight positive trend quarter over quarter. Segment margin for the quarter was 10.6% compared to last year's 9.3%. The main reason for the good margin was Strong sales of private label products and higher pricing levels in the market due to shortages and the effects from our cost efficiency initiatives. This was somewhat offset by lower sales of high margin projects related to services and advanced hardware. The share of software and services was 21.6 percent, down from 22.8% last year, mainly due to the strong hardware sales this year. In total, segment results ended at €170,000,000 compared to €140,000,000 last year or an increase by 21.6%. Segment margin at 10.6 percent was 1.3 percentage point higher than last year. All in all, a very strong quarter for SMB, both in regards sales and margin. If we then move to Slide 5 and the Segment, we can see that sales in NCP was SEK 1,894,000,000 for the quarter. This was an increase by 1.7 percent, of which 4.9% was organic. During the quarter, we saw continued good sales to the public Customers with strong performance in Norway and Denmark. Sales to the larger corporates declined slightly as they were affected negatively by both component shortage and delivery issues. This effect was stronger for the larger corporates than it was for public customers. Segment margin ended at 7.2% compared to last year's 6.3%. The increase over last year is mainly explained by generally improved Margins in some of the larger contracts, scale effects from higher volumes and effects from last year's cost efficiency activities. Segment results improved from last year's $118,000,000 to $136,000,000 or about 16.4 percent, continuing the strong performance we've seen in the LCP segment during the last 5 quarters. Moving on to Slide 6 And the B2C segment. B2C had a strong quarter from a profit perspective. Sales was up from SEK169 1,000,000 last year to SEK 175 1,000,000 this year, representing a growth of 3.3 percent, of which 5.5 percent was organic. The main reason for the sales increase was strong underlying demand for home office equipment and gaming. Segment margin was up from 5 0.4% last year to a record high 8.6% this year. Good product mix and high price levels due to the shortage of supply in the market contributed to the good margins. Leaving the B2C and moving on to Slide 7 and net working capital. So net working capital was negative SEK 549,000,000 compared to last year SEK 154,000,000 Negative last year. We continue to deliver low working capital numbers as we use our strength in the value chain to get good terms with customers and suppliers. Further to that, we have utilized the opportunity made available by the authorities in our markets to delay tax payments of SEK 135,000,000 All in all, this has made it possible for us to maintain the low level of working capital in Q2. If we look at the details, we can see that inventory increased in the quarter to €575,000,000 compared to €495,000,000 last year. The main reason for the increase was higher purchase volume due to our asset as an activity to mitigate the risk of shortage of components. Also the higher sales of private label contributed to somewhat higher payment levels. Accounts receivables was up with 88,000,000 as a result of higher business volumes. And if we look at accounts payable, we increased €236,000,000 mainly as a result of the actions taken last year during the pandemic. In total, we continue to see strong performance in the area of working capital and remain at the level of Q1. The leverage at the end of Q2, as Thomas mentioned before, was 2.0, where our target is to be in the range of 2 to The main reason for the decrease compared to Q1 is a stronger business result. Moving on to Slide 8, cash flow and investments. So cash flow for the quarter was negative SEK 32,000,000 compared to last year's negative SEK 9,000,000 Looking at The parts of the cash flow, we see that cash flow from operating activities before change in working capital was SEK 207,000,000 compared to last year's SEK 159,000,000. A change in net working capital, slightly positive, plus SEK10 1,000,000 this year compared to negative SEK4 1,000,000 last year. And cash flow from Investing activities was negative SEK 18,000,000 compared to negative SEK 123,000,000 last year and last year's numbers was affected by earn out payments in that period. Capital from the financing activities was negative SEK 231,000,000 compared to last year's negative SEK42,000,000 where the main reason was that we took up a new financing last year of SEK 256,000,000 in the period. Total investments for the period amounted to €43,000,000 compared to last year's €216,000,000 CapEx related to IT Development amounted to €9,000,000 which was the same as last year. And investments in tangible and intangible assets decreased From SEK 191,000,000 last year to SEK 23,000,000 this year as last year's numbers was affected by prolonged rental agreements. Investments in assets related to services or service delivery was €5,000,000 compared to €11,000,000 last year. All in all, EUR 18,000,000 of the EUR 43,000,000 in CapEx was affecting cash flow. The others were changes in lease or rent contracts. With that, moving back to Thomas. Good. Thank you very much, Johan. And continuing then On over to Slide number 9 and our updated sustainability targets and commitments. And just to highlight a little bit on our work here. I mean, in the previous quarter, I explained more in detail about our 0 carbon emission target as well as our ambition to in creating a fully circular offering by 2,030. Today, I also want to highlight our work Within our 3rd target, there are 100 initiatives for social equality. And again, all these three commitments, they are designed to redefine the impact of our And how we behave and how we act. And it will, of course, naturally involve innovations and solutions with all those around us throughout our value chain. And as always, we believe that hard work will pay off and these commitments really keeps not only us, of course, but also our whole sector moving ahead. If we look at the 100 initiative and 100 actions and to set those, we start off this year We're setting 10 of those and let me just briefly go through some examples of that. As you can see on the slide, we will work to close the generic Pay gap in all our markets. Here we have reached a good way in Sweden, but we also want to emphasize that work of course, which helps that in all Yes. Health and safety training has been established for all our private labor suppliers. We have introduced diversity and inclusion training internally. And we have also introduced sort of a stamp which factory audited by Adustin as a guarantee for fair working conditions in our factories. And with this, of course, also with the diversity inclusion work, I should also mention that we form Partnerships within that work with different partners that support this and can drive this work forward together with us. We have also trained all our managers in a competence based recruiting, how that is worked, how that is done. And we have also introduced Working on introducing competitive parental leave conditions for all employees in all markets. And we have when it comes Recruitment also activated and an onus recruitment in our recruitment systems. And I think these are just very Practical and pragmatic and clear examples of how we work with this, there are lots and lots of access that needs to be taken. But all in all, to Sort of improve the social equality for all around us and all the things we can have an effect on. To this, of course, we also continue to ensure that our Our supply quota come back and we're right now at 99.8%, aiming of course for 100% on that. In this work, we also do a risk assessment, I should say, to evaluate our suppliers' ability to long term comply with our code here. So all in all, these are strong commitments and they require, of course, hard work, all 3 of them, all 3 of the commitments, but that is also what is needed. So before moving on and telling you more about our acquisition now this morning, let me just sum up our Q2 for our fiscal year 2021 on Slide number 10. Net sales grew with 4 percent to SEK3.683 million, Organic growth for the group was 6.4% with SMB at 8.2% and S and P 4.9% and BDC at 5.5%. Gross margin 16.1 percent versus 15.7 percent up due to positive product mix and our dynamic pricing model working together With higher volumes of course and strong sale of private label products. Adjusted EBITDA came in at record high SEK 201,000,000 Giving us an EBITDA margin at 5.5%, which is as you know spot on, on our financial targets and an increase from last year's 4.3 And the initiatives and actions we have taken on the cost side, both on the strategic ones and the short term ones, has of course given effect as well as the strong performance 1. EBIT at SEK177 1,000,000 and EPS coming in at SEK138 1,000,000 per share. And on balance sheet, operating cash flow at SEK 218,000,000 and the leverage at the lower end of our range at SEK 2.0 to EBITDA. And operation, of course, worth mentioning, we close our business center as we announced earlier in Stockholm due to change in customer behavior. And we have launched our Easy Workplace as I mentioned before. So as I summarized, the corona pandemic and its effects are still very present of course. It is a challenge both in our markets and in society as a whole and it continues to be short term disturbances in supply chains. However, we have also demonstrated I think great During this quarter, with the speed at which all colleagues at DASKIN have adjusted to meet the needs of our customers, both the short term and through the long term Behavioral change that is brought on to all of us by the increasing pace of digitalization. So with the good organic growth and record earnings in Q2, We see that we are correctly positioned with a strong and unique digital relationship with 100 of thousands of customers and even more optimized e commerce platform as well as the ongoing buildup of our standardized service offerings where Easy Workplace is one example of that and to further increase our relevance and the benefits for our customers of course. And that combined with our strong financial position means that we are very pleased to face the opportunities and challenges that comes to us through the business climate and our customers. And building on that, we would, of course, like to take the opportunity now, while we're on the call to present our acquisition of Central Point. And I suggest that we take any questions you might have on the quarterly results as well as our expansion in Banalux after that. So let's proceed over to the Acquisition and move over then to Slide 12. I mean with this, Dustin, we take a leading position in the Benelux region by acquiring Central Point. We become the market leader in the region and of course creating an European IT powerhouse. We expand our whole market. So it's not only Nordics, it's also Benelux now and that is, of course, saving the way also for continued expansion. It is a very accretive effect on this. If you look at EPS, it's more than 50% if you compare it on a pro form a basis. We see that we given the fact that it is a very strategic fit in this. And we know the drill, we know the business, we know how it works. We see, of course, significant sales and efficiency synergies in this. And we also see that we can due to this, we do not change our financial targets. It's then moving on to Slide number 13 to go through a little bit about the strategic rationale and key facts on the business. As said, this is an opportunity for us to establish Datin as the market leader across all customer segments in the Benelux region through combining existing operations that we have in the Dutch market with Central Point. And I also said it is a strategic fit with attractive value creation opportunities for It fits very well to our current business. And we get also critical mass in the market and across all segments to enhance the local service offering and of course introduce additional value added service in the market. As I said also we see significant sales and efficiency synergies And the areas worth mentioning here is the so called procurement. I mean we can we will also introduce private label products In the market and we see also of course synergies between IT and the technical platform. And then not to say the least, we of course have knowledge sharing And SMB sales in this that we can leverage on even further. And it will also be a natural platform for us to if we when we continue Spanning in Europe, both organically, but of course also with bolt on acquisitions. Center point then, some short facts on that That it is an IT supplier or value added reseller with focus on hardware and software to the LCP as well as the SMB segments in the Benelux region, Netherlands and Belgium. It's approximately 600 employees and it's presence in 3 locations in the Netherlands and Belgium. Revenues amounted approximately to SEK 7,000,000,000 with an EBITDA of approximately SEK 280,000,000 in 2020. And it is a market deal today in the Netherlands with a market share of around 5% in of the total addressable market. What is really good here also, of course, is that they are have strong tender capabilities and that result in high revenue visibility, And management will also current management will also stay in their current positions. If we move on to Slide 14 and look at the financial impact and expected and efficiency synergies. We are the combined revenue Of the companies will be approximately SEK 20.4 billion. And then combined revenue, if you look back 2018 to 2020 will be approximately 7%. The combined EBITDA will be approximately SEK 800,000,000 And with the combined meter margin, if you look back 2018 to 2020 about 4.3 But the EPS accretive effect of more than 50% on a pro form a basis, including the cost synergies. And we see expected sales and efficiency synergy on this where we expect to find those in areas as procurement, increased labor penetration, The IT and second question I said and of course, knowledge sharing between both SAP and SME and the online operations. And we see that it is expected to generate approximately SEK 150,000,000 of sales and efficiency synergies Fully implemented then at 2023. And we expect to invest approximately EUR 50,000,000 to accelerate Central Point has an omnichannel approach, very similar to Dafna in the Nordic. It's a combination of consultative sales or relation sales, outbound sales and of course online sales. And it also has CenterPoint also has The same hybrid supply chain model as we have in the Nordics where we work directly with vendors, but we also work a lot through distributors. So it's a strong company that fits us very well. And again, Just to brief, so you get the full picture of the company. It's a leading supplier in the Benelux Hardware software as well as services. It was formed through a combination of Impotek, Scholtenau and CELTERPOINT In 2018, but the company was originally founded in 2,001. It's based in Neitmegen in Netherlands We have the headquarter and the sales office for Netherlands and it's also in Niesgen in Netherlands where warehouse and distribution center and in Aershoppe in Belgium where the Belgium sales They have very efficient and central logistic operations to serve the Netherlands and Belgium. And as I said, a total of 600 employees with around 36,000 customers across the Benelux. And financial, as we said, it's SEK 7,000,000,000 Around SEK 280,000,000 in EBITDA for 2020. So with that, you won, you can Proceed on Slide 16 to talk more about the other. Yes. Let's look at a little bit on the what Thomas was talking about Value creation going forward coming from the acquisitions together with the DASN organization. So With these 4,000,000,000 blocks, we think we can explain how the value creation will be generated over the coming years. And you will start on the left hand side with the business plan of CenterPoint, which is Quite a growth inspired business plan. And it builds on, I would say, 3 fundamental pillars in order to grow. This would be to expand in the Belgium market to become as strong in Belgium as they are currently in the Netherlands. It is to go expand the offering also to software and grow software business in combination with hardware mainly in the Netherlands market and then to add infrastructure offerings and sales on top of the Basic hardware sales that is currently done mainly in the Netherlands. So that forms the part of the local central point discipline. Then on top of that, obviously, we as Thomas was saying, we have identified EUR 150,000,000 Result synergies coming from both sales and efficiency initiatives. Moving to the efficiency initiatives, I would say that Purchasing power and what we can do with the purchasing power is one of the strongest part of this plan. It's clear that as you know from before, we are one of the leading IT Partners in the Nordic region where we can use our power of purchasing to a great extent. Now we will have the same situation in the Netherlands, but also We can use the fact that we are now a true multi regional player, which we believe will give us an even better Position with the vendors and distributors in the European market. So that will clearly contribute to the synergies going forward. That in combination with launching our own private label assortment to a greater extent in the Netherlands will add to profit. And then moving on to, let's say, the competence and capability transfer and you can, To some extent, also take them with you from the synergies because one of the competencies that we can clearly use is our Nordic Excellence in online SMB sales. This is an area where I think we can generate a lot of sales synergies coming into the Danelux market. And we have a very strong Plan and targets in this area, but also not to forget the excellence that CenterPoint Organization has On tender business and I think we can in many cases we will be able to leverage on that knowledge also in the Nordic context. And last but not least, we will, of course, continue to look for bolt on acquisitions as we have done in the Nordics. We are now In a better even better position in the van der Luxe market to continue that journey. So all in all, We believe that this makes it the prospects of continuing with a good speed of both sales And profit growth in the Benelux region and also for us. If we then move to Slide 17, we basically say that This acquisition will not affect our financial targets as they are stated today. As you know, the growth target is 8% Organic growth over business cycle. As you can see on the Slide 17, if anything, We believe that the acquisition can support that growth target. Moving to margin, I think we discussed a bit before that The our current belief is that the margin potential in the Vanellax region is the same as in the Nordics. Now As the customer split in the Van de Luxe region, including CenterPoint is slightly more skewed towards the NCP side, We are currently at a slightly lower level of margin in the Danaalyze compared to the Nordic, but that is also one of the possibilities for us to, with a better scale support our SMB expansion in the Danelux and that by itself will improve margins going forward. And then if we look at capital structure, obviously, after the acquisition, you heard that from Thomas that in the end of The Q2 we were at the leverage of 2.0 and after the acquisition we will end up at 4.5. But with the proposed right issues, we will be back on 3.3. So we believe that we will De leverage with the cash flow generated by the business down to the area of 2% to 3% within a reasonable future. So no change of the financial targets. Now moving to Slide 18. If we look at the transaction in a little summary, the total consideration It was EUR 425,000,000 on a cash and debt free basis. And we bought CenterPoint from Infotech Holding EV. The acquisition multiple is around 15 excluding synergies and 10 including synergies. And as part of the consideration, we have issued about 8,200,000 shares to the former owners. And obviously, the acquisition is subject to competition clearance by the Dutch competition authorities. In terms of financing, we have A breach financing from Swedbank to cover the initial period and then we will propose the rights issue of SEK 1,200,000,000 to reduce leverage in the first instance. And that We will summon an EGM where which will give authorization to the Board of Up at the issue in time and the rights issue that will be held on the 18th May. And at the moment, the main shareholders are Supporting that decision. And I think with that, back to Thomas. Yes. Thank you, Juan. And let's summarize it on Slide 19. And to summarize the Position, I mean this will create the market we will become the market leader in the Benelux region. Of course, as I said, paving the way for continued expansion. The combined LTM revenue of around SEK 20,000,000,000 and EBITDA of around SEK 800,000,000. EPS accretive effect of more than 50% for the last financial year on a pro form a basis. And we see, of course, as you all have seen as well that with the strategic fit, we see significant safe and efficient synergies of this. And we have we do not change our financial targets due to this acquisition. So very exciting, of course, And it's a strong quarter. Q2 quarter shows our position and strength in the value chain. And combining this with Combining that with this acquisition, of course, makes and puts the foundation for us to create the IT powerhouse that we are building here. So with that, Johan, I think we are ready for questions, any questions you might have. So operator, over to questions. Thank Our first question comes from the line of Frederic Stencil from Nordea. Please go ahead. Hi, good morning guys. So I have a question on the synergy target of €150,000,000 I was wondering, you did talk about it A bit, but if you could be a bit more precise of how much are sales synergies and how much are cost synergies out of that? And I'll wait with my second question. I think Rough numbers, you can divide them in split them into fifty-fifty. So sales would be 75% and cost Would be 75% or efficiency would be 75%. Clearly, most important are purchasing and our ability to exchange, Let's say, accessories with our own private label accessories. These are also the ones that we have great Visibility of, I would say, to start with. But then sales synergies are clear in the sense that we get scale now in the Benelux region. We can from that scale, we can add our online competence and SMB competence also to that region. I think that is a Very important. Also it was short term, but also long term growth opportunity for us. Okay. Makes sense. And then my second question, You write out that the organic growth CAGR has been 12%, and that seems like quite an attractive number to me. What would you say have been kind of the main driving forces for them to be able to have that sort of growth? Because I assume the market has not been growing at that pace. I think they have had they have a very strong competence in how to handle large RFPs, let's say, both in public and corporate tenders. And that has made that is, I think it won their strongest part. That's in combination with really good relationship with local vendors to get good pricing. That has been a success factor, I think, from the board. Okay. Excellent. And if I can just add One last, if you want to disclose if there was a bidding process or if it was an exclusive negotiation? This was a bidding process, it was. So, as we heard Claus, thank you very much. We have another question from the line of Ramiel Khouria from SEB. Please go ahead. Thank you, operator. Good morning, guys. A few questions from my side as well. Just starting off on the international targets, I couldn't help but to notice the fact that you're not mentioning the payout ratio. How are you sort of given the balance constraints Now also post light issue, are you sort of reasoning around potential dividends? I think overall that's of course for the board to decide later on during the fall. But of course, they will consider how the overall balance sheet looks at the time for the possible dividend. So that will be for the Board to take decision on H1. That's clear. And the margin target, which sort of you outlined you were aiming at To reach in the next fiscal year, is that sort of still valid as per your CMD communication? Was it 18 months ago? Or Does that change now? I think it's still valid. And we are now working on it will The possibility to reach it will be, let's say, affected by how fast we can implement the synergies. And that plan we are doing You know, more fine tuning it now when the deal is actually signed. So we will have to come back on exactly that. But There is no change in our ambition to reach that the financial target in margin or sales. Thank you, Joanne. And perhaps the 2 final questions in one go. So first off, If you could shed some light relating to Frederic's question earlier about synergies and the cadence As to when they will be you're saying full synergies will be visible in 2023, 2024, But you're also taking a one off right after sort of the closing of deal. Shouldn't we expect some cost synergies to be weak So from the initial phases, yes. I think you will see efficiency synergies coming through in 2021, 2022 for sure. And then of course on the sales side, it's more of a ramp up situation on sales. It will start pretty fast, But that is a much more how do you say, we need to build that business in a more long term way. So it's not a one off I think that you'll end up with them. But of course, on procurement, for example, you can move faster. So I think there will be let's put it that way. It's not onethree every year added. It's probably more in the beginning, but it will take some time to get the full synergies out. Okay. And perhaps on the gross margin side, could you shed some light as to how the gross margin structure Gross margin is pretty similar to what you can see in our LTV business. Actually, the business down there is pretty close to that. Okay. And then the final one, if I may, guys. Yes. Sort of on a more high level basis, I think you earlier mentioned that this is sort of It gives you the potential to continue to expand in Europe, perhaps I'm mistaken. But how are you reasoning in terms of sort of accumulating market Shares on your existing markets versus continuing to expand geographically. You have in the high single digit area and market shares in both the Nordics and The Netherlands now and some presence in Belgium as well. How are your reasoning for the future story? I mean, what we see, of course, I mean, as you understand, we have a lot of things to do in the Nordics and the Benelux region right now, but we also see the once we have what is clearly visible is that Our business model is very, what you call it, exportable. It's possible to export our business model and That of course, for that you need a platform. So what we're seeing is that we have now 2 strong platforms with or one combined platform with the Nordic region, which gives us those opportunities. However, now as said also, we have we Still are want to prove ourselves in continue to prove ourselves in the Nordics and continue to prove ourselves, of course, in the Netherlands region. But it's very possible for us to do that. So and we see that our business model works in, of course, other European areas as well. But now we see with entering into Belgium as well, we see that there's also room for further expansions there. It's very clear. Thank you so much. Thank you. And as there are no further questions, I'll hand it back for any closing remarks. Okay, very good. Thank you very much, operator, and thank you very much for everyone listening in. And please Just revert if any questions to myself, Johan or Fredrik, and we talk and see each other very soon again.