All right. Hello, this is Lars Corneliusson here, welcome to this presentation of our Q3 results. As you can see on slide two, we had a record result and strong cash flow. In Russia and CIS, we saw strong unit sales growth despite a lower market. Overall, we had an organic sales growth that was partly hidden by a weaker ruble. Solid operating profit due to revenue mix and continued cost control. In Germany, unit sales was flat compared to Q2 as the market remained weak. As I have strong cash flow of SEK 100 million and lower net debt, AGM approved a dividend payout of SEK 4.25 per share. Revenue numbers, it is a 17% revenue increase, 1% operating profit decline, 9.5% operating margin, but a 9% increase in EPS, and our highest net profit ever in our 10 years history.
If we move to slide three, some highlights for the group, where revenue then was up 17% to SEK 1.129 billion . Due to headwind on the ruble, Russia decreased 7%, but then adding consolidating German operations added 24%. As you can see, again Russia CIS, which is our total revenue, -7% in Svensk krona, but 15% in ruble. Equipment down 7%, but +15%, and aftermarket -8% in SEK +14% in ruble. Contracting Services revenue were largely flat in SEK, but more than 20% growth in ruble. German revenue, -6% Q-on-Q to SEK 229 million . The mix is that 59% was from truck sales, 31% aftermarket, and 10% other. Operating profit was on par more or less with last year at SEK 107 million In Russia and CIS, we had a record high operating profit, which grew 14% year-on-year.
Again, this is revenue mix and good cost control. Obviously, the group operating profit decreased due to a negative contribution from Germany. We had an operating margin of 9.5%, which is above financial targets. Our net profit was SEK 81 million, which is a 9% increase. We had lower working capital and net debt. We turn the slide to slide four, some operational highlights from Russia and CIS. The market for our main product groups declined 12% year-on-year. This is a decline, but it's a much smaller decline than it was in Q2. We saw some market recovery Q-on-Q as operational restriction eased, uncertainty decreased, and due to pent-up demand. At the same time, our new construction equipment unit sales grew 21% to 292 machines year-on-year.
We saw again that our customer base continued to demonstrate resilience in their operations and maintaining their investment programs. We increased the share of sales of excavators and backhoe loaders, and decreased the share of articulated haulers in our portfolio, that resulted in a 27%, 10% in ruble, year-on-year lower average sale price. Aftermarket revenue share at 24%, which was more or less unchanged while Contracting Services increased the share in our sales to 13%. We go to slide five. Germany operational highlights. In Q3, German market for heavy trucks declined by 15% year-on-year. This decline is also much less than it was in Q2. We should, however, remember that last year there was a pre-buy effect in Q2, and the market dropped in the second half of the year, and therefore, the number is more or less flat compared to Q2.
We saw, however, a late quarter recovery quarter on quarter, which was driven mainly by the tractor segment. Our sales area is approximately 20% of Germany and moved in line with the total market. We sold roughly the same amount in Q3 as we did in Q2, 151 units. Aftermarket sales more stable and grew 4% as truck utilization showed signs of recovery and started to come in a bit more often in our workshops. We saw better gross margin but lower operating results, partly then due to restructuring costs. We are restructuring. We are building up our organization and business in Germany as we have planned. Obviously, overall, we keep focus on customer and employee health and safety while continuing to deliver great customer service. Moving to slide six, a bit more on business development in Germany.
As I said, we are restructuring the sales organization, the processes, the systems. Network review underway. We are intending to increase our share of the aftermarket business in our region, and I think we are on good track to do the restructuring in Germany. For Russia/CIS, we're talking about Contracting Services. We performed well in very challenging conditions, continuous lockdowns on sites, and problems obviously with COVID. We then announced that we are going in as general contractor for a palladium future mine site in Norilsk, in northern parts of Russia, where we then are now a general contractor. That includes road construction, drilling and blasting, overburden removal, and site preparation for a future palladium mine site, where we are preparing the site and we're preparing for the building of a processing plant on the site.
This is also interesting because we are subcontracting a number of players to perform these services. One also exciting news is that we are actually expanding our machine and component rebuild center in Yekaterinburg. You might remember that we opened it late last year, early this year, and we see good demand, and therefore, we are expanding our capacity in the center, where we are rebuilding, basically recycling machines and components, gearboxes, engines for reuse and back into the market again. Another thing that we saw during the quarter was that there was increased activities and tendering for the National Projects. The much-talked-about National Projects in Russia, and we now see activities actually going on and tenders being awarded to contractors. That would logically give effect going forward in next year on machine sales as well. By that, I hand over to Erik for economic development.
Thank you very much, Lars. Moving to slide seven to get an overview of what the macroeconomic conditions and situation look like. It should come as no surprise that the economies where we are operating, our markets have been affected significantly by the COVID-19 crisis. In terms of Russia/CIS, also by the reaction to that in terms of the oil price, given still a meaningful part of these economies depending on oil price. If we look nine months of 2020 at Russia, we can see that we're down 3.5%. Looking at the full year, IMF believes that we'll see a decline of 4.1%. Russian Ministry of Economics, slightly more positive, minus 3.9%. Looking at next year, however, there is a consensus that we will see a recovery. IMF there at 2.8%, the Russian Ministry of Economy at 3.3%.
If we look at the monetary conditions, we have seen inflation easing. We were at 3.7% in September and are looking for a full year somewhere in the range 3.7%-4.2% versus a slightly higher level in 2019. A slight decline in inflation is expected, and that partly is reflected in the interest rate environment. More so, of course, the lower the interest rates, a measure in Russia as in other markets to ease monetary conditions for companies in the light of the strains that comes with the COVID-19 crisis or COVID-19 situation. Russian Central Bank has lowered key rates by 300 basis points year-on-year to 4.25. In this quarter, however, there was one move in the beginning of the quarter, down 25 basis points. The ruble has moved significantly, and that is partly reflected in our results, which I will get to shortly.
Year to date, we see a 32% decline if we look at 31st of December to 30th of September, so nine months. That is driven by this economic uncertainty. There is a risk of, and then again, the oil price reacting to the macroeconomic situation and the uncertainties surrounding the macroeconomic outlook. Kazakhstan, a similar situation, down 2.8% in nine months, 2.7 expected decline for the full year, a recovery next year. Germany in Q3 lower than was expected. That's a preliminary estimate, a decline of 3.1. Still, IMF is looking for minus 6% in full year 2020, a big recovery in next year as we hopefully emerge from the pandemic situation. If we turn to slide eight, to look at the longer term market situation and how we have performed in it.
You will see, for those who follow our company, a familiar slide there, with three lines, the lower black line being the market, the black line at the bottom. What we can see is still a market that, in our view, has a lot of potential. We are still around half of where we were 2011-2012. We believe that there is not only a higher normal market in Russia, CIS, but also a series of years where there has been under-investment in the machine park and therefore a lingering pent-up demand. As Lars mentioned, we have also seen an additional impetus from the National Projects starting to be implemented more slowly than maybe was expected at first, but now seeing some actual tendering going on there. We do believe that longer term, there is a lot of potential in this market.
Even where we are now with the market at, again, around half the level of where we were 2011-2012, our revenue is around 50% higher, 51%. Our operating profit even more so, three times higher or 325% as we have really leveraged both our business and our position in this market that we still believe has a lot of room to grow. With that, I would turn into the financials to give you an overview of that. I turn to next slide number nine. I think it's important again here to put in context the movement in the currency. The average rate is used over Q3 to convert the income statement from the Russia and CIS. There is the Kazakh Tenge, but it moved in a similar way. Then we had a 23% depreciation on the average rate year-on-year.
When we turn to the balance sheet, even more so, there is a 33%, if you would look year-on-year. There we should also look Q-on-Q, which was 16% decline. Looking overview on the income statement, a total revenue of a bit more than SEK 1.1 billion. That's again, an increase of 17%, Russia showing a slight decline in SEK, an increase in organic in ruble, and with the addition of Germany. 20% of the revenue made up of Germany in the Q3. Looking at the revenue mix, we had 62% of equipment and trucks. That's new and used machines in Russia and Germany, Russia, CIS and Germany. 26% coming from the aftermarket. That's higher by about two percentage points, both than the Q2 and last year, 11% coming from Contracting Services.
That's on a group level. In the Russia mix, Contracting Services was up at 13%, 1-3%. We saw a slight decline in gross margin, mainly based on the consolidation of Germany. As you can see to your left, meaningfully lower gross profit there, about half of what we have in Russia. That obviously feeds into a lower consolidated gross margin. SG&A in Russia declined meaningfully year-on-year, almost 20% at 19%. Slightly quarter-on-quarter. Of course, the ruble is an important factor there, but I remind you here also that the revenue in ruble terms were up 15%, and you would expect some of that SG&A to follow that up. It's still good cost control as we see it, as we hold on to some of the cost savings we implemented in the second quarter.
On a group level, we are slightly higher, that's again as a result of consolidating Germany operating margin at 9.5%. That's above our financial objectives, that despite the negative contribution from Germany of -7.3% in Q3. Operating profit more or less flat year-on-year. That's again the balance of a record result of SEK 124 million in Russia and -SEK 17 million in Germany. We did pay down loans. As you may recall, we did consciously build a liquidity buffer end of 1Q and through Q2, we did reverse that is partly reflected in lower interest costs. That helped us from then being flat on an operating profit level to reach a record net income at SEK 81 million, which is up 9% then versus last year.
If we turn and look at longer term trends on slide 10, what we can see starting looking at revenue is that we have a slight decline in Russia CIS when we look at last 12 months rolling. That is, of course, much driven by that 23% depreciation in this quarter average of the ruble. Otherwise, again, the ruble revenue was up 15% in the quarter. On the other hand, we have the contribution of revenue from the German operations at SEK 229 in the third quarter and about SEK 750 in nine months, which is, of course, still lower than expected due to the COVID situation that has impacted all our markets, but the German markets in some ways more than Russia CIS. When it comes to margins, we can see that we're about back at our more historical levels.
If we look at the graphs you see to your right, the trend, that's a combination of a higher margin in Russia CIS and then consolidating that lower margin from Germany. Similar when it comes to operating margin, also at historical levels on a group basis, which is the combination of a strong operating margin in Russia of 13.8%, offset by a negative margin from the German business at this point as we continue to implement new processes and organization in Germany. We did have a restructuring cost that impacted the margin in Germany in the third quarter of SEK 4.7 million, as you'll see in the report. If we move to slide 11, we have there the longer-term cost trends and return on capital. Starting on the cost situation, slight increase again when we look on a group basis. That's while Russia and CIS has declined.
Seeing a higher contribution from Germany, 16.8% in the third quarter. As mentioned, partly a effect of the restructuring. That is a natural effect of the changes that we are implementing to improve the networking organization in Germany. When we look at return on capital employed, also an improvement, and that's then a high profitability in Russia and CIS that is driving that. When we compare year-over-year, of course, the capital tied up and the negative operating profit that we see coming from Germany at this point drags down the consolidated level somewhat. If we move on to slide 12 and look at cash flows, then we can see a slight increase when we look year-over-year in cash flow from SEK 95 to SEK 100. That's a result of the operating profit growth that we saw in Russia.
We also had lower interest and tax expenses in Germany. We also had lower net operating capital, which contributed to the positive cash flows that we see. Across the group, again, lower interest, as I mentioned, financing costs and tax expenses. CapEx decreased year-on-year when we look at the CapEx line. I make a footnote there that we disclose that partly this is an effect of machines that have been in inventory being transferred to Contracting Services from inventory to PPE. This is a non-cash movement. This is, you could argue, a cash flow that should be reflected in CapEx rather than sit in as a decrease of inventory non-cash. That was SEK 20 million in the third quarter as you will see in the report as well. In financing activities, you can see effect of us paying down debt as I mentioned.
As Lars said, we have approved a dividend payment by the AGM, that's something that will come through quite shortly. That's not a Q3 event, but will be paid out currently. As a matter of fact, today is the expected payment date of that dividend. Quickly on the balance sheet overview, next slide 13. Bring your attention again to the fact of the Russian ruble year- to- date, a 32% decline quarter on quarter, 16%, which is also a significant movement. That has had an effect clearly when we look at property plant and equipment. There is not only a depreciation effect that we have, a big part of the PPE is now machines in the park of Contracting Services and those are being depreciated.
Here we also have a meaningful foreign exchange effect whether you compare year-on-year to date or quarter-on-quarter. Similarly, when we look at working capital, there is a big decline in Russia that is partly a decrease in inventory that we're seeing, but there is also there a foreign exchange effect. We did see positive cash flow in Russia, and that's reflected also in the net debt that we attribute to Russia CIS. As you see, we have a net cash position that has gone from SEK 47 to SEK 205 at the end of the third quarter. Germany also some decline there in working capital. A slight increase in net debt as we had a negative operating result. We did carry interest costs, there was actually quarter-on-quarter, a slight strengthening of the euro when you look at the end of period rates.
Working capital now for the group standing at 8% of last 12-month revenue. That's annualized then for Germany. That has released of course, cash for us in the nine months of this year. Last year, same period, we were at 18% and we were as high as 20% net working capital to revenue at the end of last year on the 31st of December. The increase in working capital was driven partly by us taking over importation from Volvo. Rather than buying equipment and parts in Russia, we started last year buying them from the sites of production. That was part of the reason why working capital grew and that situation has now normalized.
As a result, partly of that working capital release and the strong cash flows that we've seen, net debt has declined further to SEK 83 million, and net debt to EBITDA at 0.2x which is well within our financial targets. If we turn on that note to the financial targets on slide 14, we currently, when it comes to our revenue targets of tripling our Russian CIS revenue from 2016 by 2021, we're at 2.2x . I remind you then that that's one quarter, the fourth quarter of last year, that is excluding Germany. If we look at nine months of this year as maybe more indicative, we're at 7.6%, so in that range.
Net debt to EBITDA at the moment at 0.2 which is well, of course at the lower end of the objectives that we set ourselves. With that, I hand back to you, Lars, to say something about the outlook before we open up for questions.
Thank you. Well, obviously, the COVID situation and the measures to contain the spread of it have caused us, as we have said, and as we all know, many uncertainties across our markets. We might face for the rest of 2020 and 2021, again, various degrees of disruption in supply, demand, and customer interfacing. What we've seen in October is that the business trends from Q3 have continued. I think our business have adapted very well to the challenges related to COVID-19. As cases are again picking up, restrictions are introduced, we fully recognize that the future is uncertain and visibility is low. However, currently we expect the markets in Russia, CIS, and Germany to start to recover next year. Obviously in the longer perspective, we are positive as we believe the underlying fundamentals and business opportunities in our markets are strong.
We're building on a great team. We have strong brands. We see long-term, very strong and good opportunities for market growth in our markets. That's about the outlook. Then maybe we should summarize just again. It was a record net result and strong cash flow. Strong unit sales growth despite the lower markets in Russia and CIS. Organic sales growth partly hidden by a weaker ruble. Solid operating profit, our highest operating profit ever in Russia due to revenue mix and cost control. Unit sales in Germany, flat quarter on quarter, market remained weak. Strong cash flow and low net debt and an approval of a SEK 4.25 dividend per share being paid today, actually. I suppose then we open up for question and answers.
Thank you. If you have a question for the speakers, please press 01 on your telephone keypad. Our first question is from Karl Bokvist of ABG. Please go ahead. Your line is open.
Yes, thank you, and good morning. Three questions I think to begin with. The first of all is when it comes to, as you say, the visibility is low, but have you seen any indications from the Russian government when it comes to these larger infrastructure programs or spending that things are moving?
Yes, we have. In Q3, we actually saw contracts being awarded for road construction. It is starting. It is not in the magnitude that was initially planned, but we do see contracts being awarded for the National Projects, which is a positive sign, obviously, and which should then result in frequent sales in next year.
Just a follow-up on that, when you mention not in the same magnitude, is there any particular area of the bigger program where you see less spending than initially expected perhaps? If we look at affordable housing or infrastructure or those kinds of areas.
I think the National Projects in general are being implemented slower than was anticipated in the beginning. It has been changed, the time schedule for it. Not really the magnitude of it, but the time schedule has been prolonged, which I think is a reasonable and realistic time schedule rather than having them all finished by 2024. It is now moved up to 2028. For instance, one of the roads now that have been tendered is the new highway between Moscow and Kazan, which is 700 km, and it's not realistic to build such a road in three years. In general, there is no brake being put on it more than speed, if I put it that way. This is positive. We've been obviously waiting for a more broader scale implementation, which we see happening now, actually.
My second question has to do with working capital. This has been a topic over the past quarters, and you're making very, very steady progress, and you're now down at the high single-digit percentage in relation to sales numbers that you guided for might be a realistic long-term level. Do you think that, let's say that markets start to recover from next year onwards, could we see a bit of perhaps a short-term inventory build up again? Overall you're confident that you can now maintain this level and keep it in line with your long-term ambitions?
You want to take that, Erik?
Sure, I can take it. I think we're now back at the situation that we would qualify as more normal. I think if we see a pickup in markets, a recovery following this crisis, then we would need to build up inventory and take on more. That said, Karl, we would expect that to be accompanied by increased sales. I wouldn't expect that per se to lead to a higher as a percentage of sales working capital. It's a lot about how quickly we can turn the inventory we carry, and I remind you of sort of the different dynamics there with Germany to a greater extent being customer driven, but partly therefore also us having shorter payment terms there. In Russia, we need to carry bigger inventory to meet customer needs.
It's a bit more looking forward and taking cautious steps to build the inventory to capture the market as we see it developing. It depends again on how that market pans out. I think it is a natural part of our business that we will have some variability in the total working capital. Again, the kind of swings that we had before, that was at least partly related to this structural change in us taking over importation. In a business as usual and growth situation, I would not expect that to reoccur.
Understood. Third question is more of a long-term one, and I think maybe it's up to you to say if it's more up to the board or up to management here. You continue to have a very strong return on capital. It will be interesting to hear your thoughts over the coming three to five years in terms of how you view your capital allocation strategy when it comes to continued growth, expansion, dividends. Of course, you have a dividend target, but share buybacks and things like that, just hearing your thoughts in terms of how you would like to allocate capital going forward, given that you have already undertaken quite a lot of expansion activities in the last year or so.
Yeah.
Yeah. You want to start, Lars, or?
Go ahead.
Lars, you start, right?
From a strategic point of view, if we start with that, we have an intention to continue to grow. We want to grow in related areas of business in adding products to our portfolio. We want to continue to grow geographically. These strategic objectives have not changed. Obviously, we have a lot of things to do still in Russia. We are investing more into Contracting Services. We're building up a rebuild center. We have Kazakhstan that is in the initial phase of its expansion. Obviously we have a Germany, which is under-invested and needs improved network to be able to increase customer satisfaction and market share. From a strategic point of view, that's what we're doing now. Clearly we want to grow further.
I think for the time being, we need to deliver on the commitments and to ourselves and to our shareholders and to Volvo, what we have taken on, and then take the next steps later on. That's from a strategic point of view, from a capital allocation, I'll hand it over to you, Erik.
Yeah. Just maybe building on that, because obviously the capital allocation will follow the strategy of the business. We have growth ambitions in the markets where we're currently at. We're developing in Kazakhstan. Russia, as we've stated, we see much potential to grow further. That's across our business areas. There is potential there to invest more capital, the Contracting Services, and the core business as well. There will be need for that. At the same time, we are in a situation we're developing in Germany. There is a need to invest in the network there as we have communicated. Those are priorities to us, and we think they will deliver good returns to shareholders. That's the current trajectory we're on.
In addition to that, we are continuously looking for new markets, as you know, and potential new business areas as well that are closely related to what we're currently doing. That's maybe not on the current trajectory, but something for the future. Besides that, Karl, the dividend policy is at least 25%. That's how we've put it. To the extent we generate good cash flows and have a strong balance sheet, and we don't see high return opportunities that we believe will deliver more value to investors, then there is room for making higher dividend payouts. We put these guidance, and we communicate our targets for the markets to know what we're aiming for, basically. Yeah, that's what I would say. I hope that answers your question to some extent.
Yeah, sure. Understood. Thank you.
Our next question is from Kenneth Toll of Carnegie.
Yeah, thank you. A couple of questions. First, you grew the aftermarket sales by very high numbers. What happened there? How did you manage to grow so much, and do you think those growth rates are sustainable?
Well, I think if you look on our aftermarket sales for a number of years, it doesn't stick out in particular this quarter. We have good traction in the aftermarket. We're getting closer and closer to our customers. We're making sure that they purchase our services and parts in the market. We believe that there is still room to grow the market share, as we call it, and penetration in our own fleet in the market. That is in the core of our business that we're basing it on aftermarket. Of course, it gets more difficult for every year to grow your market share, but we still see opportunities to grow there, Kenneth.
Okay, great. Also Germany, you took some restructuring costs. Can you talk a bit on where you are in the German operations compared to where you wanted to be at this time, initially? How much there is left to do, and a bit around Germany, please, and the change process there.
It is a big task. We're changing the organization. We're putting in new systems, new processes, maybe trying to put in a new way of thinking a little, putting customer in the center. The pandemic has, to a certain extent, slowed it a bit, compared to where we wanted to be at this stage. We feel confident that we can catch up, really. Our initial thoughts on where we should be in the end of next year haven't changed. I think we feel that we're moving in the right direction and creating a great team and also building out the network as we have planned, so that we should see contribution from Germany also on the bottom line towards end of next year.
Okay, great. I'm wondering, your EBIT margins are really strong in Russia now. You're growing profitable businesses significantly, which add to this. Is there also an effect of less traveling that brings down sales costs, for example, that could, if things normalize after the coronavirus disappears, could those costs jump up back again? Do you have some temporary effects affecting margins in Russia, please?
Well, on the cost side, I think we made a great job in taking down the costs. For sure, some of them will come back once the situation normalized, and we're talking mainly, as you say, traveling costs and also marketing costs that will come back. Yes, they will.
Okay, great. Good. Those National Projects that are awarded now, when you see what companies that are awarded those contracts, or is it companies that are customers of yours already, or is it other construction companies?
It's a mix. They're awarding mainly contracts to general contractors. There will still be our customers working in there. The projects are so big. There are many companies that are being awarded these contracts. For sure, we are strong in road construction in Russia. We have a very strong market share there. Usually when somebody is awarded a contract, it's a high probability that is already a customer of ours.
Okay. Good. That's all from me. Thank you.
Thank you.
Our next question is from Victor Hansen of Nordea. Please go ahead.
Yes. Good morning, Lars and Erik. I'm wondering if you could provide some flavor on why gross margins bounced so significantly sequentially, and why margins specifically increased on new truck sales, as you mentioned in the report. Thank you.
I can start, Lars, maybe. If you look at the Russia CIS part, there is always a product mix effect, Victor, that will be, I think for the market, relatively hard to anticipate that has an impact. Currency can also have an impact when it moves, given that our balance sheet in the functional currency in the Russian part of the business is in RUB. We also have as an effect that some of our competitors price in our currency, which can give more room for us to also move our margins a bit. In Germany, similar thing. We had slightly higher sales. We had sales with slightly more value added on. When you put on superstructures on trucks and you do special
How do we say, preparations of the trucks before you sell them. You, in a way, get aftermarket effect into the truck sales. That also helped us to expand the aftermarket part, which the previous question also alluded to. We had a bigger aftermarket share, and that also drives the gross margin. Lastly, I would mention, Victor, also if you look sequentially even, you will see that Contracting Services is up quarter on quarter, not only year on year, but quarter on quarter also. There, the margins are also different than from the wider core business. When you see that movement, it will attempt to have a positive effect on the overall gross margins.
Okay. The restructuring costs in Germany that you touched upon already, is this related to layoffs or something else, and should we expect more to come?
These specific costs that we disclose now are predominantly layoffs, so restructurings and changes in the organization. There are some other costs there as well, but really the major part of that is. There may be some further restructuring costs coming, but not something that we give guidance on. I think we've done a lot of work in terms of changing the organization, and we will continue to optimize it. We're obviously trying to move as quickly as we can in these conditions.
A final question, a housekeeping one. The lower tax rate of 17%, is this due to losses in Germany, or how should we think about that? Thank you.
Let me take that one, too. Yes. I think you will see differences always, Victor, when you look at the group consolidated IFRS tax versus what we pay in the local markets, given the differences in the tax accounting that we do, Russian standards, German standards. That's one factor. You will have these differences, even without any consolidation of Germany, you would have that before. You are correct that we actually have, given that we're loss-making in Germany at this point, we actually get tax credits for that. That lowers the overall tax rate, yes.
Okay. Thank you very much. That's all for me.
Our next question is from Karl Bokvist of ABG. Please go ahead.
Yes, good morning again. Just a final question here from my end. Volvo, during its capital markets day, spent a lot of time talking about electrification and how they were about to roll out electric versions of most of their trucks. I'm just interested in hearing your thoughts on electrification within the construction equipment market and what kind of feedback you expect to receive or have received from your customers also.
Volvo Construction Equipment has launched compact electric machines. They will start to be sold now in some markets in Europe. As a whole, I think this is very exciting. Certainly, some customers are already thinking about it, and I think this is a very, very positive and exciting and potentially very prosperous business for us. It will probably come a bit slower on the new heavy machines, but as you saw, there is a rollout plan also for Volvo Construction Equipment when it comes to electrification.
Understood. That's all for me. Thanks.
Thank you.
There are no further questions at this time. Please go ahead, speakers.
All right. Thank you very much for listening in and for your questions, and wish you a very good day, and speak to you during the next quarterly report. Thank you.
Thank you very much.