Earnings Call: Q1 2021

May 6, 2021

Okay. Thank you. And first of all, welcome to this presentation of Helens Stauffer's Q1 report for 2021. And my name is, as you heard, Kerst Rand. I'm CEO at Instalco. And with me today, I have Robin Boueman, our CFO and Fredrik Strachan, IR. We can start moving to Slide number 2, a short update on us. We are one of the leading installation groups in the markets of Sweden, Norway and Finland. Our main business area is installation and service for Electrical, Heating and Plumbing, Ventilation and Cooling Systems, along with solutions for Industry and Technical Consulting. The group now consists total 190 Subsidiaries and around 4,000 employees. We have a highly decentralized structure and we are supported by a small central organization. And as you will see, we have strong profitability and high margins. But going to Slide number 3. And for the last 12 month rolling. Gross sales increased to SEK 7,400,000,000 with an adjusted EBITDA of €648,000,000 and an adjusted EBITDA margin of 8.8%. We also have, as you can see, a solid order backlog at just over SEK6.7 billion. Acquired annual sales, I would say, also was SEK 1,500,000,000. We're talking now about LTM. So if we go to Slide number 4, highlights from the quarter, quarter 1. And I will say that the Q1 now has got us off somewhat sluggish start in 2021, leading us to conclude that the pandemic is far from over. During this quarter, we were more affected than we have been thus far by the pandemic, primarily as regards sick leave and shutdowns at construction sites. We are pursuing our action plan in Norway, where at some companies, we are focusing on lowering their sales to raising the margins and you will see that further on here. It is an effort that we will take some time before we start seeing the full results. Overall, however, the outlook is very positive for our companies in the year ahead, despite getting off to a somewhat sluggish start this quarter, as I mentioned. Adjusted EBITA for the quarter was €154,000,000 adjusted EBITA margin 8 point sales of 6% and a cash flow of SEK 164,000,000. And I'm very pleased with the result for segment Sweden, although Western Nordic is still performing somewhat below the desired level, as I already mentioned. If we go to Slide 5, I will talk a little about change in the management team. I previously announced my intention of exiting from my role as CEO and taking over as Chairman of the Board at Instalco instead. And by doing so, I will be able to focus even more on the strategic matters and Instalcos' futures, investments and pursuits. I'm very much looking forward to working Instalcos' highly competent Board of Director as well. At today's AGM, which was via coastal voting, it was resolved that our current Chairman of the Board, Uli Eleon, will remain in his role as Chairman until September 1, at which point I will take over. Ole Hen will remain after that on the Board as a Director. I'm of course very happy that we have been pulling on. Our CFO, at Instalcos, will be taking over as CEO as of September 1, and we have already started the recruitment process to the new CFO. Gordon and I have worked very closely together ever since Instacos was established in 2014. And his experience of the group's acquisitions and the accounting and financial function makes it highly suitable and an excellent successor for this role. I think we're working as a new our new CEO. We also ensure opportunities and that we have a person that we have a person with the right Staukos Spirits, which is very important to us and our 90 subsidiaries. Robin, you are sitting beside me here, maybe comment on that? Yeah. Thank you, Per. And first of all, I'm very pleased and very happy to take on this role. As you said, I've been with the company since the start. So this is, of course, very dear to me. And also continuing the collaboration that we have had over the years. I'm really looking forward with the new hat on, so to say. Of course, now the focus for me It's, of course, finishing off my CFO duties. And also, like I said, the recruitment process for new CFOs is undergoing. So I'm really looking forward to finishing this off very well and then take on the new role in September. So once again, thank you for the trust and really looking forward to it. Okay. Thank you, Robin. Going to Slide 6, we continue. Net sales increased by 16% to SEK 2,000,000,000, primarily via acquisitions this quarter. Organic growth was negative 1.2%. I think we'll back and go to Slide 7. Historically, the Q1, as you may not know, has always been the quarter with the lowest sales and the profitability over the year. It's no different this year. Instacro has recently been expanding its industrial business area. And in this segment, in Specialty, the Q1 is almost the load season. However, due to the extraordinary circumstances associated with the ongoing pandemic, business activity for the industrial area has been a bit more subdued than normal. Show on Slide number 8, talking about our order backlog. As I mentioned earlier. Our order backlog is very solid, SEK 6,700,000,000 and that corresponds to 91% of our annual sales. Team. That is the best we ever had. And newly acquired companies under all the books exciting dimension and contribution to our order backlog. We are very satisfied with our backlog. I think it's it also will proof. So we'll talk further on here that I think there will be a boom in fall here. But we'll come back to that. So after that, Robyn? Yes. Let's talk a little bit about the segment that we have. Slide 9, and then if you could change that, please. So looking at segment Sweden on Slide 9, then we have a strong solid result in Sweden. Very impressed that we are able to have organic growth within the pandemic in a quarter like this. We have comparison numbers that are non corona effect, and we are able to have organic growth in Sweden in a quarter like this. And as Per mentioned, We have been hit a little bit harder, and we see that in other Nordics. But looking at Sweden mainly, strong solid margin, 8.9 percent EBITDA SEK 136,000,000 and growth in the order backlog, which is also very impressive and also the rate of the growth It's very impressive. So overall, summing up Sweden, we are very pleased with the Swedish segment at the moment. So if we change to Slide 10, please, and going to rest of Nordics. As we've discussed before, rest of Nordics, we do have a few problem areas here, but We have them on the control field. We see a growth in the order backlog, which also gives us comfort in that This segment will bounce back. We don't see the margin effect yet, but as we've commented before, This takes time. However, we are downsizing those companies that are not performing accordingly. I just wanted to stress as well that if you look over a rolling 12 months, we do have a margin of 5 point a little bit above 5%, which in this type of market must be considered as a good margin, especially if you compare to our competitors. So overall, the segments are no alarm bells here, but we do have improvement areas and we are on them. If we then could move to Slide 11, please. One thing that has not been affected by the corona pandemic with our rate of acquisitions. We still have a good rate in the acquisitions. We have a good strong pipeline. During the Q1, we've been able to make 5 acquisitions, 4 in Sweden and we've also done 1 in Norway. Overall, we have acquired a turnover of about SEK 250,000,000. And the pipeline for the rest of the year is looking strong. You see on the slide here there are a few spots to be filled, and we are confident that we're going to seal them as well. So We're looking forward for a good acquisition here as well. Maybe we should highlight some of the acquisitions. So if you move to Slide 12, please. So two examples of acquisitions that were done in the quarter. To start off with in Tomsa, which is in the northern part of Norway. We are very happy to be able to establish our first business here. It's a very interesting region. This company also has a very specific niche in the electric market. They are specialized in road lightning, which is a niche that we don't have yet in Instalcos, but interest in Israel, approximate sales turnover of SEK140,000,000. Looking at the second one here, it's an acquisition of Campus Hill, a very known company with a long history, over 9 years. And this also strengthens our position along the northern coastline Sweden, which is an area that we have been trying to increase our presence in as well. And Kempecial have 5 offices in the cities along the coast as well. So we're very happy with that. Gives us an annual sales increase of about SEK 85,000,000. And when talking about the M and A. I also wanted to highlight here as well that we have promoted Gustave Larsmanfeld also to Head of M and A, which is a colleague that has been working with us for 2 years, very closely together with me. So I'm very happy to announce that he now takes over the role as Head of M and A, and he will also be part of the group management team as well as of now. Erwin has shown a strong competence in this field, and I'm very happy to continue close collaboration together with him and also continue the acquisition journey that we have started in Instalcos. So welcome Gustaf as well if you're listening. Now moving in to the next slide, please. We look at the financial target and dividend policy. And as you can see here, we are checking all the boxes. And we have growth that exceeds our target, 15.9% for year to date. We also have a margin that is in line with our Station. The capital structure is in gives us the opportunity to increase our M and A activities wanted. We have a record breaking cash covenant of cash conversion, sorry, of 117%, and the dividend policy is in line, and we are going to pay out CHF 2.70 CHF 2.70 CHF 2.70 next week. So we're happy and we are in line with all our targets. So then I will leave it back to you. Thank you, Robin. I will give you some examples of new projects from the quarter that I'd like to highlight as great examples of how Instacos works. And the first is where 4 Instalco companies have been contracted by PEA, a construction company, prejoint assignment in Malmo. And the work involves design and installation of the electrical, heating, plumbing, ventilation and Brinkler Systems in conjunction with construction of Oakley's new head office at the property called Jutere in And with 4 Instacos companies getting involved so early in the process, we have been able to suggest sustainable, efficient solutions that we now easily be able to implement. The second project is in Finland, where the Instalkus Companies LV Urikomty and SAKIBOMI have been engaged for a joint assignment for the Finnish environmental management company, REMIO. It involves installation of both the heating and plumbing and electrical solutions in conjunction with the new construction of a waste management facility at Banda in the northern part of Helsinki. And finally, the 3rd example is a unique project in lead shipping of Instacos company, Falakon, as it's the water panels of the roof of a parking garage. And what is unique about this is that sunlight can pass through the panels, creating a bright, safe environment on top drawer of the garage, while locally produced electricity is supplied to the rest of the garage. Smart solution. Moving to Slide 15, about our sustainability program. And during the quarter, we took the next step, I would say, in the rollout of our new sustainability program. Instalco and the Swedish Society for Nature Conservation has joined forces to collaborate on a project to lower the presence of pharmaceuticals in water. It enables the Swedish Society For Nature Conservation to intensified its efforts of lowering the level of water pollution and preventing thermocepticals from getting into the water supply thereby helping make the Nordic regions water particularly the Baltic Sea. We are very proud of that collaboration. So moving to Slide number 16, a summary. To sum up the quarter, We had a somewhat a sluggish start, which was the case for many of us in the construction and installation sector. The pandemic is far from over, even though we can see the light in the tunnel. And I have a very positive outlook for 2021 overall. When it comes to our leadership, we are on the verge of making some major changes in SER, where I will transition from a role as CEO into the Chairman of the Board at Instalco later in the year. And once again, I'd like to welcome Robin, who will take him over at the helm. As the new CEO of Instalco, once he returns to currently in the 4th and after we have recruited the new CFO Assisted Replacement. As you know, last slide, Slide 17, also know, I'd like to wrap up these meetings with a reference to a song title. And this time, I've chosen the classic Frank Sinatra hit, The Best is Yet to Come. And that is how it is in Instalco at the moment. Now we will gear up with the JU Energy and Full Speed with Robin Voemann as CEO from September and myself as Chairman on the Board. We strongly believe in this and the best is yet to come. So with that, I'd like to thank you all for joining in on this call. And I'd now like to take your questions, please. Thank you. Question comes from the line of Robin Newberg from Carnegie. Please go ahead. Your line is open. Hello, Par and Robin. It's Robin Neubauer here from Carnegie. Can you hear me? Hello, Robin. Are you clear? Perfect, perfect. A couple of questions. First, a little bit longer term question to you, Par. You are soon assuming a role at the Board, and it would be quite interesting to hear a little bit your thoughts about the longer term development of the company. And do you think that you can maintain the growth in line with your financial targets? And what kind of new areas Are you potentially looking where you could expand? I mean, it's a lot more to do in this company. And We as I said, we want to gear up. We want to go into new areas. We have been we have started up our consultancy program or part of the company. We have gone in more into what we call heavy industry. We are looking into new countries. So there is still a lot to do. There are also some larger companies for sale out there, and we are looking into that option as well. So There's a lot to do, and I think we can gear up this and still have a path in the future that takes us to new levels. And so I'm looking forward to that. And I think that Our strategic decisions that we took for a couple of years ago, we Still, we'll continue that. And we still have a lot of acquisitions to make besides other things, of course, growing organically and other things. So of course, there is The competition out there in the market is heavier coming to roll ups and acquisitions. But our reputation and how we do it, Our business model is very, very strong, and we have an inflow of very lot of companies. So I'm looking forward and I think that next year, We'll have a lot of interesting things for us. All right. Thanks, Pat. Sounds interesting. Now then moving on more to Q1 performance. Margins in Norway have been a bit weaker for some quarters. Could you walk us through the steps that you now intend to take in Norway? And When do you expect margins to improve in Norway? I can start and Robin can continue. But We have said for, I mean, a whole year now that we will come back to what we call normal margins. Normal margins in Norway in Sweden, maybe a little lower, but 8% is what we're aiming for. And we have had some bumps on the road. But what we now do and what you can see is that We are slowing down a little bit. We are the organic growth is negative, but and we focus on margins. But this takes time. And of course, it takes a longer time than we expected. But with our new launch program for this. And I think Robin can explain a little bit how it works. I think We will come back absolutely. And then of course, the society has been more shut down in Norway than in Finland, of course, but than in Sweden. So it's a longer journey than we had thought. But maybe, Robin, you can add to that. I think it's a valid question, Robin, and that's, of course, something we need to address also of the summer and in the fall here. But Like Paris mentioned, we have talked about Norway a while. And just to give you a few things that we have done is that we have changed a 2 CEOs in our daughter companies. And of course, it takes I mean, it takes 6 to 12 months to get the new one up and rolling. We have downsized 2 of our largest companies by around 30%. So we are taking some drastic measures here. But of course, I don't want to blame only the pandemic, but of course, the Pandemic is definitely not helping us to roll out this action plan. It's making it harder to do, But we are doing our best and both me and Parr are waiting for to get our shots to be able to travel and to go over there and take more actions firmly, so to say. So But I have a strong belief in the Norwegian market overall. But like we mentioned before, they are hit with more close downs and lockdowns and thick leave than you would have hoped for, so to say. Okay. Thank you for that answer. Then I know you don't focus on organic growth And it fluctuates between quarters, but could you still say anything about this or something about the organic growth outlook for the full year. Is it kind of fair to assume that it's going to be positive given that I think you said that the backlog was up 14% for comparable units. And the short answer, I mean, is that if you see at segment Sweden, if you look into segment Sweden, we have a positive organic growth. We have the organic negative growth is due to the fact that our strategic measures taking in so as we have taken in Norway has been that we are gearing down a little bit there on volumes and focus on margin. So the answer is, as you said, We have a very positive order backlog, both in Sweden, I will say, and in the rest of Nordics. So my best guess is that we will have organic growth looking forward. Thank you, Per, for not pushing any pressure on me. Okay. Then I'm pushing a final pressure on Mr. Boohama with a detailed question here. So Earnings, they tend to vary a bit depending on expected earn out payments. So for example, now I think in Q1, you had a positive effect. So basically implying that some acquisitions have been Slightly weaker than expected, and it can be the other way around as well. But could you please remind us that is this group adjusted EBITDA of SEK 154,000,000 in the quarter. Has that been adjusted for changes in expected earnouts? Yes, but in the quarter, it was very limited Every year, the company gives out the prognosis. So every subsidiary gives out the prognosis of the year, And they do that in May, and they do it in September, October, and they do it at the end of the year. And those are the ones that we usually look Gatt compared to what our reserves are. So in Q1, there are not that big of a changes, but you saw, for instance, bigger changes in Q4 due to the fact that then we had received the prognosis for next year and we could adjust accordingly. And we try to not adjust too much too many times because as you know, if you have a 3 year earn out period, We can adjust up 1 quarter, and then we have to adjust down the next one and so on. So we try to tool it a little bit together and try to make it as correct as possible without, so to say, doing too many changes too often, so to say. Yes. And then I assume then that on segment level, when you report EBITDA, so those figures are not Adjusted for changes in Urno. No, no. So yes, okay. So yes, no, that's correct. That's correct. They are adjusted, so to say, on HQ levels, so to say. All right. That's all for me. Thank you. Thank you. The next question comes from the line of Stefan Anderson from SEB. Please go ahead. Your line is open. Thank you. I wasn't planning to start with the mitigriti, but since we ended on that, I'll actually go back to that. You said there wasn't much of a difference. I think what probably was alluding to was that on the segment, if you look at Sweden and other Nordics, There's a difference of €10,000,000 to get to the group EBITDA, and that's a positive. In Q4, it was a negative €19,000,000 and in Q1, and it was a negative €15,000,000 difference year on year. So is that the very small change in earnout. Sorry, is there something else there? Okay. Sorry. No, that the difference this quarter is that we received an additional loss payment to HQ, which was not expected. So it was a positive result for HQ, so to say, in that sense, which we were not expecting. So the business here in earnouts Limited, but we got an additional, I think it was €5,000,000 to €6,000,000 in earn outs and from one of our projects. Yes. So we received, so to say, an earn out from one of our larger projects that we were not expecting. So why is that taken on the head office side? It was an agreement between called so it was a group we took a project together with many of our subsidiaries and then Together, we received the bonus if we could push the project faster and if we could also go in with under our budget, I'd say. With a partnering project. And then the bonus will be pushed to Instalco. And then we, of course, divide it out to the subcivit, but it landed on Instalco. Yes. Okay. Then I fully understand. And then otherwise, your ambition is to have The overhead, I mean, all cost are from the head office is pushed out. So I guess that your ambition is to be a small, small positive EBITDA. Yes. And this was, of course, a very happy adjustment to get, but this is not something I think you in your model should to sort of say calculating. The main thing here is usually like you and Robin mentioned or write downs and or write ups when it comes to earn outs. Yes. Okay, good. And then another very just a small thing. But in the P and L, it says that the EBITA is €150,000,000 on the front page, €152,000,000 and a €2,000,000 one off takes adjusted EBITDA to €154,000,000 So I'm just wondering why it says €150,000,000 on the P and L and 2 on the front page. Is that just a miss or is there something else in between there? It's EBITDA and EBITDA. So it's EBIT on the front page side. Sorry, my wrong. Okay, good. That I got it. My wrong. Good. I'm just checking, Stefan. I know you. You're trying to fool me. That's good. And then we talked about some I mean, I think you said that you have been To criticize you, because what you said, you've been as active as before in M and A, but I mean, you're a little bit slower because you've been so extremely active in the last 2, 3 years. So you started off a little bit slower here. But on the other hand, you're talking a little bit about doing some bigger ones. So I expect that there might be something coming up. Just trying to understand what you mean by big. Would that be like €200,000,000 to €400,000,000 in revenues. Is that big for you? Or am I guessing wrong? That's rather big, Stefan. But I think the word big for us is over SEK 500,000,000,000 maybe revenue, That's quite big, 300 to 500. But I would also like to comment on regarding your comment there, Stefan, on a little bit slower. And I agree with you. We have a strong pipeline. We have unfortunately now last month maybe 1 or 2, so to say, where we just missed out and couldn't come to an agreement at the end. And we are very selective when it comes to M and A. So if we don't think or believe that the company is and Instalcos fit. We rather step down than continue just to kind of continue the growth journey of M and But I'm still very confident that we can end up at a very high level when the year ends. We have a strong order backlog. And I think what Per mentioned was that there are a few larger players out there for sale, not saying that we are going to buy them, but we are saying that there are opportunities out there. So that's something new. We haven't seen that since Instalcos found that these type of companies are even up for sale. Now at least they are in the markets. The compounding idea is spreading, as you know, and very popular, and you're not alone. Yes. I'm just When you look at the bigger targets, wouldn't the price be a little bit different? Or would you think Maybe so. Maybe so, we will all spend our money where we find out that the best value from it or value from it. So if there are if the price is too high, And we just say, no thanks. That's we have no other intention or strategy going forward. Yes. And then on the on Norway or other Nordic, you ran into some issues there with some subsidiaries, I guess, a year ago or something. And then we got the impression that maybe you were coming out of that And now we're seems to be running into some more issues. If I listen to you, I get the impression that this will take a little While it's not a quick fix, you need to get some orders through and so on. So a little bit of a margin pressure for 2 or 3 more quarters. Am I misunderstanding you then? Or is this the right interpretation? I think you have a point there. And I think that, I mean, it takes time and the pandemic hasn't exactly helped us in any way with this. So I think you are I think you have right there a couple of quarters maybe. But on the other hand, LTM. As you heard, 5.5% is not too bad. It's not good standard for our with our estimations, but it's not too bad. And but we are not of course, we are not satisfied with that, of course not. We will not give up for we have to reach 8% at least. So I think it's reasonable and unreachable, I would say. And I think we will be there someday, but it takes sometime, but definitely so. Yes. I don't I mean, you've been so successful before. So I don't argue against you there. I guess, To me, when I see Q1, it's a big drop. And what you're trying to say is that I should Not look too much on the drop for the quarter. I should look more to the rolling 12 months. Is that what you're trying to say? I shouldn't be too scared about the Q1. Okay, good. And then They are they have control over it, I would say. Yes. Like I mentioned, I think we look bright for the future. And I think we've done a lot of things and followed our initial action plan. But like I said, it takes some time both to get, so say, the old people out and new people in. And also like yourself, you mentioned that you need to roll out the old project, and that also takes a few months. And then you need to get the new ones in. And those projects up and running as well. And just to be clear once again, I think in wave 1 and wave 2 of the pandemic, the construction business was not hit too hard, but this Wave 3 has actually hit the construction business somewhat harder. So that is also affecting us in Q1 in large extent than Wave 1 and 2. Good. Then you talked about Norway and the margins there, and I fully agree on you there. But you have Finland there as well. And Correct me if I'm wrong, but just on the call with DaVita here in the quarter, they commented on that Finland is a more difficult market and given that Kaverion has lower margins, that's putting pressure on the whole industry. And they feel that Finland is more difficult. But is that your view as well? Or do you see that also Finland could be on the Norwegian levels or Swedish level? I think I fully agree with Davida there. Finland hits the price levels in Finland are lower. However, for us, Finland has been very, very stable. But if you compare the countries, I would say, Finland is, of course, the Of course, but Finland is the country that has most price pressure, but there are also very solid companies that we have in Finland. So we have been able to give a solid margin from Finland. So the drop that you see here is unfortunately in Norway. Finland is delivering on point, but of course, it is harder in Finland. It's not very common to have the type of margins that you see in Sweden. Those are very, very uncommon in Finland. But Finland is very stable, at least the company that we have so far. And the economy overall in Finland is a little bit weaker. For 1. Yes, one more thing. It seems like looking from the construction side and the construction company that I cover, residential is Very, very strong. And we see starts coming up rather quickly and then has been on a high level for a while as well. Just curious, I know you're doing a little bit for JM, so that's, of course, helping. But I would expect that you have quite good exposure to the rest of the side on the newbuild, but I could be wrong. But is that something that could be very helpful for you when Those projects are ready for installments here, H2 and 2022. Yes, that's right. And I think that I mentioned earlier today that we expect to do I expected boom in fall. And I think also, of course, we are a little bit late into the projects, But I think we have a good order backlog and we can also see a lot of projects coming out now. The architect has full books and also the technology technical consultants. So I think we can see forward that there would be I mean, we have need for a lot of housing and apartments and everything. And I think we can see a boom there. And I think that will be rather stable for the next couple of years. I believe that because there is a lot of money out there and there's a lot of projects coming up and where is the demand for it? Thank you, Laud. That was all for me. Thank you so much. Thank you, Stefan. And the last question comes from the line of Markus Almerud from Panzerg Bank. Please go ahead. Your line is open. Hi, gentlemen. Can you hear me? Yes. Yes. We hear you. Hi. Yes. So, yes, thank you for taking my questions. So a couple of questions, starting with the margin in Sweden moving away from Norway to Sweden. The Sweden Swiss margin was also down year on year, And it's a bit weaker than we've normally seen for the past 3 years or so. What were the reasons behind that? And what pushed that margin down Starting there. Yeah, I think like we mentioned, wave 1 and wave 2 of the pandemic has not hit the construction market very much. And if you've listened to the calls before, those You have heard us say that we're not so affected. But however, in Q1, we were affected. We had a lot of sick leaves. Even in Sweden, we had shutdowns of a few construction sites as well, which we haven't seen in the pandemic. And that, of course, hits us right away when when we have people not installing. And doing that is one of the main reasons. Second one, which is which also has some effect is that we are growing in the more heavy industry market. And then we have to start to cope with that. The industry is somewhat slower in Q1. Heavy industry does not make any orders in January, February. They come more towards the Q2 and in Q4 are bigger investors, I would say, quarters for them. So we also have to start, so to say, coping with that as well. And how large a part of the industry have industry right now? We don't know exactly, but I think with Roughly EUR 500,000,000 to EUR 700,000,000 in turnover. Yes. Okay, okay. And then they have I mean, they have a period during summer, I will say, I would say, that with more maintenance and what you call, stock. And that's the reason why they went a little bit slow in January February. Okay. Okay. But €500,000,000 700,000,000 but ballpark €500,000,000 700,000,000 thereabouts? Yes. Okay. Okay. And then next question is a little bit about the quarter and the trend in the quarter, because given that it was The pandemic which was driving this. Can you talk a little bit about how you saw the quarter developing? Because we know from last year that everything was very, very fast. When it happened, it happened fast and the curves were very sharp. Are you seeing this kind of disappearing? As we entered Q2, was it kind of like normalizing or continuing at the stable level, etcetera? I think we don't want to comment about the future, but what we can comment about is regarding the core asset loss and the toughest months of January, February. So we see a positive development within the quarter. So March was a very good month, of course. Okay. Okay. Okay. That's helpful. And then a little bit about acquisitions. So I was just thinking, so when we go through kind of the cycle that we have been, crisis that we have been through right now. You have a lot of especially smaller companies, which might have big problems with financing and distress, etcetera, etcetera. Are you seeing that as well? And should we on the back of that, I mean, what are the talks like? I mean, do you think that you will be able to Accelerate the acquisition pace on the back of something like that and there will be more healthy targets out there that could close or is that not the factor here really? I don't think it's a factor here. I think that it will continue has been. And I think there is no major changes in that. The only thing I think we've seen is what we've discussed before is that we see a little bit of tendency of the possibility to negotiate to a more earn out than sort of a cash upfront situation. But otherwise, There are no effects in that sense with what you're saying, unfortunately. Okay. Okay. And then finally, I guess, the 2 more questions. The first one is order intake. I mean, maybe it's not a factor. You talk about the order backlog. But given that you had March maybe as the best month in the quarter, is it possible to say anything about the order intake relative to sales to see if we'll see I mean, could see is it higher, significantly higher So that we could see a ramp up in expect a ramp up in Q2 in terms of sales, which you have gotten but not back to that yet. I mean, although the back of this, as we mentioned, is I think it's all time high You could talk about Phase 1, 2 and 3. Phase 1 is more design work. Phase 2 is more when you come to the construction plant and start in store. And we are in Phase 1 in many projects at the moment. So and it takes, of course, some month before we are in Phase 2, but we will be there sooner or later in many products. So I think the situation is good and stable. And I think it's Maybe we could guide and say Like if we have an order backlog that is around 70%, 65%, 70%, we are very happy, and we are at 91% now. Daukos. I think that's certainly helped you with some guidance. Yes, that is good color. And then finally, just a housekeeping question, if you could help me, would be very helpful. So if you look at the carryover effect of the acquisitions already made, What's that for the full year? Do you see what I mean? No, I'm not sorry, please. Okay. So the additional I mean, the add if I look for the full year and I look at the acquisitions made to date, How much addition from acquisitions will you see for the full year? Just where you are right now, do you see what I mean? How much efficient? We can take that offline. I'll send an e mail. We look like question marks here. Okay. Okay. We'll take it offline. But okay, thank you for making the answer. Very good color. Thank you. Thank you. Thank you. Thank you. There are no further questions at this time. Please go ahead, speakers. Okay. Then we thank you for calling in for all these questions as well. And thank you very much. See you in 3 months or something. Thank you. Take care. Bye bye.