Earnings Call: Q3 2020

Oct 28, 2020

So good morning, everyone, and welcome to our Q3 2020 earnings call. And this time around, like in the Q2 this year, with these exceptional times that we are living through, I would like to also this time start this call with sending a strong voice of recognition. And thank you, 1st of all, to our dedicated staff and particularly our frontline staff who all work relentlessly and professionally day round to handle the ongoing COVID-nineteen pandemic. So I really want to start with sending that voice of recognition and thank you. Then over to our results. This is our first ever more than €1,000,000,000 revenue run rate quarter, so that is quite a milestone in fact. And for those of you that have had the pleasure of joining us since the IPO 3 years ago, The Q3 2017 was the 1st full quarter that we reported and we are up 82% since then. So in fact, a 22% compounding growth over those 3 years, which I think well illustrates the built in power in our business and our business models. Clearly, the rebound that we report in the Q2 has continued quite strongly also in the Q3 with robust demand pretty much across the board for our services. Important to point out is that if we call the base business or the underlying business is not yet back fully at pre COVID-nineteen levels. And of course, it varies a little bit between business to business. But in general, that's an important comment and we will show you some graphs to illustrate that a little bit later on. However, this is certainly more than compensating by surging demand for COVID-nineteen related services, which again, I think is very well evidencing the resilience of our business. We have strong underlying margin expansion. And again, important to point out that also when we strip out the COVID impact, we still have quite significant underlying margin expansion in our business, evidencing the effect of scale, cost optimization and ongoing efficiency programs. Always good to remind you what I think I say every time we have this call together, the benefits of our diversification, our diversification on pay your groups, our diversification on service models and our diversification across our different geographies. As we talk you through the presentation this time, I think it is as clear this time around as in all other calls how important and strong benefit that is to our business. We have exceptionally strong operating cash flow, again, evidencing the growth of the business. Joe will speak much more about that later on. Our corporate paid business, which as you know is very significant in Healthcare Services, As we commented in the 2nd quarter, it's now back growing again in the Q3, albeit at lower rates than historically. But I think that's a very important point of principle to show that even in times like we are still living through, that business is back growing. We are all aware you are all aware of that the virus spread is again increasing across the world and certainly in our markets as well. And of course, our main operational focus is on protecting and supporting all our staff in this way in order to be able to service and help both COVID-nineteen and other patients and customers as well as possible. Looking specifically at the quarter, so EUR 262,500,000 of revenue, just short of 24% top line growth, of which organic growth 12.3%. So indeed a very strong figure. You see on the graph to the right, the Q2 2020, the prior quarter being the exception to our growth trajectory. So it is nice, good and important to be back with our historic solid growth numbers. EBITDA was at record levels, north of EUR 50,000,000, 54% up versus prior year with a 19.1% margin. Very significant growth in our fee for service segment, plus 37%, now up to 56% of group revenue. That is of course heavily impacted by the inclusion of Medicover Hospitals India from December last year, as you know. So in fact, I think this is the first time that fee for service is significantly more than 50% of group revenue. So in order for you to be able to understand as much as possible the results and the underlying business, we have carved out the best estimates possible in terms of the specific contribution from COVID-nineteen. And in this quarter, that is estimated on an EBITDA level to be €12,500,000 or 2.8 percent of the margin increase, which then leaves, as you see, 1 percentage points or 100 basis points underlying margin improvement in the ongoing business. Important to point out then is, of course, that as you see when you read through the full report that we are estimating that we have lost out quite significant amounts of revenue, more or less equaling the additional revenue that we estimate came in from corporate related services. But the fact that we can grow the underlying margins despite losing out quite significant amounts of revenue still on the not fully recovered base business, I think, one really needs to recognize the importance of that. As we have communicated before, we maintain the 3 year financial targets for 2020 through 2022. And on the right hand side at the bottom, you see the 2 pie charts that we typically show you. What is different this time around, well, point made fee for service has grown quite significantly as a proportion of overall revenue. The funded business, the employer paid business is back growing. It's 3% year on year, much lower than historically. But again, of course, the important thing here, it's a positive number. We brought in 20 4,000 new members during the quarter, which is not insignificant. And on the geographic split, I think the thing to draw your attention to is the German segment, which is now reduced to 23 because of India inclusion. So you see the German pie is growing 26%. That's a number that sticks out. There's very minor elements of acquisition growth in that. So the vast, vast majority of that number is underlying organic growth in the largest and most mature healthcare market in Europe. So I think that number somehow sticks out. Then move on to Healthcare Services. Very strong quarter for Healthcare Services. Revenue up 29.5 percent to EUR 146,400,000. Organic growth just short of 7% of that. EBITDA up a very strong 76% to €29,700,000 and north of 20 percent EBITDA margin. And this very strong performance is coming from a significant contribution from COVID-nineteen services, but also a lot of work being done with the cost optimizations. We estimate the additional contribution on EBITA level from COVID in this division at 6 point €4,000,000 or equivalent of 2.4% of that margin expansion. So you extract that out and you see the underlying margin growth excluding COVID was 2.9% up. Again, the point I made on the group just recently here that remember that, that margin growth margin expansion is coming despite having them still lost out quite a bit of volume in the still not recovered base business. So that's a very strong number. Fee for service, which in this division now for the first time is up to exactly 50% of revenue, never been on that level before, up 68%. Again, of course, most of that being the inclusion from Medicover Hospitals India that were not in the numbers last time around. Members now just north of 1,300,000, up 24,000 for the quarter. So that's an important number. We had very high demand in India during the quarter for COVID admissions. So we had 5,000 admissions during the quarter, which is significant. That tapered off somewhat towards the end of the quarter as the virus spread somewhat reduced in India towards the end of the quarter. And on the bottom hand pie charts, I think the only thing which I will draw your or want to draw your attention to is, again, India then representing now 20% of revenue in Healthcare Services with the full inclusion and growth of Medicover Hospitals India. Then moving on to Diagnostic Services, where revenue was also up a robust 17.5 percent to EUR 120,100,000. Organic growth was higher, which is an effect of that we've had quite a bit of negative foreign exchange movements against us. So pulling that out for an organic number that gets even higher at 18.7%, which is very, very significant indeed. EBITA at SEK 23,500,000, up 25% to a margin of just short of 20%, supported by significant amounts of COVID-nineteen testing, which we estimated at EUR 6,100,000 of extra or additional EBITA contribution or 2.9% margin. You pull out that 2.9% margin. And you see in fact in this division margins contracted 1.7% versus the prior year quarter. Again, just as we commented in the Q2, that's a direct reflection of the fact that in our underlying business, volumes have not fully recovered and hence our contribution from that part of the business is foregone and margins slightly lower. So I still make a point same as on Healthcare Services. The fact that we're having these results despite that revenue not yet recovered, I think, is a very strong sign. So fee for service in this division, as you know, has always been higher and it's 2 thirds of divisional. Revenue was up 16%. Number of tests increased by 3.3%. And I already made the point that although demand has certainly recovered sequentially, but non COVID-nineteen testing but non COVID-nineteen testing still has some way to go to be fully back. We grew our BDPs as well this quarter by 9 of them. And now for the first time, we have more than 700 BDPs across the region. Next slide, we have a nice picture. Just wanted to share with you, we have communicated some weeks back that we have opened at the Munich Airport, Terminal 2, a COVID-nineteen rapid test center. So this is up and running since about a month back. It works really, really well. So this is the way for travelers as well as airline staff to come get their test at the airport, get clearance, get on their plane to whatever destination you're flying. It's easy. It's very reliable and it works really nicely. So if anyone of you on the call happens to fly via Munich, this is Terminal 2. And I really do emphasize, come and see us at this test center. So looking at some specific impacts for the 2 divisions. So the net impact, if we take the we comment on this in more detail in the full report. So if we take the net impact of the estimated additional COVID-nineteen related revenues and pull off the lost revenue from fully not recovered business. In Diagnostics, we estimate that to be a positive $4,000,000 to $7,000,000 on the revenue line. We performed just north of €500,000 COVID-nineteen tests in the quarter and a little bit more than €0.75 million year to date. So you can see the ramp up in the Q3 relative to the first half of the year. And that test capacity is then further ramped up as we progress. And I just made a point that we continue to invest in infrastructure and machinery, upgrading really machinery in terms of capacity. Us as anyone else in the diagnostic industry do have supply chain challenges, whether that is obtaining the high throughput machinery or obtaining the required regions or utensils around to operate. We manage that, but that is for us as for everyone else an ongoing challenge. And I just commented on the Munich Airport site with the pictures we looked at. On Healthcare Services, we estimate the net impact, so the additional revenues less the foregone so far from a negative 3 to a positive 1. Now the integrated health care model has certainly shown a strong resilience, not the least by growth on the member level returning in the Q3. Our utilization is returned to much more normalized levels. That's important to point out because that reassures us that any potential backlogs of care needed is being looked after and cared for. Our fitness membership business is still impacted, where the some of these additional restrictions that has been put in on the back of increased virus spreads do impact the Gyms business. So that is impacted. And demand for COVID-nineteen treatments has been significant in India. I already made that point. And we see that has been slightly weaker towards the end of the quarter, which from a public health perspective is good because that's on the back of the virus surge somehow reducing India. At the end of the quarter, we had 630 dedicated COVID-nineteen beds in 11 hospitals across India. We have kept investing in bed capacity and also in machinery such as ventilators. I think the jury is certainly out in terms of where the virus spread is going to go from here. So we are not predicting. We're staying out of the prediction game, but it may very well be that the virus trends start swinging back up again in India and then we want to be in a position to be able to put in our effort to support what needs to be done to help out. And elective services is still lower than normal levels. I think I made that point a number of times. We have then put on these are 2 diagrams. You remember in the spring when the crisis first hit, one way we tried on these update calls then to illustrate for you what we put on 3 graphs like this, which were showing the German, the Romanian and at the time the Polish fee for service diagnostics business to show how demand dropped and then sequentially recovered. Here, we have done the same graph. This is just Germany and Romania to stay on one page. The point we made in the spring, this is very reflective as well if we were to do the graph of fee for service activities in Healthcare Services. So this is just really to show you in terms of the trend lines. You see 2 colored graphs. The bottom one, which is slightly paler, that is the revenue levels excluding COVID impact. And the more colored red is the total revenue level. So the point really to make with these two graphs is if you have the starting point at the very left and then you see where these two graphs end up, you can see that the Germany point we made many times in the spring recovered pretty quickly and then has overed along. The underlying business you can see in Germany has still not recovered fully, but it's more than compensated with additional COVID-nineteen services. And in Romania that's even more pronounced where Yes. So go on, yes. Yes. Right. We apologize for that little technological interruption. So I was just chatting about the right hand graph showing the Romanian daily revenue line. As an illustration and I made a point that while this is Romania Diagnostics, on the left is Germany Diagnostics. These two lines are very illustrative, whatever fee per service business in the group we would put on. Obviously, they wouldn't all be identical, but the trend lines would be very similar. So base business not fully recovered, combined business quite significantly ahead in Diagnostics. In Services recovered but slightly below in base business. And with that, handing over to Joe for a bit more detail of the financial comments. Thank you, Frederic. On this slide here, we broke out the COVID related revenues as well for a little bit of visibility. So overall, for the quarter, COVID revenues were some 12%. If you look down to the 2 segments on the Healthcare Services, that was a little bit lower, 11% and a little bit higher in terms of the diagnostic services, 12.7%. And that's obviously, as the diversity of the businesses in the Healthcare Services, there's only certain parts which then access and provide COVID related services, whereas across the diagnostics, it's much broader. And towards the end of Q3, we launched finally services also in Ukrainian market and Belarusian market. That started to pick up a little bit towards the end of the quarter. If you look at our preferred measure, EBITDAO at GBP 38,100,000 for the quarter, GBP 14.5 percent. And last time around, that was GBP 22.3 percent, so 71% up. So really fantastic financial performance on the back of that recovery and on the back end in terms of the services that we've been able to provide to talk to patients and governments in addressing the pandemic. So I'm very happy to be here. If we look at then in terms of government grants, we had some GBP 1,200,000 government grants recognized in the 3 months. And on the 9 months, we had €2,400,000 of government grants recognized within these figures, and that was treated as a reduction of costs. And if we look at the IFRS 16 lease adjustments, so the landlord agreed reductions and assistance that they gave us in Q2. We recognized a small part of that now in Q3, so some EUR 200 euros And for the 9 months, that was €1,400,000 So again, a reduction of costs. If we look at some of the financial items, interest costs GBP 3,500,000. Although we've reduced our debt levels, we still have the lease interest of which CHF 2,500,000 of that CHF 3,500,000. And so our underlying debt and actually mostly our winding or unwinding of discounting for various different items in the balance sheet, some €1,000,000 FX loss was more volatile. As when IFRS 16 came in, I predicted we will see volatility in that line. So we had €2,300,000 loss in the quarter and CHF 1,200,000 of that was due to euro denominated lease liabilities on our balance sheet are getting washed into the FX line. Q3 cash flows, very strong, EUR 43,400,000 and this is with also increase in working capital of something just over €9,000,000 And for the year, we had a positive inflows in terms of working capital. Tax charge, this we start to normalize as we are showing a good profitability level. We're looking to have something like probably in the order of a little bit higher than prior year, probably around 28.5% effective tax rate for the full year. Tax paid was lower as we have some ability to defer with some government schemes. So that was 7,600,000 actual physical cash paid for taxes. Cash and cash equivalents, very strong, just short of €110,000,000 so up some just short of €35,000,000 since the year end, obviously, with the proceeds from the share issue we did earlier in the year and then also our debt repayments. All of our commercial paper program has been repaid, so we had no commercial paper outstanding at the end of the quarter. So loans payable net of cash down to a very low just short of €62,000,000 Our lease liabilities, they've increased $9,500,000 The other side of that FX movement going through the P and L account is the lease liabilities increase. So if you look on the 9 months, dollars 9,500,000 I think just over half of that is due to FX movements. Lease liabilities, then up to GBP 185,000,000 from the year end level of GBP 176,000,000. We've been expanding in our footprint in India. We're adding new facilities in there as we did press release earlier on in the year. And then also in terms of adding new facilities in Poland as we put our expansion plans back into process. Liquidity very strong. We have pretty much our full revolving credit facility undrawn. And then in addition, our cash balance is on hand. Debt markets are very accessible. Our credit rating has increased. So we're very well positioned in terms of being able to make use of our balance sheet in the future. Capital investment, CHF 10,500,000. I've resumed our capital program as we put that on hold in the Q3 with the uncertainty. We have, for instance, our first linac coming online now in Q4 in our one of our Indian facilities and the next one should follow quite quickly early in the New Year. We COVID-nineteen helped us to really crystallize some of our thinking and review of some of our development units. And we have an impairment payment charge, dollars 5,200,000 on some goodwill and other assets, which have gone through in the 9 months. IFRS equity, just short of GBP 500,000,000 to GBP479,000,000 up from the year end, up on the share issue, up on the strong financial performance. We also had quite a large translation adjustment movement in terms of our net investment in foreign countries. We broke that out there. You see Poland is the largest of those. And obviously, with Poland being our largest footprint, even though the FX movements were the FX movements were large enough with our large exposure there in Poland to have an impact on that. Just to remind you, we look at our cash flow underlying in terms of the countries. And in all of those three countries there, we've got fantastic cash flows coming through. And that's really what it's about, is our ability to generate cash out of our investments there. We look at our financial targets, so extremely respectable. So Q3 organic growth 12.3%. And do bear in mind that when we look at the COVID related revenues for the health care services side of the business, a large part of that actually is in the acquired part of the organic of the growth. So very respectable. And even if we look at the 9 months, still a very good growth organically, even taking in the big shortfalls that we had in Q2. Adjusted EBITDA margin 19.8%. So again, very respectable. And even for the full year, 15.5%, which then is already at the target levels for 2022, obviously helped by the COVID related business. And then our capital structure, very, very respectable again. So 0.7 times in terms of our loans payable net of cash looking to our EBITDA figure. So I think that just reemphasizes in terms of the liquidity point that I made earlier on that we have a very good position in terms of being able to leverage the balance sheet further with both organic and inorganic growth. So Frederic, maybe I hand back to you. Sure. Thank you, Joe. So before handing over to questions you may have, just a quick wrap up. So we clearly have a very strong quarter behind us. In fact, I think it's a stronger quarter strongest quarter we have ever had. We see continued strong and growing demand for all COVID-nineteen related diagnostics as we go forward. We see some signs of early change in consumer behaviors for elective services due to the increased virus spread in our markets, but so far really only marginally. We do expect our strong growth trajectory to continue as historically. And I think we are very well positioned considering where we are and certainly our balance sheet and the demand situation for certainly for the remainder of 2020 and also into 2021. And with that, we wrap up and very happy to see if there's any questions. Thank you. Ladies and gentlemen, we will now begin the question and answer session. Your first question comes from the line of Christopher Nielberg from Carnegie. Please ask your question. Your line is now open. Hi, good morning. I wonder about the COVID positive effect on sales in the Healthcare segment. Is this mostly related to India? Or have you had inpatients in other countries as well? Yes, Christophe. It's mainly related to India. We do have it elsewhere as well, but it's mainly India. Okay. And your comment about continued strong demand for COVID-nineteen, I don't know if you phrased it services or whatever. Was that I said related diagnostics. Okay. So it's so where you see it now is in the diagnostics side, not in the health care side? Well, I said that we are certain to see continued strong demand in the Diagnostics side. And the demand on the Healthcare Services side is very much related to how the trajectory of the virus spread will go. And particularly in India. And I don't want to get into speculate and that was the point I made. We've invested to be able to be in a position if it start to goes north again. But time will tell how the virus spread in India evolves. Okay. But right now in India at your hospitals, do you have fewer COVID patients than the average for the Q3? Yes. Okay. And if and when volumes the COVID volumes are going down in India, how quickly do you think you could compensate that by the normal business? Or is it likely to see India declining year over year now in the next few? No, I wouldn't say so. I mean, it's not 1 to 1 week to week, but I think it's fairly compensatory, so to speak. The over a quarter, it sort of equals up. And also, Christophe, I think you need to make sure you don't underestimate what we've been doing in India as well. So we've added quite a number of facilities, and we still are adding new facilities as well. So like for like sorry, so year on year, you're going to have that driving growth as well. Okay. And just last one, the strong growth in Germany, you mentioned, how much of that is COVID testing? Well, I mean, we stripped out the amount of COVID testing for you and most of it is so a large chunk of that is Germany. So that very over significant growth, so to speak, is largely COVID-nineteen related testing. And that graph that we put on there just to illustrate the COVID versus non COVID, we have Germany there as well. So you can actually see day by day what this bill is, if you like. Okay. That's perfect. Thank you very much. Thank you. Your next question comes from the line of James Van Kemp from Jefferies. Please ask your question. Your line is now open. Hi, good morning. Thanks for taking just 2 if I can please. On the Diagnostics business, it's very helpful to see the revenue progression with and without COVID. I'm just kind of curious, when you consider sort of seasonality and things from where we are, is the 3Q number sort of representative of what we can expect to see in 4Q? And then my second question is on the Healthcare Services margins. Clearly, very strong in Q3 compared to history. I know you've given some qualitative statements in terms of what's driven that, but it'd be helpful to try and go into that in a little bit more detail to think how that can impact or benefit Q4 and as we go into next year, And if that's representative of the business mix? Thank you. Yes. Hi, James. So I think Frederic was quite emphatic about on the diagnostic side that we're going to continue to see large levels of demand in terms of COVID related services. So I think that that's not controversial if you look around what's going on in our markets. And I think that, that can be you can fairly clearly see that that's going to be the case. In terms of Healthcare Services, yes, the margin underlying has been very good. We took Q2 to clear out, as you see in terms of the impairment charges and things which we had less confidence in a more difficult economic environment. We're going to get to the points where we needed them to be to justify themselves. So we went through and looked at that. We obviously went through on our cost structure as well and looked at that. And then also in terms of the whole digital shift, in terms of that's been helpful as well for us in terms of being able to provide services in a more cost effective way. How much of that will stick, we'll see over time. And then you should see we came back to growth in terms of the Q3. So I think that is a very strong indication about the level of demand, the employment situation that you're seeing, particularly in Poland. So I think those are the things that are driving it really. On top of which, you then have the COVID related business, which we broke out for you. Sure. But I guess the margins were north of 20%, which is a new sort of phase of evolution. So because it is such a big uptick, I understand what you're saying kind of qualitatively, but are there any kind of one off kind of cost reduction measures which are expected to come back or mix shift expected as we kind get into next year, just because it is a standout number. It would just be helpful to understand perhaps how much those measures you mentioned benefited the profitability? Yes. I think you had we broke out also the government grants, so that helped at some sort of marginal level. And then the in the quarter, the support from landlords was negligible. So yes, it's a good situation. We've got a lot of people pulled together. And yes, those are the main drivers. We also, as I mentioned, we had we've retrenched a little bit in the Indian facility as well. So we took a view there in terms of some of the new development locations that we were going to cut those. So we came back to a core there. That also had an impact as well, particularly year on year. So that was very supportive in terms of the numbers. And then last sort of follow-up for me, if I can. So how supportive then was you mentioned the landlord. So if you hadn't had that support from the Yes. That was on the full 12 months. I gave you that number there earlier on in the call. So that was 1.4000000 Okay. All right. For the 9 months, a couple of 100,000 for the quarter. And then $1,200,000 for the government grants for the quarter, dollars 2,400,000 for the 9 months. So and euros 12,500,000 was the contribution overall for the from the COVID related business, which is the same at the beta level or an EBITDA level, because we haven't really allocated any lease costs into that. So there's not much difference. That's great. Thank you. Thank you. Your last question comes from the line of Paul Noring from Danske Bank. Please ask your question. Your line is now open. Good morning, guys. I have a couple questions. If we look at the current trading in October early November in Healthcare Services, could you say anything about how the kind of COVID developments we are seeing in Poland right now? How that is impacting elective surgeries and services? That will be very helpful if you could comment on that. Yes. I mean, that's the point I made in my little shorter wrap up here. I think I said, we are seeing some signs of change in consumer behavior for elective services due to the increased virus spread, but so far only marginally. So you can see some of it. It's a very big difference. Perhaps I'll just slightly expand on that answer, because we've had other questions that hasn't been asked on this call. But in terms of the increased restrictions of movement, etcetera, how does that impact versus how it's very significantly impacted us in the spring. And it's a very big difference in if I talk specifically now about Poland and in terms of the what the authorities do. Clearly, the virus spread is significant many, many, many times higher now than it was in the spring. In the spring, everything closed down and movements were significantly restricted, as we talked about quite a bit in the spring and very much impact everything we did. Now the restrictions on movements are much, much less, almost really none. You have quite a lot of restrictions things that would be similar pretty much in every country across Europe, perhaps slightly different here in Sweden. But that doesn't really impact yet people's ability to come and be serviced. Now consumer behavior still changes a little bit because of I'm sure people are a little bit reluctant perhaps to do some things that they can wait with. But it has so far what we have seen has very marginal impacts on us. And I'm not going to try and speculate how that will be a month or 2 down the road. But we certainly in no way would expect a scenario like what we saw in the spring. Thank you. That's great. And can you say anything about how the sequential maybe development in, let's say, Healthcare Services has been during the quarter? I mean, in July, August September, How has things changed over the quarter as it's been kind of flattish? Or kind of how has the development been, if you could say? No. I mean, I think not to pad our own backs, but I think it has been very much like we sort of predicted in the spring actually. Well, I think we called it back then an ongoing gradual recovery in the Q3 and approaching normalization in the Q4. And I think that that is very much what we have seen. We have seen an ongoing improvement sequentially during the quarter. So I think that very much supports that view really. Yes, that's great. And lastly, if you could comment anything about, I mean, the supply chain constraints that you're seeing in COVID testing, I mean, that's what everyone is seeing as there are so large volumes. But can you say that will that impact you negatively in Q4? Will you still be seeing like a I mean, you're still saying that you're predicting to see a strong development. But can you say anything you expect that to increase sequentially the COVID testing from Q3? Or will the supply chain constraints impact negatively? No, it will not. I mean, I think the point we're making, I think, we could not comment on this without commenting on supply chain issues because everyone has Then we have, I think perhaps I don't want to compare to other people, but we were quite fast to seek to increase capacity in investing higher throughput machinery. So we have as we speak, we have put in place significantly higher capacity. So I don't think it's going to negatively impact our ability for sequential growth in the 4th quarter. I think you should more read that comment that if we had had, which we don't, but if we had had another 1 or 2 or 3 pieces of machinery, we probably would have filled that as well. But we don't have that because no one else has it either. So you're going to run at full capacity. I think that's the sort of prediction we're making. Yes. I think that's anyone in this industry, you asked that question to, they're going to be running everything that they can. And if they could get more capacity, they will put it in place. Yes. Thank you. And if I may, just one last one. If we look at the investment levels that has been a bit lower maybe in Q3 and you're saying that you're starting to invest again now more in Q3. Can you say anything that will lower investment activity maybe impact organic growth going into 2021? Or do you see that maybe kind of pent up demand in maybe Healthcare Services will, what should we say, mitigate the lower investments? Or how should we see this? No, I don't think we maintain our guidance in terms of the 3 year outlook. And part of that then is making sure that we put in the investment that's required to actually drive that growth. So we halted things in Q2, but it was just a temporary hiatus. And we've put that all back in place. And as you can see in terms of the recent expansion in India, we even accelerated that a bit. Yes. Thanks. Thank you, guys. That's all for me. Thank you. We have no further questions at this time. Please go ahead. We have two questions in the chat room from Oil Bank. Regarding Slide 9, what is the index on the chart? It's in the euro and Romanian. Yes. Index is in euro for Germany and it's local currency for Romania, Romanian lei. And the second question is, is the recent acquisition of Dental Stents in Poland a new business area for Medicover? And if so, what is the overall plan? No, not at all. This is the private pay dental business that we have focused on since now, I guess it's 3, 4 years back, perhaps 5 even. So in terms of the Polish Dental business, we sort of do 2 things. Historically, we have provided dental service internally to our insured members pretty much since we started. And we certainly continue to do that. And in addition to that, since let's say 5 years as a proxy, we have also started to develop greenfield organic, our dental business to cater to external fee for service patients. And in addition to that, we have also consumed a number of acquisitions to build a nationwide dental network. So that is very, very strategic for us, is very well executed by our Polish Dental team. And in fact, that is probably the area where we do most absolute number of acquisitions, although all of them individually are fairly limited in size due to the nature of the dental business. So DentalSense, in fact, was probably one of the larger ones historically. So we expect and we will do many more of those as we proceed. Any more questions? We have no further question over the phone. Please go ahead. All right. So then we thank you all for participating and look forward to meeting you all hopefully at the Q4 announcement in the beginning of next year.