CMD 2021

Feb 25, 2021

Slides

Per Oskarson is the President and CEO of Mekonomen Group. He has been in the group since 2,001. He has since then had leading positions within sales, marketing and business development. Per has been one of the driving forces to develop the independent aftermarket. He has been The President and CEO for Mekonomen Group the past 4 years. Ursa Schellenius is the CFO of Mekonomen Group. She has been in the group and management team since 2017. She has a broad experience from the CFO role in various larger companies and have had a key role in the group's current structure and integration of the acquisitions of FTZ and Interteam in 2018. Pietra Berndelin is Director of Business Development and Strategy within Mekonomen Group. She has been in the group since 2010 As Managing Director for 1 of the subsidiary companies within the group, with focus on business development, and customer service. She has been in the management team of Mekanomen Group since February 2020. Tobias Nardvinger is the COO of Mekonomen Group. He have been in the group since 2011 in leading positions from the group's larger acquisitions, not least the recent acquisitions of EFTZ and Interteam. Hi, and welcome to Mekka Normann Group Capital Markets Day 2021. My name is Anders Ochsnerstrom and I am the moderator today. Today we are going to look closer at Mekonomen Group's way forward. The new strategy, the revised financial targets, markets and trends. We are here today in Stockholm and you are watching this online. And even if we can't meet in person due to the pandemic, we still want to interact with you. So in about 1 and a half hour, we will You can use the form on the right side of the streaming window. And again very welcome. And also Per, very welcome to you. Thank you. So it's late February, almost exactly 1 year ago. The pandemic started to spread. And we were all starting to understand what was going on. How would you describe 2020 for MecanominGroup? There is no doubt that 2020 was a challenging year for the world and also for an economic group. But we handled the situation very well and showed a strong resilience. Our priorities have all along been the safety and the health for our employees and customers. In what way? By quickly taking actions on safety equipment on our facilities and offices, but also changing the way that we work with distancing methods. Still, we were able to keep up working hard to improve efficiency and extract synergies. Okay. So what about the financial situation? We stand strong with an improved profitability. We also have decreased our net debt with over SEK 1,000,000,000 and we have a strong cash flow. This comes as a result of a focused work with lowering our costs in combination with our digital capabilities and a strong market position. So in short, I'm proud of the commitment by all our employees within Vekka Norman Group. Okay. So you're saying it Quite good when you say you have strong financial position, you have decreased in net debt, you have increased your profitability. Honestly, Per, did you think this was the case was achievable, let's say, 8 months ago? I would be lying if I would say that the road ahead has been completely straight without challenges. But I think everybody, including me, has All the time, I wonder about the development of the pandemic. Still, I had confidence in the fact that we have Malagorn organization, very strong local management. And I would say that last year confirms 2 things. First, we have a flexible organization. We have proven that we are able to execute during tough times. And second, the time of mobility is timeless. It's timeless, you say, but what do you mean by that? I mean that people and goods need transportation, and that's almost regardless of what is happening around us. The demand is stable and that is of course a favor for us as market leader. And looking back, I would say that I'm strengthening my beliefs after seeing everything falling into Okay. And right now as we speak, what is the situation out there? There is still uncertainties about the pandemic and how long it's going to last. But as 2020 has shown, the impact on our business will probably be limited for us as long as societies are not completely down. But we will keep focusing on serving our customers in a safe way, continue to work with efficiencies and synergies. So despite difficult market conditions, I'm inspired and really optimistic. Okay. So what is the most important message from you to the investors today? We are a growth company with a proven history of creating value and that we will continue on that road. We have a strong position going into the future. The shift towards greener techniques and digitalization is a huge opportunity for us. The future is also about being ahead of the customers' expectations and expanding our business. We work intensively with new offerings and solutions resulting in new revenues. Can you give us a few examples? For example, we have the fleet service and partnership with the electrical car manufacturers. Excellent. We look forward to all this and also the Q and A session. And if you have questions you want to ask the Mekonomen Group management team, feel free to send them to us or to call in at 3:30 when we start the Q and A session. But before we dive into markets and trends, Pat, I think it would be great if you could give us an update on your current market position and also about your business model. Can you do that please? Yes. First of all, to give you Mekka Norman Group in short, We consist of 4 business areas in Sweden, Norway, Denmark and Poland. We have 470 branches and over 3,500 workshops in this market. We have 5,500 employees counting in everyone who works under our brands. In the workshops, We have more than 20,000 persons and ambassadors. We have existed in this instant industry since early '70s, giving us half a century of experience. And today, we will tell you more about why we would be relevant player also going forward. With our business model, we aim to be the best and most comprehensive partner for everyone that services and maintain cars. We meet the needs of our customers with unbeatable availability, competence and strong brands in a way that is convenient for them. So how does this work? Yes. Let's have a look at the screen. This illustrates our business model. We source parts from the suppliers, mostly European manufacturers. Then we have our wholesales operation, which is Central warehouses in each country, the regional warehouses and the branches. And the branches are those who are locally delivering to all these workshops around in our markets and the workshop, of course, do the job Okay. So this is the parts, but you also offer services. So what about the services? Yeah, the services offer is added in our workshops concepts, and that's also very important part of the business. And that's Things like ERPs for the workshops is technical support. It's training academies, mobile payment solutions. We have digital booking services, management systems, all these things that make us complete partner for the workshops. Okay. So these branches and the workshops, Do you own them? Apart from a few franchise branches, we own that network. But when it comes to the workshops in the it's an opposite way. There we own around 90 workshop of that total of 3,600. Okay. So I think Mekonomen Group might be perceived as a company that is mainly focusing on end consumers selling parts to consumers. Do you think that picture is somewhat wrong? It is but understandable due to the well known brand we have in the company, not at least Mekonomen, but also Meerka, Biel Extra, Autumaster, Oco Service and other part of the concept service offer to the workshops. We have developed a solid B2B business in order to be a holistic partner to the workshops. This includes a strong consumer insight, include all that we do together with the marketing activities. You mentioned some of the brands. Is it necessary to have so many brands? Yes. One perspective is that we don't want to have 3 or 4 workshop with the same brand Beside each other in a simple street, but that because that would actually be the consequence. But we also see the need for different concept to attract a larger part of the market as possible. Workshops and car owners do have different needs and this we can offer by developing our concepts and solutions in different directions in each market. I still see that we actually have room for further concepts in almost all the markets. Great. We are also seeing new trends out there when it comes to owning a car. People might feel that they don't need to own a car, but they want to have access to a car like carpooling, car leasing, how does this affect you? When we talk about car owner, we don't we not only mean the private Companies, associations, authorities and other constellations are also important customers for us. This we refer as the fleet customers. Today, we have several 100,000 of cars within this fleet agreements on our markets, Cars that use our workshop concept for their maintenance continuously. That customer group is important for us for the future and here we will develop new customized solutions. Okay. So why don't we go to one of the fleet customers Here in Stockholm, Medrock headquarters, let's hear what they have to say. Midwerk offers a wide range of services within property development, construction, installation, automation, maintenance, repairs and consultancy to many parts of industry and the public sector. Our ambition is to strengthen our customers' competitiveness and Contribute to a better future by focusing on sustainable solutions. In collaboration with our customers, we place high demands on ourselves regarding high level of service, flexibility and the right solution to our customers. These are requirements that we also need to reflect on our suppliers. Mobility for us is about being flexible and being able to take us where we need to be to solve our customers' We need to be able to support customers and projects all over Sweden and our employees are often dependent on having a safe and fully functional vehicle to be able to deliver our services on-site and on time. Local availability and simple administration are important to us. This is a big reason why we have chosen Merck as a partner for maintenance of our 1500 cars. To have one partner and still have access to several 100 workshops across the country makes it really easy for us. The safety of our employees is of great importance and a large part of our employees spend several hours a day in the car. We want to feel secure that service and maintenance is made in the right way and that the cars work and are safe to operate. We need to make sure that we can safely deliver our business So it would be very interesting if you could please elaborate a bit on your track record, what you have achieved And the growth upside for the Group? Yes. We have had a strong history of sales growth, both organically, but large through acquisitions. We acquired Sorenson and Ballschen in 2011 and Mieka in 2012 and then Efte Satin into team in 2018. Since 2010, we had an average sales growth of over 13% per year. And what about the margins? Our adjusted EBIT margins dropped in the time of the acquisition in 2018 due to the lower profitability in the Polish market. But we are now on the right track, gaining synergies and closing 2020 with an improved margin and an all time high sales. We have a proven history of successful acquisitions, and we know to integrate as well as how to extract and realize scale synergies from purchasing and operations. So what are you most satisfied with when it comes to these acquisitions? We had a good profitability improvement in FTSET and Interteam. Sorenson and Balchem have had a fantastic development, And we have succeeded in gaining the expected purchase synergies, which also gained Mika and Meconomen. This is of course something we are very proud of and have worked hard for. Okay. So if we look at the challenges, what has been most challenging with these acquisitions? Well, at the time of the acquisition, we had a challenging time with weak market development. And in the Nordics, we saw a very slow market and major variations in currencies and other factors that negatively affected us. The timing meant that the short term upside was invisible. And then we, of course, had a pandemic. Today, we can see how successful the acquisition have been. Okay. So looking at the Polish market, it seems like the numbers are turning in the right direction looking at Interteam. Have you completed the turnaround now? We are on the right track in Poland with an underlying stable business, and that is very positive. But there is still some work to be done before we have a stable margin at this level. Great. So one of the acquisitions that you have made in recent years Our FTSET in Denmark. So why don't we go to Denmark, Odense and have a look at what Mekonomen and FTSET has achieved together. In September 18th, the Megalon Group took over the ownership of FDZ in Denmark. And as I said, we have secured to work as an independent business unit in the group and it's a big strength that the Mekong Group has a good between creating synergies between the companies in the group and in the same time securing decentralized development of the businesses. FSS has been strengthened in the change of ownership. We have gained strength in the negotiation Situations in the purchasing market where we have gained muscles being in the Mekolon Group and at the same time we have our position in the Danish marketplace. We work more independent than in the past, And at the same time, we are in a closer dialogue with the market, and we have a shorter decision making route in that perspective, also short time to market. When we look into the future, it is in a confident perspective. During the corona period, FTSE has managed to grow in revenue and also in the earnings. At the same time, we have Again, a very stable business. The future growth depends on how the end users buying behavior is shaped. Is it important to own a car or to lease a car? Sustainability in choosing the car and the services around the car, etcetera. Therefore, it's important that we see the opportunities in managing fleets and car communities. And also digitalization is important and the communication to the marketplace. All this growth perspective is also with With sustainability in mind, it is important for our future growth that Mekronom Group continuously is our business partner and secures synergies within the group companies. Interesting insight from Denmark. So Per, the obvious question might be, Are you planning any larger acquisitions? We're open to acquire the right company if and when the opportunity arises. The main reason for the updated financial target is to be prepared for opportunities in three directions, I would say. Growth through acquisitions, but could also be investments in becoming more efficient and to grow our core business and or reach our dividend targets. Okay. Three directions. You're talking about 3 directions. Will you choose just one of them or can you choose several at the same time? No. There could of course be a combination of these directions as well. Okay. So looking at the one of the future directions is potential acquisitions. So Orsar, what kind of acquisitions are you looking for? We have been clear about our interest for Eastern Europe, meaning Finland and the Baltic countries. These are still interesting for us. We also have a possibility to grow further in our existing markets, especially Poland, where we have a smaller share of the market today. Also, we do not exclude the possibility to grow further within the current business areas by broadening the business in new verticals or related areas. Will you be able to reach our targets? Yes, we will. Our strategy is based on actual initiatives and developments that we will execute on. We will look closer at the road to how to get there in just a moment. Thank you. Now let's move on and we'll go further into the agenda and look at the markets and trends of the industry. There are indeed many interesting developments and trends out there happening as we speak. With us now is Petra Berndelin. You are the Director of Business Development and Strategy in Mekodon Group. Welcome. Thank you. So you're about to tell us more about what is happening out there. But let me just ask you, if you look at the pace of change, is it A higher pace now than, let's say, 5, 10 years ago? I would say that there is a higher pace today Looking at new demands, new competitions, new expectations from customer, and there are sure many possibilities for us to meet the endless need for mobility. Okay. So great. So what are the clearest trends as you see? We note that people are more positive towards mobility solutions such as sharing, micro mobility or even robotaxis, All driven by sustainability and a greater trust in technology. We also know that people want to live their life online It's convenient for me as a customer. And we have also seen an increase during the pandemic due to trying to keep a safe distance. And many of the solutions we have seen, I believe, that they are here to stay. And we also know that people still want to own their car, and that has been an increase during the pandemic as well. And of course, while choosing that car, more and more people choose electric cars. Speaking of electric cars, and I know that you probably get this question All day long, all the time. But looking at a future where electric cars will be the only cars we have, How is that going to affect the Economic Group? Well, electric vehicles are expected to comprise around 10% of global vehicle sales in 2025 and up to 30% in 2,030. An electric car consists of less spare parts than a combustion engine. So it's a relevant question to ask. And if you do not act, there will be a challenge in, let's say, 10 years. We have serviced customers and their cars for 50 years, and we have lived through these kind of changes We aim to serve the customers and the vehicles in the next 50 years, whatever is driving on our roads. Can you elaborate a bit on that? -Yes, we have offered courses in hybrid technology, for example, since 2,005, when the first Toyota Prius entered our roads, and more than half of our workshop have competence within electric and hybrid technology already today. So we have decided to take it one step further and raising the demands on our workshops. Okay. So what is the next step? We will intensify our rollout of our workshop standard E plus with demands regarding competence, tools, safety equipment and also charging possibilities. E plus, what is that? That is our new own standard regarding demands on the workshop, making sure that we will be prepared to take on the next generation of car fleets out there. Okay. So how many of your workshops fulfill this standard today? We have 250 workshops fulfilling all the requirements today. And we are intensifying the work, as I said. And during the next 12 months, we will be 1500 E plus workshops. 1500, that is quite an increase. Okay. So Interesting. As you touched upon, Pietro, it's crucial to have the right people with the right competence to serve and fix The new cars with a new modern green technology. And many of you might know that Mekonomen Group have their own trading academies, But I'm not sure everybody knows how it looks like when you have state of the art training in real life. So let's go over to one of the training academies in Bergen, Norway. To our Norwegian Training Center in Bergen. My name is Silje Gullang and I work as a training coordinator at ProMaster Academy training center, we also offer more than 20 training courses for our applicant workshops and other workshops in all of Norway. And We have around 4,000 technicians training this per year. Let's take a tour. The most modern training course we offer is autonomous vehicles training level 2. Autonomous cars are labeled from level 1 till 5, where 5 is a complete self driving car with no need for driver assistance. Modern cars driving in regular traffic is at level 2 today. We are among the 1st independent operators to offer this training and have a large interest from technicians. Here is one of the equipment that is used for calibrating So numbers, cars. This is the DAS 3,000 that communicates with the software diagnosis in Bosch that guides you through the full procedure. Needs to have electric competence to be able to welcome all kind of cars. We have trained mechanics in electric vehicles since 2012. We also have our own certification for workshops since 2018. The certification is value for the workshop But also for the electric car owners, you can feel completely confident in the choice of workshop. An electric car is not Completely different from other cars. Most elements are exactly the same. However, when working with this car, It's very important to have knowledge in mechanical and electrical engineering. The safety around the car is also important to eliminate the risk of accidents Collective to collective current. And to close off, we can tell you that we are now preparing courses to satisfy workshop and technician in explained cars. We hope you liked the tour of our Academy and we hope you have a great day. Interesting. So Peter, we understand that you have a solid plan for handling electric cars as we speak and in the future. But will the electric cars need as much service as traditional cars? Well, their service need is a bit different, And it basically focused on inspection and filter changes. But we also see new elements being included in the service that we haven't seen before, like change of battery fluids, for one example. And we also know that The electric vehicles will still need repair and maintenance. So it might look like a completely new situation, but it's not. We have been able to grow historically even though the demand has changed with the longer service intervals, For one example, and the spare parts last longer and longer. So you see growth opportunities going forward then? Absolutely. -Apart from what I've just said, we see a whole new landscape developing. Can I ask you one question, Anders? If you must. How many car brands do you know? How many car brands do I know? I guess around 15, 20 tops? Yeah. I think 10, 20 is quite easy to state. But if I ask you to state 50 or 100, it will be a whole lot harder. We see an interest in development in the auto industry. We're expected to see around 2 50 new vehicles in the next coming 2 years alone. And many of these are new brands without the existing network for logistic and service and maintenance. We have that kind of network. So to conclude, you are confident that you will find a way forward where we can grow as you have done historically? Absolutely. We are very well prepared. We have lived through the changes before. And now we also see new business opportunities for us. Okay, great. So we all know that the competition is getting tougher. Can you just elaborate a bit on that? Absolutely. We see competition basically from Three directions. We've got the OEMs competing with us on the aftermarket. We see quite a few new actors competing online with price pressuring. And we also have new kind of actors, often with disruptive business models, forcing us to develop even faster. And to be in the forefront, we must focus on availability, Sustainability and Digitalization. Speaking of Digitalization, it's an increasingly important area in many Industries and sectors, software data, how will that affect the Mekonomen Group going forward? It will affect us and we will gain from it. All our development aims towards working smarter. We need to make it easier for our workshops and we need to be more efficient. Okay. Just to summarize then, it's a lot of things happening out there and there's a lot of things for you to do. How will you handle this How will you take advantage of this situation? We are the market leader in 3 of our 4 main markets. So we have a very strong foundation. We are also profitable in all our markets. And we will use our size So as we have heard, even if the technology might change, The need for mobility is timeless. And Per, your new strategy is called enabling mobility. So why a new strategy now? Markets and technology are developing, and we are in a shift with many things happening at the same time and where sustainability is a core. All this means great opportunities for us. We have a very strong position to build on. Our new strategy will make us profitable and make us grow in a sustainable way going forward. In short, we are an enabler of mobility today, tomorrow and in the future. Okay. So, Petra, if you look at this new strategy, what are the major differences compared to the previous strategy? We have doubled our size and have therefore Further scales of economics to gain. We do many things well today, but we needed a clear common group strategy. We now enter the next chapter of synergy gaining. We run cross functional and cross border development projects to make sure that we will be best in class. We will also focus even more on sustainability and not only the environmental part, but also the social and long term profitability aspects of sustainability. And with our new strategy, we will answer why we will be relevant for the future. Interesting. And we will dive into the What are the cornerstones of the new strategy? Yes, and let's have a look. Our strategy is based on our vision. We enable mobility today, tomorrow and in the future. Our enabling mobility strategy consists of 4 focus areas. The first focus is operational excellence. That means we will increase focus on efficiency, synergies and collaboration in our core business. This is 2nd, we will accelerate our concept development for workshops to increase loyalty and revenues, an area where we have a large potential going forward. 3rd, we will create new customer solutions to make the customer journey easier. We will forcefully use all the opportunities that comes with digitalization, data and customer insights. And 4th, we will create new revenue streams through a broad range of actions. For example, by entering new segments, Developing new business models. Everything we do within these four focus areas will be done with a sustainable mindset. This is important. We see that Menke Normann Group needs to be clear about this. Okay. Per, so do you think there's a misunderstanding about your commitment to sustainability? I hardly think so. We have been very clear about the importance of sustainability for many years, but now we accelerate our work. We do not only want to be best in industry, aim to be best in class when as well as leading the industry forward. Sustainability is not only about the environment. For us, it also means that we need to have a sustainable business and to continue to be relevant and grow over time. In short, we will address sustainability Okay. We will continue soon, but we will So we've had an introduction of the strategy, but we are more curious about what the strategy will lead to, namely Mekonomen Group Reaching the revised financial targets no later than 2025. Ursa, tell us more about this. Yes, we have updated our financial targets, and we have a plan to reach them. Let me go through this in more detail. Starting with sales. We target to grow by 5% per year on average through a combination of organic growth and smaller acquisitions. We have an adjusted EBIT target of 10% for the group. Our leverage target is adjusted to keep net debt to EBITDA within the range of 2 to 3 times. And our dividend policy is confirmed as the board intention is that we will pay dividend corresponding to not less than 50% of profit, unless there is a need to prioritize potential acquisitions or financial position, investment needs or are there further future prospects? Okay. So let's have a closer look at the EBIT target. The previous target was to reach an EBIT of at least 10%. Now you've changed that, so the target is to reach an adjusted EBIT of 10%. So why this change? It might be perceived as a bit defensive or is it more like an adjustment to reality? The adjustment is based on current organization including the acquired FTSET and Interteam. The target is mainly to a reflection of this. So you want to reach sales of SEK 15,000,000,000 at 20.25. So how are you going to reach this? We have a proven track record of strong growth, with an average annual growth rate of 13% over the last 10 years. This is total growth mainly driven by successful acquisitions. Looking ahead, We target to grow 5% per year on average through a combination of organic growth, our strategic initiatives and growth supported acquisitions. Given our strong position in the market, we expect to grow by 1% to 5% with different markets and verticals. Our 4 strategic focus areas presented earlier is expected to generate a larger part of growth going forward, where the area operational excellence is expected to be the main driver. Then We turn to our adjusted EBIT margin. Historically, we had been touching the 10% mark back in 2017, when it comes to our adjusted EBIT margin, then margin dropped after acquisition in 2018. Since then, we have improved profitability step by step. In 2020, we reached an adjusted EBIT margin of 8% backed by strong cost focus. So how did you manage this? Purchasing synergies generated from our latest acquisition is one important part, as well as the warehouse consolidation within MEKAM Mekonomen. We have also done a great job with cost efficiency measures and initiatives. Okay. So how will you reach the level of 10% in the future? Our strategic focus areas will support further margin improvement and make us reach the 10% adjusted margin at 2025, which corresponds to SEK 1,500,000,000 in adjusted EBIT. The focus area, operational excellence, will be the main driver of profitability and contribute through both efficiency and increased sales. Concept development, customer solution and new revenue streams will also add further to our margins and not least to the customer experience. So are you sure that you will be able to continue in this direction? We are confident in our strategy and the way During 2019 2020, we total generated a cash flow from operation of SEK 1 SEK 2,500,000,000 This has mainly been used to reduce debt. We now have a solid financial position going forward. Okay. So let's look at the dividend. You have a strong financial position. You have a Strong cash flow, you have increased profitability, decreased your net debt. Still you have decided not to pay any dividend. What is the reasoning behind this? Well, as I said, we have a solid financial position. We will create value for our shareholders, either by acquisitions, investment in our current operation and or through dividend. Okay. So maybe hard for you to say, but I think there might be shareholders that are wondering now when is Mecanoma Group starting to pay dividend again? Is it 1 year? Is it 3 years, what can you say about that? We remain committed to the long term dividend policy. However, The Board does not believe now is the right time to reinstitute a dividend. Okay. Thank you, Ursa. Now we have seen the financial roadmap to 2025 and that's excellent. And now we are going to dive into the full focus area more in detail. Pietra, as we have seen You want to increase your revenues to SEK 15,000,000,000 in 2025 and also reach an adjusted EBIT of 10%. We of course want to know more about the focus areas in the strategy and what you're going to do exactly to achieve this. Can you please enlighten us? -Absolutely. First of all, I would like to elaborate a little bit further about sustainability. That is an important part in everything we do. With the development in our surrounding and also outside the industry, of course, we will meet new technology, new expectations and demands. And sustainability is about creating a sustainable business for the future. And to do so, we need the right competence. We need the right people. And that is why sustainability for us is about people, planet and profit. And the initiatives we've got within our 4 focus area will take us to our sustainability goals. You mentioned finding the right people with the right competence. And that is a challenge for many companies in many sectors, but Mechelon Group you have decided not just to talk about this challenge, but also to do something about it. So Maybe not all of you know that Mekolon has their own upper secondary schools. So let's go to I should say here in Stockholm. That is inspiring. So let's move on to the first focus area, and that is operational excellence. Can you tell us more about this, Petra? Yes, operational excellence is about increasing profitability in our core business. That means reducing costs We must do more to utilize scale opportunities and synergies within the group. We have a successful track record And we have a clear agenda going forward. Okay, great. So let's dig deeper into this Area Operational Excellence. And with us here we have Tobias Nauringer, you're the COO of Mecanormen Group. Welcome. Thank you. Okay. So what do you think are the most important initiatives for Mecanopen Group within operational excellence going forward. No, but we must do more to utilize our scale opportunities and find synergies. And we see that we can really streamline this business area. And by that, we believe that we can have a cost cut of about 0.5 percentage every year and still have a growth with 5%. And that would mean that we, by 2025, would have extra SEK1 1,000,000,000 on turnover and generate another SEK100 1,000,000 on the last line here. And one may wonder what kind of how would you do this. And one example is, of course, for example, here in Sweden, the merger of the 2 warehouses we have done. That is a famous Topic for you in recent years. So why don't we go over to Strenghs and have a look? That is automation indeed. You get a very high-tech So this is a finalized project, right? Yes, it is. So this is in full operation now. And we can say it has actually been in use also already in 2019, where it was taken into use and then supplying the Mekronome branches. During 2019 2020, we had then moved over the Americas branches and thereby realizing the last synergies here. So that came actually now end of 2020 when the lease agreement was terminated on the old warehouse and also the last employees left the society. So this has really been a tremendous project where everybody put a huge effort into this, And a lot of engaged people has made this happen. Okay. So what will you do next? There's still a lot of opportunity, I must because you have to remember, we stock almost 100,000 item in each of our warehouses in Norway, Sweden, Denmark and Poland. And then Louis Delha also have regional warehouses. We have almost 400 branches in Scandinavia and 80 in Poland. And on our businesses, very much are delivering in 1 to 2 1 to 3 hours. And that comes from we only know partly of demand the day before, Very much happen when the vehicle is on the lift and then you need additional demand and that you want to have very quickly delivered because very few customers want to wait an extra day to have a vehicle back. In the same way, you can say it doesn't really make sense to take a half finished vehicle out and in out of a workshop. So if you're in the business Today, talk a lot about e commerce and saying you have to make quick overnight deliveries. For us, competitive advantage is to be able to deliver in 1 to 3 hours. And that's why it's so important also to have a big size as we are, because we can really then utilize that and have bear the whole cost structure on being everywhere here. We also see then huge opportunities coming here that we can also optimize Marvell stock in all of these branches we have. And we see that we could have virtual stocks and thereby also having even better availability for our customers, especially than here in Sweden and Norway, where we had run double chains basically. You say Sweden and Norway, but what about Denmark and Poland? Well, I would also say here because we learned a lot from this warehouse product in Sweden. And in Denmark, we have been really good on delivering. That has really been a key cornerstone of FTSET on delivering very quickly here. But we still believe we can do even more there. In Poland, we actually built 2 regional warehouses in 2019 'twenty. So that will really generate some sales here this year and coming years as well. So you have finalized the purchase and synergy project In Interteam and FDZ regarding those acquisitions, can you please update us on that? Yes, that has really been Above expectations, to be honest. And already today, what has been communicated externally, we already have any result. That can also be seen now in the report for 2020. We still see that we can do more in some product groups and to consolidate The product groups even more. This has been really great success historically for Mekonomen as well after the acquisition of Sorenson and Amulsion, Meka, now FSZ and Interteam. We see that when we get together volumes to suppliers and grow together with them, we can really benefit also on terms and conditions here. So it helps to be a big customer to our suppliers. Okay. So you have been working intensely with operational excellence for quite some years, You still think there is potential ahead, right? Yes. And especially as we become bigger here as well, I would say, especially within category management here, We can now easily see what's happening in one market. We use that for value markets. I would especially like to stress private labels. We've been very successful here historically in Sweden and Norway. We also see that Eftezet and Interteam are using private labels. Now with the new bigger group here, we are consolidating here. And we get then a great opportunity to specify really the products we want, take on direct deliveries from the factories. And this also means that we can do something which our competitors can't do really because we are so big. And we have good examples now. We have permice introduced in Denmark. Directly, we see that we can reuse the widened assortment also in Sweden and Norway. So there's a lot of potentials here for the future as well-to-do more. That sounds interesting. So just to be very clear to everybody, operational excellence It's not only about finding synergies and cutting costs. No, I think very much also by having better availability, we will sell more to Customers who have already today, we will improve loyalty. And of course, when we add on new assortments, we can really build growth for future here in our core business with the same cost structure. Okay. So another focus area for you is concept development for workshops. And this is nothing new, I guess. You have developed concepts before. So what is the difference going forward compared to what you have done historically? Yes, that's right. It's been a very important focus area for us historically, and now we are accelerating. In concept development, it will lead to loyalty from the workshops, which means increased sales and increased profitability for us. Yes, absolutely. We will continue to develop elements that we already got and make them even better and add new elements that will simplify for the in the everyday life. A large contribution will come from the Polish market, where we will develop services for InterTeams affiliated workshops. And of course, we can use the valuable experience we've got From the Scandinavian markets, we've got, for example, booking digital booking services and technical support solutions to be implemented. Okay. So what did the workshop say, ALs, in addition to that, that they want in terms of concept? -It's crucial that we bring customers to them, and we do so through the digital booking solutions I just mentioned and We got a very good example from Denmark with Workshop 365. So Workshop 365. Let's go over to Denmark and have a look. Workshop 365 is a concept That systematically optimizes the workshop and helps the workshop into the future. Workshop 365 consists of 11 different elements or themes. For instance, how do you design a workshop or how do you market A workshop, how do you educate the people in the workshop and also how can you optimize the processes, with In the workshop, it depends on the need of the workshop owner what we want to achieve with the program. The value creation of the workshop 365 is actually that you will have a second opinion on how You do the workshop in the daily life business. That means you will have a consultant looking into the processes and the performance of the workshop, a second opinion, you can say. And for that, we will have the opportunity to come up with suggestions how to improve the daily business. So workshop 365 create value for the customer in different perspectives. Based on more than 125 cases, we see that we can create value within helping the owner With a better turnover and better revenue, we help the owner on how to perform in marketing or how to perform in strategy, A specific case where workshop 365 created value was at a workshop where we did an analysis On the financial figures, we actually compared these figures with other workshops and found out that the amount, the rate of Invoicing compared to the amount of employees were too low. So we helped the workshop owner with a program so he could be able to increase the revenue by invoicing a higher rate per employee and that meant Compared to the year before, the revenue was increased by more than 10%. The future of workshop create loyalty towards FS7. We see that we differentiate from our competitors. Workshop V65 creates value towards the customers as well as to F27. So let's move on to the 3rd focus area in the strategy and that is create customer solutions for car owners. So you talk about being ahead of the customer, What does that mean, if you can be a bit more specific? Easy to use digital solutions has never been more important. And during the pandemic, we have seen an increase in digital bookings and sales online. And we have accelerated our work within this area, making it possible for you as a customer To have your car fixed without any physical interaction. You book online and you check-in your car in our key cabinet share box. Okay, interesting. Can you tell us a bit more about that Sharebox solution? Yeah, it's a brand new solution that we put up outside the workshop for you to check-in and check out your key in. So you book online, you check-in the car, And when your car is ready, you receive an SMS with all the details about your car and how to pay. You pay online and you can pick up the car and your key whenever it's convenient for you. Okay. So you have worked a long time with digitalization and digital solutions. So that's nothing new for you. But let's have a look at your journey. The digitalization of our industry began in earnest in the year 2000 When the analogue spare part catalogues were digitized through a car's registration number or car model and the push of a button, We obtain all relevant data such as service and maintenance schedule and which spare parts and accessories are suitable for the car. Today, more than 90% of our spare parts sales to affiliated and other workshops take place via our digital catalogs. In recent years, digitization has contributed to the development of many new services. Through our workshop concepts, we offer a wide range of solutions to optimize our workshops' profitability and simplify their administration, including business systems, Technical support with digital collection of solutions, competence development through e learning when there is no time or opportunity to participate in physical training as well as quality management systems. For the car owners, we've developed a booking system for workshop shop visit, we offer a digital car key box, Sharebox, outside our facilities. Sharebox is also integrated with our mobile payment solution, where the customer can settle their payment when suitable before the car is picked up. This is convenient for car owners who don't have the opportunity to leave or pick up the car during the workshop's opening hours. Together with the start up company, EZ Ride, we're developing an app for carpooling with AI technology. With the service, we Target companies that want to offer their employees a more environmentally friendly and cost efficient way to commute to work. Employees with a car who drive to work, compose their itinerary with the opportunity for colleagues to travel along. Through AI technology, drivers and passengers get a full view of the journey's cost, including fuel consumption and impact on the environment. EZ Ride also develops car sharing technology and solutions. With this, we meet the trend around mobility through car sharing with great potential to attract new customer groups such as housing associations and companies that are looking for a simple and sustainable traveling solution. Digitalization is a large part of our future And we'll create new services and a seamless customer journey. Okay, Peta. So so what else lies ahead for the group? E commerce, business to consumer, is a very important part where we make sure we'll be in the forefront. With the to develop the successful Click and Collect concept and of course also try to spread it wider in the group. Spread it wider. That sounds interesting. Can you elaborate a bit on that? How will you improve your e commerce side of the business? Well, e commerce is all about the customer experience, the availability, the fast deliveries, Seamlessness, of course. And we will also increase our marketing within this area to be visible to our customers. Okay. So I saw this press release this morning that says that you are offering service agreements for basically all the car brands in Sweden. I mean, Is this something new or It is. The offer to basically all the car owners is a new product. And we saw the need on the market to offer affordable and easy to understand service agreements. So we wanted to enter the market in a transparent way, easy cost structure, no hidden costs and with easy to understand terms. Okay. So does this regard all the cars? Yes. Old cars, new cars? Yes. Old car, new cars. Electric cars? Of course. Okay. So interesting. Let's move on to the 4th And the last focus area in the strategy, enabling mobility, and that is to create new revenue streams. So It might sound like you are planning to enter new segments. Or what is the plan? Well, in short, We're looking at acquisitions, development and collaborations to secure solid growth. We will develop more product and services to our existing customer and find the new customer segments as well. The environment will change and we need to change too. As you say, there are changing developments and new trends and that also creates new possibilities like the one that you have grabbed when it comes to the Chinese car manufacturer I'm standing in the Xiaoping office in Oslo. Xiaoping is the most recent brand of electric cars to the innovation market. This is not a coincidence as Norway is the world leading market in electric car transformation, And we are attractive to all the world's electric car producers. What happens here in Norway will much likely steer the development in the rest of the Northern Europe regarding electric cars. This makes us group of pillars and proud contributors with our expertise in area to the rest of economic groups markets. Here are a couple of numbers that explain why the electric elite is looking to Norway. The electric Car share of the total market in Norway is 12%. A growth that has finally come in the last 8 to 9 years. The total electric car sale in 2020 was 54% with a 66.7% market share in December alone. Norway has suggested to fade out sales of fossil fuel cars within 2025, and the authorities provide Strong incentives for choosing electric cars. We will have documented expertise in electric cars To make us attractive to other electric car owners, professionalize their business and make the chain more attractive to other workshops and car importers. Which brings us to this car, the brand new shopping model. As of today, a handful of Norwegian drive 1 of these cars. Schaupeng's ambition is to increase the market share significantly over the coming years. And that is good because it's Meka Norway who is in charge of all sales of original spare parts to Norwegian market. We will position Meka as a strong partner to the car manufacturers and to increase our standing in the market and make us more attractive partners. It also represents sales and earnings we could not take part in earlier. And not to forget, This case requires low investment as it largely uses already existing resources and distribution networks. It provides Meka workshop access to customers from day 1 in a car's lifetime and use a customer base that traditionally attainable for an independent workshop to obtain. To summarize, the future of the car is electric, And we as a group and company are prepared. And together, we can ride electric cars into the sunset for a sustainable tomorrow. Interesting. Peter, will there be more agreements of this kind in the near future? Yes. The new car producers opens up for opportunities, and we have ongoing dialogue with several of these actors interested in our Scandinavian markets. And our group is a very good fit. We can deliver on several of their needs. Maj, can you give us a few examples? Absolutely. We have a pallet of services. First of all, we can offer test drives and car deliveries from our facilities. We are a solid partner for warranty, services and maintenance. We can help them with training, authorization and technical support. And of course, we can handle their wholesale operation. So we will for sure gain new revenue streams. Interesting. And that was the 4th focus area. So we now know What your strategy looks like. We know there's a road forward and we know that there's many initiatives going on. Exciting. Thank you. Thank you. In just a moment, we will start our Q and A session But before we start the Q and A session, Pal, it would be interesting and relevant maybe to summarize what we have been talking about today, what are the takeaways? Yes. And in short, we have seen that Mekonomen Group has a very strong position in our markets and that our business model is stable despite cycles. We are a growth company with a proven value creating model. We have many several successful acquisitions historically, and we will continue along this road. There is a changing market with pressure but also with many opportunities. We are in the pole position to increase market shares going forward, Thanks to our leading positions in our markets. We have updated our financial targets and will reach no later than 2025. Our new strategy will take us there. We will focus on operational excellence, concept development, Customer solution and new revenue streams. We will all do all this with a secure, sustainable growth for years to come. That is about it. Thank you for summarizing, Per. Thank you. Okay. We will start open the Q and A session. But Welcome back. In just a few moments, we will start the Q and A session. But before that, I was actually thinking of something that you said, Orsar, In your presentation, it was about the growth, the market growth. And you said that the market is expected to grow between 1% 5%. So can you please elaborate a bit on that? That is an average on the large part of the European market. There are differences between different markets. For instance, here in the Nordic, where we have a mature market, We expect the market growth to be 1% to 2%. Okay. So that's in the Nordic market. But the Polish market, it's quite different. What are your view on Poland? In Poland, we expect a more rapid growth. We expect the market, as we have said before, to grow 4% to 5% a year. The Polish market is growing due to the Polish People getting higher standard of living, they are able to spend more money on their cars. There is also consolidation in Poland that will Lighten the price pressure and support further growth. Yes. So the consolidation in Poland, how are you planning take part in that consolidation, if you can say something more about that. Well, our main focus is to grow organically and to focus on development of our concepts. But as we said, we are always open to evaluate possibilities as they come along. Yeah, great. So, Per, you can't control much yourself within the Group, of course. But outside the Group, There's a lot of things happening as well, regulations and so on. And you are the one of the driving forces in the aftermarket association called SBF. Can you tell us a bit more about that? What you do in SPF and what your priorities are? Well SPF is that's So the Association for Sweden, we, of course, would like to make sure that we have fair and equal competition where we also are regulated by European norms and so on. So we also have representatives in Brussels who is working at that level. But I would also say that As an association, we also try to work together with to get more attractiveness of this Industry. We know that there is a lack of mechanics, but we'd like to attract more competences in general to the industry. I see. And talking about you mentioned Brussels there. Another important issue or area right now that affects many It's the Green Deal, which if I just explain it very shortly, is a commission's way of the plan for making The business is more sustainable and to define them as sustainable. And we talk about the taxonomy that is coming. What is your view on this? How will that affect Mecanomon Group? We'll follow this, of course, very closely. My Firm belief is that we, as a market leader but also as a leader in within sustainability, will have great possibilities also with this new taxonomy and so on. So we really and I think that As we have talked about today, sustainability is for us a very common part in actually everything that we do. So we're quite confident that we will. You feel confident about that? Excellent. So I'm wondering if we have I'm talking to the operator now. Do we have any questions? There are no questions on the line. Excellent. So we Yes. Okay. We do have no questions. And this is from Matt Leese from Kepler Cheuvreux. A couple of questions. First, Can you hear me? We can hear you, yes. Yes, great. Just you mentioned sort of the reason why you launched a new strategy that you have through and you're finished with restructuring or integration of the acquisitions and also the Well, integration of the 2 warehouses in Sweden. And I just wondered if we should sort of interpret that as We shouldn't expect any more restructuring. Are you sort of up and running fully in the sort of structure you have? Or I mean, could there be other measures that you're able to implement even if you indicate that you have come a long way with Okay. Per, maybe that's a question. Yes. I would say that there is still Some possibilities. I mean, you mentioned the logistics in Sweden, but we can make improvements in logistics in Norway and Denmark also. I think we have made 2 successful regional warehouses in Poland that Could also be evaluated if we should have more. So there's still room for additional improvements. Okay, Mads. Yes, good. And then I was just wondering the year over year impact of the sort of Well, you implemented the procurement synergies during 2020, I guess. And is there any sort of Well, the year over year impact 2021 compared to 2020, bolster to procurement synergies and also the sort of integration impact from the warehouses. Tobias, please? Yes. I think as we said here, I mean, what we have been communicating externally, we can already We say that we have in the result. And even though that we also obviously see that we have had less sales and also bought less goods. So of course, there are different dynamics here affecting right away around as well. And together with that, there was a really turbulent year also on Currencies, and there's been also other pressures in the market here, so it's very hard to say. We can say what we said and expected. We are confident we have delivered. And of course, we hope for a good sales and a continued good development here. And that will, of course, benefit us long run. Excellent. Mads, did you have any more questions? Yes. I could have another one here or 2 actually. First, I mean, many competitors like to increase the web based sales. And I guess you have the Xpeng Chinese electric car there. But I mean there are more sort of traditional brands as well, they try to do the same like Baltimore, for instance. Do you see the opportunity there to maybe increase service for these or supply and service parts to these more traditional brands as well when they are newer, I mean, not only when they that have become a couple of years old. Okay. Perni, do you want to take that? Yes. You mentioned the Volvo and Melia. And I mean, we believe that there will be changes in the market. And I think that we are very well positioned to deal with that and to actually To gain new revenues out of that, Xiaoping in Norway is just probably the first example. So we believe there will be a lot of opportunities in the Great. And you had another one, Mats, I thought you said. Yes, another one there also fine. Well, Normally, you showed the sort of growth on electric cars and it sort of have Still it's a rather limited maybe part of the total to 12%. So maybe you haven't seen the full impact there of the fully electric Have you seen the sort of potential impact on profitability in a more electrified world? Peter, sounds like a question for you. Yes. It's like you're saying, it's a little bit too early to actually state The actual impact on us, of course, we are monitoring this very closely to follow the progress. It's main priority we can offer the right products and services to them. Mads, were you satisfied with that answer? You have any more questions? Yes, thank you very much. Perfect. Thank you, Mats. And I think we have another person on the line. Is that correct? Yes. Your next question comes from the line of Andreas Lundberg. Please ask your question. Yes. Thank you. Good afternoon. Can you hear me? I can hear you. Cool. Great. I think you mentioned that you can cut costs by 0.5% per year. Was that correct? Yes. In relation to sales, yes. In relation to sales, so that implies some kind of sales growth? Yes. So cost in relation to sales will decrease going forward. Okay. I thought you said that you could manage to cut the cost in absolute terms, but that was not correct. And on the sales growth target, 5% or so, how much would you say would be organic versus acquisitions? Well, as I said, we expect the organic growth in the Nordics to be 1% to 2 percent. And in Poland, we expect 4% to 5% going forward. So 1.5% will be organic, I would say, in average, perhaps 2. And on the acquisition part, I guess you're talking about smaller What kind of businesses are you looking here at here? Well, should I take that? Yes. We will Only do acquisition if we find the right company to acquire. And as I said Earlier, we are looking ahead towards Eastern part of Europe, and that means Finland, Balticum countries and perhaps also to expand our business in Poland. But I want to be clear about that we are not there today, and we will only acquire good companies that fits well into our portfolio of companies. Andreas, did you have any more questions? Yes, follow-up there. I mean, after you said you Before we do that, please just ask you to turn off your microphone when she answers. That will be excellent. Thank you. Thank you. Now I thought you said that there were smaller acquisitions included in this 5% target. And on top of that, you could do maybe major ones. Yes. The question is the add on in like Poland and Baltics, are they part of 5% growth ambition or is that on top of that? Thank you. It's on top of that. In the financial target, We have the organic growth. We have the impact of our strategic initiatives and smaller Acquisition. We do smaller acquisition often, like smaller workshops or Smaller companies. So the targets we have set today is the operation and business we have today. And the growth forward does not include larger acquisition. So that will be on top if they come. Okay. Lastly for me, on the cash flow side, which obviously been strong in 'nineteen and 'twenty I think you said just about SEK 1,000,000,000 in operating cash flow. What would you say is a reasonable level going forward? Thank you. When it comes to cash flow, we will It's depending, of course, on the EBITDA, but I see cash flow going forward develop positively as well. And we will With the new target set on the covenant, the leverage level, we will stay somewhere between 23 when it comes to leverage. So I see that we will continue to have the positive cash flow we had during 2019 2020 and that we always have in the business. So that's how I see the future. So you wouldn't say that 2019 2020 was Overly good due to extensive efforts and the working capital effect. Well, in 2020, We had a positive upside of the state support when it comes to taxes, etcetera, of €200,000,000 impacting working capital positively. So that will not come in 2021 if there isn't a completely lockdown and we get new support. But otherwise, I see that we will deliver on EBITDA, and we will Thank you. Excellent. Thank you, Andreas. We have a couple of questions coming in from In written, and one of them is about the offer E plus the new service offer that we heard about today. And the question is, you currently offer E plus at 250 workshops. So what's in your findings so far in terms of money spent per service and frequency of service Relative to nonelectric cars. And, Perta, that feels like a question to you. Yes. And it's similar to the question that we've got before, we're monitoring it very closely, but it is a bit too early to draw any specific conclusions from this. Okay. And another question on the same topic. Can you please elaborate a bit more on what needs to be served on electric cars And when in the cars, electric cars lifetime? Yes. To give all the details, I Suggest you attend to our academies. But as I said before, It's mainly about inspection and filter changes on the electric vehicles. But we also see new elements being added, like change of battery fluids. And I do expect that we will see that because we have seen it historically within the technology development. Great. So another question here is that Mecanorvan has you have previously mentioned that the market Fragmented and ripe for consolidation. From your perspective, are there still good opportunities for consolidation In the market for fair prices, good opportunities for fair prices when it comes to consolidation. So who wants to take that question? I can take it. There Is and will be good possibilities, especially in Poland. We see a consolidation in Poland or it will be a consolidation. And we want to be part of that when it comes and to evaluate possibilities in the market. So you can still do good deals. You can still do bargains. Hold on, basically. Another question is the share of sales from commercial fleet owners today, how big is that? And what is the expected development in the coming 5 years? And I don't know if you, Piyush, want to take that one? We don't share the numbers of exactly how big the share is. But I would like to say that this is an important business for us. It's growing. And we have Several 100,000 of cars already in this complete agreements. We believe that this is a market which will expand in the future and it will not only be about of normal companies having company cars and delivery cars because, of course, we also see this as the business taking care about new ways of owning cars and new fleets and so on. So it's It's a growing business and it's strategic important. Okay. Thank you for that, Par. We got another Question about private label. So what's the private label share in Poland? And also What's the share in your most successful country in terms of private label? So Erik can take that one. I would say that About 10% average in the group. We have a higher percentage in Sweden, Norway, where we worked more actively historically, Thereby saying it's a bit lower in Poland, then one has to remember as well, it's different private labels here. We're asking maybe for a more high quality Here in Scandinavia markets, it's more low prices. It's not exactly the same specification we're selling in the different markets here. So it's fulfilling a little bit different demands. It's also very hard. So even if I say an average figure, it also varies very much depending on which product groups you're talking about. In some product groups we're launching, we take 50% market share whether we decide not to go into certain product groups. So it's a very varying figure, but roughly about 10% in the group here. Okay. That is clear message there. Okay. So operator, I just want to check with you, are there any more questions coming Okay. The next question comes from the line of Matt Lees. Please ask your question. Yes. Hi. Follow-up there on digitalization, I guess, and the cost related to it. Could you say something there? Or have you passed the peak there? Or is there something that will sort of develop as a percentage of sales. It won't change much. And I mean, there are so many opportunities. Do you do this cooperation with other parties? Or do you need to sort of hire more people and competence to be able to sort of Explore those opportunities. Beatra? It's a mix of both. We There is still a lot to do. Digitalization is even though we have worked with it for a long time, there are a whole lot this area. And we use internal resources, and we also use external resources depending on the system and the nature of the project. Okay, great. Mads, did you have any more questions? And should we expect those costs to sort of increase or stay at the same level? Or We do very clear business cases developing the services that we can gain So we feel very confident that when we start a project, we also know what the outcome will be. And that will, of course, decrease the costs or increases sales. Great. Okay. Thank you very much. Thank you, Mats. So we have another question coming in, in the system and it's about the Build Extra implementation in Sweden. It differs quite a lot from Build Extra in Norway. So why is that? And how are you planning to roll out Billeksdard concept in Denmark and Poland? I can take that. We yes, it's true that there is a difference between the two concepts. So I would say it's more of sharing the Same brand. We evaluate this continuously. And but at the moment, we are not in a plans for expanding that to the other markets, but who knows in the future? And maybe to add as well, we as I mentioned, in Denmark, we have several concepts is very strong in different concepts in Denmark. So we are really well positioned currently as well with the concepts we have. Okay. Thank you for that. So another question here coming in is, is there a clear market leader in the aftermarket in Finland? Or are there a couple of market leaders in Finland? So, Par? Yes. There is I would say there is Number 1 and number 2, who is kind of sharing the market or sharing the market leader position. And then as in many other countries, there is some smaller players as well. I would say that Finland is still not as consolidated as we have in Sweden and Norway, but maybe a little bit more consolidated than Poland, for example. Okay. Thank you very much. And I think that was it. We have no further questions. And we are starting to summarize this Capital Markets Day. So that is the end of the Q and A session. Let's have a summarize. Okay, great. So this is about it. Time flies, Per. It's time to wrap this up. So do you have any concluding remarks? Yes. I want to emphasize that we are all very inspired, and we have a strong 2020 behind us. We've proven to be on the right track. We strongly believe in this updated strategy. We will continue Thank you very much, Thierry. We've had a good time here these hours, and I hope you had, too. So let's take care out there. And thank you, and goodbye.