Earnings Call: Q2 2021

Aug 20, 2021

Quarterly report

And without further ado, I would like to hand over to the CEO, Magnus Gerber and the CFO, Joon Masseggen. Please go ahead. Next slide, please. Thank you, Jenny. So my name is Magnus Seaborn. I'm the CEO and one of the cofounders of the company. And with me Today, I have also our CFO, Jonas Seeborn, also one of the cofounders. So We will, after a very quick introduction to the company, dive into the highlights, the business highlights of the Q2. I will present those. And then I'll hand over to Jonas, who will walk through the financial development and highlights in this period. And after that, we'll Have a Q and A session, and I believe you are all invited to provide your questions by e mail for this. So, Modelon is a software company in the sector of computed aided engineering. Here, we are providing solutions for systems modeling and simulation, and that means that we are helping Technology industry customers to digitize their engineering workflows. In order to do that, they need a digital representation of Their system or product, be it a car, aircraft or a power plant, that can reproduce the behavior and performance of This product in the digital domain. And this is precisely what we provide solutions for. We are serving Technology enterprises around the world, and I'll give several examples further on in these presentations who our customers are. We were founded in 2,005, have around 100 people, distributed in 10 offices, 6 countries, North America, Europe and Asia, Headquartered in Lund and we have a high portion of PhDs among our employees because we're operating in a very high entry threshold technology domain. We're currently in a transition of our business in that we have launched a cloud platform By being the first of its kind in the for systems modeling and simulation with a big market To address. And that means we have set out very ambitious growth targets for the years to come, formulated mainly In our recurring revenues, so we have said that we will achieve a growth of our annual recurring revenues Compound annual growth rate of 35% until 2020 and then gets up to SEK 100,000,000 Swedish krona in ARR. And with that, we shift to the highlights of the periods, and I'm very pleased to inform that In Q2, in the second quarter, we are seeing solid growth rates of our ARR Of 8% quarter to quarter. And this means that we are on track to meet the targets we have set out on the ARR growth. We're also very happy to see that model on impact ARR, the portion of ARR generated by model on impact It's also high with a solid quarter to quarter growth rate of 29%. And this is the Product that is the engine for our growth in the years to come. So this is very good. We have won several new industry accounts in the period, and we're seeing good activity level overall. I'll get into some more details Further on. Healthy lead generation means that we are filling our pipeline for to drive sales and growth in the quarters to come also. We're also, as I said, we're in a transition period. So in the period, we're also taking firm steps In realizing our growth plan, and that means accelerating investments in commercial activities and teams and also In accelerating the development and maturation of the ModEle impact platform to drive growth. We're also shifting the funding source. So we've been in a bit Special situation in the years 2018 to 2020 where we have benefited from one of our customers contributing To the funding the development of our platform to a fairly high portion. Now in the Q2, this Co founding project is coming to an end, and we're shifting then the funding source to our own funds. And this is also as flagged in previous reports. Let's look a little bit on the sectors where we operate, activity levels and such. So our 4 target GSR Automotive, Energy, Industrial Equipment and Aerospace. On this slide, we also you see a sample of some of our Customers in these sectors and we're I'm sure you recognize many of them as very fine brands, very good companies with Good large business potential. So we're of course very, very proud to have earned the trust of such fine companies to use our solutions. I'll highlight a couple of those in the presentation today. We have received some great customer testimonials in Automotive and Energy Industries. Overall, I'd say that as reported in the last quarter, we had good traction in the energy industries and in particular in the context of The clean energy applications of various sorts. What we see in the second quarter is also an increased activity level in automotive, which we're very happy to see. Parts of that is the recovery from the pandemic 2020. So customer highlights, Subaru, you're all aware of this fine company. I used to have a couple of their Karsten myself, very fine machines. So they are using Modelon Solutions in the context of development of their electric drivetrain systems, motor transmissions, differentials and so on. And they are now testifying publicly the value that they are benefiting from using our And we're very, very proud for this. And interesting here is that they report The typical benefits that you get from using simulation, you can reduce the number of expensive Prototype experiments that you do in workshops and so on, you get higher quality Engineering designs where you can reduce the number of rework iterations that is typically necessary and so on. What they're also highlighting, which is very interesting, is what they called an impact on their human resource development. And actually what's happening here is that when Their engineers are using the digital models of their product. They can do they get insights which they were not able To get in their traditional way of working, so they can see that as a side effect That was perhaps a bit unexpected for them. They see a significant increase of the skill level of their workforce, which is, of course, very important and very high value. Another highlight or another example I want to bring up here. We have several Customers in the energy domain that is working in the context of microgrid power systems. So this is something that is very important when we add more and more renewable Energy sources to the power grids, so there's a lot of activity here in developing good solutions in this space. And As I said, we have several customers using Morgan Impact here. So what you do then is that you have a local Power grid with sources, loads and some kind of energy storage. And you need to design, configure And size the components, the different parts of this grid in an optimal way and also to operate this grid in an optimal economical So in Model and Impact, you can develop using drag and drop components from our embedded model libraries, Almost like you build with LEGO bricks. You can build a digital representation of this system. You can design and configure it and size it to meet the requirements Needed. And then you can also take this model and generate a web app which you can use for Production planning optimization in the operation of the grid, for example, to adapt to various load conditions, Various climates or weather conditions and so on. So this is very, very high value. We see a lot of traction in this segment. So this is also related to one of the large megatrends that we I feel that all essentially all our customers and the industries are exposed to that of sustainability. So there's much activity going on in technology companies, you're all aware, in improving, innovating technology related to more sustainable Solutions. And the pace and the pressure on this is so high that it's essentially It's virtually impossible to meet the market demands without using digital methods and simulation technology of the kind that we deliver To an extensive fashion. Also mentioned that digitalizing Workflows, that's, of course, a global general trend in all industries. I should say that in the technology industries, there are Areas where this is quite difficult and those are precisely the areas Where you need the digital representation of the system, if you don't have that available, you can't really proceed. So we are enabling digitizing critical workflows With the technology that we provide. And of course, I just mentioned the SaaS cloud transition. Again, The simulation sector is fairly late in this transition, And we are actually pioneering our space with the Model Impact platform, which is, of course, a very nice position to be in. And these trends, overall, they drive growth of the total simulation and analysis market. This is data from one of the analysts, SimData in the U. S. That are reporting on the simulation and analysis market. And You can see here that in the years to come, they expect the growth of the market to be almost 8% The compound annual growth rates, you can compare that again with the targets that we have set out On a growth rate of 35% of our ARR. So we're aiming a lot higher than the market growth, And we're on track to achieve that for the Q2. You can also see here that the 2020 pandemic was flat, you may know that, but we're back on track now. And what we perceive in terms of activity level It's aligned with the estimates of the analysts here that the market is or has recovered. There are also several trends identified by analysts. And we the modern impact platform that we have Released and are providing now, essentially, it takes all the important marks to meet the requirements identified by in these trends. And I'm highlighting a little bit special what's at the bottom right here. You see the word digital twin. And this is an Emerging use or application area of systems modeling and simulation, where you have typically used These digital models in the design of a system or a product. And now what is emerging is the use of the same digital representation also in the operation of your product. Like for example, in this microgrid system, when you have a model, you can use it online as a production planning optimization tool. So this is a very important emerging area. And we are Seeing activity in the Q2 related to this, which is very exciting and encouraging. So this is Slide where we describe how we are positioning Model On Impact to meet all the requirements and the trends that we see in the industries. So basically, What we're saying here is that Model and Impact is designed to cover all relevant engineering workflows throughout The product life cycle for technology products from the early research and planning stages and then Through design, testing and all the way to operations illustrated by this V model you see at the center. And at the right tail here in the operations, that's where these digital twin applications belong emerging. Essentially in the quarter, we see our customers deploying and using modern impact Essentially throughout all the phases here, so in line with the positioning of the platform. And from that, let's look at another very fine customer testimonial. And this is again connected to the digital twin Emerging Application Area. ENGIE is a French multinational. It's one of the largest Energy utility companies in the world, EUR 56,000,000,000 revenue in 20 170,000 employees, so they are sizable. They are operating solar power plants, and We have engaged with them in a plant in Chile where they have developed with our help A digital twin for this complete plan with over 7,000 solar panels For the purpose of doing what's called predictive maintenance. And that basically means that instead of Walking out in the desert and knocking and touching all these panels, you have a digital copy of the plant running In parallel with the real plan, you can instead monitor and investigate what's happening by looking at your digital model. And by that, you save a lot of money. You don't have you can even do this work remotely. And when you discover some kind of fault, You see that in the digital model and you can pinpoint it and you can go and fix that fault very effectively. So this is precisely what they achieved Very satisfied and are providing us with this very Fine testimonials. So this is an example of modern impact being deployed in this emerging digital twin sector, which we're very proud of. I'll talk a little bit here about our sales Strategy. So reason for that is that you see us you see on the customer slide and this ENGIE, We are working with several very large customers. The business we're doing with many of them Currently, it's moderate in size on each. And this is per our sales strategy for Malvern Impact, land and expand strategy, which means that We are winning a customer to create the 1st user base there. And from that success with this user base, We can expand the use within this account to more seat licenses. The dynamics of that is basically with Morgan Impact fairly new to the market in 2020, we are now currently in the phase where we are winning these bridgeheads Accounts and preparing positioning us for future add on sales. And So what I want to say here also is that these initial wins You need it's quite much effort to win the customer the first time. Then the upsell It's usually much easier. It's less effort in doing that. So in the face right now, we're spending a lot of effort in winning Many of these fine large enterprise accounts to harvest the benefits of that in upsell in the future. I also want to A little bit illustrates the time frames we're operating within the sales here in our market. So Of course, we're very active with marketing to generate leads. And I hope you're following us on our Linked For example, the content that we're providing. The leads that we bring to the sales force Alright. Qualified, evaluated, often then the customer evaluates, tries out the solution and so on. This is a process that takes typically 6 to 18 months. So it's fairly long cycles. The customers are doing extensive evaluations because these are Typically, business critical solutions for them to deposit. It's very important for them to pick the right one. And then we sell licenses that are Subscription licenses for 12 months at a time typically this is the cycle for renewal and so on. And The first follow on sales is typically happening more than 12 months after the initial sell. So that's a little bit to explain where we are currently. And we are also very happy to in the period with the product on the market Almost precisely 1 year now. We are also starting to see the first follow on sales. We have customers that are Expanding their use with additional seat licenses. So this land and expand strategy, it's in Full execution, full swing, and it works fine for us. In the period, we also released The next version in June of Modeling Impact 2021.2 release. So Again, we're having a high pace in the development. So lots of new features driven by our vision, also driven by some more immediate Requests from prospects and customers. So we also see that several of these new features were addressing the industries where we see a lot of activity, energy and automotive. And several of these new features is also immediately resulting in new sales. So We're happy with the pace and the focus that we're having in the roadmap development here. And with that, I will I conclude the business highlights of the Q2 and hand over to you, Jonas, for the walkthrough of the financial developments. Thanks a lot, Magnus. And can you move to the first slide? Thank you. So starting with the annual recurring revenue, where we see a good trend, positive ARR development, Roughly since the end of 2020, which is in line with what Magnus said, there's a 6 12 months lead time on new customers, and we released Model and Impact in July 2020. So We're now starting to see good growth and a lot of new customers on ModelOn Impact, which is driving our annual recurring revenue. We're tracking the ARR at constant currency to show the true development here. There's been a period of Very large shifts in the exchange rates. For example, US dollar and euro was Extremely strong in 2020. And we can see the correct values when we do the constant currency calculation. And the at the end of the period, the software ARR at constant currency is SEK 31,600,000, Up 12% compared to the period in 2020. And for quarter to quarter growth, it is 8%. So we're seeing increasing quarter to quarter growth on our total ARR For each quarter now. And within that, we see a very good model impact sales, Where we have a quarter to quarter growth rate of 29%. So as planned, the model and impact revenue is a Rapidly increasing share of the total software ARR. We're doing some migration, as Magnus mentioned. Customers that have used our products Since before our shifting into Model and Impact, primarily though it is new sales, new customers that we're bringing in on Model and Impact. And this is then different from the 2020 period where we had a relatively flat development in line with the Market conditions and also because we have a new product offering now. So this is when we're really taking off with Model and Impact. And I think we can move on to the next slide, Magnus. And for the overall net revenues, we see a decrease to SEK 18,400,000 Compared to 30 in the corresponding period in 2020, this is entirely Due to the decrease in services from the co development project that Magnus also mentioned before. So this is a shift In our strategy, we're shifting to self funded development. Also, we need to note that the accounting revenues Are not FX adjusted. So the ARR, we can do this relatively easy. But the accounting is in Swedish krona. It's a big effort to transition into Constant currency calculation for the entire accounting. And where we do see major effects, we can't quantify exactly. As an example, we have the U. S. Dollar rate for the period decreasing by about 13%. And We do see on the ARR, I can have the FX effect quantified. For the Q2 2020, that was SEK 2,600,000. So Out of the software revenues, it's almost 10% currency effect. And this also shows in the software revenues, This is the accounted revenues, which is €8,800,000 in the quarter, €8,700,000 in the previous period. And So it looks flat, but it is sort of an underlying growth trend that is accurately represented by the ARR at constant currency. So if we could do the constant currency calculation also in this case, I would expect to see around 10% growth. The service revenues, as mentioned, are decreasing. And you can see that the amount, It goes down to SEK 9,600,000 from SEK 21,600,000. So that amount almost exactly corresponds to the decrease in net Revenues also. And this is as we have planned, the ramp down is now complete with the co development customer that we had. This project was finalized in May. So that's the major part of the decrease. There are, of course, also currency effects in all our business. We do roughly well over 50%, 60% to 70% of the revenues in U. S. Dollars. So of course, that has a major effect. The negative EBIT, they correspond then to the investments that we're putting into the product development. And we can see that it's minus 9.7% in this quarter. It was positive in 2020. Some of that is effect from most of that is from the service project, some effects also from like pandemic support, COVID support that type of thing that we could benefit from in 2020. But very importantly, all of this development that we're doing now, we're taking as expenses. So it is fully taken as cost and roughly the development cost or the EBIT corresponding to the Decrease in service revenue because we're shifting our resources from a co funded Customer finance project into self paid, self funded development. And I believe we can shift to the next slide, Magnus. So if we're looking at the Tables and results here. In summary, we're showing that we're in a transition period then into this investment phase, increased Strategic investments. And as I explained, the development teams that we've used in this Co funding, co development project are now shifting into roadmap development. There is also other teams, some of the service engineers Or helping out with application engineering and are active in the Model and Impact presales and support so that we can onboard More and more customers using Model and Impact and then grow the software revenue, which is the target that we have for the years to come. If we're looking at the operating expenses, they are still at the 2020 level. So we're expecting that to grow with our investments, but it's looking like we will see that increase in the second half of the year. We're doing recruitments. And during the pandemic, of course, it's a little bit tougher than usual to find the right people. I should also mention, of course, there is some effects effect on the expenses also, although not at the same level of the revenues. We have a team of 12 to 15 people in the U. S. And of course, then we have U. S. Dollar costs to that extent also. And we are recruiting more in the U. S. Because this is a very important market for us. If we are looking at the product development costs, These are they are increasing. So we have a development cost of SEK 12,400,000 in the quarter. This is increasing by 42%. So it's a very big increase from the shift of customer finance projects into a Self financed development, roadmap development. And also, of course, this includes regular maintenance, continuous release work, everything we need to do on our product Offerings. And I need to mention also that previously we reported the Adjusted EBIT to try to show a number as is or as if we had been capitalizing costs. We're now deciding to stop this practice and fully align our financial reporting with our Accounting practices, we're taking the development costs as operating cost. This is also the norm in the The standard in U. S. GAAP. And we've had we have some new Board members, since the IPO and the annual meeting in May, and we have new perspectives On our accounting and how we should do the financial reporting. So this is to align that message. And As we grow our software business, of course, we will show better numbers. Cash liquidity, We're increasing to SEK 191,000,000 at the end of the period from the IPO proceeds. So we had gross Proceeds of SEK 150,000,000 and then less some capital costs from the IPO. But the Increase is of course big. And this is what we've been using for the next 3 years on our road to Software business with a positive result. I can mention we have positive operating cash flow in the first half of the year. This is partly a seasonal effect. There's some text about that in the report. The reason being that there are many annual license renewals that start in the Q1 or right after the Year end and our license renewals are always paid upfront. While the software revenue It's deferred and recognized over the license period. So that's why you see a difference in the Revenue recognition and the cash flow. And we can move on, Magnus, and I can wrap up. We're getting to the end of the presentation. We're Reiterating the message that we have from the IPO, we're using those proceeds to finance our growth plan. This is our Sort of mid term financial targets in 2024, we should have the ARR growth of 35%. The quarter to quarter growth that we're already seeing is approaching this. So I would say we're not far away from this growth and Looking to meet the SEK 100,000,000 ARR target that we have in 2024. Reaching that then, the long term EBIT margin should be well over 20%. So moving into positive cash flow in 24 and then beyond that positive result. And the plans for the gross proceeds, you can see roughly half Commercial half product development. This will be invested over the roughly 3 year period to come, 2021 through Beginning of 2024 and then we have funds from more and more sales from our customers. And I don't think I need to talk more about this. So let's move into the Q and A session. Okay. Thank you, Jomana. And please send in your questions if you haven't already done that. And yes, I would like to start off with the questions from Stefan Vogt at Pareto Securities. And the first one, I think it's for you, Magnus. It is about the development for Modland Impact. So can you share some light about the development for Modland Impact, especially in regards to the demand from different geographies and sectors. Yes, absolutely. So As I said, we see good activity levels in across essentially across all sectors, but in particular, in the energy Clean energy applications and also now ramping up in the second quarter from the automotive. I should say that the also in the other sectors In terms of Aerospace and Industrial Equipment, we see good activity, but Lagging behind the other sectors a little bit in the purchasing. So we have several leads that we're working on. These industries So a little bit slower, in particular, the aerospace in the pandemic recovery, but we're seeing good trends there. So I could say also, overall, the demand for solutions like ModelOn Impact It's not depending on territory. So I mean, the need, the demand, underlying demand we see globally. Then the activity level is still today pretty much related to how different regions Are recovering. The economies are recovering from the pandemic 2020. And there we can see that U. S. It's quite much ahead of, for example, some locations in Asia. But we are working, we are filling our Pipelines were generating leads at a global level. Okay. Thank you. And a follow on question from Sper van Ger. If you look at the prospect pipeline and compare with the end of Q1, how is the activity level? Yes. So the I mean, the activity level was good already in Q1. So it's continuing into the 2nd quarter. So We are very comfortable with the inflow of new leads, the generation of new leads. And we To an extent, that should support the growth in the coming quarters. And in the sectors I just mentioned and the territories I just mentioned also The activity levels and the generation is related to the activity levels. Okay. 3rd question from Stefan Ward, Pariappel Securities. And this one is about the sales function. So have you recruited to the sales function? What are your plans for the function going forward? That one is for your 2 minors, right? Yes. So Jonas didn't really walk on the last Hi, Jonas. You had some information on how we're Investing our IPO proceeds into different areas, product development, commercial, etcetera. So yes, we are ramping up our investments in the commercial functions, and that is, In particular, hiring increasing capacity and adding Sales roles in relevant territories and industries. So Yes, we have started. We're having focus on the U. S. And Asia. If you go to our website, you will see that there are several we have finalized recruitment on few positions, and there are others In the pipeline announced on our website. So if you're interested, just please apply. Okay. So and more questions about the investment plans from Sejeboom Water Care. And this one maybe for you, Jonas. What are your investment Plans for 2021 2022, how much will you invest in Modelon impact? So again, we can refer to the previous slide. So the IPO plans is that 30% to Those investments are going into model on impact. That goes over the 3 year period, 2021 to 2023. We can also see in the numbers, we have SEK 12,000,000 development costs In 1 quarter, I expect this to continue and also to grow slightly. So this is what we're putting into the product development And the vast majority of that is into model on impact. So up to €50,000,000 a year From the latest quarter. And that's a massive of course, a massive investment. And I think that reflects what we will The potential of the business going forward, how much we will be getting from our customers. Okay. Next Question from Stefan Wohr, Pariaphol. It's really to understand about the status of the customer finance Engagement, is it totally completed now? Magnus, will you take that one? Sure. I can do that. Yes. So this customer, which we Do not disclose the identity of. There has been a program with this customer for Where they have been funded, co founded the development of Mobile Impact because they Had a need for this type of product and we're prepared to invest a fairly substantial amount to accelerate The development and get their hands on it and deploy it in their organization. So now we Started to deploy this in their organization in the end of 2020, and they are now into their 2nd or maybe 3rd release of this. So yes, the co development phase is ending in Q1. The use of modern impact, the deployment in their organization is continuing and We're also seeing that there may be follow-up. It's fairly likely to be follow-up activities with this customer In the future coming up, but it's those are different from the co funding program. So yes, that is ended for Q2. So that's the short answer, yes? It's probably not a short answer, sorry. Okay, good. Okay, next one is also about So and maybe from a financial perspective. Question from Stefan Marjato, during 2021, our 1 service customer represented almost 50% of the revenues. How is the mix today when the customer finance project is complete then. Will you take that 1, Jonas? Yes, I can. So that project, as Magnus explained, is completed, but it has continued into for the first half of the year into end of May. So it will still be a large customer, the largest of our engagements in 2021, although not at the level That we saw in 2020. Other typical major customers generate SEK 3,000,000 to SEK 5,000,000 annual revenue. That's A major account. We're looking to grow these accounts. That's the commercial plan is really to increase the engagement with key accounts, do Selling and have also many large accounts up to SEK 10,000,000. There will be A few to start with and then more in the years to come. Others, of course, we have a wide big list of Very good customers that typically are smaller, so maybe NOK250,000 or less than that. But the key big accounts we're seeing Today, SEK 3,000,000 to SEK 5,000,000 and we're looking to grow those. Okay. Thank you. Okay. And then a final question And then to wrap up the Q and A session. And this one is for you, Magnus, and it's coming from me. I really like the customer stories in the presentation and would like to better understand what we can expect from your strong global when it comes to migration on to ModelOn impact. It's a good question. So yes, several of those customers are using our software products that we have Been releasing over the past 15 years in one form or the other. We have established relations with these customers. We have a trust relation. They like our solutions. So we expect that quite many of them will Adopt Model on Impact and we see that several of them are starting to do so. That may not I mean they're migrating because we're talking about very large companies and it may be that they are using in one part of the organization our existing Previous solutions. And then there is a new need coming up and they choose to pick the newest solution to inject there. So it will be a situation where we expect these customers to adopt From existing solutions, some of them will work with solutions in parallel. Migration is not of our products. That's really not a key part of our growth plan that these companies adopt small loan impact somewhere. That's, of course, a part of the So we can benefit and exploit the relations we have built up in this very fine customer base that we have. So yes, that would be my answer to that. Thank you. And then we have one final question coming in from Stefan Boer at Pareto Securities. And it's about Asia. So and for you, Magnus, Can you give some more detail on how the progress has been in Asia, both in China and Japan? Yes. So I can interpret that question in 2 ways. 1 is the Europe and the U. S. In terms of the pandemic. So the recovery is a bit slower there. We're holding up our current business and we're seeing some growth, but the momentum has not yet built up from pandemic recovery. However, this is we know that these are key markets. So we are Sing also in expanding our commercial functions there and that is going on. So we will be there as the winds turn. Then we have also announced in the IPO prospectus that we're looking at establishing in China, China being one of the largest markets and fastest growing in the CAE sector. So this is very important for us For our future growth, again, it's part of the growth plan, but it's not the It's one part out of many. Now again, we are standing by now. We need to get to a situation where we can Travel there and so on. So it's basically the pandemic is still keeping us on hold To push the start button on that. But we are prepared, and we are continuously monitoring the situation. Okay, good. Then I think we have all the questions answered. So With that, Hermann, as I hand over to you to wrap up this Q2 investor presentation. Next slide, please. Thank you, Jenny. So yes, key messages here to take that we want to convey is, of course, The growth of our annual recurring revenues that are on track towards the targets that we have set out, 8% Quarter to quarter. And that we have a rapid growth in model and impact ARR at 29% quarter to quarter. So these results, we're very satisfied with. Then also to highlight that we are in the midst of this business transition. We are Increasing investment rates, we have this one off effect on service revenues coming from the shift From a customer funded development program to doing that development self funded, which Puts pressure temporary on service revenue and our EBIT that we are in the investment activities That's not related to recruiting more talent in key positions. So we are In the quarter, stepping up activities significantly, and we have several recruitments going on to find world class talents To help drive our growth in the future here. And of course, also then on the sector, still a spotlight on clean energy sector where we see A lot of activity, and it's a very it's also a very nice sector to work in. We really feel that we're contributing 2 good things. And also very happy to see increasing activity in automotive where we have Over the years, built up a portfolio of very strong solutions that we're now supplying with model on impact. So those are the key highlights. And you should mention that the Q3 report will be published on November 2019. Yes, yes. Apologies. And I want to thank you, Urs, for listening into this presentation. And I hope to see you all again in November 2019 when we're presenting our Q3 report. So thank you, everyone.