Earnings Call: Q4 2020

Feb 4, 2021

Welcome to the presentation of our Q4 and full year results for 2020. I am Ann Sofie Janssen, and I'm Head of Investor Relations. I want to say welcome to those of you who are viewing on the web, those of you who are listening in on telephone conference. And I would like you, the ones that are listening in on the webcast, Jan. So I'll now turn the call over to Anne. Thank you, Anne. And with me today, I have Annette Krumlien and Klas Forster, our CEO. And now I hand over to Klas. Thank you, Ann Sofi, and once again, very, very much welcome to this quarter 4 and full year presentation. Before I start, I would like to say like this that Q4 concludes a year that in many ways have been unprecedented Janssen in society, for business and for Mansef in regards to COVID-nineteen. In summary, Mansef has delivered solid business performance, operational improvements, while supporting our customers, resulting in improved profit and a strong cash flow generation, all in all, creating a stronger base for our future growth journey. With that, let's move into agenda. The agenda is highlights for the full year. Myself will present that as well as implementation of our strategy and the progress that we are making there. I will hand over to Annette to talk about the Q4 and the full year 2020 result, summarize and then open up for Q and As. A stronger base for the future growth journey. If I talk about the year, order intake increased FX adjusted by 2%, and net sales increased with some plus 1%. We had an EBITDA adjusted improvement of close to 5%, reaching SEK 906,000,000 and that despite of an increasingly stronger headwind from currency during the year. Both Airtech and FoodTech showed good progress, and we ended up at close to 13% adjusted EBITDA margin. What was very pleasing was that the leverage of went down from 2.9 down to 1.9 during the year. Also, I'm happy to say that the Board proposed a dividend of SEK 0.7 per share on Sify Janssen. The year has been challenging in the market conditions. The pandemic had mixed impact for us. The most and largest impact has been during the second and the fourth quarter. There has been delays in deliveries to customers and postponed investment All production units have been operational during the year, except 1 minor unit. With this, I would like to say as well that our focus when it comes to production units, that is to keep it safety first, I. Have a safe workplace for our employees. So on and off, we have closed some production units and then open up after cleanup and so on. And there is still a low visibility in the market demand due to lingering COVID-nineteen. And what I can see during the quarter that it's more and more constraints, Both in customer supply chain and also in our supply chain. But now we're entering the next phase of our journey. We have an organization set up With clear responsibility and accountability in place, I feel that we have achieved growth in the prioritized areas with great focus. We are moving ahead with the product rationalization and investments in R and D, and we have created a better way of working. Now it's a strong focus on turning mantras into a more customer centric company with 0 impact on the planet and growth A little bit more granular into the quarter 4. If I summarize it, it's the decline in Americas and oncology. Data Center in the U. S. Had a weak order intake on the back of a strong 2019. That was partly offset by good development in Pharma, Lithium Batteries and Supermarket sub segments. I'm very confident that data centers is on the right track. It is that is the area where we have the largest on-site. And 1 quarter will be lower than other quarters, but I see strong progression and have strong trust in all What was very pleasing was that Service had a positive development in U. S. You will hear me speak later on on our long term targets, But I am pleased both with the parts of service, the size of service and also the result that it has delivered to the bottom line, in particular in the U. S. FoodTech had a weak development, mainly driven by an overcapacity in the swine market in U. S. Nothing has changed there. EMEA, Airtech, weak development by mis elimination that was partly offset by the lithium subsegment. FoodTech, some weak development from the effects of the COVID. It was customers that didn't open up for us in Interdep farms, etcetera. In Asia, We had growth in APAC, driven by strong performance in pollution control connected to mist elimination. Janssen. And FoodTech continued to deliver stable development by in the swine segment in China. And if I summarize it, growth More detail will come later on when Annette talks about the quarter and the full year. The implementation of our strategy. You heard me speak about this, and we are here for the long run. Everywhere in many, many customer critical Operations, mantels is part of the success. It is about innovation. It is about both driving on the right markets and services to the market, but also to take out non well performing products and customers, it's all about value selling. And then the continuous improvements and when needed, cut off on non value contributing parts. People is at the center and setting them in the right organization. And so far. It delivers on the purpose, customer success and a healthier planet. I will not go through all of those details, Let me highlight on this slide that I see good progress in each and every one of those areas. For the long term ambition, I'm confident that we will deliver on those. Especially when it comes to innovation, I see good progress in the portfolio reduction. We are now above 30%. The ambition is now set to reduce the components with 25% end 2023. And here we talk about fasteners, metals, Electronic components, etcetera. And if I summarize this, this is a 3 part type of story. It is about Driving innovation, that is and products, that is done by cleaning up the non important product portfolio, Taking out and simplify the components and then when you develop products, have then modulized And in everything we do in people, let me drill in a little bit on the coming slides. You have heard me talk about the need for customers to trace their food, I. E, from the small chicken all the way to the McDonald's or the Kentucky Fried Chicken. I'm so happy that we have joined with JBS Pilgrim's, the largest animal protein producer in the world, to implement an artificial intelligence supply chain system. The platform will provide centralized end to end planning, And you can follow what a chicken eats, how the chicken moves, and you can predict the weight of the chicken and thereby generate a lot of customer value to the end user. I think here we have the opportunity to jointly with the industry, change that industry moving forward. It is setting the base for traceability in the food chain. You've already talked about expanding our service offer, And that has happened during the pandemic. Our long term ambition is to reach 30% of our net sales. I see strong progression here. We reached 14% of net sales for the full year, and we landed on 17% of net sales during the Q4, And that despite of the challenges with the pandemic. And as I said earlier, I see strong progression in North America and U. S, both when it comes to How much of the sales is driven from service, but also development in the And also here, it is a 3 pronged approach. It is about having a better mix with more service, Securing a more stable long term company, but it's also about generating improved profitability from the service that we have. Focus on excellence and efficiency, it is about creating a playbook. It is about creating systems, introducing leading ways of working, and that has happened during the year. It is about commit and deliver on So all the measurements that we announced when it comes to sharpening the customer offering and the footprint optimizations are delivering according to plan, and implementation will be complete during 2021. But very pleasing is also that it generates Good result. The move in operating working capital going down from 14% a year ago to 10% now Janssen sends the signal to me and to our organization that we are delivering on what we have committed to do. I'm very happy here. And the new organizational structure is completed now. It is a clear ownership in the business areas when it comes to the business. It is about supporting them with different areas of strategic importance, like strategic operation, like innovation and like commercial excellence, I think we have a team set to deliver for the coming years. Sustainability. Sustainability is fully integrated in Mansef's strategy. It is about resource efficiency. It is about responsible business practice, and it's about people and society. Resource efficiency, how we use our own resources and how we help customers to deliver on their targets. During the year, we have set higher ambitions that we will start to deliver on during 2021. We are focused on understanding and analyzing from where Are we going and what do we have to do, especially when it comes to carbon dioxide emissions and safety, diversity and general environmental work? And what is pleasing that is a company is based on their people and The belief in what management says. And here, I think we have made good progress. I'm so happy to see that our people tells us With that, I hand over to Annette to deep drill into the Q4 and the full year. Super. Thank you very much, Klas. So let's look into our performance versus last year on our midterm targets. As Klas said, we have had a very good performance in spite of COVID-nineteen impacting us. There's been a lot of hard work obviously behind it, but all in all good. So we have grown, particularly if you look at Q4, it was very strong and also which led to then that we had a full growth during the whole year of 2020. When you look at the margin, we're at above 13% in the quarter and almost 13% for the full year. Now we and Sofia do have a negative FX impact, which actually have would have led to almost a 1 percentage higher adjusted EBITA margin in the quarter on the full year. We have worked very hard also to make sure that we make mantas financially strong, So leverage has now come down below 2x. If we look at the growth in the business, it has been rather good. And it comes basically from China and Flutech, where we have had a growth during the quarter in the order intake, which was quite substantial. And also if you look at Airtech, it has shown good performance. If we look at the FX adjusted order intake for Q4, it was just below last year. And one of the impacts was obviously that we had data center in the U. S, which had a very strong quarter in 2019. So that so on. And then also, we have actually taken out, as you know, the commercial non Walmart business in the U. S, which also had a slight impact. If we look at the full year, it was actually above last year. It was mainly driven by Airtech for industrial for U. S. And also China then for FUTIG again. And when you look at the impact that we have had from COVID-nineteen, actually, the biggest impact has been during Q2 and Q4. So all in all, when you look at the demand side of it and also if you're looking at the backlog, it's been quite strong for us during the year In spite of COVID-nineteen, sales in the wake of the order intake has been good, obviously, particularly when you look at the FoodTech side, continued growth in China. And we have also seen some growth when it comes to EMEA and the broiler segment. When we're looking at Airtech, we're again coming fact to Services having a good performance, for instance, and also lithium batteries, just to mention a few. If we look at the net sales for the full year, as we sales in the quarter was 17%, which led that to grow 1 percentage basically compared to what we have seen before. If we particularly dive into Airtech, one can say that one of the areas that have grown a bit also is pharma, and that is kind of like In the circumstances, we're looking at what's going on with COVID-nineteen and the testing where we have seen a demand coming in from our side. Obviously, when you look at Airtech, we have missed elimination, which has been coming down quite a bit during 2020 because of the market situation, although we had a nice intake order intake coming in, in the Q4. When we look at the full year, basically same level as last year. Again, we have lithium batteries and services and also industrial, which had a good performance. And then again, also Remember that we're taking out non core commercial segment in the U. S, which actually has an impact of a couple of percentages, as said before. If we look at sales then, above for the quarter, good growth in, for instance, pharma then. Also services in the supermarket segment in the U. S. Was very good. And again, weak business elimination and also data center declined a bit, again in the wake of having a good performance in 2019. And if you look at services then for the full year, actually, if you look at it in the air tech setting, it's about 20% of net sales. If we look at FU Tech, again, the performance is, as you have seen earlier, good growth when it comes to China. And you have seen also that the broiler In the EMEA is coming up, whereas when you look at Americas, it's been sluggish, so to say, and also that in the wake of the COVID-nineteen pandemic. Order backlog also for Fluti, quite good going into 2021. And hopefully, we see that coming through later in the year. And then when we look at the net sales side, again, very strong in quarter 2, again, China driving it. Although what we can see now is that the growth rate In China is coming down compared to what we saw in Q4 2019. And full year, again, very strong performance with plus 8% in spite of But also remember that this is in the wake of also having the African swine fever coming in, in 2018 and particularly impact in 2019. If we look at EBITDA then, again, I mean, we have worked quite hard, as Klas have been saying, to make sure that we set on for future growth and also working with improvements in our value chain. So part of that is coming true now when you look at 2020. And Sify and Sify and then obviously also when you look at, for instance, Futech for the full year, you also see obviously that the volumes are coming through. Again, we had Sveria happened in the Q4, and it took down our performance for the year with 0.3% basically for the full year. So it's about €20,000,000 that cut off from us. What we have been doing is obviously that in the wake of setting up the strategy during the early spring, we're obviously starting to deliver on it. And we took also in Q2, if you remember, a decision to sharpen our organization and also to take some non value added businesses like the non Walmart commercial business in the U. S. That whole program was estimated cost about SEK188 1,000,000 with about SEK 136 1,000,000 which was IIC ed. And when we look at the performance year on year, We have been able to implement certain measures. And also in parts of it, we can see that the cost was a bit lower than what we expected from the beginning, so we're down to the €124,000,000 instead of €136,000,000 At the end of the day, as earlier said also, we're looking into savings of around €70,000,000,000 being fully implemented then by end of at an annual run rate end of 2021. So we're all in all delivering so far according to the plan. Again, very strong cash flow development. It has continued, and it's about Jan. So, getting into the DNA on how we work with operating working capital, which is setting through. So, Q4 was extremely good, and we have come down. So, In the wake of actually having a negative FX impact on profits, we had a slight headwind actually on the development of the debt valuation, but again, the biggest impact when you look at how we have performed on leverage is really coming down to our own work of setting the right DNA Janssen working with financial balance sheets. So cash conversion, very good as you can see. We were actually quite high, the highest we have seen, and we have particularly certain areas that were delivering good on the American side. The leverage, as we have talked about, has thus consequently come down to 1.9%. And this is really also about setting the foundation for the future growth, which is not only related to to do the summary and also conclusion. Thank you, Annette. And let me summarize the year as well as the quarter. Strong performance despite a challenging market. We have focused on executing on our strategy and create and as Annette said, a good improvement of the leverage. Moving forward, digitalization is a Key enabler for overall efficiency internally, but also for enhanced sustainability and growth up and running, but it's tougher in the supply chain at current. I truly feel that we are so well positioned in the long term growing markets driven by climate change, energy efficiency and digitalization And by continuing investing in innovation and efficiency improvements, I feel that we can capture this moving forward. With that, over to Q and A's. Thank you, Klas. So I would actually like to encourage everyone on the webcast to now Post your questions. And I would like to start with opening up for those of you who are listening in on the phone to see if we have any questions from you. Thank Our first question comes from the line of Karl Brokhus from ABG. Please go ahead. Yes. Thank you, and good morning. So first question has to do with perhaps something that you choose to highlight in the Q4 here when it comes to COVID impact, I mean, you overall, it's fair to say that you've managed the pandemic quite well during the entire year. So Are there any particular things or any particular regions where you've seen that the effects of a pandemic on your operations have materially Had a more negative impact than compared to Q3, for example. It's a good question. Thank you for that. If I analyze, you can say like this, That the widest spread of COVID-nineteen at current, that is in North America. And it has also been tightening up restrictions From the government and so on. And then the other part that is in Eastern and Central Europe, where it's also spread. And I would like to underline that, I mean, we have a tight ship that we run. It is more about what is happening in the society in general, And that, of course, affect us. And then what we can see also, it's spreading into delivery time from our suppliers, etcetera. But all in all, as said, it is tighter it was tight in quarter 2, and it has been tight in quarter 4. I hope that explains a little bit more granular where we see the largest challenges. Understood. And I appreciate your outlook comment on low visibility. So I understand that. But still, if possible, Would you say that if things start to improve because of vaccine and so on, do you feel that the impact on your operations Would also improve or is there any kind of late cyclicality effect of a pandemic as well on you? I don't think it is a late cyclicality effect. I think that it's we used to say like this in Manthurs right now, It is not over until it's over. And I think it's very, very wise to say that the vaccine, it will take some time. It is a matter of running a tight ship And keep it tight as well. I mean and at the end, deliver on customer expectations and be close to them. So Generally speaking, my conclusion is this is not over. I expect the pandemic to affect not only us, but also our customers for the coming months and quarters. But I mean, that is no change since before. Understood. And this particular quarter's order intake, if we're very Short sighted here or short term focused. It's back to quarterly levels back in 2018. Is this do you think it's mainly because of timing effects? Or have there been any notable changes to any particular demand environment that will also be lower going into next year. If I start and then if Annette has something to complement, but as you heard, I mean, 1, when it comes to order intake, it was linked to comparables when it comes to data center in U. S. Here, I have no worries. I mean, we will have quarters up and quarters down. That is type that comes with that type of operations. And then another part that has been also offsetting us in order intake that is, of course, that we have Sify also the noncommercial side the commercial side except Walmart and in North America. Beside that, I mean, it's nothing then more than normal, and I call it sequential changes. But Annette, anything to add? Yes. And then to remember is that when you look at FoodTech, it has been driven quite well by China during 2020 in the wake of the African swine fever. So that also must be taken into account when looking into the future. Okay. Thank you. My final one was just you mentioned that you booked lower cost than the initial expectations on restructuring program. Just would be interesting to hear why that is. Is it that you were able to achieve the same kind of efforts that you targeted, but just happened to be at a lower cost? No, I mean, obviously, when you close down business like we did with the non commercial the non Walmart commercial business in the U. S, The question is how much of your inventory you can sell out if you're stuck with old inventory. And actually, we were prudent enough to make sure then that now in Q4 actually we came out better than some thoughts on that activity. Okay. And yes, sorry, final follow-up. Is it possible to quantify the kind of effect On either orders or sales that exiting the non the commercial side had in Q4. If you look at for the full year, I would say, when it comes to exiting commercial in the on the delivering on earlier order intake. Okay. Thank you. Janssen. And the next question comes from the line of Lucas Ferrani from Jefferies. Please go ahead. Hello. Thanks for taking my question. So So I just wanted to come back on the Services segment. What do you think is the biggest driver of growth in Services in your strategy? I think there's One part which is gaining service contracts on customer, also penetrating your installed base and M and A. I just wanted to know what would be the biggest driver. Obviously, there's a long way to go to get to 30% in the medium term. Thank you. Thank you for the question. And you are so right. Service is an important part of our business strategy and business moving forward. It is 3 components, if I generalize, and you highlighted one of those. It is, of course, always to attach a new service contract When you said an OEM order, and I can see that, that is now starting to happening. It is really good to see the progression, Especially in North America, but also in Europe and in Asia. Then, of course, it is about revisiting the customers that we have not been able to work so closely with in the past where we have lost business. And thirdly, it is, can we then convert competitor business into our own service? If you combine that, I think that is the operational mode to drive. Then you can complement it with M and A activities, finding the right service companies. And as I've said earlier, I think generally speaking, when it comes to M and A, it takes Roughly 2 years to build up a funnel. And I hope that moving forward now, with the strong Financial improvement we have done that we can start to progress on that. And then finally, it is more towards software, software as a service. And here, I think that I can see strong progress when it comes to especially FoodTech, the Pilgrim business that I talked about, And that generates a more stable business also there. Great. Thank you. And we have one more question from the line of Mats Lies from Kepler Cheuvreux. Maybe a follow-up there on the service Question, could you give some color there on the mix between labor and spare parts on the service offering and also maybe, well, give some flavor on sort of the mix between Please. Yes. In this area, we will become more and more granular moving forward. But Instead of talking about the different sizes, I mean, the service part is very much brought up with, I mean, the component supply, and that is the largest part. And then when it comes to service agreements, it is about setting those, and that is the 2nd largest part then. And then the smallest part in our total service, that is the software as a service ingredients at current. And the software as a service, yes, to give you A more granularity on that then. When it comes to FoodTech, and here we talk, it's only at current in FoodTech, it represents roughly then 2%, 2.5% of the total turnover of FoodTech. Okay, great. So we will get some more information regarding that going forward. Yes. And then you're talking about the supply chain issues of potential. Could you give some Indication of what the impact was in the Q4 and maybe what the issues are going forward. Is it sort of semiconductor Yes, the people you as well or some of those Question and then it is for us, it's not Semiconductors, particular, it is that is not a large part of our sort of supply. It is more a general supply question that when it comes to freight, It's starting to tighten up. When it comes to customers, well, I mean, it's not only what we need to have, it's also what customer needs to have to run Their sites, etcetera. So I would like to summarize it as a more general tighter ship in supply. It's well managed. I'm not alarmistic here, but I think it's wise to say that this is not over yet. Okay. Thank you. And finally, just about raw materials in some segments have come up a bit. Could you say something about the potential impact in going forward? The largest raw material content that we have is when it comes to metals. And I mean, there we have seen increases in And we are constantly working with both mitigating that in negotiations and, of course, to push forward it when it comes to price increases. What we did last year, we took price increases as a precaution, and then we need to be on this step by step. But Annette, anything to add on that more in detail? No, I think it's as you said, it's coming back to how we work with our pricing strategies that we need to continue focus on going forward to make sure that we capture raw material costs through our customers. Okay. Thank you very much. And the next question comes from the line of Max Fodin from Danske Bank. Please go ahead. Thanks so much. Good morning. Just on the margin progression, if you can break it down a little bit, because the gross margin improved some almost 2 percentage points. And I guess then that the OpEx is growing 1 percentage point, you can adjust for the positive, extraordinary items, etcetera. And if We were to look forward here. Could you just help us understand what of that OpEx in case is something that you will Keep or what is it that you can do to take down that delta going forward? I mean, if you look, I mean, in general, what we have said is we are building mantas for the future. So obviously, certain things is about relating to mix and obviously taking out then the non Walmart commercial business in the U. S, which actually improves the margin as it was low performing. But then it's about the whole value chain throughout the company, both from an operational point of view, inside of the factors, but also from a general value chain point of view throughout the whole company. So that's what we're here to do. And you know our midterm targets also when it comes to our EBITDA margin, which we're working towards. Then obviously, to as we have said earlier on, also it requires certain investments to do that from a resource point of view as well. So you can probably see some movements on that also in the company. But in general, we have our midterm targets that we're steering towards for the moment. But is it so that we have been like from our side a little bit too optimistic and extrapolating the OpEx decrease versus in relative terms. And now you need to sort of invest a little bit more in cost going forward as well. I mean, again, if you look at digitalization, if you look at building people inside of the company, if you look at building the value chain, obviously, there are certain resources required to do it, Which we have also flagged for earlier on. So that comes in play. And again, we have the midterm targets that we're steering towards, and we haven't changed them I would just like to ask 2 questions regarding the demand in Airtech in the specific areas of data centers lithium batteries, how does the order pipeline look like in those two areas? And for the FoodTech, how does the growth scenario look like in China And also in the U. S. When it comes to the order pipeline, I'm satisfied with the order that we have in data centers, it's sufficient and strong. Then, of course, as I said, and we highlighted, I mean, 1 quarter it's up and another quarter it's down due to the type of business that is more project driven. But We have our pipeline at healthy levels when it comes to data centers then. And the second question was in regards to Lithium batteries also in the air Thank you. I have also on FoodTech. And Lithium Batteries, what I see there, we are gaining a lot of, let's say, Questions. We are getting interest, and I'm also here very, very confident that we have a strong backlog when it comes So both those areas are strong future growth areas, and I'm very confident in that. Yes. And just Sverdrup, DC had very good orders coming in, in 2019. So obviously, then that could be hard to match when you're in your product business from Quarter to Quarter. And coming back then to China. As I said a couple of quarters We cannot expect that this strong, strong growth year by year is going to continue. It came back from a very low level affected by African swine fever. But with that said, also moving forward, China is more and more focused on self sufficient and supplying their own type of food and also moving into more modern way of Chicken and swine farming, so to speak. But I don't expect that the strong comeback From African swine fever will be that strong this year. Okay. And the U. S? In the U. S, it is a different cycle. And really, they are If you follow the long term predictions when a business cycle ends, we should be close to the end of that business cycle, but once again, I mean and then we have to put on the pandemic on top of that. So if we follow the normal patterns, We are coming closer and closer to the end of a tight business cycle in U. S. Annette, anything to add there? No, I think that covers it. Okay. Thank you. And we have just a follow-up question from the line of Lukas Farhanie from Jefferies. Please go ahead. Hi, Jules. Just on the financials, if I could confirm 2 points regarding the tax rate. It seems slightly lower than what we expected, do you think that 22% can be a normalized level going forward? And also, I just wanted to come back on the Other elimination and other cost line, which seems much higher. Can you give us an idea of what's behind that big increase in Q4? Thank you. First of all, when it comes to the tax rate, that follows obviously where we sell. So it depends on the country mix. And as we're talking about, we're not really giving on the guidance forward on this. Again, country mix impacts what tax rate we have. And then when you look at the costs in the other area, Well, as I said again, I mean, we're building mantras for the future, and we're setting foundation, which is a lot about looking into the value chain throughout the company. For instance, digital side, but also looking through everything from how we create a product actually to how we sell it and get our money back from it. That requires resources to actually organize Suraj in various areas, and it's important to do this right and take the time to do it. The other part of it is actually, what you could say, is related to so long term incentive program, which is, as you know, based on stock options. And obviously, when The month the share price goes up, then obviously, we have to value the impact on that into our P and L. And that's part of what has come in. And that's actually a major part why the cost in Q4 was higher than in others than compared to earlier quarters. Perfect. Thank you for the detail. And there are no further questions from the phones. Thank you very much. Then I will take one question that we have received from the web, and that is from Filbert Wessier. I'm sorry if I'm not pronouncing the name correctly. And It is regarding acquisitions. And if you can comment a bit regarding your pipeline, Klas? Thank you for the question. And for those of you that have not listened in, in the past, I mean, first of all, what is our target universe when it comes to Acquisitions, it consists of 3 main parts. One part that is a string of pulse when it comes to service companies, predominantly towards Airtech, but also when suited into FoodTech. Secondly, it is about, Call it digitalization or smaller add ons when it comes to products, but especially digitalization, like the M that we have already in FoodTech. And thirdly, it is about larger possible targets that can also Complement our business and our footprint, and that could be then both to FoodTech and Airtech. But if I generalize, that is the 3 ones. And what we have done then Since day 1, that is to work with those three areas and building up the funnel of it. And then, of course, as always in M and A is, first, it's a couple of things. First of all, you need to have the financial headroom to make it possible. Secondly, I mean, when you have a target list, I mean, then you need also to, I call it, start dating and asking and understanding, etcetera. And when that is done, Then normally then it starts to come through. And if I generalize from my experience, it takes roughly 2 years To build this up and then it's up to, I mean, how successful we can be and how well it can be attached to then possible M and A targets. But Annette, you have put in a lot of energy in this as well. Anything to add? Yes. And it's about time at the end of the day, time and financial stability. And I think we've Jan. Kind of like ticked the box for the second one. So now it's about the time to get a target in. Thank you very much. So with that, we have no further questions from the web and no further questions from the telephone conference. So I would like to thank you all for listening in. And we will release our Q1 results in April, and we look forward to see you then. So thank you for today. Thank you. Thank you.