Welcome to the Nederman Holding Q2 Presentation For 2023. During the questions and answer session, participants are able to ask questions by dialing star five on their telephone keypad. Now, I will hand the conference over to CEO Sven Kristensson, and CFO Matthew Cusick. Please go ahead.
Good morning, everyone, and welcome to this quarter report session. We have this morning released a report for the Q2 2023, and we can conclude that we have a continued positive trend. We have record quarterly order intake, record quarterly sales, and record quarterly profit. We can also say that product and technology development launches have generated customer interest and also a demand for orders. Good development in growing segments. However, there are some challenges that remain. We have a slightly negative organic order intake growth in the quarter, and the backlog has declined somewhat from the peak levels. We can clearly see the inflationary pressure on margins, especially in the local sales organization. As you all know, geopolitical uncertainty remains, and the Chinese market remains very slow.
If I take you on to slide four and start going through some of the key financials. As Sven mentioned, record orders received, they developed well in the quarter. We've got a solid foundation for sales in the coming quarter. This is quite important for us, the order intake figures at the moment. Currency neutral in Q2, we increased by 5.6% to SEK 1.546 billion. Organically, that was a decline of 2.1%. For the year-to-date, orders received are currency neutral at 5.8% and organically actually down to -2.6%. Orders for the year-to-date, 6 months in, SEK 3.051 billion. If you look at the bridges on the bottom of this chart, I think they're quite clear.
It shows where the growth is coming from. We have some boost in terms of sales revenue from the currency. It doesn't affect profit anywhere near as much as this, of course. The biggest chunk of the growth has come from the acquisition, largely RoboVent, but we've made a couple, two other smaller ones in MBE and Ezi-Duct in Australia. The picture is very much the same for both the quarter and the year-to-date. If I move on to slide five and go through sales. All four divisions did rather well on sales. Significant currency neutral and organic growth is what we can say. Sales for the Q2, SEK 1.631 billion f or the year-to-date, we're on SEK 3.113 billion.
The bridge looks a little bit different in characteristics to the order, one with organic growth in sales, some currency assistance, and acquisitions are obviously boosting as well. Profitability, the most profitable quarter in Nederman's history, as Sven mentioned, adjusted EBITDA was SEK 195 million, versus SEK 125 million in Q2 last year. That gave us a margin of 12% versus 10.6%, which is definitely a positive trend. Profit after tax, SEK 100 million versus SEK 75 million last year, gives us earnings per share of SEK 2.86 versus SEK 2.13 last year.
year-to-date, EBITDA is now SEK 368 million, which is 11.8% in margin. Profit after tax, now SEK 178 million versus SEK 145 million at the same point last year, which means earnings per share, SEK 5.08 versus SEK 4.14 last year. Reasonably good cash flow development as well in the year. We had a strong quarter one already. Cash flow for operations for the quarter was SEK 98 million, which is slightly lower than the very strong Q2 last year, SEK 148 million. Year- to- date, cash flow from operations is SEK 227 million versus SEK 140 million last year. A relatively small increase in net debt can be noted versus the prior year end.
Obviously, since this point last year, there's a rather significant increase due to the acquisitions that we have made. The main reasons for the increase in net debt since the year end are, first of all, currency, with some of our debt being in U.S. dollars and converted to Swedish krona, it goes up. We have made some significant capital investments in our operations in Thomasville, in the U.S., and also paid out a dividend of approximately SEK 132 million, which I'm sure our shareholders appreciated. If we go on to the divisions and slide number nine, Sven, first is Extraction and Filtration Technology.
Extraction and filtration technology, as you know, is trading mainly under the brand name Nederman. Focus application areas is wood, welding, composites manufacturing, and general dust application. We can conclude the quarter with solid core business. However, there was a negative organic order growth versus the very, very strong Q2 2022, where there were fewer major orders, only a handful of them this period, and that can probably be related to the fact that the uncertainties in the market makes investment, larger investments, sort of more slow in their decision process. We have received increased orders in prioritized growth segments we have had in food transport, green energy, defense industry.
We have some example, a large one in waste recycling in Poland, battery manufacturing in Spain, solar panel manufacturing in U.S., all things we've been active in earlier, but where we see a growing investment pattern. We have higher sales volume, that has been positive for profitability, but we have had some margin reduction, and that has been mainly high share of solution sales, the inflationary pressure on expenses, which is high. We have had a slightly lower margins in RoboVent, but they are improving all according to the plan. The margins in RoboVent sales are significantly higher this quarter than one year ago. In the regions, we booked four major orders in Americas, it was three for wood and aerospace.
Our large business is wood, and it is in welding application on the US market. We have one major order in China, which is good. It is in healthcare. We have seen significant sales increase in EMEA, but there has been an absence of larger solution sales orders compared to last year. We have strong sales in RoboVent, whereas in the wood segment, it's been slower on the US market. As I mentioned, RoboVent develops according to plan, and they are increasing their margins and profitability, and we have continued improvement plans when it comes to supply chain and et cetera. Orders increased also in APAC, but the sales was down due to a very, very small opening backlog.
We've got some mid-size orders, they are secured in the APAC region, the project to relocate operations in China is proceeding according to plan, will be finalized by the end of August. Some other key activities has been the launch of a new Fume Eliminator, mainly for portable use in welding segment. We have a new ATEX hose reel for effective management of emission from gas and hybrid operations, public transport. When you are using gas and other high temperature solutions, you need to have special equipment. We have continued to roll out the Nederman SAVE, we had a big launch at the LIGNA woodworking fair in Germany, we will do for America's AWFS. That's coming up in two weeks from now, in Atlanta.
SAVE is an energy saving system that has caught a lot of interest in the market. We have also continued to improve our manufacturing sites, and again, we had an inauguration of a new painting line in Poland to further strengthen our efficiency in that more and more modern factory.
When it comes to financials for Extraction & Filtration Technology, strong orders received, SEK 657 million is a 5.2% currency neutral growth, like Sven mentioned, negative organically. Sales extremely strong as well, SEK 627 million versus SEK 475 million in the same quarter last year. Adjusted EBITDA ended at SEK 85 million versus SEK 80 million in Q2 , 2022. That gave a margin of 13.5% for the quarter. For the year-to-date, the margin is 14%, which is equivalent to SEK 173 million versus SEK 162 million in the same quarter last year. Let's move on to Process Technology, Sven.
Process Technology had a very strong quarter, and the development during the quarter, we had a solid order intake. There are differences between different segments. We will come back to that. We have had significant sales growths in all segments, in all regions, and both in solutions and service. Our activity to grow service content in our business are continuing to pay off, and we grew also this quarter. It's been the most profitable quarter ever for this division. Going to Textile and Fiber, where we trade under the brand name Luwa, orders received declined versus a very strong Q2 2022, it was in line with Q1 2023. We have, due to the strong backlog, seen a sharp increase in the sales and the invoicing.
What we could see is that generally, the textile market globally is weaker, and we've seen a weakening demand in China, whereas India has been performing well and continued to take market share in this market and some others that is served from our India hub. There's been a big interest in division solution, including new fan system, providing significant energy saving. Energy savings is of big importance, the new fan that we launched this spring has caught a lot of the customers interest. If you get to foundry and smelters, we have seen an increased demand for metal recycling, especially in U.S.
Metal recycling has been an issue in Europe for a long time, and if you go for aluminum, I think 80%-90% of all used aluminum will be recycled in Europe, whereas less than half of that percentage in U.S., but that's a growing interest. We have booked several major orders, and we had an overall strong growth in both order, sales, and profitabilities in foundries and smelters. When it comes to customized solutions, there was a healthy order intake, strong mining sector in Australia. We did some in Indian petrochemical, in line with the globalization strategy, where we are bringing technology that has mainly been developed in the U.S. hub, and now more on a global arena.
The key activities, one, of course, the ITMA show, where we had a lot of general interest. We further strengthen our position as the leading supplier, especially, they found an interest in our new NCF fan that saves energy. It's a unique carbon fiber blade. It, a fan that through more efficient air handling, can save at least 4% of the energy consumption. It doesn't sound a lot, but it is, if you compare, you can have very short payback time on this. We have continued to invest in our plants, a new painting line, sandblasting, and upgrading in the German plant, where we produce, it's a main production hub for the foundry smelter solutions, the FS filters.
This restructuring program that is proceeding according to plan and the cooperation here, been with the other division, especially EFT and the co-location in Suzhou. Everything according to plan.
We spend a little time looking at the very impressive financials for Process Technology Division. Order intake was SEK 510 million, which is still extremely strong. 4.8% organic growth versus the same quarter last year is extremely pleasing. Sales were very high. This has been maybe expected, but given the backlog levels SEK 644 million versus SEK 383 million in the last year is a currency neutral increase of 59%. With that, the adjusted EBITDA totaled SEK 74 million versus SEK 14 million in Q2 2022. That means an EBITDA margin of 11.5% versus 3.8% in Q2 last year.
So far for the year, EBITDA, SEK 116 million for the first six months versus SEK 25 million in the first six months of 2022, means an EBITDA margin year-to-date of 10.1% for Process Technology Division. We move on to slide 11 on Monitoring and Control Technology, then.
Yeah, Monitoring and Control, this is where we have our control systems, our monitoring, gas and particle monitoring, under different brand names, under the umbrella of Nederman, like Gasmet, NEO Monitors, or FilterSense, Insight, et cetera. Monitoring and Control, we had a development during the quarter that was very positive in order intake. We continue to have all brands growing. Americas and APAC were the strongest regions, because we have now got some speed to our new setup when it comes to our sales structures, especially in Americas. Still, just in the beginning of that process, we have much more to do there. Profitability was strong. We had higher sales volume and better functioning component supply. There are still issues when it comes to component supply uncertain.
That means that we have larger, we fill up our warehouses a little bit more than we would like to, but we need to do that in order to continue to secure a reasonable supply time to our customers. In EMEA, orders and sales increased versus Q2 last year. We have seen higher activity, both Gasmet and NEO Monitors. We grew well in most geographies, with some exception of Germany and Finland, where we saw it slowing in a slower market. In APAC, positive trend for orders and sales continued. Gasmet booked new large orders in several countries. The recovery in APAC has been better than expected. There are uncertainties whether this is a long-term trend.
We see the worrying, we have discussed about buying Chinese, et cetera, and push for that, which could be a hampering factor. However, our superiority in technology has countered that fairly efficiently so far. We'll see for the future. We are happy for the strong success so far. In Americas, we had strong sales and orders received. NEO Monitors sales more than doubled because we got several major orders to the petrochemical industry, and this is a result of our strategies in two years back to grow our own sales organization, going more direct to the end user. Gasmet performed well, and for the new portable analyzer for various application, we had a successful launch. Auburn FilterSense were restricted due to capacity limitation during the implementation of a new ERP system.
We will secure that we will get back to the Q3 here. Key activities, the new GT6000 Mobilis is a very interesting name for a product. All technicians are happy to hear that this portable emission analyzer is, you know, much interest and many new orders. We are working hard to be able to meet the demand. Inventory has been maintained at a high level to ensure deliveries to customers, as I mentioned before. We are trying to reduce the levels in a very controlled manner, since we see a slightly better functioning component supply.
Financials for Monitoring and Control Technology division. Order intake, SEK 186 million versus SEK 161 million in Q2 last year is a 12.1% currency neutral growth. Sales, SEK 177 million, which is a significant increase versus SEK 149 million in Q2 last year, 14.4%, to be precise, and an adjusted EBITDA of SEK 34 million versus SEK 26 million in 2022, gives a margin of 19.3%, which coincident is the same margin as the Q1, meaning the year-to-date margin, 19.3%, is SEK 67.2 million, up from SEK 43.8 million EBITDA in Q2, in the year-to-date 2022. Solid profitability development for this division. We move on to Duct & Filter Technology, Sven.
Duct & Filter Technology, where we supply duct, special ductwork and filter, both externally under the brand Nordfab and Menardi, and to internal use in the other divisions. The development during the quarter was good. We had sales and order growth versus both last year comparatives and to last quarter. The profitability was strong. We had higher volumes, improved production and inventory process on the way. If you look at Nordfab, the total orders received declined slightly versus Q2 a year ago. There were fewer orders in the core segments, such as wood, and we've seen the same, that the wood industry has gone backwards a little bit this quarter, both in U.S. and in Europe, and we can see that also on the Nordfab side.
We got several orders that we secured in new areas, where we have introduced our system. That is aerospace, it's been in food, it's been in battery manufacturing, also in some recycling industry. We increased sales in the U.S. We improved definitely the production performance, that helped to increase the profitability in the U.S. operations. We saw in EMEA decline a bit, with an exception in the U.K., where we had the best quarter ever. This is not due to a booming market, but we are significantly taking market share with our new setup. The Thai orders increased a little bit versus Q1 this year, declined with comparison to last year. We had a slight decline in Australia versus a very strong Q1.
In Menardi, highest ever quarterly orders received. Many small improvement to sales activity has given a strong increase in our order portfolio. Profitability now on historically very strong level for this area. Key activities, we have pilot launch of the Nordfab Damper Control, a simple, effective energy efficiency solution. We have continued the work to renew and update the factories and manufacturing capabilities, and we have taken into use gradually the investment, the large investment in new warehouse and manufacturing in Thomasville, U.S. We have also now a 10,000 square meter solar panel facility on the roof of the Nordfab U.S. building. It will be connected to the grid during this month, fully. It's not we that are a little late.
We are going to be the largest private solar panel user in Carolinas. They had some difficult to connect us to the grid. It will be finalized in July. Again, a part of our sustainability activities to stay ahead. We have also had the campaign, The Unexpected Superhero. That as a part of the 50 years and 110 years celebration. 50 years for Nordfab, 110 years for Menardi. That's to support, and also highlight the good performance among our employees.
Financials for Duct and Filter Technology. Orders received increased currency neutral with 2.7%, organically 1.7%, and we're at SEK 193 million for the Q2 of this year. Total sales, SEK 216 million, versus SEK 190 million last year, is a 4.8% currency neutral increase. Adjusted EBITDA ended at SEK 41 million, versus SEK 28 million in Q2 last year, which is an EBITDA margin of 18.9%. Year-to-date, the EBITDA margin is up at a very healthy 19.3%. That's SEK 83 million in real money, versus SEK 60 million for the year-to-date last year.
Okay, outlook. Very interesting to guess the future. If we start to say we have orders received, that has remained solid, although we have had a slight decline in this quarter on ordering date. Our base business and strategic offering enables us to assert ourself well in the current market. Risks of problems in the supply chain remain. There is high inflationary pressure and weaker economic prospects that can impact customers' investment decisions. Such a scenario could impact Nederman's own production delivery capacity. There is continued geopolitical uncertainty. Our order backlogs, however, remain strong, even if now behind peak levels seen previously. This, combined with our ability to grow sales to industries with good structural growth, means we have a positive view for the next quarter, but remain more uncertain regarding development in subsequent quarters.
Although various factors may temporarily contribute to a dampened outlook, Nederman's long-term potential continues to strengthen in a world in which insight into damage that poor air does to people is increasing. Nederman, with its leading industrial air filtration offering, has a key role to play and good positive possibilities for the continuing growth.
Very briefly, the financial calendar. The next quarterly report, Q3, is released on the 23rd of October this year. The year-end report for 2023 is released on the 15th of February, 2024. With that, I think we can open up for any questions that listeners might have.
If you wish to ask a question, please dial star five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial star five again on your telephone keypad. The next question comes from Anna Widström from Handelsbanken. Please go ahead.
Hello, Sven. Hello, Matthew. Hope you both are well.
Good morning.
Good morning, Anna.
Thank you for taking my questions. Firstly, I would like to dive in a bit into Process Technology. I mean, this is a very, very impressive margin development that we saw during the quarter. Could you maybe give us some more details on, specifically, on what's driven this sort of margin expansion? Obviously, as you said, you have had solid sales development as well, but if we go in a bit more detail on what's driving the margin expansion in this quarter.
Shall I make a start on that, Sven? What we can say, Anna, is that we have delivered well on the projects that we have taken. What we typically see in this division is if we deliver more solution sales versus the service sales, you might see a slight decline in the overall margin, we have, given that service is more profitable normally. We have, however, worked over a long period of time, particularly in the Luwa business, for example, to drive up our margins on projects and also reduce the risk taken on our projects. Both of those elements have worked out extremely well for us in the quarter.
Of course, you have the pure volume absorption of the fixed costs in the business. If we're trying to look forwards a little bit, we can't expect to be doing significantly over SEK 600 million in sales every quarter. I actually didn't mention that on the slide regarding Process Technology, but you can now see a slight drop in the backlog. However, the outlook for Q3 is probably rather good. This division, the final point I ought to make is, this division, remember, is extremely strong, typically from a return on capital employed perspective. Right now, it's very, very high. Even with a margin of 7% or 8%, their return on capital employed is significantly above the target of 15% for the net amount.
Great. It's more than double.
Yes, it's more than double right now.
May I just compliment a little bit? This has been the task, and we have said that it will come. There has been, and there is still in this, generally in this business, a strive for growth, top line, et cetera. The focus in the division has been a clear focus in growing the profitable part, especially we continue to significantly grow the aftermarket. We develop and launch new tools like Gasmet Insight, that was launched in March, mid-March, 17th March or something, where we can have a service calibration work in the future being done remotely. Again, things that focus on the aftermarket and focused on profitable orders. We continue to grow the aftermarket.
We have focused and carved out and stopped focusing and growing in areas that we do not see that we have such an advanced solution that it's more profitable than average. We have also focused on efficiency by using what we call more closer to configurated systems, like the success in the recycling, smelters, foundries, et cetera, in U.S., where we have introduced, I call it European, German technology. That has been a problem both internally and externally to get an acceptance from. When it's a very efficient solution that is preconfigured to a certain extent, i t's efficient, it's known technology, the project turns out well.
Having said that, we are very pleased with all the development, and we believe that we can continue to have significantly better margins than historically. You cannot expect the 11.5% every month. We have a long-term target to be around 8% in this division, and if we do that, we are significantly above the return on capital employed that we have as our official target.
Okay.
Sorry for talking too much, Anna, but I hope it's.
It's very positive from my side, Sven, thank you. Maybe just going a bit into detail, because it sounds a bit like you're trying to make sure that we don't expect 11% going forward in, like, Q3 and Q4. Is that correct?
Correct.
Yeah.
Yes, correct.
Good. A more general question, what trends did you notice during the quarter? Did you see anything that was significantly different in the beginning of the quarter in comparison to the end of the quarter?
The end of the quarter was better than the beginning of the quarter.
Yeah.
Probably there was a peak in uncertainties during April, as well as people had long Easter vacation, especially in and around Southern Europe and so on there. We saw a better June than April. I can't say, your guess is as good as mine, but it’s been. There were a lot of negative things going on in April in the world, probably that had an impact.
Okay, good. If we go into expectations on inventory levels, you did mention it a bit on the Monitoring and Control business, but on group level, what should we expect and what will you try to deliver for the rest of the year?
The inventory will come down somewhat from where it is now. I f I start with Monitoring and Control, that's where we've got a specific task to get it down. I would say that they're pushing to take it down. Like you say, in a controlled manner. I actually hope. Now I'm thinking that someone's going to be listening from that division. I hope that the inventory level in monetary value is probably the correct level because they need to continue to grow. That will therefore bring down the inventory days somewhat.
Overall, it's not for that division, it could be a reasonably good decrease, but from a group cash flow perspective change, I don't think you can expect a major difference here in inventory, particularly if this order intake level that we saw in Q2, which was very good, holds.
Yeah, that sounds reasonable. How is everything going with the new sites? Does it seem to go according to plan?
If we say, the new site in Helsingborg, there's some walls up there now.
A roof.
A roof actually on the office building, which is nice because that's where I'll be sitting. That is progressing according to plan, and the move is scheduled for Q3 in 2024. When it comes to the Thomasville plant, which is the other one where we've made a major investment, that one is much further ahead, of course, as we've mentioned. They are moving into there. They're working on the full workspace actually is not being utilized right now. We're making sure that they don't just spread out in there. We want to optimize the layout and the flow in a sensible manner. There is some more machinery investments to come there.
One thing that we will see is a reduction on the energy costs from these solar panels, like Sven mentioned it. W e're the biggest private solar energy producer in, is it the whole of North Carolina?
Yes.
It's actually quite a big site.
Yes.
If you look at the changes in China are going according to plan. We do not own those buildings, we are moving in also there. We are continuing to invest in capability and efficiency, and parts of the increased profitability or bounce back in profitability in Nordfab comes from the fact that we now have taken in new machinery and that are in full operation, and we have phased out the older stuff that has had an impact on the efficiency. We continue that work.
As also we have, over the years, made significant investments in our Polish factory, and as I mentioned, we inaugurated the new paint line that would further, both from an environmental point of view, but also from an efficiency point of view. We have a lot of pressure now for the sales organization and E&FT division to sell more because we have more capacity in a more efficient way. We continue on those fronts, and we believe that we can stay ahead with these activities.
Okay, good. I think this is my final question. We noticed that you do have a positive organic growth in your business areas that are also growing. Would you like to highlight any other margin expectations that you have in addition to the ones on Process Technology, for like later and the rest of 2023?
One I can say something on. Monitoring and Control Technology, they're up at 19.3%. Pretty sure that's where they are for the first six months. Y ou can argue that they could go even higher than that. We would perhaps prefer them to grow even faster than the average of the Nederman Group, and that is one of that growth, actually, growing Monitoring and Control Technology faster than the other divisions, is one of the targets that we have in order to get towards our 14% EBITDA target for the whole group.
We're on 12 today, growing our more profitable business faster. That's the one where I would say they're probably where they need to be or not very far away from it in margin terms. The other two divisions, you can look at historically where they've been and how they're doing, and I think you'll make some rather good assumptions on where we think they should be.
Okay, good. That's all my questions. Thank you so much.
Thank you very much.
The next question comes from unknown caller. Please state your name and company. Please go ahead.
Yeah, sorry. Good morning. This is the unknown caller, Gustaf von Sivers from the Calgus Fund.
Hello, Gustaf.
You're not so unknown.
Looks like. I don't know what went wrong. But anyway, congratulations, a great report. It's wonderful to see how you make the company, you know, grow slowly but steadily over all the years we've been shareholders. That's great. One question, extraction in inflation. You said you had inflation on expenses there, and I also saw that organic growth was a bit slow. Is it impossible to sort of move that inflationary on expenses over to the customers? How does the competitive landscape look? Is it tougher than in other divisions?
If I can answer, yes, of course, it can be and should be pushed further on. EFT has a challenge that have lots of smaller regional, local competitors that sometimes here, especially we've seen in Germany, where you've seen also the confidence indicators going down and smaller businesses where they focus more on filling their local manufacturing site than having a reasonable price. There has been some of that. There has, of course, been also more inflationary pressure on transport, salaries, all of that. I t's taken slightly more time to get the latter part of it in the installation and the latter part in the sales companies to move over than we would like it to take. We are continuing, we are continuing to push up prices.
We are working on that all the time. The division management are very much aware of it and working with it. We also have to remember, they have been extremely successful over a number of years to push them up themselves in the pricing sector, and we are significantly more expensive than most of our local competitors. It's a matter of time here.
Okay, thanks. My second and final question is about the China bit, would be interesting to hear, because it's a two-sided picture, as I see it here. You get some great orders in Extraction & Filtration Technology, both large orders and mid-size orders, but then you have difficulty in Luwa on the textiles side. You know, most companies deal with China. It's a very big country, and it would be interesting to hear if you have any idea about the explanation behind this. I'm thinking like, you know, the extraction could be internal demand in China for expanding their own factories and textiles, maybe export-oriented business. I don't know. It would be interested to hear your take on that.
If you take the global textile business is significantly down, and if you want to go deeper into, you can read, Swiss Rieter is a large spinning supplier . Well, I have to think about some more. The activity in the textile industry is very slow this year, especially in China. China has got significant problems. Everybody's been talking about that now they are opening and so on. But, as I suspected and said a quarter ago, China is not having a very healthy economy, and now we see also reports on that. That's a part.
If you then look at the MCT side of it, measuring from Gasmet and from NEO Monitors, we are on the sort of upper level, very high-tech solutions in environmental technology and measurement. We have to admit that the Chinese authorities are going after the polluters and are investing in both cleaning up their coal fire coal power plants fire power plants, and then a lot of other things. There has been then a need for high-end measurement technology. There is, of course, discussions ongoing, as we mentioned, which is a potential threat in the future. We don't know this restrictions on buying imported goods that they should, especially on state-owned or state or government-related companies, they should buy Chinese.
We also notice that the local provincial government's economy is not very strong, which means that we have to fight to get the prepayment, et cetera, et cetera. Generally, I would say China is not extremely strong economy. The traditional areas are not booming, and they also see that a lot of the textile industry start to invest outside China, and that has been something that's been ongoing for some time as well. We see that we take good orders in the declining market from our Chinese operation, who are supplying, sorry, the Indian operation, supplying the neighboring countries, Indonesia, Cambodia, and also others. It's a complex situation, but generally speaking, I don't think China is going to boom for the coming years.
Okay, thanks.
Thank you.
There are no more questions at this time, so I hand the conference back to the speakers for any closing comments.
Well, we thank you for taking the time to listen to us, and say have a good and great summer vacation whenever it comes. Thank you!