Earnings Call: Q2 2021

Jul 15, 2021

Good morning and welcome to the Nedman Holding Audiocast Teleconference Q2 2021. For the first part of this call, all participants will be in listen only mode and afterwards there will be a question and answer session. Today, I am pleased to present CEO, Sven Christensen and CFO, Matthew Cusick. Please begin your meeting. Good morning, ladies and gentlemen, and welcome to the session where we are Going to present NERMA Group Q2 2021. Starting with a bit of a summary and some highlights, We can conclude that we have seen recovery, a continued recovery in many other markets. There are, of course, exceptions. We have seen further close downs and lockdowns and so on. But generally speaking, We have seen a continued recovery in many markets, not only compared with last year, which was Easy to beat in comparison, but even so, we had close to 10% order intake growth Compared to 2019, which was more of a normal year. We have also been able deliver strong profitability in 3 out of 4 division, very good profitability in MCT and also very good in the other 2. For Process Technology, where we have the large project, we have Yes. Still had some difficulties sales wise depending on the long lead times and the low order intake last year. But what is Good is that we have had a very good order intake, and the bounce When it comes to cash flow, cash is key. We have had a very good cash flow for the 1st 6 months here, And we have to continue to have a good trend. We see also increased demand For digital solutions and digital tools that we are the supplier, we have for some time said that we are focused on 2 second, both with the offering and the tools that we are using internally and also providing our dealers with. And here, we have also interesting that we are one of the finalists, 1 out of 3 to the ASWF show in Las Vegas on woodworking, works biggest woodworking. And this is the digitalization tool, the tool that's touted to make 3 d drawings. And it Simplify slide for internal people in Nederman, Nuffeb and also helping Our customers to do a better and quicker job, very increasing hope that the team will win this challenge. There are, of course, also some continued concern over raw material prices and Also transport, not only pricing, but also difficulties to booking for transport. We are handling it, but it's a thing that needs to be kept under control for the coming period. Okay. If I move on to Slide 3 and take you through a couple of slides on financials before we go into dig into the divisions. If we look at orders and sales for quarter 2, we were order intake was at £1,000,000,000 versus a very low £740 Last year, that's currency neutral growth of 54% versus Q2 last year. How comparable that is, That is everyone can understand this is not really relevant. But as Sven mentioned already, 10% growth versus Q2 2019 gives you a picture of how we've done. Sales of €977,000,000 in the quarter, It's also higher than Q2 last year, about 14%. Currency neutral growth, it was actually negative versus Q2 2019, as Sven mentioned, some of these difficulties regarding in executing projects, we'll come back to that particularly on Process Technology side. January to June, so the first half year, we've done almost £2,100,000,000 in order Take, which is 31% higher than last year and more interestingly 10% higher than 2019 currency neutral. Sales of €1,845,000,000 for the first half of the year this year, which is just below €1,900,000,000 that we did in January to June 20 2020, currency neutral, that's actually growth of 5%. We can see that the currency is impacting us negatively To some extent, and as you would expect as well there is a slight negative growth versus Q2 2019. If we look at the charts on that page briefly, you see that the order intake chart has continued to continue its would trend on a quarter by quarter basis. The other perhaps interesting thing to note is that order intake for the Q1 So 2021 is on a rolling 12 basis, we're over the €4,000,000 mark again where sales are longer. And that a hint that we're building some backlog. If we look at Slide 4 with profitability and cash flow. Adjusted operating profit was €97,000,000 for the quarter versus €73,000,000 last year. That's we got to our 10% target yet again. And we adjust what we got there. Profit after tax, That was adjusted operating profit 10%. I ought to mention there was this and some of you will have seen there was this one off booking related to a Defined pension contribution defined benefit pension scheme in Norway that has been We expanded that's a pure accounting booking for €29,000,000 and we ignore that for all the purposes of the presence of the profitability here. Adjusted operating margin 10%, like I say. Profit after tax DKK 83,000,000 which gives us DKK 2.36 per share. Cash flow from operations in the quarter, DKK 181,000,000 versus DKK 62,000,000 last year. You see on the chart on the bottom right how strong we are already this year on cash flow, over $250,000,000 from operations from operations already in the 1st 6 months of the year. January to June, our operating profit SEK185 SEK5 1,000,000 is SEK138 1,000,000 last year. We were up 10%. We hit 10% for 3 quarters in a row now, which we're quite happy with. Profit after tax, GBP 140,000,000 earnings per share GBP 3.99 billion. Corona, a little bit frustrated, he didn't But this is how the numbers fell out and that's where we are. Like I mentioned, cash flow from operations now so far this year, dollars 254,000,000 versus 75,000,000 Last year, this is one factor behind the dividend announcements, which we will come back to later in this presentation as well. If I move up to Slide 5 and I can tell you a bit about extraction and filtration technology business wise and I'll tell you something about the numbers after that. Extraction and Frustration Technology, our largest division, mainly trading under the brand name Nederman and Customer and applications type, good working, composite, Welding and other yellow dust applications. The development during the quarter Has been good. They have had growth in orders received and sales in all regions. The sale of smart filters To continue to increase. And again, as I said, how smart is the filter? But when it is, it is the new We launched or last year launched a filter series with their new control system that are also Enabling insight and they are Insight Ready. And Insight Ready is our IoT solution that will help our customers to get more information and simplify life for them. We see a significant increase in interest in also Linking it up to service agreement. Increasing factory utilization rate has It's been a positive factor. That does not mean that we are truly loaded. We are still in a situation where we Have plenty of room for more orders. So that is not the limiting factor, but it Has an impact, of course, on the profitability, which is next point. They showed a very strong profitability in the quarter, Both from very good work, continued work and also some positive mix situation. In EMEA, we can generally see a very good recovery in most markets. There are some exceptions, but generally, A clear and good recovery. It's mainly the base business because we haven't received many large orders. Basically, one large wind power order in Denmark. There has been Product sales and its holdings include some of our partners and distribution network has been doing reasonably well. And as mentioned, we have also, in conjunction with the Launch and sales are more inside subscriptions. We also see a positive development in Service Business. Moving on to Americas. We have seen a solid growth in all markets. We have basically once again, it's a base business. But there is 1 big order and major order to rescue service segment. And there are medium sized orders in Canada and the U. S, 2, mainly the wood industry, Some others, but large, with the exception of 1 to rescue service. Service business, That's also been strong and again related to the new digital services. Asia Pacific, Several markets are still affected, and we've seen later in the later part New restrictions in especially India, Thailand, Malaysia as well, there has been Significant new restrictions. India has had a very tough time. Now They are starting to reopen. But generally, we have had a healthy growth in the region, and especially Australia are coming back So what has been the division's key activity? There has been successful product launches In the Rescue Service segment in North America, we have digital product development continuing, and we have Further launched digital filters in Central to retain strong market position. We continue to develop, and we continue to fill These new features with capabilities positive for our customers' business. The material prices are increases, and we have adjusted the prices. But there are risks for lags because the speed and the lack of Components makes it more difficult to so it's a moving target. There are risks for It's not a hit on margins in short term, but we are doing well and the teams have been doing an excellent job. So far, we have Being able to supply our customers with very limited delays. We have also, which is important, ISO 9,000 and 14,000 has been Approved and there were no comments. So our continuous work with environmental issues, sustainability issues and Quality is paying off. If I'd say to you briefly through the financials for Extraction and Filtration Technology, I won't call out every And from the table that you see, orders for the quarter were DKK475 1,000,000 which is 42% up versus last year. Sales, £444,000,000 which is approximately £50,000,000 higher than the same period last year. Adjusted EBITDA, dollars 80,000,000 which is 18.1%, which this is Sven mentioned there, this division had a very strong Profitability in the quarter, we did 10.8% in a tough Q2 last year. If we look maybe at the order intake, if we look at January to June, the order intake is now €906,000,000 that's 24% up Versus 2020 and then more significantly, it's also a growth versus 2019 currency neutral. Adjusted EBITDA year to date 17.3 percent, so rather strong for this division. That's $145,000,000 in EBITDA that they brought In the 1st 6 months of the year. Okay. And then if we move on to Slide number 6, which is Process Technology, yes. And Process Technology is, as you are probably aware, where we have mainly large systems. We are in textile. We are in recycling, meaning aluminum smelters, leather. We are in Conway. So bigger projects overall. And where Liza is doing very well. We had a very strong order intake, More than 100% growth versus last year, but we have to remember that Q2 20 '20 was exceptionally low. The backlog is however SEK 170,000,000 Swedish krona higher than the year end. So we have, during the 1st 6 months, built a healthy backlog. There has been, due to this, an extremely, I would say, very, very good working capital development. We are also seeing increased sales of digital solutions related services. We see that the For Elizabeth, the textile segment, the fairly new launch control system, DTV 7, are very well received. And we now continue to integrate inside possibilities with that. And that has been well received With the increasing number of service contracts and supports in that area, differentiation from competition. Reduced margin because of lower sales volume and some lower margin projects in the quarter. Project execution, we have had some delays due to COVID restrictions. India, We continue to have order intake, but the Indian authorities have periodically forced us to shut down the factory for Weeks or days and so on. And that has had a negative impact on our ability To execute the project. We have seen some of that there also in Turkey and some other places. If you go to textile and paper, we have seen a continued recovery. 50% of the division's order intake year to date It's coming from llda, meaning the textile and pipe. But we have seen that even China now is coming back. Some pressure on local price competition. We tried to fight that with our higher technology Content with our new digital, Digi7 and Insight, etcetera. And coming back again, the lockdowns in India and Turkey had disturbed project execution. Our Indian team has Doing a fantastic job under very difficult circumstances with Flipping orders, handling it to the best. And so far, we have Very positive customers. In the foundry and smelter area, we have seen some increased demand for aluminum, aluminum recycling, Actually, a lot of new applications. So, they said growing quotation pipeline, especially on the European segment. We have basically one really large order, a 10 year service contract with digital monitoring of connected systems, Which is again a result of our work and continuous work to offer new solutions to our customers. Key activities, growing share of systems, homes of Insight Ready. Majority of these Systems then result, as mentioned before, in the service agreement for 1 or several years. Supply and logistics chain, it's in focus, stays rising prices of material and transport. And there's also An increase in problem to book transport from China to other places, EDF or wherever you now should supply. We have dialogue with the customers and to mitigate this impact both on price And also making sure that they can get their equipment to install. We are reviewing the entire and have reviewed the entire order book and are in dialogue with our customers To mitigate the impacts, both of increased transport costs and material costs. If I go through the numbers and process technology briefly, in the quarter, the division took DKK328 1,000,000 Krona in orders, which is 101% growth versus obviously available in Q2 last year, but Perhaps more significantly is also in excess of the sales that we did in the quarter, which were DKK290 1,000,000. Like Sven mentioned, we had Low sales volumes and some lower margin projects happened to be those ones that we were able to execute during the quarter. And that combination has led to a rather low to mid SEK1.6 million and 0.6%. What is most interesting here, if we take year to date for the 1st 6 months, we've taken £703,000,000 in order intake in the division And only invoice, I'd say only invoice, dollars 533,000,000 in sales. It means we've built the backlog, as Fred Mentioned of DKK170 1,000,000. Now some of that is good ongoing business and some of it is a result of The delays that we've seen in certain project execution, certain parts of our project execution, there's a chart on the slide on the top right side there you can see Orders against sales are up for the every quarter since the start of 2019 and we see that So sometime during 2019, we were eating into backlog. That was from some Luma backlog that was extremely high when we acquired them late 2018. But then of course, Q4 2019 and Q1 2020 were actually rather good broader And then we saw the very low orders in 2020. You could see the curve is greater than where we ate backlog throughout 2020. It's now on its way back up. And I mean the backlog, why it's all about backlog, the process technology is a backlog business. The project that The time from order receipt to final project execute, trying to final commissioning of a project can be Roughly 12 months or more in certain large projects. So this is significant and it is a positive sign. So The very low profitability you see in Q2 2021, that should not be what you expect to see going forward, so yes. I'll bring you on Slide 7 and then the monitoring control technology, Sven. Yes. Monitoring control technology is where we have our Digitalization with Engerma Insight. We have the measurement and control from organ triptosans, CASMED, Neo monitor. And the development in the quarter is that we have had a strong order intake, good sales in the quarter and a very good profitability, record high BRL22023.5 percent in EBITDA. If we go to the geographical areas, We have in EMEA have an increase versus last quarter. And Orders and sales was a bit lower than a very strong Q2 in 2020. We have seen less of an COVID impact with last year in MCT than in the other divisions. We have had a negative impact on COVID restrictions, mainly in the process control area. The emissions related business has been more positive. And Why the process control area? It has been a limitation of access to sites. So that has been an issue. In APAC, orders and safety were higher than last year and last quarter, and it's It's been the Chinese market that has been driving the growth. There has been a positive impact for the whole entire region. In Americas, we had good order intake and we have growth in that market. We see that they can work much more efficiently and the market is almost unaffected right now at least By the pandemic and in lockdowns and restrictions, however, some of the activities planned that in Growth plans we've had for the division in America has been hampered by the limitation and Still active limitation of us visiting and being able to do some of the initiatives. Well, the key activities is that we have we want to mitigate the problem of traveling. We have built the 1st digital demonstration room in NEO in Norway, and that can improve digital customer meetings, And it can also give training to service technicians on remote. So we have made this investment and we will continue to do investment similar to this one. We are Sort of learning from the first one that was launched here mid June. And After the summer, we will take decisions where we will conduct next trading center, digital customer maintenance Possibilities. We have completed inside integration for LBR pit because that's for wood application. And they are so by the EFT division, increased, of course, the sales of connected Okay. We have launched 2 new products of emission monitoring. 3 planes doesn't say anything for you, LAS will inspect, but they have been very well Initially very well received, and we continue high speed in developing new Product, the launch, new product in this segment. Because over time, we Jimmy, things will be more commoditized, and we continue very high speed on delivering new solutions in the area. That comment on solutions trend leads nicely onto the profitability. Why do we keep investing in new solutions here? We see what Margins we can get out of this business if we execute it properly. In the Q2 of this year, we took SEK140 1,000,000 Cranmer in orders received, which is 25.8% growth versus currency neutral versus last year. Sales were $136,000,000 which gave us an EBITDA of $32,000,000 23.5 percent. So quite a good or very good profitability for this division in the quarter. Year to date, dollars 250 £5,000,000 in order, £258,000,000 in sales. It's good growth again versus last year, and we're almost 21% on an The margin for the first half year here, not much more to say on this division, I think, has gone rather well in the quarter. So I'll move on I like Doctor. Phil's technology. Yes, Doctor. Phil's filter, as it says, it's Doctor. Phil's filters for Internal use and external. And we have seen a continued recovery in most markets during the period, And we have a very strong growth versus last year's Q2. And we are definitely back in line with 2019, which is a good sign. Improved volumes and operations efficiency It's leading to a strong profit margin. We have again invested in our new tools. We have invested new Updated ERP, and we have better control. North Pub continued strong order growth in all regions. In the U. S, EVI orders continue to grow, meaning that our efficiency work is Paying off again. We had one big order, and that was a mining order for Canadian customer. And what was a good sign is that we had a record order intake in Europe. Europe is still significantly smaller than our U. S. Business and we are working hard to continually grow that. So we are very happy for that. We also had a solid growth in Thailand. It's a smaller part of it, but it's mainly Export treatment to the neighbors of Thailand. Malartic, where we do field development, had a weaker development in the U. S. The acute need of replacement paper that gave us a good boost in Q1 has sort of that way Have died out a bit. So now I have to work even harder to find new orders. But good efficiency in copper optimization means profitability that we could maintain the profitability. We booked a semi large cleanroom order for new battery plant in Estonia. The key activities have been the earlier mentioned interactive MoFA 3 d2 QFB, and it was launched in the U. S. Market. And it will give improved efficiency When it comes to design and order and installation, basically, you get it 3 d going. You can put in Your specific data and then you get basically a bill of material outwit and then order form. So it's simplifies life and it's very well received. And again, that's why we have We are one of the finalists in the design award or innovative reward. Again, It will be launched in metrics in Europe and Asia later in the autumn. We also, since we have limited travel access, Tried to do it in a different way and what we believe is part of the new normal. Virtual sales Training has been completed for all sales personnel. We have used some external support, but we have also trained Online training to all sales personnel that it is possible we cannot be our seat away from what It was the good old days. So we are now focusing on much more Online sales meetings. Of course, it will not completely take away the need of Travel and meeting people, but we have and we have adopted well. Steel prices increases mitigated by Customer price increases. There is, of course, a risk because it continues. And we are So far, we've been very successful in pushing it forward And into the market, but of course, our risk of market decline and margin decline, if it's a continuous. We have also, as mentioned before, ordered a fully automatic DUC production line that will be placed In Denmark, in Europe, and it's scheduled to get live later in Q4 in 2021, and if we increase power capabilities, efficiencies and also increase the range, We can do longer pipe and that means we will be even more attractive on the market. If I may please go to financials for Doctor. Filter Technology. External order intake is up 41% currency neutral versus last year To GBP 114,000,000 total sales of GBP 131,600,000 in the quarter. Remember, this division actually Sales to our other divisions as well to some extent. So the orders and that this is total sales including internal sales. Adjusted EBITDA DKK24.7 million is 18.8%, which It's very slightly lower than it was in the quarter one. We see a little bit of this margin decline has crept in. And like Sven says, there is a risk that it could drop Somewhat further and we've worked very hard to ensure that that doesn't happen. But so far year to date further division, £50,600,000 I think the 19.5% is extremely healthy and a good sign that these operational efficiencies is working Along with a return to volumes somewhere near 2019 levels again. Moving on to Slide 9, a summary of the quarter, Sven. Yes. Yes. What we mentioned before, we have continued recovery in many markets. We are pleased that not only A very good growth compared to last year, but also a reasonable growth with 10% Compared to 2019, which is sort of a more normal year that we can refer to. We are happy that the 3 out of 4 divisions have shown very strong profitability and we have shown a very good cash flow, Very much from the 4th division that has had a very good order intake and cash flow. We see That the demand for digital solution and digital tools is growing, and we are very pleased You see that since we have spent the 2 years here investing a lot of time and money into building these Solutions and Tools. There are, of course, again, repeating myself, concerns on the raw material price increases And availability and transport difficulties and prices, which we continuously work with To make sure that we do the best we can. That comment leaves quite nice on Slide 10 and the outlook, Sven. Yes. You want me to say that we are cautiously optimistic ahead of the upcoming quarters and are seeing a continuous assessment Turn to normality in most of our markets. Our base business and strong digital offering mean we are doing well in the current market where the major We expect lockdowns and restrictions to have increasingly less of an impact on investment decisions. White's immaterial price and transport costs are putting pressure on profit margins and the negative impact is expected to increase in the short term. Lockdowns have shown what the world can look like when the air is not polluted by industrial emissions. This can be achieved without the paralyzing pandemic. More and more people understand what needs to be done. Every Nairman installation plays a part. Political will throughout the world. It's also required to use regulations and the incentive to reduce the risk of millions of people dying prematurely from breathing dirty and hazardous air. This increased insight The importance of Clean App is expected to strengthen the market in the long term. Okay. Pivotal Slide 11, some or most of you have probably noticed in the press release The Board of Directors proposed a dividend. We said we were going to come back with a comment regarding dividend latest at the end of Q3. The Board of Directors has already now proposed a dividend of DKK1 per share to be decided upon at an extraordinary general meeting. Notice for that meeting will go out Later today, the Board has the opinion that given the group's financial stability and a good capital structure, Good cash flow and solid profitability, the dividend can be motivated. It's basically a return to the Group's dividend policy, this GBP 1 per share equates to 32% of the net profit for 2020. That's the main point here is that it is a return to the group's policy that we've had for some time with 30% to 50% Calendar, the extraordinary general meeting for which the notice will come out today. As I mentioned, that will be Held on the 25th August as a postal voting meeting. The interim report for January So the Q3 report goes out on the 22nd October. At that point, I think we can We can stop talking for some time and maybe open up for some questions. Thank you. There will now be a brief pause while questions are being registered. We have no questions registered. Sorry, we've just had a question registered from Anna Lindholm Windstrom from Handelsbanken. Please go ahead. Your line is open. Hi, Sven and Matthew. Thank you for having a very great presentation. How are you thinking about sales growth ahead? Are you looking for M and A opportunities? I am especially thinking about your increased cash flows or is it more of a waiting game, meaning that the reopening will offer enough sales growth ahead? Or how are you thinking about this? We have as you say, we have an ambitious target To grow with minimum 10% in a cycle. We have And are continuously looking at opportunities when it comes to M and A. That doesn't stop us from wanting to grow organically, which has been the case this now. But we are working continuously with these two parts of growth scenarios. And we are evaluating loads of opportunities also now at this moment. But again, we are slightly picky what we want. It should fit in into our 4 cornerstones. It should give us More availability to the market, and it should be Maybe technology add ons in MCT division. In the other divisions, it's more that we want to get access to markets. Since we have I would like to say internally we have too many products. We have a very wide portfolio. We can solve most problems in the market. So It's difficult to give you a more precise answer than yes, we are working on both lanes. That's very clear. Thank you. And just last question. Are there any specific areas where you're more confident about the increased prices and the supply chain issues? Or is it mainly the bigger projects where is an issue ahead? It's been mainly the project because if you have I can give you an example. We ship 26 Containers from Shanghai to Alexandria, the price increased from $3,000 To $15,000 per container. Then they closed the Shanghai Harbor, So you couldn't load it. And then the customer said, well, maybe we postpone it 2 months and see if we can get a better transport Price, etcetera. This is an extreme example, but this is where you see that we have an impact. And our Teams are working together with our customers to solve all of this. So it's mainly the peak Where you have larger shipment and larger orders. When it comes to price, it's been mainly Steel that has been skyrocketing and have had an impact on almost everything. And it's also When it comes to access to materials, so You had just in time deliveries that you haven't really planned for because they are late in shipping in material. But again, we are working together with our customers and have so far been able to handle it to The customers appealing. So they are quite happy with us so far. We haven't seen any Really problematic lack of material, which could be, in that case, in MCT division because there you have Very special components, but we have been able to mitigate that, Especially because we early already late last year started to order Critical component. But of course, if it continues for another 6 months, it's going It's been increasingly difficult not being hit by any problems. But we are working on it. We are aware of it. And the organization, I must say, has been working very good in handling this together with our suppliers, Our customers, so far, so good. Perfect. Thank you. Thank you. The next question comes from the line of Gustaf von Sievers from Kalkers Fund. Please go ahead. Your line is open. Yes. Good morning and thank you for a very nice report. Good morning, Gustaf. Good morning. Yes. I have one question actually. It's about the extraction and the tax Divisions, when you say this extreme improvement of the margins, one wonders where we are looking to In a normalized market, in Greece, it will compare, I mean, to what it's been over the years, it is extremely good. And I also wonder if there I know you I mean, your service has increased for me to be and also the other Part of not only goods selling, which I understand is a part of the margin improvement. But I also wonder There has been a change in the competitive landscape in a way. So that's my question, basically. Where are we sort of Thinking to be when normalized market in these 2 areas when it comes to margins? And is there a change that has made this change Margin level possible in the competitive landscape. Thank you. If I start just on the margins on the 2 divisions that you I mean there's 2 main reasons for it. As we say, we've got you can see that we've got more normal volumes We're back on 2019 levels, Guy. And that's obviously helpful. What we have done is we've taken some costs out there as part of this restructuring plan, but it's not really that that has some help in the short term and then we can we in some of those costs do not It's been put back in even if we take some more volume. But we have been working very hard to increase efficiency at the factories. So, I mean, these we're up on both divisions, we're around or getting close to 20% EBITDA. And I think I don't I want the heads of those divisions will say that Sven and I have an opinion that this is where they ought And that is absolutely doable going forward. And maybe Yes, parts of competitive landscape has not been I would say it's rather been more Aggressive customers since there has been how should I say it? When you have Business that you need to fill, you have a lot of family owned business that And to be a bit aggressive in desperation and thinking that selling on price is a good idea. So What has been mitigating and how we are addressing this is to give better service Easy to do business with has been a theme over the last few years that We should be better in this. And I can give you an example. The QTO is another part of what Doctor. Flipper is doing. It has, when it's fully launched now in Athens, what took 4 hours before takes half an hour. And that's efficiency that gives you us better profitability and better service to our customers. And that's why they Get new customers. So I would say, again, there will be Hurdles along the way, but we believe that this 15% to 20% EBITDA should be Maintain an EFP and active filter. We can have hiccups with The exceptional price is in problem with price increases and problems from transportation. But we Have set what I call a new normal, and we had used last year to make efficiency by Introducing new VIA feed systems in both diagon filter and in the largest Part of E and T. We will do it in other areas in Americas later in the year. And we also see that better control, Better efficiency in your factories, Will. So if we can fully load the healthy wall factor, which is Absolutely not the case yet. We will see good margins going forward. Okay. Thank you. That's lovely. And I'm heading for the beach. Thank you very much. Enjoy. Thank you, Thank you. There will now be a further pause while any further questions are registered. We have no further questions, so I will pass back for any closing comments. Okay. We thank you for taking the time listening to us. And we hope you can enjoy The great summer weather in Sweden. Personally, I'm longing for some rain. Of course, it would be good For my land to have some rain to feed the animals. So thank you very much for today. Thank you for attending. You may now disconnect