Earnings Call: Q2 2021

Jul 19, 2021

Good day. Thank you for standing by. Welcome to the Novitas Q1 Report 2020 1, 2020 2 Conference At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. Please be advised today's conference is being recorded. I would now like to hand the conference over to the speaker for today, Mr. Magnus Forsen. Please go ahead. Good morning from my part also. To you, ladies and gentlemen, this is the result presentation from Novina Q1. We had a net sales, which is 30% more than 30% better than last year, most of it organic also. Main reasons, of course, the SunTrust COVID-nineteen business that we've been talking about before. We also have some retroactive revenue into the result and to the top line. And we can also say that this we have pretty weak comparables since last year when we didn't have any COVID-nineteen agreements with the PTAs or for that matter, basically no Sampra's COVID business, Edward. EBITA, SEK 255,000,000 EBIT The adjusted SEK 210,000,000, which is 4x as good as last time. And basically, the same thing holds For the results, of course, weak comparables from last year. But and also then And COVID-nineteen business within SunTrust. On the other hand, now we have a strong COVID Mining business in some sense during the last quarter. And we also have the retroactive revenue of SEK 35,000,000 And that's the basic course right through the to the results. And then we have a cash flow, which is SEK 100 and SEK 8,000,000 compared to last year, SEK 405,000,000, but that's quite long, I would say. Strong competitive movement at momentum at the time. We have won new contract During the period, SEK 6,700,000,000. We were also awarded A new extended contract with the city of Stockholm, which is the base, you could say, for Samsung's business And where they have been very strong already from the beginning. And we won 4 out of 6 contracts, There was a cap on that, and we couldn't win more. It was SEK 240,000,000 2 year contract with extension possibilities for another 2 years. We also have, after the period, defended traffic in And West of Sweden, in Venice, in Poland, that's traffic that we haven't driven before and up It's worth over the period SEK 1,700,000,000. We have also had good development in the Travis platform, where we are now Focusing on integrating VOID as a player into the app Platform, and it's going to be totally possible to pay and to see where all the scooters Are in the cities where Vohi is present and we're, of course, in the Nordics to start. And we have other development possibilities and plans going forward also with the Travis Patent. The proceeds of the green bond have been used, all of it, basically for electric buses Malvern that we started up or is starting up this weekend. It also includes BRT Solutions And we are happy for that. Another contract, electric contract that we are starting out this weekend This coming week is the Turco electric bus contract, and it seems to have gone Yes, quite well in both these two cases. The AGM decided on a dividend, which corresponds to 75% of net income, which in turn is if you express it After tax, it's 63% after book tax or after pay tax, I mean, 53%. And that is the NOK 3.77 per share. We have also had a strategic acquisition in the quarter, which is the Skoda based Telepath, which is an extension of Santander's business, and that business is now being consolidated from the 1st July, meaning Yesterday. And all paid for and all set. We've taken a little bit more about the acquisition of Telepath. It enables, especially Santander, to establish itself as a national player. We are now present in Stockholm, Gothenburg and the Malmo region with our own companies. And this, of course, gives good coverage Or what we are trying to do with Samsung. It also gives possibilities to increase quality as we've talked about that before. We're going to do quite a lot of things going forward. Foursize free transportation is definitely one of those. We look into the acquisition itself. It's so that Telepath We have had a tremendous growth during the last 4, 5 years. And the CAGR revenue have been approximately 67%, which is, of course, very good. And they now have sales of SEK 350,000,000 EBITDA of SEK 60,000,000. And the normal contract portfolio is Around the 4 years that we operate the assumptions on those. The purchase price, we've been But besides Kurdistan, we bought the company for SEK 150,000,000. And there is a potential for earn out considerations up to The SEK 45,000,000 over 3 years. That's, of course, also so that we want to keep the people In the company and so on, which is also within these earnout factors. Novima is now 100% owner. And we think it has been quite an attractive price for this company as it's a clear market leader in the region and that we see that we can Develop the business together, Binodin. We can just also conclude that Yes. Vospruss have been doing really well. We have been using also Vospruss into the test station business. And basically, that company is repaid within half a year. If we go then to the contracts, we have been submitting 900 and Just above 900 vendors for buses during the first during this quarter Or this is actually for this quarter. And we For the quarter, we still have pending a little bit less than 200 buses and announced have been 7 19 buses. Out of those 7 19, we have won 300 buses. And as you can see, there is 3 0 The 7 buses that we that has been announced, so we have 163 Competing buses, that means that we must have lost something. And yes, we did. We did not win the Uppsala contract, which contains about 170 boxes. But we have more or less covered for that. And If we just take it forward into the quarter where we are now, the pending buses have also been decided and concluded And with the buses, the 67 that I just said was the toll had unmanaged motor buses that we won. And actually, the 100 and 27 buses was buses around Wekha in Sonam that we didn't win. And the difference was quite huge. So I'm not too sad about that, I usually say. But that means that we, at the moment, are Minus 7 buses, if we would add the 194 buses to the announced buses. So it's more or less breakeven, and we have won as mainly as we have lost. And that includes and also the Uppsala or Uppsala land, U. N. Traffic, which contained 170 buses for us. And for the year, it's still remaining more than 1500 buses. Out of those, of Of course, the Stockholm contracts being the most important ones. And the turn in of the tender has been postponed until August. And then the normal process takes on after that. So we will have, I think, a decision on those At the end of the year, something like that. And then traffic will start a little bit later. If we look at the changes during the period, it's not much to say about that because it's 0. We haven't started any buses and we haven't ended any buses. Average weighted contract, 8.8 years. Average weighted contract age, 5.4 years. And if you divide those 2, You get a maturity rate of 61%, which is a little bit over mature, but lots of contracts Coming up, and we're changing, I think, rapidly on that going forward. The average fleet Age is 7.4 years. If we look into the Expiring buses during the year now, maybe the year 2021, 2022. We will have 412 buses expiring. Then we should have noted again that SS Montelje has not been decided yet. It's appealed to the Hoekstad Waffen system, not only by us but by a few others also. So we will see where that is standing. So that verdict is not given. It's decided But it will be evaluated for a court case in Hoekstad and Rothenbergenselt. I think that answer will take about 2 to 3 months before it's decided, if it's going up there. If we look at the Traffic starts that we have, then they are 321. And out of this, We had in 2021, 199 buses are new buses and the absolute majority 190 7 out of those 199 new buses are electric buses. Not that much more to say, I think, about This picture. Okay. We reported a net Sales growth of 30.5 percent for the Q1, and that's corresponding to an organic growth of 29.1 And this was primarily, as Magnus already mentioned, a result of continued strong performance of Samsung's COVID-nineteen related business, Positive contract migration effects from contracts started last year in Sweden. We have retroactive revenue of SEK 35,000,000, And we also had unusually low revenue last year as the pandemic adopted agreement in place in Q1 last year. And in addition to this, acquisition added 2.2% to the growth in the quarter, and this relates To the company's Jyoti Bois and Koebus, both acquired end of last year. Tiela Pass will be consolidated from 1st July, So that's not yet been included in the figures. That increased EUR 166,000,000 in comparison to last year. And the drivers for this were again the performance of Tantan, pandemic adopted incentive agreements in place this year, the retroactive Negotiated revenue. And when we look at the segments, Sweden was the main driver for the increased EBITDA. If we go into the segment, Sweden increased its net sales significantly, And this was primarily as a result of strong growth of Tantan, driven by the COVID-nineteen related business, Positive contract migration, acquisition and that we had no pandemic and opted agreements in place last year. And then we have the retroactive The business in Sweden was also significantly higher than last year, and this was So driven by the Samsung COVID-nineteen related business, pandemic adopted agreements in place and that's to active revenue. Looking at Denmark, both net sales and EBITDA was lower than in the same quarter last year. And the main driver for this was Negative contract migration effect. And for net sales, we also had a negative currency effect. Net sales in Finland was lower than last year. But when adjusting for currency effect, We saw a small net sales growth in the quarter. Gross net sales and adjusted staff were negatively impacted by reduction And in traffic due to COVID-nineteen. Norway had higher net sales in comparison with last year, driven by growth in Perfect. And in addition, we also had a positive currency effect. This stuff in Norway was lower year on year, which was primarily The information regarding the development of the results year to date. And if we start with price and volume, It's the main driver to both increase in net sales and the ASP adjusted. And this is primarily driven by the Strong performance within Samsung and the high demand for Samsung's testing station. In addition to this, we saw positive contribution from having pandemic adopted the contract in place, so that's driving revenue and acquisition. And when looking at contract migration in the quarter, we had a positive effect on net sales, but negative on EBIT adjusted. And this was primarily from contracts that started last year in Sweden. If we look at other, These items include a negative effect of SEK 30,000,000 from a revelation of buses that's available to sales due to reduced commercial traffic related to COVID-nineteen. Cash flow from operations Significantly strengthened due to increased earnings. 2, the cash flow for the quarter was still in Q1 last year, That was mainly due to that in Q1 last year, it was posted because we raised A loan of SEK 200,000,000 connected to the Samsung acquisition. And we also this year have a bit of higher amortization due to the bank loans related And we also have a negative working capital swing compared to last year. If we look at the investment, in February, we conducted a Tax issue, as Magnus already mentioned. And during this quarter, we have used that for the electrical buses in Malmo. And out of the total bus investment in the quarter, 96% are related to electrical buses. We have a cash position that has increased to SEK 1,200,000,000. The equity ratio of about 18% and net debt to EBITDA at 2.3%. That is below lower end of This gives, I think, a very strong start to the year. We have some subsets performing On high levels, we already now know that Q2, which sometimes is going to be Pretty good also as society is keeping a high level on testing. And We know that we are running the 200 test stations, as we say now, but that is There are actually 340 test lines. There is no test station out of these 200 plus test stations That are being closed during the summer, but there is a small reduction on the test line. And by test line, We mean that it's how many rows of cars that could come forward during their testing at the same time. And it could be 1, 2 or 3 lines. So a test station of 3 lines is, of course, bigger than a test station of 1 line. And the message is that this is continuing on a high level even though We have some reductions in the biggest test stations. Into the quarterly figures, just as Daniela said, we need to take into account or you need to take into account also that we have a revaluation Of the commercial buses in the group. And that's partly because they have become a little bit older, and there has been very little commercial traffic During the year and during the pandemic, which is actually SEK 1.5 billion now. And we partly see a possibility to renew these buses That's the reason also why we have written down the value of the buses that we have used. I think that's a forward leaning measure in what we are doing. We are also Continuing our growth during the quarter, 29% organic. It's, as I said before, basically a little bit due to the weak comparables that we had before also. But the ridership in the original traffic is actually coming back. We faced numbers during the winter and partly into the Q1 also. That was down to like 50%. So we can already now see that the figure is starting to get close to 70%. And we ended last summer We've actually and part of the whole team also, we have 85% of normal Passenger figures before it went down again in the second wave of COVID that Became the mid October, I would say, last year. And then ended up in basically the 50% Beginning of the year, just as it was in March, April 2020 or at least in April, May 2020. So we see a clearly positive trend in the ridership, and that's, of course, good. I said before that I believe that when the pandemic is in a stable situation, I don't think you could really say that yet with the delta versions and so on in the pandemic. But when it is a little bit more stable, then we will have About 6 to maximum 12 months before we are up to full speed again with passengers and everything. We have had several significant contract wins in the quarter, and we're happy for that. And they are, As I can see it on good earning levels, we have missed out on the one that I told you about, Uppsala. And that gives more or less an even score so far for the quarter if we also count a little bit into this year. And there are things, of course, that are moving and so on the whole time. But I feel quite confident We also have reinstated dividend that the AGM has taken decision on, and that is SEK 3.77 per share, and that has Already been paid, corresponding to 75% of net income. Now operator, I think we are ready for questions. If there are any, we certainly hope there are, if there is. Thank you. Ladies and gentlemen, we'll now begin the question and answer session. So your first question comes from the line of Erik Paulsson from Nordea. Please join Erik. Your line is now open. Hi there. I have three questions. I Sorry for the first one. So you write about in your report and also state here that Q2 will also be strong in your view, But it's hard to predict what it will look like as for now. But can you give some more guidance regarding Q2 now as we have seen now that you have Had quite good quarters in terms of testing, etcetera. What should we expect now for Q2? I think we won't go with the exact numbers, But Q2 will be on the strong side definitely. And what we refer to when it's a little bit more difficult To say for the future, that's the full year and so on. We are quite sure that Q2 will be a strong quarter. And How strong? It takes too far to say. But if we say it, it's I mean, it's we're pretty certain of that. As I basically or we basically know, and that's what I've said that the testing is continuing on a high level. And as we have now reported in the report, we have corrected a little bit, which is also on our side actually, and it That's been changed now that we are getting paid for the test stations. We are not getting paid for Each test that we are doing, there has maybe been a little bit of a misunderstanding on that. But It makes the case even more firm that we are getting paid for the test station. And To be even more correct, we are getting paid for the test lines, I should say. So we know that there is a small reduction or there is a reduction In the test lines, but all the test stations are still there. Our society wants to keep a high A high level of testing. And that's actually my second question. If we could get a number of the Test lines at as it is now and the reductions here during summer. Test lines plus And that then it's a few plusminus, but 340,000,000 approximately. And the test Stations, meaning the physical places where we are testing, it could be one line, two lines or three lines. Those are 200, plus 200 places around in Sweden. And the reduction now during summer here, what do you expect in terms of test line? The reduction is it's On no physical test line or I mean, on no test place. So we remain in every Quarter of the country, if I say so, in every city and in every village where we have been. But there is a little reduction Between 10% and 20%, I could say. Okay. It's a test in line. Yes. And my final question is regarding you talked about the SL Nortel contract. And I was wondering if that Includes the double decker buses that you have been running for quite a while regarding the incentive contracts there. I think it's like 676 line or something. It does not include that. Yes. You're quite on the spot there. Yes, it includes the double vector from Nautelja to Stockholm, the 767, I think it is, just as you said, It's included in this sub contract, definitely. But also the city traffic, if we could call it that, in hotelier and the lines around hotelier. And I get the impression that, that double decker line that has moved from Stockholm to Nautelja with quite good, So to say, capacity, is hasn't that been quite a good profitability for you? And if you lose that out and it could be a Start loss in profitability for you. We have other contracts that are also good, and you can say that this is exceptionally good. But I mean, of course, it has been it has not been a loss making contract, and we don't have any loss making contracts, by the way. But we don't really state every single contract on what they are and so on. But it's a good contract. But there are also other good contracts. And this is Getting to the Hoechstater Walsenstunden, I mean, our argumentation here Is that we need to find out how much a PTA can steer They want to be in the contract, meaning that in this case, it was very Randomly selected, we got into the second and the third round in negotiations of this contract. It's quite common That we have negotiations when we have a tender process with PTH. But that needs to be defined how that is going to be done in the future, To be a little bit more specific about this one. Okay. Thank you very much. I get back into line. Thank you. Thank you. Next question comes from the line of Johan Dahl from Danske Bank. Please go ahead. The line is now open. Yes. Thank you. Good morning, everyone. Just a question on the request For quotes that you get currently from the PTAs, sort of does that reflect in any way Change sort of expectations on travel habits, etcetera. I'm just wondering how much more sort of how much wiser you guys have become Regarding long term effects of this potentially changed traveling habits? The tendency is that we get a little bit less of incentives into the contract compared where it used to be 5, 6, 7 years when we won, for example, Sodertelje and some other contracts in Stockholm, which are 100% incentivized Because there is more uncertainty at the moment of what is the normal ridership. And an incentive contract works usually so that we have a base here where the level of measurement is established. And of course, the PTAs are a bit scared for having the lever level measured At the moment, because there is low ridership, and then it would be easy to increase the level of ridership. Yes. So that's definitely one tendency. And there are maybe some other things also. So we are, of course, corresponding to this. And but I think in general, it's quite normal except for this. So PTA is sort of request from you guys to submit tenders for pretty much similar volumes looking forward? I would say that there are a lot there are more there are also contracts that have been postponed because of Well, the uncertainty of the pandemic. I mean, you could say the 2 vessel contracts in Stockholm, Lundin, Buchalka, Nakkavarend, which are 2 of the major or biggest contracts in Sweden, actually. They have been postponed more than 4 years. So that's one issue also, but it is about how the uncertainty leads With the ridership at the moment. And now I think that this is going to proceed. We're going to turn in everyone is going Turning in, there are tenders in August. There are some specialties. It takes too far to go into the details Of the contract or the tender formulation. But there are some changes in how, In this case, Edsel wants to run their incentive contracts, but there are still incentives in the contract. Okay, good. And also on this sort of testing business, and I'm sorry to dwell on this, but it seems to be the biggest delta in the report versus last year. But Just to be perfectly clear, is it that you're you've got a fixed remuneration per testing line, I. E, you would be actually gaining from having as little testing As a practical testing is possible due to sort of low variable cost, is that sort of the pricing model that you apply? And secondly, Beyond Q2, what's your visibility here in terms of readiness and availability of testing lines and hence your income from this area? If we start with the first question, it's what I stated. I mean, we get paid for each test Test line that we have opened, meaning test station. We don't get paid for each test that we do, meaning that we have a better coverage On fixed cost. Then maybe we have I mean, partly explained before and what You have invested us to say. So I just want to make that clear that we are getting paid for each station and each test mine. And then I won't go into details of how the fact that we're getting paid and so on. But it's more covering fixed costs, As you're saying. Obviously, it's not I don't think it's more it doesn't take too much to say that Testing have gone down a little bit more than I expressed that the test reduction or the test station reduction It will be for the summer. And I just said 10% to 20%. The actual testing for the last I mean, maybe starting May or something like that. I think in March, April, it was quite a lot of testing still, And we had a lot of contamination and so on. But obviously, when people get vaccine and so on, the testing will go down a little bit. But for the next quarter, we can probably say that we are staying with a number of test Physical test stations, we're taking down the test lines a little bit, which is a little bit less Then the testing is going down. I hope that's clear. Yes, just so I get it yes, Pepe, just so I get it right. So Maintaining readiness is one thing, but as testing actual testing goes down, is that positive for your profitability then? Is that correct, understood? No, I shouldn't I wouldn't say that it doesn't really matter, I would say, because we are getting paid per test mine and test station. So we don't have variable cost into this in the same amount as if we would have Being paid for each test. So we keep up the readiness for the society for more testing. And Of course, there is a little bit less administration if we have the a lot of tests instead of just a few tests. But I mean these test kits, they don't weigh too much and then they don't take too much space. So the transportation and the logistics that we do with this test doesn't really matter if it's One test or 1,000 tests, if you get what I mean. I get it. Very clear. Thank you so much. I'll get back in line. Thank you. Next question comes from the line of Johan Sundin from Carnegie. Please go ahead. The line is now open. Thank you. A few questions from my side as well. The first one is on the retroactive revenue. Now we've been into this pandemic situation for over a year and you have been reporting retroactive revenue for, I think, 3 or 4 quarters in a row now. How much lower are, so to say, the run rate contract pricing in your Pandemic adaptive contract. So if you should one look at the retroactive revenue as an Extraordinary thing now? Or is it just one thing that compensate for the lost revenue in the kind of this quarter or so? Or What's the lag? Because when you started to renegotiate contract, you said that you renegotiate for 6 or 9 months. Now you should start renegotiating the second time and so on. Yes. There is times on this 3 months up to 12 months, as we So we have some, I think, will be even longer, at most around 6 months. And that's why we've had to come back To the negotiation and to the retroactive income sometimes because we might have had one contract That have ended. And when the contract have ended and we don't have any firm agreement with the PCA, then we book The actual amount of passengers boarding the bus, if that's the incentive, which is the incentive, which is, Of course, this is the most important one, the difference. This retroactive income could never be a one off, that I must Fairly safe. Because we are already and we haven't stated how much, and I won't say how much either at this point, how much we are losing Because we are losing, and we have said that a bit before. Or I don't know if you could say lose, but I mean, we are taking some of the hit In the incentive contract, as we have the ridership, which is much lower than What was intended from the beginning. And then we make these contracts, the COVID contracts, as we say. And then it's stated In the percentage, and I won't say the percentage either, on how much we get paid for. So that incentive contracts Turns in more or less into the production contract, but obviously with less than 100% On the incentive that we thought or was intended to have. So you're right in the sense that the core business when it comes to PPA business and public transport With the ridership of well, we've been down to 50. I explained now that we are costing 65 or something. We're getting up $70,000,000 last summer, we were up to $85,000,000 And I think that in the 6 months to a year, we will be back to this 100% It's taking a hit. And that's why, of course, the Southwest business, which is completely different business from what we have been doing before, Have been hedged to what we are missing out on the incentive. So there is a lower result in the normal Contractual business that we have on. So your description and your question, how we should phrase It's in the right direction, but it takes too far for me to redeem the figures. Yes. But if we phrase it like this, Are you overcompensated in this quarter by the retroactive revenue? Or is it if we had the normal So the state should have a new We are not overcompensated. We did say the number, didn't we? The $35,000,000 $35,000,000 that was basically one or maybe it was 2 contracts Yes. That we have been dealing with for a pretty long time. I think I'd say also that for next quarter, there will be Most probably, it's not signed yet. Most probably, it will be signed another contract That expired like 2, 3 months ago. And we have had the negotiation now and so on. So there will be Also that I can think of 1 contract at least, not more than 2, I think, for the next quarter also. So something around some $20,000,000 to $35,000,000 should be expected in retroactive revenue for the next quarter as well It would be in that level. Great. That was very clear. And then also Norway, I noted that you wrote that you have a lower index effect due to Your cost in Norway from last year was lower due to COVID. How long will this persist? Will we have now during the entire This fiscal year, lower kind of revenue base in Norway and say if passenger volumes increase, should There will be a time lag and pressure monitor. In Norway, it's not actually incentive contracts because they only have a production contract. It's the interpretation of the interest rate index, which is a little bit unfortunate, I would say. But Rutger, who is the main PTA for us in Oslo, have made this invitation, and we are accepting that. So it's about in Norway an interest rate increase before we get compensation on that. The interest rates have been Quite low, and we're taking a small hit on that. And you could say that we're not Taking this too far now, but we would be compensated going forward when the interest rate is are increasing. Okay. That's clear. Let's see. I have Another question, that's regarding your tax rate, paid tax rate. How can It was a few it was some time since you commented regarding your How much tax you will be able to pay? I know that you rearrange your financing structure, should you have a favorable situation for Another few years, but when should we expect that you should be forced to start paying tax in Sweden? I mean, in Sweden, if you look at the tax loss carry forward, we have some We're almost just at them. But as you mentioned, we have this new EU tax regulation from 2019 That we're able to use tax depreciation times over only 5 years, and that enabled us to further then delay This entering into a taxpaying position. But the effect from this depends on the level of investment going forward. So we have not We have not made that forecast yet, so to say, because it can vary between the years Going forward and depending on how much investment that we have. Sorry, Peniela. My headphones, the battery died. The last 10 seconds, I can please repeat that. That's I don't know where I missed you, but I mean this new EU tax regulation from 2019, It we have the possibility to make tax depreciation the tax depreciation times over only 5 years, And that enable us then to further delay when we enter into a tax paying position. But the effect from this depends on the level of investment Going forward. So this will vary between the years depending on the level of investment. And next year, We'll probably be we'll probably have had a lot of investments and then that effect the situation. But we have not made a forecast as we have published regarding this. Okay. That's also very helpful to know kind of the how it works and What one should take into consideration? I think That was my questions. Thank you so much. Okay. Thank you. Thank you. Thank you. And a follow-up question for Mr. Paulson. Yes, thank you. Yes, I was just thinking about Here, Q2 again, and you're talking about a good development, etcetera. Is it so I mean, if we look historically back in time, now it's a special situation with the Testing and such. But if we look back in history, it seems like Q2 has always been slightly better than Q1. How should we think about the sequential improvement in earnings before tax comparing Q2 with Q1 here? I think the seasons are, as you say, a little bit offset. Normally, Q1 is probably at the weaker quarter that we have. No, Q4 might be. And Q1 is the 2nd week. And then Q2 would be the strongest. Q3 will be the strongest, of course. Yes. And Q2, the 2nd strongest. That's the way it normally is. I think that's offset a little bit at the moment as we have other parameters into this. So Q1, Q2, I don't think I think We stay with that what we have said, and that is that we believe it's going to be a strong quarter. The comparables for Q2 are maybe a little bit better than Q1 at least because they were very low. Maybe you have to look into that. But still, there are it seems to be a good quarter. I mean, this year, we will have the strong 1st half year. And the second half year, you will probably see a bit of more normal. We have told you also before, I think, that and that you maybe have been all of you are a little bit missing on that, that This year, the first half year, it's a strong report. And the second half of the year gets a little bit More compatible against the figures also that we had last year. Of course, depending on what's happening in society and what's happening with ridership and Everything is a bit more uncertain, but we are confident in what we are doing. And we think we have a good business and everything. So don't misunderstand that. All right. Thank you very much. Sure. A follow-up question for Mr. Sundin, Carnegie, please go ahead. Thank you. Sorry, I come up with another question. This is regarding your M and A strategy going forward. What Kind of I know you're widening your target range a bit and start looking at this special transport companies. But how what kind of company should we expect that you look into? And How big of a shift of business model will this make? Were you, for example, looking to emergency traffic, for example, ambulances or fire safety And so on? Or are you will you stick to this kind of hourly transport and so on? It takes a little bit too much To say the strategy going forward, I guess, but I think we're looking broadly. And Don't forget that the contractual traffic is also a place where we are looking for Teasing businesses and so on. And of course, a lot of companies have had problems now as the commercial traffic has been Very weak and maybe also for other reasons. So I think that there are quite a lot in there and we'll see where it lands. Of course, the special traffic or the Samsung's kind of business is something Where we are looking at and maybe expanding in some direction. It might be the direction that you're Imposing here or talking about, but it takes a little bit too much to say exactly where we're going. But one should Expect you to stay focused on wheel based transport, not going to rail or boats or so on? No, primarily wheelbase and primarily in the North. And that's what I said for 4 years. At some point, that might change, but I don't think it's fine to change it yet. That's the precise thing. Good. Thank you. I can come back with the discussion another time. Sure. Thank you so much. Thank you. Thank you. No further questions at this time. Please continue. Okay. Very good. Then we thank you all for participating and have a very nice summer. See you next time.