Welcome to Yubico Q1 2024 report presentation. For the first part of the presentation, participants will be in listen-only mode. During the question- and- answer session, participants are able to ask questions by dialing pound key five on their telephone keypad. Now, I will hand the conference over to CEO Mattias Danielsson and CFO Camilla Öberg. Please go ahead.
Good morning, everybody. Sorry for the delay. Welcome to the Q1 report presentation for Yubico. As mentioned, it will be me, Mattias, and my colleague Camilla, Yubico CFO, presenting today. We'll start with a recap and an overview for those who are new to the company, talking a little bit about Yubico and our business, and then we'll get into the updates for the quarter. Several of you will recognize this, but at least we've updated the numbers, so some of this will be news. What hasn't changed is that Yubico is the proud supplier of YubiKeys, solving one of the major threats in the cybersecurity landscape, by providing a strong multi-factor authentication, phishing-resistant multi-factor authentication. Our core product is the YubiKey, so we're a hardware-based company.
In spite of being hardware, a lot of our focus is, of course, on the software provided on the key and connected systems. Because of that, we've been able to maintain healthy margins, historically. Camilla will talk a little bit more about how the margin definition has changed according to IFRS. As you can see, on this slide, we are at about 80% gross margin. Last 12 months, we posted approximately SEK 1.9 billion in revenue, and what we are most proud of is, of course, the fact that we address a major security problem. Those of our customers that have implemented the modern protocols of the YubiKey have experienced zero, exactly zero account takeovers. We'll talk a little bit about our product shortly.
The second thing that I'd like to highlight is that we have an excellent set of customers and loyal customers. We've sold our solution to more than 4,500 enterprises and government customers. We have sold and deployed a little bit more than 30 million YubiKeys, and we boast some 30% of the Fortune 500 as our customers. So there is a clear focus in our market, our go-to-market on larger enterprises and government agencies. And today, Yubico has a little bit more than 400 employees. I think we ended the quarter with 438 employees. So let's do a little bit of a deep dive on the part about our customers.
On the next slide, you can see a subset of our customers, and if you look at these brands that have agreed to us to being public references, we started out with a very heavy focus on high-tech companies working with some of the industry leaders then. The fastest growing sectors today are financial services and government, different government agencies across the world. So we have a very broad set of customers, but with a focus on large enterprises and some of the major household brands that you're all familiar with. And if we move on to the next slide, we've been able to expand our product footprint continuously. If you take, I talked earlier about the Fortune 500.
If you instead look at the Global 2000, i.e., the 2,000 of the largest public companies, we already work with more than a quarter of those. However, in most cases, we only work on a very limited use case, so our average penetration among that customer base is relatively low. We only have a subset of those who have deployed YubiKeys to more than half of their employees. So there's definitely a lot of upselling potential within our existing customer base, and we do have very loyal customers. This is one of the updated numbers in the presentation. If you look over a five-year perspective and look at our major, biggest customers in 2018, you could see that the annual average repurchase rate is a full 119%.
This means that if a customer had bought 10,000 YubiKeys in 2018, the average customer bought 11,900 in 2019, another 11,900 in 2020. So that's how you should interpret that number. And this, customer loyalty exists on both of our business models. The majority of our sales, some 80% of our sales, is still in perpetual mode, i.e., that we sell a YubiKey with a perpetual license to use it. But about 20% of our customers buy it on a subscription basis, which kinda by default means that there's a recurring revenue, but we see a lot of repurchases also from our perpetual customers. And as I mentioned, we started out with a very heavy focus on tech, working on the leading players in that industry.
Since then, we've expanded both across industries and geographically, and now cover a much broader set of customers. So that's what we're very proud of when it comes to customers. The second thing I'd like to highlight on the next slide is, of course, our product and the problem that it solves. Fundamentally, what we're selling is a key. There needs to be a lock at the other end, and we've invested a lot in making sure that our key unlocks all the relevant locks in an enterprise use case,. more than 1,000 different applications today support YubiKeys. Initially, it was us reaching out to individual applications and making adoptions so that it would fit into all these different locks.
To an increasing extent, it's instead we learn after the fact that different applications have now provided support for YubiKeys because their customers want to be able to authenticate in the same system, most convenient way. So this is really a key to our success, that we have a Swiss Army type key that fits into all the relevant locks for an enterprise environment. That's the short recap on some of the highlights of our company. And if we then look at the highlights for the quarter, we, of course, are, Camilla will explain in more detail or go into the details of the numbers, but of course, we're very happy about the growth that we're seeing in bookings.
We saw order booking growth of about 65%, year-over-year in Q1, and it came from a wide set of customers across different industries and geographies. So no individual orders really stood out, but it was a large set of mid and large-sized customer orders. We keep having a high profile as an industry innovator. We highlighted already on the previous call that we got recognition in Wall Street Journal other magazines, and then received another recognition, thereby being recognized by Fast Company as an industry innovator, fast-growing company. Another thing which is worth noticing when we look at the report is the conversion to IFRS accounting. I won't go into details there, but I'm sure Camilla will provide more details.
Another thing which doesn't really relate to the company's performance, but it's worth noting that during the quarter, specifically March 18th, we had a lockup expiration for the previous shareholders in Yubico AB. As you remember, ACQ Bure in September, in 2023, and the first lockup expired after six months, approximately March 18th, which means that there is more liquidity in the, in the trade. And the final lockup expires on September 18th this year. After the quarter, which is, of course, after this quarter, but two other things that I'd like to highlight is that we released an upgraded firmware.
We announced it on May 6th, and it will be available at the end of this month, which means that there's additional features and making sure that we stay one step ahead of the competition, of course, most importantly, that we provide the best protection there is for our customers. So that's important for our long-term sales growth, of course. On a more practical note, today marks the day of the first AGM for Yubico as a publicly traded company. So please feel free to join. Well, I think you need to pre-register, but, but we're gonna be meeting with shareholders who have pre-registered today, this afternoon. Yes. And with that, I'll hand it over to Camilla, who will talk a little bit more about the financial numbers.
Thank you, Mattias. Yes, so the quarter, we think it was a quite good quarter. Mattias commented on the order bookings, we have a very good growth. Looking at the next phase, we see a growth of 20.4%, and this quarter, we have a very low impact from local currencies when we measure the growth, so 20.5% in local currencies. Looking at the gross profit, we have growing the gross profit a little bit more than the net sales, so thereby also we are improving our gross margin a little bit. Gross margin of 80.9% versus the 80.1%.
To note here on the gross margin is then that as we have changed our P&L format into a functional based format, that means that we are splitting up the P&L on cost of sales, R&D, sales and marketing, and administration. And thereby, we now in our gross margin have also allocated the indirect costs related to supply chain, manufacturing, and so forth. So that has impacted the gross margin on around 5%. So if you think recognize this as a pretty low number compared to our previous reports, so that is the fact. In the report, on that note, so in the report, you find the full details about the conversion, both on the IFRS transition and also this functional P&L change.
Just a short comment on this transition. So, there are just commenting on the office leases, which is something that, I guess, most of you expect to see effects from. So that is implemented, and it's very, very small effect on the P&L. You find lease liabilities and assets in the balance sheet, but on the P&L, it's very low. The other IFRS which you can think should affect is the capitalization of R&D. We have done a thorough analysis of that, and of course, it will affect. But historically or where we are now, we haven't found any development projects that are actually fulfilling the requirements for capitalization,.
That's not that we're doing things, but depending on where in phases we are and where, where, what we are actually doing, we are spending quite much on continuous upgrades, maintenance and things like that. But then it's more exploratory and early phases when it comes to R&D. So right now, we don't have any impact. This does not mean that we will not have any impact in the future. So there will probably come projects that will be capitalized in the future. So that was a side note on the IFRS, but on the gross profit where we are here. So it's stable. And then looking at our profitability, we are satisfied with seeing that we have a positive effect in the profit.
The EBIT margin is going up from 17.6% - 18%. Small steps towards our long-term target. On the ARR side, we have been growing the ARR year-over-year with 26%, so now running on a portfolio, SEK 277 million. We will look deeper into that later in the presentation. A quick deep dive in the bookings, where you noted that we have very good growth, 65% in the quarter to SEK 579 million. And this growth come from a good spread of customers, and both on geographies and on different segments. We continue to widen the customer group, which gives us a very good foundation going forward.
Notable is that we have a long-term financial services contract for a subscription. It's actually a five-year subscription, which is affecting the order bookings now in Q1, but will affect the ARR in Q2, because the contract is actually starting in Q2. And yeah, subscription bookings, I said, is then corresponding to 18% of the bookings, is very much higher than last year, 7.7% of the bookings. Looking then at the net sales development. We're continuing a good journey here. Notable is when you read the report, you will see that Americas, the region Americas, looks like it has been growing very much compared to the first quarter last year.
I would rather say that the Q1 last year, Americas was unusually weak or slow. And the split we have between the regions in this quarter is more representative and also more in line with what you saw full year 2023, so this is more normal. On the ARR side, you see here the dip we had in Q1, and this relates to a large renewal we contracted in December, but is starting to affect ARR in January this year. But we already see, as I said, that we have good order bookings on the subscription, so this ARR development will turn upwards again when we see Q2 coming out.
And we see also, we generally see a good interest for our subscription offering, and, we'll see, that this will continue with a positive trend in the future. On the profit side, we, as said, we have, when you look at the P&L, you will find this new format, where it's functional based instead of cost by nature. We think, we are developing well, upwards, as said, despite that we actually had quite high costs related to commission. As we commented in Q4, if you recall that, we had, also, when we had high order bookings, we have high commission costs. This is also the fact in Q1, as we're taking, the commission costs when we close the deals.
For those large, larger orders that we get, we will see that the revenue is coming through, and thereby also the profit coming through, during a much longer time. So we will see effect from the order bookings in here now in Q4 and Q1, also being visible in the net sales and in EBIT, both in Q2, but also during the second half. We also had an unrealized currency effect of +13 million SEK here, and that is related to that Yubico AB has quite much U.S. dollar in the balance sheet. As you have noted, we have a quite good cash position, which is also then contributing to this, as we keep quite much in U.S. dollar.
Short on that, and then looking at the cash flow. So we had an operating cash flow of SEK 33 million positive in Q1. Last year, if you remember, we had a super boost in the first quarter related to large amounts of invoicing in Q4 2022. That is why it was so super high. This is more normal, but we also continue to see the buildup in the inventory. So we invested SEK 67 million more in the inventory. We see now that we'll—this will flatten out, so that we are, the growth we have in net sales will, yeah, be more balanced towards the levels we have in the inventories.
But it's important for us to have good levels here, as you know, both for securing our ability to deliver towards the customers and our high demand we see, and also securing the availability of components. But we are there in a good position. We also had a strong ending of the quarter, and thereby also having strong billing. So that is also contributing to a net negative change in the working capital. We have a good cash position, cash and cash equivalents of over SEK 577 million, and a net cash of SEK 541 million. At the end of the quarter, we have a small loan of SEK 35 million towards a credit institution, but here you see also the effects of the IFRS conversion.
So in interest-bearing liabilities, we now also have the liabilities of the office leases, as you see here. So half of what we have, approximately, in that item, is related to the offices and not then a real debt, so to speak. Yes, so that's on the numbers note, Mattias, so leaning over to you.
Thank you, Camilla, and as always, there will be an opportunity to ask questions at the end of the presentation. Something I would wanted to highlight as we talk about market conditions is that, as I think you're all aware, there is a very high level of cyber threats out there. Recently, a report was released by the International Monetary Fund, highlighting the importance of cybersecurity for financial institutions. And this is really what we're seeing translating in high level of interest and strong sales growth to financial services, effectively.
Because there is both on the individual bank and financial institution level, there's, of course, risk associated with the fact that there is a high pressure of phishing attempts and other cyberattacks trying to access individual customer funds and information. But also on a systemic level, there is a threat, because, as you know, there are in several markets very high concentration, some cases, oligopolies effectively on the bank side, which means that if you see a major cyberattack on a financial institution, it has systemic effects, which is actually a threat at the macro level or to society.
And because of this, IMF is issuing recommendations on updating cybersecurity policies, ensuring that you have good governance, and of course, that you have a solid stance on when it comes to ensuring that you invest in cybersecurity measures to counter the attacks. And this is driving a lot of our growth. Another indication of the importance, the growing importance, of cybersecurity for financial institutions is a recent directive issued by the White House, very much echoing the conclusions that IMF has shown the importance of keeping a high stance when it comes to cybersecurity within this important sector. So I think there is plenty of room for growth in this sector and others.
You could, to some extent, say that, if the initial targets were governments and tech companies, the second wave now is very much hitting the financial institutions, at a very high level. With that said, I think we're in a good position to continue on our journey. As is mentioned in the report, we reiterate our long-term financial guidance, but we feel that we have strong momentum. Importance of cybersecurity, of course, and the fact that we offer a world-leading solution, which is addressing the biggest attack vector, i.e., compromised logon credentials.
We built, as I bragged a little bit about at the start of the call, we built a unique position where we have built a strong product which addresses the customer needs, and we've built an excellent set of customers to grow from, both within those customers and using that as a bridgehead to winning new customers. We have a solid sales performance for the quarter, and similar to the situation in Q4, it's not just one individual order or one customer that stands out, it's actually from a very wide set of customers, industries, and geographies.
As I also mentioned, the vast majority of our sales is to existing customers, and we're able to scale that business and build partnership, long-term partnership with major customers, which is important, of course,. Part of our efforts is, of course, making sure that this is high on the agenda of policymakers, working proactively with regulators and policymakers in the EU and U.S., to establish proper cybersecurity, a proper cybersecurity stance. So a lot of tailwind on the market, and it's up to us to execute on this, and we feel that, we're off to a good start to the year. Unless Camilla has any final remarks, we'll open up the floor for questions.
If you wish to ask a question, please dial pound key five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key six on your telephone keypad.
Okay.
The next question comes from Erik Lindholm-Röjestål from SEB. Please go ahead.
Yes, good morning, Mattias and Camilla. A couple of questions from me, if I may. So starting on the exceptionally strong order growth here in Q1. As you said, this is driven by a wide set of customers, geographies, and industries. What have you seen here at the start of Q2? Is it fair to say that this broad strength is continuing? And yeah, how should we think about the remainder of the year? I'll start there. Thank you.
Thanks, Erik. It's a great question, and as you know, we don't issue forecasts for individual quarters. We remain committed to our long-term financial targets. But what is encouraging, as I mentioned, is that we're seeing a strong sales momentum, and it's not just one customer, one industry, or one geography, it's across the board. I think that's reflecting the importance of both the cybersecurity threat and also that our product is very relevant for this market. So, yeah, I think I'll say we've got really good position for future growth.
All right. Yeah, perfect. And, secondly, I think, you, you said, you said that the vast amount of sales is, is driven by existing customers, but is it possible to, to quantify sort of how much of the, the order growth that we're seeing here is driven by existing customers, upselling, and how much is driven by intake of, new customers?
I mean, what, what we typically see is that over a full year, some 80%-90% is from existing customers, i.e., as we enter a year, we know that some 80%-90% of our sales will be existing customers during the next 12 months. That swings individual quarters. I think in this quarter, we saw a higher degree originating from new customers, and that could partly be driven from the fact that there's a lot of attacks going on, and that typically leads to a quicker deployment than an perhaps a bigger initial deployment than we've seen in the past. But there are no, it's too early to talk about a trend there, really.
Yeah, perfect. And, I think, Camilla, you explained the dynamics on ARR there, but it was down slightly sequentially, as you said. Is it possible to quantify the impact of the renewal of the large contract at lower volumes? And also thinking in general of the renewals that you have seen so far, have they been at lower volumes in general, or have they been at higher volumes in general? Thanks.
In general, I would say they, they have been on higher volumes of the same value of values. This is not the effect we see from this renewal. It is not the normal that it's going down. So it's a good opportunity for us to upsell and increase scope, of course, for all renewals are coming up. I would not comment more on the ARR developments than as we know already now that from the bookings of Q1, the ARR for Q2 will come up in a positive trend again.
All right. Yep, sounds good. That's, that's all for me. I'll go back in the queue. Thanks.
Okay.
The next question comes from Joachim Gunell from DNB Markets. Please go ahead.
It is, like you just said, encouraging to see the breadth into this bookings number. But, can you just discuss the eventual convergence between bookings and the net sales? I think that the main deviation here was the strength on the subscription side, and that obviously will be recognized over a longer period of time. But, the larger perpetual deals, were they won late in the quarter, and then basically just what this implies for Q2 acceleration of net sales?
I would say that, the good order bookings that we had on the perpetual deals, both from Q4 and in Q1, are set up for longer delivery. And they, you will see impact from them both in Q2, but also in Q3 and Q4 this year.
Understood. Perfect. And raising the line of sight a bit here. So there, there's been some several severe cyber attacks here targeting, f or instance, U.S. medical infrastructure here in Q1. Can you say anything whether these high-profile breaches were customers of Yubico, or have they become customers of you after the breach were recognized? And ultimately, how you see this opportunity to translate for Yubico.
Yeah, we, of course, wanna avoid being ambulance chasers, but we've noticed in a number—on a number of occasions during the quarter, that the ambulance are calling us. Let's put it like that. Yeah, I mean, sometimes, customer conversations really get highlighted and prioritized based on that there has been a recent high-profile breach. And because of our, by at this stage, a relatively good brand recognition, we do see quite a lot of incoming traffic from that. Of course, you typically don't change your authentication solution at the flick of a switch, so it does take some time from that initial call until we have a significant rollout in most cases. But yes, it definitely, you see, some reaction when Cybersecurity threats are realized, and then you have a live hack.
Understood. And perhaps on that similar topic, about this new SEC ruling or regulation, have you seen that disclosure rule driving new business for you? Can you just give some color here? But you-- we are seeing some custom-- I mean, some hacker groups are using this as, basically, weaponizing this disclosure rule to highlight this. So has this translated into new business for you yet?
I have only anecdotal evidence that this is driving business, and it has come up, but I can't talk about whether it's that particular regulation or requirement for public companies to disclose hacks, that is the main driver to this. I think it's really kind of the overall threat landscape which is generating. It's hard to single out that as the biggest contributor, but there has been some anecdotal evidence of that.
Great. And then just finally, we have seen how some of the larger cybersecurity players out there are increasingly driving a debate about or around platformization. So, can you say anything about how you envision that, call it, platformization strategy, as opposed to your more best-of-breed type of, call it, strategy in store for you over the coming years?
That's a great question. I mean, we have historically had two approaches. One is that we wanna have one key that fits into all relevant locks, and also that we wanna be a love all, serve all, i.e., that we wanna work across all platforms. Of course, sometimes we work in partnerships with other suppliers to make sure that we have more of a turnkey solution, but we don't want that to come at the expense of working across all platforms.
I think I definitely see that trend in some cases, and you even see kind of buildups, especially within the PE sector, that they're requiring different components in providing a fully fledged solution. I still think that our approach of working across all platforms and loving all, serving all is the one that enables us to address the biggest markets. So, yeah, we're gonna continue being best at what we do, and I think that really is so far paying off.
Very sure. Thank you both, Mattias and Camilla, and have a great day.
Thank you.
Thank you.
The next question comes from Predrag Savinovic from Carnegie. Please go ahead.
Hi, good morning. Thanks for taking my questions. Again, congrats, encouraging results, so very, very nice to see. Some follow-up questions on the financial sector. You called this out in Q4, you're calling it out again as a driver in Q1. Is it possible to quantify this a little bit more now that you're seeing orders coming through? And you spoke, you spoke about the regulation, that's coming through on U.S. banks, security, and we, we know a lot of banks are also using very old systems. There's a security liability potentially somewhere in, in every one of these systems. Talking about the systemic risk, on paper, it appears as, as there should be a big opportunity here, and, you know, it, it accelerates from the fourth quarter. So can you give us more detail on this opportunity, if possible?
I'll try to. First, as I mentioned early on, historically, our biggest industry vertical has been high tech. I think, given the performance today, it looks like that's gonna be eclipsed by financial services this year. That doesn't mean that high tech isn't growing, but financial service is growing in importance. And of course, it takes some time before you kind of get to critical mass in an industry, and I feel now that we're at the cusp of that within financial services, which is very promising. The other part, which is again something that we've spoken a little bit about in the past, is that it's important to note that the vast majority of our deployment within financial services so far has been for internal enterprise use.
It's only in a very limited set of cases that we are providing that extra security to the end users,. That presents a huge opportunity, and it's partly up to us to, well, it's up to us to realize that, because I think we're in a. The fact that people are within banks are using our is using our product internally, at least should validate it as, as we enter into discussions about protecting the end users, which is, of course, very close to, to the best interest of both the banks and its, and its customers. So, even if we're seeing good traction, I think there's so much more potential within the sector, and that's so far a very, very limited part of our business, but, but we're gonna have to change that.
Yeah, that sounds interesting. Thank you. Let me rephrase a question you got earlier in terms of new customers. If we think of new customers you gained over the last six months, could you give some color on how much they are driving sales this quarter or, you know, percentage of the net sales in this quarter?
Without disclosing a specific number, because we don't report that, I would say point to one thing, which is interesting. We've seen an additional increasing number of customers that actually go for a bigger deployment day one, either they go not from the typical land expand that we've seen in the past, where they deploy it with a small subset, say, privileged access management users, and then expand from there. We've seen an increasing number of customers that go big early on when they're using our subscription offering, 'cause that lends itself to a planned rollout, where we sign up a commitment for typically a three-year period and start with a small deployment, but already know what the end game looks like.
So that business model actually lends itself to a bigger initial deal, which means that more of the revenue will come from new customers, we're able to scale customers more quickly with the subscription model. Sorry for not being more precise to that, but that's actually from my perspective, an interesting trend.
Okay. Okay, very good. And then I think finally, on the margin, which I think is quite good in the quarter, and it kind of suggests that your scalability of the business can be, you know, quite a bit better than where you're trending currently. And at the same time, you have, you know, reiterated your financial targets. So maybe some debate around the OpEx development going forward, what kind of R&D plans do you have? Because you have flagged there are certain investments that could be of interest. Any plans on hiring more salespeople and so on?
So as Camilla mentioned, short term, this will be a—this Q1, I should say, not this quarter, but the report quarter. Q1 was one where we saw a bigger increase in order bookings than in net sales, and that means that the commission cost would be higher because we take that cost at booking, with some modifications for subscription, but larger part of a booking before the net sales actually hit our books. So that means that the margins are depressed when you see a stronger order bookings growth compared to net sales growth. So this means that we, there's a short-term effect there, which should set itself straight over time.
Long term, the reason why we reiterate our financial guidance is, of course, we could go more into harvest mode if that was deemed appropriate. However, given all the market dynamics, we think that it does make sense to invest and continue to invest our free cash flow in primarily two areas. One is, of course, developers, making sure that we have a more rich product and that we stay ahead of the game. And secondly, developing our sales motion, hiring more salespeople, but also being a little bit more leveraged in our go-to-market effort. So that's why we reiterate. You're right, we could have more, I mean, the business does lend itself to scale quite nicely, but we're still investing in building this market and providing our solution to a broader set of customers.
Very clear. Thank you very much, guys.
Thank you, Predrag.
Thank you.
The next set of questions that I can see are written questions that we got. I'll start with the first one, and that's I don't know if I should read it out loud to make it visible to everyone. "Congratulations for the strong Q1. With the growing identity market in Europe, in the EU, particularly driven by new upcoming regulation, is Yubico planning to complement its offering with software solutions for identity verification, IDV, or ID proofing, IDP, with the various eID scheme currently in development across Europe? hardware wallets could complement this new software offering, accelerating ARR. Thank you." That's a great question. You clearly know a lot about this industry. We talked in earlier reports about the fact that we're engaged in the EU eID wallet project.
Again, that's an open standard, so we wanna make sure that our hardware solution fits into that lock, too, so to speak, even if we're talking about identity here. Again, it comes down to a question of, we wanna make sure that we don't lock ourselves to a solution which only serves a subset of the market. We wanna make sure that what we're offering is relevant, in this particular case, across the landscape, both in terms of applications and countries. So I can't give you a straight answer there. It, to us, it's very important that we offer a solution based on the YubiKey that covers all the relevant markets. And there's lots to be done there. It's still an early stage, and this is not a sprint, this is a marathon.
This is a massively complex project, but we're engaged heavily there, and we wanna make sure that we can support this effort, both because we wanna sell more YubiKeys, of course, but it's also very well aligned with our company's mission to make the internet safer for everyone. And to do so, we need to support identity and the use of identities in a safe way across across different services. More to come there, but we definitely see this as a very interesting market development. All right. Oh, I think we had-
No.
Okay, that was it. Mm-hmm. Okay, we'll, we'll leave the floor open then, if there are any final, oral or written questions. Otherwise, well, thank everybody for, for attending this call. Please feel free to reach out to, to us with any additional questions. Alexandra, our IR person, Camilla, and I would be happy to take any questions, and also hope to meet many of you at today's AGM. Thanks, everybody.
Thank you.