Earnings Call: H1 2019

Aug 13, 2019

Ladies and gentlemen, welcome to the Desk Year 2019 Healthcare Results Conference Call. I'm I'm the Chorus Call operator. I would like to remind you that all participants are in a listen only mode and the conference is being recorded. The presentation will be followed by Q And A For operator assistance, please press star and 0. The conference must not be recorded for publication or broadcast. As this time, it's my pleasure to hand over to Mr. Vicky Smith, CEO, and he said it's Valdez, CFO. Please go ahead, gentlemen. Yeah. Thank you very much. Yeah. Good morning to all of you and welcome to the first half year update call and thank you, of course, for your interest in Deadwana. It's Dirk Lambrecht, and I'm here together as usual with our CFO, Rachel Veltin. During this call, we will refer to our presentation which we have uploaded this morning, and I trust that you have it in front of you. I would like to start with an overview of the key financial figures covering the first half year of twenty nineteen. And therefore, please, I'd like to refer to Slide 3 of our presentation. Thanks to our strong positions in Seating Solutions, decisions and our intensified market activities, we were able to increase our revenue by 1.8% So 706,300,000 systems. In the course of the first half year, we were confronted with increasingly difficult market conditions. The trade conflict between the U. S. And China led to a decrease in demand particularly in the automotive industry. Adjusted for the negative currency effects caused by stronger Swiss francs and the positive acquisition effects of organic revenue decreased slightly by 1.6%. Thanks to our efficiency improvement programs that we already started a couple of years ago and our focus on system critical components we were able to increase the operating risk side to a record level of $91,200,000. The reported EBIT margin reached 12.9%. Adjusted for startup costs for growth projects of around CHF 4,500,000 and negative currency effects of CHF 2,300,000 EBIT reached CHF 98,000,000 on the EBIT margin reached 13.9 percent. The net result increased to 66,200,000 This represents an increase of 5.7 percent to 3.89 Swiss francs per share. Before I dive into the risk side of the two divisions, you can see on the overview on Slide number 4. The revenue split is around 2 1st ceiling solutions and 1st technical components I assume that you know our divisional portfolio well, and therefore, I would like to move quickly to the next play page. Our senior solutions position serves the 3 Global Markets Healthcare, Automotive And General Industry. The connecting element is the fact that our ceiling components are always customer specific and system critical parts If our components do not work properly, the system in which they are installed won't work properly either. At the same time, our ceiling components account for only a small part Example of systems are different syringes, breakthroughs, testing costs, or all types of engines. I'd like to move to the next slide, please. To be in the position to offer our customers industry leading ceiling solutions, we are relying on the 3 strong unique competencies. We are able to develop and simulate appropriate materials for various applications and combining that with engineered Taylor may pass from prototyping to a large scale production. And finally, we strive always for best in class manufacturing processes. Important to understand only if those 3 competencies are aligned It will be in a position to offer the best ceiling solutions. These 3 core competencies are independent of the market end market and form the symmetric foundation for serving the 3 current and potential future markets. Also, we are able to deploy our core competencies and serve our customers with a global footprint of approximately 20 plants on four continents and they all meet global manufacturing standards. This is how we differentiate in the market and how we create value for our customers. In the first half year of twenty nineteen, the Siemens Solutions division continued its profitable growth caused despite the difficult market environment. Revenue increased by 5.8 percent to SEK 479,300,000 rate compared to the already strong prior year period. Adjusted for the negative currency effects and the positive acquisition effects There was a slight organic decline of 1.2%. This figure was impacted by the mix shift development in the automotive industry, particularly in China and the in the U. S. Will face significant sales decline. Turning to a double digit sales growth is a high quality components for selective satellite reduction systems in field of vehicles and the first time inclusion of bins who were nearly able to compensate the sales decline. Demand for high quality health care components from the wireless first line production continued to grow at a double digit rate. And espresso business also performed well. Despite startup costs of CHF3.9 million for growth projects, We were able to maintain operating results at 83,700,000 Adjusted for the startup costs and the negative currency effects of CHF 1,500,000, the EBIT reached $89,100,000, which brings the EBIT margin came in at 18.6%. Raw material prices were stable even a little bit below previous year. The integration of Parkland wins as well on track and both newly acquired companies, create added volume as we have expected. We are moving to the next slide, please. I would like to take this opportunity to give you a brief update of one of our most important growth project. While our new plan for high quality healthcare covenants in the U. S, In the recent months, we have worked internally with our customers' representatives to validate and approve the production capacity. And the healthcare and pharmaceutical industries, the validation of a new plant is a complex and a time consuming process. The interest of our global healthcare and pharmaceutical companies in the new debt pilot plant in the United States is very high. Will record our 1st commercial sales in Little Town before the end of August. After the intensive operation with our customers we are even more confident that our first line production standard represents the highest innovation level. Quality and safety in the elastomer industry worldwide. It exceeds the highest quality standards of the European American authorities and meets our customers' expectations. The 1st line standard is based on quality by design and includes state of the art cleanroom technology, automated manufacturing cells, fully automated camera inspection and a unit washing process. Our new S plant also has a showcase for digitalization at industry 4.0. The production process is fully supported by state of the art IT and digital systems and solutions. And the next step, we will roll out a new digital systems and solutions and other existing plants as well. Our customers will benefit from a higher product quality, safer production processes, and an improvement traceability throughout the entire supply chain. Finally, we will create value for our customers what we're always striving for. I would like to go to the next slide and start with the technical components. The JetViler distribution business was electronic components and products is grouped here. In the online distribution, we provide time critical electronic components of a short term needs of most business to business customers. As a wholesale distribution, we sell home and consumer electronic products to online and offline retail us. Next slide please. Here you can see some interesting key figures about our distribution business. We bring together over 1500 suppliers and over 700,000 customers. The distal model is based on the highest service level in high availability of a broad range of components that we can jointly shift to our customers on a next few basis. Our customers still use a variety of channels to order with increasing emphasis on digital and increasing percentage of online sales. Every day, we have over 230,000 visitors for our workshops and 18 languages. Every day, our distribution centers pack and dispatch more than 12 thousand parcels with an average order value of around 2 100 sales. Profitability is driven by average order value rather than the size of the customers. We are moving to the next slide. In the first half of twenty nineteen, the technical components division make further operational progress in a difficult market environment. The economic conditions in the European market in which we operate Wheaton gradually. 6 lines slightly to CHF 227,000,000. Adjusted for negative currency effects, the organic decline was 2.4% While our distribution companies are still giving up business to consumer sales and allow margins on purpose, Sales are growing with a more attractive business to business customers. Thanks to a strict cost discipline. Operating risk costs increased to US7.5 million dollars and reported EBIT margin improved to 3.3%. The start up cost for the international expansion of Ryals reached 600,000 Swiss francs. And negative currency effects on EBIT level amounted to 800,000. Adjusted for those 2 effects, the EBIT margin reached 3.9%. Fiserv continued its successful international expansion The Italian market is now also staffed with a local web shop and customer support in Italian. After the positive experience on arrival, Disconnect is working on international expansion with workshops and local languages as well. Netis is working intensively on implementing the new single brand strategy. Acquisition of new customers, the increase in the active customer base and the growth of R&D private label will continue to have a positive impact on the business of our distribution companies. The measures implemented in recent years have improved operational efficiency and competitiveness of our technical components division. Of course, there is further potential for development that Foila has decided to review the strategic options for the division including a possible sale. That one last goal is to increase long term success and to create value for our customer and shareholders. The evaluation is in the early stage as the group will communicate more about this when appropriate. So I will hand over to Rachel who is looking forward to provide you with some further information. Good morning from my side. I'm on Slide 13, where you're trying to segmental reporting by division at the glance. Shortly net revenue per in the division ceiling solutions, $480,000,000 compared to 4.53 You see that the EBIT was almost unchanged compared to previous year. EBIT margin was 17.5% compared to 18.5% in the previous year's period. In technical components, 227,000,000 in sales compared to 241,000,000 in the previous year, You see the EBIT at $7,500,000 compared to $6,900,000, which corresponds to a 3.3% EBIT margin. And for the whole group, we can report $706,000,000 in sales, which is 1.8% higher than previous year. At the record EBIT level of EUR 91,200,000 compared to EUR 90,700,000 in the previous year and a very slight decrease in the EBIT margin 13.9 sorry, 13.1 percent or 12.9 percent. I continue on Page 14, where you find the return on capital, the return on capital employed Please note that the ROCE is calculated by dividing the operating results before interest and tax edit of the last 12 months by the average capital employed of the same period. Capital point is $50,000,000 higher than previous year as a consequence of projects like Midu Khan, which are very well known to you. And further investments in automation, especially in Ceiling Solutions. The adoption in ROCE Young Group level of 2.7% results on the one hand from a higher capital employed were 1.3% and a relatively lower EBIT or another 1.3%. This is supported by the individual results for ceiling solutions and technical components as presented in the chart where you can see a ROE for ceiling solutions 28.7% and 7.1% for the division technical components. Well, technical components should remain stable. The expectation for Sealing Solutions short term is a further decrease along the long run, ROCE should return to levels above 30% for ceiling solutions. I continue on Slide 15, where you can see the consolidated income statement. I do not refer further on to revenue, as I explained it already. One of the effects, what resulted in the growth of 1.8% which supported this growth. These acquisitions, which contributed 5.8%. The gross margin is slightly lower at 25.7% compared to 26% in the previous year's period. R and D costs are stable at 2.1% compared to sales, marketing and selling expenses or 6.9% compared to sales and are at a similar level as in the previous year. General and administrative expenses are 5.2% compared to sales and at the same level as in previous year. So that's why the EBIT or as a result, you can see the EBIT margin of 12.9% again compared to previous year. The used finance results due to lower interest expense and smaller currency impacts compared to previous year, resulting in lower financial results. Therefore, EBIT before tax, the margin is at 12.5% compared to 12.3%, which is slightly higher. Tax rate is at 24% compared to 27% due to positive impacts out of acquisitions and improved conditions in several countries like Belgium and the U. S, where tax rate or tax burden has slowed or come down. At the end, you find the net result of $66,200,000, which is a margin of 9.4% compared to 9% in previous year. I continue on Slide 16, where you see the balance sheet where you still can see that the liquidity actually supports our planned gross. Cash and cash equivalents are slightly higher than December It's a plus of 10,000,000 accounts receivable are a bit lower compared to June in previous year. Despite acquisitions, but of course, also as our consequence of the sales level and the difficult market conditions, as Dave explained. Okay. That's year end levels, year end 2018. And you can also see a further increase in fixed cost of course, as a consequence of the high investments in ceiling solutions activities, especially the Middletown location where we established, the 1st line business, which should result in high margin. Accounts payable are at the comparable level to previous year and year end. Equity is at $840,000,000, only slightly higher compared to year end, You have realized the net result of $66,000,000, but also included in the equities. Of course, the dividend paid in 2019, which was 51,000,000. The equity ratio at the year end was 60 2.4%, sorry, 62.9% and we are at the similar level at the moment. I continue on Slide 17, where it's all about CapEx. Most of you know the developments of our CapEx related, especially to, sales, CapEx in the first half to 2019 reached $53,000,000, 45,300,000 aircraft was transferred to property plant and equipment. Previous year, we can show the amounts for the full year. A relative figure of capital expenditure as a percentage of net revenue airports comparable. The rest relative line graph shows that the peak of our investment program is behind us. This is also reflected in the decreasing difference between capital expenditure and depreciation. In the automotive sector, in particular, we are reviewing the planned investments and adapt them to the changed market conditions. We carefully distinguish between strategically important investments in our future competitiveness and tactical investments to expand capacity. So I'll continue on Slide 18 with the condensed consolidated cash flow statement You will realize a slightly higher net cash from operating activities compared to previous year. So high CapEx of $45,000,000 was reduced by 45% compared to previous year. A free cash flow was plus 39,400,000 results compared to a small minus minus 4,000,000 in the previous year. You also see a position net proceeds from loans payable to payment of $28,000,000,000, which reflects the one hand, the dividend has been paid to Pema, which then has been turned into a loan from Pema to that while evolving. This is, of course, to be compensated at interest rate at 3rd party levels. You also see the line purchase of treasury shares, which is to serve the share program of the Board of Directors. And we also see what the most important position actually, the biggest position of BRL51 1,000,000, which is at the similar level of previous years corresponding to the dividend paid. As a result, the company has cash of 180,300,000. I now hand over again to Dave. Yes, Rachel, thank you very much. I would like to proceed on page 19. The economic challenges in some of that wireless markets have clearly increased and the automotive market, for example, There are no signs of the recovery in the coming months. An online distribution for electronic components too, and purchasing manager NDCs in the main European markets caused a significant decline in demand. In the market with declining demand, strict cost discipline is applied and west nodes are reassessed and where possible postpone without weakening our long term progression. However, it's important to understand that these weaknesses and demand are short term for medium term developments. By contrast, the long term structural growth trends based on the mega trends in our core ceiling markets remain unchanged. And I'm really confident that our growth projects position us for these long term trends. In the short term, we will benefit from the fact that we already generate more than 1 third of our group sales With the healthcare and consumer goods businesses with an increasing trend, these markets are not very cyclical and growing steadily. Overall, I'm confident we achieved sales growth for the year as a whole and reported EBIT margin in the lower half of the unchanged target range of 12% to 15%. Now I move to Slide 20. To conclude my presentation, I would like to draw your attention to the debt wellness group's strategic priorities. These are long term priorities on which we base our decisions and activities among which we work continuously and systematically. Examples to drive profitable growth in the future include our investment in the new first line production capacity as well as acquisitions of Parker and bins, while Parker opens up new market segments, prints, strengthens our presence in South America. Besides expanding our core business, we also work on some exciting innovations to accelerate long term organic growth, keyword TRR, smart rubber, and soft dry electrodes. Which are enable interesting new application and technical health, diagnostic variables and driver vehicle inter phase in digitalization and vehicles. All these innovations have in common that we use our unit pro competencies and the Siemens Solutions division to develop new applications for existing or new market segments. As I illustrated, with the example of our new OS plant or with our haptic Manchester, we are also proactively using the potential of digitization, whether in contact with our customers, our employees, or under automation of our production processes. Especially the acquisition of new customers. The increase in the active customer base and the growth of R&D private label will continue has a positive impact on the business of our distribution companies. In addition, we are the privileged position of having many longstanding and competent employees. These employees value the entrepreneurial culture will offer and have a very strong identification with Devwire. With the new role of a Chief Agility Officer and targeting trainings, we are further promoting employee initiatives and empowerment of doing so, we are advancing our way to a self learning organization I'm very convinced that Blood Wala is well positioned for the challenges and opportunities of the future. Of course, our strong market positions are our targeted use of resources. Our ongoing efficiency programs and our strategic priorities, we will profit from the long term structural growth trends in our core markets, and we will create value for our customers. Are now available to answer your questions. First question comes from the line of Mikhail Yipar from Tom Doble. Please go ahead. Good morning, gentlemen. Thank you very much for taking my questions. I would have, 2 short ones related to health care. How do we do traditional business develop in the press release, you mentioned the bridge growth in, 1st line, produce components of the maybe talk about the more traditional business. And then the second question there, kind of the breakeven point for Midutown, do you you expect to cover costs by 2021, or did anything change there? So that would be question related to health care. And then, a a more kind of a, a qualitative question for Derek. How how do you see, the progress in tech call developing. Are you are you happy with it, or did you expect it more at the beginning of of this year? And then the first question, just related to CapEx for a full year, what would be kind of the the reasonable target? Thank you. Michael, good morning. Thank you very much for your questions. I think, let me go through that. I think the first one, if I remember right, was linked to the Heska business about additional business. As I said, the 12th line business is running really quite quite well and even there we have more of a problem that we have a cutter the issues. That means, as you know, we are a little behind with our new facilities in Delaware. And so then we have to, let me say, could sell more to the market, but I suppose that will come in the next couple of months. Better. So the transitional business, I mean, the pharma is, as well as slightly above previous year, we had already last year very strong strong highlights here. And in the what we call a medical sector is slightly around 0. That is as well linked with a strong half year, last year. So I suppose due to the would, order book what we have that are especially in this sector, we will catch up in the second half. Now the middle term, Greg, even point is, difficult to tell because it depends really on how fast we are proceeding here, I still believe that we should be able to start with the breakeven in 2021. But I said maybe that will be in the last quarter. But, please understand that we can get you perhaps a much better view at the beginning of next year. If it's some, to take, the expectation of course for the first half year was was higher. But there's a reason before before we are below that and that is linked to the market condition. If you look through the PMI, especially in the European companies you can see there, that the PMI dramatically is, went down some coming down. So from that perspective, it's below that. However, I think in this circumstances, I know this market condition, I think we performed quite well. So in the last question, I think it's for Rachel. We are for CapEx for the full year. At the moment, there is projects on the discussion, which would resulting some 120,000,000 CapEx for the full year, but individual projects are still on the radio, which will probably lead to a reduction. Okay. And this reduction is just tied to, or related to to kind of a more difficult economic situations you are just facing currently? Absolutely right. That's the major concern we have to take into account. Mhmm. And then just maybe follow-up on on this tech call. When we look at some of your peers, okay, they a report may be in a bit of different timelines, but there we seen, still open growth or even double digit growth in in the markets, that, that you are serving, do you see that you are losing market share and also part of it, or or do you really contribute all all the underperformance to the market? What we have to say here, Michael, you know, that's right. I think that if you look to the peers, of course, what we can see that it was, if he is, which are hitting their figures to the market, then everybody is doing that, what we are facing there that they have even in the second quarter and a sharp decrease in health sales growth trajectory. However, I think we are still below that and that means that we are currently, moving a little bit market share And that's, of course, this depends on which, segment we are talking about. Rythood is still on a very good track So it's performing very well. We have a little bit more, topics here with, with Peace Collect. However, I'm convinced that with all the activities what we have that we can, perform maybe slightly better in the second half, but that's I said that this depends on the general market conditions. The next question comes from the line of from Citi. Please go ahead. I've got several questions. First of all, may you give us some more insights regarding the organic development of the general industry segment. And then secondly, regarding consumer goods, it seems that the busy the business is still cellular running. Still, I'm I'm interested in a competitive situation. Is it more or less unchanged, or do you face, more competition, today? And then regarding TECCO. You've mentioned the potential sale. If hear also the possibility given that you just, sell parts of it to different buyers or Is it just available for sale for sale, as as one package? And in relation to this, how do you rate the the regulatory landscape, considering a a potential sale? Thank you. Yeah. Richard, thank you very much for your, your questions. Let me start, let me start with, with CECO. As we have communicated today, we have some mining some strategic options, including a possible sale. Of this protective components division. Since the evaluation is really on the early stage, we can't say more about it today. And I thank you for your understanding and assure that you will, that we really communicate, more analysis in the due course and answer your questions on later on. I think that is what we can't say today, yes? Yes, if it comes to the general industry, consumer goods is performing quite good. We do not see a change, in the competition here. I think what we are doing with you on our job here, I think we're doing a group job in the team. So from that perspective, I think there is nothing that I can add to that. And as you know, we do not giving further details on the on the contract here. And, yeah, this organic growth development for the general industry. Overall, I think that is what we can say here, that is, for example, with oil and gas, as I said in during my presentation, that is performing as we have expected. The margin development is really a nice to see. And as well, the target is here to achieve our budget and that is fully in on this call currently. I think that is from that perspective, there's nothing changed. What we have with civil engineer, and we have slightly decline in sales here in the mid single digit range That is what we are facing. That is the current situation here with General Industries. Thank you. Thank you. You're welcome. The next question comes from the line of Daniel Kernney Famirobo. Please go ahead. Yes. I my my question on this call was already answered. I have just one additional slide questions. Depreciation and amortization charge has been growing as percentage of sales. I was wondering what one could expect for the full year in terms of depreciation and amortization. Thanks. Well, there is a slight increase in the second half of the year as further investments will be capitalize them to, you know, fixed assets. So, but that's going to be a very slight increase. So you can actually double the figures for the first half of the year. Okay. Thanks. Thanks a lot. The next question comes from the line of Angela Vancier from Togo. Please go ahead. Yes. Good morning, gentlemen. I would like to have your current view on the expansion position in of China in the Healthcare segment. Do you have any update you can give us here? Thanks. So far, we have we are still in the discussion, in China, what we have decided internally as, possibly not to go for a green fuel. So we have changed we have seen some change in the regulation to get us to China. So we will 1st of all, let me fill our is what we have in India. And therefore, I think our target to export from India to China and that is running quite good currently. Thank you. You're welcome. Next question comes from the line of Michael Inawan from MainFirst. Please go ahead. Yes. Thank you very much. Good morning, everyone. I had a couple of questions maybe also on the consumer business or the Nespresso business. I was wondering if you see a positive impact from the Starbucks deal that Nespresso has from particularly on the virtual line in in the states. And, maybe a little bit more, a general or complicated question on the case cases. I mean, I'm getting more and more pushbacks from international investors on the ecological discussion on the cashier business in general. I was just wondering if you had I do always, you know, if you see this as a long term basis for the practical business in general, I know it's a question also. Obviously, phone is pressed for, just in your view. And, the 3rd question on selective capital reduction. You said it was going double digit. And I remember once showed in in one of your presentations, you know, that you expect it to grow faster. I was just wondering when do you expect it to to actually stop. So when do you see a zero growth impact here? And, on take home, also, when you mentioned that a sale is potential options here. Also, here, I was wondering, you know, when looking at the landscape, electric components in the UK, Kenya Farnell has been taken up by Aetna So do you see a higher force option asset in general? You know, you have to be obviously precise here, but just do you really see this as a as a video option to sell this space. Thanks. Yeah. Michael, thank you so much for your questions. Top of all, as I said, regarding Espresso, as you know, we have a contractor and, we are do not would like to assess this business on risk. And therefore, we are a little bit hesitate to tell you so much about that. What I can tell you that we are, let me say happy with this business currently, if you have a proverbial line, we are in this UPI as well. We are working as well with other. Products lines, what they are doing to the market. And finally, it's running as even better than we expected at the beginning of the year. If it's come, to aluminum, to a single portion, I have to say, I think it's, it's not, it's not, it's not our target to, to say, if we see that as the right product or not finding the consumer will decide what they are using from our perspective that has a lot of positive let me say, and to use such an aluminum, products even what they are doing with all recycling efforts And how they are getting the coffee from the continents, I think they're spending a lot of money there. I have seen that in their facilities and what we are doing from that perspective, I think it's even from time to time much better on a similar compare to plastics. If I it comes to people. I think as I said before, I think today what I said before, we cannot tell you more There's a lot of options what we're evaluating. I'm pleased to understand that we will not give for that. Let me say comment for that. And if I'm, I'm not sure if I understood the third question that was regarding selected customers. So that's FCR, the expectation here, and then what is going forward. I think there is a if it's it's running quite good, even, that we are seeing a decline of sales of car up the penetration of such products, what we are producing in the market is, is really quite good. And that is, on the double digit range. And nobody can tell how that will be in the second half year. But if I look to go all that's what we have on house, that is quite what even despite that, what Bosch and Exsemble communicated a couple of weeks ago, And that is one of the reasons why we're not paying back with an exact figures, what we see as a target range in sales for the second half year. There's a lot of uncertainties, that is a total example. Thank you very much, Peter. Just two follow-up questions on SCR, but that's probably, I just don't understand it. So is most of your revenues for new diesel engine covers, or is it actually upgraded, diesel engines? And maybe you can tell me this as an answer. I don't don't take why I understand you cannot give further details, but maybe let me rephrase the question. Do you see for example, American companies in the same area to trying to move into Europe. As I said, Michael, please understand, I do not would like to give further, that views to topic, we are together with our Board of Directors are thinking about what can we do in the future and to find the best solution. Regarding the diesel engine costs, I think Ed is really difficult to say because we do not have any aftermarket. We are delivering the products for the 1st year and they are bringing these products to the market. It's going to be that already some products of what we are delivering is going as well, for refurbishment. Let me speak for for for cost. But mostly I suppose that is that 90% or 95% is going into new cars. That is my last year. Okay. Thank you very much. You're welcome, Michael. The next question comes from the line of Rolf Mendes from Helvea. Please go ahead. Yes. Good morning, gentlemen. Just to follow-up on auto exposure and the outlook for that. You touched upon it already a bit, but maybe you can elaborate a bit further given all the negative news we get across the board from suppliers into that. Yeah. I think yes, Ralph. I can't do that. I've been happy about that. And the the point to see, the the full example in Europe if I look into our orders book, they, quite well thought. So And then we saw, for example, our Czech Republic, plant has a lot of orders. A little bit different in, in China, which we are seeing still a slightly decreasing trend. In the same as in the U. S. Now, and the reason why I'm a little bit hesitate to come up too optimistic here is really I do not believe that what we have here in the orders today will come through in the second half year. So I was already at the beginning of the year. Let me say more collaborative. Somebody asked me regarding the automotive but, no, that is still the same, and that is what I globally, we should be more conservative. We are trying to be very disciplined on the cost. We will innovate from further activities, choose the cost base And then we'll see in the next couple of months what happens in maybe your amendment in 2000 and 7 and 8. It was in this crisis for that time that comes to one to another month and we're trying and doing everything to be prepared for such a case. Yeah. And I'm I'm sure that we were able to do that as we think this is in the past. All right. That's very helpful. Thank you. The next question comes from the line of Sebastian Fogle from UBS. Please go ahead. Please, sir Fogle. Your line is open. Please go ahead. Maybe your line is on mute, Mister Fobo. Hello. Can you hear me now? Yes. Perfect. Yeah. Yeah. Many thanks for taking my questions. I've got 3 in, in that regard. The first one would be on student solution with your full year results, you'll be providing a revenue split between all of our health care and general industries. Maybe I missed it, but I haven't seen with the after results. Is that something what you only provided for new results, or would you, or would it be possible to share that also for the half numbers? And then coming back to, technical components, of course, And I was wondering if you can update us there what is, between asset base. And I'm a one one that's full up and I don't think that in advance. But, speaking more to your press release, when you were talking about strategic options, can you, occasionally, you're thinking about what would, be options. I mean, you mentioned that it is only 1, but I assume that should take it there. Could you also help me out there, please? Yep. Sebastian, thank you for the questions. So let me start with the last one. I can just repeat what I had said before. That you know what type of options there in the market to do. And we said that is including, that is including, the sale of this division on the other one, of course, that is excluding acquisition of this area. And there are a lot of other options here. So, and as I said, we'll not give further comments to that. Please understand that. If it comes for the split of the segment at Sealing Solutions, we will provide that only at the end of the year for the full year through to this, let me say Yes, long term behavior of our business. It makes from my perspective in all sense to do that under the year. And on the other hand, we do not like to tell too much during the year for our other market competitors. Yes. And then I think the second question is on the asset base, I mean, you're aware that we are not sharing divisional balance sheets because this is There's also a certain complexity linked to it. But to give you at least some indication and the explanation, the assets that we have stream technical components is mainly stock and of course, the logistics centers. And as you are aware, we have logistics centers in Van Bosch in the Netherlands. We have 1 at Glisjolt and we have a smaller one here in Switzerland, and they all carry stock. And if you take the total number that we present in the balance sheet, you just reduce it by 50% and then you have an indication at least on the stock level. That is used in technical components. Okay. Then, there's no further questions. And we, from the debt wireline team, thank you very much. For participating, this call. I really enjoyed that, and that is for all your pressures. This was very helpful. And, and, looking forward to see you again the next year and thanks for your attention. Thank you very much and good bye. Have a good day. Ladies and gentlemen, the conference is now over. Thank you for choosing School, and thank you for participating in the conference. You may now disconnect your lines. Goodbye.