Earnings Call: Q3 2021

Oct 21, 2021

Hello, everyone. It's 9:30, and I think it's about time that we began. My name is Werner Schweitzer, Investor Relations contact at Infikon, and I have the pleasure to host this Microsoft Teams session. Thank you for joining the Inficon web conference on its Q3 2021 results. With us today are Lucas Winkel, CEO of Inficon and Matthias Trunde, CFO of Inficon. The management team will first present the results and then During management's prepared remarks, participants are kindly asked to turn their microphones and cameras off. Thank you. You should have received by now a press release on the Q3 results, together with the links to the accompanying visuals for this web conference. All these As we are in an MS Teams session, you can post written questions during the presentations using the chat function. This should be the 2nd icon in the top right hand menu. Management will take these questions after their prepared remarks. You can also signal that you would like to ask a question over the microphone. We ask you to use the 3rd icon functionality to raise your hand. Just click on the raise your hand symbol, and you will be added to the queue of people who would like to ask questions. I would also like to inform you that we record this web conference to archive the audio file later on the Infikon website. The oral statements made by Enficon during this MS Teams session may contain forward looking statements that do not relate solely to historical or current facts. These forward looking statements are based on the current plans and expectations of our management and are subject to a number of uncertainties and risks That could significantly affect our current plans and expectations as well as future results of operations and financial condition. We undertake no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise. Having said all that, I would like to hand over now to Lucas Winkel. Lucas, please. Thank you, Bernhard. Good morning, everyone. Thanks for joining us today to review our results for the Q3 of 2021. A year ago, we had to announce one of our worst quarters for many years. Now 12 months later, Despite COVID-nineteen pandemic, the situation changed completely. The demand for insulin products is above our capacity. The global supply chain is overheating and the geopolitical situation, especially the U. S.-China country Makes the situation even more complicated. In total, with revenues of US122 $1,000,000 we reached Almost the record level of our Q2 2021 just finished 3 months ago. On Slide number 3, The key figures, you can see the key figures of the reporting quarter. Sales growth was almost 33%. If you deduct the impact from foreign exchange rate fluctuations and the small acquisitions we made 5 months ago, The organic growth rate was still above 30%. The book to bill ratio, again, far above 1. Our backlog increased to even higher record levels, something that we had never experienced before. In fact, we spent almost $6,000,000 in the Q3 alone for CapEx around the world. For the next 3 years, we will expand the capacity by approximately 50% compared to the level that we used to have In 2020, high sales volume improved gross profit margins but increased operating expenses. We finished the quarter with an operating income of CHF 22,000,000 or 18 percent of sales Compared to $10,500,000 or 11.4 percent of sales for the same quarter a year ago, net income reached $16,800,000 or 13.8 percent of sales. Pierre Kunder will review the numbers with you in more details later. I'll now go through some important developments in our part of markets upfront. On the next slide, number 4, you can see the sales breakdown in our into our 3rd 4 key markets as well as the regional sales trends. The pie chart shows an increased contribution from the REC in auto as well as the general vacuum market at the expense of a lower contribution from the semi and vacuum coating market. That is only due to the base effect. A year ago, we have a low contribution from the REC, automotive and general vacuum market and has In no means an indication of a weaker semi and vacuum coating market at all. The trend chart on the right hand side indicates The importance and the dependency on Asian customers, one more time. Almost 50% of our products and services Now let's do a quick analysis market by market, starting with the smallest one on Slide number 5. In the Security and Energy market sales increased 12.8% year over year. And there was a 14.5% sequential decrease, We reached at a level of US5.3 million dollars total. The security side of this market remained depressed And we only sold a few HexSight to a handful of customers. A large potential customer, the U. S. Department of Defense is Adding our new generation of heptyl products, but the first larger ore cannot be expected before 2022. Nevertheless, We are really happy with the test results and the expanded capabilities of the new product generation. It can be used to detect narcotics like fentanyl as well as explosives besides all the traditional and nontraditional warfare agents. In the energy side of this market, we have been able to be one of the only providers for the biomethane gas applications, And we set new standards in the environmental and landfill gas tax market. For the last quarter of the year, we do not expect Large changes compared to the 1st 3 quarters of this year. Now moving to the refrigeration, air conditioning and automotive market on Slide number 6, where sales increased over 27% year over year, but decreased 8.3% compared to the Q2 of this year to reach $24,200,000 We experienced a stable refrigeration air conditioning market, A very dynamic eosin ion battery testing business and the continuation of a, let's call it, a more weaker traditional auto market. Industry 4.0, digitalization and fully automated quality inspection applications in conjunction with tighter specifications The main drivers, the market for refrigerator and air conditioning manufacturers. E cars Drive the need for more lithium ion battery capacity and the need for safer batteries drives the higher demand for quality inspection instruments, Such as the new IntriCon ENT3000 lithium ion battery lead detector around the world, we will certainly And the year 2020 on a new record level for the whole market in the refrigeration and automotive applications. Now let's go to the semi and vacuum coating market on Slide 7, where Sales increased almost 40% year over year, but decreased 6.6% sequentially and reached €59,200,000 does. That's the major contribution coming from the semiconductor device and equipment manufacturers. All the major players in the supply chain of the chip making industry continue to invest in the latest State of the art technology for analog and logic chips as well as memory chips. The China semi initiative continues, But unfortunately, the U. S. Trade and technology restrictions remain in place and generating revenue, especially with the chipmakers Such as SMIC became even more cumbersome. On the other hand side, we enjoy a steep increase in businesses With Chinese equipment manufacturers where we have no U. S. Export restrictions. Semiconductor market will remain the most attractive growth opportunity for Inticon, not just from a financial point of view, but also technology wise. If you can develop and sell products for advanced semiconductor application, then you can serve all other markets as well. We continue to work very closely with equipment manufacturers as well as device manufacturers to develop new sensors, solution and methods To assure high quality mass chip productions. In the meantime, everybody is aware of the current supply shortages And all prominent chip manufacturers have announced plans for new fabs, some of them supported by government incentive programs. Semi market will keep us very busy for the coming year. So 2021 will be a record semiconductor year, and we foresee Also a good 2022 as well. Final investments in OLED, LED panel and optical coating technologies We'll remain flat. Finally, we had a record Q3 in this year in the general vacuum market There you can see the results on Slide number 8 with sales over SEK33 1,000,000 that reflects a year over year increase of 29.3 percent and a 10.6% sequentially compared with the Q2 of 2021. Chinese customers As well as sales to our European private label distribution partners represent the majority of the growth. As you know, we sell analysis, measurement and But also via direct sales channels to industrial OEMs and distributors in order to reach and serve 10,000 of smaller and midsize Customers around the world. So 2021 will also be a very successful year in the general banking market. Let me close my part of the presentation with an outlook slide, which is on number 9 for the whole year 2021. Despite uncertainty, the outcome of the COVID-nineteen pandemic And unfortunately, continued China U. S. Issues are quite confident to reach new annual records. On-site, semiconductor will remain very dynamic, and we have to expand our capacities to keep up with the increased demand. Vacuum coating applications are not at record levels, but they are quite solid. The e car trend will continue And the need for safe energy supply systems offers plenty of growth potential. The same is true for green energy initiatives. And with a high number of newly launched products, we have paved the road for additional sales growth beyond 2021. The only concern that we have currently are constraints on the capacity side, on the supply chain side and unfortunately, On the export license discussions that we had with the U. S. Government to even reach higher revenue based on the order intake that we currently enjoy. With that, I'd like to turn over to Matthias Freundlich, who will give you more details Thank you, Lucas, and good morning, everyone. As usual, I will cover our Q3 results and commend our guidance for the full fiscal year. Let me begin with our revenue segmentation, which starts on Slide 11. Revenues for the Q3 of 2021 came out at $122,200,000 compared with $92,000,000 in our Q3 of last year. This represents an increase of 32.8%, taking into account the positive currency impact of 1.8 percent or $1,600,000 and a small contribution from acquisitions of 0.3%, We achieved an organic growth of 30.7%. Mr. Winkel has already discussed the details of the different end markets. We can highlight that similar to the first and second quarter, sales in all markets did grow compared to Q3 previous year. All double digit, the semi and vacuum coating market did grow by nearly 40% and the general vacuum market reached with $33,500,000 A new quarterly high. Compared to Q2, the general regular market did grow by 10.6%, while the other markets showed a decline, Partially driven by supply and capacity constraints against our record numbers from quarter 2. With that, quarter 3 was Quarter 3 of 2021 was the 3rd quarter in a row with more than $120,000,000 of sales. Now let's take a look to the regional composition of the total revenue. Europe reached 26%, North America 24% and Asia Very strong 57%, followed by Europe with 16% and North America by 13%. Asia showed the strongest absolute growth in semi and vacuum coating, but all other markets did grow as well, Especially the refrigeration and air conditioning market by strong 74%. Europe showed also an increase in sales of 16%, mainly driven by 2 end markets, general vacuum and also in the refrigeration and air conditioning market. Now let's go to Slide 13. The gross margin for the Q3 of 2021 reached 46.8% compared to 45% in the same quarter of last year. The margin percentage did increase by 184 basis points. Higher volume, good capacity utilization and the market and product mix Could compensate rising material costs, partially due to shortages and program utilization, higher transportation and customs costs. What happened on the cost side? We spent $10,800,000 on R and D in Q3, an increase of 11%. As a percent of sales, The expense decreased to 8.8% in the 3rd quarter from 10.6% in the last year. Additional headcounts, higher R and D material costs plus higher external costs related to our development efforts did drive this increase. In SG and A, selling, general and administrative, the expense level showed a $3,200,000 increase to $24,400,000 New hires and performance related costs in form of commissions, bonus and sales performance incentives did drive this increase. Foreign currency impacts have been slightly unfavorable in this quarter. As a result, for the Q3, we achieved an operating profit of CHF 22,000,000 or 18% of sales after 10,500,000 or 11.4% in Q3 of last year. This corresponds to an increase of around 109%, which means the result more than doubled. The income tax expense for the Q3 was at $4,900,000 which represents an average tax rate of 22.7%. The global tax rate is comparable to last year and the last quarter, too. Nothing special, I would say. The net profit, therefore, reached $16,800,000 or 13.8 percent in Q3. This compares to $7,900,000 or 8.6 percent in the prior year, 113% increase in absolute numbers. And as a consequence, we have more or less the same development in earnings per share. This went up by 112% and stands at $6.87 Now let's move to the balance sheet. Our net cash position reached $42,200,000 which is $1,300,000 higher than end of last year in December and $16,500,000 higher compared to the last quarter. Operating cash flow, which you can see on the bottom right, Reached with $21,900,000 a good and solid level, representing about 18% of revenue. This was approximately 40% or 6 The DSO ratio, which represents the accounts receivable, was with 52.1 days pretty stable. The working capital, which consists out of AR, accounts receivables, inventories minus accounts payables, Close as $146,000,000 clearly higher than end of last year. The majority of that $17,000,000 increase is contributed to a $14,800,000,000 increase in inventory, which is driven by the obvious business growth. The balance sheet Shows a solid structure, has a 62% equity ratio and no long term debt. Those were my comments on the balance sheet in Q3. Finally, Let's take a look to the outlook. Mr. Winkler has already gone into the details and the assessment of our end markets. The business The business situation in our end markets looks quite positive for the current year. Also, the global economic and also political situation remains Somewhat fragile, we assessed the outlook for the current year optimistic. Therefore, we have increased again our guidance, and we expect sales of around €490,000,000 to €510,000,000 with an operating income margin of 18% to 20%. The last slide shows our corporate calendar and the upcoming dates. The next events will be in March next year. Early March is our Q4 and fiscal 'twenty one Conference call and end of March, we will conduct our Annual General Meeting. With that, I would like to close the presentation, and we are, As usual, ready in to take your questions. Thank you, Matthias. As I said, Participants could also ask questions by the chat function, and we do have a written question from Alexander Horvath. Let me just read that out to you. You mentioned that certain bottlenecks in sourcing and in the logistics have limited your growth and created additional costs. Could you please give us an idea in what region and revenue growth And earnings could have been without those limitations. And what is your assumption regarding the bottleneck? By when do you expect The sourcing and logistics bottlenecks to be relieved. Thank you, Bernard. Let me take that question at least from a Overall point of view, if you look at the dynamic in the order intake side, We are clearly sitting on the backlog that has reached a level that we have never seen before. And assuming and if you look at our increased lead times For certain main product lines that increased by up to 2 months more, assuming that we can go back to that Kind of a lead plant that we used to have, you can assume that there's a little bit more than 1 month Growth of shipments. So without bottlenecks and some supply chain restrictions, probably would have had For the full year, we have reached a higher sales volume of, let's call it, approximately US50 $1,000,000 more, assuming no restrictions. Now on the cost side, I do not know all the details, but I think Matthias can refer to that later, How much more cost we had to incur due to the supply chain constraint. On the second part of the question, when do I expect And I mean, out of this situation, I think we have to see from 3 different points. 1 is the internal point, When are we ready to have a higher volume or higher capacity on the tool side and calibration side? That you can expect by the middle of next year, we should be fully ready to shift a much higher Revenue level based on the internal capacity. On the external side, on the supply side, I believe it will take a little bit long. Everybody has adjusted to the higher supply chain levels. And the 3rd pillar is the political side. There, unfortunately, I do not expect a quick release of any of the U. S. Trade restrictions that we Currently deal with I just want to give you maybe some practical example how that works. We are still waiting for 1 of We have a larger order to get the export license, and we wait now for 6 months. And having said that, that's something that we had no influence on. So we simply have to wait and file an additional file of papers to convince the authorities that what we do Has no direct risks for the U. S. Security level. So those are the three elements that I would refer to the end of the bottlenecks. And in terms of cost side, the gross profit impact, I had to refer to Matthias. He might have a little bit more heat on the bone. To give a little flavor, When we talk about the constraints and the issues with broker costs and supply and logistics constraints, We can say that this the impact on the gross margin side is around 0.4% to 0.6% in quarter 3. So it's pretty substantial for us. And yes, we try, of course, to optimize and improve. But yes, the our I would say, our sources and our power is somewhat limited, and we need to live with it and try our best. Okay. Thank you. We have a queue of questions. We will take them in a top down order. I thus ask now Marta Brusca to go ahead with her question to switch on her microphone and camera and talk to us. Marta, please. Hello, good morning. I have a couple of questions, if I may, please. I will take them 1 by 1. So firstly, I got a little bit confused on your R and D comments. So I think in press release, it states some CHF 24,400,000. While in the income statement, when I go down, I see SEK 10,800,000. So does it mean that the difference is what you capitalized? Was that 24.4% referring to some more quarters? Or how shall I understand that, please? I don't know. I have to refer to Matthias. I certainly can confirm that we could not capitalize any R and D cost, But it might have been high for somewhere, but I'm not 100% sure. Yes. But I think you have a good catch. Unfortunately, the $24,400,000 is not correct. I must admit that we said the $24,400,000 went into research and development, Which is not the case. Sorry for that. What we said in our presentation, That's the correct number. So it's much lower. And we switched obviously SG and A and R and D costs. Sorry for that A typo for the error and what we presented is correct. And as Luca said, we never capitalized Any major R and D activities in our books, we always expense and as we go. So there's no burden on the balance sheet, yes? Thank you. Thank you very much for the clarification. And just to be clear, it still increased Quarter over quarter by about €1,000,000 or so. But yes. So and then the second question is about the outlook for 2022. Some of your broader peers, like I referred to VAT, see the market growth for the next year in low teens. Do you have any indication? It seems like it could be still relatively capacity constrained. So I heard your comment with regard To your own ramp up road map a little bit with Q2, perhaps think full benefit of the new capacity increases. So how do you think of 2022? Let me say that again, There are 2 items that I'd like to mention. 1st, and I agree with most of my peers, the market itself probably will grow Somehow in the low 10%. But at the end of the day, it's also a question of How much of the backdrop can we reduce during 2022? So from an order point of view, I expect the market being in the low 10s or maybe around 10%. But the more we can reduce the backlog, The higher we should go above this rate in terms of revenue that we should reach in 2022. So it's Depending on our ability to increase capacity and also to work with, hopefully, an easier Supply chain that will adapt to the higher level compared to 2021. I'm sorry, maybe my network is really poor Can you the market in low tens and then you will be up or down versus the market from your statement? From a revenue point of view, we should go higher because we will reduce our backlog. Yes, yes, exactly. That's what I expect. Okay. Just very quickly on the China. Can you give us an estimate how big it is currently and specifically for semis? And with regard Also the context of the political situation in your comments there, would there be an idea to relocate some capacities Also there, when you think of adding capacities, would China and or factoring China be an idea? Let me start with the last part. No, we are not going to add capacity in China, especially not for the semiconductor market. Our Chinese operation has been built up to utilize the good cost level in China. We use it only for, I would call it low tech products, not for high-tech products. So the high-tech products, we will certainly keep outside of China. And then regarding to the political situation, I think I did the wrong guy to really comment. I simply hope for a good outcome, but I'm not a politician. So sorry to not answer that question. And from a growth side point of view, China will be our most important sales region this year. So we will be in the number one position, basically Bigger than the U. S. Market. And I don't think it will stop that quick. And I think it's more than 50 The growth is coming from the semiconductor market now in China, which has been close to 0, let's say, 5 to 10 years ago. It's already 50% of the exposure. And then the 2nd largest part is coming from the refrigeration automotive, especially with the lithium ion factory manufacturers. And also very nice, the general vacuum market has been very positive for us as well. So China, certainly, we represent roughly, if I look in the next 2 to 3 years, probably more than 25% of Our potential revenue and it will be a dominated by semiconductor And automotive, especially battery activities in China. Thank you very much. I'll let other people as well take the queue. Thank you very much. Okay. Then the next person to have raised his hand is Jorn, Jorn Ifford. May I ask you to switch on your microphone and camera, Bjorn, please. Hi, good morning, Lucas. Good morning, Matthias. Good morning, Bernard. Thanks for taking my questions. The first question would be, please, on the semi market again. I mean, in terms of fab builds, in terms of Product innovations on your customer side. I know it's early, but can you give us an idea what you see also for 'twenty three, 'twenty four, what Chethed among your customers for this time period in terms of CNY growth? And second question would be please on the gross profit margin. I mean, it's a quite significant Downturn versus your target ratio of around 50%. I mean, why is it not there more pricing power? What are the pricing actions For 'twenty two, what else can you do to bring the gross profit margin back to around 50% by 'twenty two? And the third question, I mean, can you share with us on the book to Bill, I mean, are we speaking about 1.3x, 1.4x and also maybe the magnitude of the order backlog versus around 12 months ago? Thank you. Let me take those questions quickly in the same sequence that you asked. Looking into 3/24, of course, it's like what you need to do with crystal ball. But nevertheless, there are these two indications that In semiconductor market, we will have a positive situation and have to deal with the number of announced new bags That's the large semiconductor company would like to build. If, let's say, the majority of those announcements We'll actually be executed. We will have enough additional businesses To continue the growth that we currently see because it takes somehow between 1 3 years to actually build a fab. So all the announcements that have been made recent months, the actual buildup of those facts will happen in 2022, 2023 And then eventually going to 'twenty four. So based on the number of new announced fabs, we should see a Continuation of the semiconductor business even into 'twenty three, 'twenty four, at least from a CapEx point of view. The semi cheap volume for the end users depends then on the actual demand. But from a CapEx point of view, we'll certainly we'll see And enjoy a nice growth. On the gross profit margin, maybe 2 comments there from my side. One is that the product mix, current product mix that we have It's more related to equipment manufacturers. So the It's a little bit skewed towards the higher volume for equipment manufacturers, and those products tend to have a lower gross profit margin compared with the Products that we ship to the cheap makers, the end user, we call them. So having a higher exposure Higher growth rate on the equipment manufacturer side, that usually has a negative impact of our into our cost of production. That's a product mix issue. Secondly, it's a combination of what already Matthias mentioned, higher brokerage fees, higher logistics costs so on, which costs a lot of money on the market side. And then you also asked about, should can we turn that into The higher prices, yes, we do, but we do it very carefully. We do not want to have a Bad taste with our large accounts. So with the large accounts, we do it very selectively. With newer accounts and with all the new products, We certainly have a higher pricing than before. But for existing customers, very loyal and long term existing customers, We try to share the pain with them, not just asking for a higher price, even if we could because that would destroy our good reputation with those Long term customers. On the book to bill ratio, we do not disclose the details and because the dynamic And the timing of certain shipments might create some wrong impression because we have products that we ship in 2 weeks and we have products That we ship in 6 to 9 months. So book to bill ratio is not immediately something that we turn into revenue. But what I can confirm here is that we have, I believe now, was it 5 or 6 consecutive quarters, Something like that with a book to bill ratio above 1. And as I indicated in the first question, We would not have any kind of bottlenecks. We probably would have would be able to ship €50,000,000 more for a full year Total and so therefore, the book to bill ratio, I'm not going into details, but I can Confirm that the majority of the increased orders is coming from semiconductor customers as well as Lithium Ion Factory Manufacturers. Thank you for this. If I may follow-up on the gross profit margin, I mean, With the scale benefits, this may be improving product mix on the end user side and maybe also some productivity gains after the capacity was ramped. You expect it to approach around 50% again in 2022? If all the bottlenecks will be gone And especially also on the electronic side and the supply side and going back to a more balanced product Mix and a higher content of software, we should at least aim to get close to 50% again. All right. Thank you very much. Welcome. Thank you, Jorn, for your question. We have Michael Furth Still on the queue. And after that, I will go back to the chat function where we have additional questions that I will read out to you. But now, Michael Firth, please go on. Yes. Thank you. Good morning, everyone. Just two questions from my side. The first 1 is regarding your R and D spend in the quarter. It was down versus the previous quarter and also versus the previous 3 quarters. So I was just wondering What explains those dynamics in R and D spend? Is that a saving measure to compensate the lower gross margin? Or should we expect it to go up again in the Q4? And the second question would be if you could Quantify your investment and capital spending plans relating to the capacity expansion, both for this year And also for 2022, please. So on the first question, it has certainly nothing to do with balancing the Gross profit kind of weakness is that on the R and D side, this is always a long term spend. There's no kind of We will not or has never been managed on a quarterly basis because the R and D projects that you say long term. So the fluctuation on the R and D side Have to do with the timing of the state of certain R and D projects. Usually, R and D projects are very So therefore, the fluctuation only had to do with the distribution of the project AGs, let me call it like that. It has nothing to do with the with any kind of short term impacts. And it is the R and D costs are on a high level, and I don't They are going down on absolute terms. They might go down as a percentage of revenue, but not in absolute terms. On CapEx plans, yes, we will have a probably a new record in CapEx for 2021. And we even expect in 2022 a relatively high CapEx number, but not as high as in 2021. Thank you very much. You're very welcome. Thank you, Michael. We have A written question from Hamish Etzel in our chat. Let me just read that out to you. Please could you elaborate on the opportunity in battery testing for the automotive industry, both in the pre installation stage and in the car service market. The penetration of e cars in Europe at least is already growing very fast. So is this a large sales opportunity for you in 20222023? Let me start with the last part. Yes, it is certainly a nice growing market for us for the coming year. I would not only just Refer to 2022 and 2023, probably last 3 to 5 years, this kind of investment cycle into VCM I and battery manufacturing capacity. And we are I wouldn't say 100%, but more than 90% Connected to the pre installation and not to the service part of the lithium ion battery market. So most of our products And especially the very expensive sensitive instruments are only used in the quality control At the end of the integration line to make sure that the lithium ion batteries are perfectly tight And no oxygen can get or air can get into the lithium ion battery as well as nothing should get out because Lithium Ion in connection with oxygen is an explosive mixture, and that's exactly what we like to avoid. And so our products are more linked to the CapEx part or say 90% linked to the CapEx part of the Thank you, Lukas. If I look to our list of questions, I still see having raised his hands. Do you have an additional question, Yes. Just a general question, please, on the product innovations Going for 2022 and 2023, let's assume, please, a scenario, the end markets would be flattish. I mean, with new product initiatives you have, Can you add around €10,000,000 additional sales, €5,000,000 €15,000,000 over the next 1 or 2 years? What should be the magnitude we should think of, please? It's more in the €10,000,000 not in the €50,000,000 range. And premium linked to semiconductor? The majority linked to semiconductor, but there's also 1 or 2 applications that Outside, I would say it's about 2 thirds of the additional volume is, let's say, around €10,000,000 is from semi and then maybe another €5,000,000 from nonlinear applications. I see that Marta has another question. Marta, just take on, please. Hi, thank you. So yes, I would like to ask you about this Micron announcement. We will have €150,000,000,000 for the next 10 years in investment into memory. Do you see some opportunities related to that for you? I guess you would. Can you take us a little bit deeper Into what this means for Infocomplete? I think we had touched on that already 1 or 2 times that the memory market is less sensor intensive compared to the foundry market. So But having said that, even for memory manufacturers, especially if they now start to use EUV Technology and Hynix and Samsung have announced that. Micron, not yet. So I expect that, that will intensify a little bit the sensitization Of the end user market because they are going to use high technology as well. But under normal circumstances, We have a higher exposure to the non memory chip manufacturers compared to the clean memory manufacturers. Nevertheless, we're everywhere, whenever the new pipe is built, it's a new opportunity for us to sell. Thank you, Lucas, and thank you for your patience, Hubert. Thank you. I nearly feared that you found another mistake. No, I was correct in my note on the previous one, therefore I missed That's good. So I'm happy. Thank you. Thank you, Marta. Thank you, Matthias. Manuel Peter has posted another question in our chat. Let me just read that out to you. How much revenue could you theoretically Turnover with the current installed capacity, not including supply chain issues. And how much will the capacity increase with the currently planned investments in 2021 in 2021 2022. Good question. I don't know exactly Well, we would end up with, but I would assume that what we announced as our guidance is probably the maximum that we can achieve From a capacity point of view, and as I mentioned before, we probably will end up Kind of adding 50% more capacity by the middle of next year compared The level that we used to have in 2020. So that explains a little bit what we could do theoretically in over the next few years Yes, we expect the continuation of growth and therefore, invest in Fabese. Thank you, Lucas. Any more questions from the audience? Just raise your hand or switch on your microphone and camera so that we see that you have another question. If not, then I would like to hand over for Lucas his closing remarks. Thank you for your patience. Thank you, Martha, for finding a A big mistake in our written communication. It should not happen, but it's always highly appreciated if somebody finds those mistakes. And I'd like to just say thank you to all of you wishing you a nice day and hopefully see you face to face In the future, not using video conferencing anymore. It's still not the same feeling Talking to a microphone or a video camera compared to talking to real people. Thank you for that and have a good day. Bye bye. Thank you. Bye bye.