Earnings Call: H2 2019

Mar 20, 2020

Ladies and gentlemen, I would like to welcome you most warmly for this year's press conference of Interroll Holding AG here from San Antonio from the headquarters of the Interol Group. This is the 21st press conference for me in my position as CEO. Unfortunately, it's the first time that I'm not able to speak to you in person at Zurich. In the first part of my presentation, I'll give you an overview of the activities of the year 2019. And after this then, Mr. Strobing, Mr. Struving will inform you about new things in terms of technology and innovation and everything that we have completed in 2019. Mr. Struving will be connected to us from our worldwide competent center for conveyors and sawters at Sinsheim, Germany. Mr. Karoli, he is the Senior Vice President for Corporate Marketing and Culture, and he is going to report on how Interroll is going to reinforce its brand name further and how it has been able to do so, so far. So you're going to hear about a few interesting and strategically important projects. After this, I'm going to inform you about the business results in 2019, and I'll give you a summary and outlook to conclude. Let me take this opportunity to welcome our new CFO, Heinz Hertzley. He's just started with the company, and he'll just make a few remarks now. Thank you very much, Mr. Zumbuhn. Ladies and gentlemen, I'm very happy to be here. Let me just make a few remarks on myself. I'm 51 years old. I'm married. We have 2 teenage sons. My career, I'm a chartered accountant. And in 2009, I took an executive MBA with the Duke University of North Carolina. I worked for Buhle at Ootswil for more than 20 years in various functions, among other things. I was the CFO in Mexico for 2 years and slightly under 5 years, the CFO in North America at 2 different sites. And from 2012 on, I've been the CFO of the Advanced Materials Unit with sales of €650,000,000 last year. I'm happy to get to know you later on in person. Unfortunately, this is not possible right now, but I'm looking forward to meeting you later on. Thank you very much. Back to Mr. Zumbu. Thank you, Mr. Hirsley. As we are not attending at Zurich in person, we will take your questions via a chat function. So you can raise your questions right away. Do send your questions in, and we'll select some important questions then and combine up questions along the same lines. And we have 15 minutes then and we will be very happy to answer your questions then. So you can start putting your questions right during the presentation. 2019 once again was a year characterized by many highlights. First highlight was our record profit, a historical record and also our cash flow, which was increased by nearly 50%. For our medium term and long term As in the previous year, you remember, last time at Zurich, we informed you that our journey is continuing. And we are going to step up these efforts even. Next then, we need to expand our capacities in the medium term and long term. And you know our concept, it's like a LEGO system that is our products are based on platforms. So we've taken a further step, a further step towards digitalization so that the interfaces will work, that is we are expanding the interfaces among modules further and you're going to see 2 very nice examples of this. Our growth strategy is based on 3 pillars. The first pillar is innovation. And here, as announced, we were able to launch the new DC platform. This is 24 volts and 48 volts. Then the modular pallet conveyor platform, you remember, we had announced it last year in February, and it has established itself very well in the market. And we envisage a very good future for this. And Mr. Strubing is going to inform you about the new high performance sorter. This is a product which will also open up new market segments. Then another mainstay of our growth strategy is our regional presence. We are going to expand this further in all continents. The service business is very important to us. In December, we were able to deliver the 400th soldier and this is an excellent installed base for us. So we can provide more service rounding this off, offering additional services in future. It was really the first time 15 or 16 years ago when I spoke about this. It has stood the test of time in an extraordinary way, and it will also bring success to the inter role group in future. 1st of all, we are in a very dynamic market, materials handling. And of course, new vendors are also joining this market because this market is so attractive. There will be some consolidation. And it's important for Interrole that with every consolidation happening in this dynamic market that we have a good position in the market on which we can build in future. Interrole, when you look at its business model, is based on 3 mainstays. The first mainstays are products. I mentioned we have this platform system. It's like a Lego system and tested worldwide. Then over all the years, if you just look at the last 20 years, we have built 18 new companies that is we're very close to customers. We produce where we sell. So this brings us very close proximity, also has advantages in terms of delivery periods. Our team is headed by Jens Karoli, and they have done an excellent job. So our brand has been established worldwide as the technology leader, conquering the confidence of all our partners. The customers of our customers are the end customers in the various markets like e commerce or the postal industry, airports and so on. And we started with this 10 years ago, getting ourselves to be known better for our proven products. Our direct customers, that's, 1st of all, the global system integrators, but it's also local equipment suppliers or smaller integrators. 95% of all our customers, all in all, it's 28,000, 95% are local customers. Medium sized and smaller companies who we work together closely, and we enable them to grow. And Mr. Karoli will also give us a few very good examples of this. And it's especially in today's time, even in March 2020, this slide here will actually be to our advantage. We've never lived above our station. And apart from the enormous capital spending that we spent on our future in order to achieve innovation and other things. We kept ourselves fit on the other hand, so we didn't want to put on any fat. And in fact, we want to be able to act early on in order to avoid any restructuring. Orientating ourselves to internal and external benchmarks is extremely important to us. One example of an internal benchmark from the last year, I mean, 2019, we had the 2nd big project from an e commerce company, an integrator from South Korea, and it was more than 12 kilometers of this MCP of the modular conveyor platform concept. Our European colleagues would never have thought that our Chinese friends would be able to complete this project in just that. You have to keep in mind, it's 12 kilometers of conveyor, and they managed this in just 12 months. They did manage, they did keep their promises and the customer paid the bill. Of course, this is an excellent internal benchmark within the group. It shows what the market demands, not just in China and in South Korea, but in fact, it calls for this the world over. As I mentioned, our market continues to be dynamic. Everybody talks of e commerce, but it's not just about e commerce. All of materials handling is important. You see this especially at these times. Everybody speaks of supply chains, and you can see where the weak points are. You can see this today. And to us, this means an enormous opportunity in the long term. Customization when you buy a white shirt today, like I'm wearing at the moment, and if you go to the Zalando Web site, you will find at least 50 different versions of it. That is all of this has to be supplied, all of this has to be sorted. And above all, it has to be close to customers. And this will bring us very good opportunities in the future as well. So far, these are my introductory remarks, ladies and gentlemen. Now Mr. Jens Troving of our Global Competence Center at Sensheim, and he's speaking from Sensheim, he's going to report on activities on innovation and production, everything that we did in 2019. So let's now go over to Sintheim to Mr. Strewing. Good morning, ladies and gentlemen. Just like Interroll is a global company, we are equally global for today's press conference. I'd like to extend a very warm welcome to you from our Sinsheim location in the south of Germany, about 450 kilometers north of Ticino. And this location at present is a center of excellence for our 2 large product groups, conveyors and sorters. It is my pleasure to talk to you today about the key activities over the last 12 months for product and technology. On the one hand, capacities are to be mentioned here as one key topic. Given our global growth strategy, it is also required to extend our capacities. And that is something which, over the last 12 months, we've pursued to quite some extent in 2 directions. 1st, we took our internal capacities and made them more efficient. That happened essentially through automation concept. And secondly, we also set the path for the future. We will and are already in the process of opening new locations in all of the 3 world regions in which we are active right now or will extend existing locations. When it comes to innovation, we have 3 key products that we launched over the last month. First, there's the fully digital DC platform. Then there is our modular pallet platform, which was supplemented in November by 2 so called interface elements, which is the transfer car and the track. And thirdly, there's our high performance sorter, which is a real innovation. And later on, I'll talk about the details of it. Our 3rd highlight certainly is digitization. It's a megatrend. Everybody talks of IoT. We are right in the midst of it. We've started our journey already a few years ago. But over the last 12 months, we've taken essential and key steps towards full digitization when it comes to our products and processes. But let us start with the first segment, the first highlight, if you want, our capacities. Global expansion, that's the key word here. Half a year ago, we decided for the EMEA region to build a new location because specifically for conveyors and sorters, our capacities were reaching their limits. We decided at the Mosebach location, which is 25 kilometers north of here, north of Sinsheim, to build a new factory of about 25,000 square meters. And the investment for that is €45,000,000 which is investments into buildings, but also into technology and equipment, machines that is. We hope to open that factory in April 2021. Already 9 months ago, we took the decision in America to extend our high ramp facilities in Atlanta. At the moment, we are ramping up our production at that new facility. And over the next 2 weeks, we'll be starting to produce sorters and the modular conveyor platform in those new facilities. We invested both in buildings and into equipment and plant, investing a total of USD 11,000,000 and last but not least, one of our most important growth regions, Asia Pacific. It was already in June 2019 that we set up a 5,000 square meter production building in Thailand. And only just last week, we issued a press release communicating that in Suzhou, near Shanghai, we will take our currently leased premises and replace them by a far larger self owned production facility, which is planned to start operation in March 2022. Let's now turn to the 2nd key topic, which is innovation. Our platform strategy is the starting point for each and any of our products. Mr. Zumbull already mentioned the LEGO blocks concept. And I think that is best suited to describe our platform strategy. Let me show you a quick simulation to illustrate that platform strategy further. The idea here is to take individual elements such as rollers and the roller drive, which you can see at the bottom of the pyramid, and make them into modules. And those modules then get supplemented by controls, shown here as an MCP and a power supply. And that results in our modular conveying concept for carton solutions and pallet solutions. And looking at the very top here of the pyramid, you can see what I call interface elements. On the left hand side, that's our transfer car in the center, the stacker crane. And on the right, that's one of the curve elements, the belt curve. Those interface elements will be connecting our products and that's our product strategies and product components. So that would mean that you can use a stacker crane integrating the MPP solution with our dynamic storage solution at Interro. And that is something which I'd like to show you, taking the example of the MPP and the interface elements of stacker crane and the transfer car and again, doing that with this little video. Ladies and gentlemen, I think this video was able to show you quite nicely how we can take different product groups and combine them with our interface elements, thus creating added value for our customers. One stop shop, one solution by Intero for our customers, that's our objective. Let's now look at our 3rd highlight, and that really is the biggest highlight over the last 12 months. 2 weeks ago, we presented our new high performance so to solution to the market. This is a project which was handled by 3 project groups in all of our 3 world regions, Americas, Asia Pacific and Europe. And they handled this jointly, and that's also something which, for the first time in the history of Intero, was launched simultaneously in all of those world regions. This new high speed, high performance sorter allows us to enter an entirely new market segment. That is a market segment that is characterized by an extremely high sortation throughput, and that is what we achieve through a sorting speed of 2.5 meters per second, which translates into a throughput of 20,000 sorting units per hour. And I'll show you another video illustrating our new high performance sorter. Ladies and gentlemen, our new high performance cross belt sorter means that Interroll is entering the high performance segment. The market for that segment is Curry Express Parcel and High Speed Distribution. We are already represented in the medium segment with our well proven solutions installed worldwide, cross built sorter solutions horizontally and vertically. In the base segment, we are currently engineering new sorter solutions, the launch of which is planned for the Q1 2021. And prepare to be surprised. Let us now turn to the 3rd part of my presentation, digitalization as a megatrend. Interrole as a company is in the process of making all of its products digital so that these products provide our customers with status information, which our customers in turn can then use for preventive maintenance in order to optimize their equipment and plants. To do this, we are launching a number of products. And just recently, and this is a product I really want to stress here, we've launched a modular control concept for our sorters parallel to our high performance sorter. As for production, we are centered around our global SAP and PLM system and allowing for the complete integration of all of our locations and extend it further. But also within separate locations, we go into the integration of man machine concept. Let me take Ticino again as an example. We're using cobots, humans and robots working hand in hand, literally speaking. Also at our Wermilskirchen facilities, we've turned our factory into a paperless one. So from the point of incoming orders through production all the way through to distribution and billing and invoicing, it's all paperless, fully digitalized. Also in the next few years, we'll continue to massively invest into these premises and to improve further. To do that, as I said at the outset, we've initiated 7 lighthouse projects. Ladies and gentlemen, I hope I've been able to give you some insight into our current capacity extensions, into innovation and into digitalization. Thank you very much. And with that, I'm happy to hand over to my colleague, Jens Carole, and also switch back to Ticino, and he'll take you through the highlights in marketing. Good morning, ladies and gentlemen. We are back in Ticino, and we've just heard a lot from Jens Struving about innovation and products, and I'd like to link up to that. Interrole considers itself a world market leader, an agenda setter. We're not just a producer of worldwide platform solution. Most of all, what we are is a solution provider, partner to our customers, and we also are seen as somebody who carries weight in the market. So with our proven technologies, with the experience we've had worldwide with the 28,000 customers we service worldwide, we are somebody whom people believe and trust and can take our word for granted. Our strategic positioning this year was extended quite substantially. So we've taken our own and also new PR channels to set our agenda. We've produced a number of interesting interviews and, as I said, been able to set some more new trends in the market. In the web, as we're doing right now, we've used new tools, more interaction, configurators that can be used, allowing our customers on a daily basis to download CAD data, allowing them to see how it all fits together, where they can really directly use our 3 d information in order to equip their machinery accordingly. Also, we've entered into partnerships with institutions, market research companies, but also consultants who will continue to help us extend our competencies in this field, and that's also something which we're happy to pass on to our customers. And last but not least, last year, we attended 31 trade fairs. It's bound to be less this year, but last year was 31 industry fairs. Some of them were very specific specialty fairs, and we went around the world launching our products there. Now moving from Ticino to Thailand, ladies and gentlemen. And there, I'd like to show you a reference project, which allows you to see how we implement projects together with our end customers, but also make use of our partner network in this, arriving at true partnership through this. So as I said, we're going to Thailand, Southeast Asia, a region where we very strongly believe in further growth and into which we've also substantially invested just recently. You'll remember, we built this new plant in Thailand, which started production last year. Here's the video. Since 1927, 711's mission has been to give customers what they want, when and where they want it. In Thailand, CP All is the sole operator of 711 convenience stores. In the very South, this brand new DC was opened recently, with almost infinite capacities, ready for future growth. Constantly working to meet rigorous KPIs, the team manages dry groceries for 500 shops in 8 of the 14 provinces in Thailand, catering for the needs of 9,000,000 people every single day. Intermat is one of the leading system integrators and a member of the global rolling on inter roll community. It designed this seamless material flow solution, which can handle up to 15,000 SKUs, with 40,000 cases shipped easily every day. Orders are processed in just a few hours. 2 shifts handle both inbound traffic, picking, commissioning and sortation, ensuring that everything leaves the Hub on time. $1,000,000,000 of our total mission critical solutions to enable the facility to work as efficiently as possible. Process accuracy and smart automation was of utmost importance. It was clear that nothing other than proven technology and the highest availability of the system was required. Intermat found a future proof solution based on the entire portfolio of the Interroll Modular Conveyor Platform and the Interroll carton flow solution. It enables state of the art pick to light commissioning of up to 80,000 goods per day. The pick to like commissioning on 3 levels is supported by the attached carton flow, a simple but ingenious solution to the robust conveying technology. The and the high performance diverts proved to be the perfect match. CPL has chosen this highly scalable layout while recognizing a fast return on investment due to low energy consumption and very low levels of maintenance. What's more, Interroll and Intermet have been successfully working together for years. Interroll, as the only true global supplier for key products material handling, has been operating in Thailand for more than 20 years. When picking is done, goods are ready for final sortation. For this, Intermat has developed a material flow solution with the lowest latency of processing for the highest throughput. And there is no rush, as everything is sorted perfectly. Slow movers sync with fast movers. As you'd expect in a partnership, the integral MCP MCP conveying technology handles the traffic seamlessly. 247 by 711, a perfect equation. Everything works as it should do. Oh, thank Heaven for 711. Ladies and gentlemen, we are back in Ticino, but I'll take you right along on the next journey to Rome. And I'd like to tell you about our global partner program called rolling on interroll, a program that we initiated about 5 years ago. And it's about setting up a community that we've built up, which comprises about 100 partners worldwide by now, all of whom are characterized by enormous growth potential and all of whom within their own industries and niches are leaders. Who are very much focused on innovation and quality and who've committed to exchanging experience with representatives from Interrail, but also others from the network exchanging experiences, competencies and trying to jointly win projects. We see ourselves clearly as the enabler in that. We are the matchmaker. We very specifically and diligently select those partners. And as I said at the outset, it was in Rome where we organized a large conference last year. About 70 of those partners attended. And that conference was all about sharing competencies, but also introducing partners to each other. So we organized a matchmaking event with 1 on 1 sessions where partners met for the first time, talked about projects, about technologies, about joint customer projects. And a lot of business was generated from it for those partners, but obviously also for us. Another potential that we see for this community is that we've achieved something for the industry that hadn't been there before. We've got these 100 partners around the world now setting up a network of exchange of integration, which might actually talk about joint standards in the industry for the future that might jointly fight and strive towards new platforms and joint growth wherever it makes sense. So something which is certainly strategically very important to Interrole, and I'm quite proud of what we've achieved over those last 5 to 4 years. My last topic is one which is actually even a bit closer to my heart, which is Interroll Academy. And for that, our journey takes us to Dusseldorf, my hometown. That's the home of our academy, which for us at Interroll really is a statement. It's not just a building. Mostly, it's an idea or a concept. It reflects our mindset. We want to train our staff there. We also want to train our customers there, not just training when it comes to products, how to sell the products, how the products work, but also when it comes to making sure that our managers, our executives believe in our values and everybody on the campus and in the academies to be provided with information communication that can only happen like that right there. Now you might be wondering what we're doing with building at Dusseldorf right now. We're actually sending out more than 2,000 online trainings from there, which our staff can do from home at the moment and which, by the way, we also can pass on to our customers. So there's a whole separate customer learning program that we make available to our customers and which they can call off. With that brief overview regarding marketing and training, back to Mr. Zumbu, back here to Ticino. Thank you. Thank you, Mr. Karony. Let's now turn to the business results. Ladies and gentlemen, the results for 2019. And let's begin with the products business. This is mainly the 2 product groups of rollers and of drives. With both these product groups, we were able to increase sales in local currency by about 4%. It was 1.9% consolidated or 1.3%. On rollers, we are talking about strong growth. You only see one part of the sales, that's the external sales with customers buying the rollers product, but there's also a major share of sales that comes from internal customers, be it MPP or MCP, which, of course, also uses rollers generating internal sales. We've established ourselves further on drives. Remember, we had a strong increase in sales last year. We established the EC5000. The market for materials handling is a conservative market, meaning it always takes a certain time until customers, as I said, we have 27,500 customers, and many of them are small and medium sized companies. And of course, they want to test things, so it takes a certain introductory phase, but the product has met with an excellent response. So if we now look at pallet flow and carton flow and conveyors and sorters, Here, we're first of all talking of the project business, but let me point out, it's not only the project business. Of course, if the customer just wants to buy 1 LEGO block from us, of course, we're very willing to sell an individual sorter or an individual curve to them. The cyclic nature of the pallet and carton flow business became quite evident last year. We had a decrease by 10.7%. In the year before, of course, we had won 1 or the other project, which didn't come again the year after. These things keep on changing. Then let me say something in parenthesis. It's been a tradition for Interrole to really be responsible for light goods units. So we're talking of parcels, we're talking of jumpers which are conveyed. So this could be, say, 100 grams up to 30 kilograms or maximum of 50 kilograms. Even for the new cross belt sorters, the limit is 50 kilograms. We never really were so active on pallets, with the exception of pallet flow for storage. But when you look at all the things that you can buy at supermarkets today, at least 95% of all these goods will have been on a pallet at 1 or the other time. So this was the starting point for us to decide that apart from pallet flow, we would also introduce the MPP and also further interfaces, as Mr. Struving explained, with the stacker crane and the transfer car. In other words, the LEGO kit is larger now concerning pallet handling. So we're now talking of weights of up to 1.2 tons. So in 2020, as of the 1st January, this unit is renamed Pallet Handling. And this combines all the products and solutions for pallets. Looking at the conveyor and sorters business, this is really an enormous highlight for us for 2 different reasons. The first reason being that in 2018, we had won a project worth 1,000,000, a double digit number of 1,000,000 in the U. S. So this was quite a massive order, which, of course, you won't get again every year. And we don't always try for these big projects. But if a customer wants to buy a big LEGO kit, then we're happy to deliver it. On the other hand, in 2018, if you look at the annual report, we had growth in sales by 55% in this business unit. So in local currency, sales were increased by nearly 4%, compensating for this big project by many medium sized or smaller orders, lending us a certain stability, which we have. If you look at the order intake but also at the sales, here you see the impact of the really strong Swiss francs, and it's becoming even stronger at the moment. If you look at the exchange rates today, 5.7%. This is really better than what we had announced in the first half year. In July August. We spoke of a postponement of projects but also of 1 offs. We were able to catch up on a few things and were, in fact, able to close out better than we'd expected. On the other hand, sales increased 2.3%. If you now take the order intake and net sales over the last 5 years, then if you look at the years from 2014 to 'nineteen, we had order intake, which increased by more than 9% over these years and sales per year by more than 11%. So Interroll has proved over the last 5 years, or you could even go back further, we can prove that we have been able to grow much faster than the market, first of all. And secondly, we have these innovative solutions, which enabled us to gain more market share. Net sales over the regions, you can see this here in this chart. Last year or the last 2 years, we really said that sales in Europe should remain at about 50% of our total sales that is in the other regions like the Americas and Asia where we're also expanding now. We want to make this possible. On a good way, you can see the impact of the one off effect in the U. S. It was a double digit €1,000,000 order of the year before of 2018. Let me then briefly mention an advantage which we're now benefiting from in this situation. We used to talk about currencies that we invoice in the currencies, local currencies of the places where we produce. But today, we speak about the supply chains, and we're glad that we have these 16 production sites worldwide. And 75% to 100% is their readiness. Three quarters of production is utilized between 85% to 100%. China is close on 100% after 2 difficult years. The EBITDA due to the better margin but also due to better productivity and efficiencies has increased further to 96,100,000. This means a margin of 17.1%. The we had an impact on EBIT from the increased depreciation according to IFRS 16. This requires long term payables like rental agreements or the leasing of machines, we don't have this so much, this has to be reflected in the balance sheet and depreciated over a certain period of time. We were able to compensate for this higher depreciation by lower depreciations on the SAP system. So we now reached this EBIT margin of 12.9%. The two real highlights of this 2019 results, ladies and gentlemen, is, 1st of all, the net profit, it's based on much better operating earnings, and it's based on a somewhat lower tax rate. So the net profit has been increased to €56,000,000 and it's the first time in our history that we are able to announce a double digit margin. Our profits have never been that high, and we've never been able to report a margin of 10%. This is unique in the history of Interroll. This also helped us increase our equity ratio to slightly under 70% or to keep it there. Let's not forget that the Swiss franc, of course, has an impact on certain assets abroad. All of a sudden, they're worth less. But still, with this profit, we were able to increase our equity further. You can see in brackets what we had in the previous year, and now we have this ratio of 70%. So we're financed quite comfortably. The second very big highlight is operating cash flow because we can't expect this for every year. Due to the higher net profit, we were able to make enormous progress in managing our current assets by reducing the stocks but also the outstanding payments, the receivables from customers have been reduced. So it's the first time that we're close to a 3 digit number of 1,000,000 at 99,600,000, and this means slightly under 18 percent of margin. Despite higher capital expenditure of slightly under €30 €4,000,000, the free cash flow went up to €67,000,000, meaning a margin of 12%. Net liquidity, if you look at the annual report, stands at €76,900,000 at the moment. So net liquidity has also been increased gradually. And this net liquidity is important, first of all, in order to be able to implement our projects concerning the expansion of capacities, but also digitization. It's not just about the factories. We want to equip our factories with the latest technology. The keyword is IoT, the Internet of Things, bringing the Internet together with the machinery in order to achieve certain efficiencies and to be able to reduce delivery periods further. We expect that in 2020 'twenty one, it will be about to $60,000,000 that we are spending on capital expenditure. And in 2022 then, we expect it will be €40,000,000 to €50,000,000 and will return to the normal cycle of capital expenditure then. Of course, there may always be some shifts in the short term. This could be due to the most diverse events. Another thing we are making efforts for is strengthening governance. We hear a lot about sustainability and fairness, and we are working as a member of the UN Global Compact. We do find it important to set an example ourselves, and you will find 3 or 4 pages on annual report on this topic, and you can also see what action we took on this. At the next general meeting on the 8th May, the Board of Directors will announce an increased or propose an increased dividend of CHF20 election of a new member, propose the election of a new member from a really leading company, a worldwide leader in a different industry, but still with many touch points, I mean, the personality from the Kalkia Group. I think everybody knows this Kalkia equipment. They're a worldwide leader in cleaning equipment. Mr. Rush Mr. Ash brings in global perspective and long years of experience on these modular product concepts on digitalizer on digitization also concerning services that can be based on sales. When we speak of finance, it's important for us to really have these funds available. And if you look at this chart, you will see that, first of all, that over the last 10 years, we've been able to increase our dividends quite strongly and in some cases, quite massively. You can see here what it was like in 2010. But let me point out to you, this was never just meant to do a favor to shareholders. So in fact, it was never at the expense of the substance of the company. So the earnings of the company, the earnings per average outstanding share would always rise in line with dividends. If you took the same chart for the last 20 years starting in the year 2000, you would get the same kind of chart with only one exception when we reduced the dividend, and that was in 2,009. Let me now sum up. We've spoken about industrial management. We've spoken about the opportunities in different markets, and we want to move ahead here full steam. It's also about innovation. Mr. Struving has explained quite a few things, and Mr. Karoli explained how these concepts will be marketed the world over. For example, the cross belt sawter, it's the first time in the history of Interrole that this high performance cross belt sawter was launched on exactly the same day on in February on all three continents. We never had this before. Let's not forget about this. It's not just the product, it's the whole supply chain management, the engineering configuration and everything. There's a lot really a lot behind this. Furthermore, we need to advance our capacity expansion further and digitization. And when we now look at 2020 and the outlook, we started positively. And when you look at the order intake in January, I was in China for 2 weeks but also in Southeast Asia and even in Australia. And I came back very with very positive impressions. And hardly had I returned home, the corona crisis came. And of course, it has affected everyone in the short term, but every company needs to manage with volatility. We now have an opportunity for expanding on our market position further at this period in time and to continue with our programs full steam ahead. Of course, we want to maintain our capital expenditure. I remember in the financial crisis in 2008, 2009, We had also built a plant, a greenfield plant at since I'm at that time. This site is completely built up at the moment, and we are building on the second site now. We need to invest on these things. So these are our remarks, ladies and gentlemen. As I mentioned at the beginning of this press conference, we will now be available for the next 15 minutes. We'll be happy to answer any of your questions. You have been able to already put a few questions on the chat system, and I'll read them out. And then we'll be happy to answer these questions. Let's start with the questions then. Mr. Schirmacher of Health in the end market in that future at risk? At the moment, as you heard yesterday, Swiss has grounded its aircraft. There are only a few birds left in the sky. And in the short term, this will certainly also have some impact. But usually, projects are more long term. It's big projects. That's the first answer. And the second answer is we don't have more than, say, 15% in this market. So even if this market should be reduced in the longer term, this wouldn't have a substantial impact on us. Next question? The last question has just been answered. And when I look at the medium term potential today, of which we always said, looking at the market and our growth, what we could certainly not maintain in the short term. But in the long term, we certainly maintain what we've always said. Mr. Sebastian Vogel of UBS. Good morning, Ms. Vogel. Your question. In your guidance, you say in the core markets, there was an unpredicted short term downward potential, some of it due to the appearance of the coronavirus. What are the other parts that were unexpected and that are not connected to the coronavirus? In fact, I've answered this question. You find this in the statement in our half yearly report. We saw certain distortions in the global situation last year also caused by the duties and so on raised by China. So because of this, we said that in the second half that this would, in fact, be demanding, and it has become so. But at the beginning of this year, we felt that this has come loose again and now we started quite positively until then, well, the coronavirus appeared. Good morning, Mr. Rotzer of Credit Suisse. You're right. How did the order book evolve in the Q1? Any impact from e commerce from that past holiday season and the current COVID-nineteen crisis? That the order intake, depending on region, has developed positively in principle. Of course, there have been certain delays, postponements of projects and so on. And it's clear, if you can't call on customers or our customers can't call on their customers at a vital juncture of a project when you really have to negotiate on-site, it is difficult then to make decisions on these things. And at times, this is really about a lot of money that's was said, we also have its impact. But when you look at order impact intake, we're doing better than we would have thought in the 1st 2 months. Of course, this may change. This is as of the 20th March. And on sales, we're behind expectations. Mr. Roetzer had an additional question. Level of incremental growth for growth CapEx. I've already answered this question, in fact. It was answered in the presentation. Mr. Bossa, good morning. The impressive progress on cash conversion that you've made, I suppose you mean our current assets, will they be in the long term? Or have you reached too low a level with the 30 days? And what were the impacts? Well, as I said, if sales doesn't grow rapidly, it lies in the nature of things, that current assets should also become better, which is the case, in fact. Of course, we're working on accounts receivable, and it's quite clear that we have some clear rules in China as well. In fact, we discussed this even before coronavirus in China when it was there. We work for customers 24 hours, but we also want to see cash then. So cash flow, as you've seen it here, of course, this won't come in every year just like this. It also depends on what phase you are in and your capital expenditure. Mr. Rosenarden of Helvetische Bank. Mr. Rosenarden, You're asking if we were to assume that the general economy in 2020 would take a dive like in 2,009, would you expect comparable sales decrease As in 2009, it was 35% at that time. Thank you, Mr. Rosenau, for remembering this so well. In fact, it's still a pain in the neck to me. Although we really did make it through the crisis more or less well. But let me pass on this question to Mr. Schruving, what he is now doing, not just now, but in fact, this has been on the strategic program to do something about the volatility of our cost. That's what your question is about. Let's go to Sinsheim to Mr. Strumming. Mr. Rosendale, thank you for that question. What we do is we try to become a lot more flexible in all of our facilities. That means smaller batch sizes, flexible, however, also means using different working hour models and making use of different ways of adjusting working hours of employees in different ways using long time banking accounts, for example. Also, we try to mitigate peaks by using temporary workers. At a global level, we try to balance capacities. We can manage to do so because the specifications of our parts and the quality of our parts are kept at the very same level in all regions, so the same look and feel to the customer. And that allows us to allow for such peaks in different regions and support them, say, with shipments from other regions. Thank you, Mr. Droubing. Mr. Burry of BBB, good morning. In the cross belt sorter business, how are the market shares distributed among high performance, the medium segment and the base segment? And what are the market shares of Intero? Let me immediately hand over this question to our Global Competence Center at Sinsheim, Germany to Mr. Schrigg. Mr. Burry, thank you for that question. And it is a question that's not all that easy to answer. At the moment, what we're seeing is a massive shift in the various segments. In the past, we've very much been active in that middle segment. Now given that e business activities are strongly increasing, particularly in the area of distribution and, Curry Express Parcel, we can see a drastic change going on. And it's more and more towards the so called hub and spoke concept. So very, very large central distribution centers plus small local distribution centers. And this kind of shift is something you can also observe in the pyramid that I showed earlier. Therefore, to inter roll, it is very important in that high performance segment to be an assault fitting there, which we've done now with our new high performance sorter. But also, we need to go into the base segment, into the so called spokes, which is exactly what we plan to do and are preparing for early 2021. Thank you, Mr. Stribing. Let me add, if I may, these high performance orders, as in the past, are a good door opener, a latch lifter for inter roll because, of course, we could also offer what's to the left and to the right of the sorter and sell it. So in addition to these new opportunities, we can also sell more other products from our LEGO kit. Next question from Mr. Fahrenhorst. Let me read out the question. Your annual increases in market share, do you see these continuing at 2% to 3% at group level or even somewhat higher at the moment, thanks to your innovation, to your advantageous organization of your production compared to local peers. The function of our innovative products also is not just to conquer market share from existing competitors, but also from competitors threatening to substitute our technologies, that is substituting our own technologies by new technologies. And this offers us new potential. I don't know whether it's the case in this area, but it's certainly our intention. So this is what we're accelerating, particularly now. Sebastian Vogel then of UBS. What share of U. S. Sales comes from the service business? Mr. Karoli could answer this. We've further extended our concept, as explained earlier. We now have more than 400 sort of running, which we also have in our maintenance. So we've certainly been able to extend market share here and increase our service business. Moreover, we've developed concepts as to how to also go into spare parts management and become better. And obviously, we'll also look at maintenance and also retrofit as areas to be addressed now. Thank you, Mr. Karoly. Let me add, if I may, concerning the specific percentages. It's about 8% to 10% at the moment. And in the long term or medium term, it will be 10% to 20%. The next question now for Mr. Barile. Are there any problems in obtaining important electronic components? Let me pass on this question to Germany, to Mr. Strobing. Mr. Barile, Mr. Barile, thank you very much for that question. What I can tell you at the current point in time, and again, I'm referring to today's day, 20th March, I can tell you that we don't have that problems at the moment. What we are doing is taking parts to be flown to Europe and partially also into the U. S. I'm certain you're referring to the corona crisis and its effects on China. At the moment, we are fully able to produce and also our suppliers are fully able to supply. We certainly hope it will stay that way, but we have installed an emergency warning system that we're monitoring on a daily basis, are in close contact with our suppliers. Next question then, it comes from Mr. Roza. With 3 new plants going live in the in 2020, U. S, Germany and China, could you please give us a CapEx update for 2020, 'twenty one, 'twenty two split maintenance and growth CapEx? As I mentioned, it's about €50,000,000 to €60,000,000 for this year. And for 2022, it's €40,000,000 to €50,000,000 And then we are returning as planned today. We're returning to the ordinary cycle of capital expenditure, which is at €25,000,000 to €30,000,000 So the difference compared to this €25,000,000 to €30,000,000 is due to this strategic spending. The rest is for maintaining the existing. One last question, which we also received, this is also on the share of material. When you look at the P and L, you can see that the share of materials has really decreased. That is the gross margin. That's good news. On the other hand, it had some one off effect in 2018 when the material share was much higher. This was due to this double digit project from the U. S. And although EBIT was good, there was above average purchased material, and this, of course, pushed down the margin. And in 2019, we didn't have this one off effect anymore. So this share is now lower. The last question which we received now, why the other cost in the profit and loss account on the other expenditure, why was this reduced by about 4,000,000 or 5,000,000? Basically, there are two explanations for this. First, we didn't use certain external partners for innovation projects because we didn't have these innovation projects. So this was certain cost which we didn't have. On the other hand, with IFRS 16, it's like this that certain long term liabilities due to rental agreements are no longer reflected as costs worldwide but are reflected on the balance sheet. And this is also the €6,000,000 to €8,000,000 of long term liabilities, which you see on the balance sheet without really reducing this liquidity of €83,000,000 So it was deducted from this. So we had cash of $83,000,000 and we deducted the $7,000,000 So the net liquidity was then $77,000,000 because these long term liabilities from rentals, 90% of it is from rental agreements, is now reflected on the balance sheet. And the cost then, some of it will be reflected as depreciation and the other part as interest. We have now received one last question from Mr. Liqueurs from Von Toebel. Can you provide details on the new market like tire industry or fashion clothing? Do you see any new markets that you want to develop? Let me pass on this question to Mr. Karli. Thank you, Mr. Lequelin. Yes, indeed, we've been able to clearly increase our business in the tire industry. There were large projects in the previous year and also the year before, and we've already identified some very interesting projects for this year. So that's quite a success, although the automotive industry isn't doing all that well, but still we'll need to buy tires for our cars. Secondly, fashion, clothing. So fashion and especially e commerce in this respect and the e commerce segment, that is also something in which we have grown quite strongly and will continue to grow strongly because obviously, we'll be seeing people changing their behavior. They'd rather shop on the Internet at the moment because they can't go into the shops. And we believe that, that will continue to be the case in the future, and there'll be less brick and mortar retail trading rather than online retail. If you're asking whether we also want to venture into new segments and invest into new segments, Then I can maybe answer it in this way. We continue to very closely look at the topic of food and want to continue to invest here in the future. Also, at the current point in time, we are seeing that hygiene issues are of very high importance. And interrole, not just with the drum motor but also other things, can certainly achieve quite something. Thank you, Mr. Corolli. Let me add. The interfaces between production and logistics are becoming more and more blurred. There are bigger potentials here. So in Production Logistics, we will also be doing things, and we'll tell you more about this next year at the next press conference. Now ladies and gentlemen, I would like to close this year's analyst conference. We would like to thank you very much for the interest you're taking in Interrole at these turbulent times. You can see that we are able to communicate with each other in this virtual format, so you can see progress in this event on virtualization. Although we are at different places, it's still working. I would like to thank you. And hopefully, we will be available again in person to discuss questions over a coffee or an aperitif with you at Zurich. All the best to you, and have a nice weekend.