Welcome to the conference call of Andritz AG regarding the presentation of the Q3 results. At our customers' request, this conference will be recorded. As a reminder, all participants will be in listen-only mode. After the presentation, there will be an opportunity to ask questions. If any participant has difficulties hearing the conference, please press star key followed by zero on your telephone for operator assistance. May I now hand you over to Dr. Wolfgang Leitner, CEO, who will lead you through this conference. Please go ahead.
Good morning, everybody. Thank you for joining us for the report on the third quarter. Overall, I think we see this summer quarter of 2018 as an average quarter and the average between light and shadow, I would say, quite different development in our business areas. Pulp & Paper, overall, continued with a very positive development. Metals, positive development with regard to order intake, profitability-wise, obviously not satisfactory. We saw cost overruns and also execution of relatively lower margin orders, our profitability there definitely is not satisfactory. Hydro, in spite of a large contract that has been booked in the third quarter, still is facing a quite low market and therefore had not overly high order intake in this third quarter. Overall, order intake for the group with about EUR 1.5 billion was good.
Let's say the relatively weak order intake in Hydro could be compensated by the increases in the other business areas. We had in the last four quarters about EUR 6.2 billion order intake. I'm confident that when we add the fourth quarter of this year, that the full year order intake should be above this EUR 6.2 billion level that we show on this rolling four quarter order intake. For the year, the sales increase in Q3, we could compensate the decline in the first half year. I think everything else in more detail when we start with the presentation on page three. Here you see the overall numbers. Order intake, as I said, EUR 1.5 billion. Attractive in Pulp & Paper and also Metals and low in Hydro. Sales increased to EUR 1.4 billion.
All business areas saw an increase compared to last year's reference period of Q3 2017. Decrease of EBITDA in Q3, despite the sales increase, practically only due to Metals, overwhelmingly due to Metals, due to cost overruns in Metals Processing as well as in executing some lower margin orders on the sugar side and also some decline in Hydro. The Xerium acquisition has been closed successfully in October, end of October, and we will call it in the future, combined with our existing activities in this field, Andritz Fabrics and Rolls. Xerium over time will disappear. On slide six, you see the development of the order intake since Q1 2015, the red line shows the rolling four quarter order intake. Good development since the first quarter of this year. As discussed, currently rolling four quarters is EUR 6.2 billion.
Geographic split more or less stable, 37% Europe, 16% North America. Developed markets combined slightly above 50%. Asia excluding China, 17%, China 19%, combined Asia quite active. South America low with 5%. Please keep in mind that the big order we received from Arauco for the MAPA project has not been booked in Q3, but will be booked in Q4. Overall, on the rolling four quarter basis, an increase of 10% in order intake. On slide six, sales development increase of 3% on a four-quarter basis to EUR 926 million and aggregate four quarters EUR 3.9 billion. Sorry, this was the capital sales, so it was a split in sales. Did I miss? No. The order intake and then capital sales increased by 3%. On slide seven, the service business increased by 9% in sales, both in absolute and in relative terms.
As a percentage of total sales, we now have 35% of sales in service. Obviously, the acquisition of Xerium, which is 100% aftermarket sales, will increase this percentage and provide a more stable basis going forward in terms of both order intake sales and also, hopefully, profitability. On slide eight, order backlog increased by 8%. As always, the biggest order backlog is in Hydro, with 39% of our total backlog of EUR 6.9 billion. Pulp & Paper, 31%. Again, will increase when we book the large order from Arauco. Metals, 23%. Slide nine. Earnings. In Q3, on the left side, you see EBITA went down from EUR 99 million to EUR 86 million, minus 13%. Metals basically is mostly responsible and Hydro also to a certain extent responsible, however, from a very high level in last year's Q3.
On the right side, the first three quarters at EUR 252 million, down from EUR 306 million. If we exclude the one-time effects of EUR 25 million, mostly due to this sale of the Schuler technical center in Tianjin, then the decline is 11%. Still disappointing, and we certainly are not happy with that. In the first nine months of this year, our EBITA profitability went down from 6.8% on the comparable basis to 6.0%. Slide 10. The split of profitability between the business areas. Hydro went down from 6.8% in the first three quarters to 6.0%. Pulp & Paper, continuing very attractive profitability. Slight increase from 8.8% to 9.0%. Metals on a comparable basis, 5.1% down to 2.6%. On face value, 7.1% last year to 2.6%. Separation, stable profitability of 4.6%. Slide 11. Overall, the figures. We see some highlighted comments.
Financial results went down slightly from minus 0.8% to minus 5.8% in the first three quarters due to lower average net liquidity and lower interest rates in Brazil, as well as the higher interest costs for the bonds for General Electric we have issued in June last year and August of this year. Cash flow decreased mainly due to lower earnings as well as change in net working capital in both sides. Higher POC receivables and lower POC payables. Net liquidity declined as a consequence of payments for acquisitions. Obviously cost overruns also play a role, but basically it's a question of a change in net working capital increase in receivables and decrease of payables, both project related. We can then move on to the business areas, slide 13. Hydro, basically unchanged given the market environment.
The project tends to be, as always, if when the market is not booming, then you wait for the project and you notice more strongly that projects tend to be shifted and postponed and not be decided the way you hope they are decided. I think this is what we continue to see. Pumps, overall good development. Competition in Hydro, I would say is stable. We obviously in a smaller or lower market, competition is tough, but I would not say that it is getting tougher or that prices are under more pressure than they have been over the last actually few years already. On slide 14, the numbers. In Q3, we booked EUR 303 million, which is down from EUR 425 million last year. It was a good quarter last year, EUR 300 million obviously is not a very high order intake.
In the aggregate, we are now at EUR 1.06 billion, up from last year. The first three quarters last year have been extremely low. It is still a relatively low order intake. It basically follows our, I would say, defensive scenario, where we have always said that we will adjust our capacities to this level, and would not wait and hope to see a substantial uptake in order intake. Sales are slightly up in Q3, practically the same for the first three quarters. EBITA, with EUR 65 million for the first three quarters, down from EUR 73 million. Q3 last year has been a very good EBITA. It's a consequence of developments in the execution of the Hydro order backlog. I think the regional split does not deserve any special comments. On slide 15, Pulp & Paper. Good development.
As I've said, this Arauco order for more than EUR 300 million will be booked in October or in Q4 of this year. Overall, continuing good activity. The overlay in Pulp & Paper. We continue to be optimistic and that we can see a continuation of both high project activity and also a continuation of the good profitability or excellent profitability that we have achieved. It is also supported by high activity in the power generating boilers, biomass boilers, where we continue to be successful in Asia, both in China and in Japan. From a competitive standpoint, I think on the pulp side, we are in a good position. We have developed good technologies and therefore also it's another reason to continue to be confident with regard to the future development of this business area. On slide 16, the numbers. Q3 order intake EUR 545 million, up 28%.
First three quarters up 11% to EUR 1.7 billion. Sales are up 6% for the quarter and 3% for the first nine months. Service sales increased nicely also. EBITA with EUR 136 million in the first nine months at 9%, very attractive for the quarter, slightly lower. This is on a very high level. This is just, let's say, volatility of the capital sales and sales execution. I think that's Pulp & Paper. On the next page, Metals. Metal Forming, overall reasonable project activity. We are a little bit concerned that there's a very special situation in Germany, where the large car manufacturers, OEMs, struggling with the new permitting of their models with regard to emissions. This has led to substantial reductions in production, and this could result in postponement of one or the other expansion project.
Not long term, but could mean that this moves from planned Q4 decision into Q1 or Q2 2019 decisions. Therefore, we are a little bit more cautious on the order intake on the Metal Forming side in Germany regarding German car manufacturers. China continues to look good and active. Metals Processing looks very good, very active. There we expect good project activity also in the U.S. I think we start seeing activities related to the change in the U.S. trade policy that there is an incentive to produce certain steels, for example, being supplied to the automotive industry in the U.S. that could result in one or the other investment project in the U.S. Price level is still very competitive. Volume wise, I think we are somewhat more optimistic on the Metals Processing side than we have been recently. Slide 18, the numbers.
Order intake substantially up in the quarter, up 39% to EUR 456 million, and first nine months up 23% to EUR 1.4 billion. Sales are in the quarter slightly up, in the first nine months slightly down. EBITA, we have discussed already. Cost overruns quantify, I would say, in a very low double-digit numbers in cost overruns on projects and also execution of some lower margin projects. For example, also the Schuler projects serving now the domestic car industry in China, but also in Vietnam, for example. Profitability is clearly unsatisfactory. Slide 19, Separation. Reasonable good project activity. Municipal active, especially China continuing to be active. Also industrial, quite active. Mining industry, quite active. For example, South America, specifically Chile. Feed & Biofuel also satisfactory. Price-wise, as usual, I would say. Slide 20, the numbers.
Very slight increase in Q3, up 2% and the first nine months up 15% to EUR 550 million. Sales are up by 14% for the quarter, 9% in the first nine months. EBITA margin practically unchanged. To conclude with the outlook. For 2018, we continue to forecast flat sales and solid profitability excluding the one-offs. Overall earnings and profitability will be significantly lower due to provisions of well above EUR 20 million that we will make for capacity adjustments in Metal Forming, Schuler and the remaining adjustments in Hydro. Predominantly it will be the Schuler. Excluding this one-time effect, our profitability should reach almost the level of 2017, excluding the extraordinary effects, which was 7.1% compared to reported 7.5%. Overall, stable environment. Nothing to complain about. We have to work on our profitability, especially in the Metals area, both Metals Processing and Schuler.
We do not expect a dramatic change, a dramatic pickup in Hydro. We are continuing and completing actually our adjustments on the Hydro side to adjust for this lower market size while maintaining and regaining the old profitability in the Hydro area. Much my presentation and now your questions are welcome.
Thank you very much. We will now begin our question and answer session. If you have a question for our speaker, please dial zero one on your telephone keypad now to enter the queue. Once your name has been announced, you can ask a question. If you find your question is answered before it is your turn to speak, you can dial zero two to cancel your question. If you're using speaker equipment today, please lift the handset before making a selection. One moment please for our first question. We've received the first question. It comes from Andreas Willy of JPMorgan. Your line is now open, please go ahead.
Good morning, Dr. Leitner. Thanks for the time.
Good morning.
I have three questions, please. The first one on cash generation, which has remained relatively weak, as you said, on the project working capital. Given that the orders have started to pick up a bit, I would have expected that to start leveling out in terms of cash conversion. Can you confirm that there's no underlying deterioration in payment terms, and this is just a question of timing of prepayments and so on, that the cash conversion still hasn't improved much? Second question on Xerium. If you could just tell us which date you will consolidate that from. 1st of October or 1st of November, and what the impact on the financials will be when you first consolidate it in terms of acquisition costs that you may book or also then the amortization of the purchase price going forward. The last question on the mid-market strategy in Schuler.
If you could give us a bit of an update on that, how that's going in terms of new sales that you achieve outside the traditional high-end German automotive market. Thank you very much.
Thank you. With regards to cash generation, obviously we are watching it very closely. We're watching also very closely the development of our net working capital. There is no large or significant change in payment terms. I can clearly confirm that. What we have been seeing is, as I said before, an increase in POC receivables for various reasons. It's a number of projects. There's one Russian project that is suspended, but which we expect to be restarted, if not this year, then very early next year, which would result in a sizable amount of payment. There is no risk that this will not be paid, but the question is when can we realize the sales? When can we realize or continue with the execution and with that, the payment would be due. Other increases in POC receivables and also our payables have declined.
Partially because of profit realization, but partially also because of payments that have been made to suppliers. With regards to payment terms being agreed in our orders, in our projects, there's no change other than the regular variations within the project that have always been the case. It's basically driven by project-specific execution issues. The second question was Xerium. We will consolidate Xerium from October 1st onwards. We expect for Q4 2018 sales of close to EUR 100 million, most likely. EBITA will be practically zero because the operating EBITA would be balanced by acquisition costs that will be booked in Q4 also. For 2019, we expect sales of Xerium in the range of EUR 400 million and EBITA in the range of up to EUR 60 million. Amortization will be in the range of EUR 30 million. There will be some tax advantages.
Xerium has tax loss carry-forwards. We expect to be able to use part of it. There may be some moderate positive impact on the tax rate. Much to Xerium. Your question to Schuler mid-market. We are continuing to work on that. There have not been any large orders in this field, we are making good progress on adjusting our products to the needs of this mid-market. Also to make sure that the orders we have booked in this field are executed at or below the cost that we have forecasted. Basically good progress, no sensational new orders in this field.
Thank you.
Thank you. We have a next question. It comes from Jörg-André Finke of HSBC. Please go ahead. Your line is now open.
Thanks. Good morning, and thanks for taking my questions. First one would be a follow-up to Andreas' question on the working capital side. Can you remind us, when we look at a large project like the one from Arauco, for example, in the fourth quarter, how the working capital and cash profile will look throughout the project? What kind of prepayments will we get at the beginning? What kind of milestone cash payments will occur? Has the pattern changed relative to larger projects a couple of years ago? The second question also relates on pulp. Maybe you could give us an update on your view on the pipeline of larger projects going into 2019. On the capacity adjustments in Metals and Hydro.
You already said the majority is in Metals, can you be a bit more specific what exactly you are doing in Hydro and whether we should expect more to occur potentially beyond Q4 in terms of structuring? Thank you.
I probably will have to ask you for the third question because I couldn't understand it completely. Number one, the payment terms. Obviously, I'm not going to go into specifics of the Arauco order, but typically, we get a down payment in the range of 5%, 10%, up to 15%. Typically, I would say in the range of 10%. Then we get progress payments as we execute the order, which in the case of, let's say, a full pulp mill or a half a pulp mill, execution takes about 2 years. It starts with some minor payments for the engineering phase as we begin shipments, which typically start, I would say, nine months after the booking of the order and continue until a few months before startup. These are progress payments as these shipments are made. Typically up to 80%, 90%, 95% of the order value.
The rest being then paid at startup, after startup, after preliminary acceptance. Typically, a small amount, a few percent is kept back until final acceptance. Typically, can be released against a bank guarantee. The cash flow in the beginning is first few months typically is slightly positive during execution. Continues to be, in a good case, slightly positive, in a not so good case, slightly negative. At some point, changes, if it's profitable, into the positive side. There can be, depending on payments to suppliers and so on, it can be obviously, can be months where it's substantially positive or towards the end can also be a time where this becomes negative. That's the question of the large pulp project. Project pipeline in pulp continues to look positive.
If you look at the announcements that have been made, we have seen acquisitions of two companies in Brazil. The acquirers of both companies have signaled they want to proceed with a large expansion. In one case, it's unclear who is the owner or who will end up as majority owner, so that may be delayed. The other one is committed to proceed rather quickly. I think there is still in the market, the pulp mill that UPM is planning to build at some point of time in Uruguay again. There are some projects in Russia, projects also in other areas. We are quite confident that next year should see. Not all of these projects will be actually started or decided next year. I think that would be too optimistic.
There are so many announcements and tangible projects on the table that I'm very confident that the activity in pulp investments next year should be at least on the same level as this year. What we get of that remains to be seen. With our good position technically there, I think we can be also optimistic that we get our fair share of these investments next year. The third question, I did not understand what the.
Just to repeat, it was related to the Hydro restructuring where you
Yeah.
I think you said most of the restructuring costs will be occurring in Metals, but you also referred to Hydro in the report. I just was interested what kind of measures you are taking and whether that could be continuing into 2019, i.e., should we probably expect more restructuring costs in Hydro next year?
Yeah. No, we have done the vast majority of the capacity adjustments. Yeah. It's across the board, a reduction in basically manpower, combining centers of excellence, et cetera, just adjusting to a lower market. The majority of what has to be done and what has to be paid is behind us. This year it will be definitely in the single digits. It may continue next year in the single digits, but nothing dramatic to be expected.
Okay. Thank you. Maybe as a last follow-up on your underlying margin guidance, with regard to almost up to 7.1% you've seen in 2017. It would still imply a very reasonably strong fourth quarter, profitability-wise on an underlying basis, excluding the restructuring costs. Is any special positive impact we should factor in for the fourth quarter here?
No, it should be just typically our sales are higher. Obviously we look at the orders execution, where we can release certain provisions. Obviously there's no guarantee for the results, but we would not give the guidance if we would not be confident that there is a good chance we can achieve that.
Okay, many thanks.
Thank you. We have a next question. It comes from Sven Weier of UBS. Please go ahead. Your line is now open.
Yeah. Good morning, Dr. Leitner.
Good morning.
Three questions from my side. Maybe we can go through them one by one. The first question would be on Hydro and the project pipeline. Is there an impact also from the turmoil that we've seen in some of these emerging market currencies? Is that also leading to delays or do you see other factors that had an impact on the project decision-making? That would be the first question.
Not to a large extent, I would say. The Hydro market continues to be impacted by the situation in Brazil. Let's see how that will develop with the elections behind us and the new president. It continues in Turkey. There, maybe there is some improvement in the business spirit in Turkey. Both countries definitely are continue to be impacted by the respective situation. Overall, it continues to be impacted by solar and to a lesser extent by wind capacity additions. I would not see any new trend or new impact in the last quarter, last several months.
Okay. Thank you for that. The second question is on Q3, specifically on EBIT. I think you said that the cost overruns in Metals amounted to low double-digit amount. I was just wondering, is that for Q3 specifically? Then I also saw on your cash flow statement that you had a kind of a EUR 7 million disposal gain. I was just wondering which division that was. That would be on Q3.
I can confirm there was a very low double-digit cost overruns was specifically in Q3, yes, in specific projects. The one-time disposal gain, Michael, this I pass on to you. What was that?
I think it refers to the Metals business area.
Okay. Good. Then just lastly, maybe following up on Jörg-André's question regarding the full year guidance, because obviously also your guidance does now include the pro rata contribution from Xerium, where you said there's going to be kind of zero EBIT impact, though. On the back of the envelope, I get to an implied Q4 margin of 9.5% to reach the guidance, which is something you never had before. Is there any division that sticks out positively in terms of margin delivery for Q4, or do you see that really across the board?
It obviously would have to be on the Metals side. Probably also on the Hydro side to a certain extent, yeah.
Okay. Pulp just remains on a very good level.
Overall, sales should be higher, obviously, which would also would help.
Okay
which would apply to all four, most likely.
Okay, understood. Thank you, Dr. Leitner.
Thank you. The next question is from Daniel Leon of Erste Group. Please go ahead. Your line is now open.
Yeah, good morning. Thanks for taking my question. Actually, there's one left for me, which would be Xerium again. Could you maybe talk a little bit about synergy potentials when consolidating Xerium going forward? What would you expect, and in both related to revenues and market as well as cost-wise?
Yeah. Obviously, we are confident it's a very good fit because it's aftermarket. It's serving mostly the paper industry. It comes with 28 locations serving the paper industry, which will improve our presence in this market very substantially. Now keep in mind that approximately half of Xerium sales are in fabrics and the other half is in roll service. On the fabric side, we have already a small company, Kufferath, since several, many years actually, in the range of somewhat towards EUR 30 million-EUR 40 million sales. On the sales side, there may be some overlapping customers that could result in slightly, probably single-digit loss of sales. On the other hand, there should be probably single-digit loss of sales.
On the other hand, there should be synergies on the sales side because of the improved presence and improved presence in the mills, where we expect a general positive impact on our aftermarket sales in all the area for all products serving or going into the paper industry. We see cost synergies or cost reduction opportunities on the one side. Xerium so far has been an independent public company at New York Stock Exchange. Obviously, there are costs that will not have to be continued and that should go directly into the bottom line of Xerium. By combining the Xerium activities with our existing activities on the fabric side, obviously there should also be cost and will be cost synergies in all the areas like sales, like product development, like manufacturing, et cetera.
That overall, we expect to definitely be able to improve the profitability of the combined activities.
Okay. Thank you very much.
Has that answered the question?
Yes. Thank you very much.
Thank you.
Thank you. The next question comes from Jack O'Brien of Goldman Sachs. Please go ahead. Your line is now open.
Hi, good morning. Thanks for taking the question. Just want to ask another on Metals. Profitability through the first three quarters at 2.6% from 5.1% last year. Can you just help give me some color on these cost overruns, how long we're expecting those to continue, the impact they've had through the year? Secondly, let's start there. Thanks.
Yeah, it's the same project that we have already discussed in the half year. There are a few others. It's generally due to the competitive situation in general Metals market, not in the forming market. Obviously, the price levels have been quite low that we had to book the orders the last several years. Nothing has changed there. Rather, prices are starting to improve somewhat going forward, I would say, due to the increased activity. On the backlog, margins have been low, and therefore, although already minor cost deviations obviously become visible also and immediately in the gross margins that we can realize when we execute these orders and convert them into sales. Beyond that, on the Metals Processing side, no special large projects or anything that is a big risk or a big shadow going forward. These are minor deviations, nothing dramatic.
As far as we see it, well under control and nothing where we see a substantial risk going forward.
Okay.
On the Forming side, we saw especially low sales on the service on the aftermarket side, combined with low prices or low margin that we knowingly accepted to get into this mid-market in Asia. A combination of the two, plus some minor cost overruns, again, caused by increased visibility due to overall slightly lower price levels, caused this decline in the overall profitability for the Metals business area.
Given the lower margin quality of the order backlog, would we expect these somewhat lower margins to persist through 2019?
On the Metals Processing side, I would be optimistic that we should be able to see a slight increase, because as I've said already last time, I think also price quality has slightly improved. On the Forming side, I think this remains to be seen. As we have said, we are there with a new CEO. We are in the process of resizing again Schuler. We make several organizational changes, combining divisions, et cetera. We are just in the budgeting process, so I would not want to give guidance on Schuler right now.
Okay, thank you. Just one final question then on Hydro. This year we've seen sales slightly up and also slightly up in the third quarter. Obviously the margin's come down, despite a higher proportion of service sales. Again, is this about really the margin quality of the backlog? I noticed that employee numbers is largely flat year-over-year. I guess this isn't predominantly a utilization issue. Is this about really the backlog quality?
It is the backlog quality, you should not rely or not conclude too much of the employee number because they are correct, but they are distorted by hirings and terminations for specific construction sites where we do the installation. Hydro typically does not hire sub-suppliers, but employs the respective people, which can be several hundred on a specific construction site. You should not put too much emphasis on the employee number. The permanent employee numbers aside from construction sites is going down quite substantially, but it's not visible due to these construction or site-specific activities.
Okay, thank you very much.
Thank you. We have a last question. It comes from Graham Phillips of Jefferies. Please go ahead, your line is open.
Yes. Good morning. It's Graham Phillips, from Jefferies. I was going to also ask about the margin in Hydro, given the strong service. If you could just expand a bit more about that. Also in Pulp & Paper, we had a very strong service, and yet the margin was down. Can you talk a little bit about what's happening to the margin in Pulp & Paper?
The topic Pulp & Paper. I think the slightly lower margin in Pulp & Paper is, I would say, typical volatility depending on sales realization. Far or currently, we do not see any negative impact in Pulp & Paper. Obviously, there is a mix of orders in execution and a mix of margins in these orders, but there is no special event that would justify to say that something is worse than it used to be last quarter or last year at the same time.
There was no major provision of any significance to mention in the quarter in Pulp & Paper?
No. Nothing. No.
Okay.
No
Yeah. In Hydro Service, is there not increased competition in Hydro Service, given that obviously the equipment orders are very weak?
No. Obviously, yes, there are companies that may have not been as active as we have always been in the aftermarket, in the service market. Small hydropower plant market has become more active there, but that has happened already a few years ago. It remains to be seen when our competitors are publishing their numbers. As far as we know, I do not think that we have lost market share in this quarter or this year. In this respect, I think exactly the consequence of that, the price competition, the service has intensified. I don't think so, no. I would say it's more driven by what can we do to reduce our cost base in this area, and we have several activities going on there. I would say our main competitors in the aftermarket are not the big ones, big competitors, but are the smaller local competitors.
This is unchanged, basically.
Okay, thank you. Just finally-
This is unchanged, basically.
Okay, thank you. Just finally, up to EUR 20 million. Well, it is going to be more than EUR 20 million. I don't know if you can give us an idea how much bigger than EUR 20 million the restructuring charge may be, and how much will go into Hydro. Will this put Hydro back into its margin corridor next year once you have done the restructuring in Hydro?
It will not be much above EUR 20 million. The majority would go into Metals. We hope that Hydro, we can bring back up to the old levels. We are putting much more emphasis on the quality of order execution in Hydro also. As the prices have to be more competitive, the room to absorb cost overruns, certain limited cost overruns has decreased, and therefore we must increase the accuracy of our order execution. There clearly, I think there need to be certain actions to be taken, which we are in the way of to take them. I am confident we can bring it up. I think it will take a few quarters. It will not take years, but it will take a few quarters.
The old margin, you mean the 8.5%-9% target?
The margin to start with an eight would be the next goal.
Thank you very much.
Thank you. As there are no further questions, I would hand back to you, Dr. Leitner.
Thank you very much. We will do our best to fulfill the challenges of the fourth quarter to which we are aware that we need to achieve a lot to come back beginning of next year with an actual result in line with our forecast or our guidance. Thank you very much.
Ladies and gentlemen, thank you for your attendance. This call has been concluded. You may disconnect.