Ladies and gentlemen, thank you for standing by. I'm Nadia, your operator today. Welcome, and thank you for joining the AT&S Conference Call on the Results for the First Half-Year 2022-2023. Throughout today's recorded presentation, all participants will be in a listen-only mode. The presentation will be followed by a question and answer session. If you'd like to ask a question, you may press nine and star on your telephone keypad. If any participant has difficulty hearing the conference, please press zero hashtag for operator assistance. I would now like to turn over the conference to Mr. Philipp Gebhardt.
Thank you, Nadia. Good afternoon or morning, ladies and gentlemen. Welcome to the AT&S H1 2022/2023 Conference Call. With us today are Andreas Gernstenmayer , and Petra Preining, CFO. Mr. Gerstenmayer will start with a brief overview of the key developments of the fiscal year, half year, and a market update. Afterwards, Ms. Preining will comment on the financial figures and our guidance. As Nadia mentioned, the presentation will be followed by a Q&A session. Now, I would like to hand over to Mr. Gerstenmayer. The floor is yours.
Thank you very much, Mr. Gebhardt. Also a warm welcome, good morning, good afternoon from my side, to our first half-year's earnings call. Allow me to get started with the welcome note to Ms. Preining. On our side, you can imagine I'm happy that we have Ms. Preining finally got as our CFO. Yeah, I think we will move from here and try our best to fulfill the expectations of the market. For today, we have prepared a brief overview, especially also about the market and the recent development of our environment. I will walk you through that, to give you a flavor what is our view on the latest developments.
Starting with slide two, what we obviously can see from the numbers, we had a very strong revenue growth of around about 53%, in the first six months, which was driven mainly out of the additional substrate capacities in China, Chongqing III. But also the other business areas like automotive, mobile devices and others contributed nicely to it. We also see that the premium phone, smartphone business, but also mobile devices in all are nicely growing and showing quite some robust situation. Nevertheless, we have also recognized significant FX effects on the top line, as well on the bottom line, which will be covered by Ms. Preining later on.
Regarding our investment projects, you know, which we are driving in Chongqing, which is coming to an end at the end of the fiscal year in Kulim and in Austria, Leoben . They're all fully on track. Also regarding recruiting, we are nicely moving ahead. All the projects have also acquired the necessary manpower that was planned. In almost all of the cases, we are slightly ahead. I think this is remarkable in the light of the global labor shortage, especially the regional labor shortage in Europe and other places like also sometimes in Malaysia, which is a competitive market. As you have seen from our release, we were able to confirm the guidance for 2022, 2023 fiscal year and also our midterm guidance, 2025, 2026.
Just reminding you, the fiscal year guidance is already the increased one, which the increase was announced in June, and still we are able to confirm that. Nevertheless, we have started taking care of foreseeable more volatile environment in the near future. I'm sure this is not coming as a surprise to anybody because I think the global economy shows certain impact from energy prices, from inflation and all these kind of things. I'm also sure you could assume that AT&S will not be able to completely keep itself out of the global economical development. What are we doing? Just some examples about that on slide three.
There were some concerns if in, especially in Europe, we are able, if there is shortage in energy supply, shortage in gas supply, how can we maintain our operations? Both locations in Austria are equipped in a line that we can switch between gas and oil supply on the short term. We are very safe in that regard. In the long- term, we anyhow plan to move away from fossil energy, more towards renewable energies, like we already have started it in our new projects in Kulim, but also in the R&D center project in Leoben, Austria. Regarding supply chain, which was always a concern in the last calls, we can confirm that we do not see any significant issues there.
It's more or less business as usual with heightened attention to maintain any upcoming issues, if any. Therefore we can state their supply and sourcing is on a stable path. Situation. Regarding other activities, you know, we are in an intense investment phase. I think it's our responsibility to be careful what is happening around us. If any kind of volatility in terms of demand and other changing market environments would kick in, we will review our CapEx spending profile and decide time to time if there is any adjustment necessary or not. The same is true for our cost and working capital optimization. This is activities we have always running, but we intensified the efforts there, so to be well- prepared if anything would happen around us.
For sure, we also observe very closely everything that is happening in the market with our customers, applications, competitors, and so to be able to react and prepare ourselves for any kind of changes. This is just the experience we have gained over years out of several crises we have successfully run through, and also have created the opportunity to strengthen our way forward and improve our performance once the crisis ends. I think this is nothing new, but we again need to enter into that special mode because of the latest development of our environment. Midterm, slide four, we are very confident that the big trends like digitalization and electrification of the global society are very strong and robust. They will continue.
Even if we have potentially now an intermediate phase of a kind of market consolidation, we are very convinced that in a certain period of time, things will come back and will be driven by these strong trends. For that, we are very nicely prepared with our technologies, with our capacities, and also with our customer portfolio. Also there, our outlook is quite positive, and we are very convinced that AT&S will be benefiting from these trends, which was expressed by the confirmation of the midterm guidance. Having a bit of an overview how we see the market segments or the main most important market segments we are in, starting on slide five with the market of computing, communication, consumer. Which shows a little bit of mixed picture.
Computing, especially when it comes to client computing, is 2022 a little bit down. It was also reduced from the peak, COVID peak. On the other hand side, the communication segment is still strong. Transformation towards 5G protocols is still ongoing and showing nice growth and stable growth. The consumer sentiment, as I said before, is potentially the most impacted one by the current economic environment, driven by the inflation and the energy prices. Long term, as I said, digitalization will support this segment and will also support future growth as well. Slide six, automotive, industrial, medical, aerospace, all these businesses have solid growth rates, mainly driven in the automotive area by the need for catching up the backlog generated through the chip crisis or the chip shortage, I should say.
They are still in catch-up mode there. As the same is true for industrial business. Medical was always strong, had a slight dip in 2020 when the hospital and the treatment of the patients was focusing on COVID patients, but after that, the recovery was fast, and is still ongoing, and the market is growing. Aerospace is more now turning towards the lower Earth orbit satellites business, which is also supporting communication infrastructure mainly, and also being driven by that need to provide better connectivity to certain areas on the globe. On slide seven, you can see that also on the mobile device area, especially the smartphones, the premium phones, which are somehow closely linked to the 5G applications, are nicely developing, and the transition rate is quite significant over the next couple of years.
This is the market AT&S is mainly engaged with. We are not so much engaged with the commoditized markets and the pure mid or low-end phones and devices still available in the market. We can grow with the 5G phone market and also observing a quite nice demand sentiment. On slide eight, it's a quite strange picture, but I think it shows exactly what is happening out there in the market and should give you a little bit of a flavor what is really keeping us busy in the area of client computing and server computing. The [petrol] line here is representing the over a couple of years development in the client PC area.
You can see there was a strong growth trend until 2014, driven by notebook and tablets. Later on, there was several year-lasting declining trends between 2014 and 2020. In 2020, this is what we call the COVID boost. The market significantly recovered and a lot of customers experienced the need for real professional computing. They also experienced that with notebook and with smartphones and tablets they cannot really work. That put the notebook in a new picture. From there, still people will experience further need for notebook applications, but the big boom period is a little bit over. Simply, people are returning to the offices, children returning to school, and so on and so on.
On the midterm, you see also the dotted [petrol] line is showing an increasing trend or a growing trend and also shows opportunities to grow. Similar picture we see with a little bit less seasonality in the server market, which is mainly driven by cloud computing, data centers, artificial intelligence applications, simply summarized by big data applications. That has constantly been growing, accelerated the growth since 2017, again in 2020, and on average, showing a very nice growth trend for the future as well. How does that impact AT&S business? This is shown on slide nine. I will not go into all the details here because we have shown this slide several times already.
Just reminding you the technology trends that the architecture of microprocessors is in change from single chip packages to heterogeneous integration, which means chiplets and multi-die packages. The impact on the IC substrate is the size or the footprint of the substrate will increase, the layer count will increase, and therefore also the value of the component substrate will increase. Means we can observe a value-driven growth in that business segment, which is nicely supporting our future outlook in terms of growth and profitability. I simply would switch or jump over slide 10. I think this is what I already talked about verbally. I immediately go to slide 11. Here you can see the growth rate or the development for the IC substrate package solutions.
In total, we expect a growth rate between 2022 and 2026 of about 7.1%. Within that, the server business is driven by 6% average growth rate, so this will be the majority of the growth generator. Therefore it is clear that AT&S, in terms of technology, capabilities and capacities, over time is more and more focusing on the server business and also being in touch with the most important customers there. Brings me to my last slide. What we are creating with our investment in the area of IC substrate is like we call it the IC substrate triangle, wider triangle.
On top there is the upcoming R&D center in Leoben, which gives us the opportunity to further provide new technology, innovative technologies for the back end in the semicon industry, for packages and for microprocessors. On the other hand side, also provides us the opportunity for customer diversification. We try to onboard customers in future through Leoben with new technologies and then transfer the customers once they are on high volume production situation to either Chongqing or Kulim. Nevertheless, the intermediate solution, once now the markets are consolidating a little bit, we are already reaching out or we are already addressed by certain customers in the IC substrate business, and we have already started diversifying the portfolio there and we are quite successful in doing so.
The expectation is that the customers will mainly ramp over the next couple of quarters. We are in qualification with some of them and will also benefit from that activities in the coming quarters and years. This is very fast. The overview about the latest development summarizing short-term annual guidance confirmed. We are quite confident that we can achieve that. Midterm, all the trends are intact. Expectation is that the midterm guidance will be kept and we are progressing nicely with all the projects we have in place. In parallel, we prepare ourselves in case anything is happening on the short term during the turbulent times around us. Now I hand over to Ms. Preining to run you through the numbers, and then we are open for your questions.
Thank you very much, Mr. Gerstenmayer, and a very warm welcome also from my side. I'm delighted to run you through the numbers of the first half of the fiscal year 2022-2023. Some of you might still know me from my recent times at Semperit AG Holding, so I'm sure I don't need to introduce myself, as my CV is also public. One thing I have to stress, however, it's a very comforting situation to have the first half year call presenting such good numbers, even though the credit for those numbers is definitely to be found with the colleagues, my colleagues, Mr. Gerstenmayer, Mr. Schröder, and Mr. Schneider, as well as the entire AT&S team. Turning the page, thank you very much. Mr.
Andreas Gerstenmayer has already pointed towards a very, very nice result. We have been able to achieve for the very first time a revenue of more than EUR 1 billion, to be very precise, EUR 1.07 billion, which it also leads to an increase of 53%. This turns into an EBITDA margin, EBITDA reported of 29.5% and an EBITDA adjusted margin of 31.3%. EBITDA adjusted, just for your information, unless it's not clear, is excludes the startup costs for materials and wages in relation to our investments, our big CapEx investment. One important information which we have also highlighted on this first slide is that the positive top line growth is also affected by tailwinds of FX effect in the amount of EUR 116 million.
The important exchange rates to be mentioned in that respect is the Hong Kong dollar and US dollar. Turning the page now, what we have said as a teaser on page number one is now written in absolute numbers. The EUR 1.07 million in revenue turns into EUR 315 million in EBITDA, which leads to 141% increase from the previous period, half-year one 2021, 2022. Even better, I'm very delighted to present the increase in net profit. We are able to present a net profit of EUR 224 million, which leads to an unbelievable 1,129% increase.
I have to be very honest, I have never had the chance to read out such a number and present such a number. Let's see how this will develop further. Where does this revenue increase come from? Mr. Gerstenmayer has already pointed to it clearly on the back of our CapEx increase in Chongqing. When you look at the EBITDA reported column in the middle of the slide, the increase is highly driven by our business unit MS. Turning the page, as we not only report half year, we also obviously report quarterly results. This is mirroring the results I have just explained to you.
Also on a quarter-by-quarter development, we show a very nice increase of 49%, which leads to a record level which we have never had been able to present before. As mentioned already, growth mainly driven by increased capacity coming from Chongqing, higher revenues, and the tailwind of FX effects, also improve the margins. Looking into the business units, starting with Mobile Devices & Substrates, this slide very much is a copy of what we have just seen that makes it very obvious where the increase comes from. Chongqing capacity, as said, driven by a very strong demand for PCB for modules. Also clearly increases the EBITDA margin. On the business unit AIM, Automotive, Industrial, and Medical, a picture you might have seen in the past.
Though we are very pleased with the increase of the top line by 21% quarter-over-quarter, also supported by FX. We see the margin clearly under pressure. You might ask, why is this? The answer to this is driven by the start of cost and higher R&D expenditure here in Leoben on site, but as well from IPCEI funding. IPCEI stands for Important Projects of Common European Interest. Here we have a delay in receiving the grant, so we do have the cost in our books, but the grant will be received as soon scheduled now in Q3 for this fiscal year.
On the next two slides, I would assume the points which might interest you most, our financial position, starting with cash and cash equivalents and unused credit lines. We have a very solid balance sheet, which shows EUR 1.341 million cash and cash equivalents in unused credit lines. This is clearly, there's a clear headroom over those with this balance, which is reserved and meant for our strategic growth projects. Additionally, we, as you do know, we have been able to sign and close a hybrid bond placement by the last quarter of the last fiscal year, which was very successfully signed. Turning the page, the debt side of financing. Here we show you the maturity on outstanding debt instruments.
A couple of things I would very much like to share with you. Point number one, no significant repayments are due this fiscal year. Point number two, EUR 421 million, which you see, which is smaller than one year or less than one year, so due in the next twelve months, are already secured according to our liquidity planning. Point number three, a little shy of 50% of our debt instruments have fixed interest rates so are not affected by interest increases. Point number four, our current financing costs are at 1.4%, which will clearly increase over time, but as I just mentioned, only affected by approximately half of the debt.
Finally, as you do know, we also will receive further customer payment, prepayments, over the coming periods. On the balance sheet, I've brought four KPIs for you, which might not come as a surprise. Total assets have increased by 15%, of course, on the back of our ongoing expansion in customer prepayments. Equity also nicely increased by 19%, clearly driven by the very good results and FX translation effects, leaving us with an equity ratio of 34.5%, 1.1 percentage points higher than in March 31st, 2022. Finally, a net debt to EBITDA ratio of 0.6, which equals the ratio we have been able to present at the end of the last fiscal year.
All this leads obviously to the last financial slide, which is reserved for the cash flow. The cash flow from operating activities very nicely increased to EUR 366 million, of course, on the back of better results and customer prepayments. The cash flow from investing activities will not come as a surprise to you based on the gross CapEx projects Mr. Gersemayr has just restated and presented to you, which leaves us with an operating free cash flow of -EUR 124 million. Finally, in line with what Mr. Gersemayr has already confirmed to you, we have been able to confirm our guidance with the full.
We have been able to confirm the guidance with a mid-single percentage range below the higher number we have shared in June with you, which is in line with the usual market capital markets communication. All other KPIs and data which have been communicated to you in June remain unchanged. Also unchanged is the mid-term guidance we have been presenting to you in September last year. We are based on the explanation Mr. Gersemayr has shared with you earlier, convinced that the revenue of EUR 3.5 billion is achievable in the period 2025-2026. This is it from my side. Thank you very much. I hand back to Mr. Gebhardt, who will now take your questions.
Yeah. Thank you, Mr. Gerstenmayer. Thank you, Ms. Preining. We will now start the Q&A, and in order to give everyone the opportunity to raise questions, we would like to ask you to limit yourselves to two questions. Once we are through, if there are still questions and still time, we will start another round. Now I would like to hand over to Nadia to handle the session.
Thank you. Ladies and gentlemen, if you'd like to raise a question now, please press nine and star on your telephone keypad. In case that you'd like to withdraw your question, please press nine and star again. Please press nine and star on your telephone keypad to ask a question.
The first question comes from Patrick Steiner. Your line is open now.
Good afternoon. Thank you very much for taking the question. I've got two questions. The first one would be, we've seen that Intel, AMD have been reporting substantial declines in the sales and operating profits in their client business over the last two-three quarters, mainly due to lower consumer demand, OEM inventory reductions and lower ASPs. Could you give us some more information how this affects or will affect your ABF substrate business in terms of volume demand, pricing, plant utilization, for example? And, if there's any chance to increase the server share in the product mix as a result? Thank you.
Yeah, typically we are not commenting on specific customers, but I can comment on the market segment. What we see is, and what I also stated before, is the more consumer-related demand has seen some impact from the economic environment. This is true. This also we could observe. On the other hand side, the server cloud computing business showed quite stable demand situation, so it's a mixed signal out of the market. Therefore what we expect for the second half year is to stay on lower volumes demand situation in the client computing area because that is related to the consumer sentiment. This is what I can state from the view on the market from my point of view.
Okay, thank you very much. Could you offset this with higher capacities for server substrates, for example? Or does it simply reduce plant utilization?
This is difficult from today's point of view to predict, because finally it ends up, how we can or how successful we will be in terms of share allocation, and so on. We need to observe closely. Like I said before, we are in close contact with all potential customers, and yeah, we will work from there. But as you see, we have confirmed our guidance for the year. Probably also from there you can derive what our expectations are in total.
Okay, great. Thank you very much. Second question would be, the figures decline is kind of, it's mid-single-digit percentage range based on your prior EUR 2.2 billion revenue guidance. This means something roughly like EUR 50 million-EUR 150 million expected top- line reduction the next two quarters. Could you give us a rough split on where you expect that kind of top- line reduction to come from, such as X percentage PCB module and Y percentage [grant] substrates or something like that?
Thank you very much for the question. A mid-single- digit decrease is anticipated, that's nothing uncommon. It's within the bandwidth we have, within the usual bandwidth you report on the capital markets. Please accept that this is the level of detail we are happy to share with you at that point in time.
Okay. Understood. Thank you very much.
The next question comes from Alexander [Gee]. Your line is open now.
Hi. Good afternoon. Two questions from me as well. First one is regarding the D&A rate that you have shown so far in the first half of this year. Would this be also a great proxy for the second half of the year? On your tax rate, basically the same, because we are at 9% tax rate, I think, for H1. Thank you.
You meant depreciation amortization was your first question, huh?
Yes.
Mm-hmm.
I will take the second question first. The tax rate will remain on the level of the first half, which you have stated, and depreciation is in line with our current CapEx projects.
Okay, perfect. Thank you.
Daniel, I think you are next.
The next question comes from Daniel Lion. Your line is open now.
Oh, okay. Yeah. Good afternoon. I would have also two questions. Maybe also catching up on the demand dynamics. When we refer now to the slightly adjusted top- line outlook, on the one hand, where did it come from? Then I would be interested if you already see this development in your areas, in your business lines, or do you expect it to still happen? Is there a different year expectations regarding Q3 and Q4? Yeah, maybe a little bit more transparency would definitely be warmly welcome because it's difficult to really get a hold on.
Yeah, I tried to explain it to the questions from Mr. Steiner already. Basically what we see is the main impact is coming from the consumer sentiment, consumer-related markets. As you also can see that we try to create more than usual transparency in announcing already that we are within this zero- digit percentage reduction rate. This is what we typically are potentially not so much forced to communicate, but we thought it would be helpful for everyone in the market. There is some volatility in the market, there is some uncertainty in the market, and we wanted to communicate that. This is what we can see from today's point of view, how our business will or potentially will be impacted.
Mainly, as I said before, one of the impacting factors definitely is expected to come out of the client computing area, and then the rest, I would not see any significant changes.
Maybe also connected to this issue, I think Patrick raised this to some extent, maybe rephrasing it from a little bit different angle. The ramp up of the heterogeneous server CPUs at your client is basically set to last, let's say, two quarters, roughly two quarters. Do you have any visibility how this will play out on your side? Once this has started or fully stopped, would you expect that the volatility of your business will be massively reduced again?
This is a difficult question to answer because it's mainly referring to one application from one customer, so that we cannot comment on. Typically takes quite a time once a new technology is completely ramped and showing full impact. Also it's a matter how the entire ramp up of the product, the appreciation of the product in the market and so on and so will be. There's quite a couple of topics that needs to be observed over time. We know typically these products are, or the demand of these products are shared by few suppliers that will benefit from that.
You should give us a little bit more time because also we have a certain visibility, but still not the full visibility because it's not just related to our customer, it's also related to the appreciation of the market of the new products.
Mm-hmm. Okay. Thank you very much.
The next question comes from Jürgen Wagner. Your line is open now.
Yeah, good afternoon. Question on automotive. You said you have ramp up costs and no subsidies. What would be a normalized margin excluding subsidies, let's say markets or production rates go up again? And the second question on your long-term target, EUR 3.5 billion, and you said that the dollar was much weaker compared to now, and I believe there's a lot of dollar business in there. Does that mean you have just kept your old FX assumptions or have you adjusted volumes? Yeah. Could you give us an update there? Thank you.
Well, let's get started with the automotive business. Typically, what is usual in that kind of market is a higher single-digit profitability margin in terms of EBITDA, and this is also what we have shown in the past. Before the subsidies and the investments impacting the margins currently have kicked in. Once that is solved and also everything is on track again, this is our expectation for that kind of business.
Okay.
The second question was about.
The midterm margin. The midterm target of EUR 3.5 billion revenues and the margin target. When you said that it was the dollar was much weaker versus the euro.
Well, I think, is there anything in addition to be discussed because we confirmed the midterm guidance?
Yeah, when you said it, the dollar was much weaker and I'm interested, have you changed your FX assumptions or have you just left them as they were when you set the target? Or have you changed any volume assumptions?
I think this is now entering into certain details. The question is, typically we do not discuss or disclose the fundamental assumptions underlying this kind of long midterm guidance, because I think this simply does not make any sense.
Okay. Thank you.
The next question comes from Dennis Gehrke. Your line is open now.
Hi, everyone. Gustav from Berenberg. Actually, I have two questions also. Could you just give us a view on how you see the inventory situation?
Yeah.
For ABF substrates at the moment? Not so much what you're seeing within AT&S, but maybe just give a view on the market today given, I mean, sales at Intel, for example, on the server side declined double digits in Q3, and they've guided a bit weaker for Q4 as well. Any updates on inventory would be great. That's my first question.
Yeah.
Okay. I think this is what we can see from the market. Again, I cannot comment on certain specific customer situations. What we see is a mixed picture in the market, regarding players in the market and applications in the market. There's somebody creating quite a lot of noise in the background. Could you switch on mute, please? Thank you very much. As I said, we see a mixed picture in regard of potential customers, potential applications, things like that. In total, the expectation is that in calendar Q4 and calendar Q1, the inventory should go down. This is at least what has been announced. We are closely observing the situation, and in some areas we see a decline. In some other areas, the situation is quite stable.
What I said, we need to observe the latest development, what we are doing on at least a monthly basis and trying to analyze the markets also in that regard.
That's very clear. Thank you. A final clarifying on guidance. You lowered guidance a little bit. Said kind of five percentage points or mid percentage points down versus EUR 2.2 billion. Have you updated the FX assumption underlying that guidance or are you sticking with EUR 1.07 million as you guided previously in June?
Yeah. No, the updated FX rate is EUR 1.04 million. Just to stress one, I think, very important point that we have transparently shared the information with you still within the bandwidth of the capital market information that still leads to a very, very impressive growth year-over-year, which you should not forget. You can do the math yourself, but this is a very, very nice increase, which is hardly found. This is something I would very much like to stress as it has not been mentioned before.
Thank you. Thank you.
Thank you.
Currently, we have one more question left. If you have any further questions, please press nine and star on your telephone keypad. The question comes from Daniel Lion. Your line is open now.
Yeah, thanks for taking also the follow-ups. Can you talk a little bit about the CapEx review that you mentioned? Is there anything specific you're currently already reviewing? Are there parts of CapEx that you wouldn't touch at all? Maybe a little bit more clarity on how you approach this topic.
Yeah. I think it should not come as a surprise in a more volatile situation of the market with less visibility. This is what we always did. You can remember back to the COVID 2020 situation. You can remember back to other situations when the market were volatile, when you are in an intense investment phase. I think it is just our obligation, our responsibility to handle these topics carefully and to clearly and closely revisit latest market developments if there is any kind of adjustment necessary. This is what we are doing. Again, in this situation now should also provide you the comfort and the confidence that we are not just moving straight forward, ignoring any kind of changes in the environment.
I would see it more as an increasing comfort and confidence sign for all the investors and analysts that we are carefully handling and treating our CapEx expenditure and not just moving ahead and ignoring everything what is happening around us.
Do you have an insight currently on the shortage in ABF substrates, especially the high-end that we're supplying and target to be supplying also going forward? Do you see that the situation of the shortage maybe turns around a little bit in early 2023, as long as the newer CPUs are not on the market?
I would take it from there that what I said before, what we see currently in terms of demand in the market is kind of a consolidation situation. In such situations, typically demands and capacity available is more balanced. Once the demand is picking up again according to the needs that are typically there and from the trend-driven are there, the shortage will come up again. I think this is our expectation, that we have this intermediate phase now, which from six months ago was not so much expected. We also foresee that, in future the demand will kick in again and once the environment is more stable.
Would you expect some price pressure during this current phase until the shortage is on again?
In a situation of consolidation, I think there can be certain price pressure coming up, but I also would expect a recovery once the demand is increasing and kicking in again.
Okay. Thank you.
Okay. Thank you. As there are no further questions, we will conclude today's conference call. Thank you for your participation and questions. If you have any further questions, please feel free to contact our IR team, Johannes, and myself. Thanks again and goodbye.