Ladies and gentlemen, good morning. This is Klaus Mader. I'm welcoming you to our Q3 earnings call in the name of the executive board. And as usual, I'm doing that call together with Campbell MacPherson, our Chief Operating Officer. Today we will talk about the business highlights, the financial highlights, of the year-to-date figures, but also of the Q3 figures, followed by explanations about the market environment done by Campbell and followed by the outlook. I just heard that there was no tone at the beginning, so let me do it again. Welcome in the name of the executive board to Schoeller-Bleckmann's Q3 earnings call, that I, as usual, do together with Campbell MacPherson, Chief Operating Officer of the company.
Today we will talk about the year-to-date figures, also the Q3 figures, business highlights, financial highlights, followed by discussing the market environment done by Campbell, and then also the outlook. Let's skip the disclaimer and get immediately to the business and financial highlights for the year-to-date figures. We delivered solid results, not outstanding results, but solid results and a higher cash flow in a challenging market environment that we are going to discuss in more detail. The sales remained at a high level of EUR 425.6 million, which is about 3% below the previous year, driven by the oilfield equipment division on the back of the Praxis acquisition, but also based on a strong performance in the third quarter. AMS division, having excellent results in the first half of the year, the sales decreased on a year-to-date basis compared to the previous year.
You all know about the weakness of the U.S. markets, which had an impact on our sales performance. But when talking on a group level, we were almost in a position to compensate that by increasing sales in the Middle East, in Central America, in Latin America, coming to the level of EUR 425 million. The bookings in the third quarter have been EUR 124 million, 4% below the second quarter, but slightly above the first quarter. The group EBIT with EUR 51.8 million is well below the previous year. The two main drivers were the first half-year performance of oilfield equipment and the Q3 performance of AMS after a strong first half of the year, which was impacted by a moderation of our customer demand as well as quite significant foreign exchange losses of almost EUR 3 million in the third quarter of AMS.
On the other hand, what we promised during the half-year figures, oilfield equipment is returning clearly back to profitability. We will also discuss that in more detail. We had quite a strong quarter in the third quarter, even a better one than not only the first and the second, but also to the third quarter of the previous year. The good news on the year-to-date figures is on cash flow and balance sheet. The key free cash flow increased to more than EUR 42 million, which is significantly above the previous two years as a result of lower working capital. The cash increased significantly compared to the half-year figures, which is driven by successful completion of a financing round that ended in October, but the majority was done in September.
And on the back of a strong cash flow generation, the net debt further decreased and the gearing further improved. The equity ratio is slightly below the 50%. We will discuss that shortly, but on a very solid and high level. Let me talk about some strategic highlights that we are also going to discuss on the next slide, the regional expansion, which we put on our shoulder at the beginning of the year as a result of the weakness in the U.S. market to compensate that with doing business, especially of oilfield equipment outside of the U.S., reducing the U.S. exposure of oilfield equipment. And we were quite successful on that. We are having double-digit sales growth in the Middle East and also in Latin America. We have won an ESG award, more details soon. And over the course of the year, we recalibrated our strategy.
We are in the final stages now, which will also result in a rebranding of SBO. Here an indication that we are going to plan an update on that at or early 2025. Let us talk about some of the highlights of the strategic highlights in the third quarter: regional expansion. One example was that we had additional sales with current customers and new customers in Latin America, specifically also of dissolvable plugs. And also in Central America, we were successfully negotiating a three-year contract in the long-cycle customer project in Guyana with one of the oil majors. When talking about regional expansion, we also need to talk about the Middle East, as one of the growth regions. And here, we finally moved into a new facility in Saudi Arabia. We talked about that earlier this year, moved into the new facility.
We are in Saudi Arabia since a couple of years, offering the complete product portfolio of SBO, of AMS as well as OE as a hub, in doing business in Saudi Arabia, and we extended that facility, moved to a new facility that provides us more space for assembly, for service and sales activities, and this has been successfully completed in the month of September. When we talk about some news on energy transition and ESG initiatives, one example is that we are currently entertaining an R&D project, where we are benchmarking for high-pressure high-temperature applications for carbon capture and storage. We are doing that with two prominent companies in Austria, Böhler on the supplier side and OMV on the customer side, where we are assessing what kind of material grades are best used in carbon capture and storage applications.
Because beside our oil and gas business, we are of the opinion that steel and material and high-performing steel and material will be needed for geothermal, for carbon capture, also for hydrogen applications. We are currently in that process. This is more for the local people. You may know about the deeep project here in Vienna for district heating, in a project between Wien Energie and also OMV. We received an order and will be part of the project with providing our equipment. Already indicated and also highlighted in the third quarter was that SBO was honored with a newly introduced ESG award of the Austrian leading companies for the region Lower Austria, where Ternitz and SBO is placed. This award highlights our commitment to environmental sustainability, social responsibility, and corporate governance.
We are quite happy, winning this ESG award as ESG sustainability is part of our growth strategy. With that first introduction, I hand over to Campbell for the market environment.
Many thanks, Klaus. And good morning, everybody from my side. So let's talk about the developments of the market environment during the last year and particularly into this last quarter. In 2024, we've seen a shift of our market environment that affects both the long-term and the near-term outlook. And let's look at them separately. So if we look at the long-term, really the long-term fundamentals for the oilfield service industry really remain solid. Demand for traditional energy sources continues, while at the same time, new energy markets, particularly in renewables and technology to support the energy transition, are accelerating. And these dynamics all present growth opportunities for SBO, which we are actively working on. In the near term, we're navigating a more complex scenario. Heightened oil security remains a concern.
This is set against a backdrop where the global oil market is finally balanced between supply and demand with emerging concerns, regarding potential oversupply. We have increased non-OPEC+ output, and then we have the uncertain actions with regard to OPEC+. This adds to a kind of unpredictability coupled with the economic slowdown in growth in China and also in Europe and the USA. Together, all these factors increase the pressure on commodity pricing and stability. You can see from the chart, the oil price declined 17% in the quarter. Overall, our industry's fundamentals do remain intact for the long term, but we closely monitor these near-term fluctuations. In the quarter, we've observed a moderation in industry spending. Looking at the rig count, global numbers have remained relatively flattish in Q3.
The U.S. rig count has stabilized at a lower level, averaging around 580 plus rigs, overall. This stability at lower levels reflects the ongoing impact of the capital discipline and the industry consolidation that's going on in the industry right now, and we talked about it during the last earnings release, but notably, drilled but uncompleted wells or DUCs have continued to decline by around 6% year to date. Yet the U.S. production levels have remained the highest they've ever been, which indicates that operators are leveraging existing wells rather than expanding their drilling activities, so as we have mentioned in the past, at some point, this inflection point needs to change, and they'll need to initiate new drilling projects to maintain production levels.
Another impact in the U.S. market that could be supportive of an increase in activity in the medium term is the new LNG facilities and gas pipelines coming online in 2025. These will significantly support U.S. LNG capacity and the takeaway capacity, opening up current bottlenecks that there is at the moment. Internationally, activity was supportive throughout the first half of this year. However, recent developments, particularly with the economic slowdown in China and the drop in oil prices in Q3, have led to a slowing demand over the past few months with some of our customers, particularly within our AMS division, and more recent conversations with our customers in our AMS division reflect a much more cautious tone, and they even mentioned this in their own quarterly pre-announcement last month.
We anticipate a more moderate sales environment in the coming months as they take a much more conservative approach to spending. In this slide, you can see the development of our quarterly bookings going back to the start of 2023. As Klaus has already mentioned, Q3 bookings amounted to EUR 124 million, slightly lower than the previous quarter by 4%, but actually up 5% on Q1 bookings. This is predominantly down to the growth in our OE division. If we look at the first three quarters, bookings decreased approximately 13% compared to the same period in 2023. They went down to EUR 373 million from EUR 427 million. Looking at the sales in a bit more detail, this shows the development of the sales split between the two segments. Just for clarity, AMS is the segment that's at the top.
Sales in the period of EUR 425.6 million continued at a similar level to last year, just marginally down by about 3% and reflects the rebound of the OE business in Q3, while sales in AMS have moderated over the course of the year. For the first nine months of 2024, sales in the AMS division amounted to EUR 222 million compared to EUR 250 million in the prior period last year, so down 11%. The OE division showed an improved sales performance of EUR 203 million, an increase of nearly 9% compared to the same period of the previous year. With that, I'll pass back over to Klaus.
Campbell, thank you very much. Let us now discuss the financial figures, the profitability figures in more detail. And as I indicated at the beginning, the shortfall in terms of EBITDA and EBIT is predominantly driven by the performance of the oilfield equipment division in the first half of the year that we extensively discussed also when discussing the half-year figures. To remind you on that, the weak US market on the one hand, the less favorable product mix with lower tool sales as a second argument, and the additional operational expenses that we have taken in order to put the structure of the oilfield equipment on a better path and to increase the performance of the division. And this has shown also fruit in the third quarter in oilfield equipment.
And the second reason for the EBIT and EBITDA shortfall is the lower performance of AMS in the third quarter with lower sales and a related gross margin on the one hand, but also, and this is quite surprising when I say that now, a significant foreign exchange loss because in the third quarter, the US dollar significantly decreased. And now in the fourth quarter, it is getting stronger, which should also be supportive to us. The EBITDA figure stands at EUR 75.8 million, which is a margin of 17.8%. The EBIT is at EUR 51.8 million, which is a margin, a double-digit margin of 12.2%. Profit before tax and profit after tax are following that development. Maybe one comment to the profit before tax. Last year, we had this one-time charge financial expense related to the legal settlement. This year, this is not happening.
Therefore, our financial result in the first three quarters is better than in the previous quarters. When we talk about the EBIT per segment, I have it already indicated that the first half-year performance of OE and the Q3 performance of AMS is the reason for the EBIT below the previous year. AMS had an outstanding, excellent performance in the first half of this year with an EBIT margin of 23%. And compared to the previous year, we have seen this division performing at the highest level since the year 2012. This has moderated in the third quarter. Also, foreign exchange losses of almost EUR 3 million impacted that. But the year-to-date figure of AMS is still an EBIT margin of more than 20%, just also to mention and to put that into a context.
On the OE, as I said before, predominantly, the first half of the year was taking the profitability down with the weak markets, the additional expenses that we incurred, as well as the less favorable product mix, but this development in the third quarter is a promising one. On the one hand, our internationalization efforts, and I talked about that. We had good sales in Central and Latin America, for example, dissolvable plugs from WellBoss. We had a good development in the Middle East, and therefore sales and profit increased already significantly in the OE division in the third quarter compared to the first and to the second quarter, and even compared to the third quarter of the previous year. EBIT margin was at 8%, and this is a promising path. The journey should not be ending here.
We are clearly targeting double-digit EBIT margins for the oilfield equipment division. And I said to you, we can do better in oilfield equipment, when we discuss the half-year figures, even when the market is not improving, and it also did not really improve in the US in the third quarter. When we talk about cash flow, liquidity, and gearing, you see the bar rising to EUR 42.5 million. So the cash flow generation is strong. It continued to be strong. We delivered the free cash flow of EUR 15 million in the third quarter. And I also see that trend continuing as we are clearly generating cash flow. Last year, the acquisition of Praxis was included. Therefore, the adjusted figure was 18.8 + EUR 17 million, so in the vicinity of EUR 35 million. But even compared to that, this year's cash flow generation is a better one.
That is also then resulting in a better gearing situation. Gearing has been further improved to 19.6%, and the net debt has been further reduced. I also see that trend continuing. When we look at the balance sheet, the biggest news definitely is a significant increase in liquid funds of almost EUR 100 million. Beside the cash outflow of the dividend, the cash generation from our operating performance, some repayment of debts, we had in the third quarter a successful financing round. On the one hand, already doing repayments for the next year, but on the other hand, also providing additional funds for our strategic initiatives, for our strategic ambitions. Therefore, the cash now at the end of September stands at EUR 260 million.
And this is the only reason why the equity ratio went down, because we calculate the equity in relation to the total assets or total liabilities. And this was the reason why the equity ratio went down. Equity in absolute figures went slightly down because of the weaker U.S. dollar. But I see, as long as this trend of the stronger U.S. dollar is continuing, also the equity getting higher in the fourth quarter based on the foreign exchange currency translation. And this takes us to the outlook. And here I do refer to what Campbell already said. The long-term outlook for the energy industry remains positive. The fundamentals are good as well as for the oil business and predominantly also for the gas business. For example, electricity in the U.S. is to 40% based on gas.
Electricity should significantly increase over the next couple of years based on data centers, artificial intelligence. One of our customers also said this is the decade of gas. We see that this is the same, but the recent developments with a more dynamic environment in terms of volatility in our commodity pricing, the weakening demand of the oil demand growth, gave some uncertainties. Therefore, the shorter-cycle business is at the moment, and also that can change, and you see that already in the next bullet point, a bit more cautious, because policy changes in key markets, geopolitical uncertainties, volatility in the commodity prices, do have an influence to the positive, to the negative. Therefore, we have to observe and to monitor the situation closely and also prepare for that.
What does this mean for the two divisions? That, on AMS, we are monitoring the situation. The recent demand softening of our customers is taken into consideration, and we are experienced in that. On the other hand, we are going to pursue our diversification strategies also for AMS. Here, especially 3D metal printing is very promising. We have purchased another machines during the course of this year, promising orders also outside of our oil and gas industry. We see the growth rates and also the number of metal-printed parts going forward significantly increasing. We are supporting that also with strategic investments into that business. On the OE side, as I said, the third quarter was promising in terms of sales and profitability. Here, this driving of performance improvement is going to continue.
The regional expansion in growth markets is happening. We, as I mentioned to you, moved to a bigger facility in Saudi Arabia. We are going also to increase the facility in Dubai for our well completion business, as we are seeing nice potentials in that area. And this is definitely the path for oilfield equipment to take back the profitability into the double-digit margin area. And already indicated, but more to come at the beginning of next year is the finalization of the strategy recalibration and the relaunch of our SBO branding. But here, more to come. It is in its final stages, and we are preparing then the update for you all at in early 2025. And with that, we are at the end of our presentation.
We kindly ask you to raise your hand for potential questions, and we are more than happy to answer them. The first question is coming from Richard Torn from Berenberg. Richard, happy to take your question.
Hi, good morning, guys. Two questions for me. Firstly, you mentioned in the release that you don't expect a significant rebound in the U.S. market in the short term. So are the Q3 results to that, the current revenue and margin levels, are they good proxies for expectations into Q4 and into 2025 for the OE segment? Are there also any further measures you could take to improve margins in that segment, like you did across H1? And then just on AMS, can you provide a bit more color on what drove the weaker Q3 results in AMS? Which regions did you sort of see that weakness coming through?
Are there any initiatives you could also launch in that segment that support margins? Thank you. Should I take the first question? You take the second. Sure. Yes, the U.S. market did not improve. And current talks are also that for the time being, we see it on that level with slight increases. As I said, political changes may have an impact to that, but it also didn't improve in the third quarter. We managed to do better in the oilfield equipment division. So on the one hand, it is coming from operational efficiencies, even in the more challenging U.S. markets. And on the other, we continue on our path of regional expansion. Therefore, we see getting into the year 2025, aiming to generate EBIT margins in the double-digit percentage area. Campbell.
Hi Richard.
With regard to AMS and the weaker Q3 results, this is driven by our customers and their overall demand for the tools and equipment that we manufacture for them. We really came off an exceptional year in 2023, where customers ordered a lot of equipment to satisfy then a much higher demand. What we've seen now is that they are getting a little bit clogged up with relation to their inventory. So they've moderated their spending level from that perspective, but also they're getting pressure in the market as well, and they're seeing their market come down too. So that's the challenges that we have in the AMS market is working for these customers where they're dealing with a little bit more inventory than they need at the moment and the challenge in the marketplace as well.
But what do we do to encounter the effects of that? Well, we're very experienced in the cycles in this business, particularly in the AMS business, and being able to adjust our business to suit appropriately the levels of business that we have. But more importantly, we're really doubling and tripling down on the efforts in our diversification strategies, particularly on the additive manufacturing to try to bring up the balance.
That's very helpful. Thank you. And maybe just a quick follow-up on the OE sales. What portion of the OE sales are non-U.S. based?
Oh, you caught me with a quick question that I do not exactly know out of the top of my head, but we can provide you with that figure afterwards, Richard.
Yeah. Okay. That would be great. Yeah.
Next question is coming from Oleg from RBI.
Good morning, Oleg. Oleg, looking forward to receiving your questions.
Yes. Good morning, gentlemen. Thank you for the presentation. I have a few follow-up questions on the previous questions that have been asked. You mentioned that the AMS segment results were strongly impacted by a moderation of the EV spending globally. Again, maybe you can say a few words about where exactly do we see this moderation happening in terms of geographies. Because previously, we were of the impression that, for example, Middle East, but also Latin America would be more resilient in terms of oil price volatility.
Speaking about oil price volatility, what, which you also mentioned in your release, do you believe that the moderation of activity is primarily driven by the weaknesses in the oil price, or it could be also the impact of OPEC+ policy of maintaining low oil production and to avoid an oversupply of the market? So your opinion would be very valuable here. And secondly, just again to help us understand the positive developments seen in the OE division, would it be fair to assume that the growth was primarily driven by Praxis? Because you mentioned that you've seen also some growth in the US, but all in all, I guess, I would guess it was mainly Praxis, because you're talking about this expansion on the international markets.
Again, any guidance here for the OE division, or at least for the non-U.S. business, would be very welcome. Lastly, just a short question. If you could reiterate, what was the impact of the unfavorable exchange rates on the Q3 revenues and EBIT per segment, please, if possible?
Thank you. Good morning, Oleg. Let me try to address your first question, with regard to AMS. That's a difficult question to give you specifically because we manufacture equipment, on the capital side for our large customers, and we send them to product and technology centers that they have spread around the globe. They then take those tools and they assemble them, and they ship them to their field locations.
We might be shipping a lot of tools to the U.S., but ultimately, those tools may then get shipped to be used in the Middle East or Asia. It's a very difficult thing for us to give you a specific answer on that with regard to AMS. What we do have in AMS is we have our repair and service businesses. What we can say is that certainly in the U.K. North Sea and to a lesser extent in the U.S. and Gulf of Mexico, those repair businesses, we've definitely seen a reduction in activity, which does indicate in those particular areas there's less activity going on for sure.
In terms of the moderation of the oil price and OPEC, just as we explained before, I think customers are very concerned about where the balance is because if OPEC release these extra barrels into the market starting potentially in December, what that will do in terms of driving down the oil price, we can see our customers and discussions with them are extremely concerned about that. Take the U.S. market, for instance, and speaking with them, this has become a very finely balanced market where the oil price, where it is at, they're getting solid returns from that, but it's really focused through consolidation and increasing price. So any more additional barrels to the market could drive the price down, and it could be challenging, particularly for the U.S. market at the moment.
I take the question on oilfield equipment and where is the growth coming from? When you take the year-to-date figures of OE and the increase in sales of 9%, you have three different developments. You have the acquisition of Praxis, which is clearly contributing to the sales growth. You have the weakness in the U.S., which was reducing it, but you also have other regions like Asia and Central and Latin America, who were increasing. When we take the development from the second to the third quarter, it was not driven by Praxis because Praxis is delivering solid sales to the group but is already in our consolidation since the fourth quarter of last year. The increase from the second to the third quarter were predominantly sales, tool sales, and also increased business with existing and new customers in the Central and Latin America.
And I gave the example also of dissolvable plugs from our WellBoss company. Question on, meanwhile, for Richard and also for the rest of you, I looked up the figures, geographical split, sales split, oilfield equipment. On a year-to-date basis, we are doing about 60% in the U.S. and about 40% in the rest of the world, spread over Mexico, Central America, Africa, Europe, the Middle East, and also the Far East. And on the foreign exchange losses, the most significant one was in the AMS division with EUR 2.7 million. And oilfield equipment suffered the foreign exchange loss of about EUR 300,000. It's not very material. Therefore, I did not explicitly mention it in the presentation.
But for AMS and then also for the group, it was key, because I saw in one of the first announcements that the EBIT was going down compared to the second quarter, but the adjusted EBIT for the third quarter is in the vicinity of EUR 18 million . Right. Thank you for answers, very helpful. And do you have also the estimated impact on the revenues of the FX? I don't have it, Oleg, but here we are talking about translation impact, and therefore I do not see them very material, because we are calculating it with an average rate, and therefore not with a balance sheet date. Therefore we are not talking about significant impact on the sales level.
Understood. Thank you very much.
Very welcome. Next question is coming from Kevin Roger from Kepler. Kevin, good morning. Happy to take your questions.
Yes, good morning. Thanks for taking the time. The first one, sorry. I will continue to chase you on the different dynamics between AMS and OE, because when you look at the order intake, as you've shown in the presentation, that's relatively flat, quarter on quarter since the beginning of the year, but you have adopted quite a kind of bearish tone on the AMS division for the short term. So is it possible for you to quantify the order intake trend, Q3 vs. Q2, for example, and maybe the magnitude that you have seen in AMS versus OE just to understand the change in the tone that you have for the AMS division? And as a follow-up, you mentioned the cautiousness of your client, etc.
Does it mean that you are already suffering from pricing pressure that you have to give some discounts on new tenders, new volumes that are coming? And the last one, is there any, you know, a strategy or solution or whatever that you are looking at in a way to reduce the impact of the forex that are impacting your earnings on the quarterly earnings? Thanks a lot.
Yeah. I take that. That's good. So on the order intake with the segments, we don't report that information, Kevin, so we can't provide you with that at the moment. But when it comes to looking at the market and the pricing pressure on AMS, yes, for sure. As we look forward and we see what opportunities are there, customers are becoming very, very price sensitive.
So we have definitely moved into a much more cost-sensitive environment, with our customers in AMS looking forward. In terms of the foreign exchange, yes, Kevin, here we have to take into consideration that we are a global business reporting in euro and doing quite some business in the U.S. dollar. You need to know that about 80%-85% is invoiced in the U.S. dollar, from an input cost, between 50 and 60%. Therefore, we do have this transactional risk. On the hedging, for example, of bookings or of receivables, we are anyhow avoiding foreign exchange losses and foreign exchange gains as we are managing that. But on the other hand, we have to take into consideration that we are a global business, with not a natural hedge in terms of US dollar on the sales level and also on the cost level.
And therefore, at least part of this foreign exchange has to be taken into the consideration. The impacts are already getting smaller and smaller, as we, where we can also actively work on that. But we have seen a significant drop in the U.S. dollar in the third quarter. Now it is getting stronger in the fourth quarter, which is a promising news. But this is what we, to some extent, have to take into consideration.
Okay. Understood. Thanks. And maybe just the, the last one, if I may, sorry if I missed it, the, in a way, new financing structure that you have, the new financial solution, is there any big change on the financial charges to, to expect or not at all?
No, this is this is a, a very valid question, Kevin.
And I'm more happy to give some insights, because we have done a financing round with promissory note loans that, as in the past, we wanted to avoid any default covenants with an attractive pricing, a long-term financing of five-to-seven years that gives us the flexibility on the one hand to yeah maneuver the organization to have the additional funds also for the strategic execution and therefore we are very happy with that financing as we got it at very good terms.
Okay. Thanks.
Welcome. There is now one question from Cornelius Kick from Hauck Aufhäuser, and the question is, I'm reading it as we are having obviously technical topics on the other line.
Were you surprised that the normalization slowdown in AMS occurred as early as it did and to that magnitude?
Could you speak in the operating leverage dynamics in the segment, Kepler?
Thank you, Cornelius. I think it's fair to say we were not surprised because we are in dialogue with our customers on a daily basis. Yeah? So this is not something that just suddenly appeared for us. We have seen in dialogue with our customers a very continued gradual reduction in terms of their requirements and their order intake and also their requests to push existing orders out into the horizon, which sometimes we can accommodate and sometimes we can't. So this is a bit a discussion that has started several months ago and is continuing to progress. So it's not something that's come out of the blue. And we have already been planning in our business for it, in downsizing and reducing our workforce in some of the associated businesses, that this affects.
So yeah, it's not a surprise. And I think to add to that, Kepler, you also indicated it in the half-year figures where you said, "Look, guys, we are delivering an EBIT margin of 23%," which is outstanding. And keeping that on that level will not be possible on a normalized basis. But even on the year-to-date figures with almost 21%, the performance of AMS is outstanding. And not to talk AMS down now.
Yeah. No, and you're right. And you mentioned it, Klaus. We came off the back of an exceptional year in 2023, and that was always we knew that that level of activity with those customers in AMS was not going to continue, you know, infinitum. So this has been coming, and we've seen it. Okay. Ladies and gentlemen, I heard that there are no further questions.
I thank you once again for participating in the presentation. I do hope that the comments and the answers and the insights on the Q3 and year-to-date figures were comprehensive enough to you. Thank you for your questions. Wishing you a nice day and see you soon. Thank you very much, everybody.
Thank you very much. Goodbye. Bye-bye. Bye-bye.