H2 20/21

Jun 30, 2021

Yes. Good morning, ladies and gentlemen, and welcome to the Tsumturbus conference call on the full year results of 2020, 2021. With me on the call today are Alst Hedfelder, our CEO Thomas Scholl, our CFO as well as Thomas Erhard, who will join the Executive Board as new CFO starting was 1st August. Alfred will walk you through the highlights of the year, while Thomas will give you Sumterbe's financial performance. At the end, Alfred will present the outlook. After the presentation, both gentlemen will be available to answer your questions. And with this, I hand over to Alfred. Yes. Very well. Good morning, ladies and gentlemen. Thank you for joining us today for our annual results. Obviously, the financial year 2021 was despite the challenging environment what we had, especially at the beginning, a successful year for our group, where we have demonstrated a robust position and capability to react quickly and consequently on this exceptional situation. You will see it later when Thomas presents the financials, but I would like to give you what you see here on the first page, a few inputs on the highlights from 2021. Looking at the projects what we did last year, among many, I just want to highlight 4 of them, which should give you an impression on our portfolio and our solutions, we implemented another highly sophisticated customized lighting solution for the Esplanade and the Allianz Arena of Bayern Munich. Here we did next today inside also the whole outside, and that was just completed by the end of April. On the other hand, we did a major refurbishment project, first time for in France with Al Dinort. But also, we had a couple of other projects with Amazon in different countries, which has become a key account for us, U. And also we are very proud that we have been able to win the illumination of the Apple Tech Campus in California. As you have seen from the publications, our aim is to become carbon neutral by 2025. And therefore, now during the 2021, we have implemented another step to achieve these goals. And since March 2021, all of our Austrian sites derive 100% of their electricity from hydropower. This transition to that hydropower will reduce the CO2 emissions of the group by 1500 tonnes annually in reference to the relevant environmental data for the 2019 2020 financial year. We are currently evaluating the measures of all our facilities abroad, and we also made further progress on delivering this strategy focusing mainly on the restructuring cost management program as well as sharpening our brand strategy and positioning our brands in the lighting, mainly Dawn and Zumtogre. However, if you look at the year, the COVID-nineteen pandemic and the resulting economic Realiti led to a decision to further develop the strategy from our focus into our focus, where we have added 2 major pillars what we drive, 1, the E for the environmental and 2, the digitization what we preponed from the original plan starting started in 2021 of doing a transformation of all our processes into the digital era, it is a company wide, group wide program, what runs currently at full speed. With it, I would just stop here and hand over to Thomas, who gives you the insight on financials for last year. Thank you very much, Alfred. Good morning, ladies and gentlemen. Also a very welcome from my side. Like always, I would like to start by giving you an overview on the financial highlights of our financial year 202021. Obviously, the 1st three quarters has been negatively affected by the impact of the COVID-nineteen pandemic. However, in quarter 4, we managed to beat prior year levels. In total, the group revenues came in with €1,444,000,000 which is around €87,000,000 below last year. The Lighting segment contributed €794,000,000 the components segment generated €303,000,000 therefore, both below previous year levels. The revenues were particularly hit in Northern Western Europe, especially in UK, Sweden and Norway. The group's adjusted EBIT came in with €45,000,000 around €8,000,000 below previous year level. The earnings were supported by a reduction of fixed costs and utilization of short work options. The gross profit before R and D was €31,000,000 below previous year. The selling and administrative costs were €20 euros 4,200,000 lower than previous year. The largest savings were realized in personnel costs, especially due to the short time work options, travel expenses, marketing and the lower transport costs, which resulted from the decline in the revenues. The 2020, 2021 E1, net profit increased significantly to close to EUR 47,000,000 compared to €14,500,000 in the last year. The net profit includes a one off deferred tax effect of roughly €16,000,000 thus deducting this one off effect, our net profit would be around €20,000,000 which is roughly or roughly double are twice the value that we had last year. The group C cash flow increased substantially to €100,000,000 and we could strengthened our balance sheet even more. The pandemic situation obviously remains uncertain, but the financials showed the strength and stability of the Zumtobel Group and confirms success of our quickly implemented effective crisis management in dealing with the effects of the COVID-nineteen pandemic. Let's move on now to the next chart to give you more details in the development of each segment. On Page 4, we start with the Lighting segment. As usual, you can see the revenue development by quarter on the left hand side and the adjusted EBIT development per quarter on the right side. On a full year comparison, both revenues and adjusted EBIT are still below previous year is a result of the pandemic. Revenues declined by 6% from €845,000,000 to €794,000,000 the adjusted EBIT declined by roughly €11,000,000 to €37,000,000 in the last financial year. However, the Q4 showed an easing development. As you can see, revenues increased by 15% to €217,000,000 in the 4th quarter, the specialty economic recovery as well as the low levels we saw in the Q4 last year supported this development. Following the good top line development in quarter 4, our adjusted EBIT increased by €3,000,000 to €10,000,000 The adjusted EBIT margin was close to 5%. Let's move on to slide number 5 to the components segment. The full year 2020 21 revenues in the component segment stood at €303,000,000 This is 11% below last year, while the adjusted EBIT amounted to €23,000,000 which is almost flat compared to last year. Adjusted EBIT margin was 7.5%, thus above previous year level. Quarter 4MUs were with €84,000,000 flat compared to Q4 last year. Please remember that the Q4 last year benefited from stock building effects in the sector since many customers significantly increased their stock levels with the beginning of the pandemic. Therefore, quarter 4 results were good and they were the strongest quarter in the financial year, which also reflects the economic recovery. Furthermore, we saw a low price pressure in the market of below 1% compared to 5% to 6% in the prior year. Adjusted EBITDA level, the profitability increased substantially in Q4 by close to main drivers were positive effects, mainly coming from the low U. S. Dollar, material cost savings supported by the regulation is the inventory of the business and the operating expenses. As a consequence, the adjusted EBIT margin stood significantly high at 14 percent. On slide number 6, we can see the or we see the results of the group. So this is to say the combined result of both segments. While on a year on year comparison, we are still below previous year levels. You can see the peak in quarter 4 for both revenues, up by €25,000,000 to €285,000,000 and adjusted EBIT, up by close to €11,000,000 to €17,800,000 therefore, the adjusted EBIT margin stood at 6.2%. This is an encouraging sign since it shows us 2 things. First, we do see light at the end of the tunnel, meeting a positive trend in the market. And second, our cost saving measures, which we implemented, showed clearly its positive result. So I move to Page number 7 to show the main building blocks of the adjusted EBIT development. Starting with the prior year adjusted EBIT of €43,900,000 The absolute gross profit of the group, the ForMD decreased by €31,000,000 which is basically the result of €87,000,000 lower revenues with the previous year period and partly offset by savings in the cost of goods sold. R and D expenses increased by €2,000,000 in order to increase the effort of developing innovative products and solutions, which is for us an enabler for sustainable growth in the future. And in the functional area selling and administration costs, we can see additional cost savings versus previous year amounting to €24,000,000 Here, especially the utilization of short term work options supported low cost base in addition to savings like marketing travel and transportation. Other operating results, cooling special effects came in with €1,700,000,000 And consequently, this leads us to an adjusted EBIT of €45,500,000 in the last financial year. On slide number 8, you can see the full P and L statement. There is generally not too much to add, but I would like to draw your attention to 3 items. The negative special effects decreased very significantly from €18,800,000 to just €2,000,000 1st. Second, the financial result improved by €3,000,000 to minus €9,000,000 as a result of significantly lower debt and lower interest levels, as we could profit from a better margin rate due to a better ranking of our current. Please be aware that the net the income taxes of plus €12,000,000 include the one off the positive one off deferred tax effect of roughly €60,000,000 which was also mainly the trigger for our latest talk message on May 31. This brings up to a net profit of €45,600,000 translating in earnings per share in the amount of €1.06 EUR0.01 per share. Deducting the one off effect, our net profit would be still twice the level of last year. Consequently, earnings per share adjusted that this one off effect would amount to €0.68 Now let's move to the very positive news on the cash flow statement. The cash flow from operating results increased from €101,000,000 to €150,000,000 following the better profitability. We had significant, again, improvement in our working maybe coming from our lower inventories and the working capital stood at €152,500,000 the cash inflows from the change in unoperating position totaled to €80,000,000 mainly due to additions to provisions and guarantees as well as lower receivables from research and COVID-nineteen government grants. Consequently, the cash flow from operating activities increased from €108,000,000 to €140,700,000 and due to the pandemic challenges, the cash flow from investing activities was €40,700,000 and the capital expenditures mainly comprised investment in tools for new products, expansion and maintenance investments and capitalized development costs. Based on this increase of the cash flow of operating activities and the reduction in cash flow from investing activities, we came in with a free cash flow of €100,000,000 which is substantially up on a year on year comparison and a proof point for the measures that we took in the last years. Let's move on to Page number 10 to the balance sheet. The net debt decreased significantly to €97,000,000 as of end of April 21. This is almost €70,000,000 below the value that we saw 1 year before. Our net our debt coverage ratio went below 1 strong balance sheet secures our liquidity position in the current crisis, which we are still facing and gives us the opportunity to take action in the future. Before I hand over to Alfred, who will provide you with a brief update on regional sales developments and the outlook for the full year, would like to take the opportunity to say thank you. As you know, I will resign according to plan as of end of July 21 and Thomas Ehrhardt, who is currently CFO of Fredonic, will join the management board of the Tumtobel Group as CFO beginning of August. Therefore, this is my last conference call and would like, first, to thank you for following the Tumtobel Group and the trust that you have put in the company. And second, wish Thomas as new CFO together with Alfred and Ben Amotskow all the best for the future. Thank you. Yes. If we switch now to page 11, Thomas mentioned it already in the on the data and financials, we do see the light at the end of the tunnel. And this positive market trend is also reflected in our sales development. What you see here and you are familiar with this curve already since many quarters years, the first two quarters of this fiscal year as well as the last quarter the Q4 of last fiscal year has been heavily impacted by the crisis with a double digit decline. And then in quarter 3, we saw already the recovery with, let me say, only the 8.8% minus and then almost a 10% growth into the quarter 4 compared to quarter 4 of last year. This development reflects 2 things. The first one is we compare the figures with a very low previous year level, which helped. However, the second one is the mentioned global economic recovery, which is also see in our segment, which has impacted our figures positively. You see it on Page number 12, especially the DACH region, the largest market for the Tsumtum Group, reported a 3.8% drop in revenues to euros 347,600,000 in 2021. And the decline was very moderate in Switzerland despite the crisis, notable strong in Germany and Austria actually managed even to generate an increase compared to the financial year before of 7.6%. The revenues in the Northern and Western Europe fell 12.1% or to 2 €57,000,000 were up. Here, the declines were particularly strong in UK, Sweden and in Norway. And in Southern and Eastern Europe, the decline was 7.6% to 267 €1,000,000 with Italy, Czech Republic and Greece reporting the largest declines. Asia Pacific generated a grow. Obviously, they have been able to move out of the crisis quicker than the rest of 2.7% to €108,000,000 So the rest of the world is mainly including then Middle East, also U. S. In Southern America, which basically comes to a complete standstill on a low level, but you see it here, the decline of the 22 €0.4 percent or €65,000,000 Looking at the revenue development this fiscal year 2021 2022. If we start with the revenues on Page number 13, we do expect an increase year over year between 4% and 7%, especially in those four areas highlighted for growth, on one side, we do see quite a strong recovery on the outdoor, especially in the smart street lighting with a lot of regulatory changes towards climate neutrality here also it helps us that the 2 countries heavily impacted by COVID, France and U. K, which are strong Thorn or Outdoor countries are recovering quite quickly. The second one is the whole life management systems where basically we are able to sell more and more end to end solutions to our customers, including our controls and life management system. Obviously, the bottom right, the catch up, we do see a lot of investment installments now released. UK is one of those partly pushed by government projects, but also by the private sector where we see here in Q4 as well as continuing Q1, this is clearly a strong recovery. And last but not least, sustainability, as I said, is not just a word. It's basically all or a lot of our clients are now having very clear targets on their CO2 neutrality, and we are working with them and for them to install the highest efficiency in lighting to save cost and energy on the light. So furthermore, we are due to the cutting of the CapEx spending during the COVID-nineteen pandemic, we also see and expect a catch up effect starting this fiscal year. As you might know, some countries, especially in Austria, have this so called a benefit that the government supports investments, and we see a lot of, let me say, CapEx released what helps us in accelerating the growth. If you look at the Page 14, the bridge of EBIT margin development between last year and this year, we have reported, as Thomas said, a EBIT margin of 4.2% in 2021. But please keep in mind that 2.7% out of the 4.2% came from the on off effects like the short time work, what we had as well as the lower margin marketing and travel expenses, and these effects are not present anymore. Obviously, when it comes to travel, we are not expecting to get back to the pre corona level, simply because we do more and more meetings also online, but this is also the effect here. One thing I forgot to mention, this is not anymore the EBIT adjusted reporting. It's the EBIT as we, after the 3 years now, have left the situation of restructuring. And from now on, we are reporting the EBIT margin and not the EBIT adjusted margin. So considering the top line effect of around 2 to 2.5% and another 0.5% to 1% effect following further efficiency measures like product platforms, what we have installed, the contributions or the first contribution from our digitalization project, we do expect an EBIT margin between 4% and 5% in 2021, 2022. Looking at Page number 15 and following the projected revenue development as well as the potential strategic stock increases in order to tackle possible shortages, we expect the working capital to be between 14% to 14.5% by year end. And as explained, company shifted their CapEx spending due to the COVID-nineteen, and of course, we did as well. As you see, the economic environment is recovering and getting back on track. Going forward, we plan to invest between €50,000,000 55,000,000 and a part of it is dedicated to the maintenance activities, while the other part is CapEx, which was shifted due to the COVID 2019, and this CapEx is mainly going into the digitization as well as the new platforms and new product development, what we will release within this fiscal year. So let me summarize on Page 16, the outlook for the financial year. Revenue growth between 4% 7% EBIT margin projected to increase to 4% to 5%, and we keep we plan to keep our working capital between 14% 14.5%. So that means our CapEx spending is projected to stay at a healthy level between 50,000,000 €55,000,000 I think those of you who joined us regularly still might remember that in previous year, we had been higher, but that was also taking into account that we had the huge investment in our large factory in niche in Serbia. During the crisis, we have also been working on the further development of our strategy what we incorporated 2018 2019. And in recent years, we have basically put a much stronger focus on customer orientation and production and process complexity and therefore cost. And our activities in 2021 also included a constant work on the further implementation of our focused strategy. While delivering on our restructuring cost management program, one key element was formed by the stronger brand it involves the systematic positioning of the Zumtobel and the Thorne brands through a streamlining of the product portfolio and the more efficient positioning of the brand organization as well as organized well organized interfaces to the key sales and R and D functions. Fundamental, long term challenges can never be neglected even in a demanding environment. And COVID-nineteen pandemic and the resulting economic reality led us to the decision to further develop our focused strategy as a means of utilization are new opportunities for growth and strengthen the company position mid- and long term. The result is the new B focused strategy, where we have expanded to include increasingly important aspects, like I mentioned already, the environmental issues for the letter E and the digitalization for the letter D. And our goal is not only to create a customer oriented solution, but also to anchor sustainability even stronger in our action. We therefore shifted our current sustainability initiative more into the spotlight during the last financial years, one of the major goals, what we said to ourselves is that we plan to become climate neutral by 2025, and we will work systematically in the sense of circular economy, which is another priority, not only reducing the CSU exposure, but also being able to use material resources as well as is efficient minimization of waste, emissions and energy consumption. And this will represent now an integral part of our efforts in the earliest phase of product development and subsequently in the construction and the operating supply chain. With these initiatives, the Sumitomo Group can, and I believe will take a pioneering role in the lighting industry. Digitalization for Zunderbur means innovative products with expanded functions as well as services that create new customer experience. And that will strengthen even more the customer relationships, what we have in support of the development of new earning models for the group. And we are implementing the digital process workflows throughout our company step by step, end to end from the customer acquisition to receipt of orders, product delivery and after sales support. For time being, I would like to stop here and also the invitation for our Capital Markets Day, what we plan to host on October 12, 21, where we will give you a comprehensive overview of our focused strategy. And since we do not have know how the travel restriction is due to the COVID-nineteen, we will develop our capital markets. They will be held in a hybrid event, meaning you may be either joined the event in person here in our headquarters in the live forum in Don Bernd, what we opened last year, or online. So thank you very much for your attention. And now Thomas and myself will be happy to take your questions. The first question comes from the line of Markus Ramis with RBI. Please go ahead. Yes. Good morning, gentlemen. Congrats on the results. A couple of questions, please. Firstly, on your sales guidance, can you maybe shed some light on the volume versus price dynamics that you've baked in and also some assumption regarding the regional dynamics would be very helpful. All right. Yes, obviously, I think we highlighted it at the beginning. Now as we are over the worst in corona, we have a couple of dark clouds on the horizons which are related to raw material increases in partly, which will most likely impact us after quarter 2, certain shortages of key components on the component side, so semiconductor components would go into our drivers, which automatically reflected in a situation where the customers are placing orders ahead, so that on the components level, we do see are sales development that looks promising as well as on the lighting segment. When it comes to the prices, we expect at least for the next couple of months are quite a constant development. Depending on the situation where we are in with increased raw material costs, increased transportation costs, also we have been partly forced to implement price increases out in the market so that I believe that the sales when it comes to the price dynamic, will rather be constant or slightly increasing for the time being, at least until the end of this year. In terms of volume, we are expecting a higher volume simply because of the catch up in the different markets. So driving markets are here, as I mentioned at the beginning, U. K. And France, which are partly back at pre corona level in the monthly run rate, also on the volume, so there's quite a significant volume increase. And also the components level prices are rather constant. We also saw this in the last year, and we believe that will continue as long as we are in a semi allocation mode. In terms of, microcystin, in terms of regions, the fastest recovery what we saw is in U. K, in France, also in Spain and in Italy. And it's basically rather constant development in the DACH region, where as I said, in Austria, we have the so called investment premium from the government. We see a significant growth also in the next two quarters. Okay. But why is the DACH region kind of lagging behind in terms of the dynamics? Okay, I understand the base effect, but still, I mean, there was a recovery with all the data what we have. So we are relying on the statistics from EuroConstrac. And Euro construct data shows that U. K. And France is much faster recovering with a positive impact, and the latest Euro construct Data on Germany shows still a shrinkage in investment and is reflected a little bit in our business as well that Germany is not growing that fast, for example, like U. K. And France is doing at the moment. Okay. So how long does your current order book reach at the moment? What's the visibility? And maybe you can compare that to, say, It's an interesting development because we are now in a phase where we where our customers and the whole world sees the shortage of certain components, and therefore, we have partly something what we call the Globapie effect, sorry, the German world, that one customers are placing long term orders to secure their orders. So the order intake of the component level is currently much higher and also the visibility is longer than it was pre corona level. So the order book lasts already until the end of the calendar year, where in pre kroner level, you had the visibility of maximum 2 to 3 months. Would you expect these orders to actually translate then into revenues? Or do you see a high chance of cancellations? Well, obviously, that depends also. We have a non cancellation policy that it will generate revenues. Obviously, it will then be a revenue what is distributed over a longer period. Okay. Can we stay on the raw material side and on the part shortages? I mean, what's kind of the magnitude of the cost inflation you're seeing? And you indicated that after Q2, if I understand you correctly, you're a bit more worried about the supply side, I mean, is there already some evidence that kind of your production and your And your selling process is hindered by part shortages. Well, it's like this. So on the component level, the shortage is already starting now, and we believe we will have some impact in our Q2 numbers. But obviously, the teams have done everything to work around certain critical components where we partly have replacements. So, I think it's what we are currently seeing now, it will be a difficult quarter 2. And depending on the time of allocation and depending how fast we are able to implement the changes, it might get better than after the summer break, but obviously, it's a very critical situation because at the same time, the order intake is overproportionally high due to the fact that the customers are also afraid of not getting the parts. It's a little bit difficult to predict exactly how this goes, but the critical quarter will definitely be the quarter 2. Okay. Last question before I get back into that line would be On the currency exposure, as of kind of as we enter into the new business here, can you remind us Of the main long short exposures dollar, CHF pound that would be helpful. Yes. Our main short exposure is in U. S. Dollar. It is around USD160 million mainly coming from Tradomic, on the raw material that are purchased in U. S. Dollar. And besides that, we have a shorter or let's say, they then have rather long positions in the Swiss francs, around CHF 80,000,000 in Swiss Frank, and in the British pound, £30,000,000 This is not too much because we have quite a good natural hedge between sales and purchasing in Great Britain in our factories, many more. These are the most important exposures that we have. Okay. That was Always in local currencies of CHF 30,000,000 CHF 80,000,000 CHF 80,000,000. Okay. Very clear. Yes. And on the dollar effect, apparently, there is some tailwinds in the last Quarters, I mean, when do you see that leveling out from a quarterly perspective? So when is the base effect Kind of kicking in when your hedging rates will go up. Roughly in 1 to 2 quarters. Okay. All right. Thank you. The next question comes from the line of Michael Maschalinge with Erste Group. Please go ahead. Yes, good morning. Thanks for taking my questions. Maybe the first one was on the revenue outlook On Page 13 of your presentation, the first time you also talked about smart lighting, light management. Maybe you just tell us how big are these sales right now and what growth rates do you see in Smart Lighting maybe also now and in the next years. Yes. On smart lighting, that includes also maybe I need Miguel, let me to explain a little bit to you. That includes also everything what is related to systems, beautification, illumination around the house, especially when it comes to environmental protection, no light pollution, making sure that we are taking care of the insects and the animals here, and we are currently launching a new portfolio for that application, and we do see quite a substantial demand on that one. In parallel, we are working with different external partners on developing smart city solutions using our connectivity solution in combination with our Luminess. It's a growth field where we believe over the next year, we will make some substantial progress, but it's, of course, not the dominating revenue driver now, most likely also not this fiscal year, but coming in the next fiscal years. Okay. Understood. And maybe also one, we already talked about geographies, but they are major geographies. But just maybe quickly that coming back to rest of world was rather weak this year. Any intentions, Middle East, U. S. So wanted to reduce exposure, maybe divest? Or what are your expectations here? Yes. Your question was U. S, right? Did I catch this correctly? Yes. U. S. And the EU sometimes. So obviously, during the last years, we have streamlined the setup over there, where we have optimized our footprint, for example, in the U. S, we have existing from locally made products and what are highly priced rosive into the high end products from Zumdoba, we are only selling Zumdoba products in the project business. And here, we have been able to stabilize the business and go back to the growth mode. Obviously, COVID, as you still remember, under the former administration was not managed very well. So we had quite 2 quarters extremely heavy in the impact. It is now recovering quite steadily, including the South American, where we basically do project business driven by international accounts what are partly generated in Europe. And we believe with that lean and very efficient setup, we are able to manage this, and it's also necessary to have this footprint if we want to become and remain an international lighting solution provider for international accounts. Same is valid for Middle East, where we have been going back only into the key countries, and we have removed our activities from not profit making territories. Okay, understood. Thank The next question comes from the line of Charlotte Friedrich with Berenberg. Please go ahead. Hello. Thank you for taking my question. Also congratulations to Mr. Troll on your achievements in the past years, and best of luck Whatever your next projects may be. The first question would be again on the Supply chain. And could you elaborate a little bit more why you think that Q2 will be a critical quarter? Are you seeing a worsening of the situation? Or why what's Well, Q2 will be the Q1 where we will see the impact. Let me just start here what happened. So more or less towards the end of calendar year 2020, beginning of 2021, we saw first an increase of our costs on the logistic transportation cost from China, obviously, then again accelerated with the Suez Canal Vessels accident, but more or less what led to a quite significant increase of logistic costs, but also longer lead time from products, what has been coming from China, which is quite a lot in terms of raw materials, semi finished goods and finished goods on our aluminum level from Don Eco. That automatically then led to longer lead time And at the same time, an increasing demand. Then obviously, from January onwards, we saw a quite dramatic increase of raw material prices, copper, steel and so on, also plastic, granulates this kind of stuff. And then, also at the same time, with the whole bounce back of the economies, a shortage on ICs and semiconductor devices which go into the drivers. Obviously, now we see that we are still having warehouses with enough components, but moving forward with the demand what we have and a shortage on certain components, we see that this will impact us after, let me say, August, September timeframe and then it depends heavily how fast we are out of this allocation from the market and how fast we are able to convert certain components into other components so that we are able to produce. But the Q2 will be the Q1, but we will see an impact. And then it depends heavily how the whole economy goes. Obviously, this is a little bit crystal ball. Certain indicators share and show that after the end of summer, October, November time frame, this will ease up a little bit, but others also show that it might blast well into the Q1 calendar year 2022. Okay. Perfect. Understood. And coming back to one of the previous questions, can you tell us what From the street lighting? So our outdoor business, let me just check it up, but we are roughly dollars 140,000,000 of our lighting revenue for the lighting brand, Don's indoor is outdoor, and the majority of it is in internal illumination. So minor businesses, parts, let me say, everything, what is with stadium, cities beautification, around the house and smart city. The majority is street and tunnel lamp out of the 140. Okay, perfect. And then just to make sure that I understand correctly, with the one offs that you showed on Slide 14 here for your EBIT And guidance roughly CHF 28,000,000 I guess. Can you tell us what components are in there and what your assumptions Regarding, for instance, a return to travel and so forth. Yes. This 2.7%, this means €28,000,000 in absolute numbers, roughly, dollars 21,000,000 are coming out of short time book and the remaining SEK 7,000,000 from less travel and less marketing. And so guys, for sure, the SEK 20,000,000 is a pure one off effect. And out of the remaining SEK 7,000,000 maybe there will be 1 third or let's put it consistently, 2 thirds also will be we will no longer have or will be a one off effect, sorry, sorry for that. The tomato business, half roughly half of the remaining SEK 7,000,000 will be a sustainable one off. Will be a one off effects, sorry, and half of it will come, €3,000,000 to €3,000,000 to €4,000,000 we will have in the next year due to more travel and also more marketing expenses, comparatively. Okay, understood. Perfect. Thank you very much. Thank you. The next question comes from the line of Laurence Stockley with Cairo are: Good morning. This is Laurence Teckley from Kuero in Geneva. Congratulations for these figures and especially for the strong free cash flow, maybe could you give us a midterm target for the EBITDA margin by business Unit for the Components and 'nineteen Business. Thank you. Regarding the EBITDA midterm plan, you're working on that. And what Albert said, there is a Capital Markets Day in October, and there will be we will give you the details on that at this point of time. But maybe just one comment. I think this is also important to have this in mind when looking at Page number 14, is that the pre corona level in term of net sales was €1,180,000,000 So this means that getting back to the pre corona level will take roughly 2 years. And so, in this next fiscal year, we are halfway. This means and but we have the structure and I would say the cost plays this year is in place and then getting back to the pre corona level, at least €1,180,000,000 this would mean depending, of course, on the markets where this catch up will take place, etcetera, but roughly €35,000,000 in additional EBIT, so and which corresponds to 3% of EBIT margin, so meaning translating this into the pre kroner level, we would be between 7% 8% to make a very rough calculation. And I think this is the good news here. Maybe at first sight, it could seem a little bit disappointing by only 4% to 5% next year where we had 43.2% in the last financial year, in my opinion, it is not, especially also in the light of the challenges with the raw material shortages is Alfred already explained in detail. From my point of view, this is, so to say, a transition year to getting back to the pre corona level at a much better profitability. But regarding the EBITDA margin in the midterm perspective, please, they will do that on the capital markets. Thank you. The next question is a follow-up question from the line of Markus Riemens. Please go ahead. Yes, thank you. One more related to this strategy update. I guess you will elaborate in detail The Capital Markets, but is there any snapshot you can give us in terms of investments needed and kind of the Yes, whether there isn't a step up in R and D expenses needed to deliver on this E and D will you keep the known pattern in terms of R and D and investment needs? I mean, what we have done already, Markus, here in Dixit's clear that we plan to continue is a stronger investment in R and D, especially in our innovation products and platforms on one side, and there is a big plan also here on the digitization where obviously investment has been already released and this will we continued over the next years and the details we would like to share then during the Capital Markets Day on this here on the environmental setup that also then influencing on R and D and product development taking into account, the reuse, the circular economy, which will also require additional investments. Okay. But in terms of the kind of historical ratios, I don't know, CapEx to sales, I think, is something like 5% or so. Will that be sufficient to deliver on this midterm target? We believe so, because obviously, and maybe this was not crystal clear, with the sharpening of the brand positioning and the underpinning platform strategy what we have. We have already seen for those platforms what we have released like a moisture proof platform or outstanding freestanding lumina platform that with the same amount of R and D, we can serve 2 brands differently positioned, and we have here a much more efficient setup. So we believe we are not reducing the R and D. We are keeping it constant, slightly increasing. But the efficiency gain, what we have, only based on this platform strategy for the 2 brands, is quite substantial. All right. Okay. So looking forward to the event then. There are no further questions at this time. I hand back to Asik Feda for closing comments. Yes, and ladies and gentlemen, thank you very much for listening to us. Thank you very much for the interesting questions. With that, we come to an end on this call. Again, I would like to extend the invitation for the Capital Markets Day. We obviously will go through a deep dive on the initiatives what we have started. We will also have more to be shared with you. And I'm looking forward to see you at least online, hopefully, on October 12. Thank you very much for your time.