Ladies and gentlemen, thank you for standing by. Welcome, and thank you for joining the Zumtobel Group AG conference call. 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. I would now like to turn the conference over to Eric Schmiedchen, Head of Investor Relations. Please go ahead, sir.
Yeah. Good morning, everybody, and welcome to our conference call on first quarter results of the 2021 financial year. I hope you were all able to download the presentation from our website. As always, today's call will be hosted by Alfred Felder, the CEO of the group, and Thomas Tschol, CFO. Like always, Thomas will start the call and talk you through the financials of the presentation, then Alfred will take over and talk you through the regional sales development as well as the corona update. May I now hand over to Thomas and ask him to start his presentation.
Yes. Good morning, everybody. Like always, we want to start by giving you a brief overview of the highlights of the first three months of this financial year. Obviously, the development of our business in the first quarter was negatively affected by the impact of the COVID-19 pandemic, and the revenues fell by over 15%. However, the Zumtobel Group was able to generate a profit in this quarter, which is, in our view, very encouraging. Anyway, as mentioned, revenues are down by 15.4%, or adjusted for foreign exchange, revenues should be at -15.2%. The top-line decline is coming from both segments. Lighting segment is down by 14.8%, and the component segment is just 18.1%, also clearly below previous year level.
The business in the component segment was also negatively influenced by advanced stock purchases by many customers at the beginning of the worldwide lockdown measures in the course of which took place in our first quarter of the 2019-20 financial year, and which then led to the substantially lower order levels in the first quarter of this financial year. The development was different between the markets. Our core DACH markets avoided the EBITDA decline and were down by roughly 6%, but the European markets in Great Britain, France, and Italy were particularly hard hit, with declines of approximately 30% in the U.K. and about 20% in France and Italy. The group adjusted EBIT decreased from EUR 15.1 million to EUR 9.1 million as the gross profits before R&D was EUR 17.2 million lower compared to previous year.
However, the positive earnings have been supported by cost savings and the utilization of the short-time work options in different European countries. As a consequence, the SG&A costs were EUR 10 million lower than previous year in the first quarter. The largest savings were realized in the person costs, travel expenses, marketing, and in the lower transfer costs, which resulted from the decline in the revenues. The good news here is that the development of the earnings during this quarter shows that the Zumtobel Group is in a much more robust position than before due to the measures implemented in the last two financial years. This development also underscores the success of our quickly implemented effective crisis management in dealing with the effects of the COVID-19 pandemic.
Below the line, the net profit equals EUR 3.1 million, and we have recorded one-off costs for restructuring measures of EUR 2.1 million, and these are primarily related to costs arising from the shutdown of the acdc plant in Barrowford, near Manchester, and the relocation of production to the plant in Spennymoor, which will take place during this financial year. We hope you will understand that we are still unable to estimate the exact impact of the corona pandemic. We have therefore decided not to issue any guidance on the development of the revenues and the earnings for the full 2020-21 financial year at the present time. Let's move now to the next chart to give you more details on the development of each segment.
On the slide number three, as usual, you can see the revenue development per quarter on the left-hand side and the adjusted EBIT development per quarter on the right side. As mentioned before, as a result of the pandemic, revenues in the first quarter decreased by 14.3% with basically no foreign exchange impact. On the right-hand side, you see the adjusted EBIT development, and there as a result of the decreased top line, the adjusted EBIT in the first quarter declined to EUR 8 million versus EUR 13.5 million in the previous year. This is still a satisfactory level given the top-line development, and obviously, these are achieved by strict cost control and short-time work options. Let's move on to the component segment.
The revenues in the component segment were down by 18.1% in the first quarter, sorry, and after an adjustment for foreign exchange, the segment was declining by 17.4%. As mentioned before, the beginning of the crisis in the first quarter in the last financial year led to increased inventory purchases with the customer in reaction to supply chains that were disrupted by the COVID-19 pandemic and subsequent positive effect on the segment revenues in the first quarter of last financial year. This was followed by a negative effect on the Q1 revenues for the current financial year. One more interesting point. In the past quarters, we've always been talking about the strong price pressure Tridonic is facing. The price pressure in the first quarter has been down at only approximately 1% versus the previous year.
This is above all due to the logistics surcharge of 3.5%, which Tridonic started to charge the customers based on additional logistic costs they have been facing when the crisis started. Here we have to add that this logistics surcharge is no longer charged as the logistic costs all came back to, so to say, normal levels. On the adjusted EBIT level, the profitability is down to 5.2% as a result of the lower contribution due to the significant volume declines. On slide number five, we see the combined results of component and the lighting segment. I think there is no additional news, so I will move to slide number six, showing the EBIT bridge. Starting with the price, we adjusted the EBIT for the first quarter of EUR 15.8 million. The absolute gross profit of the group before R&D decreased by EUR 17.2 million.
That is basically the result of the EUR 46 million lower revenues versus the first quarter of the previous year. R&D expenses decreased by EUR 1.1 million, which is mainly the result of lower personnel expenses. In the functional areas of selling and admin, we can see additional cost savings versus previous year. Efficiency improvement and cost reduction measures resulted in a further decrease in the SG&A expenses of EUR 10 million. The special utilization of the short-term work options supported the lower cost base. Other operating results, excluding the special effects, they were slightly above the previous year's level. This brings us all together to an adjusted EBIT of EUR 9.1 million in the first quarter of this financial year. On the next slide, you can see the full P&L statement. There is, in general, not too much to add. Maybe just a few comments.
We have special effects that increased from EUR 0.4 million to EUR 2.1 million and as already mentioned, this is related primarily to the relocation of the acdc production and the financial results declined by EUR 1.2 million to a minus EUR 3 million. Here we have in the other financial income expenses, this includes also the income and expenses resulted from the changes in foreign exchange rates. Here we have a market valuation of exchange rate hedges that we made just for the operating business. This represents the major component of the negative result here. On the bottom line, this brings us to the EUR 3.1 million net profit in the first quarter. Let's move to slide number seven to the cash flow statement. As a result of the crisis, we were not able to further optimize our working capital during the reporting period.
In comparison with the prior year, the working capital rose from 15.1%- 17.6% of the rolling 12 months revenues. The cash inflows from the change in operating or in other operating positions totaled EUR 7.1 million, versus outflows of EUR 6.9 million in the previous year. Consequently, the cash flow from the operating activities dropped from EUR 19.6 million to EUR 5.6 million in the first quarter. The cash flow from investing activities was lower than the comparable year period. It was minus EUR 8 million in the first quarter. This included also investments for capitalized development costs of roughly EUR 3 million. The free cash flow fell to minus EUR 2.4 million, primarily due to the reduction in the cash flow from operating activities. Go to slide number eight, to the balance sheet or some selected balance sheet data.
Our net debt totaled EUR 179 million as of end of July 2020. This is EUR 13.5 million above the value as per 30th of April 2020. Our liquidity situation is backed by the consortium credit agreement with a term ending in November 2022 and a maximum value of EUR 200 million, where EUR 60 million were drawn end of July. We have, as you already know, two long-term credit agreements of EUR 40 million each with the European Investment Bank, and here we have a bullet repayment in September 2024 with respectively February 2025. Both are fully drawn. What is new, we have, let's say, from OeKB, a special framework credit for large enterprises, a so-called Sonderkredit [Foreign language], of roughly EUR 40 million, whereof roughly EUR 20 million were drawn end of July. On top of that, we have uncommitted lines of credit totaling EUR 63 million.
To sum it up, we have a strong balance and liquidity situation that is, of course, a very strong backbone in the current crisis. As you all know, there are two financial covenants attached to the financing agreements, namely the debt coverage ratio of less than 3.55 and the equity ratio of more than 23.5%. These financial covenants are tested end of April and end of October. This is all with respect to the financial development in the first quarter. I think we have successfully adjusted our business to reflect the substantial decline in activity in our various markets and in particular, the positive net income shows once again that we are today in a much more robust position than two years ago when we started the journey to establish a lean and effective organization.
May I now hand over to Alfred to provide you with a brief update on the regional sales developments and the outlook for the full financial year against the backdrop of the COVID-19 pandemic.
Good morning, ladies and gentlemen. Warm welcome also from my end. Alfred Felder speaking. If you have a look at the page number 10, then you see that our journey of slight growth, what we have established until quarter four of last year came to an abrupt stop towards the end of the quarter four last year. Biggest impact, if I may just spend two sentences, that was that by mid of March, so six weeks before the year-end, especially in the lighting segment, we had a severe decline which led as a group to -12.7% in quarter four.
Here I have to say, and Thomas mentioned it already, that the Tridonic was basically having this surcharge of logistic costs due to the supply chain disruption out of China in February, which led to a buffer stock increase at the customers so that the last fiscal year was more or less very little impacted on the Tridonic top line until the end of April, and then the drop came. If you look into our quarter one, then we see from the lowest April numbers what we had, a constant increase, May over June and over July, where July is then still in a double-digit decline, but close single digit trend, so that we see that the businesses in the different territories are recovering. If you have a look at the next page, then you see again our split into different territories.
Thomas mentioned it already, the DACH region has been obviously also with the proper management of the governments going through this pandemic quite smoothly. All in front, we do see that in Switzerland, our high margin business was more or less not only stable, but still slightly in a growth mode. Austria, with the reopening, especially of the construction sites, was also almost on par with previous year level. In Germany, we are a little bit behind what contributes to this -6%, but also here I have to say that in Q1 last fiscal year, we had a couple of very big projects in stadium, like Bayern Munich, Borussia Dortmund, Mainz 05. What basically did not come anymore into the Q1. More severe is the impact in Northern and Western Europe. This includes Benelux, Nordic, and U.K. Obviously U.K., I guess, we will deepen a little bit.
That was the biggest drop with partly a decline of more than 30%. Similarly, in the Nordic territory, with the exception of Norway, but of course, with Sweden going a different way, that was quite having an impact. In Southern and Eastern Europe, Southern heavily impacted. As you know, Italy more or less in a complete lockdown with partly for a couple of weeks, almost zero revenue, similar to France. In Eastern Europe, it depended a little bit on the countries. Here we had in Q1, still difficulties to go over these different borders and countries, and we had partly not been able to serve the customers simply because of the traffic on the borders. Also with a double-digit decline. Asia Pacific, different picture. China after the February lockdown came back, but it's not a big revenue stream.
Heavily impacted more specific with New Zealand, which is a nice market there for us in four weeks in a complete lockdown, and then Australia, partly lockdown. You've also seen it that a couple of weeks back, Victoria, a big territory around Melbourne is again in lockdown. In addition, we had these bush fires what were limiting the business. Rest of the world, we see an increase of 15.5%. This is mainly driven by Middle East, by MEA, where especially in the Emirates, in Saudi Arabia and in Qatar, we have been able to navigate through the business here quite smoothly.
Of course, it's not a big number, but it's nice, and that seems to be continued also in the quarter two. If you have a look at the page number 12, then this is the latest result of Euroconstruct, what we received in August compared to the June numbers. It's seen in most of the countries, a slight improvement on the decline. Obviously, U.K. was more than 30%, it's now still 23.7%, the GDP, so I think I didn't have the need to comment, you have also the data here. Promising Germany, Switzerland, and also Austria with a single digit. Slight recovery in the Nordic territories, where we believe in the next quarters to come, business might come back a little bit more aggressively than in other territories. France and Italy, obviously in a deep decline.
Very surprising to us that France is so much down. Obviously the latest numbers show again that we are stalling the business. Partly, certain construction sites are not open. If we look into 2021, and that's the comment on paragraph number two, there is, compared to the June, a more moderate outlook, with a slower growth of, let me say, 3%-5% per year, what we have as a growth. That's also indicating that going back to the pre-COVID-19 level will take a little bit longer than we originally anticipated when we were entering into the crisis. If you go to the next page, I think that's pretty much in line what we also presented in the last fiscal year results. What is the status quo? Luckily, also that continued up to now, we have been able to manage the business through the crisis.
Obviously, with all the measures, what we did with home office regulations, with safety and health precautions, we have been able to keep all the businesses up and running. Especially when it comes to supply chain and product availability. We had the luck that with the exception of France, where we had one COVID case and we had to close the factory for two weeks. All the factories are up and running, are serving the customers. Obviously, I think it shows what Thomas has presented. We have been continuing to do a strict cost management, with looking into all the functional areas on both discretionary spending and CapEx investment. Very careful in hiring short-time work measures in main countries, especially in Austria, in Germany, and in U.K.
We have to say, with the increase of the activity on the customer base, most of the sales territories are out of short-time work already. We are still in there until September in Austria. Obviously, what also helps is the reduction of flex time hours and vacation during the summer period, in the months of June, July, and now also August. On the other hand, especially now during the Q1, we have been extremely focused on the development of the ongoing projects and lighting solutions. We are coming in the launch window in autumn, with a couple of new releases of products that we believe we can conquer the market in different segments we are in. However, we are also now looking into the new opportunities for new applications, obviously emerge when it comes to health and care in hospitals, in elderly homes where money is spent, in education.
Monitor very carefully how the retail business develops, because also what we see in not system-relevant applications in retail business went back. Also in office, we are looking now on the opportunities of providing home office solutions. On the people side, we have been dramatically increasing this digital customer experience, not only through webinars and e-commerce, but also through video conferences, what we are partly using also to introduce our new products, simply because we are limited in having face-to-face meetings in all our live forums, especially here in the Olympiahalle, where we plan to have these big events during this, already the quarter one here. Looking into the outlook, obviously, this corona pandemic has triggered an economic downturn, what we did anticipate, and it's very difficult to predict. We are all hoping in the industries that a second lockdown will not come.
Partly, we see slight impacts of local restrictions, what we have in different countries, but up to now, still very manageable. Obviously, we are currently not in a position to provide a guidance on both revenue and earnings in 2021. That our original EBIT margin of 6%, what we plan to accomplish in 2021, will be delayed after the 4.8%, what we have achieved last fiscal year. With that, we would like to come to an end of this presentation, and then we are open now to your questions, and we will be able to start the Q&A session. Thank you.
Ladies and gentlemen, at this time, we will begin the question and answer session. One moment for the first question, please. The first question comes from the line of Markus Rehms with RBI. Please go ahead.
Yeah. Good morning, gents. Congrats on the results. A couple of questions, please. Firstly, on the components business and your comments regarding the logistics surcharge, the 3%. I didn't quite get it. Did you say that this surcharge is actually already abolished, or should we regard that as sticky going forward? In connection with that, is there any change to the price pressure in the luminaire business?
Okay. Yeah. Thanks for your question. The surcharge on the component business was triggered as following. As you know, our single biggest volume sector is in China, and 50% or quite a lot of both drivers, especially as well as components for drivers, what we manufacture more and more in niche for the European market, are coming from China. During the lockdown in China in February, we had tremendous difficulties, not so much to get the parts, but to get the parts out. More or less, it was a time where over weeks, we have to fly 100% of the parts out of China, which obviously was bringing additional cost. We started then to say to the customers during that time, we need to add a surcharge, which as Thomas mentioned, is 3.5%, what basically was valid until the end of July.
Basically then everything came back to normal. With this additional charge on the components and we saw then only a price erosion in the range of 1%, because the estimation was obviously much higher. Obviously, if you say 1% price erosion, if you would not have done the surcharge, it's still in the range of 4%-5% of price erosion, what we see in the components business. When it comes to the lighting, we have done a selective price increase on certain products, what has been impacted by the supply, but we have not done it like Tridonic, an overall 3.5%, which also countermeasures a little bit the price erosion. Luckily here, I have to say, that also the price erosion of, in the lighting segment, during that period in Q1, was less than we had budgeted and than we had forecasted.
However, in a shrinking market, what we see very clearly now is that the price pressure is coming back because the fight for the project is coming by the different competitors, what we see in the market, and most likely over the next quarters to come, the price pressure on the lighting segment and also on the component segment will not get less. We also hope that it will stay as, let me say, nowadays moderate in the single digits for components and in a lower single digit for the lighting price.
Okay. Very clear. Thanks for that. Can I ask you on the short-time work, you said that the sales organization is out of short-term work. Have you made up your decision whether you will utilize the new scheme of the Austrian government after September? Also related to that, any plans for a headcount reduction?
Right. obviously, what we have done, now we have again, the nice short-time work regulation in Europe. We have been following the local requirements of the local government when it comes to short time. In most of the countries now, with the exception of Germany, Austria, and U.K., we have only sales set ups. pretty much after end of May, when we saw business coming back and customers reopening the construction sites, we exited the short-term work simply because it was absolutely necessary to intensify the interaction with customers, which remained difficult, because we were not able to visit. We were mainly doing it via digital interaction, and that was quite intense.
In the factories or in the production sites, the second question, especially in Austria, this is currently exactly the evaluation, what we do to find the right bandwidth of utilizing it versus the fact that now the time comes where we really need to speed up all the new developments. Current situation is that we are evaluating this very carefully, and we might consider.
Of extending it, where we need more flexibility on the production side, that we are going back to a full-time work in the key functions, which are the R&D, which are the product marketing, the product-related parts, so that we are able to speed up again the development of the new products and the new solutions. Your last question, that's in line with our evaluation, where we obviously see what is it, what we need to do, and structural adjustments in functions where the business is not able to come back in the next 18-24 months to the levels what we had before the COVID-19. We are currently running these evaluations, and we plan to see them and make a final decision by beginning of October. Obviously, similar to that what we said, we are not able to issue a guidance.
We are now seeing an increase of order intake, very moderate. We are also seeing that the increase of the business is not going back to our original anticipation, where by the middle of quarter two, we would be back at previous year levels. That we know already for sure that this will not be the case. Now it depends heavily how the next couple of weeks will develop.
All right. Very clear. One more, please, on the cost savings. Can you help us maybe understand how much is actually fixed cost savings and how much over the last quarter, or last two quarters, is more of variable costs that will reemerge rather quickly once business picks up?
Out of the EUR 10 million savings, there are roughly EUR 6 million coming from the short time. Now I'm talking of the first quarter. Roughly EUR 6 million out of the 10 are really from the short-time working scheme. On top of that, of course, we have reduced holidays, flextime of working hours, et cetera. Also, as I mentioned, travel costs, some acting costs because we cannot do events or participate in events. Basically, if we come back to a normal level, these cost savings will disappear.
Sorry, I didn't get the last sentence, please.
If we come back to a normal level, if we stop short-time working.
Yeah
Traveling is picking up or the activity is picking up, then these costs will reappear.
Will. Okay. Very clear. Just to clarify, in the 4Q call, you said you had about savings of EUR 4 million from the short-time work.
Yeah.
Another EUR 4 million from the other areas, travel and so on. It actually was a bit higher in the first quarter.
Yes. This is due to the fact that last year, we had this very strong lockdown there, starting from mid-March until end of April, there was a total lockdown. Basically no activity at all, besides the work from home. Now, with starting this business year, then we had some back to normal. Yeah. People went back to the office and the activity was picking up. Also we had, of course, a higher activity level, even though we were still in the short-time working scheme. We were roughly at 70% on average, and this was in the first quarter of last financial year. We were starting from mid of March, we were down at between 40% and 50%.
Okay. Very clear. Right. Thank you very much.
The next question comes on the line of Michael Marschallinger with Erste Group. Please go ahead.
Yes. Good morning, gentlemen. Thanks for taking my question. The first one, a quick one. Could you give us a guidance on the CapEx for the current financial year?
Between EUR 45 million and EUR 50 million.
Okay, thanks. The second one, just clarification on your order book. You said in July, you saw a low double-digit decline. What I have seen currently in the U.K., I guess it is still more severe here, the decline.
In U.K., it's still a high double-digit decline. If you are referring to the order book, that's exactly the big challenge what we had. Let me go back a little bit. At the beginning of the fiscal year, when COVID was already there, the order book, what we had was higher than-
Significantly higher than the previous year. Obviously, all the projects what we gained were still alive. Now, in a lot of countries, we see a huge delay, what we have to monitor almost on a daily basis because also customers are shifting these projects. Luckily most of these projects are alive and are in the pipeline. When it comes to the new orders, what we have, obviously it's a different picture. We do see, and that's pretty much in line with Euroconstruct, that in the DACH region, the order entry is constantly increasing, still below the previous year levels. In U.K., in France, for example, and in Italy, after the lockdown, the order book increased again. Partly in countries like U.K. and in France, where we have a significant business done via the distribution.
Once the distribution offices opened again, we saw quite a refilling of the stocks in there, what resulted in a positive contribution. To answer your question, it's still the big challenge in the big markets like France and especially U.K., that the order book is much weaker right now than the DACH region.
Okay. Thank you. Just one final question. You mentioned at the end you're looking at new product lines. You mentioned healthcare. Do you have here the in-house capabilities for these products, or are there some M&A opportunities on the market, or will that be on hold for the time of the crisis? Would you be interested also if there are opportunities?
Obviously what the COVID-19 triggered is that much more attention is paid on the well-being, on the safety of, let me say, these risk people sitting in elderly homes and in hospitals. There's one activity where we partly partner with companies what had to do with UV disinfection, but obviously not going too much into the technology. Here, the LED technology compared to the UV tubes is still far below that what is expected. Here we are having activities. The other one is more the well-being itself, that you have more activities going on into the human-centric lighting, into the well-being. What obviously is one of our core activities where we have resources allocated and where we now are increasing this in order to be able to support these kind of activities.
Okay. Thank you.
If there are any further questions at this time, please Press Star followed by one on your telephone. We have a follow-up question from the line of Markus Rehms with RBI. Please go ahead.
Thank you. A few more from my side. On the one-off costs for the full year, would you have an updated guidance for us? Also if you could elaborate a bit on where the restructuring money will be spent. Any more closure plans or relocation?
Yes. This is related to what Alfred explained just before about our decisions regarding also future setup and restructuring. If there is no major restructuring, it will be significant. We will have maybe some reductions in our sales networks. I think we already mentioned that, especially in the in-house functions, we have a project to streamline the organization. The plan is to start implementation this financial year, so there will be some impact. This will be anyway according all in a significant range, and as long as there is no major restructuring.
Okay. On the component side again, I think last time you mentioned that your customers have tried to build up some safety stock. Do you have a feeling how the stock level has evolved over the quarter? Is this supply chain rather depleted or again, or still kind of...
You're referring to the component business, right?
To components, yes.
Yeah. We have seen quite some huge 4x order intake one week before we increased the prices, where obviously then this was flat over the next six to eight months. What we see as indicators that this buffer stock is now coming to an end, and the normal business behavior comes into place. If you're just looking into our performance, and if we look into the performance of some of our competitors where we have the data, still we are in the mode that this is a double-digit down compared to previous levels. We see a slight increase now over the last couple of weeks. August is always a difficult one, but it's now a good indicator how September develops.
We believe that is the month where the stock level will come to an end or to lower levels so that the customers are then in a position to order again.
Okay. A final question on your remark in the presentation regarding home office solution. Is that more of a strategic shift towards residential solutions, or is this more of an, how do you say, opportunistic step you're taking here? Do you have the distribution channels to serve this, the residential demand?
We are here, I have to admit, at the very beginning. We are just believing that in the different countries, let me say, the legislation will be changed into, we call it more flexible working environment, where home office is one of the parameters. We believe that requires then also certain criteria on ergonomic, let me say, furniture plus light, plus infrastructure. Already in the past, we have been in close contact with furniture makers, with IT companies. Here we are jointly now monitoring what solutions we could offer. If this is more than an opportunistic approach, then obviously we need to see how we approach the whole residential setup, which is currently not our core. What we are seeing now is a certain shift of office investment in big cities towards a more home office investment.
We want to be prepared if the legislations change in such a way that there are certain criteria where also light plays an important role. Too early to say whether this is a more short-medium term opportunity or it's really a strategic one, but we have started this initiative.
All right. You would have to develop new luminaires.
Not necessary. Obviously, Lumida is not sales channel yet. It goes in line with that. We have already part of our product innovation is also that we have this free-standing luminaire initiative where we are launching a product what makes office illumination more flexible. Obviously, when it goes into pure residential, then I think that would need to be built up and also from a go-to-market sales strategy.
You would roll that out throughout your global presence, or would this be more focused on, I don't know, DACH region or?
I think what we see when it comes to home office driver is for sure, again, the DACH region most likely is also the most promising one, what we do would use as a test market. Typically, we start with markets like Austria, where we have a strong market presence, and we know how it is, and then it depends on the legislation. We believe that would be the focus one, followed by the rest of Europe and then followed by the rest of the world. The focus, as always, is Europe for us, and the primary focus is the DACH region, where we also believe that this would come most aggressively.
Okay. Thank you very much.
At this time, there are no further questions. I hand back to Alfred Felder for closing comments.
Yeah. I would like to say thank you very much for listening, for your interesting questions. I hope we have been able to show you that with the efforts what we did the last two years, we are robust enough to handle this. Obviously, it's not easy. The outlook will be as such that most likely in the next two months, we have a clearer visibility how the market develops. Hopefully that it's constantly going upwards, what we see as a trend. In parallel with the activities what we have launched on new opportunities, we believe that we are very well prepared for the next round of sales growth, hopefully starting already next fiscal year. Thank you very much for listening, and that brings us to the end of this call. Thank you.
Ladies and gentlemen, the conference is now concluded, and you may disconnect your telephone. Thank you for joining, and have a pleasant day. Goodbye.