Cargotec Corporation

Welcome to Cargotech's first quarter results call. My name is Aki Vesikallio. I'm heading Cargotech's investor relations. Today's results will be presented by CEO Mika Vehviläinen and CFO Mikko Puolakka. The presentation will be followed by a Q&A session. In the first quarter, we saw solid profitability despite supply chain challenges. Some of the highlights in the quarter included our refocus strategy, which was announced on 30th of March. We aim for higher financial performance through sustainability and profitable growth. In the first quarter, excellent progress in services and in high-up continued. Although uncertainty on deliveries is expected to continue. So please pay attention to the disclaimer in the presentation. So going through the content, so first Mika will cover the group level development and market environment, as well as highlights from the refocus strategy. Then Mika will go through the business areas and the financial development of the group. With that, over to you, Mika.

Thank you, Aki. Good afternoon from my behalf as well, and thank you for joining the Cargodec Q1 2022 call. Quarter 1 2022 was a quarter to remember for us in Cargodec. We saw a terrible war breaking out in Europe. We see the escalating COVID situation in China. We announced the cancellation of merger with Konecranes, and then we announced a new refocus strategy for Cargodec. Against that backdrop, I have to say that I'm quite satisfied with the performance in Cargotech. We had another very strong order quarter, exceeding again 1 billion euros of orders, and the market remains strong in all of our segments. Our revenues increased by 17%, despite the operational challenges that continue in our supply chain. and our comparable operating profit increased by 26%, really driven by the increases in the revenue. Looking at the activity around the globe through our connected equipment, we saw very high utilization rates continuing across our different segments and markets. We saw some slowdown in the high-up sector in US, really driven by the slowdown of the construction activity, although it still remains at the very high level. This is really driven primarily by the capacity limitations regarding the labor availability and the material availability. However, at the same time, we actually saw a record new housing starts in the US markets as well, so the underlying market remains to be strong. Also, we are starting to see the impact of the COVID measures and lockdowns in China as well in equipment utilization. We can get a lot of different insights and sort of information regarding our equipment. And here is another example. This is looking at the high loader crane operating times versus our expected modeled utilization. So we actually have a lot of information available and we can project where we would expect the utilization rates going. This is an indexed information, 100 is actually the expected volume. Interestingly, you can see from the chart that the activity level in Europe has been at a very high level over the sort of projected material, except of course the eastern break that is very visible in the data. In the US, actually the activity level started somewhat at the slower level probably due to the issues I discussed earlier about the construction activity, but we have seen actually the activity level picking up and actually exceeding the projected volumes and also very visible that very clearly in US the eastern is not such a holiday as in Europe. Market environment continues to be strong in all of our business segments. The container traffic continues to grow. We see continuing sort of difficulties with the congestion in the port. And I'm sure that the current situation in Chinese ports due to the COVID restriction is not helping out the situation moving throughout this year. We see a continuing high level of activity in the construction market. As I already said, we actually saw another record level of US housing starts happening again in the last quarter. In McGregor, the market also remains to be strong. Kallaxson is estimating a slight decline from the last year, which was a very high year with over 1,700 vessels, but the 1,300 vessels is still about double what we have seen in the previous years as well. The decline is probably mostly due to the shipyard capacity starting to be quite full and the new-build prices going up quite strongly as well. It's also good to note that offshore activity is picking up very clearly. The change in energy situation in Europe, for example, is seeing increased activity again in oil and gas sector. And of course, the renewable sector around offshore wind is remaining very strong. As I said, another very strong order quarter, and in our core businesses in Haiab and Kalmar mobile equipment, we saw a further increase in our order intake. The McGregor orders declined slightly from the previous year. Primarily last year, we had a very strong sort of service project order in there. However, we see the pipeline to be quite strong and already have seen an increased order activity during the Q2. The strong order activity is obviously visible in our order book that is now exceeding 3 billion euros. About 80% of that order intake is in our core businesses in Hajab and Kalmar mobile equipment that, of course, sets us well for the coming quarters. Our lead times start to be close to 12 months at the moment, and the order backlog now extends beyond 2022. Despite the challenging operational environment, we saw actually revenues increasing and a lot of hard work has gone into that one. In certain areas, we actually have seen the component situation to sort of lighten up somewhat and number of critical suppliers for our businesses actually decreased somewhat during the Q1. However, while there is progress happening in many areas, the war in Ukraine together with the COVID situation in China is casting quite a lot of doubts and uncertainty, and the visibility for the supply situation for the rest of the year is quite difficult, and the situation remains to be quite fragile at the moment. very happy with our services business that continues to go from strength to strength and we had another great quarter almost at the record level at the moment and services actually improved and grew in all of our businesses altogether by 12% being 33% of our total revenues. A few words about the refocus strategy that we announced at the end of March. This is a great start for the new refocus strategy. In our new core focus businesses, our revenues actually increased by 23% and we had a comparable operating margin exceeding 10% in those businesses also during Q1. As said, we will be focusing on higher financial performance, faster growth, leveraging our capabilities in sustainability and services. Our strategic direction remains the same, aiming for profitable growth and improving the sustainability in the logistics industries. Again, to recap the strategy, we will further aim to accelerate the growth in HIAB. In Kalmar, we will be focusing towards the mobile solutions and selected number of product groups and will exit the heavy port grain business. And we have also announced that we are now starting the evaluation of strategic options for MacGregor. Our business will highly be focused on customers supporting their operations through improving lifecycle services. We have significant opportunities to drive further growth in our services business, both in terms of quite clear self-help measures, such as spare part capture rates, maintenance contract capture rates, et cetera, as well as more and more advanced services based on our technology and digitalization. We have a great starting point Our market positions are very strong. We are either number one or very strong number two in all of the core business areas. We have an excellent sort of high value brands in those areas and our technology position remains to be very strong. We keep on investing and again this quarter we increased our investments in our R&D, leveraging our capabilities and driving for electrification, robotics and digitalization. The demand for eco-friendly and sustainable products is clearly increasing, and a good example of that one was the 38% growth in our eco-portfolio during the Q1. Actually, if you would exclude the NAVIS numbers from the Q1 last year, which is also classified as an eco-portfolio, the growth in our eco-portfolio during Q1 would have exceeded 60%. What's happening next? Again, the strategic evaluation of McGregor business has started. We have appointed an investment bank to help us in evaluating the different options. And we plan to exit the heavy crane business in Kalmar. We have put the business in hold now. We are not taking any further orders and we expect to come to a conclusion regarding which is the best way to exit that business by the Q3 this year. We keep on reviewing the operational model to support the refocused group and what's the best way of setting up our operations, for example, in group level to enable that one. Our capital allocation priorities are around accelerating our M&A pipeline even further, continuing investing in R&D around electrification, robotics and digitalization, and maintaining a strong focus on mission climate actions. Our current strategy is clearly getting traction. We are growing in adjacent businesses and markets. And as I already said, the Eko portfolio grew by 38% during the Q1. And overall, our core businesses grew by about 23% in Q1. We will be solving our customers' problems around sustainability. Another good example of that one is the announcement of the first in the world electrified reed stacker coming out of Kalmar, and we already see a strong demand for that solution as well. We are investing further in that one. Again, our electrified range is expanding continuously. We've been first in the world in bringing into market truck-mounted electrified truck lifts, and we already have a third product coming out of that one, and one good example of actually the demand for that one, we announced a new record order for electric truck mounted in Europe value about 5 million euros. So very clearly we see across the board a strong demand towards more sustainable solutions, and we are in a very strong position to fulfill that demand as well through our technology offering and development. With that one, I'd like to hand over to Mikko Puolakka, who will cover the business areas. Thank you.

Thank you, Mika, and good afternoon also from my side. Let's start with Kalmar, where we had quite a nice development in the order intake. The core businesses, meaning the mobile equipment and the straddle carriers, as well as services, order intake increased compared to last year. The heavy grains, like Mika said, we have not been taking any new orders recently, and the heavy grains orders declined compared to last year. It's also good to remember that we had Navis still in quarter one last year, and excluding Navis orders from the comparison period, actually Kalmar orders would have been on last year's level. Like Mika said, we have had good traction in the environmentally friendly solutions. 30% of our forklift orders were coming from the fully electric versions and we now sold also the world's first fully electric reed stacker to Norway. As you can see from our order book, we are accumulating the order book due to the fact that the component availability in various component categories is very poor, and this is leading to extremely long lead times, extending beyond 12 months, especially in the terminal tractors. Our sales growth is coming from mobile equipment and services, And like in orders, also in sales Navis was approximately 25 million euros in Q1, and excluding Navis, the Kalmar sales growth would have been 24%. Despite the sales growth, Kalmar deliveries are still very much constrained by the limited availability of different components. Just to mention few examples like axles, hydraulics, electrical components, wire harnesses. Volume growth was the primary driver for Kalmar's profitability improvement. And if we look at the core profitability of Kalmar, i.e. excluding the heavy grains, the profitability would have been slightly above 10% in Q1. Then moving to high up, where we had an excellent performance in all financial parameters. We had a couple of larger orders in quarter one, like the 25 million euros truck mounted forklift order in the US, as well as some orders coming from the German Rheinmetall deal, which we did a couple of years ago. Sustainability is very strongly on our customers' agenda also in HAIAP, like in Kalmar's case. An example there are those fully electric truck-mounted forklift orders, including a five-year service contract. Service sales grew across all product categories, but especially in the loader cranes and demountables, as well as in services. However, like in Kalmar, also in HIAP, the component shortages, as well as lack of truck chassis, are limiting our delivery capabilities and also leading in HIAP to extraordinarily high lead times and high order book. Looking HIAP's profitability, that improved significantly, and this is coming very much from the volume growth, but also HIAP has executed a very rigorous cost control during quarter one. When looking at McGregor, despite the improved vessel contracting activity, the orders declined slightly. Some merchant vessel orders were postponed from quarter one to quarter two. We saw improvement in RORO or merchant vessel orders, however, especially in the RORO segment, but then the offshore and services orders declined. Service order decline was because of the quite sizable one of type of service modernization orders won in quarter one last year. McGregor sales growth is very much driven by services, as well as then the delivery of merchant vessel orders, which we have won during 2021. Profitability for McGregor was low at breakeven. The merchant vessel profitability, as well as services, improved in this year's Q1, but unfortunately still the offshore projects were making losses in Q1. When looking at the overall picture, like Mika already illustrated, we have a very high order book, extraordinarily high order book. The book to build has been for Kalmar mobile equipment as well as for Hayab already for several quarters, more than one. When we looked at profitability, nice improvement in comparable operating profit from 52 million to 65 million euros, primarily driven by higher sales. We had 28 million euros items affecting comparability. The biggest items here are the 9 million euros related to the merger. And then we did a 10 million impairment for Russian business related assets in quarter one. The full kind of reported operating profit was 37 million euros, a 53% improvement. And we doubled our net income during quarter one from last year's level. Cash flow was disappointing. The reasons are quite explainable. The negative cash flow, 70 million euros, negative cash flow is coming from the increase in inventories, mainly working progress in Kalmar and in Hajap. due to the component availability. And then we have been increasing also our spare parts inventories in order to support the growth in orders and sales, what you have seen. Our balance sheet has remained strong. Gearing was 38% that has increased by 11% units from last year's level. Half of that increase is coming from the dividend payment, 70 million euros, what we did in March. And then the other half is coming from the working capital increase, primarily inventories. Our so-called committed liquidity is 650 million euros. And on top of that, we have a 260 million euros credit facilities coming from commercial paper programs and overdue. So our overall liquidity is 900 million euros. Of course, giving a nice possibility for executing acquisitions if such become available. We don't have any major debt repayments coming before mid 2023. And our guidance for 2022 is unchanged. We estimate the comparable operating profit to increase from last year's 232 million euros. So that concludes the presentation, and we can move then to Q&A.

Thank you, Mikko, and thank you, Miikka. So, operator, we are ready for the questions.

Thank you. Ladies and gentlemen, if you wish to ask a question, please press 0 and 1 on your telephone keypad. If you wish to withdraw your question, you may do so by pressing 02 to cancel. There will be a brief pause while questions are being registered. So we have our first question from Massimiliano Severi from Credit Suisse. Please go ahead.

Yeah. Hi, it's Massimiliano from Credit Suisse. Thanks for taking my question. My first one would be on the margin in HIAB, clearly quite strong in Q1. And I was wondering, do you think that you can keep the margin stable or even maybe expand them year on year in 2022? Also because from Q2 onwards, you will have the price increases that you did in July kicking in. and while you will need to renew contracts with suppliers. So how should I think about margins in HIAB for 2022?

I think the margin development in HIAB overall has been quite steady. We had a little misstep, if I use that word, on Q4, where we were expecting to be able to deliver more, and we ramped up some of the related costs and that bit a little bit on the Q4 margin. But if you look at the actually Q1 to Q3 last year and then look at this, I think that gives a better reflection of the underlying performance for the high up. It is true that the pricing increases are sort of coming through now when we move into the second half. Obviously the question mark at the moment is that the inflationary environment still remains there. We have executed now or are in a process of executing another price increase now in April, and it's quite likely that we would do another price increase later this year to try to keep up with or exceed the inflationary expectations. But again, as we discussed, the environment is and the visibility is pretty poor and the situation is quite fragile. So obviously, we were hoping that we can maintain this level despite the uncertainties there.

Sure, thanks. And my second question would be on the perhaps delayed sales or delayed revenue recognition due to supply chain issues. So maybe both in terms of components and availability issues and the difficulty in shipping products due to ship availability. Can you help us quantify how much these were across the divisions in Q1?

Yeah, in general, these delays have been, I would say, more or less on the similar kind of level what we experienced in quarter four last year. We have not given a specific number, but definitely we had delays, especially in Kalmar mobile equipment, as well as in High Up during quarter one. The limiting factors are, like you said, multiple components, and then also the availability of transportation and the long delivery times.

And so also between the split between Kalmar and Hayab would be largely stable versus before?

More or less, more or less.

Okay, perfect. Thank you very much.

So we have another question from Magnus Kruber from UBS. Please go ahead.

Hi, Mikael. Okay, Magnus here from UBS. A couple of months from me as well. I think in the last quarter you seemed a bit comfortable about your timing between price hikes and cost impact. Do you feel the same confidence now after the surgeries in particular steel prices in Q1 and Could you comment a bit on the adjusted gross margin development in Q1 this year compared to last year in Kalmar and here, please? And what to expect into Q2 there?

Yeah, I mean, the component shortages are very similar. I mean, the sources or the component categories are very similar. This quarter, what we saw last quarter. And just to be quite open, like Mika said, the supply situation is very fragile at the moment. The Ukrainian war, I would say, for many companies, including ourselves, has not yet been that visible in the supply chain in quarter one. And we are, of course, working very kind of rigorously in the coming quarters to compensate any missing components due to this event, including also the Chinese COVID covid situation where basically the Shanghai port area for example is hugely congested at the moment and it's difficult to estimate that what kind of impacts that would have for the coming quarters component availability and then what comes to the Margin development in Kalmar is very much coming from the higher revenues. We have grown our investments in R&D to support the sustainable solutions. So the main driver for the profitability growth is coming from higher volumes.

Okay, so when you say they're coming from higher volumes, is it fair to say then that the price-cost impact in Q1 was largely neutral on the margins for both Kalmar and Hieb? Is that fair to say?

That's probably an optimistic view on that one. Closer to neutral in Hieb than Kalmar, Q1 was quite difficult in a sense that the cost came in faster than the pricing implementation. overall on that one we expect that situation to start to neutralize as we move through the towards the q3 now so the situation will be slightly better in q2 than it was in q1 and then should be a better again on Q3, but as you raised yourself, the question right now is around the inflationary pressures coming from the war in Ukraine. And I think we are still to be seen the impacts that the Chinese COVID lockdown and I think the eventual spreading of the COVID in China will have there as well. There is a delay on that one. The overall Ukrainian war situation, of course, has a primary impact on steel components. Overall, it has fairly limited impact on our businesses. The impact will only become visible during the Q2 and onwards. And when it comes to the Chinese COVID situation, most of the impact for us will be probably indirect, not directly from our sourcing in China, which is somewhat limited in our manufacturing operations in Europe and in North America, but more likely coming through from our suppliers, supplies being impacted on that one. And my sense would be that that estimate will be more visible during the Q3 and Q4 rather than earlier.

Okay, got it. Thanks a lot. And then also on here, very solid orders again in the quarter. And I think you commented that you held back on taking some orders there into or through Q4, the lack of visibility on the cost side and availability of components. I suspect that was not the case maybe in the first quarter. But has there been an impact from any pre-buys or anything like that with respect to potential or planned price increases as you talked about? And also if you have any comments on how April started, it's very useful.

yeah i think first of all i don't think i mean i always had this expectation throughout the whole last year that the pre-buy but every time we increase the prices the next week and next month come and orders remain a robust level as such i think the one advantage we have had has been that we were fairly early to react compared to some of our key competitors and we did a number of more incremental price changes throughout the last year I think the situation with some of our competitors is that they are now forced to contemplate considerably higher pricing increases in the short term that puts them in a disadvantage in the eyes of the customers as well. And I think that in that sense, that puts us in a fairly strong position in the market as well.

And then it's good to remember, as I said, we had in quarter one, in high up, a couple of larger orders, like the US 25 million euro order, and in Europe, for example, the Rheinmetall framework related orders. Perfect. Thank you so much.

So we have another question from Aurelio Calderon from Morgan Stanley. Please go ahead.

Hi, it's really for Morgan Stanley. Thanks for taking my questions. I've got three. I may I'll take them one at a time. The first one is around my Gregor. And I think you mentioned that you still have the offshore business still making losses. Have you booked any special provisions in this quarter as you as you did last quarter for those offshore projects? And what should we expect in terms of performance for that business going forward?

Was it around the heavy crane?

No, the McGregor offshore. We booked a couple of million euros extra costs on certain offshore related projects in Q1.

Okay, perfect. And maybe stepping back for that business, do you think, and given obviously that you have this process going on in the background, Do you think a sale is likely in this environment or do you need to see an improvement in margins before you can sell this business to someone? Just curious to know what your potential avenues for exit of this business could be.

Yeah, I think it's too early in the process to actually draw any conclusions on that one. We are just about to start the process and obviously we need to evaluate the outlook and the different options we have. This is something that I think we need to get back to you later in this year.

but the low macro profitability is very isolated to a certain product category, offshore wind-related products, so it's not across the business. The merchant business, like I said, has improved as well as the services.

Okay, great. And just one last question. From my side, and obviously just touching again on the high up margins, which were quite strong, have you had any potential, have you had any positive benefit from USD revaluation or USD strength this quarter? Or has that not been a major driver of the profit improvement and it's all been driven by volumes?

We have had some positive tailwind from the stronger US dollar. It's good to remember still that we have a fairly high or very high order book and the hedges are based on these historical orders. So we see the appreciation of the US dollar with some delay as the lead times are. are quite long but if you look overall Cargotech with the kind of comparable currencies at the US dollar and other currencies appreciation has had roughly a 2.5% positive impact on sales and orders.

Great thank you very much.

So we have another question from Johan Eliasson from Kepler Chevron. Please go ahead.

Hi, it's Johan here. Just a question on your Echo portfolio in Kalmar Mobile and HEAD. How does the margin profile look for these newer products versus your traditional let's say hybrid or fully diesel powered equipment that you sell.

It obviously varies from product to product, as the eco-portfolio includes other sort of sustainable solutions than just the electrified portfolio. But generally, if I talk about electrified equipment, the price of the equipment is higher, in some cases, considerably higher than in the similar diesel equipment, and obviously depends a little bit how much sort of battery power one puts into there. I would not say that the gross margins in terms of percentages are any better, but obviously when you are dealing with the higher value of equipment, your absolute gross margin per product is typically higher than it would be in a similar diesel equipment.

And then, I mean, aftermarket is a core part of your profitability and in what is your core business going forward. And I suppose these electrical powered products would typically generate less of a service opportunity going forward. How do you see that developing?

Yeah, you're right in a sense that obviously less spare parts and generally less wear and tear on those ones. But there are also new requirements coming with the electrified portfolio. And if you saw the announcement about the five million order intake for, for example, truck mounted forklift, it included a full service coverage. for those ones as well. And there are actually certain just practical issues there as well, because the high powered electrified equipment requires certain qualifications and training as well. So not everybody is able to maintain those vehicles on their own. So that at least in the short term is an opportunity. And overall, if you still look at our services business, our capture rates are relatively low still. And we strongly believe that with the introduction of the electric equipment and general different technology, we can actually drive a higher capture rate in those equipment. So as such, it shouldn't impact as negatively the services business as one would expect. It's good to remember that some of the diesel powered equipment spare parts actually are quite widely available, you know, from a number of different OEMs as well. That's not necessarily the case when you move towards electricity.

Okay, excellent. Many thanks.

So we have no further questions. As a reminder, ladies and gentlemen, if you wish to ask a question, please dial 0 and 1 on your telephone. And we have another question from Magnus Kruber from UBS. Please go ahead.

Thanks for taking my follow-up. I just wanted to probe a little bit around the inventory level you talked about. How do you see that pan out to the balance of the year?

Yeah, thanks for the good question. And it's a really good question. It depends very much, of course, now from the coming months and quarters, supply, subcontractor supply availability. Like we discussed earlier, for example, the Shanghai port congestion, what kind of impacts that has. If the situation would remain stable, I believe we could improve to a certain extent the inventory turnovers. but there are quite many moving components at the moment in the supply chain. One could say that in quarter one we still were able to deliver quite nicely with that capacity which was in the kind of pipeline in the supply chain or even in our factories, but now in the coming quarters we need to see that how how the deliveries are coming in from the various global supply chain networks.

Got it. I want to talk a little bit about the offshore project in McGregor. Could you be a little more specific on how much headwind you had from that, and when you, assuming everything goes to plan, that that project will be wrapped up or finalized?

The biggest offshore project we are planning to deliver very late this year and the tests will happen early next year. So basically throughout the whole year is the execution phase of that project still.

Okay, so the year-over-year weakness that we saw in the quarter was basically down to this project since the commercial vessels were pretty much improving.

I mean, the profitability margin for this and a few other projects are on a very low level, and when we are recognizing revenue for this kind of low margin projects, that's kind of burdening the offshore division profitability until the project has been completed. and that completion based on the current estimation will happen early next year.

Okay, thank you. And I guess the final one on this overhang of equipment that was not able to be delivered due to supply chain constraints or component shortages. You said it was sort of similar to Q4. That means that you haven't really been building anything additional. It's just that the situation is the same and the overhang remains the same sequentially.

Yeah, all in all, of course, the situation is changing on, I would say, almost on a daily basis. The visibility to some suppliers' ability to deliver is fairly short. So it can happen in some months that some delivery batches don't get the needed components and then it postponed to the following month. And that can happen even within these quarters. So, like Mika said, a very fragile situation still.

Got it. Perfect. Thanks a lot. That's all for me.

So, we have another question from Similiano Severi from Credit Suisse. Please go ahead.

Hi. Thanks for taking my follow-up. My first follow-up would be on McGregor orders. I was wondering if you could maybe comment on why the lag between the container ship orders and McGregor orders is currently being wider than usual. Usually we spoke about nine months. We are seeing a little bit more than that. If you could maybe comment on this.

Yeah, it's a good question. You generally say that it's six to 12 months, and it looks like that's a lot closer to 12 months. Could be a number of different reasons, the shipyard capacity at the moment. I think in China, especially if the ships are built there, there are obviously the COVID issues that are restricting the activity at the moment. We have seen, as Mikko was pointing out, the pipeline to increase and actually see already some solid evidence about the order development getting stronger during the Q2. So we would expect this to be more visible during the Q2 already.

Okay, thanks. And my final one would be very shortly on the component availability issue, what you have seen so far in April versus Q1, if it's stable or whether China has already started to be seen and it's getting slightly worse than during Q1.

Yeah, I think the usual suspects are still continuing to be there, the wire harnesses, some of the electric and hydraulic components as well. I would say that overall, if you look at the situation during 21 and look at that list of the suppliers, the number of the critical suppliers have actually come down. So we have seen slight improvement happening overall in the supply chain within the traditional channels, if I use that word. I think the uncertainty comes now partly from Ukraine, although that impact will be quite limited to certain product areas in Cargodeck. And I do not expect that to have a sort of huge impact overall for us. But then the big question mark personally for me at the moment is the developing situation in China. There are some components we are getting directly to our supply chain, into our manufacturing units in US and in Europe from China, but the bigger uncertainty relates to our suppliers availability of their components coming from China. And I think those impacts probably will be more visible during the second half. And at this stage, it's just very, very difficult to predict how that situation will develop.

So it's mainly because you already have the inventory that you need to produce in Q2. This is more or less the idea.

Yeah, to a great extent, we have components available, but of course, we do not have everything yet for quarter two deliveries. So, I mean, if you miss some critical component in an equipment, we can't deliver it to customer. It's not safe. It cannot be used. So this is the challenge we are dealing with at the moment.

Yeah, of course. Thank you very much.

So, there are no further questions at this time.

Okay. Thank you. Thank you for the great questions and great answers. If you noticed, we actually published an updated financial calendar, and we will publish our second quarter results already on 20th of July.