Mutares SE & Co. KGaA

Good afternoon, everyone, and welcome to the Mutaris earnings call for Q1 2024. On the call today, the CEO, Rogan Lyke, and the CFO, Mark Friedrich, will present the results and most relevant events of Q1 2024. After the presentation, they will be available to answer your questions. The presentation shown is available on the Mutaris website after the call. Before we start, I would like to remind you that this presentation contains forward-looking statements, including projections which may not develop as currently expected. I therefore kindly ask you to take note of the precautionary warning about forward-looking statements that is included in the materials on our website. Now let me hand over to Robin Lyke.

Yeah, good afternoon from my side, dear investors, dear ladies and gentlemen. My name is Robin Leick, and I'm the founder of Botaris. And today, we would like to look at our business model, and that's what I will start with, and the key highlights of the first quarter. And the financials will be then presented by Mark, and I will come back with the outlook of the entire year and the future. So what are we doing? What are we doing in general? And that's also my personal background. So I was a restructuring manager for big corporates, working for groups like L'Oreal Group and what they're in charge of, I was in charge for underperforming assets. And these underperforming assets, you can either close them down, which is for a European big group quite complex, or you can try to restructure them by yourself. The key problem is that in many cases, the good management is not available anymore. They've left the company already. And then you need external consultants, and then you take the McKinsey guys in, or you take the Roland Bergers, the PWC, very good consultants in, but you don't have a real management team. And in many of these cases, then you decide to go for an exit. And this was my former role. My former role was I was heading the M&A department, and then I took over now the other side. I wanted to be one of these investors. And I knew it cost me like two years until the company is restructured when I'm on the corporate side. And that's why at that time we decided when starting the Mutaris Adventure 16 years ago that I will go to these big corporates and we will ask them to be cheaper than a closure and to be more efficient than the big corporate can operate itself. And by this we started the Mutaris Adventure here in Munich. I'm talking to you today. And today, as you can see, we are in 11 European countries. And we are quite proud and happy that we are open now in Shanghai and China and also the US. So we are an international company going to these big corporates worldwide and asking them, do you have companies, portfolios that do not work? And we will enter with our own teams into these companies. And we will make it cheaper than a restructuring by yourself or a close down. And this is our Mutaris DNA. We ask then the seller to fund the business with a strong balance sheet. So the business per se that we acquire is self-funded for we ask the seller to pay us for doing the restructuring which is necessary in the companies to acquire. And so we buy these companies via shelf companies. We do not buy them by the ultimate holding company, but we have more than 50 companies which are holding companies, which then acquire. This is important as we do not want to be influenced directly by the losses which appear in the operations. And we do generate profit day one. So why do we generate profit day one after having acquired? So we pay a certain purchase price, but then we send our consulting team in. And we ask the portfolio company that we acquired that our consultants are paid day one. And by this, we have a consulting income, which is today like 10 million on a monthly base. The second source of profit that we do have is dividends. When a company is turned around, we take our dividends off the portfolio company which is profitable. And the third source of profit is the exits. So we have three different sources of profit. consulting income, dividend and exits. And by this, we generate our main KPI, which is the net result of the holding. And I'm quite happy to present today that we are quite strong, starting quite strong in Q1 2024. So in which companies do we invest? This is very engineering driven, very much automotive. So we have a part, a sector, which is automotive business, which where we do almost 3 billion today. Then we have businesses which are engineering, machine tooling driven, also very German based. This is our second sector. Then we have a service part. The service part that we do logistics, for example. And this is the third part. And then the fourth part, which we just opened, is consumer and retail. So we want to have a very big footprint when it comes to our local offices, but we also want to have a wide footprint when it comes to sectors in which we do invest. And always with the same criteria. When we invest into a company, we are looking on a strong balance sheet that we can do the restructuring of the existing business. And that's why we in many cases only pay a symbolic price as a purchase price, but we ask for cash in the company, we ask for fixed assets in the company and current assets that these assets help us to pay for the restructuring which is necessary for the P&L looks very weak. So we buy companies that do have maybe 500 million in sales, but also 50 million cash loss. And this brings me to the next point. So the target company we are looking for is a company 100 to 750 million in turnover. And 90% of the case is cash losing. And our main saying is we want to be recognized. So if a big corporate decides to exit one of these companies, it must be first in mind they should think about Mutaris. First in mind, first in choice. And today we are quite happy for we are now included in the S-stacks in Germany and due to the strong performance in sales, but also in net income of the holdings. And so we start here with our time in 2020, but we could also start in 2017. And this time the company had about a billion euros in sales and only 20 million net profit on holding level. This net profit, which is composed in consulting income and dividends and exit proceeds. And three years in a row, only 20 million net income. And then we together as a team, we said, what can we do to bring this company in 2018 until 2028 to a 10 billion company, to a 5 billion company? And at that time, the company won a billion in sales. So we thought, how can we bring more sales? How can we buy more companies? What can we do to have more dynamics in our business? And at that moment, we had an office in Munich. We had an office in Paris and in Milano. We decided to open up many European offices. And today we have 11 European offices and three offices abroad. And this was our idea, that we wanted to grow to 5 billion and we wanted to have 100 million net profit until 2028. And we are very happy that last year we achieved already the 4.7 billion euros in sales, and more than 100 million net profit. And now we have given us new targets. For we want stronger to grow, that's also why we opened India, China and the US. For we said now until 2028, we want to have a company which is a 10 billion company with 200 million net profit. And where is it also reflected? It's reflected in both in the development of our bond facility which we issued, as well as on the share price and on the share development of the dividends. So as you can see here, we paid out €1.50 in 2020 and 2021. We increased this dividend to €1.75 last year and this year we changed even our dividend policy for before it was a minimum dividend. of one euro and now we said our minimum dividend is two euros and we even give a bonus dividend this year of 25 cent that's why we'll come up with 225 dividend on our this year shareholder meeting So when we buy these companies, we cluster our business and our operational team in four different stages. So we have like 150 people on board and they're helping us in the entire value chain. So they take over key positions when it comes to CEO, when it comes to production, when it comes to sales. And we really enter into these companies, a team of five to 10 people. We enter into this company and then they're really dirty and hard work starts. For these companies, they do not make money. In these companies, there are many conflicts. So we have conflicts with the works council in many cases. There are conflicts with the customer for the product was not delivered in time, was quality issues. We have problems with the suppliers which not have been paid. And when we enter into these companies, we try to bring all stakeholders on the table. and to solve the issue. Our target is that we want to solve an issue for a big corporate. And this is, in many cases, really tough work. So you have to go to the customers, you have to go to the works council, and you have to convince them that if everyone helps together, we will bring the company back on track and make the company strong again and profitable again. And so in the acquisition phase, what we do is, and we already invested here, you see here, 427 million euros. This is what we paid as a purchase price or as an equity commitment into the company. And then we start earning money. How do we do it? We send our team in. And our team will start the restructuring and will help our companies to be profitable to come to the optimization. And in optimization stage, we are already profitable. Mainly, we take our team out and send them to the next acquisition that we do. And then we decide what to do. Should we go for an add-on? So we successfully did, for example, this Hilo group, which I will present later on. Or do we go for an exit in this situation or take out dividends in this portfolio company, which is already profitable? And then we go to a stage which is called harvesting, where we really look on exiting and do our third stream of profit, which is the exit proceeds. A view on our portfolio, it's quite a wide range of different companies. I just want to name today maybe EFASEC, a company which is in the electric distribution in Portugal. which we bought from Portuguese state. And when we entered into this company, we took a big team in and we asked Christian and Wolf, two individuals, to run the show there together with the local team. And we were there just for the 100 days meeting. And it was very successfully presented what the company is now going to improve, how we are going to improve in the different sectors. And we are quite well on track here in the development of this company. But as you can see, we have quite a balanced portfolio. This is also important to us for we want not to be dependent on early cycle business or late cycle business. So we want to have companies which are non-cyclic. We want to have companies which are in the early stage, but also in the late stage that we do not depend too much on the economical development in each of these countries. And we don't want to be only dependent on different sectors. That's why today Mutaris is really a global player, which looks for international expansion in Asia, in India, and also in the US. some of the highlights of last year. So when we acquired, and I will show later on the Hylo Group, we have now acquired Prince, a deal that is long on our table. We're very happy that we successfully could acquire this company and now increase our footprint. Now we have a Chinese entity, which we have acquired in addition to a German one and a Bulgarian one. We acquired Tamachino, also new to us. This is now in the food business in Italy. where we run kind of sushi shops in Italy, and we bought Magirus, the firefighting company in Germany, but not only in Germany, in Italy. So it's a very international company which is selling firefighting cars. And on the capital market bonds, we increased our bonds. So today we talk about a 250 million ticket that we achieved on the financing side. And we were able to increase now the dividend for this year, as already mentioned, to 225 per share. And that's why the share price shows a very nice development. On the south side, thanks to our Nordics team, we were able to exit Frigo Scania, a cool-in logistic player in the Nordics. where we were very successfully selling this company to Duxa Group after having acquired it from the Norwegian post, restructured, sold some French businesses, which were not really fitting to the business anymore, acquired the Nordic business, and were very successfully selling this company early this year. That's why the net result in Q1 looks quite promising. And we sold as well Valti Group. look to India and this is for me personally something special for my father he came from northern part of India and he left in the 50s to Germany to study in Germany they came from a very rich family my father's family they had coal mines copper mines and they left India and he lost everything for everything was nationalized the communism came into India and And so he had no belongings anymore, and he started by stretch. And coming now to India, back in my father's home country, fulfills me, of course, with a lot of gratitude, and I'm very happy. And today we already talked about the company that we have in India. We have two different companies. We bought from Cooper Standard SFC. After having acquired, this was only a $50 million business with almost $10 million cash loss. And we sent our team in. At that time, it was run by Nimit. Nimit was running today our Indian operations. And he turned this company to a 70 million company and 10 million cash flow positive company with the heavy restructuring that he has to undergo there. So he closed down plants. He opened new plants. But today we have very successfully managed to turn around in this company. And we opened up our Moltex plant that we bought from Marlon Hummel, which is now going to start. We just opened it. So we have already a footprint in India and we will open our new office now in Mumbai, run by Nimit, which will be then operating. And there we are looking exactly for the same we are looking here in Europe. So we are looking for underperforming assets that a big corporate could not turn around anymore. And we want to enter with our own team, with our own Indian team, then to do the turnaround for these companies and make the company profitable again. When we acquired SFC India, in our board meetings, so often we discussed about the closure of SFC India. And when I look today, what has happened in this few years, as a company which is running so properly and after such a short period of time, really profitable again. So what are our customers today? And when I was in India, I visited the main customers. I went to Tata, to Maruti and Volkswagen. And for us, it's so important that we are close to the customers. If we want to do the restructuring, we need at first to have the trust of the customer. You need to have the trust of the workers' council. You need to have the trust of the unions. You need to talk to the people and understand where is really the issue. What is the problem? For we have to listen and to help the companies to be profitable again. And then they told me, Mr. Like, when you acquired SFC India, I went into your plant. This was one of the purchasing managers of Tata told me. And he said it was so complex. different units fighting each other and your CEO was not able to control the situation anymore. But now, after you have put your team in, the situation calmed down And today we talk about a very profitable business. And that's what we want to show. That's what we want to show, by the way, to the seller, that it's better to give us a company and that we take over as an entrepreneur. For what we do when we buy these companies, we do simply run these companies like I run my own household. So one of these... These golden rules is that we will not spend more than money what's coming in. And we cannot play the banks for our customers. But we have to bring this company into a situation where we bring best-in-class product at the right time to our customer. That's our job. And that's what we have to do on a very entrepreneurial way. Just having a word on Hylo Group. Hylo is a company producing locking system and tinges for car industry. And when we bought Kiko, the situation was the following. We bought this company, but we had a severe problem with Porsche and quality issues. Before it was only a producer of parts and all of a sudden we were a system supplier and we were not able to fix the issue. And then we sent our team in with Radu, who is today an engineering head at Mutaris, and we asked him to do the turnaround and to fix a problem with Porsche. And he was able to do so, turned around, Kiko Group, and then we decided to go for add-on acquisitions. And we bought from the Chinese state, we bought Ice Age, a company based in China and Germany, had a lot of new order intake and were able to bring them this group together and to think about where to produce, what are the customers, where we have these Chinese customers, the European ones. And then we bought HPC and Prince Kinematics that I just mentioned, which are all working in the same sector. locking and hinges, but today we talk about a 300 million company. And bringing all these companies together helps us in different ways. So on the one side, you are stronger with your customer. If you go now to VW and you can produce them from China, from Bulgaria, from Romania, but also from Germany, you have a different footprint, which is very beneficial to them. And on the other side, when you buy steel, it's easier to buy steel if you have five companies than if you have only one. So the critical mass is simply there. And by this, I would like to conclude my first speech, and I would like to hand over to our CFO, Marc.

Thanks, Robin. So when looking at the financials, and like always, we start with a big overview of the development in the group, where we reached almost 1.4 billion of sales. And when looking at the right side, spending a first glance here at the different development of the segments, we see that it's actually quite mixed. We see that automotive and mobility increased quite substantially in revenue, but also in profitability. And the other segments experience a bit of a setback in adjusted EVTA, but I will run through the different reasons when running through the different segments. Overall, the development is quite on track compared to what we communicated just a couple of weeks ago, the guidance for 2024. So Mutara's holding reached almost 30 million of revenues in consulting, so run rate approximately 10 million a month, and was obviously benefiting from the closing of the exit of Frigos Gania in Q1, and thereby reached a bit more than 50 million of net income. already in Q1. Starting with automotive and mobility, and you see it right away, just the five groups that we have here in the segment are combining the majority of sales, reaching 600 million, mainly driven by M&A activity, especially for the Ferry United group, where we accomplished a lot of transactions in 2023. And the profitability pretty much picks up a lot due to the progress and transformation programs, especially in SFC group, but also in part of the FAIR United group. And on the other hand, we see a bit of a challenging environment for Peugeot, where we planned an expansion to Asia that is a bit lagging behind, where we now kind of changed a bit the way of approaching the markets. We think that also the entry with Mutaris China and now with Mutaris India can support the way forward for Peugeot. And in addition, also in 2024, M&A activity will remain a key part of the development of the segment. We just heard from Robin what he explained about the development of Hylo Group, where it totally made sense to add two new entities to combine the existing two entities in the Hylo Group. Engineering and technology is a segment that is suffering a bit due to the challenging environment in the construction industry. On the other hand, we also have a really decent development at all companies that are more leaning towards the energy infrastructure business. So EFASEC looks from the way forward quite interesting, them also quite okay. Then we have, in addition, the Steyr Motors that is a producer of special or engines for special vehicles, looks also quite good. And we will see it in the life cycle. We finally also made quite good progress at Edicom and Gemini. Then coming to goods and services, quite a broad segment as always, where we increased revenue by approximately 50% due to mainly the M&A activity. The majority goes clearly to the former Riva Group. And in addition, Terra NOA Group is developing quite nice when it comes to the organic development. And that's what you see here with approximately 12 million revenue that is contributing to the almost 290. On the other end, we also see across the board here, even though you might not see it in the adjusted VDA, quite a good development in the progress of the transformation programs so that we are looking here ahead with a very good feeling when it comes to pretty much all of these entities here in the segment. Then the last segment, retail and food, where we still have LaPierre dominating the segment. And the market remains clearly challenging in France here, where we saw the setback here in organic growth, so a decrease in revenue compared to last year. where the team is now focusing a lot on improving the cost base. It looks quite good what they find here and what we can deliver throughout the year. So also here we are confident when it comes to the execution of the transformation program and quite confident at least looking a year ahead when the market may be normalized, then also that the revenue is picking up. The M&A activity also in all segments here also a key factor for the development with adding approximately 50 million of revenues. As always in the communication in Q1, we cluster pretty much the segment into the new or into the phases, newly based on the development that we saw in the transformation programs and also the budgets that have been approved by us. And you see that we have added now a lot into optimization, so right in the middle, that the top remains quite unchanged. And as always, that we add all new companies that have been recently acquired, let's say in the last 12 months, are still remain in the realignment. When explaining a bit more about the ones that we stick out here with the color, with the red, we see that we moved Steyr Motors from realignment to harvesting right away because we pretty much did all we can and now focusing a lot on customer development, increasing the order intakes, and thereby developing a lot the top line. There's not... much left on the cost side, so the transformation program is quite well executed. It's all about developing the company from a top-line perspective, and that's why we have moved it right away into the harvesting stage because the company is able to also deliver dividends. Then we have in the optimization phase, a very united group where we accomplished a lot of add-on acquisitions in 2023. And it's now all about pretty much executing on the synergy potential that we had in mind here. Then you see in the middle also Go Collective, Mobilitas, and Relobas. So the former Ariba group where we are also a bit ahead of track. When it comes to transformation program, we're back on the market in terms of tendering and are quite confident that the companies will develop throughout the year quite well. Then we also highlighted Guascore Energy, where we had a complicated year, 2023. We're not executing as fast as we wanted. The transformation program, but have now changed here and there a bit, what we thought might be it might be executed better and now we see a nice progress here. That's why we also said it's now time for the optimization program. The budget looks quite good and quite improved compared to last year. Then we have Conexus, a company that is operating mainly in the electricity business. So a company that is known formally as Zirti. And then we have combined it with the TECO business, formerly known as Eksi. And the company was providing a budget that is 180% turnaround compared to last year with a full order book, especially for electricity. The energy part, therefore, the company is well on track delivering quite a positive adjusted EBITDA throughout the year. And then last but not least, Gemini and ADCOMs, where we finally were able to ramp up revenues, especially at Gemini, quite substantially compared to last year, pretty much adding more than 50% here. And also in ADCOMs, we reached a milestone just a couple of weeks ago by signing a big contract here that will put us in the position to now focus on the execution of that contract and even coming back to market to win other contracts. That's why we have now also lifted Gemini and it comes to optimization. And when looking at the right side, you see that the optimization bucket is now quite loaded when it comes to revenue. That's due to the big portfolio companies that are now in the bucket here, namely Ferrell, Armanios, and Lapeer, that will continue throughout the year. And we will see that revenue is coming to the realignment phase where we most likely will add, obviously, new companies too. And we are overall quite okay with the clustering of segment. We obviously focus a lot on the delivery of the transformation programs that have been agreed by us and focusing on kind of smart transactions when it comes to the M&A side. And with this, I hand over back to Robin for the closing.

Thank you, Marc. Yeah, standstill is not allowed. We are on a very fast track here. And when we look on our pipeline meeting, we see a lot of opportunities that are globally now presented to us. In India, I just had a talk with an advisor in the US and in Europe as well. So we see, in China as well, of course, we see a lot of deal opportunities. And this is for you, a very attractive access to a market which is normally closed. We are a stock listed company, but we run as a private equity fund. And it is still owned by the family in majority. So I myself, we do have 25% as a family. And we have shown over the last years, we promised and we delivered. I mean, this helps if after 16 years, we promise. In most of the years, we improved our dividend. And this is our strategy, that we want to be very dividend-friendly, very growth-orientated. So our target is to buy one company a month, which this year has happened until now. And we are very transparent. So everything that we do, being a stock-listed company now in the SDAX, we have to explain, and we are proud to explain it. And that's also why we are proud that we are, of course, long-term investors, where we focus very much on environment, on social, and on governments. Coming to our targets again. And we are quite happy that we were able to achieve 100 million net profit over the three sources, the three pillars, consulting income, dividend, and exit proceeds last year. And as already shown by Mark, we are now at 50 million net income after Q1. And the target is that you want to achieve more than 100 million to be better than last year. But it's a daily fight for the right deal. It's a daily fight to make this company profitable. And it's also tough. I mean, we have seen situations which we have not seen, which we have not calculated before. For example, the higher interest rates. Or we have not calculated the Ukraine war. We have not calculated COVID. And there are so many risks worldwide. People, investors sometimes ask me, Mr. Like, how can you do it? How can you fulfill? And my answer is always only with the team. And with our 250 people in total on board, which are all super strong individuals who fight every day for improving. And standstill is not possible at Mataras. And that's why I'm very happy to have this presentation today and looking forward now for your questions. Thank you.

Thank you very much. Ladies and gentlemen, if you would like to ask a question now and you are dialed in the conference call, please press nine and the star key on your telephone keypad. If you would like to withdraw your question again, please press nine and star again. So one moment for the first question, please. All right, the first question comes from Zafer Ruzgar of Pareto Securities. Please go ahead.

Yes, hello, gentlemen, and thank you for taking my questions. I have two questions. The first question is regarding your net income and the composition of the net income. Can you guide us through the moving parts of your net income in the first quarter? For example, what was the exact net gain from Fregoscandia and did you also have in the first quarter maybe somewhat higher OPEX compared to the prior quarters?

So starting with the first part of your question, so the Frigo Scandia contribution is around 50 million. We have a bit of an earn out here. It's outstanding depending on the result of Frigo in the next couple of years. And you're totally right. We had a bit of one-off expenses that are included partly in the OPEX. Approximately 2.5 million is allocated to the increase in the bond. It's 100 million. And we had approximately 3 million on the divestment of white tea.

OK, so around 5.5 million more than usually. Yeah. OK, got it. Thanks. And my second question is regarding the automotive segment and relatively strong performance here. That was a bit surprising. I mean, given the fact that this is at least what we hear from the market, the overall sector is facing increasing headwinds and demand is going down. So how should we think about the adjusted DBTA you achieved here in the first quarter? Is that the expected run rate for the rest of the year?

No, it's not. That's a clear answer, no. It's not times four and that makes up the whole Here, we had a bit of, or we had a one-off effect here in the fair united group, which is the one-off compensation. And on the other hand, we see good progress in the transformation. Nevertheless, we don't see that this is continuing like this. The main question in these days is, are these one-off compensations not more normal than one-off? So that's why we leave it in They're just a DBDA, and therefore you see the high number, but it's not the run rate.

And it's very difficult for us to predict what are the call-offs from the automotive company. So I was once a CEO of an automotive company, and at that time you had a detailed planning how much sales each month will come. These days it's very difficult to predict how much volumes you will really sell.

Okay, understood. Is there any kind of guidance for the segment you can share with us for the adjusted DBTA? I mean, last year it was slightly positive. Is this what we can at least expect for this year?

Exactly. I think we can at least expect that it remains positive until the end of the year. Should be also not just slightly, should be actually positive. I think what's key is what I said during the presentation is that M&A remains a key factor for the segment in order to still look into the right add-on acquisitions for the different groups. I think this is something that remains key besides what we need to do on the ground in the participations within our daily work.

Okay, fine. Thank you. That's it from my side. Thank you very much.

Thanks a lot. Ladies and gentlemen, if you wish to ask a question, please press 9 and Starkey on your telephone keypad. And we are moving on. The next question is from Marie Therese Rubner of Hauk Aufheuser Investment Banking. Please go ahead.

Yes, good afternoon. Do you hear me well?

We do.

Okay, wonderful.

Better than last time.

Okay, again, apologies for last time. Apologies for that. So I do have a couple of questions, and I will ask them one by one, if you don't mind. So the first question has to do with the holding level financials, which obviously are very important with respect to the dividend, etc. So what I would like to understand is what is the annual... level of costs we should factor in at holding level given your expansion into India, China? Yeah, maybe that's the first question.

I think it doesn't change the picture, the expenses that we have for these two countries. When looking at India, The agreed budget is a bit of headhunting and the office that combined maybe half a million in 2024. And also when looking at China, where we have ramped up the ops team quite substantially already to seven people. So... Actually, China by itself should be financed within the country. We gave it a kickstart here in the beginning of the year, and we'll do one more contribution in May. That combined then, total amount that we spent then for China, approximately 2 million euros. So the expansion that we do here to these two countries, and maybe when also adding the US, less than 5 million.

But this is also to be explained why only this short amounts or limited amounts. So we do take like in China, seven operations guys. So we have in China, three M&A guys. Now we added seven operationals and we sent these guys into our portfolio companies and they get paid by the portfolio companies through our consulting income. That's why this is not an overhead cost. This is a variable cost, which brings money to holding. Okay.

Excellent. Thanks. The next question has to do with the level of dividends we can expect at holding level. I mean, in the first quarter, I guess portfolio income is the consulting income that you have received or is this a separate line?

No, so in Q1, we have not included any dividend. Okay. So we pretty much included the exit of Rigo Scania into financial income, even though it's a dividend.

As communicated, we have a minimum dividend of two euros, which would represent with 20 million shares about 40 million.

Okay. And so in terms of the dividends that you want to collect from the companies that can pay dividends to you, should we assume it's more or less that level or what?

I think all of this is a bit early now, right? So we have an entire forecast for the year, which will be an increase in comparison to this year's guidance. And how it will split up depends a bit on the exit proceeds that we will achieve in addition, plus the dividends.

OK. And maybe one more question on the holding level. What was the cash at holding level as of end Q1, and what cash inflow do you expect from ?

So at the end of Q1, we had a bit more than $100 million. And we have not consumed the the earn out yet. So might be throughout the year to 3 million more. But that's it.

Okay, and then single Scandia. It has closed, right? It's closed. The money is already okay. Okay. And then I had maybe one question on the the retail and food segment, which is the new the new segment you split out. So is there a way you can you can isolate, you know, the companies that delivered negative 2.3 million in adjusted EBITDA in Q1 23? How, you know, what's the what what was their contribution to adjusted EBITDA in Q1 24, just to get a sense of how those have developed?

So retail food. So two of the six companies were not there a year ago. So we only, well, three actually, also Gleason and Moikarai was not there. So we talk only about Fasana, Kippa, La Perre. And What we see is pretty much that the Keepa is doing quite well, really according to budget, and Q1, which was not the same performance in a year ago, and Fasana also improving slightly, but that doesn't change the picture here also in the segment. The development is pretty much dominated by Lapea. And that's where I also said that the organic growth setback that you see on the right side here, where it's a bit more than 10%, that is actually Lapea. So we have a setback in the market of approximately 10% in revenue. And therefore, the adjusted EBITDA is also developing negatively in Q1 compared to a year ago.

Okay, so we talked about retail and food, right? La paire is in that bracket. Yeah. Okay. Exactly. All right. Okay, no, that's fine. Okay, thanks a lot. These were my questions.

Thank you very much. There are no more questions in the queue as of now, so dear participants, if you would like to ask a question, please press nine star on your telephone keypad now. So one moment for the last question, please. To raise a question, you can press nine and the star key. So there seem no questions to be incoming. So I give the full back to Mr. Laik and Mr. Friedrich.

Yeah, thanks a lot for your attendance and looking forward to this exciting year that we have now this global footprint and the growing team. And we hope that we can deliver as you promised. See you in Q2. Thank you. Bye-bye.