Nokian Tyres Plc Unsp/Adr

Good afternoon from Helsinki and welcome to Nokian Tires Q2 24 results conference call. My name is Päivi Antola. I'm heading the investor relations in Nokian Tires. And together in this call, I have Jukka Moitio, the president and CEO of the company, and Nico Haavisto, the CFO. As usual in this call, we will go through the results and talk about some other topicals as well. And this will be presented by Jukka and Nipko, followed by a Q&A. So, Jukka, the floor is yours.

Thank you, Päivi. Welcome on my behalf. And indeed, we'll talk about the results and some of the recent highlights that have happened in the company. But we will go through the presentation. I go through the presentation called Improved Tire Availability, Driving Sales Growth in a Challenging Environment. I taped it on July 19th and I moved to page 1, which is the Romanian factory progress. We reported on July 1st that the first tire was manufactured at the Oradea factory in Romania. We are going to remind that the commercial production is expected to start in 2025. However, the 60-member launch team has been trained in Finland and they are now ready start the preparations for the commercial production. And we are also saying that the investment is in budget and on schedule. And indeed, this is the first zero CO2 emission tire factory in the world. And so in that sense, we are making history. And you see the team and you see also the first tire made in Romania on page two. And then I'll move to page three, which is just an aerial picture of the Romania factory, the site in June 2024. And on the left-hand side, you see the mixing building, which is being prepared right now. You see in the middle, the production building, and also on the right-hand side, the small office, which is part of the production building. And then on the right-hand side, things could warehouse. And as you see at the end of June, site has been prepared, the buildings are being prepared and we are very much on schedule to have the ribbon cutting in September and then to have the full commercial production in early 2025. Then I move to page four which is a similar aerial picture of our factory in the US Dayton and we have now completed the investments in Dayton so all the hardware All the investments have been done, and also the Finnish Good Warehouse, which can house up to 600,000 tyres, has been opened during the month of June, and indeed now the site is complete in terms of the capability to produce. And we will produce there all-season tyres and all-weather car tyres for North American markets, And also we started the light truck tire production this year. The plan was originally, when this factory was decided in 2017, that some of the light truck tire production would have been in Russia and then they would have supported the North American market. as you all know, who have been following the company for some time, that indeed we needed to sell the Russia factory in 2022, and we made a change in the production schedule in Dayton factory, and this change has now been completed and is coming to the market during the course of 2024. So this says that the investment phase has been completed in the US and the aerial picture compared to Romania, I moved to page five, and that is progress in the renewable material, which can potentially replace carbon black in tires. So we made the first ever concept tire with the renewable lignin-based material made by United Paper Mills, a Finnish fire materials company. It's called UPM Biomotion RFF trademark. and that is a product that United Petroleum will be making in their factory in Germany. It has the potential to replace a significant part of a carbon plaque and reduces the need for fossil materials and lowers the carbon emissions in tyre itself and in tyre manufacturing. And as a reminder, our target is to increase the share of recycled or renewable materials in tires to 50% by 2030. And this, again, is one step on that way. You may remember that earlier this year, we also made an agreement to buy recycled carbon black that can be used in tires. So two ways to improve the sustainability of tires and tire making. And now I move to page six, which is the net sales and segments operating profit in quarter two. Net sales increased by 11.2% with comparable currencies. That was driven by the improved tire availability, and especially Central Europe, which was the biggest growth area, strongest growth area, and that was achieved by better availability, especially with the off-take tires. Our segment's EBITDA at 46.8 million versus 41.3 in 2023. There was an improvement there. Obviously, we had the issue of political strikes in Finland in the first half of 2024, and we have already earlier said that the impact is roughly about 20 million Euros in EBITDA, other which more than half was in quarter one and then less than half in quarter two. We started the quarter two in the month of April. The first eight days were impacted by political strikes so that we couldn't produce anything in Nokia and neither could we ship anything in the first eight days. segments operating profit at €20.1 million versus €15.2 million in 2023, and higher sales and lower raw material costs helped our profitability improve. I move to page 7, which is reminding that we have a strong balance sheet, despite the fact that we are investing heavily, so our capital expenditure is 159 million in the first six months. Lion's share, a clear majority of those investments are related to Dayton warehouse, Dayton factory completion, as well as, of course, the Oradea factory build-up. And that number, 159 million, is clearly higher than 87 million that we invested in capital expenditure in 2023. This is also the time when our interest rate net debt is at its highest, because we are investing significantly, and our generation of EBITDA is still not at the level where we aim for, and the reason being that the factories that we are building are not yet delivering any EBITDA. And first six months sales, 561 million versus 529.5 million in 2023. And as just a reminder, 20 million euros impact from the political strikes in the first half on EBITDA. And then I will hand over to Niko to talk about the profitability in more detail.

Niko, please go ahead. Thank you. through the segments a little bit in more detail. So in the passenger car tire segment, we have the higher sales and improved profitability, and especially the sales increase was driven by the Central Europe. And in total, the net sales being 189 million euros, there is a growth a little bit more than 24% in comparable currencies. Also the KSP with comparable currencies increased slightly. So there is a better mix and and. For price mix and and and lower cost as well. The segments operating profit was in Q2 7.1 million euros. In the page. Nine, there is the passenger car tires breach. There you see that the volume growth is the plus 22%, 33 million euros, price and mix positive with 4 million euros, and the currency is not playing that big of a role in Q2. In the segments operating bridge, I would like to highlight there the supply chain cost. So it was increased largely due to the uptake imports, as well as, as Jukka pointed out, the Red Sea crisis, as well as the political strikes here in Finland. On the page 10, In the middle column there, the price and mix, so both were slightly positive in terms of development there, so the 2.4%. This will moderate towards or during the H2 when we have more products and sales volume in the Central Europe. Of course, the winter tires will flatten that a little bit as well, but especially the central Europe now being playing a bigger role, it will moderate going forward. Page 11 on the heavy tire segment, the market demand, especially in the OE was was weak, as we said already in Q1, that we saw that during the H1, it will be a weak demand in the OE. Yet we had the sales of 60 million euros, so there was a decrease of some 10%, but at the same time, I'm proud that we were able to keep the segments operating profit at around 13% level. So that is a good achievement in that business and in this market environment. And then, finally, our Vianor business. So in terms of sales, we were at the last year's level. The operating profit decreased by 2 million euros. And there, you know, we continue to say that the inflation to put that fully into the pricing. We have some difficulties there, but we are doing our best as we speak. And in terms of guidance, we get that unchanged, i.e. that our net sales and segments operating profit is expected to grow significantly compared to last year. the premises as well that we see that the raw material costs are expected to start gradually increase during the second half of this year. And with that, I hand back to Jukka to wrap it up.

Thank you, Niko. So, we continue our journey towards 2 billion net sales and strong profits. On the investment phase, we are halfway, so we started in 2023 and we complete at the end of 2025. We've done the capacity increase in Finland, we've completed now the US factory and now it's operational focus in Galveston. So full boot phase reduction, higher volume, all that, but no investment requirements anymore as we completed the warehouse. New factory in Romania. The first tire has been produced. However, we keep on installing and making sure that the equipment are fully available and fully capable. And we have ribbon cutting in September. Then we make the products for testing and then we are ready for the commercial production in early 2025. And growing contract manufacturing, so compared to 2023, contract manufacturing volumes that have helped us to achieve higher volume in Nordics as well as especially in Central Europe are there, and they help us to ensure that market position net sales develop favorably. And they will be then part of our long-term future as well. Then we move to growth phase 2026-2027. increasing market penetration, building new products, increased capacity, and improved and enhanced operational capabilities. In heavy tires, we expect to continue to grow above market level. And then in the north, we have the distribution excellence in the Nordics. And we target to have 2 billion on net sales, and this is our journey. At this point of time, we are halfway in the investment phase. However, we can report positive things in terms of completing the US factory investment. Also, that we are very much on schedule and under budget in Romania, or in budget in Romania, even slightly below budget. And then we look forward to start the production in 2025. So this is where we are. So I hand over back to Paivi for questions and answers.

Thank you, Jukka. Thank you, Niko. So it's time for the Q&A. Before that, maybe in order to say one question from the audience, a couple of words about the European Commission's ongoing antitrust inspections in entire companies initiated in January. Nokian Tires doesn't have any new information on the outcome of the inspection, and we can't comment on an ongoing investigation. Nokian Tires is fully cooperating with the authorities. And now we are ready for the questions, please.

If you wish to ask a question, please dial pound key 5. on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key six on your telephone keypad. The next question comes from Michael Jacks from Bank of America. Please go ahead. Michael Jacks Bank of America, your line is now unmuted. Please go ahead. The next question comes from Mika Ihamaki from DNB Markets. Please go ahead.

Hi, this is Mika from D&B. Thanks for taking my question. You're expecting raw materials to increase in the second half of the year. Can you quantify in absolute basis how much higher this would be year over year? And then secondly, do you expect to offset these costs with higher prices?

We are not quantifying that, but we are expecting to moderate, but of course there is a lot of fluctuation currently with the raw material prices, but I don't think we see the similar type of price decreases that what we've seen. So the expectation is that they will moderate going forward.

Thank you. And second question, if I may, with now US facilities fully ramped up, what is your capacity utilization at the moment out of the roughly 4 million nominal? And is it right to assume that there will be no further ramp-up related costs from the US?

Yeah, so we've said that the ramp-up is done there. We are meaning that all the equipment and the facilities are done, i.e. the warehouse being the final one. There will be still during this year some exclusions, and those are related to those products that we are still running kind of as a first-time products there. and we will have the full capacity available going to 2025. Okay, thanks.

The next question comes from Bolslor Lasocki from Thomson Reuters. Please go ahead.

Hello. My question would be about the recent concerns over tariffs on Chinese electric vehicles. What I am wondering about is what kind of impact, if at all, that could have on Nokian tires. Do you expect the tariffs to affect somehow your production or, on the other hand, do you expect Any actions from China that could hurt the performance of Nokian tires?

We don't expect any immediate impacts on our performance. as we are in the replacement tire market. But obviously we need to pay attention to what is happening in the political and the legislation so that there are future decisions or impacts that will come our way. But at this moment, we don't see any that will influence us or impact us.

Thank you.

The next question comes from Thomas Besson from Kepler Chouvriax. Please go ahead.

Thank you very much. I guess it's me. It's Thomas from Kepler Chouvriax. I have a few questions, please. I'd like to ask them one by one, if that's OK. Firstly, can you give us a broad indication, not a precise number, on the amount of contract manufacturing volumes you are projecting now for 2024, 2025, given the state of the markets you're operating in? And is there any risk that your contract manufacturing volumes may be eventually impacted by some changes in import duties? That's the first question.

So we said initially that when we went in contract manufacturing that It was somewhere up to 3 million tires, and we are somewhere between 2 and 3 million at this moment. So depending, of course, how the market and how the demand will evolve, we have either we are at the higher end or we are at the mid-range of those contract manufacturing. uh and then when we go into 25 uh obviously we expect that our volumes go up and so part of that will come from uh what are they are commercial production and then we will see which part and how much will come from the content manufacturing but it's clear that this virtual factory content manufacturing will remain part of our future strategy and also just to remind that in the heavy tires we also rely on contact manufacturing in bus and truck tires as we don't manufacture them ourselves so we have the two sources or two revenue plans where we have the contract manufacturing helping us thank you very much second question can you share with us your latest projection for capex in 24 and in 25 if you're slightly above the half part for 300 million for the year

How much do you see that for the year and falling eventually next year?

Yeah, the COPEX for this year is roughly 350 million euros, and we've spent roughly 160 million in H1 so far, or during the H1. And then it will be a little bit north of 200 million next year, the COPEX.

Thank you very much. Last question, please. UK, you've announced you're going to retire sometime this year. I wanted to know if there was any progress achieved on trying to find a replacement for you at some point in the second half.

Yes, indeed, I've announced that I will retire during the course of this year, but the board will work on this successor solution and so on. And I've also indicated that I am, of course, taking care and in the position until a successor plan has been announced. So, obviously, there will be no gap between my plans and what the board will announce.

Okay, so for the time being, no progress to talk about.

The board has not announced anything, so that's all I can say.

Okay, clear. Perfect, very clear. Thank you very much, Yuka. Thank you for your answers.

Thank you.

The next question comes from Rauli Juva from Indies. Please go ahead.

Hi, Raul from Indus here. I would like to follow up on the US factory. Could you say that are you ramping up the production kind of as fast as you can at the moment towards the 4 million next year or is the limiting factor more for the supply or the demand, if you put it that way?

basically such that we have a new equipment and we have a little bit new production plan because as i mentioned in the early part of the presentation that early on we had a plan to do certain tires in russia and then support the us We are ramping up those equipment. So we will be actually focusing on operations only. So all the equipment are installed and they are bolted on the floor. So it's all about capability to produce and efficiency and scrap reduction and all that. And we are basically able to sell everything we produce in Dayton. So it's really up to us to make sure that the throughput and the productivity improves. We expect that we are on full speed at the end of the year.

Yeah, that's clear. And then another question, given your sales, especially in the winter season fell short of the kind of initial expectations. Do you have a meaningful amount of winter tires in the inventory that you could actually sell more volumes this year than you are producing?

We have a good availability of tires, and obviously we've been able to secure off-take tires. Unfortunately, we lost certain days of production in tires, so this is something that we need to catch up, but we are quite optimistic about the tire volumes in the second half, and this is of course something that is seasonal for us. And at this point of time, we still are strongly seasonal. But we are in a good position. Unfortunately, this is a political strike, but other than that, we are really fine.

That's clear.

Thank you for talking to me.

The next question comes from Akshat Kakkar from J.P. Morgan. Please go ahead.

Yes, good afternoon. Thank you for taking my questions. The first one, sorry to come back to contract manufacturing. You mentioned you expect two to three million tires from contract manufacturing this year. Could you just clarify how much of that was already done in the first half, please?

No, we don't disclose how they are split between the winter or season or summer. But you can assume, of course, that the major part of the central European growth is based on contract tires. And then to a lesser degree in Nordics, where we have a strong manufacturing of premium tires in Nokia, and then the contract tires are complementing the premium tires of e-category and so on. And of course, then we have the whole bus and truck, which is in the heavy tires that comes from contract manufacturing.

Thank you. The second one on passenger car tires, you highlighted very strong growth in Central Europe in the first half of the year. Could you just talk about your expectations around the second half? You mentioned you are optimistic around winter tire sales. If you could just give us some comments around the overall inventory that you see in the market and the sell-out demand that you're seeing in Europe, please.

Yeah, we expect that when we look at the market evolution, of course, 2023 was a very soft market and there was, of course, inventory pipeline and all that. And so, therefore, the selling was quite soft on the inventories by the end of the year and early part of 2024 came to a normalized level. And when we look at the demand overall in this year, we see positive. from our point of view, what is important is that a year ago, we pretty much had only the winter tires for the off-take. This year, we have, of course, summer tires off-season and winter tires in addition to increased capability in both in Nokia and in Dayton. So obviously, these are the facts that we have our optimism based on. But the overall market, we see positive numbers in the demand. Of course, again, when we go into the latter part of the year, let's see how it evolves. But so far, the outlook is positive. Not a significant growth, but clearly positive.

Understood. The very last question on, again, the competitive environment in Europe. If you take a step back, could you just remind us on where we are in terms of competition from imported tyres or cheap imports in Europe today? Do you see a trend of those imports now picking up? And if you could just talk about your assumptions on what you're seeing in the market in terms of pricing, kind of linked to both those questions.

Yeah, I think in the pricing kind of, I think we've said there that we applied to marketplace based uh pricing uh in terms of the competition especially from the asia we see that growing but but we are in the premium premium uh segment so so we need to take keep a good look on that but we are not too worried at this point as well that we have the tires available in our inventories thank you

The next question comes from Artem Beletsky from SEB. Please go ahead.

Yes, good afternoon and thank you for taking my questions. Actually, we'll ask one by one. And the first one is really starting with passenger car tires. And could you maybe provide some type of indication in terms of volume development in second half of this year, putting it into a context of 16% growth in first half? in H1, given the fact that there have been disruptions related to strikes and the red sea situation and we are ramping up production, so could you provide us with some more details on this front?

We can basically say that obviously a year ago when we went into the second half, we did not have off-take, we only had the winter tires and so We didn't have the all-season tires. Neither did we have a number of product categories that are supportive of our premium tires. So clearly the availability is better, and also there are obvious markets or market segments which we did not address at all or didn't have a chance to do that. So in that sense, we have opportunities which are based on availability and based on targeting historical volumes where we can grow. And we see that, as we said, that the outlook, and we reiterated the outlook, that we expect that the growth continues. But it's also simply based on the fact that the product availability is much better.

Okay, that's clear. And maybe one aspect, what you mentioned in Q1, is this Reggie situation, and it was impacting deliveries of tech tires. Has those tires basically been delivered to customers or has the situation, so to speak, normalized on that front?

Yeah, I think some of them are delivered, but of course, there were also summer tires and those are not delivered to the customers. But I don't see that as a big kind of an issue as right now in terms of our guidance, but Clearly some of them are in our inventories.

Okay, that's clear. And maybe the last one from my side is really related to ramp up or preparation related costs. Is the guidance for this year of roughly 40 million euros still valid? And do we have some sorts in terms of 25 when you will be starting commercial production at Romania?

So the roughly 40 million is a correct number. what we are guiding at this point. Let's see at the end of the year what it will be. We don't give a guidance related to 2025 in terms of the ramp-up expenses, but there will be those from Romania, but not from the US anymore. All right, that's clear. Thank you.

The next question comes from Camina from Stifle. Please go ahead.

Good afternoon. This is Pierre with Stifle. I've got three questions, if I may. Coming back to the row mat increase in the prepared comment, you said that you would expect a significant increase in raw material in H2. But I'm not sure I understood the comment you made. about the magnitude of that impact in H2 from raw material. That would be my first question.

Yeah, I didn't say significant, but I said that they are moderating the raw material. So we've seen a decrease in the raw material prices, but at this point we see that that decline is not continuing, but they are kind of more flattening out. So that's our estimation for the H2.

Okay, correct. Thank you for the clarification. Second question would be on the price mix, which was, I would say, significantly positive in the second quarter. I've got two questions on that one. How should we think about price mix into the second half of the year? Is it going to be in the magnitude of 2% plus tailwind? And was it more price or a mix in the second quarter? Thank you.

Yeah, I think it's rather somewhere around zero. It's not the plus as we see right now for the H2. So zero is a better guess at this point.

Right. And any indication for the second quarter? Will it be more price or more mix for the Plus 2.4 in the passenger car tyre operating coverage?

We will of course see how the role of the tyres evolve and see how the market is rising as such. But obviously what will happen is that we have a bit of volume in the mix with the Central European driven more. So we have more seasoned tyres and such that they are not in the mix with the Plus 2.4. weeks but in price we expect that the okay and that's it thank you the next question comes from Pasi Verzenin from Nordea please go ahead great thanks this is Pasi from Nordea and I do have two questions

First one related to this new factory in Romania. So what could be the expected sales volumes coming out from the Romanian factory next year? And secondly, when I look at the market consensus EBIT for this year, I think it's close to 98 million. So are you truly confident about this full year consensus, especially regarding you already reported 5 million from the first half of this year? So would it be possible that you actually reach 12% EBIT margin later on this year? Thanks.

So we stick with our guidance and we cannot comment the consensus as you know, Pasi, but when we look at the volumes in Romania, so we have a ramp-up plan, which is significant but of course we will not comment exact volumes when we go into the budget of next year then we can talk about a little bit what the contribution of Romania is but we are prepared to service the European markets based on volumes out of Romania factory and we have about a slightly less than 100 SKUs that we will make in Romania in 2025 and those will count significant part of our volume in in Central Europe, but on top of that we will have off-take volumes and off-take products that complement our revenue plan in Central Europe. But maybe more about that when we come into budget time and we talk about 2025 performance.

Okay, thanks. I understand. But regarding the full ramp-up in Romania, should we expect the full run rate to reach in 2027 or even 2026?

It should be ready in late 2026 and we should see a good volume in 2027. We installed certain machines during the course of 2025 and early 2026 and we expect that they are fully capable and fully placed by and productive and up and running totally in 27.

Yes, I hear you. Thanks. That was all.

As a reminder, if you wish to ask a question, please dial pound key 5 on your telephone keypad. The next question comes from Michael Jacks from Bank of America. Please go ahead.

Hi, if you can hear me, it's Michael Jacks from Bank of America. I just have two questions remaining. First one, just perhaps on Dayton, could you share any color and how demand for the Nokian brand is developing in the U.S.? ? particularly for summer and all season categories. Any areas that are worse than expected? And would you say that the volume here is defined currently more by demand or availability of supply from Dayton? And secondly, do you have any updates for us on the government subsidy expected for the Romania plant? Thank you.

In North America, so we have the all-season, all-weather and winter tires and no summer tires really. And then light truck is a new entry in 2024. So those are things. Our volumes in North America are today defined more by the other So this is the situation today, and therefore the most important job for us is to make sure that the productivity and throughput will improve.

And then, Nicole, about... Yes, the Romanian stay date. So we have applied that, and it's subject to the European Commission approval. And as I said earlier, we are expecting some results hopefully during Q3 this year.

understood, thank you, and maybe just one more question, if I may. Shipping costs, shipping rates are obviously becoming a headwind for the broader industry already since Q2 and the Red Sea crisis. Is this something that could be an incremental headwind for you for H2, or is this something that is already in the base in Q2? Thank you.

If they continue to increase like they've been, then it is a headwind. But at this moment, we are okay with it.

We had quite a bit of headwind in the first half. We had inventories and high inventory levels in Finland, for example, because we couldn't ship anything and had to stop the production and all that. So we had a lot of supply chain headwind in the first half. So that will continue. or a big part of that will go away. But then, of course, if these shipping rates are significantly higher, then they may create additional headwinds.

All right. Understood. Thank you very much.

The next question comes from Boleslaw Lasocki from Thomson Reuters. Please go ahead.

Hello again. I just have a question about the United States and the possible impact of the presidential elections. What kind of impact do you think there could be at all? I'm talking about tariffs, for instance.

Yeah, that is something that we need to assess and they can see but obviously important for us is that we have a fully invested factory in the us and therefore we are able to service the market locally and then whatever things will come with the tariffs or imports and so on so we need to assess obviously a big part of our winter tire imports go to exports from europe go to canada and therefore most of the northern europe and the u.s market This is a good situation to be in, but as your question implies, there may be surprises and there may be things that come all the company's way in the future. But so far, we are quite pleased of the position that we are in.

Thank you. The next question comes from Thomas Besson from Kepler-Tubriax. Please go ahead.

Thank you for taking my follow-up questions. I love the way your machine pronounced the EU gift in French. First follow-up question, please. Can you comment on the proportion of winter tiles that have been shipped already in Q2 to wholesale or to retail distribution? We were used for almost 20 years. to the fact that Nukian was already shipping a decent amount of winter tiles, mostly because of your Russian exposure. So is it fair to assume that there was a low amount of winter tile volumes shipped in Q2, and most of it will be in Q3, or you already had a decent proportion in Q2?

If you look at the mix we had, we reported in the first six months, winter tiles were about 45% of our total shipments. That's a pretty normal level, isn't it? So not really a whole lot of advanced shipments, neither late shipments, so we are pretty much on a normal course at this point.

Okay, thank you. May I ask you at what point and at what level you expect Nokian's net debt to peak over the next 12, 18, 24 months, please?

Yeah, I think that the interest rate will be peaking by this year end, so that is the highest as Jukka said as well in his presentation. So during this year, we are at our peak.

Thank you. Last question. I understood that maybe I misunderstood at Q1 stage that you are going to give a more precise guide for the year at Q2 stage. Did I misunderstand or do you want to wait until the Q3 stage to precise your guidance?

Yeah, I think we need to wait and see until Q3 in terms of guidance. But still, we've said that we'd get the guidance as such. And let's see in Q3, are we able to give more precise guidance for the full year then.

Understood. Many thanks.

The next question comes from Mika Ihemaki from DNB Markets. Please go ahead.

Thanks. This is Mika from DNB. Still, to clarify the raw materials and prices here. Do I now understand right that for the whole year, raw material picture expected to moderate, but they still will be a headwind for the second half? And then you mentioned that flat or zero contribution into H2 from price mix, so doesn't this imply a headwind to margins?

So still, what I said that the raw material prices, how we are seeing that are moderating, i.e. that we see some slight increases there as we speak. But I've also said that in earlier calls that we guaranteed some part of that volume and the prices. And also the more unknown there is this, recyclable and renewables, but that's more towards next year. But still we see that they will moderate, i.e. that this decrease is not continuing. And there will be a headwind from that in our H2 as well.

And then when you look at the price mix, so the mix will be probably a negative component because we have more Central European volumes available this year compared to prior year. However, the price we expected to match the price with raw material development.

Okay, that's clear. Thank you.

There are no more questions at this time. So I hand the conference back to the speakers.

Thank you. If there are no additional questions, it's time to finish the call. Thank you all for participating and wishing you all a nice summer. Thank you.

Thank you. Have a nice summer.