Prosieben Sat 1 Media

Good morning, ladies and gentlemen. Welcome to our Q1 2024 Results Conference Call of Proceben Z1 Media SE. Today's conference is being recorded. Today's call is hosted by Mr. Dirk Verlander. Please go ahead, sir.

Thank you, operator, and good morning, ladies and gentlemen, also from my side, and welcome to Proceben Z1's Q1 2024 Results Conference Call, which will be hosted by our CFO, Martin Mildner. During the presentation, Martin will take you through the financial and operational performance of the group and comment on our full year outlook. As you probably know, we already published preliminary quarterly figures on May 14, which have been confirmed by our actual results today. As always, the presentation will be followed by a Q&A session. With this, I now hand over to Martin.

Thanks a lot and good morning everyone also from my side and thanks for joining our Q1 2024 results call. Before we go into the details, let me give you a quick overview of our key financial highlights in the first quarter, which we summarized on page number four of our presentation. As expected, we closed the first quarter of 2024 with revenue growth across large parts of our portfolio. Overall, our group revenues increased by 6% year-on-year to €867 million. Our entertainment business and our non-core activities each contributed about half of the group's revenue growth, while the ongoing strong growth in our segment commercial ventures offset the unsatisfied performance of our segment dating video. The advertising business, which is particularly important for us, continues to recover. This positive trend was driven by higher TV core advertising revenues on the one hand, And the continued strong growth of our digital smart advertising business in the DACH region, on the other hand. Especially, Join has continued to grow strongly. Join's award revenues increased by 50%, while advertising revenues across the entertainment segment grew by 5%. This shows that we managed to monetize our digital reach better and better. Groups adjusted EBITDA. increased by 35% to 72 million euros, despite significant higher program expenses. This increase is not only a result of our revenue growth. We are also seeing clear effects of our efficiency measures with respect to our cost structure. At the same time, the commerce and venture segment more than quadrupled its adjusted EBITDA, driven by the digital platform and commerce assets, Verivox and Flaconi. So to sum it up, in 2023, we set a new course both operationally and strategically. These measures are now paying off. We are developing full in line with our full year targets and therefore we are able to confirm our outlook for 2024, which we communicated already in March. With this broader summary, let me now guide you through all of our financials for the first quarter of the year. Let me start on page 6 with our group level. As already announced on April 15, when we published preliminary figures, the start of 2024 has been very promising for ProSiebenSat.1, underscoring the effectiveness of our strategic approach. Group revenues increased by 6% to €867 million. Reflecting the continued positive trend in our advertising business, and the strong growth in the commerce and venture segment. As I already mentioned before, our non-core activities, i.e. commerce and ventures and dating and video combined, contributed about 50% to group revenue growth. On a currency and portfolio adjusted basis, we saw a revenue growth of 7%. The group's adjusted EBITDA grew by 35% on 19 million to 72 million euros. despite the announced significant increase in our program expenses. This significant development in earnings reflects both the group's revenue growth and our consistent cost management. Last year, ProSiebenSat1 group took targeted cost measures to make the organization leaner and more efficient. The cost program was fully implemented at the end of October last year, meaning that the resulting savings effects will materialize in the course of 2024 and were already clearly visible in the EBITDA of this quarter. Our adjusted net income has significantly improved by 22 million euros, mainly reflecting the development of the adjusted EBITDA. Our adjusted operating free cash flow saw a significant increase of 63 million euros to 38 million euros. Let's turn to page 7 and take a closer look at our entertainment business, which is our most important segment. Revenues in the entertainment segment increased by 5%, both on a reported basis and on a portfolio and currency adjusted basis. Entertainment advertising dark revenues increased by 5% in the first quarter of this year. TV core advertising revenues grew by 4% in Q1 2024. after already being close to the previous year's level at the end of last year. At the same time, digital and smart advertising revenues continued to grow by 9%, mainly thanks to our streaming platform JOIN, which contributed the lion's share of these revenue streams. JOIN increased its avort revenues by 50% year-on-year in Q1 2024. This shows that ProSieben.Eins is increasingly monetizing its digital reach. Our distribution revenues grow by 9% in Q1 2024 due to a higher reach and increased HD penetration through full coverage on all major distribution platforms, as for example our most recently announced deal with Deutsche Telekom on the Magenta TV. Revenues in other businesses grow by 18% in Q1. This increase was mainly driven by the export business of our streaming platform JOIN. Adjusted EBITDA in the entertainment segment improved by 47%, or 14 million euros to 45 million euros despite the announced increase in programming expenses. At 242 million euros, programming expenses in the first quarter were 8% or 18 million euros higher than in the same quarter of the previous year. With a clear focus on exclusive local content and the associated increase in programming expenses, we aim to strengthen our market share in linear TV and the growth of JOIN. The negative cost effect was more than offset by the positive revenue development of the high-margin advertising business and lower costs due to the efficiency program implemented last year. Please now turn to page number 8. where we are now coming to our segment Commerce and Ventures. This segment recorded a very dynamic revenue growth of 20% on a reported basis and even 23% on a portfolio and currency adjusted basis. Thanks to an improving market environment, our advertising business within this segment, especially 7Ventures, increased by 4% in the first quarter of 2024. The digital platform commerce business, which is mainly related to the Newcom group, grew by 23% in the first quarter. The main growth drivers were the beauty and lifestyle business with Flaconi and the consumer advice business with the online comparison portal Verivox. Both businesses achieved significant double-digit revenue growth. Verivox grew dynamically in a healthy market environment following the easing of the situation on the energy markets, while Flaconi also developed very positive despite continued consumer restraint. And I'd like to mention again that this development has to be seen in light of the already strong revenue growth developments of both companies during the last year, 2023, where Verivox was growing over the entire year by more than 100% and Flaconi by more than 20%. The decline in the experiences business is due to the deconsolidation and its following exit of Regionio in June 2023. Its contribution to revenues in the first quarter of last year was 2 million euros. Looking at the development of adjusted EBITDA, Commerce & Ventures increased its previous year's figures from 4 million euros to 17 million euros, which is an increase of more than four times. This was mainly driven by the revenue performance of Verivox and Flaconi. Another positive factor was the deconsolidation of Regiondo, which had contributed a negative result in the previous year, 2023. Let's now have a look at the performance of dating and video on page nine, which was, as I already said at the beginning, again, not satisfying for us. Revenues of the dating and video segment totalled 107 million euros, which means a decrease of 9% on 10 million euros. Dating revenues decreased by 12%, partly due to the challenging competitive environment, but in addition revenues were impacted by the effects from the German Fair Consumer Contracts Regulation, which was introduced in March 2022. This particularly affects the subscription models of the Parship and Elite Partner platforms and had not yet had a full impact in the same quarter last year. At the end of the first quarter of 2024, we assume that all affected contract terms will now reflect the effects of the German Fair Consumer Contracts Regulation and as of today, we do not foresee any further effects resulting from regulatory decisions. In the video business, we managed to narrow the year-on-year decrease to 4%, representing an 18% subsequent growth compared to the last fourth quarter of 2023. Focusing Livebox on our owned and operated brands has had a good start to the year, with revenues from virtual goods growing by double-digit year-on-year. The adjusted EBITDA of the dating and video segment decreased by 21% in Q1 of this year. This year-on-year decline reflects the segment's revenue performance, in particular the high margin subscription model in the dating segment. The Parship Meat Group had already responded to the revenue situation last year with cost adjustments and measures to increase efficiency. and was therefore able to somewhat counteract the revenue decline, especially in the video business. Here, advertising campaigns and promotions for owned and operated apps MeetMe and TACT supported growth, while streamer incentives lead to higher broadcaster fees. However, the already mentioned efficiency measures helped to mitigate the decline in revenues. So let me continue with comments on the financial leverage and net debt development of our group on page 10 of the presentation. At the end of the first quarter, the group's net financial debt amounted to 1,553,000,000 euros, which represents a reduction of roughly 130,000,000 euros compared to the end of Q1 last year. Our financial leverage ratio improved to 2.6 times at the end of the first quarter and is therefore at the lower end of the targeted range of 2.5 times to 3.0 times for the financial year 2024. On the right hand of our presentation, you can see the debt maturity profile of ProSiebenSat1. As it shows, we use various debt financing instruments for the purpose of the group financing. This group financing is regulatory adjusted with respect to volumes and maturities. In this context, in April 2024, we extended the raised majority, i.e. 353 million euros, of the term loan tranche of the syndicated loan, which previously matured in April 2026 by a further year until April 2027. The remaining part of this term loan tranche of 47 million euros remains still due in April 2026. Let's now take a closer look at the operational performance starting again with our core business, entertainment and JOIN. Our entertainment platform JOIN performed quite well or very well I would say in Q1 and set a new record for the second time in a row. JOIN once again showed double digit growth in all KPIs. First, an increase in monthly video users of 42% to 6.5 million. Second, The viewer view time in minutes grow by 21% to 9.2 billion. Thirdly, joint's A-word revenues increase by 50%. On the one hand, this success is driven by distribution deals such as with Magenta as already mentioned. These deals are increasing joint's reach. On the other hand, the performance of joint is driven by lighthouse formats that attracts large audiences. One example here is of course German's Next Top Model. The format has been watched on JOIN more than 1 million viewers in March. And we won't stop here. We continue to focus on our ambition to establish JOIN as a leading, freely available entertainment platform for everyone in the German-speaking countries. The upcoming launch of JOIN in Switzerland in June of this year marks the next step on our way forward. And our strategy is paying off. JOIN is in the center of our digital activities. and we are working with full speed on its expansion. This is why we are investing more in local and live content. With exclusive programs, we are sharpening our brand profile and we are strengthening our market position against multinational streaming providers. Over the course of the year, we will, as already indicated and reflected in our full year outlook, increase our programming expenses by around 80 million euros. In the first quarter, the programming expenses were up by 18 million euros. Our investments in local content are already showing results. In primetime, which is particularly relevant for the advertising market, the audience share improved to 20.1%. At the same time, we recognized an incremental increase in net reach with our top programs via Join. So, please turn to the next page. What's truly important, our local focus is appreciated by our viewers. We want to build on this success by introducing new reality and comedy formats in the upcoming months, such as the vampire comedy series The Upir with Farim Yardim. And we offer several successful formats, such as the Landarztpraxis, now already in the second season. However, we also have to try out certain local formats first in order to now how they are received by our viewers, and we realize that some of them are less successful, like Das Küstenrevier, in English the coastal area, or Gestrandet in den Flitterwochen in English, stranded on honeymoon. Both formats did not perform as well as expected by us, but we are consistently working on it. Our content pipeline is full of great new formats. We will show them on our TV channels as well as on our streaming platform JOIN. On JOIN, They add significant reach and they also allow for platform-independent consumption no matter where and when our viewers want to watch their programs. Let's now move again to our commerce and venture portfolio. Over the last year, we have transformed our portfolio in order to increase revenue but also adjusted EBITDA. And we did this with clear success. Today, we see a positive trend across the commerce and venture segment. In Q1, the segment grew very significantly and profitably. Especially, the digital platform and commerce portfolio with Verivox and Flaconi is performing really strongly. Both assets generated double digital revenue growth. While Verivox developed profitably in a sound market environment, Flaconi outperformed the growing online beauty market in Q1. This was not least supported by a brand campaign and improvements we made to our products. Based on the last 12 months, Verivox achieved revenues of €179 million and Flaconi exceeded the €400 million mark for the first time with €410 million. This represents a record figure for both companies and reinforce our belief that the same process we have initiated will be successfully implemented. As you all know and as discussed heavily before our annual general meeting last month, we are pursuing an active portfolio management with a clear aim of realizing synergies within the group on the one hand and realizing the value of our large majority but non-core business-related investments such as Verivox and Flaconia on the other hand. The proceeds from these kinds of disposals would significantly reduce the groups in debt and our financial leverage ratio. At the same time, this balanced financial situation will allow us to invest even more in our core business activities. With this, let's turn to the dating and video segment. In our dating and video segment, the focus of our live streaming business helped us to a good start to the year. After two challenging years, we saw an improvement in our owned and operated apps business in February and March. This growth in our video revenues is driven in particular by a significant number of streamers who have switched from competitors' platforms to our own apps. So let me conclude the presentation with our outlook for 2024, which you can see on page 16. When we look ahead to the following months, we have to take various effects into account. For example, the major sport events, the Summer Olympics and the European Football Championship. They will not be broadcasted by ProSiebenSatRheinz. In addition, there is a seasonality resulting from the different comparative figures for the previous year. After a weak first half of 2023, ProSiebenSat1 has gained significant momentum towards the end of the year 2023. Even though the market and economic environment remains challenging, we are confident about the year 2024. Our strategy works. We close the first quarter in line with our full-year targets. After a strong start to the year, we will continue to focus clearly on the strategically relevant business areas relating to our entertainment portfolio, and we will continue our consistent management of cost, cash flows, and last but not least, the management of our portfolio strategy. What does it mean to our numbers? We continue to aim for a full-year consolidated revenue of around 3,095,000,000 euros with a variance of plus minus 150,000,000 euros. At the same time, we expect an adjusted EBITDA of 575,000,000 euros with a variance of plus minus 50 million euros, therefore on the midpoint of the previous year level. As a conclusion, we therefore confirm our outlook for the revenues and earnings, and the same applies to all our other important financial KPIs. Needless to say that our outlook does not include any potential impact of our portfolio strategy with respect to any divestments and any other acquisitions. I'm now looking forward to your questions and hand over back to Dirk, I think.

Or back to the operator. Please go ahead.

Sure. If you would like to ask a question, please signal by pressing star 1 on your telephone keypad. If you are using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. Again, press star 1 to ask a question. We will pause for just a moment to allow everyone an opportunity to signal for questions. We will take our first question. Annick Mars from Bernstein, your line is open. Please go ahead.

Good morning. My first question is if you could give us a bit of an indication of what you see in terms of TV advertising trends in the second quarter. My second question is, so I guess Venevox and Flaconi are among the assets to be sold soon. Can you give us an idea of if you're talking to someone at this stage? And then my third question is, you talked about dating. Dating is still weak, particularly, I guess, in Germany. So can you confirm that actually eHarmony and Meet are growing? If you could give us basically dating trends per brand. Thank you.

So with respect to your first question regarding the trends of the TV advertising market for the second quarter, I think what we can see is that we had a little bit weaker April, which is from our point of view clearly related to the Eastern time, which was last year in April and this year in March. And we see a clear good trend, even a better trend in May and also in June. So, therefore, we would assume that the second quarter is in line with the first quarter from the TV advertising business. Regarding your second question, whether we are in talks with TV, potential buyers for Verivox and Flaconi and there I think my answer you can assume that we are here in a process and we would not give any detail to the process so far but as we stated also in the AGM we are in a process and of course at the right point of time we are also talking of course to potential buyers.

And Annick this is Dirk speaking maybe a quick comment also on the performance of the dating and video portfolio. We are usually not disclosing the performance on a per brand basis. But it's fair to assume that eHarmony also was not performing as good as in the past. The US market is also very competitive, as you might have seen also in terms of the results of our larger peer match group. And in terms of the video business, I think it's interesting to have a look on page 16 in our presentation, where you can certainly see that video revenues have declined from 53 million last year to 50 million this year. However, what is really important here is that our owned and operated business has shown growth of 8%. So we have here benefited from the streamers which have moved to our platforms and have contributed quite good growth. And it may be too early here to call this a trend, but it's definitely a helpful development and might further limit any potential future decline in the video business.

Thank you.

We'll take our next question. Julian Rock from Berkeley. Your line is open. Please go ahead.

Yes, thank you for taking the question. The first two ones are on join. On page 12, you gave us 9.2 billion minutes for join for Q1. Could we get total minutes linear and nonlinear in that country? And then the second question is you highlight that joint revenue is up 50% in Q1. How much is it of the 66 million of digital and smart in Q1? And if it is up 50% but smart is only up 9%, what is declining or not growing a lot? And then last question on Verivox and Flaconi. I get your answer. You're in the process. You won't comment. But is there a minimum price you want? Are you willing to walk away from selling those assets if the price is not good enough? And what would be plan B in that case? Thank you.

Julian, let me maybe take the first question in terms of Joyn's video performance. The 9.2 billion, or we are not disclosing the share of total video view time. However, I think it's interesting. What I can say is that the total video view time of all of our digital video platforms has contributed a mid to high single digit share to the total video view time of the group. And JOIN is obviously one of the major contributors to this performance. But as you know, this is something we are working on and maybe in the future we will also provide more details. But for you, I think it's important to know that JOIN is a main driver of our digital video performance and will likely be continued to do so. Maybe let me also take then a second question in terms of revenue share of JOIN. You're right. Obviously, the digital and smart advertising revenues are not up as much as JOIN. This is due to the fact that JOIN last year only contributed 15% so far. of the total digital and smart advertising revenues. However, with a 50% increase, we have now exceeded a level of 20%. Also here, it's still not the lion's share of our digital and smart advertising revenues, but it's the main revenue growth contributor. What you should also keep in mind is that last year was still benefiting from digital advertising revenues, which were related to the NHLs. as you might know, we lost the rights to our key competitor, RTL, and last year this was still quite an important business also for our digital operations, which has led to a decline in, let's say, non-join or non-addressable TV advertising-related revenues.

Okay, Dirk. Then let's take me to the third question, which is really a strategic and relevant question, Julian, but I think you asked whether... we have a minimum price and what's happening if the price is not reached and what are our fallback scenarios. I would really like to give you some more flavor on this. Because first of all, we are talking about two companies with Verivox and Flaconi, which are really developing quite well. And I stated several times, that these companies are not loss-making companies. We are not talking about fire sets. They're contributing to our earnings. So, therefore, we are, first of all, really happy with it. We always said clearly that they are not in our core strategy, that they are non-core assets, and we like to sell it. In fact, we like to concentrate on our core business in the entertainment segment. And we... also stated during our preparation of the AGM that we are clearly thinking from a commercial point of view our net debt is really related or can be seen as an acquisition financing for these kind of three assets including also the Parship Meat Group and if you then look at our refinancing structure and our maturity I think it is clear that this will become relevant in 2027 so that we have now a lot of time for a clear and structured process. And we are, due to the environment and due to the performance of the business, really confident that within this timeframe, we are really happy and seeing a good way to exit on the companies for a fair valuation. And I think this is what we like to achieve, a fair valuation. And I always say a fair valuation is If the buyer is saying he pays a little bit too much and we are saying we were getting a little bit not enough. And so, therefore, this is what we like to reach, a fair valuation. And during the process, we will find out what a fair valuation maybe means. But currently, it is from our point of view too early to give any indication on it. And last but not least, I'd like to highlight again that in all of the three assets, we agreed with General Atlantic on a preferred share mechanism. where we have in total more or less 700 million preferred shares. And that means from every euro we were getting in from the proceeds, 700 million are first going to us. So, therefore, this has also always taken into account that you cannot only look at our stake in UCOM and in partial regroup, but that you also have to always consider the preferred share mechanism on this. In fact, that there's no catch-up or whatever that these kind of projects proceeds are always going firstly to us. I hope this was a long answer but hopefully a little bit more clarity for you.

Yes, very clear. Thank you.

Once again, press star 1 to ask a question. We will take our next question. Connor O'Shea from Kepler Chair Room. Your line is open. Please go ahead.

Yes, thank you, Imani. Thanks for taking my questions. Three quick questions from my side. So firstly, just to clarify, when you said that the second quarter, you expect the second quarter advertising to be in line, do you mean by that the growth should be in line, a year-on-year growth? Is that what you mean? So we should expect mid-single digit for the overall quarter, second quarter? Let's say in German advertising at least. Then the second question, I wonder if you could give us some more details about the Magenta distribution deal with Deutsche Telekom. When it was signed, was it a factor for the whole first quarter and which revenue lines is it improving overall? And then third question on the dating business. Now that you say that the regulatory drag should be fully cycled through in the first quarter for the German business, would you expect the German business to be broadly stable from the second quarter on or are there other factors dragging revenues down?

Thanks for your questions. Maybe I'll start with the first one regarding the development of the second quarter and our linear advertising revenues. So it was percentage-wise or percentage perspective, not on the total number perspective. So we are assuming that from a growth perspective, we are growing in the same percentage as in the first quarter probably. on your third question regarding the regulatory impact on the dating and video business in Germany. Yes, of course, we hope and we think that it is now washed out after the new law is in place for at least 24 months and that we are then stabilizing the business again and hopefully also growing with the business again, but of course on a lower level than before. But this is clearly what we envisage that due to the new regulation that the level is lower, but that we are then able to grow again. Maybe the third one is taken by Dirk.

Maybe on the second question. Exactly. Hi, Conor. This is Dirk speaking. Let me comment on your second question regarding Magenta TV. So JOIN has been included on the platform mid-February. This is primarily an ABOT deal, which means people who are Magenta TV subscribers have free access to JOIN's content, which belongs to Proceeding Set 1, which also means that the revenues related to this deal will primarily become visible in the Detergent Smart ad revenue line. So this is really about increasing the reach of our digital platforms and will therefore increase also the ad revenues we are generating on that basis. However, there is also currently some tailwind for the distribution business which you might have also seen in the first quarter, an increase of 9%. This, however, is more related to the elimination of the so-called ancillary cost privilege here in July. which leads to the fact that many cable households now have to look for an alternative for their previous cable subscription, which was included in the rent. So households which now reach out to their cable operator or IPTV provider, they often sign up to a somewhat more expensive product, which also often includes HD or catch up and things like that, which leads to incremental distribution revenues also for us. And what is also interesting, The fact that JOIN offers a large number of free live TV channels is actually also a free alternative for some of the SVOD or subscription-based products, i.e. even if people will not sign up only for that reason, it's an opportunity for many households to continue to watch linear TV without signing up for any other service.

The second effect is permanent and then the first, the boost to AWOD was a factor for half the first quarter, so in theory it should be even more of a boost.

No, I think I would not expect here already a meaningful contribution from a join in the first quarter only because of the Magenta TV deal, but I think an increasing awareness, so the more Magenta TV users know that they have now joined us on the platform and that all of our content can be accessed. This will, over time, then increase the usage also on Magenta TV. I would not say that a significant share of the revenue growth in Q1 was driven by this particular contract. Okay, understood.

Many thanks.

Again, press star 1 to ask a question. We'll take our next question. Nizla Nizer from Deutsche Bank. Your line is open. Please go ahead.

Great. Thank you. I have two questions. The first one is on Flaconi. Impressive growth in Q1. Could you give us some color on how you expect the growth trajectory to evolve over the rest of the year? And has Flaconi reached profitability? Could you give us some color on what the margin profile is like in the business? That would be great. Secondly, would you give us some color on how you view the recently concluded AGM and the final decisions? It would be really interesting to hear your perspective on the final outcomes and I guess the future of the business. Thank you.

Thanks for your question. Your first question with respect to Flaconia, I think from a growth perspective, we really anticipate that we have probably the same momentum as in 2023 on an entire year perspective, so growing hopefully in the same range as last year. And from a profitability perspective, last year we were already on adjusted EBITDA level positive, and this trend hopefully will also continue and that we are having also the improving cost measurements, which then also increasing the margin. But to give you numbers, I think this is a little bit too early to reflect on this, but I think we are really, really happy about the revenue growth perspective. And from my point of view, especially in this online and beauty segment, the revenue growth is still the most important part for the business and last year. We've already shown that we are able to run this business profitable, and if we are able to show this this year again, I think then everything is really on a green light for an excellent performance of Flaconi. Your second question regarding the AGM, I'm not quite sure what you mean with the final outcome. I think there are different topics in the AGM, and probably you're relating to the most relevant counter-proposals or proposals by MFE. So you know that the AGM decided not to go for the preparation of the spinoff, We clearly said that we, from a company perspective, thinking that this is not in the interest of all shareholders. And if you do the math, MFE have slightly below 30% shares. PPF is close to 15%, so in total 45%. But we still have remaining 55% outstanding shareholders. And we as a company thinking that we have to keep all interests of all shareholders in mind. And we are clearly of the opinion that the way to make the disposals within ProSieben.1 is a better way to reduce our financial debt and also the financial leverage ratio. And therefore, we are thinking that we have the backing of the majority of the shareholders and also MFE clearly said that the disposal is still a way they can think about even if they like to see the preparation of a spinoff if the disposals are not taking in this year or next year. So therefore, we are happy about the outcome on the spinoff. And with respect to the new members of the supervisory board, I think this is clearly a way where we are absolutely supportive to work in a really close relationship with the new members of the supervisory board. We had also our first supervisory board meeting, and therefore we hope that they can contribute to us. It is clear that the administration made a different proposal, but the AGM clearly said that they'd like to have the new members on board. And we are absolutely supportive to it, and we are looking forward to work together with them in a close manner because we have a lot of things to do in this year with respect to the strategic view of bringing JOIN and our TV channels back on track and also with respect to the disposits. So, therefore, we are really looking forward to it, and, therefore, it was – Not what we wished before the AGM, but now we are really looking forward and are happy that we are now able to fulfill our strategy.

Great. Thanks. That's very helpful, Martin.

Once again, if you would like to ask a question, please press star 1. There are no further questions at this time. Mr. Dirk Budlander, I will turn the call over to you for any additional or crossing questions.

Thank you, operator, and thank you, ladies and gentlemen, for participating in today's call. As always, my colleagues in the investor relations team and myself will be available for follow-up questions shortly. Thank you very much, and goodbye.

This concludes today's call. Thank you for your participation. You may now disconnect.