2/13/2025

speaker
Conference Operator
Operator

Welcome to the Alamak Group Q4 2024 report presentation. For the first part of the conference call, participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing pound five on their telephone keypad. Now I will hand the conference over to the speaker's CEO, Ole Christian Jodahl, and CFO Sylvain Grange. Please go ahead.

speaker
Ole Christian Jodahl
CEO

Thank you and welcome all to this quarter four and full year call for 2024 then for Alemak Group. And with me, as always, I have Sylva, which will come back a little bit later. Turning page. Yeah, you know, you recognize these pages just to highlight again that we have some fundamental drivers for success in this group. We are supported by global trends. The group overall have a leading market position where we operate. we have a large installed base globally which also is a fundamental piece in our service business that we drive globally in all divisions and we have a strong also balance sheet cash conversion which makes this a solid group turning page you also recognize the new heights program and to the left here you see what we then launched in back in 2020 late 2020 the three-step program use the our mission the strategic house the basic and also the divisional structure which is then how we have been driven the group forward And also to the right, you see what I presented in the investor update we had just before Christmas in quarter four, that we're now working on what we call new heights 2.0. And that's defining more detailed divisional plans for accelerating profitable growth towards 2030, something that we will come back with later in the year. Turning page, also a slightly new page, but a summary of all the financial and sustainability targets and where we stand. And starting up left, you see on the revenue growth, 6 to 10%. We are below that during 2024. But if you look over the last year since we launched New Heights, we actually have a CAGR of 17.4%, consisting of, of course, both M&A, as you very well know, but also solid organic growth in the time period. EBITDA margin we delivered on our 14 to 16 one and a half year ago, two years ago, and now we are on the way to the above 18 and we are well on that way. Leverage we are well below within the frame. We have the board also proposed now again a solid dividend payout, which I will come back to, which means that we are in the frame also this year. On the sustainability side, we are doing what we should within the targets on CO2 reductions. We are on our way to reach our net promoter score, made another significant step in the year. We are also coming down on our injury rate towards our target and we are driving up our ESG assessments. Turning page and more dive into the quarter. We end 2024 with another strong quarter with strong order intake, profit and cash flow. We do a step up in profitability again for facade access, which I think is a very important piece. It's been the division which has been lagging behind, but I'm very happy to see that we continue to drive and in the quarter we have a very strong result for that division. cash flow of course important for us not at least after also the acquisitions we have made is very strong in the quarter and we take down our leverage to 179 from 212 in quarter three we have also signed an exclusive partnership in the quarter with skyline robotics a five-year deal where we will together focus on robotizing window cleaning on tall buildings long-term thinking that this will be done by people we do not believe. So it's a way of driving our technology leadership strategy. And then we are also making an organizational change now as we speak, where we get new leadership for HSPS and win the divisions. As you all know, when we acquired Traktel, Philip Gatineau, which was then the CEO of Traktel, He took on the job to lead both facade access to drive that transition into profitability and also to ensure a good transition of HSPS or the core business of Tractel into the group. And he has done a remarkable job, but long term, of course, each division should have its own EVP. So what's happening now is then the Philip will be 100% focused on facade access. Jose Maria, which has been the head of wind division, he will take on HSPS. He has done a remarkable job with wind. And now we can get his full attention to HSPS. And Rafael Pena, who has been the COO and been part of Avante since 2011, he will then step up and take the wind division. So internal moves, which I'm very happy with and proud that we are able to do. Turning page, full year again delivering on our new heights program. Revenue order intake has been flat in a challenging market, but we have stepped up margins solidly to this 17.2 versus the 16.2 last year. We are also having a good growth in, as I said, 17.4% CAGR since we launched the new heights back in late 2020, beginning 2021. All divisions have continued to take step forwards, facade access, I would say most notably the success in execution on the transformation program. Construction, we have managed well, I think, in a very challenging market, been relatively stable on order intake and sales, even though there are still some effects on results, but well managed in a challenging market. HSPS a relatively stable year also affected by the weaker construction market. Industrial very strong year again and wind also delivering a solid year overall and reinforcing its position in a very competitive market. um strong cash flow throughout the year and as you know the board of directors proposed a dividend of sec 3 up from 2.5 sec last year and this is a 20 increase year over year and we continue to invest and execute on our profitable growth strategy we have done significant investments during also the year which means that we enter 2025 with good speed Turning page, details of the quarter. Order intake was 1,837,000,000 SEK, up 8% and also 8% at fixed rates. Strong performance in construction and industrial, wide facade excess, HSPS and wind reported a somewhat lower order intake. Revenue was 1,817,000,000 SEK, down 1% or 2% at fixed rates. where we had positive contribution from facade access and industrial, while construction HSPS was slightly down and the flattish for wind. EBITA adjusted at 320 million SEK up from 288, giving us this margin of 17.6% in the quarter versus 15.7% last year. and driven by a strong performance in facade access and industrial and as you know also a weaker quarter for construction on the result side. Turning page, service. Service is a very important piece of the group, something that each division is driving. It's a key component for all of them. And happy to see that order intake again increased, and it was by 11%, 10% fixed rates, to 662 million SEK, up from 599. Revenue also increased by eight percent, seven percent fixed rates to 726 million SEK up from 675. And this is something that of course provides resilience but also lots of opportunities and something we continue to focus and strongly drive in all divisions. Turning page and diving into divisions, facade access delivered another good quarter with record margins. Order intake was 480 million SEK, down 6% or 7% at constant rates. But overall, I would say it's a good level because they also have a relatively high comparable to measure towards. North American market for especially BMUs continues to be soft while we saw good equipment orders in China, Hong Kong, Australia, Malaysia. And we also continue to drive infrastructure project and one a very nice one on the nuclear side in Europe. Revenue was 526 million SEK, up 4% or 3% in fixed rates, and the double-digit growth for service in the quarter. EBITDA was 82 million SEK, up from 30 last year, giving this margin of 15.7 versus 5.9, so very strong improvement. And it's driven by the activities that we have said, you know, pricing, improvement in project management, etc. But it was also boosted by the closure of several larger projects in the quarter. And when you have good control of them, that means that you also can release contingencies and you have a good end to projects. Something which is also now part of the news that was not the way it was before in the Alimak group. So something I'm very happy to see. Turning page and a little bit more of the update of facade access. As I said, we do this organizational change. So this means that Filip now will be 100% dedicated to facade access. And I'm sure that will also mean that we can drive the business development even faster and change agenda. We signed this partnership with Skyline Robotics and they have already a proven demo unit which has been tested and used in the US. And we are now working full speed together to really do what we can to optimize window cleaning globally. So that will be a very interesting project for us to drive forward together with Skyline Robotics. We also continue to drive the other change agendas, you know, like infrastructure projects. We have won some nice there, this nuclear project in France. We drive the retrofit, refurbishment and replacement on the aftermarket side. We have won some nice projects there and also the high rise building, especially in Asia, as I mentioned. Mammendorf closing is fully on track, so that's more or less done, but still there are some things that happens this year, but it's fully on track. And this new design services, you know, that we are entering and becoming also the consultant, the architect, helping the architects in the processes is where we then change the business model in the go-to-market. is fully developing and we have won some nice orders again on this and the pipeline is just increasing. So a fundamental change in also how we drive this business. Turning page construction, mixed quarter, very strong order intake, but the softer revenue and the weak results stemming from the weak order intake in Q3 and also an unfavorable mix of deliveries in the quarter. Order intake was 468 million SEK, up 47%, 46 at fixed rates. We saw solid new equipment orders in Middle East, North America and also Nordics now. And very strong on parts and services and also stable for rental orders in all countries where we do that. Revenue was 401 million SEK, down 9%, 10% at constant rates, and this is impacted by the lower order intake we saw in Q3. EBITDA at 44 million SEK, down from 76, giving this weak margin of 11.1 versus 17.2. And again, negatively affected by the lower revenue, but also the low deliveries of hoists and mass climbing work platforms. So that's the areas where we have the highest margins. But as you also know, we have been pushing hard on used machinery. So we have the strong sales of used, but that does not carry exactly the same margin. But long term for us, that's also very good business. And I should say that the order intake in Q4 was very solid on the new equipment side, and that was actually hoists and mass climbing work platforms. So that gives us a good speed now into Q1. Turning page. We continue to drive and as I've talked about, you know, the importance for us to really fundamentally put mass climbing work platforms into the market. So we have also invested more in business development in this side, but we are starting also to gain more orders. So that's nice to see. And as I also talked about, you know, some very nice hoist orders in the Middle East. Lots of projects happening there and service and parts all over the globe. It's also contributing to our business along also with the used part. So we are actually entering 2025 with good speed and the order intake mix will also mean that results will be back to normal in Q1. Turning page and HSPS. Soft quarter on order intake, revenue and results, but that's driven by a softer demand in the quarter. Order intake was 336 million SEK down 6% and also 6% in fixed rates and we saw both the soft distribution business across most geographies along with also elevator customers which is an important segment for us having some sort of a low point in their investment cycle. Revenue was 317 million SEK, down 9% or 10% at fixed rates. And again, here is more one-to-one in the book-to-bill, so it's affected by the lower order intake, but also some unfavorable facing of deliveries in the quarter. EBITDA at 56 million SEC down from 64, giving a margin of 17.5 versus the 18.3. Again, reflecting the lower revenue, but also resilient margins, I would say. Turning page, business update. Yeah, here, so say Maria then, who has been head of the wind business. will now from 1st of March take on HSPS. So very happy to see that. That will give full time attention to this division. We continue to drive the change agendas also here. We have had focus on certain verticals and these are providing increased sales and growth for us. So it's something that works well. And also, of course, we are driving new product launches. and yeah for the full range so we do what we can here but it's also about accelerating product development and go to market so we can fundamentally also get in a phase where we are growing this business faster Turning page into industrial. Again, I would say another very strong quarter. Order intake was 436 million SEK, up 14% or 13% in fixed rates. Strong growth in equipment, parts, services across most segments. APAC North America delivering the most significant growth in the quarter. Revenue was 422 million SEK, up 4%, 4% also in fixed rates. And yeah, significant deliveries to power infrastructure ports. EBITA, 108 million SEK, up from 95, giving a margin of 25.7 versus 23.4. And it's driven again by a good execution, higher revenue, and the project management. Turning page, we see and continue to see nice growth in multiple segments like ports, infrastructure, oil and gas, but also many more. And this is also the way we continue to work with this. You know, industrial has been that was part of the new heights to really create a separate organization for industrial and then segment by segment, also more and more digging into each segment. And this is what we really see paying off. that also leads to more product development, more targeted, you know, so this entry level lift that we talk about here, the SC240L is a light machine meant to compete with stairs and it's relevant for power segment, cement, food and agriculture, etc. So targeted product development based on more segment knowledge. And then they've also launched a nice replacement opportunity. It's an existing machine there, has been there out there for many, many years. And we are launching here a new machine that you can just swap into the master structure that is there. So it should be an easy, cost-effective, sustainable solution for our customers. Turning page, wind, stable quarter. Order intake was 132 million SEK, down 7% and also 7% at constant rates. But also remember, this is normally the lowest quarter in the year. So we feel it's okay. New equipment orders were strong in APAC. we continue to see soft market development in North America while also Europe was at the lower level due to some quality issues with one major OEM that we have some nice projects with but which is now then standing still but something which will come back Aftermarket contributed positively in all regions. Revenue was 166 million SEK flat to last year. Continued stable sales. And again, aftermarket contributing. And China is also continuing to deliver well for us. We have a good position there and an important market for our wind business. EBITDA at 29 million SEK up from 25. margin of 17.4 percent up from the 14.9 and it's driven by continued process optimization and good work in the division. Turning page here, also then a consequence of all the changes that Rafael Pena, who has been then the COO in Wind Division and has been part of Avanti since 2011. He will now take on the role as EVP, so very happy to welcome him on board in the leadership team. And else we continue here to do what we are good at, develop our technology leadership. We have developed and launched a very nice rack and pinion machine here together with the customer. We are working on free climbing devices, etc. um and the aftermarket continue also to give us a good momentum of course the market is more uncertain with the trump administration and in u.s he has halted wind investments And then also the customer duties might affect us somewhat there since we actually manufacture our ladders for the US wind market in US, but where we import aluminium. uh so time will tell how this will be but we see good the development in the rest of the world so we are not really afraid of of this business but it it is some turbulence in in us now as you all know and with that we are into profit and loss and i hand over to sylvan thank you very much good morning everybody

speaker
Sylvain Grange
CFO

Once again, we are pleased to report an adjusted EBITDA growing more than revenue. It's an 11% growth versus a flat revenue. And I will come back to the drivers behind on the next slide. Items affecting comparability relate to the closure of the Mammendorf facility in Germany. As Ulle said, we are well on track in that project. We believe all costs have hit P&L by the end of 2024. We will leave the site later this year and we expect to sell the site by the end of this year as well. Below EBITDA, quarterly amortization is in line with our expectations. And I said in the previous quarter that some intangible assets related to the Tractel acquisition would be fully amortized by the end of 2024. That means we expect, looking forward, an amortization charge to be closer to 40 million SEC in the coming quarters. Finance net in the quarter is significantly down due to the reduced debt and some one-off items as well, in particular foreign exchange impacts. Looking forward, we expect this charge to be closer to 40 million SEC in the coming quarters. Taxation rate in the quarter is higher than in the Q4 2023, but Q4 2023 was exceptionally low. And this rate for the quarter is still below our recurring expectation, which is closer to 25%. So a higher adjusted EBITDA, lower ASE, lower finance net leads to a very strong increase in the net result, plus 60% in the quarter versus Q4 2023. The full year picture is less spectacular but still very positive with a 6% increase in adjusted EBITDA and a significant decrease in the finance net, again mostly due to lower debt and some lower interest rates as well, leading to an increase in the net result for the full year of 21%. Moving now to gross margin and operating expenses. So the gross margin was actually down in the quarter versus Q4 last year. And the GM evolution was not uniform in the quarter. We had a very good improvement in the Facile Access Division. The industrial margin increased as well, driven by higher revenue, strong project management and execution. On the other hand, as mentioned by Ulleh, we had a lower gross margin for the construction division, and that's driven by the lower volumes and an unfavorable product mix. The full year growth margin, though, is still 40 basis pounds above the 2023 margin, and the most significant contributor to the improvement this year is the Facade Access Division. But Industrial and Wind improved as well, whilst Construction and HSPS were slightly down in the year due to lower volumes. As a percentage of revenue operating expenses were done in the quarter, and even if one excludes the impact of ASE, and despite the cost inflation, typically labor. This is in particular due to the Facade Access and Construction Division, which have made some footprint optimization, which is starting to pay off. And those savings are partially compensated by some specific additional expenses, such as sales in the industrial division or product development in construction and HSPS. And we see those expenses, as mentioned earlier, as an investment for the future. Moving on to the results for the periods, it was 194 million SEC in Q4 2024 versus 121 in Q4 2023. As I said earlier, it's a 60% increase. Excluding ISEs, the result for the period was 200 million SEC. versus 151 in Q4 2023. It's a 32% increase. EPS was 1.83 sec versus 1.13. Adjusted for ISE and acquisition related amortization, EPS was 2.21 sec versus 1.72 in Q4 2023. Moving now to operating cash flows and Q4 was definitely a very good quarter as far as the cash flows are concerned. In fact, this is the best quarter ever we have had in the group. As I said in the Q3 presentation that we had made some temporary working capital increases in the construction division, which we are expecting to see reversed in Q4, and that did happen. But beyond the construction division, all divisions performed very well in the quarter. In fact, we reduce working capital by 200 million SEC in Q4 2024 and 100 million SEC in the full year. So that's very pleasing and a sign of how much we focus on cash flow generation. Looking forward, we ensure we can repeat this strong decrease in working capital every year. So we would expect working capital to be overall stable as a percentage of revenue. Regarding CAPEX, I said at the Q3 presentation that we would have some catch-up in Q4. This did happen. We ended the year with a CAPEX as a percentage of revenue around 1.8%, slightly below our expectation of 2%. But that's definitely a sign that we will continue operating a CAPEX-like business model. regarding the net debt we had a significant increase in the quarter down to 2.6 billion sec and that's mostly driven by operating cash flows leverage at the end of the quarter was 1.79 down from 2.12 at the end of q3 2024 as that's of course well in line with our policy or our target of being below 2.5 And as I said earlier, we will continue to focus on operating cash flows. Our capital allocation priorities remain unchanged. We will invest in organic growth. I refer to some expenses in sales and R&D. We continue to actively work on acquisition opportunities allowed by the decreasing leverage. And we are committed to delivering on our dividend policy. Also, ultimately, this is a board proposal and an AGM decision. One final word on ROSI, which is a key metric for us. We are glad to see that ROSI is increasing in the quarter. We are now close to 10% ROSI overall and 24% ROSI excluding Goodwill. And that is a reflection of an increasing EBIT and a lower working capital. And it will continue to be very important for us in the future. On that note, I hand over to Ole who will be making some concluding remarks.

speaker
Ole Christian Jodahl
CEO

Thank you, Sylva. And then we are at the summary slide. So, yeah, I would say we have created a sustainable, resilient, highly profitable and growing industrial company now. And this is coming from the new height strategy that we launched now soon five years ago and the good execution of that all the way through. So that also means we are continuing to deliver on our financial and sustainability targets as we have done. We have a strong cash flow generation and done a significant deleveraging after the acquisitions we made. And we have also been able to constantly push up margins in a very challenging market for the group. while at the same time also continue to invest in all parts of the business. So it's not done to starve ourselves but we have still been heavily investing. So the new high strategy continues to serve us very well and the key things of that has been this customer obsession focusing on the customers that is paying for everything we do technology leadership operational efficiency and recognizing our people being the most important asset we have established and we can see now we have an effective well structured decentralized organization with a strong culture which means we have an effective engine creating value every day The announced custom duties by the US administration will, of course, as we are a global company, affect the group to some extent. But we can't really see that it will have any material effect. But it means that we are on our toes and we follow this closely and we will take actions as needed, as we have done. It's nothing really special around this, but it's also something that of course we follow closely and we act upon when needed. The focus now for 2025 is organic growth. We believe that we will deliver on that. We focus on acquisitions and we also believe that that will be something we can now do in 2025. And of course, also, as we have been talking about, further margin improvements. So this means in short, you know, that we have focus on delivering our commitment to the market on our financial and sustainability targets. And also we are entering 2025 with good speed. So with that, I would say thank you to all our employees, customers and partners for providing us another great year. And with that, we turn page and move to the Q&A.

speaker
Conference Operator
Operator

If you wish to ask a question, please dial pound key five 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 Anna Widstrom from Carnegie. Please go ahead.

speaker
Anna Widstrom
Analyst, Carnegie

Hello, Ola. Hello, Sylvain. My first question is, given the current inflation levels and the initiated speculations on tariffs, have you made any price increases into 2025 and do you maybe intend to do additional ones during the year?

speaker
Ole Christian Jodahl
CEO

Yes, we are making price increases targeted, you know, where we see that that's the right thing to do. So we have done that. And of course, you know, if needed, we will do more. And we have no intention on sitting with the tariffs ourselves. So that, you know, of course, we will do what's needed to ensure that we are pushing forward what should be pushed forward but also to you know do what we can internally in the group to also offset what's possible to offset but absolutely price increasing price increases is an important part of how we manage okay perfect right here could we maybe get some details if there are any

speaker
Anna Widstrom
Analyst, Carnegie

maybe regions or divisions that would be more focused on price increases or if it's very general across the whole group?

speaker
Ole Christian Jodahl
CEO

I would say that's general, you know, it's a very important piece in all parts of our business. So they will all, you know, we are doing price increases wherever we feel it's appropriate, you know, in all parts and that we will continue to do. If the question is more on maybe on the tariff side, we don't produce a lot in US. It's really wind that have some manufacturing in US where we import steel. um which you know would be affected short term if that would happen you know but we also have alternatives it's also possible to source steel domestically or sorry aluminium domestically if needed for that piece for the rest towards us you know we are in the same situation as also most of our competitors you know so we don't really have domestic competitors that can sit and enjoy no tariffs so they will all we will all be in the same boat so overall we don't see a big risk but still it will be turbulent you know if if this environment continues and things will be implemented okay great and my second question is on how we should think about the facade access margin development

speaker
Anna Widstrom
Analyst, Carnegie

the near term, given that there were some finalized projects in Q4.

speaker
Ole Christian Jodahl
CEO

Yeah, the margin in the quarter is somewhat boosted by the effects of several significant projects that have been closed. I've been talking about this at several locations, you know, when you close projects and you manage them properly, like the former Tractel organization now is, you know, putting procedures in place in this group like they have done before themselves. That would mean that you have contingencies normally to release when you close projects. So the more projects you close and the bigger they are, the more you can actually get positive effects in that quarter. But that doesn't mean you do that to the same scale every quarter or every month. So this margin level that we saw here was somewhat absolutely boosted in the quarter. So don't expect that to be the new level or the floor, but that we continue to drive our profit improvement journey. And that's what you should continue to see in this business. Absolutely.

speaker
Anna Widstrom
Analyst, Carnegie

Okay, perfect. And then just a final one, as I think the balance sheet is looking quite well on you. you mentioned M&A is one of the focus areas for 2025. If you could maybe give us some details on your sense of the current M&A market and maybe if you already have located some focus areas.

speaker
Ole Christian Jodahl
CEO

Yeah but I think the market is relatively okay. We have been working as I've also said for quite a while on the funnel you know so I feel we have a good funnel And we absolutely have things that we can hopefully execute on in the year. That's what we plan. So our target is from now on that we should also do some acquisitions every year. I hope and I plan for and we plan for that 2025 is a year where we will start to see this. Focus is, as I've also said several times, it's many areas, you know, it's service, it's products, it can be technology. It can be a geographical presence, you know, so it's multiple areas also in that sense. But we also have different businesses in all five divisions, you know, so that also opens up different opportunities. So, yeah, but it's an important piece, of course, where I expect to see something happening during the year.

speaker
Anna Widstrom
Analyst, Carnegie

Okay, thank you. That was all for me.

speaker
Ole Christian Jodahl
CEO

Thank you.

speaker
Conference Operator
Operator

As a reminder, if you wish to ask a question, please dial pound key 5 on your telephone keypad. There are no more phone questions at this time, so I hand the conference back to the speakers for written questions and closing comments.

speaker
Ole Christian Jodahl
CEO

Yep. Thank you. We have a couple of written questions here. So one question is, it seems, I read the question, it seems like the investments compared to depreciation, amortization is pretty low. Should we expect investment going up more towards that number in the coming years? Some thoughts on CapEx, OpEx would be appreciated. So maybe Sylvain, you want to?

speaker
Sylvain Grange
CFO

yes i think it's uh i partially addressed the question in in the presentation uh although we had some catch-up in q4 we had a slightly low capex in 2024 you know we expect uh capex as a percentage of revenue to be you know at two percent two percent plus versus 1.8 in 2024 so uh but but we don't expect a significant increase in in capex you know as i said we are still a capex light business model when it comes to amortization this is related to the intangible assets which come with acquisitions and there of course it will be a factor of any acquisition we may make in the future yeah okay good and then we have a last question here which reads the following

speaker
Ole Christian Jodahl
CEO

Focusing on organic growth in 2025, what segments do you see is the most likely you will see organic growth in? And what is the reason behind this? I would say in general, we expect, I would say in general, organic growth in all. Industrial should continue to show organic growth. We also do believe that we will see it in wind. It's some fundamental basics there. We have the uncertainty about US, but the rest of the world, it seems to continue to develop. For the things that are affected by the construction market, we have said it's still a challenging market entering 2025, but we have good speed actually also in several of these areas and we are driving change, you know, like infrastructure focus in facade access. And the fact that this construction market has been quite depressed for a long time, interest rates start to come down even though it's more uncertain long term again what will happen. We do believe that there is some fundamental things that should start to happen in that market towards the latter part of the year. So we should also be able to see some market support. But the main thing is what we do and what we have continued to do throughout the whole New Heights and also during 2024. We invest in our resources. We have more feeds on the ground closer to customers. We have developed new products. We continue to do that. We drive R&D, we drive partnerships. So we also expect to both take market share But also to open up new opportunities for us, which hasn't been there, you know, so there are multifaceted thing which leads to that we take ownership for our situation and we focus on delivering growth this year. Then we have another question just popped up. Adjusting the adjusted EBITDA margin in construction. Adjusting the adjusted EBITDA margin in construction to a normal margin, the group delivered an adjusted EBITDA margin above target of 18%. Do you still stand with your target of 18% or should we expect margin above that going forward? I think the answer is very clear from my side. If you look into again you know what we did when we launched the new heights program back in late 2020 we made financial targets which was relatively uh you know close in time that we said we will focus on this you know and we will deliver this and that we actually did the margin target the group had never done 14 to 60 percent we did that after two three years Then we said within two to three years, we should be north of 18%. And now that's our focus and we feel comfortable that we have speed. And also, as you alluded to here, the group is on its way to make that target. We have not announced new targets after that, but it's something we need to talk about and we will look at when we reach these targets. But we make them relatively close at hand so we can all focus on delivering upon them. And then time will tell what we will do after there. Okay, that was the last question on the screen here. So with that, I would like to say thank you again to everyone in the group helping delivering these great results and also all of you listening in and till next time. Thank you.

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