Beijer Ref AB (publ)

Welcome to our Q2, and thanks for calling in. So we will move over to the next slide. So VARF, in brief. I think there's no news here, really. We continue to grow, as you can see. We're now in 45 markets around the globe, which I'll come back to a little bit later on, because it's giving us quite a nice balanced view on the world, being in so many different places going forward. So moving into the next slide, highlights for Q2. I would say a very good quarter there in almost all categories. We're coming back to a nice organic growth after three quarters on the negative side and also related to, as we said, the energy situation in Europe a couple of years ago. So I would say come in as expected. Acquisition continues to drive very good value for us and they continue to develop well. Continue to have a good pipeline there. So very nice development for us. You put that all together and our sales grew 12% in the quarter. which we're very happy with. Then on the side, on the margin side, continues to be strong. Record margins in the quarter and record margins ever for BRF. And you can see the trend there looks very good. And it's stable across both EMEA and the U.S. I'll come back to. And then a very nice trajectory in APAC that we have. work a lot with to develop the margins. Cash flow positive in the quarter as we committed to. We continue to balance our inventory. We are usually not a positive cash flow Q2 as it usually is released in Q3, Q4. But we'll continue to have this trend throughout the year as we normalize our inventory levels. We did close the acquisition of Young Supply in the US. We'll come back a little bit to that. And then we have an acquisition pending on the leading HVAC distributor in Hungary that needs to go through the competition authorities. We'll come back to that a little bit later as well. Next slide. Here you can see the product groups. We turned positive on the HVAC side. It's becoming with more normal comp there. OEM continues to be strong, especially in the MAEA segment. We'll come back to a couple of key orders that we achieved during the quarter that were extremely positive for us. Then the commercial industrial refrigeration is stable in the quarter. Worth mentioning here is that our focus on the the Sinclair Inventor continues to do very well and continue to outpace the rest of the growth. Next slide. To go in a little bit more in detail, so on the MAAT side, a fairly stable development during the quarter with very good growth in our very focused OEM segment where we are transitioning into the green refrigerants that we expect to continue to do very well in the future as well. Mentioning that segment is that we did take two, we would say, key orders. One, we took our first order in the U.S. of CO2 transcritical systems, and there is a lot of things happening in the pipeline for our solutions in the U.S., and it's also a nice collaboration between Our platform in the US and SDM Frigo, they will continue to develop air over the years. So it looks very interesting for us to continue the journey that we've done in EU, Australia, New Zealand, now into the US. So very nice to secure these first orders. And then I think also worth mentioning our company, Fenergy, who does both cooling and heating solution based on natural refrigerant, but more bigger solution. They did win a first breakthrough order the data center where you connect the data center with the district heating. So you do both the cooling and the heating in our system. So very nice reference order for us and looks interesting for the future. So happy with EMEA development. I think the only thing about EMEA is that it's been a fantastic weather in our key countries, France, UK, the Netherlands, and I suppose the market has been a little bit slower. to see if it picks up here in K2. But instead of talking about very good development in Eastern Europe and further down South in Europe as the weather has been very strong. And that's where I come back to a little bit that the breadth of the number of countries we have in our portfolio balances out much more of the business and can still produce a growing business in EMEA despite not having a great start to the summer. Then moving into APAC. APAC continues to grow. Of course, been very active on the acquisition side. Good growth in all of our segments. And I think worth mentioning is the continued improvement of the margins. As you know, in APAC, a lot of acquisition we do at a lower margin, and then we, through our synergies, develop that and we'll continue to do that going forward. happy to see the trajectory there's a lot of activities both on purchasing but also on the private label side of the business i think worth mentioning is that in a country like australia where more and more of the business is banning gas we see more solutions moving over over to the ducted and heat pump solution uh more parts and bigger orders for us so it's the beginning of a of a trend and I expect to see more and more that has moved through the next couple of years. So very happy with the development impact here in the second quarter. Next slide. Moving into the US. Fantastic growth of 34%. I mean part of that journey that we started on with the US about a year and a half ago with a fantastic platform and heritage that continues to developed very well. Plus the opportunity to add on acquisition the latest young supply. Nice strategic fit on the refrigeration side. Already a lot of activities on expanding refrigeration in the rest of the platform. Good activity level in the U.S. Nice, you know, they will have the opposite of the weather in some countries here with good weather in our key states. So very happy with the U.S. continued development, good margin development as well. Opened a branch here in Q2, we'll open a couple more in Q3, also launching our private table. So a lot of activities in the U.S. and the platform is developing very, very well for us. So happy with the development in the U.S. as well. Moving on to the next slide. So in summary, 12% sales growth, organic growth of 2% and UBTA growth of 13% and EPS increased by 2%. You'll come back to more detail on that. Next slide. Here you can see a little bit more of the breakdown on the organic M&A and FX growth. And moving on to the next slide, we see the sales development continue to have nice growth. And here you can see also, of course, that we trended over to organic growth again, as we expected, and good acquisition growth as well. And that position looks good for the rest of the year and into next year as well. So I would say a very good development. And moving over to the next slide. Here you can see the quarter rate development on EBITDA, 13%, and also, of course, the margin that's been very strong and continues to be in a nice trajectory for us, as we said before, near to date. EBITDA growth of 10%, slightly improved in margin. So in total, there is a very stable development. for BRF and in line with our expectations. And then moving over to the next slide where you can see the margin development over the last couple of years, and you can see the trend here. Of course, our Q2 is our strongest margin quarter in general, and you can see that being in line a little bit better than last year, that was a record year as well. So the seasonality plays into the margin as we sell more When it's hot, and of course, moving into the US, they will have the same type of seasonality as we have in Europe as well. So a very good trajectory and a good development on the margin side that we're very, very happy with. So with that slide, I'll turn it over to Joel, and he goes into a little bit more details on the financial.

All right, thank you very much, Christopher, and good morning, everyone. I will jump straight into our reported EBIT, which is just shy of 1.1 billion SEK, up 13% compared to last year. Below EBIT, I'd say it's a pretty clean quarter in line with expectations, with a net financial expenses of 139 million and a tax expense of 230 million, which is representing an effective tax rate of 24%, all in all resulting in a net profit of 728 million, which is up 2% compared to last year. Just coming back to the increase in net financial expenses compared to last year, it's driven by increased debt and higher interest rates, approximately expanding 50-50 each. There were some more positive FX effects last year as well compared to this year in the financial net. So moving over to next slide, just short on the EPS, as already mentioned, it's up 2% in the quarter and adjusted for the same number of shares. The year to date number is down 4% so far. Moving over to our cash flow, Q2 operational cash flow of 354 million, as Christopher said, despite the negative seasonal effects from networking capital. It's mitigated by a continued controlled build-up of inventory. Build-up of networking capital in the quarter, the 728 million, is primarily driven by AR Of course, for the higher sales in the quarter. Overall, cash flow is 550 million better than last year, driven by improved EBITDA and less networking capital tied up compared to last year. If we look at the year-to-date numbers, cash flow of 936 million, which is 1.3 billion ahead of last year, on approximately 1.2 billion lower additional working capital tied up than compared to last year again. And worth mentioning here as well, our reported inventory is more or less on the same level as last year, but adjusting for the acquisitions we have made and also FX fluctuations. The underlying inventory is down approximately 700 million compared to a year ago. Next slide. Net debt development. Net debt increased by 1.7 billion compared to Q1, driven by our acquisition-related activities, primarily on young supply. On that, net debt in the quarter adjusted for leasing and pension increased to 2.06, up 0.4 turns compared to Q1, and just below same quarter last year. And with that, I'll hand over back to Christopher for a summary.

Thanks, Joel. I think a great summary is a very strong quarter, no surprises, good development across our different regions, APEC, EMEA, and then the U.S., of course, very happy with the U.S. development. As we can see, the platform is developing as we want it to, and a lot of opportunities and activities in the U.S. It's going to happen in the future as well, but the foundation is very strong. So happy to report a good margins across the board record levels, which shows the work we're doing is very appreciated both by customer and our initiative is increasing, improving margins. We continue to work with our inventory to normalize that by the end of the year. So we're in the journey. of that and it's going according to our plan. So everything there is under control. Acquisition that we've done has been fantastic on the arms supply, very strategic for us. We also look forward on the call for you as we go through that process. And then the pipeline continues to look positive for us. And also based on an expected good cash flow generation here through Q3 and Q4. to give us good firepower in that process as well. So a good summary with a record quarter from Bayref and turning back into organic growth that we're very happy to do as well. And long-term, I would say not a lot of big changes. Everything is moving forward on the sustainability, electrification, regulation. You have the FCAS that's accelerating in the EU. We have the HVAC, as you know, becoming more and more active on the health floor for next year. I think added here, of course, we're very happy on the first CO2 orders in the U.S. and also an affinity order for the data center that we look forward to being more active in over the next coming years. We talked about the U.S. platform and our initiatives are going well. The pipeline looks very good. So all in all, a nice order to finish off the first half of the year. With that, we'll open up for questions.

The next question comes from Gustav Schwen from Handelsbanken. Please go ahead.

Good morning, Gustav from Handelsbanken. Two questions. APEC margin here. Big jump here over the year, 200 bps. Clearly better than what I had expected. I mean, you've obviously been discussing the potential here over time. I appreciate the comments and the report. Can you elaborate a bit on the initiative for pricing you're talking about? What exactly does that mean? How much of an impact from that have we seen already? When do you think we get the full impact from all the margin initiatives? And also, is it reasonable to say APAC sort of being a double-digit morning business, rolling 12 within, I don't know, next year? Sorry, many questions in one. I'll take that one first.

Thank you. Yeah, so... I mean, of course, we see these trends in our internal initiatives and all the different product groups we have. What distorts the margin, of course, a little bit in APAC is that we've been very active on the acquisition side, and most of those acquisitions are diluted on the margins. It's always hard to... to look at the external margin while we see the internal development plus the acquisition. So you add some acquisition that we had very good synergies and work with that was diluting the margin in the beginning. So you see the impact of that coming through now. But I think in general our ambition, as we said on APEC, is to underlying it up to the 10% EBITDA. I won't give you a timeline on that, but of course we expect as ambition to to start seeing that as we're coming to 2025. Let's see if it's a full year effect or it's step by step per quarter, but we're moving in the right direction and the initiative we have should continue to support that. But it's not probably a straight line. It's still step by step, but what we see right now is very promising, as you can see in the reported numbers, of course.

Cool. Then just secondly, on the data center you mentioned, Can you say anything more about it? Or the value perhaps addressable market as you see it? Anything really. Thank you.

Yeah, it's 30 days, right? So we won't go into size and where and what it is. It'll be more official as we move into the Q3. But it's the biggest order that we ever received. So it's a big one. And it's more a different type of solution, right? Where you are... Instead of building, I guess, all data centers up north where it's extremely cold. And this is where you connect with the district heating so you can manage, leverage both the heating you get, you can release back into the district heating system and that way around on the cooling side. So it is a breakthrough. order for that type of technology extreme and based on green technology. So it's a green refrigerants in this type of systems. So of course, when you get the first reference order, like this will be very interesting to see how it moves forward. But there's quite some more of these type of project in the pipeline. I can't disclose it yet. I'll give you some more details as this becomes officials in Q3.

okay thank you thank you the next question comes from carl ragnarstam from nordia please go ahead uh good morning it's carl here from nordia a couple of questions from my side as well uh firstly on the us it looks like you grew a few percentage organically in the quarter could you help understand this whether this is pricing driven or if you also saw volume uplifts in the US and also secondly could you also give any comments I mean whether the quite high cooling degree days during the quarter gave any effect on the underlying volumes in the quarter whether it might come with the lag effect instead?

Yeah, I'll start on the cooling days. I'll give you a high level answer as it's still a combination with art and science, of course, in that process. But yeah, we saw a nice volume uptake in the business in the US in the quarter. The price is positive in the US, but it's not any big numbers. It's very low single I would say in the market, but stable market. We saw activities pick up well and then of course you have the weather and how much is the weather and then underlying business is of course hard to judge, but it's been very hot and I would assume our customer, the installer is extremely busy at the time, so you would expect a lag in that as well. Let's see how it develops going forward, but it's been a solid quarter for us. And of course, also very happy that the margins are holding up very well and the synergies with our acquired businesses is looking promising as well. So on the weather side, let's see how it continues to develop. It's still early days, but for us, the US was a positive business here in Q2, which was very good for us.

Okay, that's great here. And continuing on pricing in the US, you said low single digits. A lot of the OEMs are starting to push out the new products, right, under the ATL regulation here, maybe Q3, Q4. How do you expect the phase in slash phase out of the new product in second half? And have you received price indications so far? What do you expect? the prices to be of the new products from your main supplier?

Yeah, so we are right now in the discussion with our main supplier on putting our first orders for the A2L type of product. So we haven't started ordering it yet. So we're working through that together with our partners on what and how much and also balancing the inventory and the portfolio for the current solutions. uh because of course after uh end of this year they you know i would say probably q4 already they won't be manufacturing uh that type of product anymore so it's it's an active discussion uh i i can't disclose to the price increases that we are getting uh so i think it's more that the market assumption is somewhere i think between 10 and 15 rate and 15 percent uh and of course what we're what we're doing is is on our side working with our partners so but I still see this as starting to transition in 2025 and don't expect any major impact in 2024.

Okay so it's I mean it might be even zero to ten fifteen percent of the products sold in U.S. in second half that might be of the new products or is it in that range?

I don't know, Carl. I think the general assumption for us is yes, we'll start selling it, but the main impact you'll start to see is when you move into season next year, which is Q2, Q3, right? Before that, I don't see a major impact on our numbers from it.

Okay, that is very clear. And also in Europe, coming back a bit to the weather effect, as you also mentioned, quite unfavorable in Europe. main markets during the quarter. I mean, seemingly improving a bit in June, July. Did you see any correlation in your volumes with the weather in Europe? Obviously developed quite well anyway, but is it hampering the volumes or did it hamper the volumes during the quarter? And could you also see a pickup now that it's improving a bit? Once again, I guess it's speculations, but any flavor would be helpful.

yeah i think what we're seeing is of course you have an effect if you have these heat waves and very old weather and what we've seen the highest activities has been eastern europe greece and southern you know italy and southern parts of spain where it's been very hot uh so that's been uh a good development then you have you know big countries for us like france uk holland and etc it's been rain i think june was the rainiest month so I don't know, somebody told me 100 years, but I want to try and avoid to be a weather expert in this job. And that's where I came back a little bit to, you know, the breadth of our presence makes us feel less gives our portfolio more balance. Some are up, some are down. But of course, we would look forward to see our big markets picking up again. And I think it's right now too early to tell. We're in July and let's see how it develops. But I don't see any big changes right now compared to how we've been trending in Q2.

Okay, very clear. And also on the new stores you're launching in or branches you're launching in the US. When you launch a new branch, I mean, firstly, how many have you launched and also in what regions you're trying to fill the white spots. And secondly, when you open a new store, is it typically small ones, less than 100 million second sales or also targeting launching new stores, which could be mid to large sized as well?

yeah i think it's uh you know short term you don't you don't get an impact of it but we usually have uh the ones we we open now is in is in tennessee with that supply we have one more they're coming out this quarter and one more in the new uh young supply uh but it takes uh you know you need usually we don't disclose and we do this all the time in a may on a pack and it's nothing we talk about but in the u.s of course a lot of interest in a new platform uh where we will expand you know probably three to five branches per year for the for the coming years so but you you'll start seeing it coming in in the numbers as you move into usually year two and three of the branches so you step by step build it up so I'm in the beginning it's diluted and then it's an investment that you can grow the business so but of course these branches you know depending on location could be sales anywhere from you know 10 to 15 million dollars per branch okay thank you so much thank you

The next question comes from Adela Dashian from Jefferies. Please go ahead.

Good morning. A follow-up question on the margin. I know that you are continuously investing into the business, especially in the US. So the potential for margins to have been higher in a quarter were probably large. Could you give us your view on the cost base as you're moving into the second half of the year? Would you say that the elevated costs are still very much so present? Is it coming down? Is it being re-accelerated? And what kind of impact should we expect that to have if we say volumes are even higher in the second half versus what it was last year?

Yeah, I think what we're looking at is continue to have stable margins throughout the year compared to last year. I mean, it's been a strong development, but we do have acquisitions that we're working with and new coming in as well going forward. So, I mean, that's our base scenario is a stable margin despite the investments we're doing going forward as well. No significant changes we would expect on the margin side.

Maybe I can ask then on next year, do you still need to make these investments or will you feel more or less fulfilled?

No, we'll continue to invest in the growth. I mean, we have the whole private label initiatives we're driving now in the US. We have the e-commerce development that we're going to do, but our job is always to be able to improve the business through synergies and acquisitions and also the other initiatives that we can do these types of investments to drive the growth long term. So we expect that to continue to move into 2025 as well, but should have a positive impact on the growth side, of course.

Makes sense. And then just following up on the data center order that you received, I understand that you don't want to comment specifically on the order size and so, but could you say anything about where, is it a European order? I would assume then, because Senegas is mostly Europe. And is it from a hyperscaler or a co-locator operator?

Yeah, I can give you one information. It is in Europe. If I let Senergy go in the US, we'll be... We need to take it step by step, even if it's growing very fast. It's in Europe, and it is with... I don't know the definition, but it's a big contractor in order and a massive size. But again, I think I'm mentioning because we've been working on this type of solution for quite some time. And of course, it's also always a challenge with new technology that you need to prove yourself to get into these types of segments. And it's a natural refrigerant, and it's both the cooling and heating with district heating. So it's a very, I would say, impressive solution. But we'll give you some more input when it becomes you know, official in Q3 on the details of it, and then we can discuss it a little bit further.

Makes sense. Another question then on the acquisitions. I would assume that most of the pipeline is still in the U.S. What's your view on that going forward? Should we still see, you know, on average one or maybe two acquisitions per quarter going forward? Or yeah, what's your view on that?

Yeah, it's hard to make that kind of statement, right? It always moves a little bit erratically, even if we do have a pipeline that would support that type of statement. And it's not, to be clear, what I said before, it will not only be the US. So we still have a good pipeline across the globe. So we're still focusing on that. and we would expect to be active here in the second half of the year as well.

Still bolt-ons or are you also considering platform acquisitions?

You can't see me now. I'm looking at my cell phone to see how much money he will give me. No, I'm just kidding. It's a mix, but Young Supply is an add-on of Bolton. Of course, they're usually a bit bigger than the US and now in Europe, but it's a mix between mid-size and small-size acquisition that we're focusing on right now.

Great. Thanks for all the color.

Thank you.

The next question comes from Carl Bockvist from ABG Sundal Collier. Please go ahead.

Thank you. Good morning. Many questions have been asked already. I'm just curious if you can give us an update on how large share refrigeration is now in North America now when you've closed Young Supply and what it could be once we get a few quarters with it.

Yeah, if I do the back of the napkin analysis, if you're okay with that, Carl. sure well i would say it would be around you know somewhere between 12 and 15 uh refrigeration and our first ambition was to grow it to 20 but we right now as we put young supply into the mix we're right now analyzing the entire playbook on which branches how which suppliers we're getting uh you know access to products now that they did not have before. Not only because of BRF but also because of Young Supply and their platform. So I think we can be a little bit clearer when we put that playbook in place and we can see the speed on how it will transition here over the next six months. But we can come back with a clearer target on there when we see the development. But there's a lot of activities in there and a lot of you know it's a lot of interest on how we build that up now because we have the infrastructure and also remember the reason we like the refrigeration is it's probably not just not like a standalone business but it's the combination with HVAC and all the tight branch network we have we are very competitive and also with a supplier network in there so we do we do we do have a competitive advantage that we can leverage I would say over the next five years in the us for sure so let me come back a little bit more after we've seen where we end up in our pipelines.

Understood. And sticking on the refrigeration side, we've seen some news of refrigerant prices picking up again in certain categories. A couple of years ago, this was a very lucrative side of the business for you. So just curious if you've also seen for refrigerants that you're selling that it's been a good market and if possible you know if how much of a just sale of refrigerants that you currently have in your group?

Yeah and I know and you know when you looked at BRF before my time I think it was 18 and 19 you had when you went through the first regulation the price has gone up to 3x and I can't remember top of my head you know refrigerants that was 15% plus of sales at Bayer, so that made an impact. Today it's less than five, I would say it's less than two, 3%. So I agree prices continues to increase, but maybe at a speed of 10% plus per year, but it's not a major impact on us, which I think is pretty good because we've grown so much in other segments. Then I would expect, you know, also part of the volumes will be down as the market on heat pounds and older fridges that we sell into those are being balanced out. So all in all, not a major impact on the business so far.

Understood. That's all from me. Thank you. Thanks, Karin.

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

Thank you and thanks everyone for calling in.

Sorry, Kristoffer, I'm jumping in here. We've got two more questions now at the last second. So David, go ahead then.

The next question comes from Robert Redding from Carnegie. Please go ahead.

Yeah, thanks. I just had a question. I read in the report that you said your private label brands, Sinclair Inventor and Fredox, had strong double-digit growth in the quarter. So that seems to be continuing to contribute to organic growth. Could you say something about the process there? What's the plans for the next couple of quarters? Are you rolling out in more regions? And if possible, how big has that business become for you?

Yeah, so it's the biggest thing, or it does scale in our EMEA platform on there as we especially rolling out Sinclair in more countries in Southern Europe as part of our platform. We're also looking to launch it in our APAC platform, have not done that yet, and we're just about, you know, we're about to launch it in the US in there. So I think the the mayor region that is about 20% of HVAC sales. The brands and then APEC in the US is just starting the journey. So right now it doesn't have an impact on that, but it looks very promising to have this mid-tier product to also work with that type of customer because we don't see any cannibalization with premium customer and mid-tier. It's two different segments. So we'll continue and roll this out in EMEA, but the focus is also how we build it up in APAC and now the US region as well.

All right. But do you think that level, the share of this in HVAC Europe or EMEA, is that the level it will be at or will it go higher or?

I think it will continue to go higher, but I don't think it's going to be. I mean, at 20%, I think it's a good level. Maybe it'll go up to 25%, but it's not going to go up to 50%. That's not our ambition, but it's a good brand to have, and it's a good growth drive for us, plus it's a good margin development. So I think it's more that it will continue to outpace the growth and the rest of our product portfolio, but I think EMEA still is starting to be at a good level, and I think the opportunities for us to grow that is more in the U.S. than APAC. From a small base, it doesn't make a difference.

Perfect. And on refrigeration or Fredox, right, is that still more early days than on the HVAC side?

Yeah, the reason I don't mention too much is that journey will take step by step because it's a much more complex portfolio. So it's growing very fast, but from very small levels. So it doesn't come through in the numbers yet. So we have those initiatives. We will look at it. We're launching it in APAC now as well. And down the road, we'll look at it for the US as well. But that's more a long-term investment foresight. side of the business.

Alright, perfect. Thanks so much.

Thank you.

The next question comes from Brijesh Sia from HSBC. Please go ahead.

Hi Christopher, good morning. I have a question about the heating market. I know it's a small business for you, but just looking at the opportunity size there, given the market is now in a weak position and many producers are now kind of jumping into the European heat pump market and they're trying to build a distribution network. I just wanted to understand from you, how do you see that market as an opportunity for you in going forward? Do you see much more kind of players coming in and you as a prime distributor to help them build a network for them? So that's my first question. I may come to the second one later.

Yeah, I think for us it's of course a nice opportunity. We are being approached by new players to leverage our distribution network, of course. So it's interesting discussions both on the product side, the pricing side, etc. But for us, we're also very happy with the partners we do have in our channel. So I don't see any big transformative changes for us in that way but I'm not too concerned that new players are coming in either in the channel so I think that's more an OEM challenge or opportunity however you want to see so for us but we do entertain discussions with new players and especially if they have interesting product that we're missing in our pipeline or innovation going forward that will be interesting for us then we would see if there's something we can do together.

Understood. And when you look at the heating distribution and cooling distribution, does that need to be separate, or you can do both the heating and cooling solution to one distribution network?

No, it's normally two networks where, I mean, the heating, big heating is all the plumbing and everything around it, while the cooling side is the electrical side of the business. So when we talk about in our networks, you have, like always, you have some convergence of 20, 30 to 40% of those channels, and that's where we play. So we do not play in the big plumbing segment. At least right now, we don't have any intention to do that either.

Understood. And just lastly, on the destocking, anything you have noticed, whether that's over? I mean, I know last time you commented that it's more like looking like a Q3, Q4 story, but anything you have pointed or seen in the market?

No, I haven't seen any change in behavior there that's worth mentioning.

Okay, fair enough. Christopher, thank you very much for your time.

Thank you.

The next question comes from Adela Dashian from Jefferies. Please go ahead.

Yes, just one follow-up for me on data centers. It's a very key topic right now. Would it be fair to assume that the only segment in which you could see more data center orders coming through would be OEM for the time being, given that the rest of your exposure is mostly aftermarket sales, where the service opportunities within the data center market aren't as prevalent in the near to midterm?

Yeah, as I said before, a little bit when we discussed it, we do access in certain areas the market because a lot of the companies we bought in Eastern Europe, for example, have a wider scope in their business that also moves into these areas. But also in that same token, I don't want to overplay that hand. It is a business for us, but it won't change um you know the the world for bay ref at this moment with a business model we have um but of course the the fenergy situation uh could be you know substantial for us going forward uh but let's see you know it's a it's the first one but usually that's the hardest one to be in and i would say our solution is is pretty unique um nobody else was was bidding with our solution on based on natural refrigerants. And of course, we believe that's the future. But let's see. Let's get some more concrete facts behind it before I start tooting my horn on data centers.

Yeah, makes sense. Thanks. Thank you.

There are no more questions at this time. so I hand the conference back to the speakers for any closing comments.

All right, let's try and do this again. I hope you all have a very hot summer, and we'll continue to drive the business from here. Thank you very much for a good discussion and good questions, and have a good break whenever it comes to you. Thank you.

Thank you very much.