Careium AB (Publ)

Welcome to this Q4 and year-end presentation by technology-enabled care company Carium. After the presentation, there will be a Q&A with equity analysts, and viewers can ask their questions in the live chat. Please join me in welcoming CEO Peter Heumann and CFO David Granath. Welcome. Thank you. Thank you. And by that, please go ahead with the presentation and I'll be back for the Q&A.

Thank you very much. And thank you everyone for joining this year-end report and Q4 for 2025 for Carium. So I'm Peter Hojman and when we stand here today with this report, I have been the interim CEO here for almost six months and for closing the year, that was around my four months mark. Before we go into the presentation, I just want to give you a little bit of reflections here after I started and after this initial period. And, you know, it might be perceived as a little bit of a mixed result in this report. But I want to tell you that during this first initial period, I've done a lot of analysis, etc. I've been to most of the markets. I met customers, partners, our organization. I also want to emphasize that even though you see in the report that there are room for improvement, I have also found a lot of great assets. Just to give you an example, a large portion of the revenue in this company is based on long term contracts with solid customers. That's a very positive thing for a company like Carium. So even though there is a little bit of a mix in the result, I think you should also bear with you. There are some strong fundamentals in the company as well. Having that said, I think we will move on into the quarter four presentation. So if we start with some of the highlights, you can see that we have a positive development on the net sales. And if we adjust for the currency headwinds, it's a growth of around 6.3%. That's one of the positive marks in this report. Strong cash flow, important for this business, I think. And it's a very good, and comparing with last year, almost a doubling of the cash flow during quarter four for 2025. I will further go in later on here when we talk a little bit more in detail about the sales on the mix of product sales and services sales. But you can see that there is a slight growth in the product sales and we are on similar levels on the services sales. The EBIT is of course pressured under this quarter and we will come back and David will provide a little bit more details around it. And another highlight that was presented during quarter four is that the company will have a permanent CEO starting here in quarter two in Tove Kristiansson. So with that, let me continue with a little bit more details around the sales. So as you can see from the report, overall in quarter four, net sales increased with around 1%, but like I said, adjusted for currency, 6.3%. So the underlying growth, I think, is fairly decent. You will see in more detail later on as well that we have some headwinds also from these historic financial lease corresponding revenues from previous years. So underlying, it's actually even better. The service sales decreased slightly. I would say it's on similar levels and the underlying part is actually having positively as well. And there is an increase in product sales, which covers up a little bit of that small decrease compared to the services sales. And overall gross margin is on similar levels, I would say, as comparing with quarter four last year. But if we look at the total 2025, gross margin is up compared to last year. So overall, I think that both for the quarter and in particular for the year, both the net sales and the gross margin is heading in a decently positive direction, which is very, very good. Then if we move on, and I will try to provide you a little bit of more insight into the main markets for Carium. So if we start with the Nordics, you can see that net sales has increased with 7%. But adjusted for, because it's in this market, we have had the historic financial lease revenue or net sales classification historically, which is what me and David and the board has now tried to clean out of this company to make it more transparent. If you look at adjusted also for financial lease, the Nordics is actually growing with 25%. And I think that's a very solid number. This is partly also driven by a good growth in Norway. services amounted to 93 million approximately and product sales slightly below 8 million gross margin in the nordics during the quarter did also increase from 35 36 level up to close to the 40 level so it's heading in a positive direction and hopefully we can see that improve even further going forward when we have the full effect of these for example new contracts in norway Then if we go to one of our largest markets, the UK, I would say that the net sales is on similar levels and adjusted for currency, it's a slight growth underlying here. Services sales decreased somewhat while product sales increased. but and the gross margin is a little bit under pressure here i remember from last time we got a question about the services sales in united kingdom i have looked into that during my initial period here and yes there were some lot a large contract that was lost i think more than a year ago but the the operation is doing a great great job and i start to see positive crack attraction And especially now looking quarter to quarter, where they are growing with almost 6%. So it's starting to cover that one with new services contracts. And I have good faith in that that's going to continue going forward. There is a slight gross margin pressure in UK. I will talk a little bit later about the closure of the analog telecom communication services in UK that is planned. And I think here there's some large volume opportunities from a product perspective, but we might be slightly pressured in that competition for a limited amount of time. So I think that was some of the main markets, Nordic and UK. If I continue to somewhat smaller and more emerging markets for carium, we have in the Netherlands, I would say one of, in my perception, one of the most stable markets for carium, where we see a slight growth. I think the main takeaway here is that our team in the Netherlands managed to keep a very good gross margin on an above average level for carium overall, which provides a great contribution. If you look at the full year in the Netherlands, we also saw a slight growth of revenues down there. Then if I continue with other markets, which is primarily Germany, France and etc., net sales in the quarter was somewhat, I would say, on par with last year. But also here, which is very product driven, I'm impressed with the gross margins that the operation can provide, which also contributes then in a positive way into Carium overall. But if you look at the full year for these markets, they have also provided growth. So all in all, a few very stable markets with great margin generation and overall similar levels or so on the top line. But I think contributing to some of the positives in the report, considering both net sales, cash flow and gross margin. With that, I will hand over to David who will guide you a little bit more in detail about the profitability and the cash flow. So over to you, David.

Well, thank you, Peter. And now a short update on the profitability for the quarter. EBITDA amounted to 27 million compared to 44 in the same period last year, reaching an EBITDA margin of 11.7%. EBIT was 11 million in the third quarter compared to 26 million last year, giving an EBIT margin of 3.6% compared to 11.6% last year. As Peter mentioned before, EBIT for the quarter was affected by, I would say, increased headcount in sales and development during the year. We have disposal of some assets and we have some initial initiatives for future efficiency, I would say. And with that, moving on to the cash flow. As we see, cash flow is one of our key metrics. We have increased the transparency in the cash flow statement in the report. So there you can see that the cash flow from operating activities amounted to 69 million in the fourth quarter compared to 35 million for the same period in 2024. Investments amounted to 39 million and almost double compared to last year. This increase, as I mentioned before, is driven by tangible investments due to less contracts being classified as financial lease. So both the cash flow from operating activities and the investments are impacted by the financial lease. That's disturbing the comparables a little bit, but on the free cash flow, I'm pleased to see that we managed to get 30 million driven by improved working capital. The cash was 55 million and net debt was 155 million at the end of the year. And the board will not propose any dividend for 2025 as we're building up resources. And with that, I hand over to Peter for some annual summary and concluding remarks.

Thank you, David. So if I should try to summarize the year, even though I haven't been part of the full year, I think some of the positive and best takeaways from my perspective would be that the overall net sales of 854 million versus 870 adjusted for currency, it provides still a growth. However, if we look at net sales and also the headwind the company had from the financial lease, the net sales actually grow almost 10%. So I think it is a little bit disturbing to compare from previous year. This is going to improve a lot going forward for Carium. But the takeaway should be that the company grows almost 10% during 2025 on net sales. And I think that's strong. On the EBIT level that David described, overall over the year, 49 million versus 84. And that's, of course, also with the explanations that David provided. Me stepping in here, as you see, in quarter four, I am part of effecting this. And we mentioned part of the reasons in the report. Some of the initiatives, there are room for improvements. and we can explain that even further in the Q&A, would there be any questions about it? Free cash flow, very positive, very good job in quarter four by the team, and over the year, it has increased as well. So I would say 2025, it's a little bit tough to compare, But takeaway is that there's a strong growth, almost 10%. So sales are higher, gross margin is higher, and there is an improved cash flow. Those are the positive takeaways from my perspective of Carium 2025. Now, I think we have an end slide here at the end where we just summarise and I will speak a little bit about these initiatives going forward. So if we take some of the positives. So there is a good net sales growth underlying here. Product sales has continued to grow in this quarter and there is an improved cash flow. So some of the challenges that we saw and that I faced in for carrying during quarter four is what I mentioned there about you, UK. And I hope that's going to be more of a not a long term, but rather a short term perspective with the transitions going on in UK. We have a somewhat for being such as. large market for Carium I think we have had a little bit of a gross margin challenge there that we we have put our teams on really monitoring going forward we do for sure see that we have a short-term negative pressure on our EBIT that's a challenge for the company and despite growth in product sales we were actually expecting a little bit more here in quarter four And hopefully we're going to bear the fruit of that going forward. So if we look on the last bullet here or column, quarter four priorities ahead. So as you could see in the report, I do mention that there are some room for improvements. That has to do with providing a scalable modernizing of our technology a little bit from all these historic acquisitions. and how we can do that in an improved way. You might have seen that we have made some changes here in management, in CTO organization. We have a plan for it. We have started and initiate a positive transformation here. I think that's going to help Carium in a very positive way in the long run. also due to the historic build-up of Carium, which is based on historic acquisitions. I have clearly in the analysis seen that we can find and build a somewhat improved structure of capital, align our processes and different market operations in a more efficient and modern way. I think this will provide long-term efficiencies for Carium, perhaps a little bit of a short-term pain, but I think it's going to be well worth it for the long run for Carium in running a more efficient operation. I also believe, and we are mentioning in the report, that some of our market offerings, how we become more customer-centric, stay even closer to our customers, especially now with these new technologies, AI, and things like that, and the digitalization of many markets who have not come as far as maybe some of the Nordic markets. I think that's going to be a key, and we have initiated some programs in the company to improve that as well. Even more short term or going into here now in 2026, we have put a focus on reaping the benefits of the closure of the analog telecommunication infrastructure in UK. That has been planned by UK before, but it looks much more likely that it's happening now and we are gearing up and I think that's what you see part of the OPEX increase that had started already before I got in here part of that is in sales particularly then for example in UK but that's to try to reap the fruits out of this potential product increase in the market in one of our larger markets earlier and before i started i have also found that there has been quite a lot of communication about some new products more software related products i call it care platform we have taken some actions here as well to really accelerate that and i hope even while i'm here that i'm going to be able to come back and provide even more input on the status but i start to see some positive signals there from the market related to these products So I think that kind of summarizes a little bit of some of the main positives, a little bit challenges, and what we're focusing on ahead. So I think we should stop there and be open for questions.

Thank you so much, Peter and David, for the presentation. And we move over to the Q&A. We will welcome the first equity analyst. That is Fredrik Reuterhall, analyst at SEB. Please welcome and go ahead with your questions.

Good morning, Peter and David, and thank you for that. So my first question is around the initiatives that you're launching here, and I would like to understand a bit more what is happening here. You list three initiatives, modernizing your tech, improving your structured capital, and improving the product offering. So if we start with the first one, I mean, modernizing the tech stack sounds like a long and pretty costly project, to be honest. So what can you tell me about that one? What are you doing?

Yeah, I will try to guide you and everyone a little bit at least. So being here early in and trying to see how we can get the full potential out of Carium in a smart and modern way. You know, we report on products and on services. But all our products that are linked to an alarm center, they are also carried by a fundamentally important software stack. That software stack, based on that Carrium is built out of several different historic acquisitions, requires, according to me, some kind of modernization, where we can do some improvement. It's easy to step in and say that there's legacy, but there is clearly room for improvement in making that modern, structuring up. So the whole platform that most of our offerings are based on becomes more aligned with all the different operations. My analysis, I think we can do this in a very reasonable amount of time. I don't foresee large, heavy cost burden for a long, long time. I think it's very reasonable. We have a new CTO in place. He's already working on it. We have some good staff and with his leadership, I'm pretty sure that he can do a very good job here going forward.

You mentioned the first half year, 2026, but do you think it will be done after six months?

You know, technology projects normally takes a little bit longer time. The interesting question is, can we do it with the competences we have, with the partners we have, etc., and how we are organized? I think we can utilize a lot of the good competences we have with a little bit structuring this in different ways, aligning it in a better way, utilizing modern tools in an improved way. I think we can do a lot here. It's probably going to take a little bit longer, but we are catering for all these services while we are doing this. So it's going to run for a little bit longer than six months for sure, but it's not going to be like a three-year project or anything like that. That's going to be extremely costly. I'm not worried about that, Fredrik.

Okay. And you took some topics in the quarter for this already, or?

Part of the, I mean, we have done some management changes, things like that. And, you know, this is part of adding up to some additional cost in the quarter. But not CapEx, as far as I know. Okay.

And where does the iCare initiatives fit into this? Is it a separate one or is it part of it?

You know, as far as I have understood, iCare is like a group name of all the offerings. If you are referring to a software platform, is that what you mean, the care platform? Yeah, that's part of this as well, absolutely.

Okay, okay. And is improving your structured capital, that is also part of this, or is it something separate then?

We run that a little bit separate. That has to do with the history of several acquired companies, etc. This has to do, my focus here is to try to align the different operations in more modern ways using technology. For example, you are linked to IT infrastructure. If you do this right, you can reap the benefit long term by running a more efficient operation.

Okay, but so I just understand this was not, you know, you're not going to use any outside sources. So most of it's going to be within Carium.

Most of this has to do with Incarium. It might be replacing some tools. It might remove duplicates due to several historic separate entities just to find a modern way of running your operations, aligning your operation with modern tools that can make you more efficient. That's what it's about. Yeah, okay.

Then moving on a bit, I mean, your OPEX is continued to go a bit higher. And you mentioned that you hire salespeople. Can you talk about countries are you hiring in? And how many people are we talking about?

I mean, we're not going into details on on on how many people but I would say the increased focus in sales has been on the on the hiring side is in the UK and Germany. Okay.

Are you down there or are you looking for, you know, to hire more people?

No, I think we are at a good level right now. Okay.

Okay, let's move on to the free cash flow. That was very, very strong, very impressive. And I see, I mean, it was a large reduction in the working capital, very impressive. Can you talk about what work have you done there?

I mean, we have done some, most of the, it's mainly done by the inventory and the accounts receivable. And I would say the accounts receivable has been a long work during the year on the processes, on how we work with it. So I would say it's more kind of, reaping the benefits of a long-term initiative, so to say, that we can see end of year. Inventory is more kind of adjusting for, I mean, it's back to the normal kind of planning, meeting the demand planning versus the sales planning and so on, and be on top of that.

Okay. And I mean, according to my calculations, the sales outstanding is now down to 42 days, which is very good. Will you continue to improve this, you think? I mean, I know that in... Speaking of 2023, it was down like 25 to 30 days. Do you think you can push it down lower?

I would say it's a little bit dependent on quarter. I see it more on kind of a long term way of working with the receivables. I mean one change as you can see in the cash flow is that we have an offering with some part payments with longer payment terms. Those are now visible in the in the financial assets, and you can also see them in the investments in the cash flow. So there are some, some of the receivables are of a longer type character, but I would say we still see some improvement, but I would say we are also at a fairly good level right now.

But we shouldn't expect this to go back up again, up to, you know, above 50 days again, or?

No, I wouldn't say so.

No, okay, okay. Okay, I have, let's see, one last question. I mean, can you give some view on your competition developing in the different geographies? Do you see any players moving more aggressively than before? Or is it more like the same? Or what is your take there?

I can try to give you a summarized picture, Fredrik, from the time I have been here. I think if there's something I see from the Nordic market, from the UK market, is that there are in general... technologies that are modern etc that are coming in towards this area and they are coming in in different shapes and form so i think it's about being very active with how you develop your services uh what what kind of technologies you are bringing forward towards your your customer base and i think so in general it it's how technology is in different ways can support the customers. We see some new entrants that might not have the whole service offering, but they come with soft parts or niche software solutions that can fit in. And they try to get into the customer that way. So I think it's technology, software enabled companies is something that I start to see stepping in from a little bit different in different markets, but I think that's a general kind of theme that you get the feeling for when you're out there in the different markets.

Okay, so no new players that moving forward aggressively?

No, but there can be some of these smaller niched software companies who are trying to aggressively go in towards certain segments or certain categories of the traditional telecare, for example. So that's what you need to look out for or learn from and adapt and become better.

Okay, makes sense.

Okay, thank you very much. That was all for me.

Thank you Fredrik Reuterhall SEB and we will soon have the next one but first let me pick one of the questions from the viewers and it reads as follows. You described the impact of these new lease accounting as the year on year difference in financial leases. Has the number of lease contracts increased or decreased compared with last year? We are on similar levels as last year. Okay, thank you. And by that, let's welcome Alice Baer of ABG Sundahl Collier. Please go ahead with your questions, Alice.

Hi, thank you, Peter and David. Just going to start out on the cost base. Could you help us navigate through these different mentioned negative effects? What are the biggest impacts and what is sort of sustainable going forward? Or is there anything that can be almost considered a one-off?

Yeah, I mean, we have deliberately not talked about one-offs in that way for the quarter. I mean, we have initiatives that we have done, but I would say, you know, roughly 5 to 10 million I would say could be of a, you know, one-off character. But otherwise, I mean, we prefer to run the business as is and, you know, take the cost as is. But, you know, around that number, I would say.

Yeah, no, I can appreciate that. Would you say that that's sort of, is that due to these Norwegian contracts heightened costs and could that, will that continue into Q1?

I mean, for the Norwegian business, we see that it's still in the kind of ramp-up phase, and that will continue, I would say, until April or so. After that, it's going to be more on the kind of continuous running operations, and then it will go over several years. But Q1, I would see some margin pressure as well on the Norwegian business. But hopefully from Q2 and onwards, it will be better.

Okay. And the phasing out of these outdated assets, will you continue to do these? And what exactly are these and what's the impact?

mean it's a review of the fixed asset register and if we have deemed that these are assets that is no longer active or not at the customers we have disposed them so to say and we will continue to do that of course I mean we are running a leasing business so I mean products go back and forth to the customers so it's more on kind of maintaining that I don't see any in the near term effects of that. I mean, we have done some now in the quarter and we'll continue to review it. But I mean, again, we have done it now, so.

Okay, and then just a final mention on this. What would you say that you have the most least visibility on these sort of short-term elevated costs? Is there anything that you know Will not continue after Q2 or is there anything more sort of variable?

I think if I try to say something here, David, you know, if you look at it and like we write in the report during 2025, there has been a focus on investing in some more R&D staff. plays quite well with what I have stated here earlier of working on the modernization of technology. And another important part is investing in sales staff. They have done that, I think we see the full cost of that starting to hit in quarter four, but that is related to the potentials that the company have seen in, for example, UK, Germany. We better make sure that we can follow this, we can monitor this now. I have understood since I got in the reasons for it, now we better monitor whether we are reaping the fruit out of these possibilities or not. That's one important part, and to David's point, There are. So when I step in, we start to together to look through the company, what are the improvement areas, etc. We have taken some kind of classical one offs. I would say in different companies where I have been, there is no major, but they have added up in the quarter. Part of them are of more one-time character. David mentions a number here. I do also believe that some of these initiatives might pressure us a little bit. That's why we write going forward that first quarter one, quarter two can follow some pressure. I would put this in a little bit of short-term pain for long-term gain.

Okay, yeah, got it. And then moving on then, you did not provide any guidance for 2026 and mainly commented on the margin pressure in each one. But could you talk a bit about the market and your general outlook on the underlying performance that is not related to investments?

You mean going forward or reflecting on 2025?

No, going forward. I mean, you talked a bit about the UK, but if you could comment a bit about the Nordic market.

Yeah, but there are so investments the company had done before I started here that we now see in quarter four. By the reasons that I understood related to, for example, possibilities in Germany, possibilities in UK. There are also a lot of activities in Norway. You see in the report that we are growing in Norway, have already secured large contracts. So I think the company is growing. We have now been sitting with the budget for this year. And I have good faith in that we are, from a net sales perspective, in a positive momentum. And we can monitor it going into 2026 now.

All right. And then you also mentioned being an active part in the market consolidation as a potential M&A then. Are you in a position to do acquisitions at the same time as taking this higher cost base short term?

Let's try to put a balanced answer in here. I think there is for sure in the long term a possibility to take part of a consolidation in this market. It might be very beneficial. I do believe, and you can read that through the lines in the report, there's a little bit of improvements here from the historic acquisitions. If we can get them and bear the fruit of them, implement them, then I think Carrion will be very well positioned to take part of it. Maybe a little bit early just at this stage with respect to what we are now initiating and improving. If that's a kind of balanced answer.

Yeah, okay. And then the number of connections showed an increase for the first time in a long time. Are you done with the old phasing out of these unprofitable contracts or how should we perceive that?

I mean, I would say, Daniel, I think you're referring to the UK. I mean, I would say in the UK, looking quarter on quarter on the service sales, I see that we have a kind of steady growth now. I would say looking at service sales, there is more kind of two outlying quarters. It's the Q4 last year and Q1. I think we mentioned in Q1 that we did an accrual on the SIM revenues. I would say those are more.

more of the outlining that's why we also refer a little bit to the quarter-on-quarter increase so yes we're winning contracts in the uk and we see positive momentum okay and then staying on the uk just could you shed some more light on the gross margin developments when you say that it's pressure due to competition for a limited amount of time what is that entire limited amount of time is that a few months or is that maybe the entire year or what do you see there

but i i i'm gonna be a little bit a little bit careful with specifying it but it has to do with uh with with the phase out of the analog telecommunication there which provides us and others with a great possibility to reap the fruits out of of gaining market share from a product perspective I do believe that that might lead to, because it's such a fundamental shift in the country, to some margin pressure. Preparing for it, putting your feet in there, already being in dialogues, doing some of these deals, seeing what's going on, it's quite likely. I believe the upside for Carium is that is a very product-driven shift. But Carium also has its own alarm center, the connection between those products to our own services that can then later become a services sales. So I think there might be mainly on the product side a little bit of a margin pressure. That's hardware. But I think the positive for Carium is that we could follow up with service related sales. So the better we do on the product, the more likely we can also increase even further on the services side.

And to add to that, I would say the comparison number for the gross margin in UK is more on the yearly side. We have had some quarter to quarter effects on the gross margin. So, you know, the yearly gross margin is a better comparison of what we see going forward.

Yeah, okay. And then just the final question, more of a detailed one. You stopped reporting EBITDA in the quarter and did not specify the split between depreciation and amortization. How much amortization was there in Q4 and will you continue to not report EBITDA?

I mean, beta was, it's reported in the same way. We just changed the name of it because it has, it's basically just for acquisition related amortizations. And then we have not added a beta again. So there are amortizations again on the intangibles. Those are not in historically. So it's the same number we're reporting on. It's a name change.

Okay. That was all for me. Thank you.

Okay. Thank you so much, Alice Baer of ABG Sundahl Collier for your questions. And as always, you have a very engaged investor group. So there are a lot of questions. What are the main costs that are lowering the profit this quarter? I think we've answered that already. There are a lot of questions around that. OPEX increased with almost 20 million SEK in the quarter. I understand that this is an effort of integration activities. Can you specify how large costs that are related to these activities?

I think that's what David mentioned a little bit before. We said 5 to 10, but there's also more of a one-time character in there. But the recurring part of a little bit somewhat higher run rate, so to speak, from an operator has to do with the staffing of sales and R&D that we see right now. And the other parts are more of the initiatives or more of a one-time character.

Yes. And how do you mean that you want to be a modern European health tech company? Is it not better to keep the division decentralized? It's not a question. It's more like an opinion.

Yeah, yeah, yeah. Yeah, but, you know, become a modern. I haven't. I have only, we have been writing that we want to better align. It goes both for our offerings as well as how we run our operation in an efficient way, how far we distribute the P&Ls, et cetera. That's something else.

It's a related question. Will the separate markets be negatively impacted by? Will sales department have their hands tied if you want all of Carium to use the same model for sales, etc., not letting them stay decentralized?

I'm not going into that dialogue because I don't think we have decided exactly to what level you distribute or not distribute the way you run the operation in modernizing this.

We move on to the R&D that increased with 40% in the quarter and to the comparable quarter increased by 79%. Have Carrion been underinvested and will this trend continue going forward?

I would say, and I mean, during the year, we have said that we have been underinvested in the R&D. So that's why we have been investing in during 2025. I see we probably need to continue a little bit during the year. And as Peter said, I mean, most of it we will probably do with the

existing kind of organization but a few additional investments and then of course it's a you know year-on-year effects and stuff like that so but I would probably see a little bit more investments thank you and can the headcount increase be quantified additionally will the impact from onboarding the Norwegian customer be as significant in q1 as it was in q4

I think we answered on that a little bit already. I mean, we're thinking about maybe adjusting the headcount reporting a little bit. I mean, our headcount is very heavily impacted also by our delivery organization, our alarm centers. So, you know, perhaps in Q1 we will separate that out and report that separately as well.

Okay, thank you. And the question goes on. What part will the new Chinese owner play in the board? And how are they related to Carium in the value chain? And have they communicated that they want to move the company in any direction?

I think that's something that that question should be put to the board. Me and David don't decide who's the owner of a public company. So that question should probably be put to the board.

And I think it's not in the board. They're part of the nomination committee.

Were the one-offs significant in the quarter? And could you please help us understand what would be the normal cost level for Carrium? Any clues would be helpful.

Yeah, I think we've provided the clues we are providing for this.

Okay, now that was actually all the questions. So we will sum it up. And thank you so much for joining us today. And good luck going forward.

Thank you very much.