Hexatronic Group AB (publ)

Welcome to this presentation of our Q1 2024 report. You will be listening to Pernilla Lindén, our CFO, and also Martin Åberg, our Deputy CEO, and myself, Henrik Larsson-Lyon, that is the CEO of the group. So, the agenda, we will first look at Hexatronica at a glance, we will look at some Q1 highlights, a financial overview, business overview, and then in the end, a summary and market outlook followed by a Q&A. So, at a glance, so when we look at the markets we are operating in, it's a strong need for fiber optic networks. We see that a low number of homes are connected with fiber optic networks, and that's across all the strategic growth markets we operate in. We see also that 5G deployment drives the need for fiber optic networks, like the backbone, but also connecting small cells. We see that the increasing use of data intensive technologies creates a growing need for fiber connectivity for enterprises and data centers, and that's a strong driver now, we will come back on that. We also see a shift from copper to fiber in harsh environments, such as oil and gas, sensing, defense, oceanographic, and subsea applications. And on top of this, there are quite some significant government initiatives to support fiber deployment in especially rural areas, and especially in the US, UK, and Germany, but most countries have this. This picture shows the fiber penetration in a number of markets, and we have highlighted the strategic growth markets we have. These figures are updated, we got new figures in March, and for Europe it's figures that are from the study performed in September last year, and for the US study that was made in the end of 2023. And we see some movement, so for instance Germany has moved up to 10%, I believe it was around 7% a year ago. UK has increased to 17%, US 24%. But as you can see and compare to, for instance, a very mature market like the Swedish market when it comes to fiber to the home, which is around 70% penetration, there is a long way to go in many markets. And as I mentioned on the first slide, there are some big government initiatives in order to provide fiber to rural areas, and the biggest ones here are in the US, where we have the BEED program and there are actually several other programs that also support fiber rollout. But the BEED program is around 42 billion US dollars. We can say that we haven't had a lot of movement of that lately. When we reported in Q4, we had Louisiana that was fully approved and had got their funding. As of yesterday, there are three more states that have got the full approval and their funding to start to put out areas for BEED. But we see a slight delay in these projects. In the UK project gigabit, that's ongoing and constantly new areas that are put out for BEED. And we also see that in Germany in their gigabit strategy that they have started to come out for BEED in the market. So these government initiatives are on the move. If we then look at Hexatronic as a total summary, we have revenues of 7.8 billion SEEKs and that's a rolling 12 basis. We have an EBITDA also rolling 12 month basis of 1 billion SEEK. If we look at the average growth over the last five years, it's 36% per year when it comes to the revenues and 55% when it comes to EBITDA. On rolling 12 months, we have an EBITDA margin of .3% and we are roughly 2000 employees. This starts to be more important when we look at our business. We have three focus areas. So the biggest one is fiber solutions and that's where it all started for us. In the quarter, it represented 71% of our total revenue and that's where you have fiber to the home, transport networks, submarine cables and so on. So it's quite a wide area and representing 71% of revenues. The next growing in terms of importance is harsh environment and data center. So if I start with harsh environment, it represented 15% in the last quarter of our total revenues and data centers 14% of our total revenue. And I will come back with some more information about that later in the presentation. If we then move into Q1 highlights. So we continued to see a strong operating cash flow and also a good contribution from the new focus areas, data center and harsh environment. Net sales decreased 16% year on year and quarter over quarter 4%. We had a negative organic growth of 27% and you might remember that in Q4 we had 23% negative organic growth. So roughly the same level. And this is due to the softer markets, the conditions we see in fiber solutions. We should also say that Q1 but also Q2 last year, they were two record quarters for us and in Q1 last year we grew 52%, so really strong quarters that provides a tough comparison. When we look at harsh environment and data center, they grew by 397% and 40% and we can say in harsh environment, it's mainly by acquisition and in data center it's mainly organic growth, so strong growth there. EBITDA amounted to 168 million SEK and that corresponds to a margin of .4% which is pretty much in line with last quarter. We had an earnings per share of 0.31 SEK compared to 1.09 in the corresponding quarter last year. Cash flow from operating activities was 270 million SEK compared to 28 in the last corresponding quarter and we had a cash conversion of 234% so really strong and it was primarily driven by continued optimization of our inventory levels. The interest bearing net debt excluding IFRS 16 is in line with the previous quarter and it amounted to 2.1 billion SEK and we have a leverage ratio that increased from 1.4 to 1.7 this quarter compared to year end and that was primarily due to lower profitability in Q1 this year compared to Q1 last year. If we look at the leverage including IFRS 16, it increased from 1.7 to 2 and our order book corresponds to a little bit more than two months. It's unchanged more or less since year end and I would say we are back to the levels that we have been talking about that we had before the pandemic, the war in Ukraine. Significant events then. So what we have announced is that we merged two of our Swedish subsidiaries. So it's Hexatronic cable and interconnect systems and Hexatronic fiber optic so that will be Hexatronic Sweden and that's for more efficiency. The nomination committee have proposed Magnus Nicola as election for chairman of the board and that will be at the AGM 7th of May in Gothenburg and you are all very welcome. The board of directors proposed to the AGM that no payment of dividend will be made for the financial year 2023 and we also announced yesterday that we will extend the executive management. So Jakob Skog who is head of our focus area Harsh Environment will join the executive management as of April this year and in June we will welcome Pernilla Grämpfelt as head of investor relations and she will also join the executive management team. Looking at the last five years and I mentioned this in the beginning, we have had a strong growth of revenues 36% in average per year and we have had a strong EBITDA development in the average 55% over the last three years and earnings per share even stronger with 64% on average. And just to remind we have two financial targets that we communicate. One is we want to have a total growth of revenue at least 20% per year and an EBITDA margin between 15 to 17% and both these targets we say are over a business cycle and I would say currently we are for fiber solutions down in the business cycle. Moving into financial highlights I will hand over to our CFO Pernilla Lindén.

Thank you Henrik. So we had a total net sales of close to 1.8 billion SEK in Q1 with an overall decline of 16% or a decline of 333 million SEK compared to a very strong first quarter last year. Quarter over quarter we had a decline of 4%. We had an organic decline of 27% mainly attributed primarily attributed to fiber solutions in Germany, US and UK. Markets that are mainly negatively affected by higher financing cost and higher cost of inflation. The organic decline was partly offset by acquisition driven growth of 11% from Rochester cable and Fibron cable in the harsh environment area, US net in the data center area and ATG that was acquired in 2023. And as Henrik said our focus area harsh environment grew with 397% and data center with 40%. Overall we had a very limited exchange rate effect in the quarter. Looking at a gross margin we had a gross margin of .5% which is in line with Q4 gross margin but .2% lower than a record high quarter last year. That is mainly due to lower manufacturing utilization, some price pressure in some markets and mix effect. And the mix effect is related to Fibron cable and Rochester cable within harsh environment with lower than group gross margin but with an EBITDA that contributes positively to a group margin. If we're looking at our operating expenses we are in line with last quarter and 56 million sick lower than last year even if we have invested in new acquisitions during 2023. For Q1 2020-24 we had an operating expense of .5% of sales compared to .6% in previous quarter. We have previously communicated that we have initiated a cost saving program and that program is mainly related to a reduction of production staff but also white collar workers in fiber solutions in several of our geographical markets. The program generates an annual cost saving of approximately 90 million. The program has been gradually implemented and finalized by the end of 2024. Overall we had an EBITDA of 168 million or 9.4%. A 54% decline compared to last year but in line with Q4 EBITDA margin. We had a strong operating cash flow in the quarter. Cash flow from operating activities before changes of working capital of 160 million SEK. A positive effect of working capital of 155 million SEK. During the quarter we have continued to work on optimizing our inventory which resulted in a reduction of 88 million SEK. Due to holidays in connection with the quarter closing accounts receivable and accounts payable have been slightly affected by deferred payments which has been carried out the first week of April. But overall a positive effect of 67 million in the quarter. Total cash flow from operating activities amounted to 270 million SEK corresponding to a cash conversion of 234% in the quarter compared to 8% cash conversion last year. Capex investment in the quarter of 68 million SEK or .8% of sales and 460 million SEK rolling 12 which corresponds to .9% of sales. The investments in the quarter is mainly driven by capacity investment in the US. After two investment heavy years in 2022 and 2023 and after completing the investment program in the duct factory in Ogden, Utah that will be finalized in the third quarter in 2024. We believe that we will be able to grow for several years without extensive investment in the fiber solutions area. As communicated last quarter our estimate is that investments in 2024 and onwards will amount to approximately -4% of sales of which approximately -2% are expected to be maintenance investments. 92 million is related to acquisitions. 80 million payment of additional purchase price related to the acquisition of Fibron cable and US net. In addition a minor add-on acquisition that was made during the quarter in form of Mconnect and also minor investment in a joint venture company. During the quarter we have amortized our RCF of an amount of 124 million SEK and amortized our lease liability of 31 million SEK. Interest bearing net debt which corresponds to net debt excluding lease liabilities amounted to 2.1 billion SEK at the end of the quarter which is more or less in line with last quarter. Interest bearing net debt in relation to perform EBT on a rolling 12 month basis a key ratio that reflects our existing bank covenant has increased from 1.4 to 1.7 during the quarter. And the increase is mainly due to lower profitability in the first quarter compared to Q1 in 2023. Including IFRS 16 it corresponds to an increase from 1.7 to 2 in the quarter. At the end of Q4 we had 795 million of cash and an unutilized backup facility of 998 million SEK which gives a liquidity of approximately 1.8 billion SEK.

Thank you, Pernilla. So we continue with the business overview and we start by looking at the performance in each focus area we have. And that's Fiber Solutions Harsh Environment and Data Center. And just to say our ambition is to over the year provide more information especially around Harsh Environment and Data Center. So if we start by Fiber Solutions and we put the heading continue to navigate through a softer market you see that revenues went down from roughly 1.9 billion to 1.3 roughly versus last year. And when we look at the business development there the decrease in sales is primarily driven by higher financing costs for our customers, cost inflation and also to some extent high inventory levels in some geographical markets. I've mentioned that before that for us we have seen that to a lesser extent but several of our larger competitors have had a big effect of this. And I can say we see that these inventory levels out in the market they start to normalize I would say. Also as I mentioned initially the comparison versus Q1 last year is a tough one because it was a record quarter for us. When we look at the market development and it's very much due in our opinion due to higher cost of capital, inflation and high inventory levels that has led to a softer market for Fiber Solutions across most of the geographies we are operating in. We see that these governmental subsidies that I talked about but it's not only those three markets it's in most markets we operate. They will have an increased impact on the market going forward and in combination with the normalized inventory level we expect to see a gradual recovery of the market in the later part of 2024. I should mention also that if you look at these different markets the governmental subsidies are good because it focuses on areas that most probably wouldn't have been built because the business case is not possible to get together for an operator. But it's still the small part the biggest investment in Fiber Solutions is by the existing operators in the different markets and I would say private equity financing a lot of new entrants to the fiber network market. If we look at harsh environment we are capitalizing on trends within defense and energy and you see the growth that we have been saying a couple of times from 52 million in Q1 last year up to 259 million in Q1 this year. And it is driven primarily by the acquisition of Rochester cable and Fiberon cable and they are both active in dynamic subsea hybrid cables and it's primarily applications in energy and defense. When we look at the markets and forward there is a strong demand both in defense and energy markets and we expect that trend to continue over several years going forward. We see also an expansion of existing sea based infrastructure and it's a great interest in renewable offshore energy production. So that's good for our business in harsh environment. When we look at data center it's an organic growth primarily driven by hyperscale build out and you see that revenues increased from 182 million to 256 and it's primarily an organic growth. Part of it is due to the acquisition of the US net in the US. We see a strong growth in the product and service business in both our main geographies which are the US and Europe. And the main market driver here I would say is the acceleration of the implementation of AI and that requires significant data center capacity and I would say it's a shortage today. We expect this also to remain over several years going forward. If we then move into geographies and here I comment on our total business in each geography and we start by Europe excluding Sweden where we saw a sales decline but partly mitigated by the growth of harsh environment and data center. So it represents 46% of our total business. We saw the sales decline compared to last year, previous quarter last year, primarily due to software development within fiber solution. And the decline is primarily due to Germany and UK and we had as I said before a very strong Q1 last year. We see a softer market in all markets but as Germany and UK is the largest market for us that's where it affects us the most. We continue to see a solid performance within harsh environment and that's primarily then fiber on cable. When we look at the market we see that the higher cost of capital and inflation, high inventory levels that has led to continued soft markets for fiber solution in Germany and UK but I also mentioned in most markets. And you will see this explanation for all geographical areas. And both for harsh environment and data center the market continues to show strong demand. And as I mentioned before it's primarily due to defense and energy markets but also AI development. If we then move to North America we continue to position the company for long term growth. North America represents 37% of our total revenue and when we look at the business we had a decline of 8% and that's mainly due to decrease of sales of ducts and that's for blue diamond industries. And then we partly mitigated that by the acquisition growth of harsh environment and also US net as I mentioned before. Our FDTH system sales in the US and Canada were slightly behind Q1 last year and that was primarily due to some delays in a couple of projects. We continue the investment in the new factory for blue diamond industries in Ogden, Utah. And that will expand the addressable markets for ducts to include Western US which we have not been able to deliver to before and it's a big market. And as we have said before we expect that market to be ready for production in Q3 this year. Market development, same as I talked about in Europe, the higher cost of capital inflation and high inventory levels that has led also to a softer US market primarily within duct but also fiber to the home. We expect to see small effects of the BID program in the later part of the year. Only Louisiana fully approved. I mentioned earlier that yesterday three more states have been approved, fully approved and that means they get their funding and can put projects out to bid. And we see that the rest of the states in the US, they have lined up and are waiting for the final approval. So we expect to see more states coming online here later. If we move down to Sweden, that's 9% of our total revenue and there we had a sales decrease by 8% and that's primarily driven by softer fiber to the home markets. And for the market development it's the same explanation as I said before with the cost of capital inflation that has led to a softer market. And the last geographical area is APEC, Asia Pacific, and there we saw a decline of revenues of 25% but it's primarily explained by a delivery of a submarine cable that we had in Q1 last year to South Korea. And to a lesser effect a slower FTTH market in Australia and New Zealand. And I will repeat myself but on the market development for the fiber to the home market it's the same explanation with a higher cost of capital and inflation. Then if we move to the final part of the presentation we have a summary and market outlook. So as a summary, we had a strong cash flow primarily driven by a reduced working capital. We continued our diversification through harsh environment and data center and that to some extent mitigated the current conditions in the fiber solutions area. And net sales primarily impacted by continued challenging conditions within fiber solutions and also the comparison to a very strong Q1 last year. Profitability was in line with previous quarter with an EBITDA margin of .4% or .1% in last quarter. And we continue to maintain a strong financial position with a leverage ratio of 1.7. Then market outlook. We expect a strong market within harsh environment and data center for 2024 and for several years. And that's fueled by investments in defense, energy and AI primarily. And in fiber solutions we expect the market to remain weak in the coming quarters and then a gradual increase in the demand in the later part of this year. And the main reasons why we see this is normalizing of inventory levels. We see the BID program to have some ethics this year and that's the main reasons why we see gradual recovery of the market. I can say there is still so much to do in the fiber to the home space in many markets. Good. Then we move into Q&A and we have a number of people who have already listed for questions. We would like that each person raising questions try to limit themselves to around three questions so we have time to go through the list. So I leave over to the Q&A session.

The next question comes from Jacob Edler from Danske Bank. Please go ahead.

Hi Henrik, Pernilla and Martin and thanks for taking my questions. My first question is on your outlook commentary. It seems that you are tuning down your Q3 a bit relative to what you stated in the Q4 report. If you were to rank, what was the most in the commentary change? Is it interest rate expectations in the US and other markets holding back customer demand, BID program, state approval delays or also some flavor on how inventory corrections among customers are developing? That's my first question. Thank you.

So it's Henrik here. I would say probably interest rates levels. When we presented our Q4 report, if I take the US as an example, at that time, three months ago, it was more discussion and debate how many times the Fed would manage to decrease interest rates in the US. If you look at the current climate, it's more discussion. Will there be an interest rate reduction this year from the Fed? I think interest rates, because it affects more as all markets. So it's a good sign if they go down, the risk appetite comes back. Then I would say also that even if we are not that much affected as I would say we see our competitors communicate, the inventory reduction is important because when there have been a lot of inventory out in the market, they continue to build the operators, but our competitors have less to do and that leads to a tougher competition in the market for existing volumes. So that's also important. And then I would say if you look at the BID program, I mean, it's so big for the US and US is our largest market. So there you also have a bit of an effect.

Okay, perfect. And then my second question out of three is related to the cost saving program. It was implemented at the end of last year, but hits full effect at the end of Q1, so into Q2, but you've seen a gradual effect during Q1 as well. Would it be feasible to assume that this coupled with seasonality, which typically is supportive of Q2, could support a bit higher margins already in Q2? I realize that the market is tough, but just some flavor there. And also just did you see any negative impact from the earlier Easter? Yeah, thank you.

I would start by saying that the cost reduction program we had, as you say, we will see the full effect from Q2. So it has been gradually implemented. I would say on your topic around seasonality, for the last three years in a strong market, we haven't seen a lot of seasonality effects that we saw, I would say in previous years. There might be a slight effect here of seasonality, but I wouldn't guess that it's too big. And the market continues for fiber solutions to be soft. We expect to have a market which is roughly in line with what we had in Q1. So that's the way I would like to answer the question. Okay,

perfect. Just last question then. On the Ogden plant in Utah, are you able to add some flavor how the project customer pipeline is looking for that plant and also some flavor on how you are ramping up fixed costs related to that plant? Thank you.

First, I would say we maintain that it will be ready for production in Q3 this year. Under the softer market conditions, we will be very careful in taking up too much cost. And I would say it depends very much on how the market is in Q3, Q4, how we ramp that plant up. And on the last part, I would say we see more and more interest from our existing customers in the US for the plant in Western US.

Okay, perfect. Thank you so much. Those were my three questions. I'll hop into the line. Thank you.

Thank you.

The next question comes from Max Bakko from SEB. Please go ahead.

Thank you. Good morning. Three questions from me as well. Starting with on the topic of the cost saving program. It is noted here in the quarter that the number of FDs was actually up by 30 since the end of last year, which is in contrast to what was communicated in the cost saving program. So perhaps if you have any comments on that, starting with that question.

So overall, you know, we have implemented the cost saving program overall with 160. But also it's about that we constantly are looking at the capacity of what we have. So you also have that effect in the end of Q4 where you don't have so much production in the end. And of course, you have more in March. We have also invested in our new focus areas with more head counts. That's the reason. But the cost saving program is implemented.

Perfect. And the next one on the cash flow, which was really strong here in the quarter, you mentioned in the report that the Easter and the timing of the Easter had an impact on the cash flow with the timing. Would you say that it was a net positive or net negative effect, the timing of the Easter on the cash flow? I

would say there will be a wash between the accounts receivable and accounts payable.

Okay, so net neutral.

Yes, so net neutral of the delay. So the positive 67 is

there.

And finally, the last question. I mean, of course, the B program a bit delayed now. But have you made any progress on local production of fiber optic cables in the US? Do you have anything to add there?

It's still an ongoing project that we are evaluating different options how to do it. Okay,

but if it's still going to be in place during this year ahead of the B program taking

effect, would you say?

You know,

depending on which alternative we do, it would be a different timeline. But if I say like this, when we talk about our fiber to the home business, the system saved in the US, the big, big majority of our customers, they will not go after BID programs, of the BID funded programs, they are primarily building in more densely populated areas. So the big effect for us when it comes to BID, that will be for blue diamond industries. Then what we have said before is that, of course, we would like to be able to participate in BID funded projects also on the FDTH side. And that's why we are evaluating this.

Okay, perfect.

Thank you.

I'll get back in the line.

The next question comes from Adrian Jelani from ABG Sundal Koliya. Please go ahead.

Yes, hello. I'd like to start off with a question regarding the subsidy package for fiber in Germany. I recall last quarter, there were some bureaucratic issues with the money actually reaching the market. Can you just give us an update on what the status is on that at the moment and how big of an effect that is for you in Germany?

We see that those projects have started to come out. So it will have a gradual increase effect on the market, which is good. Then, as I said before, the majority of the investments in the German market and all markets will be from the existing operators and these new entrants of private equity. The more important effect is that they start to invest more.

Okay. And then for my second one on the different focus areas. First of all, I appreciate the added nuance for each area. But can you also, I guess, talk a bit about how the margins differ between fiber harsh environments and data centers in a more normalized market environment, not perhaps at the moment?

I would say we don't disclose that. But I think we have mentioned before when we did the acquisitions, because it has been an acquisition driven growth to a large extent, that the profitability of those companies have been in the range of our financial targets.

Okay. And just to be clear, not at risk of using my third question on a follow up, not your financial targets at the time, but your current one of 15 to 17 percent.

Exactly.

Okay. Perfect. And if I can get away with the third one, then. Has there been some accelerating price pressure in Q1? And what is your outlook on prices during the year if the market does remain weak?

No, I think we have seen as we wrote an increased price pressure in most markets, and we expect in the softer market that the price pressure will remain.

Okay. Perfect. In that case, thank you. And thanks for allowing me to ask three and a half questions.

The next question comes from Frederick Nilsson from Redeye. Please go ahead.

Hi. Thank you. Most of my questions have been answered, so I will stick to one actually. I mean, could you elaborate a bit on the development in your FFTH within North America? It seems like you do almost in line with the strong quarter last year. I mean, could you tell us a bit about the market share and your presence in the market? Are you seeing that the interest for your solution is growing even in those tougher times?

Yes, I would say from a market share perspective, I think I've said this before that we have a very small market share, but I think we are growing from small figures. I would say we see more and more interest from our solution. So that's a good sign. And we expect to have a continued good development of the fiber to the home business in the US going forward.

Okay, that's all for me. Thank you very much.

Thank you.

The next question comes from Stefan Wart from Pareto Securities. Please go ahead.

Hello. I'd like to ask some questions about the sales development in Europe and in North America. It's a tiny sequential decline, but I mean, if we start with Europe, it looks like it's around 800 million, which also could be argued to have been close to the run rate in most of the quarters in 2022. The guidance that you are giving now with the potential recovery late in the quarter, is this a good level to assume for the quarters going forward that it will be around 800 million or do you see potential for an increase there?

You know, we don't provide guidance on that. I just want to refer that, you know, the softness in the market we saw in Q4 and we saw in Q1, we expect that kind of soft market to remain in the coming quarters. And then you have to draw your own conclusions from that.

Yeah, but there's a difference between softness and decline or deterioration. And what I'm after here is some color on if the market is deteriorating, if you see that it is falling, or if it is stable. I would hope to get some clarity on that because it would be helpful for investors, I believe.

I would say what we saw in Q1 in terms of market, we expect to see that same of market level demand in the coming quarters. Then I think what you saw, if you read the Q4 report versus the Q1 report now, we talked quite a lot about the German market in Q4. And here we also added the UK market that we saw was softer.

That's true. And I tried to involve the US in this question as well. I mean, there's a tiny sequential decline. It's on par basically with the Q3 revenue level that you've seen there. When I look at sort of industry metrics, it looks like which actually correlated or followed the overall market decline very well last year. And they indicate that we saw sort of a recovery on a month by month basis in the first quarter. There's nothing you can comment on if market has, I mean, they're soft, but is it downwards or slightly upwards? Is there any change or can you say that or anything on the inventory correction? My perception would be that it looks like the inventory correction is mostly over in the US. Could you give some comment on any of that? The

same there that our view on the US market is that it will be on the same kind of demand level as we saw in Q1. I think I mentioned the inventory correction that primarily affects our competitors that are much bigger also. I think we start to hear that it's starting to normalize. I mean, a lot of the information we get, we also get from our competitors quarterly reports. We have not seen any of them yet. So they are following in next week. So it will be interesting to see what they say about the inventory correction. But I would say the market continued to be soft coming quarters. That's our expectation. But if you look at it last year when competitors declined their revenues in fiber solutions quite a lot, we kept quite stable or even grew a bit last year. And this is due to more and more interest in our solution, which is very flexible and cost efficient. So that work will continue.

Perfect. Thanks. Given this outlook, do you have any, what can we expect in terms of mix a couple of years from now? If it comes to, you have this 70-30 or -15% mix between fiber harsh and data. Could you, what do you see a couple of years ahead? How will this mix evolve? What do you think?

Okay, thank you.

The final question is on the potential for additional work in capital release. Given that you're not expected to grow anything this year, do you think that you can trim the balance sheet further or is that work mostly done?

We are continuing to work on our inventory overall. So that will not stop that work overall. Okay, thank you.

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

I think we had a couple of written questions, but they have been answered in our opinion in the oral questions we had. So I would like to thank you for your interest listening in and hope to hear you or you hear us in Q2. And that's the 16th of July. Thank you very much.