Inwido AB (publ)

Good morning and welcome to this webcast and telco covering in videos first quarter performance in 2024. My name is Fredrik Muller and I'm delighted to say that I joined in video as president and CEO on the 10th of April. This is my 10th day in office actually very exciting by my side is Mr. Peter Berlin of a group CFO and deputy CEO and of course someone many of you are already familiar with. Let me start off by stating my appreciation to Peter for a job very well done as acting CEO during this interim phase between my predecessor Henrik Jalmasson and myself. Taking great care of the company together with the rest of my management team and all of our co-workers across Europe. While we in this call will cover the highlights of quarter one in detail it may be worth also taking a quick look at what the InVido today is all about. We are the leading window group in Europe with rolling 12 turnover of 8.7 billion SEC and return on operating capital of 13.7%. We employ some 4200 fantastic individuals across our 34 business units and while the strongholds are in the Nordic region plus the UK and Ireland we actually cover a total of 12 European countries. A lot of the rationale behind my decision to join InVido is listed on this page and I have to say that my early impressions of our company further strengthen my belief in this value proposition. We do enjoy a favorable exposure towards mega trends such as the green transition and a leading market position and proven track record together with our financial muscle enable us to really drive the consolidation within our industry going forward. In addition we have a scalable econ platform that broadens our offering adding value to our customers by making it easy for them to do business with us. Let me now turn your attention to the quarter that just passed it is no surprise to anyone of course that new build activity was very low particularly in Sweden and in Finland. We were affected through substantially lower volumes but despite these challenging market conditions our profitability was solid in fact higher than pre pandemic levels proving the inherent strength of a business model. In an agile fashion we raised efficiency and reduced costs while also deliberately retaining critical competence and capacity in order to be ready for when demand returns. It's not all pitch black on the contrary I would say we're starting to see positive signs on the consumer and renovation market so far most evident in Denmark and within e-commerce. If we look at the figures again in a more normalized and seasonal context where the first quarter is typically the weakest of the four our top line declined by 14% versus previous year. Adjusted for acquisitions net sales declined by 21% our EBITDA profit reached 91 million SEC equaling a margin of .0% down from 168 million SEC and .0% respectively. Sidey our large UK acquisition last summer has added to our order intake and backlog growing by 1% and 41% in total. Organically however the same parameters were minus 9% and minus 13%. Return on operating capital decreased from .6% to .7% and our net debt in relation to EBITDA went up from 0.7 times to 1.4 times. Or 1.1 times if not applying IFRS 16 accounting. Sustainability remains high on our group agenda and we're yet again harvested on previous efforts also this quarter. As shown in our absolute figures relatively speaking some KPIs were naturally hampered when shown as a portion of lower volumes. Seeing our accident and sickly related figures improving brings a big smile to my face as this is very very important to me and to the rest of the group. And so is this after the quarter ended we obtained the formal approval of our climate targets from the science-based target initiative. This is an important milestone for us and a seal of us contributing to a better planet by doing what we do best. Namely developing and launching even more energy efficient products and solutions. One key pillar for a long-term success is innovation and it was therefore extra pleasing to note quite a few product launches throughout Q1. Further solidifying our market leadership and our strategic position towards improved indoor climate and energy efficiency. What better way for Elite Fuenster for example to celebrate its centenary than by launching its best windows ever in the Elite 100 series. And Diplomat Doors they did a collab with Assa Abloy's Yale brand to launch Diplomart. And last but not least Hayom launched a new exciting platform for sliding doors. Now it's time to dig deeper into our Q1 numbers and I therefore hand over to you Peter.

Thank you so much for that Fredrik. I'll start with this page. This page is showing the income statement for Q1. To the left we can see 2024. Then we can see 2023. And to the right we can see the latest 12 months. Sales is down by 14 percent. Organically it's down by 21 percent meaning we have lost 495 million in sales compared to last year pro forma. The gross margin was slightly down from 23.4 percent to 22.5 percent. A decline of 0.9 percent units. Due to the volume decline. Invidia has a large seasonality in the business where the Q1 is the lowest quarter for Invidia. The season starts in Q2. To be able to increase capacity as well as sales in Q2. We must balance the capacity level in Q1 and not reduce the capacity too much to handle the growth in Q2. Thereby in Q1 this year with a sales decline, volume decline, but more than 20 percent. We've not been able to fully compensate and defend the gross margin in the quarter as we did in 2023. Operating beta declined to 91 million compared to 168 million last year. Operating beta margin was 5 percent compared to 8 percent last year. In the quarter this year Invidia had a restructuring cost of 7 million mainly related to the one factory project in Vettelanda in Sweden. The profit of the tax declined from 112 to 28 and the earnings per share from 190 to 0.37. Looking at the latest 12 months sales have declined to 8.7 billion. Invidia has due to the latest 12 months lost more than 20 percent in volume. I said this before I said it in February when I presented the Q4 report. I've been here for 26 years and I've never seen such a decline during my 26 year within this business and that is still valid for the Q1. So we have lost more than 20 percent of sales during the last 12 months and still we can deliver an operating beta margin of 10.9 percent. This page is showing the sales development for Q1 as well as the order intake development for Q1 the year 2019 until 2024. To the left you can see the sales development and to the right we can see the order intake development. We also marked the latest acquisition, Sidey, that is the golden color in the blue stables for 2024. Sales is down by 40 percent compared to last year organically down by 21 percent. If we compare to a performant last year, that means a sales decline of 495 million. We can see growth in e-commerce. E-commerce has been growing by 8 percent. E-commerce is selling only to the consumer markets. Mainly to the renovation markets. We have industry or new built sales in Sweden and we have it in Finland. Sweden is reported under Scandinavia and in Scandinavia we can see a sales decline in the quarter of 25 percent compared to last year. Finland is reported under East and Eastern Europe we can see a sales decline of 44 percent compared to last year. Western Europe we have an increase in sales of 90 percent compared to last year organically is down by 1 percent compared to last year. The order intake development can be seen to the right on this page. The order intake is plus 1 percent compared to last year including Sidey. If we exclude Sidey the order intake is down by 9 percent. Once again, we can see growth within the e-commerce business selling to the consumer market. They have a growth of 12 percent. Scandinavia has the decline of 12 percent. Eastern Europe is down by 26 percent. And in Western Europe, we have a growth of 130 percent, of course impacted by Sidey Group. Excluding Sidey, we still have a positive order intake development compared to last year. Due to the development in Ireland. So the decline of 9 percent excluding Sidey is mainly related to the industry markets, the new built markets. Whereas we can see positive development in the consumer market when it comes to e-commerce. We can also see a positive growth, small growth in Denmark. And we see less decline compared to industry markets in Sweden and in Finland when looking at the consumer sales. This page is showing the order backlog end of each quarter from Q1 2020 until Q1 2024. Once again, we have separated the Sidey because Sidey has a different business model compared to the rest of the group. Sidey, they are selling to the social housing in Scotland and they have a quite a large order backlog compared to the rest of the group. Sidey has an order backlog more or less one year of sales. Whereas the rest of the group, when we're selling to consumer markets, we have order backlog just a couple of weeks ahead of us. The total order backlog compared to last year is plus 41 percent excluding Sidey is down by 13 percent. So the difference excluding Sidey is less now compared to previous quarters. Because in the Q1 sales declined by 21 percent organically whereas the order take was only down by 9 percent. This page is showing operating a beta and operating a beta margin for Q1 from 2019 until 2024. As I said before, Invida has a high seasonality and the Q1 is always the lowest quarter with the lowest profitability. Before the pandemic, the margin was around 3 to 4 percent. On this page you can see that the margin 2019 to 2020 were 3.1 and 3.3 percent. Then during the pandemic, the seasonality was reduced because of the high order take due to autumn. We had a high order take in 2020 to 2022 and that impacted the sales. And the deliveries in the beginning of the year 2021 until 2023. So we had a positive impact, especially for Q1 during the pandemic. And now in 2024, we don't have that impact anymore and the margin has been declined. It's more normal still above the level pre-pandemic. 5 percent this year compared to the level of 3 to 4 percent pre-pandemic and 2019 to 2020 were 3.1 and 3.3. We have a financial target and related return operating capital. Return operating capital is defined as a beta rolling 12 months in percentage of the average operating capital and the average operating capital is the average latest four quarters. The target is 15 percent and due to the lower results, due to the lower volumes, the return operating capital has declined in the quarter. It's now down to 13.7 percent below the target and still above the level pre-pandemic. The operating capital has increased during the last four quarters and the main reason is the acquisition of CIDI in Scotland, which was made in June, July 2023. This page is showing the net depth and the net depth including as well excluding IPA 16 and as well as a net depth in relation to operating EBTA including as well as excluding IPA 16. We have also high seasonality when it comes to our net depth due to the working capital. The working capital is always as low as in December and then it starts to increase in Q1. This also be impacted or the reality for this year. The net depth has increased in Q1 and which is normal for the business. However, the increase this year was a little bit higher compared to last year due to the pandemic. We had a higher and better sales in Q1 last year compared to this year. Still the net depth of EBTA is still giving us a headroom for growth. It was 1.4 including RFR 16 and excluding RFR 16 we are on 1.1 compared to last year we were on 0.7 including RFR 16. If we then look at our different business area starting with Scandinavia. In Scandinavia we have lower volumes in a challenging market especially in the newbit market. We have continued low activity in the market the newbit market in Sweden and as I said before we see an increased demand notice among consumers in Denmark. We defended our gross margin. It was down by .3% units even though sales declined by 24% from 1 billion 73 to 860 million in quarter. Operating in beta went down from 116 down to 60 and the operating beta margin went from 10.8 to 7.4. The order take declined by 12% and the backlog end of the quarter is down by 14% compared to last year. In Eastern Europe we are facing historically low activity in the newbit market in Finland. We have to go back to 1940 to see the same activities. We have taken efficiency measures and we have made cost savings while retaining competence and capacity for the peak season. If we cut down too much in Q1 then we cannot increase sales when the season starts in Q2. Sales is down by 43% compared to last year from 565 million to 321 million. The operating in beta went from a positive of 38 million to a loss of 15 million. The margin went from 6.8 positive to a minus of 4.8. The order take declined by 26% and the backlog end of the quarter is down by 28% compared to last year. In e-commerce we can see a growth and improved margin. E-commerce is selling to the consumer market so we can see a growth in the consumer oriented online sales. Sales is plus 8% in the quarter from 236 million to 255 million. The operating in beta went from 4 million last year to 11 million. The margin went from .5% to 4.2%. The order take is also growing, it's plus 12% and the backlog end of the quarter is more or less the same as last year. The last but not least, Western Europe. In Western Europe we have of course CIDI Group and the CIDI Group has a large impact on the performance of Western Europe. However, CIDI Group has been a good contribution to Invedo and has delivered well despite the challenging market. And CIDI is also less cycle than the other business units and has a good contribution to the results and margins in Q1 for Western Europe. The other business in UK have a effected by low demand and the consumer market. The total sales is plus 90% from 223 million to 424 million. If we compare the sales to a performer last year, sales is down by 1% compared to last year. Operating in beta from 19 million to 43 million. The operating beta margin has been improved from 8.7 to 10.2. The order take is plus 130% in total. Excluding CIDI, we still have positive order take compared to last year, mainly due to the performance of Ireland. And the order backlog end of the quarter is up compared to last year from 230 million to 1 billion, 124 million, mainly due to CIDI. However, excluding CIDI, we still have a higher order backlog end of March compared to last year. I now hand over back to Fredrik to make a short summary and outlook.

Fredrik Hultenberg Thank you Peter. To sum up then we can conclude that indeed those showed resilience in a quarter where markets continue to be challenging, particularly in the new-build sector and in Sweden and Finland. There are definitely positive signs on the horizon in Q1 exemplified by consumers in EECOM and in Denmark and longer term by our positioning towards EU's green transition as well as our opportunity to further grow in Europe organically and via acquisitions. And before we open up for Q&A, we would like to market both our upcoming events, including our AGM in Malmö on May 16, as well as our annual and sustainability reports that are hot off the web. There are lots of resources, lots of useful information in there. And now Peter and I would be delighted to answer any of the questions that you may have. Please.

The next question comes from Rasmus Engberg from Handelsbanken. Please go ahead.

Yes, hi, good morning. Can you hear me?

Yes, hello Rasmus, welcome.

Wonderful, it's always good to ask that when you ask the first question. So, Fredrik, now after 10 days, are you largely happy with what you see or do you think that there are things that you want to do differently or what's your first impressions here?

Yeah, that's a relevant question of course Rasmus. I've had first of all a very warm welcome from everybody. I've had high expectations on the in-video. That was sort of a lot of the rationale for me joining the company, but I must say first impressions are very, very positive. High quality of my group management team, of course, also the board of directors and everybody else in the organization. I like the culture. I like the fact that we are very well positioned strategically with our leading positions, but also to continue to pursue profitable growth across Europe going forward. It's of course a tough, it's been a challenging first quarter, but I think it's been managed really, really well by the company, I must say. So overall, very positive impressions so far, but again, it's 10 days into the office. I mean, I think it's fresh to have actually an outside in perspective coming into the company and someone else looking at the company in a somewhat different way. And I intend of course to first of all visit as many sites as possible and get to know the people, get to know the business as such and in the industry. And then in parallel, try to, I don't know, revise, update the strategy together with my group management team and our board of directors. But I don't foresee any drastic changes. I guess the old saying of if it ain't broken, don't fix it is very valid in this case. Invedo is in a very good place and that makes it easier for me to take it to the next level as well.

Thanks. Thanks. I had some, when you think about the outlook as you look into the gaze into a crystal ball, what do you think about consumer sales? Do you think it's, it could be picking up in the second half of the year or how do you see that playing out?

It's of course, it's literally the million dollar question, isn't it? If I start then, maybe Peter can add on to it. Again, I'm fairly new to this, but it's, we've had a good start to Q2 still. There's a lot of uncertainty out there. There's a lot of psychology, I think. It seems the capital and the overall ambition is there, but a lot of decision makers are sidelined and don't really dare to push the button yet. We've also had a cold winter and of course Easter this year ended up in Q1 rather than Q2, so that has all affected the figures a bit. But again, for me as an outsider, yes, I don't know. I think there's a psychology around again, the interest rates and we see to some extent that in the consumer market in Denmark, which is a little bit ahead of Sweden and Finland so far with lower inflation, lower interest rates and there we have an uptick in demand on the consumer side. So theoretically that could and should happen in the other markets as well, but who knows? It's very, very uncertain market. A new build is to some extent a different ballgame where again at the moment we have been looking at, as Peter mentioned, figures you have to go back to the 90s in Sweden and even the 40s in Finland to look at something similar. So theoretically there should be an overhang in the market where even if we go back to normalized quote unquote levels, that should have a positive impact on demand of course. And I don't know, one scenario could of course be already in a year or two's time where you have substantially higher demand and theoretically almost difficulties in the supply chain to keep up. But again, the business model of Indeedo and the performance track record that we have that we can handle both the upticks and the comfort. Peter, I don't know if you want to add to that.

No, as you're saying, I think the first out is the Danish consumers. There we can see some positive trends and looking at the other markets we are in believe as well as a hope that it can be a turnaround or can reach a bottom in Q2 and beginning of second half of this year. I think Sweden will be first out. It will take a little bit longer time when it comes to Finland and also when it comes to Norway. And then the UK market, the consumer market is still challenging. However, there we have two companies who have gone into bankruptcy in UK and another company also in difficult situations. So there are some opportunities in the UK market even though the market is a little bit negative, we can see some opportunities in the UK market.

And how are your pricing developing and your raw materials in this quarter?

In this quarter the prices have been quite stable and there are some more competition right now, the price competition. We have seen some price decreases on the market. We have been able to more or less keep our sales prices. However, there is a pressure on the sales prices. On the positive side we see some decline when it comes to raw materials. We see that the glass prices have been reduced but of course it is also non-savvy. We also see now that the aluminium prices are going up. But in total we have lower prices right now this year compared to last

year. And just a final question. If we start to see a pick up in say housing starts or new construction, what is the timing until that impacts you?

It depends on the size of the building but normally we are not first in the project but we are not last. We are a little bit in the middle just before the middle. So you start with the ground and then you do the walls and your roof. Then you try to close the building as soon as possible by putting in the windows so you can water secure the building. So we are in the first phase, end of the first phase of the building construction. So if it's construction of one year then we are in months four or five.

Okay, all right. Thank you so much. Thank you.

The next question comes from Sophia Sording from Carnegie. Please go ahead.

Hi, Sophia here from Carnegie. Thank you for taking my questions. So my first question is related to Eastern Europe. Could you give us some more detail on the significant decline in net sales? Could you say that is more due to the lower order backlog per Q4 last year or more related to the actually decline in order intake during the quarter?

Hello Sophia. It's both actually I would like to say but mainly it's due to the lower order backlog that we have end of December. We started the quarter with a low backlog compared to last year and then the order intake is down by 26 percent and that has of course impacted some of the sales in the quarter. Especially the order intake was quite low in the beginning of the year in January and that impacted sales in March. But main impact is of course the backlog end of the quarter and beginning of the quarter that's so much lower.

All right and also you mentioned a little bit about the trend during the quarter. Could you give us some more details on the order intake trend or activity during the quarter in Q1 in the other business areas as well?

So in Eastern Europe it has been it was more negative in the beginning of the quarter compared to last year and a less negative end of the quarter compared to last year. The rest of the group has been January, February was slightly down and then was more down in March compared to last year. Then of course we have to remember looking at March we have also an Easter impact when compared to last year and especially in that impact especially the consumer sales.

All right thank you and I noticed the high margin in Western Europe. Is this something that you expect will be a sustainable margin here and if you could give the main reason for this improvement is it only or mainly a contribution from the Saidi group?

Saidi has a good contribution to the margin improvement. We see some margin improvement in the other business areas as well some is on the way but Saidi is the main contributor and Saidi has a very solid order backlog, has a good order intake and a solid market are doing very well on sustainable for the future as well considering that order backlog is more or less full for this year. Saidi is more talking about 2025 and then 2024 right now.

All right okay and could you give the main reason for the strong demand in Ireland? I didn't get that.

Ireland is a little bit cyclical in that sense that we are in Ireland we are selling both to consumers and 50 percent is to larger projects in Ireland and we just managed to close some larger projects this year we were not able to do in the beginning of last year. So we still see a stable market in Ireland. We don't see any larger increase or decline in market in Ireland and we're just able to take some larger orders this year.

Okay and my last question is about M&A. Could you give us some more details around your pipeline and if you expect to do any closer in the short term or medium term?

First of all I must say again I'm only 10 days into my role here but I'm I'm genuinely impressed by also how we work with M&A. We have a very structured process and I think we have a good reputation in the market meaning that privately held companies private owners are typically coming knocking on our door literally if they are considering some form of divestment. So that means we have a decent funnel I think of potential targets. We are under no stress. We don't have to do deals just like just because of that. We can cherry pick a little bit and I think we have again a positive track record here of finding the right ones and integrating them in a very good way and again PsyD, the large acquisition we did last summer is a very good example of that. It's one of my priorities now to of course be a little bit of a catalyst on the discussions that we have already ongoing. First of all I need to understand the business a bit better to be reasonably intelligent when I have these discussions with potential sellers but it is important for me to join forces with the rest of the team including Peter to build these relationships and make sure that we take the right ones to the finish line sooner rather than later. As everybody knows it's not something you can force either. The process takes its time and that's fine. At the moment of course it's a bit of a disequilibrium in the market in the sense that sellers are typically looking at selling using normalized multiples whereas we as buyers could of course consider somewhat lower multiples in the current market context but at the same time if it's a high quality business that we're looking at then we will pay a high quality price as well of course and I think the model that we have used in the past where we take a majority stake and then work together with the existing owners over time to develop even more value that has been super successful and that is something we can lean against now also for the future deals. So yeah it's difficult to respond specifically to your question Sofia. We have a funnel and we're working hard to close a couple of those cases. Some are smaller, some are bigger and generally of course it will be I think we have produced a solid quarter and we were well positioned to drive consolidation here. There are many other players across Europe that are having much much tougher times than we are. We have the financial muscle and we are voting well in this market context so of course there should theoretically be opportunities coming our way as well over the next few weeks and months so we will work with those of course.

All right okay thank you both.

Thank you

Sofia. As a reminder if you wish to ask a question please dial pound key five on your telephone keypad.

Until we get some more questions on the telephone I will ask I will read some questions that we received through the web to the webpage and the first question is coming from Oscar Britting at Garn Invests and the question is that many of your competitors have declared bankruptcy due to the market climate. Will you see this moment to acquire more companies at fair low value actions and evaluations?

Yeah I can start by responding to that one. I think it's relatively related to the response I gave to Sofia's question just a minute ago. We're typically not looking for companies that are in financial distress. I don't think we have to. Rather we're looking for high quality assets that add to our offering or add to our geographical presence. That's typically what we've been doing in the past. It could be in existing markets but it could also be totally new geographic markets for us. There are still a couple of white spots on the European map for in-vito but theoretically yes there should as I mentioned be cases coming our way that we can at least review and analyze and form an opinion about. Theoretically again multiples should go down a bit. Again we follow the procedures and the processes we have internally and I'm absolutely confident that they will be successful also going forward.

The second question is from LBV assets management and the question is could you provide some color on your aluminium sourcing? How dependent are you on North Kyto? Is Polish based Kytu a relevant supplier? Could you more broadly explain your aluminium sourcing strategy? Is it fully centralized? Do you Of course important for us is an important material but it's not the most important material. The most important material for us is glass. Thereafter comes wood and then comes aluminium. Aluminium as well as many of our larger materials are centralized. We make central procurements when it comes to aluminium. Yes we do hedge dependent from company to company and the we have some hedging and we are dependent on several of our suppliers. I cannot really say if it's related to this Polish supplier and of course it is the aluminium prices have been quite stable. Looking at the last week we can see an increase and that will of course have an impact for us in the future. Next question is coming from Gander Capital in Switzerland. What is your assessment of the operating a beta margin for the future? Is it estimated to be 5% in 2025 like in 2024 or higher or lower? In general we're not guiding any when it comes to operating a beta or the margin for the future. We are today in a .9% operating a beta margin. We have during the five, six quarters and especially the latest four quarters facing a very challenging market with a volume decline of more than 20% and we'll be able to more or less defend our operating beta margin. Now it is today on 10.9%. So nevertheless how the future will look if the market goes up or down we will react and be flexible and adjust to the future market situation.

Yeah just to build on that again we have said many times now that we see a more seasonalized pattern, a more normalized pattern across our business and in that sense also the first quarter is typically the weakest quarter. So I think one should bear that in mind.

The next question is coming from Albin at Nordea. The e-commerce is positive year on year on all numbers and you believe that you are gaining market share. What is the reason behind the belief that you are gaining market shares? What would you say is the normalized full year beta margin for e-commerce and how is the M&A outlook for e-commerce especially? I can take that. Yes we are gaining market shares. We can see on different, we have a different way to calculate and look at our competitors and on their performance and we also see some of the companies have been reported before the report last year as well as the beginning of this year and we can see that we have increased our sales whereas some of the competitors have actually lower sales. So yes we have been able to improve our market shares. The reason for that is I think that in general we are doing well because we own the full value chain. We are not only selling windows on the e-commerce platform, we are also producing the windows. We are also taking care of the logistics. So we have the full value chain when it comes to the e-commerce platforms and thereby we can be more efficient and thereby we can also gain some market shares. When looking at the normalized beta margin, that's a little bit hard and tricky to say. Before the pandemic the margin was around 10 to 12 percent and during the pandemic the margin increased quite rapidly because the market increased quite rapidly and the only way to to lower the order and take was actually to increase prices and that was all over the market. So all competitors, all suppliers and e-commerce gained improved profitability during the pandemic and then after the pandemic there has been quite tough price fights on the market and thereby the margin has been decreased. But it's very hard to say today what is a normalized beta margin. I think it's higher than what we are rolling on today but it will not be the same level as it were during the pandemic. Then we have a question regarding to Ireland and UK. How will you escalate in leaders position in England and Ireland now that so many some of your competitors are going to bankruptcy over there?

Yeah it's something we've touched upon a bit. We know that and we can then thankfully say that we are typically performing better with a bright outlook as well. Again we don't want to pick up assets in financial distress. We will review each potential case on a -by-case basis and sort of take it from there. So it's difficult right now to be more specific than that but of course UK and Ireland are markets that we like long term and that we will look into expanding our footprint further in just as some of the other markets that we are in and not in other parts of Europe.

We can say that we have taken some new customers in UK and there were customers to the companies that went to bankruptcy. So we have increased the number of our customers and thereby also some positive and a constant order take in UK. Then next question is from Handelsbanken, Josefin Johansson. She has two questions. The first question, do you find that clients are aware of new EU requirements on the energy performance and non-residential buildings or is that still not fully understood?

That's a good question. This is a complex material but for us generally very positive material and I think there is always a bit of a need of education here but generally I would say with all due respect for me being very new to this business, generally I have a lot of understanding and in some cases probably a little bit of stress that people are typically rather far away from the targets that have been set and that people need to adhere to. But again for us it's overall good news and we do as best as we can in clarifying our position -a-vis this green transition, creating opportunities for us in many dimensions. So there is an element of education still I would say.

Second question from Josefin is congratulations on the validated science-based targets. What are the key steps to achieve these targets in your opinion?

Yeah it's a great milestone for us and there's a lot of hard work behind this achievement and the bad news I guess is that now is when the work really starts. But first we celebrate this milestone and then we continue out in our 34 business units to continue with training, continue with target setting and continue linking personal and entity objectives to these targets as well. So and we will measure and follow up this on a regular basis. Again there's a very well functioning, I don't know, call it scorecard setup within InVido that I'm already appreciating to see and as you can see many of the numbers that we are producing in Q1 are definitely going in the right direction. So our hard efforts are paying off. This is a huge area. Sustainability as such and many of the sub-components of sustainability are huge areas. So it's a matter of pinpointing the right ones as well to make sure that we get quality and not just quantity in our performance and I think most likely that will be part of the overall strategy revisit as well that we'll do within the group management team over the next couple of months.

The next question is once again from LBV Asset Management. Can you provide some context of any Easter effect in Q1 on demand and how April is shaping up? We have of course an Easter impact and that especially when it comes to the owner-taker consumers has a negative impact looking at Easter and that will then of course have a positive impact when it now comes into April. April we are only three weeks into April and so far you can see some positive signs and some positive development compared to Q1 but still too early to say how the Q2 will be. And then the last question is from Azure. Is there any thoughts of share of buybacks? And we don't have any mandate today and the board has not asked for any mandates at the annual general meeting in May so the answer for that question is no. No share buybacks. Our strategy and our target is to grow the business and to get to the target of 20 billion and 30 and we are going to use our cash for acquisitions. Okay that

was the last question. Well again thank you Peter and thank you everyone for listening in and asking very relevant questions. I hope you got a good response to them so by that we say thank you and goodbye.