Inwido AB (publ)

Good morning and welcome to this webcast and telephone conference covering InVido's second quarter and half year performance in 2024. My name is Fredrik Möller and since the 10th of April this year, I'm the president and CEO of InVido. Joining me today here in our Malmö head office is also Peter Wellin, our group's CFO. Over the past three months, I've had an intense but fun and promising onboarding to our group, including visits to many of our sites in Sweden, Norway, Finland, Denmark, Poland, England and Scotland. I've met with a lot of our co-workers and I certainly know more about the window and door business now than I did before. Above all, I can conclude that InVido is in a good place. It is well functioning, professional in all aspects. Our current activity level is high and I notice a lot of smiles on people's faces, which bodes well for what's to come. While many of you are of course familiar with InVido, it may be worth reiterating that our 34 business units comprise what is de facto Europe's leading window group. The strongholds are in the Nordic region plus the UK and Ireland, but we actually cover 12 European countries in total. Our rolling 12 month turnover equals 8.8 billion SEC with return on operating capital of 13.1%. Furthermore, we're not just producing high quality windows and doors. We also improve people's indoor life through our energy efficient and aesthetically appealing solutions. We are on an exciting journey towards doubling the size of the company by year 2030. I find it achievable as there are still many profitable growth opportunities for us to pursue and based on my impressions from these first three months, I dare to say that we have only scratched the surface yet. We enjoy a strong value proposition for the years to come and our proven performance track record gives us comfort and credibility. Me and my management team are in the process of clarifying our vital few strategic priorities, as well as determining how we can speed up their execution a bit. In short, it's about realizing organic and acquisitive growth options while getting that volume flowing through a more efficient setup, harvesting on recent investments made in our people and in our operations. Let me now turn your attention to the quarter that just passed. I'm proud to report that we as a group are back on a positive growth trajectory with order intaking increasing across all of our four business areas. Our order backlog went up by an impressive 68%, largely driven by our side acquisition and an uptick in consumer sentiment, in turn boosted by lower inflation and interest rates. It was particularly pleasing to note our performance leap within e-commerce, more than doubling its profitability and within Western Europe, where our Irish entity Carlson booked in Vito's largest order to date. All of this gives us cautious optimism for the second half of the year. Still, I of course remain humble over the fact that uncertainty still prevails in the marketplace, particularly given the continued low new build activity hampering industry and project related demand overall, particularly in Sweden and in Finland. With regards to acquisitions, which form an important growth driver for us, we have noted a higher activity level in Q2 and can conclude that our target funnel is healthy. Last but not least, the green transition is definitely gaining momentum and here in Vito is getting quite a lot of positive recognition for both our positioning and our efforts. If we then look at the quarterly figures, order intake grew by 22% and by 10% organically relative last year's Q2. Our order backlog's increase of an impressive 68% of course includes last year's acquisition of CIDA Group, but even if adjusted for this, it grew by 10%. Net sales were up 3% quarter on quarter, but declined organically by 5%. I can conclude that several entities have gained market share during spring, in most cases with maintained margins. Our operating EBITDA reached 263 million SECs, equaling a margin of 11.4%, up from 261 million SECs, but down from .6% respectively. Net debt in relation to operating EBITDA went up from 0.7 times last year to 1.4 times now, or 1.1 if not applying IFRS 16 accounting. Still safely within our set target though. As usual, certain achievements are worth celebrating a bit extra and this quarter is no exception. First, I'm very pleased about our healthy progress within e-commerce. Displaying strong growth in top line and translating that to appropriate more than twice the size of where it was one year ago. So well done, Boo and team. Secondly, our long standing efforts and our favorable position within sustainability are getting more external recognition. Here exemplified by Financial Times listing of InVido as one of Europe's top 500 climate leaders. And by TMF, the Swedish Wood and Furniture Manufacturers Association, handing its NOVA award to our lead transfer entity for their innovative work on total window recycling. And this is also worth highlighting, of course, our Ireland based entity Carlson, which joined InVido already in 2006, booked a record high order in the quarter worth around 9 million euros and spanning over a timeline of almost two years from now. This is a sign of trust from our customers and of Carlson being perceived as the clear leader in its field. Congratulations are definitely in order for Michael and his team. As you know, sustainability is high on both our management and board agendas and it is gradually becoming a part of our company DNA. Visiting our sites recently, I noted with satisfaction of particular efforts within work safety. While our vision for lost time accidents is zero, our trend line continues to slope downward, which is very, very positive. Some of the patterns seen and communicated already in the first quarter have also been present in Q2. In terms of challenges, I'm again thinking primarily of the soft market for new build, what we typically refer to as industry or projects. In the case of Sweden and Finland, activities still at historically low levels here. Accordingly, this has hampered our performance for the full six month period, causing net sales to decline by 13% organically relative to the same period last year and our operating EBITDA margin to decline from .9% to 8.5%. The negative delta in earnings per share from 5.26 Krona last year to 2.89 in the first half of 2024 is largely related to items affecting comparability and to positive currency effects in last year's financial net. Now it's time to dig deeper into our consolidated Q2 numbers as well as our business area performance and I therefore hand over to you, Peter. Please go ahead.

Thank you so much, Fredrik. We start with this page. This page is then showing the income statement. To the left, you can see the Q2. In the middle, you can see the yesterdays and to the right, you can see the rolling 12 months as well as last year. Starting with the Q2, net sales is up by 3% compared to last year. Organically, it's down by 5%. Gross profit is slightly down, minus 1% and the gross margin went from 26.7 in the quarter to .6% this year. However, Invida has taken some restructuring costs in the quarter of about 23 million krona related to the one factory project in Vetlanda and also due to write downs of inventories. Thereby, the gross profit has been impacted negatively by these two restructuring costs. Excluding these restructuring costs, the gross margin was more or less the same as last year. Operating in EBTA was up 3% and the margin was the same as last year, 14.8%. Operating in Beta is up by 1% compared to last year, meaning the margin went from 11.6 to 11.3. I will come back more to when it comes to operating in Beta margin. The Beta was down from 222 million last year to 240 million. The restructuring costs then impacted to this 23 million. That's the difference between operating in Beta and the Beta. Further down in the income statement, we can see that profit after tax is down by 22%. Invida had also last year, in Q2 last year, a positive currency impact in the financial net. So when comparing the financial net compared to last year, we had a positive impact last year and that thereby lower result this year. So profit after tax as well as earnings by share was then negatively impacted by the restructuring costs of this year and when compared to last year, we had a positive currency impact. Thereby, lower earnings by share even though operating in Beta was more or less the same than last year. Looking at the yesterday's Q1 plus Q2, sales is down by 5% and operating in Beta is down by 18% from 430 to 354 due to the performance in Q1. The more normal Q1, I would like to say, compared to previous years where we had a positive COVID impact in Q1 and the margin has declined from 9.9 to 8.5. Earnings per share is down from 527 to 289. Rolling 12 months or later 12 months, sales is about 8.8 billion, operating in Beta is 10.9 and the earnings per share is 935. This page is showing the development and the calculation of organic growth. We do it a little bit differently compared to other companies because we change the history in that sense, we make a performer. So starting to the left, sales last year was 2.263 billion. Then we add on the acquisitions, their sales that they had in Q2 last year, meaning Saidi had a sales in Q2 last year of 196 million. Meaning we went on a performer from 2.263 billion to 2.459 billion. The acquisition gave us 9%. Then we recalculate the performer with the currency of this year and now this year is quite small impact, only plus 1 million and the percentage is more or less the same. Then we compare the performer last year with the effects of this year compared to the sales in this year and then we have the decline of 5%. Organically then minus 5% meaning minus 128 million. The total sales is plus 3%, organically it's minus 5% when comparing to a performer last year adjusted with a currency of this year. Then start with the business area, we go starting with Scandinavia. Scandinavia continues to be impacted by low volumes in the new built market especially in Sweden. Whereas the Danish business units benefit from increased activity in the consumer market. Sales is down by 7% to ,000,000. Operating in beta margin was more or less the same as last year, .2% this year compared to .3% last year. The order take was improved by 4% and the order backlog end of the quarter is plus 6%. To the left, to the right you can see in the graph you can see the development, the rolling 12 months sales as well as the rolling 12 month operating in beta margin. As you can see the peak was in Q4 2022 and the sales is now rolling 12 months 21% behind the sales in Q4 2022. The margin has even though despite the sales decline been quite stable. If we then go over to Eastern Europe, Eastern Europe continues to be challenging markets especially the Finnish market. Finland is hampered by the strong volume decline in the new built segment and we have taken actions. However, we have not been able to keep the operating beta margin but the decline in Q2 this year was minus 22% in sales. It went from 569 million to 441 million. The operating beta margin went from 13% to 5.5%. The order take in the quarter was however positive plus 2% compared to last year and the backlog is more or less the same as last year minus 4%. You can see the same graph to the right showing the development from Q2 to 2022, the sales later 12 months as well as the operating beta margin later 12 months. As you can see compared to the peak in Q1 2023 sales is now 29% lower compared to Q1 2023 and the margin has declined the latest two quarters. Next one is e-commerce. E-commerce has a positive development. We have increased the market share and we have substantial profit growth. There is a continuous of a pot development in all markets when it comes to e-commerce sales. April was actually the all-time high monthly order take for e-commerce. In the quarter sales is plus 50% from 271 million to 311 million. The operating beta margin has been improved from .9% to .8% meaning the operating beta in the quarter was plus 220%. The order take is plus 60% in the quarter and the backlog end of the quarter is minus 6%. Here you can see that to the right same development and same graph showing development in Q2 2022. Sales have started to increase and the margin has started to increase as well. We have a positive development in the latest two quarters when it comes to operating a beta margin. Going over to Western Europe. In Western Europe we have a positive order take and we have improved profitability. We have continued profit growth in the second quarter both organically as well as acquired. In England we have gained new customers since some of our competitors have gone bankruptcy. In Scotland, we continue to have a good development and we have also good development in Ireland. In our business unit, Carlson. In the quarter sales is plus 108% from 227 million to 471 million. The operating beta margin has been improved from 6.8 to 11.4 and the order intake is plus 169 million. Of course, possibly impacted by side acquisition as well as the largest order ever for a leader taken by Carlson in Ireland as Fredrik mentioned. And the order backlog is plus 480% and here Saidi has a different business model with large order backlog compared to the rest of the group and thereby we have a high growth in the concept order backlog. This page is showing the sales development as well as operating a beta development from Q2 2022 to Q2 2024. Starting with sales, we can see we have lower sales and decline since it's Scandinavia, Eastern Europe where we have growth in e-commerce and in Western Europe. And looking at the data, we can say that we have declined in Scandinavia by 12 million. Eastern Europe was down by 49 million. However, e-commerce has improved the result by 23 million and Western Europe has improved the result by 38 million. The reason why we are lower operating beta margin this quarter went from 11.6 to 11.3 is due to development of Eastern Europe where sales declined by 22%. Scandinavia, their margin was more or less the same as last year and we have higher margin or improved margin in e-commerce as well as Western Europe. And when comparing the margin compared to previous years, Q2 previous year, we can see the margin this year is more or less the same as it was pre-pandemic or even higher than pre the pre the pandemic. Vido had a really high margin in Q2 2021 due to the pandemic especially due to the performance of e-commerce. So the margin this year is slightly down compared to last year from 11.6 to 11.3 once again due to Eastern Europe meaning due to Finland and the margin for a total group is more or less what was pre-pandemic. Looking at the cash flows, the cash flow excluding acquisitions of subsidiaries is more or less the same as last year minus 2%. Cash flow from operating activities is minus 2%. Then we have a positive deviation when it comes to changes in working capital. Minor adjustments when it comes to inventory, we have a positive cash flows from operating liabilities and negative from operating receivables and a total impact of plus 8% compared to last year. These changes in operating capital has then compensated the higher capex in the quarter. CapEx in the quarter is plus 22% compared to last year. To the graph to the right you can see the development when it comes to capex since 2019. Before 2019 the normal capex level of was 3% to 3.5%. Then during the COVID time the capex was reduced due to different circumstances. Now in 2023 as well as the beginning of this year the capex level has increased and we are today in a rolling 12 month level on 4.1. We must compensate the lower capex that we did during COVID. Instead of being on 3% to .5% we should be between .5% and 4% the coming year. With a strong cash flow in the quarter more than same as last year the net depth is more than the same in Q2 as it was in Q1 meaning the cash flows generated in Q2 has compensated the dividend payment that we did in May Q2 this year. The net depth is more than same as in Q2 and net depth in relation to EBTA is today 1.4 same as in Q1. There was 0.7 last year when we include IFR 16 excluding IFR 16 net depth with EBTA is 1.1 compared to 0.4 Q2 last year. This page is showing the return operating capital. Return operating capital has declined and is now on .1% compared to the target of 15% still above the pre-pandemic level. The main reason why we have lower return operating capital is a lower EBIT in SAKE compared to one and one half years ago. This page is showing the order in SAKE and the order backlog. To the left you can see the order in SAKE development in Q2 2019 to 2024 and to the right we can see the order backlog from 2019 until 2024 end of Q2. The total order intake was plus 22% excluding acquisitions meaning excluding SIDE is plus 10% and all business areas have higher order intake compared to last year. Scandinavia plus 4%, Eastern Europe plus 2%, e-commerce plus 16% and Western Europe plus 169%. Excluding SIDE and excluding a large order in the cost, Western Europe has still a positive order intake. Then the order backlog is plus 68% compared to last year excluding acquisition is here plus 10% where we have a higher backlog in Scandinavia as well as in Western Europe. Now I hand over back to Fredrik who will make a summary and outlook. Thank you very

much Peter, excellent run through as always. To sum up we can conclude that InVito is back on a growth track. While markets remain uncertain particularly in the new build segment we have grown our order intake across all four business areas. We've raised sales and we've raised profits too and we do see macroeconomic science of consumer sentiment moving in the right direction. This morning's inflation figure in Sweden is one good example of that. The M&A climate is also improving meaning that altogether we are cautiously optimistic about what the second half of the year has in store for us. The green transition is gaining momentum across Europe which is also exciting for the medium to long term. Before we open up for Q&A we would like to make some noise about our upcoming events so please make a note of these in your calendars already now particularly our capital markets day that will take place in Stockholm. As always you can also find a lot of useful information on our webpage and via our frequent posts on LinkedIn. Now Peter and I would be delighted to answer any of the questions that you may have.

If you wish to ask a question please dial pound key five on your telephone keypad to enter the queue. If you wish to withdraw your question please dial pound key six on your telephone keypad. The next question comes from Albin Nordmark from Nordea. Please go ahead.

Hi Peter and Fredrik thank you for taking my questions. So a couple of questions firstly regarding the gross margin which seems to be increasing across three of the four business areas. How should we think about the gross margin looking ahead?

It's a very valid question. Looking ahead we can see that we have been able to keep our sales prices on a good level and we have also been able to reduce the cost in connection to the lower volume that we had in this year Q1 as well as in Q2 because we have a volume decline compared to last year looking at the productions. Then the oil intake is positive so we have been able to keep the sales. We have a positive material impact in Q2 compared to previous years and also compared to Q1. However we see that the material prices is going to be more stabilized and perhaps some materials are going to be slightly up. So in our expectations we see a quite flat development next coming period.

Okay thanks. Within e-commerce can you comment on the margin there? I think you had some 17 percent margin before the pandemic and then you were down really low and now you're getting up again. So what's the normal margin there and also if you can comment on is it just Denmark that's going well there or is any other country picking up?

If you go back to pre-pandemic the margin of the e-commerce business was 10, around between 10 and 12 percent. That was quite a normal business. Then during a pandemic the margin increased quite rapidly because the market increased very quickly and we had limitations on how quick we can increase the capacity. So the way for us to reduce the oil intake was actually to increase sales prices and that had a positive impact on the margin and then we went up to 15, 16, 17 percent during the pandemic. Then we have seen higher competition in the e-commerce business. We have seen last year some new has entered the market and when the market has declined the price competition has been much tougher compared to the level prior pandemic. So we foresee that it will take some years until we can come back to the level that we had pre-pandemic is 10 percent. It will not be done during this year. It will take some years but we are on the right path towards the target of 10 percent in the A-Bit margin. The other question you had was which market we have a positive growth more or less in all markets. So it's not only Denmark. Denmark is the biggest market for e-commerce but we also have positive growth in the other markets and we also entered some new markets during this year.

Can I ask you what market you entered this year?

We entered the Netherlands that was mentioned in Q1 and of course we have other markets to penetrate as well on our action list. At the same time we have quite a lot more to do on a positive note already in the existing markets that we're in. Denmark is of course we're more heavily tilted towards Denmark which is great but we also want to grow the other jurisdictions as well beyond Denmark. So that's also proceeding very nicely.

Great thank you and my last question. Can you comment some overall comments on the M&A market and also specifically is it likely to close any acquisitions during 2024?

Yes as mentioned first of all M&A is important for us as you know if we count backwards from the 2030 ambition of being at twice the size of where we are today we of course need to grow the whole group by a CAGR of 10 to 15 percent per annum and let's say roughly half of that could and should come from acquisitions where we also have a very positive track record. Just looking at PsyD is one excellent example of that. We have noted definitely an uptick in M&A activity as such which I think is a good sign for the outlook of the market and the industry also as such. I think also I think what we and I reflected on already in the Q1 report InVido is quite an attractive buyer. I don't feel that we have really missed out on any major or more attractive opportunities rather there are quite a few coming knocking on our door wanting to be part of the InVido group going forward which is great news of course. So while we had an attractive funnel and an excellent process already in place before Q2 that has been even further solidified and for us it's we're not stressed up about it we want to continue to do the right deals and yeah everyone involved in M&A knows that it sometimes has to take time before we get to the finish line and I'm not in a position to say we will close the deal within the next six months. We're moving forward on a couple of discussions. It's of course also a matter for me to build those important really crucial relationships with senior management and owners of these businesses that we are talking to. I can just conclude and note with pleasure that there's a high activity level here both in the market and within InVido so that's very promising.

Okay thanks a lot that's all for me.

Thank you.

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

Hi Fredrik and Peter and congratulations to a great report Q2. I have a couple of questions so let me first start with the non-recurring items that you recognized during the quarter. Could you give the split between what is related to the restructuring related part and the inventory losses and then also this type of inventory losses. What type of product is it and the reason for this non-recurring item?

Okay the main part is the inventory and the reason for that is that we have some all inventories in the books and we also made some platform changes and thereby we have some all-in sort that we took and then the rest of the part is the restructuring connected to Vetlanda but the main part is the inventory.

All right and should we expect any similar cost recognitions ahead or is

this all? No not when it comes to inventory it's not when it comes to Vetlanda it might be some small as well in Q3 because we cannot take everything at once we have to take it when it comes and that is the cost connected to moving the machine but most of the cost is now taken but minor can be also in Q3.

Okay thank you and you mentioned that the consumer behavior was strong in Denmark. Could you say anything about the consumer behavior in the other regions that you operate in?

Yeah it's I think related to what we actually communicated in the Q1 report Denmark as a country as a market has from the macroeconomic perspective been a little bit ahead of the other Nordic countries and you know with lower inflation and lower interest rates we're beginning to see some of that trickle through to Sweden first of all and then Finland and to some extent Norway are still lagging as mentioned. So in Sweden it's I think weather has been a positive factor I think I speak for all of us that the winter was just miserable and and that has now the spring and early summer has added to people consumers being a bit more buoyant and then inflation being low as witnessed again this morning in Sweden that's that's indicating most likely that interest rates will continue to go down a bit already this year which is typically a positive signal for our market. England is still a bit slow a bit yeah a bit on the softer side.

All right but you mentioned also that it's very strong momentum now in Ireland for example what is the main reason for that would you say and would you say that it's currently very at a very high level a momentum and you should not expect that to continue or is this something that you expect will continue?

The total market in Ireland has been positive and then we have been able to gain some quite large orders and we have also gained some some market shares in Ireland. How the market will develop in the future we still are positive on the on the on the Irish market we don't expect high growth but we still expect that to continue for the next coming periods that the market will be stable.

Okay I think we're if I may add to to that and more of a personal reflection having visited Scotland and England not Ireland but Scotland and England recently it is of course a lot happening in the around the green transition the full evidence I guess that's full action plans have yet to be seen in all jurisdictions but for example in England there is talk about of course the whole market and the standards going from you know single glazing to triple glazing windows more or less overnight and that could happen already next summer so in one year's time. It's just a sign of the momentum now picking up speed the whole the whole transition picking up momentum which is rather exciting of course and where in Vito should be and is in a in a rather favorable position. Okay so that would go that would relate to to the Irish market as well medium to long term.

Okay thank you and you mentioned quite a lot that the order intake was positive but actually if we look at the order backlog year over year it was down in several of the business areas and how would you interpret that is that like more of a negative order intake trend than in the later part of the quarter or how should we view that?

Where we have a negative is the e-commerce market e-commerce business and that order take is order backlog is quite small in that sense it's quite because we only work in the consumer sales with a short order backlog and looking at Finland because we also have a we have a positive in Scandinavia we have a positive in Western Europe even though we take away the side and then we have a negative also then in Eastern Europe but Eastern Europe was a bit differently compared to that that last year backlog of Eastern Europe was quite big. We ended 2023 with a big backlog a large backlog in Eastern Europe in Finland and then we worked from that backlog during the first three quarters for more or less the whole year so when looking at Eastern Europe we are comparing to quite a high backlog.

Okay great and when we talk about Eastern Europe let's see do you have any specific action plan for Eastern Europe to improve the margin within this business area or how do you view to yeah what is your action plan within Eastern Europe would you say?

I think first of all one needs to acknowledge the fact that top line is down by what is the 22 percent that's not something you can compensate for just overnight we've done a great job as always with with Invi though in trying to align the cost base as much as we can but without hampering the future you know in the near to medium term because we do need we do need both blue color and white color employees for the for when the market comes back both from a competence and from a capacity point of view so we have taken measures I'm rather impressed by that we have not destroyed the business because we're in it for the long run yes we continue to have our ears closed to the ground and if we need to adjust more we will do that certainly but we're in a good spot I think we we have fed better than many of our peers to be very honest we have a good mix we have the right team in place and and I'm absolutely certain we will bounce back in not only in Finland but in Eastern Europe as a whole

all right thank you yes sorry

no just just adding one thing yes it's down to the two percent in in Q2 but year to date we are down to three percent this year so it's a quite a massive drop for for Eastern Europe and then especially Finland

yeah and again if you look at new build in Finland you have to go back to the 1940s to find the same low levels in terms of new build yeah we're at extraordinary low levels I think that's worth noting

yeah okay thank you actually I have two more questions if you don't mind one is about the competitive landscape if you can give how you view the competitive landscape at the moment and perhaps in the different geographical regions that you operate in do you see more now price pressure more fierce competition or or is it maybe the opposite lower pressure due to bankruptcies among smaller players what do you

see if we then we have to take a little bit region by region if you stay up with Scandinavia nothing has happened when it comes to there's no some companies have financial problems but there are no companies that are really financial stress and this the material price has gone down during the last quarters and that also mean that also means that the prices have been with gone down in that sense so we see a little bit also some companies are trying to buy volumes at moment so we see in some markets some we see a tendency to lower prices to to buy volumes especially when coming into the product market when we go over to look at UK there is a different situation because in UK three of the largest competitors have gone into bankruptcy during the latest eight nine months and we have gained new customers due to that we have taken some new customers even though the market is still declining in UK in Q2 this year we have increased ourselves because we have gained market shares taking over some new customers

um all right and um let's see that was UK and eastern europe did you have any specific there what did i miss

oh sorry yeah eastern europe and also here we can see a quite tough in some some segments there we also see a price pressure the price has gone down and we have also been a little bit forced in that sense to also reduce the prices on watch

okay all right thank you that was actually all my question thank you so much for all your answers

thank you

so there are no more phone questions at this time so i hand the conference back to the speakers for written questions and any closing comments

okay we have received one question is from hugo mass we have already talked about this but still read it because a little bit more sensitive here and question is would you mind talking about the situation in Finland do you witness some positive signs in a new built activity given all intaking is increasing Q2 should we expect better situations in second half of this year or do you take actions to reduce cost base gear if yes should we see already better a beta margin in second half of this year we talked about Finland the Finland is a tough market the new built market is still very tough and in some way the consumers also the consumers are hesitating and yes we have taking a higher order take in Q2 this year compared to last year in Finland however it doesn't mean that the market has been increased it's more that we gained market shares during this period we should not expect a better beta margin for the next coming quarter because we are still comparing to really good profitability during last year so we still see positive development in Finland and we see a positive signs on our especially on our activity not so much on the market but our performance we see a positive signs but we are still comparing to very strong margins last year in Q3 as well as in Q4 and when it comes to cost reductions yes we have taken down the cost once again the sales is down by 33% in Eastern Europe and we are still making profits smaller profit we are still making profits in Eastern Europe and we have reduced the cost and for us it's a little bit of balance right now because if you feel the higher order take that we have so it's a little bit of balance right now how much cost reduction we can have compared to the market situations and our order take see here then we have some other questions but they have already been answered so no new questions and

we

say

we conclude there and thank you everyone what remains is for Peter and me to wish you all a very nice summer so thank you and take care