Inwido AB (publ)

Good morning everyone and welcome to this webcast and telephone conference covering InVido's third quarter and nine-month -to-date performance in 2024. My name is Fredrik Möller, President and CEO of InVido and joining me on today's call here in Stockholm is Peter Villene, our Group CFO. You know the drill by now, the structure of this call is that I will start with a run-through of where our group is finding itself right now, our latest achievements and financials. And then Peter will provide an educational deep dive into the financials at both group and business area level. To pay close attention to this and as usual, this presentation material is already available on InVido's website. At InVido, we are on a mission, an exciting growth journey towards becoming a 20 billion SEC turnover company by year 2030. Through our 35 business units and across 12 countries, our employees are making good progress on that journey and it will be further boosted by the EU's green transition as well as by synergistic acquisitions. We are de facto Europe's leading window group with particular strongholds in the Nordics and in the UK. This year, we celebrate 20 years as a group, 10 years as publicly listed on NASDAQ Stockholm and Elise Fenster are marking their centenary. So we're obviously in it for the long haul. Importantly, we are not just producing high quality windows and doors, we also improve people's quality of life through our energy efficient and aesthetically appealing solutions. Now let's look at the quarter that just passed and I'm proud and pleased to announce that our profitable growth has continued also across July through September. Both our order intake and order backlog continue to grow for the second consecutive quarter. Despite our invoicing being slightly down quarter on quarter, InVido's operating EBITDA than Q3 last year as a result of increasing efficiencies originating from our investments made in people and in operations. Importantly, our endless efforts to cater for the well-being of our co-workers are continuing to bear fruit in the form of further improved figures within both health and safety and sick leave. While leading market indicators are gradually becoming more positive, primarily within consumer related segments in Denmark and Sweden, we as a group are not yet out of the doldrums. In fact, several entities in Finland, England and Norway still face a tough market, substantial competition and related price pressure. In light of this, however, InVido's business units handle the situation in an impressive fashion, delivering on their customer promises and being perceived as a flight to safety when some peers struggle, thereby gaining market share. On this slide, we summarize our key financials for Q3 this year relative to Q3 2023. Order intake grew by 3%, also organically, and order backlog reached an impressive 2.6 billion SEC up by 9%. Net sales in turn declined by 3% quarter on quarter, organically the decline was 1%, reflecting the harsher conditions witnessed this year. In spite of this, our operating EBITDA reached 304 million SEC, a tiny 4 million SEC down versus last year, but equaling a margin of .4% up from .2% in 2023. All business areas fared better with the exception of Eastern Europe. Net debt in relation to operating EBITDA went up from 1.1 times last year to 1.2 times now, or 0.9 if not applying IFRS 16 accounting. Accordingly, safely within our set targets and still offering ample room for, for example, acquisitions. All of our business areas performed well this quarter, particularly considering their different operating contexts. Scandinavia keeps delivering strong profit margins, leveraging its leading positions and enjoying a favorable mix. Within consumer, i.e. renovation, Denmark is rather stable and Sweden is showing signs of recovery, but Norway remains soft and so does Newbilt across all three countries. Eastern Europe in turn bucked its sharp demand drop in Newbilt by enhancing the efficiency of its operations. Both order intake and backlog grew nicely compared to Q3 last year. Business area e-commerce goes from strength to strength, now growing both top and bottom line and taking some strategically important marketing measures that will pay dividends further down the line. Last but not least, Western Europe's strong results now came from a broader base than last quarter, where all larger entities performed well alongside Saidi and Carlsen while still experiencing a tough market climate. If we stay with Western Europe, I'm very pleased to announce that Jonna Orffitz has now been made permanent in her EVP role for this BA, in addition to her responsibility as Head of Communications. So well done, Jonna, big congrats. Other examples of matters worth celebrating this quarter of course include our exciting acquisition of Finland based sun protection supplier Arctic Kaidin, as well as our continued investments in sustainability. Listen to this. In our Sokolka factory in Poland, our new paint line will from now on save us some 23,000 litres of paint on an annual basis. How about that in terms of making a concrete positive difference to the climate? Time flies when you're having fun. And since we are already in the month of October, and since lots of achievements have been recorded across Inbido during the first nine months of this year, it is worth taking stock of what some of those strategic milestones are. The first edition of myself and Michael Johnson to our group for a strong group management team and board of directors respectively is of course highly pleasing, he says humbly. The fact that we have developed and launched innovative and sustainable new products like the CO2 window in Finland recently or Elite Functions Energy Efficient 100 series or Diplomats collaboration with Yale on smart doors is so important for organic growth and for solidifying our leading market position. The Arctic Kaidin acquisition also sends a strong signal that we are back on the M&A track. And while others have stepped on the brakes, we have done the opposite, investing further into operations and sustainability to come out from the cycle downturn even stronger. Getting our climate goals validated by the SPTI is yet another proof of us doing the right things. At the end of the day though, I'm most impressed by how we handle the sharp drop in demand in such an agile fashion without destroying either our short-term capacity or our long-term competitiveness. Those of you following us closely have of course registered that the Invidia's performance has improved stepwise so far this year. Q1 was still severely hampered by low market demand but in Q2 we started growing our order intake again. And even more importantly, that pattern has continued also now in Q3 despite sentiment out there not being back where it should be. Do note that our profitability has remained rather high throughout all three quarters. I'm very pleased about that. In short, our nine-month figures comprise an organic net sales decline of 10% and an operating EBITDA margin of 10.2%, down from .0% in the same period last year. Return on operating capital has been .1% compared to .2% in 2023. And the negative delta in earnings per share before dilution from 8.52 sec last year to 6.12 is largely related to items affecting comparability and to positive currency effects in last year's financial net as per our Q2 communication. Now, before I hand over to Peter, let me just briefly share with you a highly positive personal EBITDA experience. This summer I replaced old windows and doors with new elite foster ones at my house on the island of Öland in the Baltic Sea. Yes, I'm biased and yes, I bought them prior to joining the company and yes, it's a big investment but still, the seamless process in which our -in-time delivery and top-notch quality is worth a lot in this business and above all, the fantastic impact this type of renovation has on your quality of life is just mind-boggling. It goes far beyond quote-unquote just windows and doors. Peter, over to you. Please go ahead.

Thank you so much, Föderik. And we start with the income statement. On this page, we can see the income statement for Q3 to the left this year as well as last year. In the middle, we can see the development January to September and then further to the right, we can see the latest 12 months as well as full year last year. Starting with the quarter, sales was down by 3%. The organic sales decline is 1% compared to last year. The gross margin has been improved from 26.7 to 27.1 due to mixed but also positive development when it comes to pricing as well as sourcing as well as improved efficiency. The operating EBITDA as well as the operating EBITA has declined by 1% compared to last year and the operating EBITDA margin has improved from .2% to 13.4%. Looking further down the income statement, we can see that profit after tax as well as share was minus 1% compared to last year. Looking development January to September, sales have declined by 4%. Organically, sales have declined by 10% equal to 728 million lower sales compared to last year. The gross margin is likely down compared to last year due to the performance in Q1 and beginning of Q2. Operating EBITDA is down by 7% compared to last year and the operating EBITDA is down by 11% compared to last year. Operating EBITDA margin has declined from 11% to .2% and the main reason is the lower sales, the organic sales of 728 million mainly from Q1. Further down the income statement, we can see that profit after tax is 25% lower than last year and the earnings per share is 28% below last year. That gives us a rolling of the latest 12 month development of sales of 8.7 billion and operating EBITDA of 947 million equals .9% units and the earnings per share of 9.32 per share. On this page, we are describing how we calculate organic growth. We do it somewhat differently compared to some other companies. What we do is we recalculate last year. If we start with Q3 in 2023, we had a sales of 2.339 billion and then we add on last year sales, the acquisitions. This is mainly in an article required in September. We add on 8 million because that was their sales last year in Q3 in September. Then we had a performer for Q3 of 2.347 billion and then we recalculate the performer with the currency as of today, meaning sales declined by 2% or minus 46 million and then we compare it to the sales developed as of today, showing an organic sales decline of 1% or 29 million per inch grams. This page is showing a waterfall showing the sales development of Q3 in 2017. We have sales as well as the operating with B, A development for Q3 where we can see the different business areas and their performance. Starting with sales, we can see we have a negative sales development in Scandinavia of minus 46 million as well as Eastern Europe of minus 87 million. Then we have a growth in e-commerce as well as Western Europe and then group-wide elimination from other is more or less the same as last year. Looking at the operating in B, A, it is from 308 to 304 million. In Scandinavia we have a decline of 2 million due to lower sales. Eastern Europe is also declined, 20 million due to lower sales. We lost 15% of sales in Eastern Europe in a quarter. Whereas in e-commerce we have positive development on operating in B, A plus 2 million and in Eastern Europe we have a growth of 60 million. Western Europe is actually life for life growth right now because we acquired a group beginning of Q3 last year. We have the same group this year as last year when we compared the groups. Then group-wide elimination others are exactly the same as last year ending up on operating in B of 304 million. Despite the negative development of Eastern Europe we have been able to improve the margins. The operating in B, A margin for the quarter was 13.4%. This page is showing sales as well as operating in B, A margin for Q3 for the period 2019 until 2024. The margin of this year of 3.4 is above the margin of last year as well as above the margin of Q3 in 2022. It is however below the margins due to the pandemic. We had a really strong margin in Q3 in 2020 as well as 2021. If we look at more historic perspective the margin of this year is also above the pre-pandemic level. Looking at the cash flows, the cash flow from the operating activities was up 2% from 330 million to 335.7 million. Then in NVIDIA it is operating with negative working capital and this is of course very positive, however not when you are declining. Looking at the change in working capital last year we had a positive development of 11.6 million, this year we have a slightly negative development of 3.4 million. Then NVIDIA has also increased the CAPEX level. The CAPEX level for investments in activities excluding change of financial assets and excluding acquisitions is up 20% for Q3 compared to last year. Meaning that cash flows before financial activities is slightly down by 8% when compared to last year. The graph to the right is showing our CAPEX level for the full year 2019 until the rolling 12 months now in September and then also the year to date for last year as well as this year. As you can see we have an increasing CAPEX level during 2023 as well as 2024. Prior to the pandemic NVIDIA had a CAPEX level of about 3%. Then during the pandemic the CAPEX level decreased and now we have to have a bit of a catch up during the low levels between 2020 and 2022 and thereby we have improved the CAPEX level and it is today on .3% for the rolling 12 months. But despite the higher CAPEX level we have been able to reduce our net debt. The net debt was reduced in Q3 compared to Q2 and this is normal for the business. We have a large seasonality and the seasonality has always a positive cash flow generation in Q3 as well as in Q4. So in normal business the net debt is decreasing in Q3. This was not the case last year but that was due to the acquisition of side debt. Excluding side debt the net debt was also reduced in Q3 when compared to Q2. Today the net debt is more or less the same level as last year and if we look at net debt versus EBTA we can see we are today on 1.2 compared to 1.1 last year including RFR 16 and excluding RFR 16 we are on 0.9 compared to 0.8 last year and both of those KPI has been improved when compared to Q2. So NVIDIA has a good headroom compared to the financial target of maximum 2.5. Another financial target of NVIDIA is return on operating capital. There we have a target of 15% and we are today on 13.1%. The development has stabilized compared to the peak in Q4 of 2022 and we have the same return on operating capital in Q3 as we had in Q2. When comparing to the peak in Q4 of 2024 the main reason why we have lower return on operating capital is of course the lower resource. EBTA has decreased during this period and at the same time operating capital has increased due to acquisitions, also due to higher CAPEX level and also somewhat due to working capital because we have a negative working capital and the working capital is then increasing. Looking at the working capital in percent of sales and operating capital is quite stable. So the main reason why we have lower return on capital is the lower volumes and thereby the lower operating EBTA. Talking about volumes, this page is showing the order intake as well as the order backlog. To the left, the graph to the left, we can see the order intake for Q3 for the period 2019 until 2024

and

to the right we can see the order backlog end of September 2019 until 2024. The order take this period is plus 3% in total and when we exclude acquisition it is still plus 3% because acquisition has quite a small impact on order take this year. It's very hard to see the small small line, we can see the figure of 5 million and that is the impact from Arctic and in Q3. The order backlog is plus 9% and if we then exclude acquisition also from the order backlog it's plus 8% when compared to last year and the Arctic has an order backlog of 11 million thereby the figure of 11 on top of the stable for 2024. If we then look at the different business areas, starting with Scandinavia, in Scandinavia we have improved the margin and we have increased the order backlog. Sales is down by 4% to 1 billion 14 million compared to 1 billion 60 last year. Operating in beta margin has been improved from 16% to .5% in the quarter. The order take is plus 2% and the order backlog end of the quarter is plus 18% compared to last year. Eastern Europe is still struggling when it comes to sales, sales is down by 15% compared to last year however we have improved the order take on a weak market. The margin has improved in the quarter compared to the first half of 2024 and it's also above the operating beta margin for Q3 is also above the level of 2021 to 2022. So in a story perspective we are below last year but we are above the level of 2021 and 2022. Sales minus 15% to 473 million, the operating beta margin declined from 12.7 to 10.8 and the order take is plus 11% and the order backlog end of the quarter is also plus 11% compared to last year. E-commerce, in e-commerce we have a higher order take and we have also improved the margins and we have improved the margins despite increased marketing investments for future growth. Sales is plus 7% and increased from 267 to 286. The operating beta margin has been improved from 7.5 to 7.7. The order taken a quarter is plus 16% and the order backlog end of the quarter is plus 5% when compared to September last year. And then we have Western Europe, in Western Europe we have a positive development for all larger business units and the profitable growth continued in the third quarter. Sales is plus 11% from 456 to 506. The operating beta margin has been improved in the quarter from 11.4 to 13.5. The order take however is minus 8% and in Western Europe, especially in Ireland and Scotland, we are working with quite large projects so it depends on when we take these large projects. But nevertheless the order take is minus 8% compared to last year. The order backlog however is plus 4% compared to last year. And now I hand

over back to Fredrik. Thank you very much Peter. This slide adds flavour to where Invedo is finding itself strategically as a group right now and above all what the main building blocks are on our exciting growth journey towards 2030. We foresee a gradual increase in tailwind from external factors starting already in 2025 where EU's Green Deal is a big deal and we are returned to a more normalised demand level in both renovation and new build will make a substantial difference as well. On top of that our own efforts within for example new product development coupled with synergistic acquisitions will definitely be value adding. Combined this new volume shall flow through a more efficient structure ensuring profit margins stay healthy. To recap then in the third quarter Invedo further proved that it can grow profitably even though market conditions are far from optimal. Order intake, order backlog and operating EBITDA margin all improved for the second consecutive quarter. Our position has strengthened through gained market share and the acquisition of Arctic Kaidin. Leading indicators are gradually becoming more positive and EU's Green Deal for energy efficiency is being worked on in all member states. Altogether we remain enthusiastic about what lies ahead. And last but not least 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 on the 11th of December. As always you can find a lot of useful information on our website and via our frequent post on LinkedIn. And now Peter and I will be delighted to answer any of the questions that you may have. Please.

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 Johnny Jinn from SEB. Please go ahead.

Yes. Good morning, Fredrik and Peter. Thank you for taking my question. A couple of questions from my side. Starting with the gross margin. It looks like it's very strong in the quarter and you mentioned some mixed effects here but you also mentioned some price pressure in other markets. So maybe can you break this down a little bit and what drives the gross margin and how we think about the gross margin going forward. That's my first question. Thank you.

Hello, Johnny. We have a mixed development meaning that we have a mixed development of consequence to our sales. We have a high degree of consumer sales compared to industry sales and then we also have mixed development. Some of the most profitable business units have a higher growth compared to other business units. So there is a mixed development. When it comes to pricing and when it comes to sourcing we have been able to hold on the prices. We see some development in consumer prices. We see a bit more up going trend when it comes to some material prices. The material prices went down in 2023 but not at the beginning of this year but then we see it has been stabilized and we see more increasing material prices for the future. Not a big increase but some increases. We have been able to keep our sales prices in general I must say. Of course in some markets where the market has been more negative, where the competition has been a bit harder, there we see a little bit of price decreases. But in general we have been able to keep the sales prices. Then we have been working with our efficiency. We have been during the last year increased our capex level to improve efficiency as well as capacity for future growth. We have then been able to utilize some of these efficiencies in the quarter. That is a total impact of the growth margin.

I understand that is very clear. Going to the segments a little bit here. In Eastern Europe it looks like cost is down materially in the segment. My question here is do you see further room to reduce cost in Finland to so to speak help with profitability or will it require more volumes and drive from the market here to drive margins and profitability from here?

Hi, this is Fredrik. I think it is a relevant question. It is a difficult balancing act. I think all else equal we have done a really good job here in Finland given the circumstances. We see that some of our peers are really struggling. There was actually one competitor that went bust just the other week. Of course we stay close to the situation. Order intake picked up quite nicely in the quarter. That gives us comfort for what comes ahead particularly on the renovation side. But as you know from before we don't want to go down too much in cost level because that will be a huge difference in our confidence and capacity. I think we are rather pleased with where we are right now. Hopefully we can turn it the other way around rather soon.

Okay. In Scandinavia I know it also looks that the margin is very strong and impressive in the quarter here. We talked about the mix here a bit with no consumer but would you say that the backlog has similar profitability as in the quarter in Scandinavia or how should we view the margin going forward?

Once again we mis-limited. What was the question?

The profitability in the backlog in Scandinavia.

Looking at the profitability in Scandinavia there is a little bit of mixed development. We have Denmark going strong. They went strong also in the beginning of this year. Denmark is still strong. In Sweden we see more stabilizations when it comes to consumer markets. Whereas the industry market is still very challenging. Then Norway is also behind Sweden in that sense. Norway is still a challenging market for both consumer and industry sales. We mostly have consumer sales in Norway but still a challenging market for us. We also have a positive mixed impact looking at acute redevelopment when Denmark is going strong which we have a higher margin in Denmark compared to Sweden and also in Norway.

Just to add to that I think also we haven't seen all efficiency improvement projects come to fruition or come to an end yet of course either primarily in Denmark and in Sweden but also in Norway. That will of course add to the margin and add to profitability particularly when we get more volume sometime hopefully in 2025.

Okay and building on that last thing you said there, given the solid margins that you can deliver now in this tough market for the group here, would you say that you have created an even more cost efficient platform from here that can push margins for the group even higher once volume return and that you have created a new higher lowest level so to speak?

Yeah definitely I would agree to that and again we haven't seen all of that come to fruition yet so there's more to come but yes I would say we're doing a great job here across all of our entities really given the circumstances. And that again we talked about it already in the Q2 report where others have stepped on the brakes, we have really stepped up and stepped on the gas pedal and I think it is a sign of strength that we can invest what we de facto have invested but it's not always about the money it's also about project management of these rather large and substantial projects and there I think we've done a great job so yeah it does give me a lot of comfort for what's to come.

Okay and then on M&A's side could you please give a comment here on how the pipeline is developing and if there is something in particular in terms of what's it just that you're looking for and yeah that's my question.

Yeah it is of course as I mentioned several times it is a core part of our core pillar of our strategy since some time and also going forward activity levels within M&A started to pick up in May I would say in the spring and has increased ever since which is a sign of the industry getting back on its feet but also a sign of Evido being very much perceived as an attractive buyer and owner. I was happy to see us taking one deal to the finish line now early September in the form of Arctic Kite in Finland not super large but strategically quite important in a company that we know well and they will add to broadening our offering in terms of some protection in this case. We have a solid both gross list and net list when we look at our pipeline and the funnel that we have. It's very difficult to say when the next transaction will happen but I'm very happy to see that we're able to play football with the team I have in house and the work that we're doing. We're not stressed up about M&A. We have high activity level and it looks good and it's more yeah it could be a catch up effect at some stage where you get a number of deals happening at the same time fine but at the moment it looks rather good and we are typically aiming both for new markets and for deals in existing markets which is also I think a sign of strength and it would of course be nice with something where we get a little bit more bang for the buck so particularly if we go into a new entry into a new geographic market then we would like something bigger to get the strong foothold already from day one.

Okay thank you and just one final one from my side. Can you please comment and say something about October how that has started for you?

No it's a relevant question but I don't think we can do that unfortunately Johnny.

Okay but would you say that the market is so to speak similar and is it talking broader terms?

No big material changes compared to development in Q3.

Okay that

was

all from me I go back in line. Thank you so much for taking my question.

Thank you. Thank you Johnny.

The next question comes from Albin Nordmark from Nordea. Please go ahead.

Yes hello Fredrik and Peter Albin from Nordea here. So I think I can just continue on the last question there regarding M&A. So what geographic markets are the most interesting from here if you are getting into a new one?

Yeah we want to get further down into central Europe typically speaking if we talk about new markets and of course the sentiment across these markets we talk you know France, Germany, Austria, Switzerland but also other parts of what we would refer to as Eastern Europe. The climate and sentiment varies quite a lot but overall we thankfully have solid cases or other attractive cases in basically all of these markets at the moment on top of the ones that we have within jurisdictions that we are already present in. Let's not forget that it's a very fragmented market and I think a good opportunity to try to buy the right ones as well. So there are quite a few cases coming up and quite a few cases that we are working on. The net list I would say is probably 15 plus companies at the moment and that's the net list.

Alright thank you very much and in the report I think the most surprising thing from my side was the modern uplift in Western Europe 200 bits or so. So what does this exactly stem from?

We have a good development on the latest acquisitions in Scotland. There we have improved the margins. But then we have also in a very tough market in England where the market is down. We have made able to gain market shares and we also take some customers from those competitors who went into bankruptcy. And we have then also in total been able to improve the efficiency on some of the larger businesses in England. So even though the market is challenging we have been able to compensate that by taking new customers in and we have then been able to improve efficiency and thereby improve the market.

And are you taking, so the volume is the main driver here?

Volume and improved efficiency.

Alright thank you for that and Jan just on the Finnish acquisition here two months ago. Sun protection solution is somewhat a new area for you. How has the integration been going there and should one expect more acquisitions of sun protection companies?

I think the integration is going well. We know this company fairly well from before. As we state today in the press release roughly 15% of the business is actually already to Invidos since some time back. So in that sense that ensures that we have a bit of a smooth integration here. So yeah definitely potential for cross-selling across our Finnish operations that may be beyond the Finnish border as well. I'm not saying that we specifically look into this character when we look at the additional investments or additional acquisitions further down the line. But it is an interesting one where we see an increased demand of this combo of sun protection and windows. As the windows typically get larger in size you have more light inflow and together with some climate changes of course you need to protect your houses more from the sun than from the heat. So I think this is an interesting one.

And lastly you made some comment about some savings of 23,000 liters of paint or something similar. So apart from the obvious climate reasons how is the financial return on these kinds of investments?

Good I would say. We have a very stringent process for discussing and reviewing and approving investments but also very solid follow up of the bigger ones. But I'm pleased to note that sustainability is one key topic item that we're looking for when we talk about the major investments. This particular example I think is one good example out of very many that we perhaps should make even more noise about going forward because there is a lot going on. And of course 23,000 liters of paint is a big deal both financially and environmentally and improves the workplace for our coworkers as well. So yeah it is an important factor that we take into account when we look at bigger investments.

But can you say anything about the payback time?

Difficult to say Albin. It's typically good payback time on I'd say three or four years perhaps is something that we're typically looking at.

Alright thank you. In

the current state of market it's rather difficult to find a normalized volume level that of course as you know affects the payback time rather dramatically. So yeah it's a bit of a wet finger in the air at the moment. But the good news is at the same time that we're really in it for the long run together with the board of directors and we have very good discussions around this in both the group management team setting and in the board of directors setting.

Alright understood. Thank you that's all for me. Very helpful.

Thank you Albin.

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

Okay thank you that. We have received one question and that is from Axxet in the West where they asked our definitions on the order intake and order backlog. They are saying that on page eight in our report they're saying that the order intake is down by eight percent for Western Europe whereas the order backlog is plus four percent and they asked us to explain the difference between the order intake and the order backlog. The order intake that means in the quarter new orders in the quarter compared to new orders in the quarter last year and that is a down by eight percent. The order backlog or in Sweden it's called order stock is plus four percent. That means that the total amount of orders end of September which has not been invoiced compared to the total number of orders or not the number of orders compared to last year per end of September. So the order intake that it means new orders coming in the order backlog that means the total value of all orders that we have that has not been invoiced end of September compared to end of September last year and that was plus four percent. We don't have any further questions so we hereby close this meeting. Yeah, thank you very much Peter

and thanks everyone for attending. That's it from Peter and myself. Take care out there. Goodbye.