I-Tech AB

Hello and welcome to today's webcast presentation where we have iTech presenting the Q1 report for 2024. With us presenting, we have the CEO, Philip Chabain, and CFO, Magnus Henell. If you'd like to ask a question, you can use the form that's located to the right and we'll take it up during the Q&A section. And with that said, please go ahead with your presentation.

Well, thank you everyone for tuning in to iTech's quarterly report, the first one of the year 2024. It is with great pleasure we will run through this presentation together with my CFO, our CFO, Magnus Hanell, and myself, CEO. We will split the presentation, and then we will be ready for questions once we get through the last slide. So by that, let us bring us into the first slide. So for you who may be new into the game, iTech is interface technology. company based on trying to make surfaces smooth and efficient. And in this case, it's about marine ship hull surfaces, so those who are in contact with water, and trying to avoid marine growth attachment to those surfaces. To keep them clean is essential for efficient transport through the sea. And that's where our ingredient technology, Selecto, makes a difference. Our growth has been substantial over the years. We have now more than 20 available customer products using our ingredient technology Selecto. We are part of the product portfolio of nine of the world's biggest, sorry, of six of the world's nine biggest paint companies. And to date, we recognize that the technology is serving somewhere on the whole of more than 2,500 ships. That's still a ways to go knowing that there is 100,000 ships out there, but it's a strong indication that the technology is well received on the market. The total opportunity for those 100 vessels and a whole bunch of small or medium sized or bigger sized yachting vessels are included. We could go to 350 to 500 million dollar as a total turnover figure on select up sales. That's the total maximum. We're listed, as you know, on NASDAQ First North. We are protected through patents, IPR assets, but also regulatory hurdles that needs to be overcome by others. So it's a very protected area. And we're quite few in this industry. We're only seven other biocides, if we categorize them a bit, that actually are available for the paint makers to use. And biocides is part of almost all unfouling coatings sold in the industry today. So it's a small and very condensed industry group we're in. The purpose, as I mentioned, is to enhance the power of the coatings and make sure we lower emissions to air and sea by reducing the friction on ship hull. And in our case, that's all about avoiding barnacle attachments to the whole surface. And that's where our technology is significantly more powerful and sophisticated than many other approaches that have been tested and used in the past. So for this quarter itself, we are proud to present a growth on sales amounting to 38.3 million SEK. That's to compare to 30.8, the same quarter last year. And certainly so, a quite big shift from the fourth quarter last year. So all that is really positive indicating growth this year is here. We are on a steady pathway to a very interesting future. But it also comes with the positive aspects of a strong earning. We display here the EBIT margin being 24% compared to 27%. We'll go into the details of that a bit more later with the help of Magnus. And it all boils down to a strong positive natural salt of 8.6 million to compared to 6.7. So it's nice to see how the natural salt is growing here as the sales are growing as well. And we conclude also that a group of three customers are now engaged in driving this top line. We did have commercial sales to six different customers of the period, but on the more magnitude of side things, it's three that we look on specifically. And that's a welcome contribution. So what brings us to work in the mornings? Well, first of all, it's the product Xelictope's correlation to make marine hull coatings much more efficient and higher performing than what they've been in the past. This is a technology that links into a puzzle of ingredients and other technologies that the paint maker are producing and developing. And altogether, that brings forward that fouling coating that's expected to sustain for the lifetime of the dry docking interval, normally five years. If that works optimally, 100 million tons of CO2 can be saved. And that's in an industry that's responsible for quite a big part of the global CO2 emissions. So it's a high impact if we succeed and certainly if our customers succeed to integrate our technology in the best possible way. But it's not only that. If you dive down and understand the marine ecosystems, you get quickly familiar with the risk of having invasive species or alien species being transported around these different ecosystems. We have had, as most of you probably know, the issues on the ballast water side, which to a very large extent is fixed through technology innovation. Now the next focus is hulls, because if a hull is fouled with whatever organisms, they are constituting a quite high risk to actually bring on and transport species that in some cases may be invasive. So several ports around the world are requiring documentation on how well the hull is maintained, how to try to make a risk evaluation of the fouling condition. Jone Peter Reistadler, Of course, this drives industry, meaning the shipping community into investing in high performing much more reliable at fabric coatings that maybe they had to do in the past, so a negative. Jone Peter Reistadler, Hard for having a family condition will likely result in a non accepted port calls with a lot of extra work and cleaning somewhere out in the ocean, these are the two main factors driving the development of. premium antifouling coatings and they are taking a bigger share of the total market than before. These are the two driving forces. And the third one is trying to optimize material use. And that goes for any industry in any condition, of course, right? Don't use excessive amounts of anything. And in our case, with our super small or minimal amounts of SelectOpe that's used per liter paint, it is a part, it's actually a tool to see if the paint maker can optimize and reduce the amount of chemicals used or biocides in the paint itself. without compromising performance. And there are a few examples of that. That's not the only way forward, but there are a few examples of that. So that's the third trend that may come along, trying to bring down the buy side of loadings to a lower level than what's been used in the past without sacrificing performance in any shape or form. Three good reasons to go to work and three good reasons to speak to you as hopeful investors in iTech. Over the quarter, we have had very exciting news. For us, it's not every day that new customers come on board and certainly not in combination with a new, very broad-spectrum premium anti-fouling coating. Here we are with PPG's new anti-fouling coating called Nexion 810 that is containing Celectope. And that's replacing the previous Nexium products year over year here, although they will probably run in parallel for some time. It's a copper-free, low-bicidal, self-polishing paint with very strong emphasis on better performance, emission reduction, and sustainability, which all goes fully in line with what we hope that our customers will do when they take maximum use of our technology. Again, it's not the only way to use it, but it's one way. So this was a major event for us, although we've been working with PPG for more than 15 years, I think. Finally, things came into place, and here we are with the Nexion 810. We're excited to see what that would bring for us and the industry in the many years that are ahead of this product. So that also brings us into the now almost famous customer charge. As you know, there are only nine customers in this industry, if we focus on the shipping part of it, that make any difference. And if you're going to be really tough on these nine numbers, it's actually boils down to six that are controlling 80% of the global market. So we're expanding that list a bit beyond those six, because there are a few that are really big on a local geographical level. And there's one that are emerging that will probably take much more space moving forward. The interesting thing here is again the launch of PPG, which is a green checkmark, and that is a dry docking product that can also be applied as a new building stage, but it's certainly designed for five-year service. Then we also had adjusted the potential launch column a bit. One thing is that we were a bit optimistic in the test scheme on that final fine-tuning project that was to clarify and approve the product for launch. That was taking a bit longer time, which is not an indication of issues at all. It's just an indication that things takes time in an industry like this, but there's no major changes other than a short delay in time. But on the other hand, there is a new customer showing up on the radar that we have engaged in on licensing agreements and commercial discussions. None of that is complete, but it came much faster than we expected. So we added that as another second blue checkmark because it certainly appears like something is cooking, although I cannot really set a firm timeframe on it. But we believe that within 10 to 18 months, which is quite broad window, there is a chance that these two materializes. Again, be a bit patient on those timelines, but at least it's in the right frame of the development process to believe in that. So both of those blue check marks are products that are either alone going to cover both the dry dock and new building or they're actually more than one product in pipeline which will then cover either new building and or the dry dock. So let's see how that plays out but it's clearly interesting activity ongoing. So that's on the customer side and We also have to show the strong position that Selecto has, in this case at Shigoku Marine Paints, this pioneering customer, also the largest contributor to the top line. When they display some of the products, should be said, at the Sea Japan exhibition in Japan, in Tokyo, not too long ago and this is a picture of how that looks and it's uh of course from an itech perspective extremely encouraging to see how well they attach to the brand how well they take you so the very specific mode of action in our molecule which is a repellent technology in sharp contrast to all other technologies used in the market. So the small dosages, the biological effect that we have, the biotech approach that lies behind the research is now brought forward and used by one of the three biggest paint makers in the world. In this case, Chagokumari Paint. So of course, it's warming for our entrepreneurial team that has been working for this for 15 to 20 years. Let's see that this is now coming through in this way. The final push before I leave to Magnus here to present some financials is the overall industry ambitions pushed by IMO to reduce greenhouse gases. This is a slide you've seen many times before, but it's important to reiterate the fact that 2030 means a milestone. It's associated with the milestone of reducing 40% CO2 per transport work. That's quite a big difference from where the industry is today. So ways to go and more premium antifouling and more other technologies need to come on the board of ships to achieve this. Looking forward, obviously, some sort of energy transition is needed. Fossil fuels will probably move out, at least if we believe the targets of IMO. Already, which is quite near term, if you think about it, 2050, the whole industry is supposed to be net zero, almost net zero greenhouse gas by 2050. And that's a significant undertaking to achieve that. Everybody knows that that's conversion to different fuels, which are much more expensive than today's fuels, meaning efficiency measures need to be fully in place and proven before that step can be taken. Again, that plays in favor for the marine coating industry and hopefully Select Hope continues to play a big part in that transition. But there's also other aspects coming in like the EU emission trade system that's going to actually hit the cost side of any transporter I think next year starting or at least 2026. And then there are different indexes on the ships that are also being measured that may have an impact on financing capabilities. and or charter rates. So many different things are now in place to step by step transform this very important industry for globalization into something that is probably the most sustainable transport sector per ton goods shipped that can be put in place. So that supply chain is important. We really happen to be part of that. Now I leave to Magnus to review financials and some words on production, because that also is part of Magnus' responsibilities. So go ahead, Magnus.

Thank you, Philip. It's very nice after the encouraging talk about the customer development and all the traction we gain from customers to look in a little bit more to the financials and It's very nice to present after the hiccup in the last quarter to present a growth curve on the top line again, where we should be and hopefully will continue to be moving forward. You can also see that on the profit level, the material level, we are growing a little bit. But of course, the quite weak quarter, last quarter, still has an effect and will have so over the year. when you're talking about the 12-month rolling. And also that we're keeping the operating cost levels somewhat intact. We will come back to that later on as well, concerning the ED cost and stuff like that. But overall, it's really nice to show you the growth uptake and that we are also increasing the earnings. And a little bit more detail, as Philip said, we had a strong growth on the sales side We're doing 24%, giving us the best quarter ever on the turnover. When we're looking into the operating profits, then we grow with 9% on the EBITDA level. And that should be said, it's compared to a very strong quarter last year. So that is very satisfying. But taking into account the cost side as well. Of course, we are significantly burdened by the EDA-related cost that amounts to roughly 1.3 million SEK this month. Well, this quarter, I mean. We should also take into account that this is the first quarter where we have the full effects of our transfer into new premises, new laboratories, etc. We've set a costume. But we did discuss the customers before. C&P continues with very strong growth with 30% up compared to last year. And as Philip said, PPP launched a new product in the quarter and it's already impacting on turnover. It's the third customer that shows some impact with 4% of the actual turnover. And we had some interesting news during the quarter as well where We concluded that we now, with all the deliveries we made to customers over the time, has exceeded over 20 metric tons of selector. And it should be said also that in every one liter of paint, it's only one to two grams of selector. So it's quite a lot of liters of paint that has been out there. Jan-Willem Wasmann, Taking this day also would like to go in a little bit to the balance sheet it's not common that we discuss it, but as we all see, we have a very strong balance sheet, we have a good conversion rate with a strong cash balance. Jan-Willem Wasmann, Very much depending on that we have a so far, a very low net worth of capital it's only 7% on 12 month rolling. It should also be said that we will have to spend some money over the year. We will soon, maybe not this year, but soon into next year, come into a tax payment position since our tax assets will be reduced down to zero. And then we start to pay tax, of course. We are debt-free. That's very important to say. And we're also repaid over 60 million SEK that we borrowed from the Swedish Energy Agency and Almi over the year of 13 to 18. We have the final royalty payment to the energy agency in Q3 of around 800,000 SEK. So that's not really burning us. So what will we use cash for? Well, of course we will need to increase working capital a bit. because we are transitioning to a different supplier setup where we would need to take a little bit higher responsibility on the working capital. We also announced that we are on a dividend scheme with the company, which we intend to move forward over the years. And then, as Filip has said in other corporate reports and also in the annual report a little bit, we are assessing new growth plans and potential execution of those, of course. We are strongly equipped with almost 100 million SEK in cash and we will hopefully find very good ways of putting this cash into work. So a little bit about production as well, which is my responsibility as well. Today we have one main manufacturer continuously running in this industrial scale production. if they are not on the full scale of their production, but almost. But in order to strengthen this, we're also on the verge to reopen our cooperation with a second supplier, which is a very interesting, also a large medical company, medical API company in India. But I think that the more interesting part here is that we, late last year we did reveal that we are putting some investments into a new supplier which is a specialized contracted research and manufacturing supplier where we have invested in the familiarization on their site and they are now investing in facilities and we have the aim to start delivering from them in q3 q4 this year so why are we broadening the suppliers i think it's very important because we need to secure the supplier redundancy. Sitting on only one or two suppliers is not healthy for a company like us, where we need to deliver timely to our customers. Of course, we also would like to increase the process yield. With every increase in the process yield, of course, reduce cost, but it also improves the production sustainability. And the focus is, of course, not on cost, But when, for example, if we succeed in establishing higher recycling of raw materials, et cetera, which will of course reduce our carbon footprint. And then the third part is we want to secure the most efficient production setup. And that's not talking only about the process. It's talking about everything around the production. It's process, it's the material handling, it's logistics, et cetera. where we want to achieve the highest possible customer satisfaction and, of course, the most attractive total production costs. So then I leave it for you, Philip, after this short financial run-through. Finally, we had a new amount of sheets.

Anyway, this is our last slide. So we normally end by a short business outlook to give you some ideas on what we have in front of us and what maybe we spend the most time on, or at least would like to see happen. Jan-Willem Wasmann, As important steps and one is obviously that we are really excited about new customer coming on, but we also been working with for some time, but not as long as for the other, so the quick. Jan-Willem Wasmann, How does a turnaround from from idea to actually entering some sort of commercial discussions. is highly encouraging. Although we know that they know what you're doing, of course, it's just a different leadership in place and a different way to look on innovation, which we're really interested to follow and see where that goes. So that's important. And we have our previous acknowledgement of licensing with Accenture, but let's hopefully also plays out well moving forward. And that would combined give us a commercial footprint with the eighth of the nine largest in the world. And you can say that's way beyond 90% of the total market that we capture by that because the ninth is quite small. So that would be a wonderful position for iTech. So looking forward to that. And that's my operational improvement project underway. And we also have technical milestones within reach finally that can help to overcome some tricky challenges in certain coating types that we believe can accelerate the uptake into the dry docking scheme. of products and that's as you may know from before is where the volumes is we're talking about 15 000 maybe even 20 000 dry docking opportunities per year as opposed to 1500 new buildings so it's very important to get into that some of it is already flowing in like the ppg product and a few of the google's products so there is some a small technical there's a technical hurdle that maybe if we come through that can help others to move in as well so we're excited about that and Maybe we can come back to that later, but it's still some time needed before we prove what we have found. On the challenge side, it's no secret that the ED process is continuing its pathway forward. We have invested everything we can, taken every angle we can to the issue. And in this first phase, which is on the chemical agency scientific review, we're trying to put our work, interpretation and that's then supported by many external experts to the table and hopefully making member states pay attention to this very delicate situation where a difficult parameter is introduced into the industry into a very difficult and different buy side select hope and if details are not understood it's a big risk that The general thoughts are overruling the nitty-gritty details and then there might be an unfavorable outcome of this first process. But let's see. And I emphasize that so we are not so many steps ahead. So we're doing everything we can and we will come back once there is anything meaningful to say on that industry. on that process. As you've seen from the financial report, there's a lot of money going into that, which obviously is showing our ambition and our willing to defend. Then we have the cost that is also jumped up on a little bit different level for good reasons, because we invest in strategic search, we invest in development, manufacturing, as we discussed, but also regulatory affairs. Obviously, regulatory affairs is maybe not a pleasant strategic expenditure when it comes to the ED, but in many other aspects it is. The US process, which we will hopefully restart here after summer, and we have other countries where we do have a very positive momentum around the need of select hope and the dialogue with authorities. And then, as mentioned, right, we have this suffering of delays in APA. Let's hope that staff at APA is not completely changed after presidential election, because then everyone is back to square one again. But if not, we do see a pathway forward now once they have aligned the resources finally after three years of not knowing, of recovering from COVID backlogs and a lot of turnaround of key people, I would say. But I also want to have this opportunity to say this is my final public presentation of a quarterly report for iTech. It's been 10 exciting years as CEO. It's been enormously interesting events that we have gone through together in the team and also with you as shareholders the last six years. And it's with great pride I leave with these good results, of course, and in good hands of a very strong team who is everything to this product. And it will be headed by a very stable and robust experienced person next to me here, Magnus Fenell, who will be the interim until the full CEO process is completed and that process is ongoing and I hope that somewhere in June we have the conclusion of that and we choose to do it thoroughly we twist and bend and check the alternatives at hand and then we'll make a decision and maybe you will be seeing me in a presentation of the next CEO as our next opportunity to meet but in between that it's all in good hands and I wish Magnus all the best in Hopefully I can help him as a chairman if the election goes the way we hope at the AGM on May 16th. By that I say thank you and look forward to your questions.

Thank you very much Philip and Magnus for that presentation. And like I said, now we'll jump into the Q&A section here. We'll start with the first one. You write in the Q1 report that the EU re-registration process costs are expected to continue over the coming quarters. Does this mean that you think that it's unlikely that there will be a positive outcome from the working group stage that was scheduled for Q2? And what is the current timeline of the process?

We have to leave under assumption that it will continue beyond that, that there will be a bumpy ride, which we said before. That doesn't mean that we don't have a good momentum right now in the funding for this second quarter meeting, the BPC meeting. But we have to count on a continued process over a longer time frame, of course, because it takes time to change minds. Therefore, we make the statement that it likely will come on the next few quarters nothing is done until it's done and also this first BPC meeting is an opinion again although it's a little bit more important than last time it still is far from a decision so but either way we will probably need to spend the efforts in concluding the whole dossier and communicating around it but you're right we do always tend to look on the cautious side when it comes to this plan for the next quarters as if we do not have success because it's too late to plan it if we start at that point already far ahead in those uh plannings just in case

Other external costs were around 3 million more in the quarter compared to the previous Q1. Besides 1.3 million Swedish crowns, EU-related costs, what else has driven the increase and should we expect this level of costs going forward?

Well, to a certain part, we should expect this level of cost. Except the ED process, as I mentioned before, we have moved into new premises. We have had, we are taking external services, cost for support, et cetera, around the laboratory equipment. which we didn't need to do before. We have taken, as you know, we have the CEO search. We're also taking some costs related to that. But latest, we also have been traveling more and being able to see our customers on site in Asia to a much larger and greater extent than the previous years. And that will of course go up and down between the quarters. I think we should count on a cost level that are close to what we see today, except for the EDU cost there.

You have stated that Chugoku has grown by 30% in your report. Could you comment anything about how your smaller customers are growing at the moment compared to how Chugoku grew when it was smaller? Would you say that the development is similar or is there a difference there?

That's a good question. We see an exciting uptake on the PPG account to start with, but it's only a few months into the game, so it's too early to answer that question. For the second biggest customer, it was a really strong growth last year, which was probably faster than what Shugoku had at that time. We will see after this year how they grow, if it's comparable to the Shugoku uptake. Remember, for those who've been with us for quite some time, we had years in 2017-18 where nothing grew. We had no growth at all, right? And there was also the COVID year. So there will be plateaus in every customer's uptake, but we're quite positive that we'll be at growth on all those accounts. And as I said, in PPG case, maybe, you know, in line where SugarPool were at the time. For the other smaller ones, we are not seeing any significant movements at all.

Okay, and can you tell us a little bit more about the PPG launch?

Well, yes, it's been something they've been working on for quite some time. They are very familiar with this Nexion technology that they have, which is a very high performing system that is now made even better through the addition of Selecto. Our relation with PPG goes way, way, way back, right? I think it's 15 years or even more, maybe that's been... some sort of dialogue and there was ups and downs in test results and the routes were changed. So we're very familiar with PPG. PPG are very familiar with our product. So in that sense, it feels safe and good, reliable. They were really picky on doing the testing correctly. On a global perspective, it's interesting to see that PPG's two main products is a silicone-based bi-side free product, and it's this one, an external 8-ton, which is on a low bi-side version of self-polishing. So they're clearly moving into that direction very strategically because the premium uptake is obvious. They want to be part of that, and they want to do it with their angle. So they go forward with two different products, one is the bi-side free silicone, and the other one is this one. There are other products as well, as should be said, right? But on the On the new side of the coin, on the release side, on the trend side of their development, this is what you can see. We're really excited to see how big portion this will take on their total portfolio.

And your annual reports a few years ago stated that your formulation pattern expires in 2026 and your product pattern expires in 2030. However, last year report says that your patents run until 2034. Did you renew this patent last year? And could you please could explain the difference between these two statements?

Yes, first of all, it's correct that one of the most important patents for iTech expires 2026. The one has already expired in 2020, which was the original patent. 2034 is a co-shared patent that is very important for us, and that's in place, as I said, until 2034. That gives some sort of protection that we obviously want to give to our customers for use of the product, but that's protecting from others to access Selectopia in certain formulation types. Well, more than 10 years from now, right? So those are the differences. But I would also say that we are constantly trying to renew. We can't renew an old patent, but you can renew the patent portfolio by new innovations and finding solutions to problems that you learn about much later in the game. We're trying to be active on that. And there's a new patent that may be useful for us that was made public not too long ago. There's one or two more in pipeline that we can help that. I need to emphasize every time we go to this discussion, though, that regulatory approvals is important. The manufacturing patents are also important. And those go also to 2034, right? The approvals are for long term. So all in all, the hurdles are quite high to engage in this. But yes, if you want to play it that way, you could probably find a way through somewhere 10 years from now with a quite simple way.

And how is the allocation in sales between dry dock and the new build today?

We have no other indication. It's the same as last quarter's, which I think we said is 60 new build and 40 dry dock. The launch of the PPG product and the potential uptake, bear in mind, everything takes time in this industry. But if you look a few years ahead, that will definitely contribute to dry docking because it's clearly specified as a five-year system for dry docking. Of course, they sell it also as a new building, but then it's for the five-year system. So that will help us and help the whole momentum into the dry docking industry.

Would you say that your customers now are at a normalized inventory levels?

We see that there is a sharp demand with short notice or at least pushing dates on deliveries. So we do not see any levels of inventory build up. I should maybe also check this with Magnus if you see different from your perspective.

No, I have exactly the same view. And as Philip said, there are no dragging in the deliveries. It's just the opposite. They would like to push the delivery dates forward or... closer to us. So I would say that they are on a normal level for them. And a normal level for them are normally actually quite low since they demand quite fast delivery dates.

What are your expectations for additional regulatory costs for the remainder of 2024?

It's very hard to say, of course, how long it's lying, so to speak. But of course, we are on a level today, a little bit over a million in a quarter. And one case could be that we stay on that level. Of course, we aim to spend as little as possible. But we need to bear in mind that we will do whatever we need to do in order to have a positive outcome of the process. And if that means that we need to spend a little bit more, then we will do that. We have the strength to do it.

You have made some reinforcements on the personnel side. In which areas have you made these reinforcements?

But on the quarter, we haven't made any firm reinforcements. We have engaged a competent reviewer to help us walk through some sort of initial strategy work to see what options we have at hand. We did have last year some reinforcements on the R&D side, and that's what's known as of today. Of course, we're looking into some areas depending on where the strategy work comes in and depending on what a new CEO will have in his or her mind of course. But that's the only thing we know for now.

Could you please elaborate on the strategic decision to spend a significant amount on the EU regulation issue considering that the EU market is such a small part of the global market?

That's an interesting question that is asked many times in different forms. But you've been in the industry a long time, which we fortunately have. I understand that the EU approval has a few different important aspects. One, it is the entry barrier for any paint maker to work with the technology. If they don't have the EU approval, normally they are reluctant. Of course, that one-time approval is what they need to see, right? But when the product has been used many years as ours, the approvals, you know, it's more of a market share thing, but it's also such that if we don't have an EU approval, it makes their life more complicated. Products need to be registered in a certain way outside of Europe. You cannot really apply it on ships that are flagged in the EU, so it makes them It comes with some unease, so to say, right? Which is not favorable. The third thing is the brand reputation, of course. And I've been talking on this topic before. If we select hope, we'll be the only buy side being phased out which you obviously don't hope and don't believe in but if it would happen as a worst case and it would be the only one obviously that's a very difficult brand recognition situation to manage although we have lots of evidence that the decision may be wrong it is a big industry to convince differently now we don't think any of this would happen if it happens we won't be alone That is almost for granted as we see it. But again, we don't see that coming as a negative scenario. So reason to invest is because we want to make our customer lives as easy as possible. We want to keep the brand recognition of being approved in the most rigorous, maybe over-conservative market there is. But as you say, businesses elsewhere, this just happens to be the key you need to access some of that.

And as a future chairman, what opportunities do you foresee for the Selecto business and the company as a whole? And how will you support its continued growth and innovation?

First of all, we foresee a very strong future and it's a very good time to shift leadership in the company. As you've seen from the report, we have a very strong financial position, we have a very strong momentum in the industry. It's a very good time for someone new to come in and not only continue to develop the Seller Club story, but take use of this the tailwinds we have to broaden iTech as a company, if we find suitable things to go into, which are not obviously endangering the selector business in any way or endangering the nice financial metrics that we have. So from a chairman position, I'm obviously with great excitement, want to see how we step by step can build iTech to an even bigger and more attractive company. And that's the key focus, of course, right? And the timing is perfect. We have a good runway to make a difference somewhere else if we want to find opportunity. And for that, you need new energy, you need a timeframe of multi-years, of course, to make a change. I'm really excited as a chairman to follow the learning from SelectUp and see what new angle we can put to iTech, if any, without compromising our current performance.

And we'll take one final question here. As acting CEO, how does Magnus Hanell plan to steer the company during the interim period? And what are his key priorities in maintaining momentum until a new CEO is appointed?

Well, of course, we will not make any major changes in the company during the interim period. That comes per se. And of course, me and Philip will continue to work closely together in order to continue the good customer development, continue the strategic work. Jone Peter Reistadler, until we had the final solution in place so don't foresee any major changes just proceed to see that via the entire team will continue the great work that Philip has been carrying out for 10 years.

Okay, that's a wrap of the Q&A section here. Thank you very much, Philip and Magnus, for presenting and answering all our questions. And also, thank you very much to everyone who followed along for this presentation with iTech. And until next time, thank you very much and goodbye.