MIPS AB (publ)

Good morning everyone. My name is Max Strambits and I am the CEO of MIPS. With me today I also have Karin Rosenthal who is our CFO and we will walk you through the Q1 quarterly report. If we start with the key highlights of the quarter, we did see a stable start of the year, but actually a decrease of 6%. And of course that decrease is fully explained by a strong prior year comparator in snow. For the ones that are following us knows that we were increasing with 60% in Q1 2023. And of course we are up against that tough comparator. In terms of longer term, nothing has happened in snow that makes us worried. And of course, if we had a very strong comparator in Q1, we are up against a much softer comparator in Q2 with minus 40%. And I believe that when we are exiting Q2, we are back at growth again in snow. So nothing really that has changed and more of a phasing effect. And then why did we say stable quarter? That's because we saw good development in the other categories with continued good performance in bike. And we are now happy that we have seen two quarters with consecutive growth in bike. And also, even though it was only 3%, motor was back at growth again one quarter earlier than we anticipated ourselves. So, of course, really pleased about that. We also see good momentum in terms of projects of implementing new helmets with MIPS. Of course, that's a really important indicator for us if we are still gaining market share, if people will still increase the penetration with MIPS in their assortment. We saw an increase of 21% in the quarter, which is, of course, also a very robust indicator that we are going in the right direction. and of course we don't see any reason to change our previous assumption of recovery in 2024 and we remain confident in our long-term strategy and our financial targets in sports like i said we saw growth in bike tough competitors in snow sport was now down with nine percent and of course that's fully explained by snow, we did see growth in both bike and also equestrian, which continued to develop well in the quarter. We continue to see positive order momentum in bike and our previous assumption of recovery in bike remains. We consider the performance in snow, like I said to me, more of a facing related situation and expect to be back at normal performance when we are exiting Q2. Then, of course, we had also a great exposure of Gothenburg Horse Show, which is the largest show jumping event, which is, of course, a great event. And there we saw experience, a really high level of interest in MIPS. And also we had great interaction with the equestrian industry. And it's really good to see the level of education and awareness you see in that audience, even though equestrian is not the biggest part of our portfolio, it's still very interesting to see the interest that we are gaining in that subcategory. And of course we also see a long-term positive outlook in the sport category. If we then change to next slide. page which was Moto and there we were expecting a little bit softer Q1. As we communicated we did actually achieve a little bit of growth even though it was only three percent but growth is growth and of course if you come from a couple of soft quarters we are positive about being back in positive territory again. The retail environment is improving, especially for the important U.S. market, but it is still softer than we have seen previous years. We have implemented several initiatives to improve the sell-through, support new partnerships and model launches, and that, of course, starts to take effect. We have also announced that we will be the official safety partner of the Motocross World Championships. which was launched only a couple of days ago. And that is, of course, very important for us to drive the awareness in this category. So we will be following them through the whole season and we will also have our first safety symposium in the end of May. where we will gather all our key brand partners and also around 50 journalists in Germany and talk about how we can improve helmet safety also in that category. And that, of course, is a fantastic event, which we are really happy about. No change to the long-term outlook, strong interest for MIPS in the category. And of course, we continue to see new partnership and also models being launched during the coming quarters. In safety, we continue to see good development and of course supported also by important launches. We do see a gradual improvement of volumes and of course with more helmets being launched during the first six months. We see good interest in both the US and the important markets. We talked a little bit about delay in certifications, not the MIPS certification, but the certification of helmets in general. And those are now done. And we are looking forward, of course, to all the launches that we will continue to roll out. You did hear the announcement of Husqvarna, maybe not the biggest subcategory, but of course, really happy that we can make a difference also in the forestry industry. And of course, great to see the expansion of MIPS into new type of subcategories. And of course, we now have a very strong customer platform to really support the delivery of our longer term plan. And if we then go into next page and look at the development of net sales in our categories, We did see a decline of 9% fully explained by the soft performance in snow. Moto, even though only 3% back at growth. And also as we communicated already last quarter, we didn't expect until Q2 until we start to see the improvement in volumes. We did have 30% growth in The safety categories key certification is done as I explained before and of course really happy with the platform we have in the safety category. With that I hand over to Karin. She will talk a little bit about the financials.

Good morning. I'm Karin Rosenthal, CFO of MIPS and I will take you through the financial part of the presentation. We saw soft development in the first quarter with a decrease in net sales of 6% and no change after adjusting for FX. Net sales also decreased 6% organically. Gross profit decreased with 8% and we had a gross margin of 69.4% in the quarter versus 70.8% last year. The decrease is mainly due to higher revenue from customer implementation projects, which has lower margins, but the positive in the long term, since that will mean that it will lead to more helmets equipped with MIPS in the future. And we also saw a product mix effect on the gross margin. In OPEX, we continued to invest in our strategic priorities, marketing and R&D. EBIT was down 12% to 14 million and with an EBIT margin of 16.5% in the quarter versus 17.5% last year. Operating cash flow amounted to minus 10 million in the quarter compared to minus 42 million last year. If we look at the financial KPIs, minus 6% organic growth, 16% EBIT margin and minus 10 million in operating cash flow. If we then turn to the next page and look at balance sheet and cash flow, we have a strong cash position with cash and cash equivalent of 400 million. And also to remember that MIPS don't hold any loans. Operating cash flow in the quarter was minus 10 million. And the board proposes a dividend payout of six SEK per share, corresponding to 249% of net earnings for 2023. And we had an equity ratio of 89%. Over to you, Max.

So if we then summarise In the first quarter we did have a stable start of the year and we are pleased to see that performance is picking up in all our categories. Our assumption remains we do expect recovery throughout 2024 and our view is that our sales will much more reflect what is actually happening on the market rather than our customers eating out of their own inventory. I think that's really important to point out that when we look at the market situation in general, we don't expect a very strong consumer in 2024. And of course, we don't want to have any bets on a strong consumer. We expect it still to be weak. Still, we expect to grow and we expect a good recovery in 2024. And that's coming from two things. First of all, if the customers buys from us rather than eating of the inventory, of course, that's a good start. And of course that's something that will generate a lot more sales for us than the previous year. And then the second one is what we have always talked about is that we are increasing the penetration with our customers. We have more MIPS models being equipped with our technology. And of course that rollout continues. And of course, increasing the penetration also generates growth. And of course, that's the key driver of us taking a lot more market share. So not a strong consumer, but we are still able to grow in 2024. And then, of course, when it comes to our financial position, we have a very sound financial position. We have confidence in the long term strategy. and our financial targets. And with that, I open up for questions.

Thank you. To ask a question, you will need to press star one and one on your telephone and wait for your name to be announced. To withdraw your question, please press star one and one again. If you wish to ask a question via the webcast, please type it into the box and click submit. We will now go to our first question. One moment, please. And your first question comes from the line of Adela Dashian from Jefferies. Please go ahead.

Good morning, Max and Karin. My first question relates to the bike subcategory. Would it be possible for us to get some type of, at least an indication of what growth was within that specific category in Q1 and also how that compares to Q4?

Yeah. So, yes, you can. We did see double digit growth in bike in the first quarter. Of course, it's not the bike quarter. It's not the biggest one. And that's roughly in line with what we saw in Q4. Q4 was actually a little bit stronger than that. It was around 20 percent. But that's where we are trending at the moment.

Okay, great. Thank you. And then also you just mentioned that you're not expecting the consumer to be particularly strong in 2024 for obvious reasons. But when you're having discussions with your customers who aren't the retailers, but at least they are in very close contact with the retailers, what's the type of order momentum that you're seeing now with the season going? already started or what kind of I guess what dynamics are they portraying at the current moment?

Yeah so I think I mean we are in three different categories and I think you need to divide it into the different subcategories but I will try to give a quick summary so if we talk with talk about the biggest one which of course is the bike category or subcategory you have a little bit of a different situation. In the US, it was not a fantastic start of the season. Early indications was that retail was down somewhere around 5% in the first quarter. Then, of course, when we're starting to go in much more into the season, we see very much normal behavior and a little bit of like a flattish sales outlook. to consumer which is a little bit better than we actually expected. So the US market a little bit slower start but now really up and running and we start to see good momentum there. And we see also a lot you probably also read the Shimano expectation that they start to see growth already in the second half of the year. And that's also what we hear from a lot of brands that they are much more positive about the second part of the year. We don't want to speculate on that. So we don't bet of the consumer in 2024, but more look at our situation. How can we influence the growth? And that, of course, is to deliver to our customers. And then, of course, to continue to launch MIPS in as many products as possible. That's what will be the driver of our growth. If we are, for any reason, helped by the consumer, fantastic. But we don't put any bets on that. Then when it comes to the European market, it's basically more like a flattish start. So there you actually see a little bit more positive. And I think also commuting are starting really well. You see more and more commuters around Europe and so on. So they're much more normal. So I would say bike season, where we are at the moment, at expectation or maybe a little bit better than the expectation then what we said in motorcycle especially in motocross we start to see that the market is improving but it's against quite soft numbers so it's better than last year but of course it's softer than we have seen in previous year when it comes to retail especially for the important u.s market And then when it comes to safety, there, of course, Europe is softer because, of course, it's quite a challenged financial situation. Nordic is horrible. But then, of course, when you look at the U.S. market, it's super strong. And, of course, the U.S. market is driven by a lot of the big mega projects that is being done, a lot of infrastructure projects and so on. So there we don't see any slowdown when it comes to the construction sector at all.

Got it.

All right.

Yeah. Yeah. A lot of, a lot of mixed developments. But, but on, on most of them, maybe would you say that you're a bit surprised by the quick recovery? I mean, you're still, you're meeting very easy comps in the first half of the year, but it's still a recovery versus what you saw in Q4. And with that, would you say that it's, it's the initiatives that you have taken, the increasing the marketing, that are now starting to bear fruit or is there actually the end markets?

It was a little bit stronger. We said that we didn't expect to be back in growth when it comes to MOTO until Q2 and we saw even though it was only a small growth already in Q1. So of course that was a little bit better than we expected. And of course a lot of the growth that we are expecting in MOTO is from Of course, a normalized market situation with less inventory impact, but also that we are rolling out a lot of new models. And when also the situation is normalizing there, then we get the opportunity to launch new models with our customers. And of course, that generates volume as we now start to see that also the most situation is normalizing. Then, of course, those models are being launched. And that, of course, is the key driver of us coming back to growth.

Okay. And then just lastly, one quick question on the Husqvarna partnership. I found that interesting. Could you give some more insight on the rationale behind that? And if we could see you partnering up with other types of companies within that specific subcategory going forward?

Yeah. So when it comes to the forestry industry and so on, of course, we see that a little bit of a sweet spot for the MIPS technology because, of course, Price points are normally quite high. So the typical helmet that you use in the forestry industry can be anything from 150 US dollar up to 300 US dollar. So of course, it's a great opportunity in terms of addressing the right type of products with the right type of price points and so on. So there we see that's very interesting and you will see more brands in that sector. But of course, it's not the biggest opportunity. So you only talk about a couple of million helmets that is being sold in that industry every year, but a very relevant category for us to be in. But also what we like about it is that with these really high-end products, you can also tell a very compelling story. And of course, it's also a great showcase of MIPS. So we are really happy working with Husqvarna and for them being the first mover in this sector and so on. But of course, it doesn't stop there. That's just the start.

Great. I'll step back into the queue. Thank you.

Thank you.

Thank you. We'll now go to your next question. And your next question comes from the line of Emanuel Jansson from Danske Bank. Please go ahead.

Good morning, Max and Corrine. I hope you can hear me. I think if we continue on this safety segment, is it possible for you to display on the geographical split here on your current sales figures? Is most sales teams from the US or Europe or the Nordics or how should we view it?

Yeah, I would say that 75% to 80% is in the US market.

Okay, perfect. And are all these certifications that more or less are done now, are they applying for all of these markets or any specific markets?

No, it's for the US market. And of course, the reason why it takes a little bit longer is that certification for our sweet spots, which we always talk about, which is the type two helmets, is a little bit more complicated. Testing is a little bit more random. And that's, of course, why some of the brands have more issues to get through their product there. And those are all relating to the U.S. market.

Okay, perfect. So putting the pieces together, it seems like we should expect that sales continues to steam from the U.S. here in 2024, right? Given the market circumstances.

Yeah, also there is like I also talked about before, there is a big push in the US to move to much more of the type two helmets. So when we are talking about different types of helmets in the US market, you have normally the type one, which is more the simpler type of construction helmets. And then you have the type two, which normally offers a little bit more advanced protection. Those type of helmets are normally somewhere around 100 US dollar and above. And given, of course, a lot of the construction companies' commitment to safety and also in these mega projects that everyone talks about in the US, you see an increased attention when it comes to PPE and safety equipment in general. And of course, that's what's really driving. We talked about the construction helmet market growing somewhere around 5% annually. If you look at the types of helmets that we are addressing, which is more the type 2, you see a growth of double digits for sure. No one has the exact number yet, but you see a very, very strong conversion from the old traditional hard hats to much better helmets in the market. And of course, that's what's really driving the push in the US. And we actually expect that to continue. OSHA, which is the regulatory body that is issuing a lot of the requirements for helmets and so on in the US, they already talked now about that in 10 years from now, you will see a much bigger share of the type 2 helmets because, of course, much more companies are much more focused on safety and those related topics.

Okay, cool. And I guess the Type 2 helmets in the US, is their penetration around 10% or so? Or can you maybe share some insights there?

Our penetration, you mean?

No, sorry, the total Type 2 helmet penetration in the US compared to Type 1 helmets.

Yeah, it depends if you talk about volume or value. If you talk about volume, yeah, then the indication is that it's somewhere around 10 to 20%, but that is in volume, of course. But given that the Type 1 helmet can be as low as 5 to 15 US dollar versus 100 US dollar in terms of value, there's not that much of a difference.

Okay, perfect. Cool. That's very clear. And just jumping on to the snow segment, can you maybe share some insights or view on how the start of the sales in Q2 has continued since? I assume that you are at least seeing with much healthier inventories and maybe slightly easier comparable figure year over year, it might give indication that it It's closer to growth again, at least, since you face the tough comparables in Q1. Yeah.

So I think I would put it probably in the perspective of, given that Q1 and Q2 is really where a majority of the helmet in snow is being produced. And then, of course, if Q1 is really soft, and then, of course, if we say that in Q2, we will be back to a normal situation, you can expect that we are seeing a big improvement versus what we saw in Q1. And that, of course, is happening. So, so far, we have seen a positive momentum in Q2.

Okay, great. And I think final question from my side on the bike segment. As you mentioned, Shimano, I think Fox Factory and a lot of other companies are talking about the second half of 2024. and you claim that to both you have the restocking effect and also the launch of new models into the markets. What are basically the retailers and the OEMs saying about these new models? Do they need to put orders in the second half of 2024 in order to be able to launch them in 2021? in the 2025 bike season and how important is it for them to, to actually come, come with the, with new models to the markets?

Yeah. So I think, I mean, when it comes to retailers, of course, the whole pre-order situation that we used to see a lot of in previous year has disappeared to a much bigger extent when it comes to bike and so on. Normally, what happens is that you get a little bit of a discount if you place pre-orders. But now, given that, of course, cash is a lot more restricted at the moment and also, of course, no one wants to carry any risk. Retailers are buying a lot more what they need and not caring about that extra discount of maybe three to five percent. more saying that this is what I will need for the coming season and so on. And given that cash is difficult, especially with a lot of bikes in stock and so on, they are much more cautious on how they are ordering. For us, we will not receive a lot of orders from the bike retailers in Q3 and Q4. But for us, that's when the start of production for 2025 starts. because of course we are integrated already in the factory. If you want to launch product in Q1 and Q2 2025 and also sell products in Q1 of 2025, then you need to start producing those already in Q3 and Q4. So the effect that we are expecting in the end part of the year is more relating to manufacturing of helmets in general. We expect 2025 to be a much more normal year and then, of course, having a much bigger effect of what we have done in the last years.

Okay, great. And I don't know if it's possible, but is it possible to maybe elaborate a bit on what will be the main sales growth driver in the second half year 2025? Is it the launch of new models or maybe the... as I assume it, the primary growth driver here is the restocking effect, right?

Yes, that's correct. It's the latter one. It's of course a much bigger effect because of course, if you also look at the prior year comparators where we were down like 50-60% in these quarters, Launching models, of course, that will help, but the destocking effect that we have in our comparator is, of course, the biggest driver of that.

Yeah, sounds fair. Thank you very much, Max and Carl, for taking my questions. That's all for me now.

Thank you.

Thank you. We will take the next question. And your next question comes from the line of Gustav Haggis from SEB. Please go ahead.

Thanks, operator, and thanks, Karin and Max, for taking my questions. If I do my calculations correctly, it looks like service intakes are up 30% on a rolling 12-month basis, while sales of goods is down similar. Could you perhaps remind us of the dynamics between the two, the lead times between a project being launched and service intakes being taken and where sales of goods eventually pop out on the other side. And if we can draw any conclusions on your market share, given those numbers for model year 2024, 2025 helmets versus prior model years, that'd be helpful.

So of course, when it comes to our project revenues, why are we excited when those go up? That means that more customers are implementing models with MIPS. And given that both in 2022 and 2023, we had record years in terms of the amount of projects that we did in a year. And of course, we said that we were close to doing one new helmet with MIPS per working day. And of course, if we are up against that number, you know that it is actually a really, really high momentum. What would be the effect of those type of projects is of course that normally the development time of a helmet, including MIPS, it takes around 18 to 24 months before that hits the market. It has nothing to do with MIPS. A normal lead time of a MIPS project is between 90 days to 150 days. So for us, it's not the lead time, but of course, As an ingredient brand, we are part of a product and the product before it hits the market is around 18 to 24 months. So if you see project revenues now, you can expect that that will hit the market in 18 to 24 months in a normal situation, of course. So that's why we are quite excited about that. And then when it comes to market share, and as you also saw in your initiation, you see that the penetration rate is increasing. especially in the important US market, but also in Europe. And we see really, really good numbers there. And that, of course, is the sellout data. So we haven't found any place except for Wiggle in the UK, where we haven't gained shares in terms of the last basically two years. So we are advancing our position, of course, and we are gaining shares, which I think you saw the same results when you did your survey.

Okay, thanks. Yeah. And for Q2 then, could you remind us, last year, what was the share of snow helmets sold Q2 last year? And what was the sales decline in that category last year? Is that helpful?

Yeah. So last year in Q2, the share of the total sales in snow was a little bit above 50%, but 50% is a very round number, so say 50%. And then the decline that we saw in Q2 last year was minus 40%.

And compared to the prior year, of course. Sure. And so is it fair to interpret the new comments on Q1 here that given the organic decline of low single digits now in the quarter that the bike or everything but snow basically grew mid to high double digits in Q1? Is that a fair assumption?

Yeah, it is a fair assumption. Of course, motor was 3%. So, of course, there you didn't see a double digit, but it was still back in growth. We did see double-digit growth also in bike, and the question is very small numbers, but there you see significantly higher growth than that, of course. But then, of course, snow was down with around 20% in the quarter.

Okay. And then finally for me, in most of them, have you tried to assess the hoarding impact in Europe from the EC05 standards being disqualified this year? And the model years for 2024, will they be sold at all in Europe within Moto? Are producers more looking to get flushed their inventory of these older standard helmets and go for 2025 models? What's your view there? And also your market share in 2025 models versus the prior year models in Moto would be helpful if you have a view on.

Yeah. I think it's always difficult to predict because, of course, it relies a little bit on the general inventory situation. But at least what we have seen so far is that they have started to roll out a lot more models with MIPS. And, of course, that was the comeback in growth that we see. And then when it comes to market share, of course, for us, The important market for motocross is really the U.S. market where we have really strong penetration. But of course, we start to see the same thing also in Europe. And it's not actually that different from what we see also in bike and snow in Europe that we have said that we want to do exactly the same thing in Europe that we have done in the U.S. market. In the US market in bike and snow, we are close to or above 50% penetrated in the price points that we are in. When it comes to motocross in the US, we are probably at around 25%, and that, of course, is increasing. But when you look at the European market for motocross, we are only at single-digit numbers. That's why we're also doing a big push in motocross in Europe. That's why we one of the reasons why we sponsor the world motocross circuit to really make sure that we can increase the penetration also there. We have also done a lot of e-tail campaigns in Europe to really make sure that we get all the e-tailers informed about how to sell MIPS, how do they explain MIPS and so on. And that's what really starts to work since there is so many models with new helmets that will come out also in Moto, it's really difficult to say exactly what the share will be, but at least it's increasing.

Okay. And then just a housekeeping question to finish on a gross margin was down a bit here in the quarter. Is it fair to assume that it mainly relates to increased share of service intake and sort of the lower base for the cost base to distribute it on? Or is there anything in the product margin that has changed?

No that's actually very correct and of course it is a small quarter so of course you have a bigger impact from project services which has a lower margin. There is nothing underlying that keeps us below 70% so it's just an effect of that and then you have of course a small element of fixed cost that is also influencing the margin, but nothing that keeps us structurally under 70%. Okay, perfect. Those were my questions. Thanks, guys. Thank you.

Thank you. We will now go to the next question. And your next question comes from the line of Daniel Thorson from ABG Sundar Kholia. Please go ahead.

Yes, thank you. Quite a lot of questions already taken here, so that's good. But then the question on Q2, I mean, all your answers here, they tell us that the foundation for comeback to growth looks increasingly supportive, which has also been kind of the case in the last couple of quarters, but that hasn't really materialized. But this time, what could really screw up not growing in Q2, really?

Yeah, so based on what we know at the moment, of course, we don't give any like forecast as such, but at least we're off to a good start and we see a lot of the trends in our favor. So if there is anything that we need to guide from in terms of be careful about this, there is not something that we know at the moment.

And then on the gross margin here that we touched upon in the end, not specifically for this quarter, but looking into 2025 with a new product mix of new solutions coming to the market, which I guess have slightly higher ASP as well. Will that have any effect on the gross margin, making us believe it should be some kind of off the 72% for next full year, either upwards or downwards? Or will we have the same gross margin profile in 2025, although you may have a different product mix and higher ASP on average? Yes.

Yeah, we haven't changed our assumption on gross margin. We see roughly the same picture as we see today.

Okay, that's fair enough. That's all for me.

Thank you, Daniel.

Thank you. As a reminder, if you would like to ask a question, please press star 1 and 1 on your telephone keypad. If you wish to ask a question via the webcast, please type it into the box and click Submit. We will now go to our next question. And your next question comes from the line of Carl Dazenberg from Carnegie. Please go ahead.

Thank you, operator. Good morning. So two quick ones from my side. Maybe first one with regards to snow. I can hear what you're saying about the comparisons and expectations here for H1. But could you just remind us what happened actually in Q1, Q2 last year? What was the reasons behind those sort of volatile numbers within snow because I guess the overall sellout development was not as dramatic.

No I mean you had a very strong development of course in the US market but it was not as dramatic so it will drive these changes and so on and of course what you saw in Q1 last year was that A lot of the factories, they phased in a lot of their volumes into Q1 because they have so little to do in bike. And of course, they wanted to have any production that they could have. So they really, we got the orders a lot earlier. And they were also not as sensitive when it comes to cash management and so on. And now when factories are starting to fill up, of course, the capacity is more being optimized and more competitive. closer to the end market. So it's more like, and that's why we also see a facing effect.

Okay, very clear. Thank you for that. And just secondly, we are also on moto. I'm just thinking a little bit about the sort of quarterly seasonality here. I mean, you have a quite clear seasonal pattern, both in bike and snow, considering the variations in the sellout. I'm just curious, is there any such... sort of pattern you can say there was when we look at MOTO. I guess the historical development has been fairly volatile here if we took the absolute numbers on the quarters. So anything there when we look into 24 on the quarters and on the phasing to keep in mind would be helpful.

Yeah. So I think MOTO is probably the animal that has changed the most because in MOTO, there used to be a lot of pre-orders. So everyone was ordering for the fall and everyone was ordering for the spring. And there you could actually get 70% to 75% of your sales indication for the year. Given the challenging situation also with new standards and everything that has come into play, a lot of that pre-season order pattern has disappeared because no one wants to take risk on inventory and so on. So we expect a lot more flattish development over the quarter and much more cash optimization than what we have seen before, because you see that in most of the categories that people are optimizing cash flow. They order a lot more frequently, but smaller orders than they have done before. And we start to see that pattern also in Moto. So the whole seasonality thing, it will probably still be there a little bit, but not to the same extent as we saw in previous years.

Okay, very well. And just the final one from my side, if you could share, it would be quite interesting to know how many certified helmets are there with MIPS integrated in safety for Moto. you know, sell out in the market right now. How many models are there in total, both type 1 and type 2?

So if you will talk about exactly the day of the 25th of April, I think it is 22 models in total that have been certified and are ready for sale. And then, of course, there will come more.

Okay, guys. Thank you very much.

Thank you.

Thank you. There are currently no further phone questions. I will hand the call back to yourself, Max.

Yes, thank you. We also had a question if we had any patent infringement during the quarter, I assume. So no, at the moment we haven't pressed any charges or claimed any litigation in the patent infringement case. Of course, we are always scanning the market if there are things that we deemed to be infringing and so on. But we have not taken any of those actions in the first quarter. With that, of course, as a closing remark, we are happy with a stable quarter. Really good to see a lot of our categories starting to develop well. Important to note also for the year that we are not expected to be that helped by the consumer market. If the consumer is turning around and becomes a lot more positive and has more confidence, fantastic. But for us is more of a recovery year where we are relying much more of our customers buying from us instead of eating of inventory. And of course, rolling out all the fantastic products that we have done during the last two years. Thank you for listening in and then speak to you again after the Q2 results announcement.