Ambu A/S
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Ambu A/S
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Ladies and gentlemen, welcome to the Ambu Q1 2017-2018. [Operator Instructions] Today, I am pleased to present CEO, Lars Marcher. Please begin.
Thank you, operator, and welcome to the conference call and announcement of Ambu's first quarter 2017 and '18. And with me today, I also have my CFO, Michael Højgaard.On Slide 2, you can see the agenda for the call. We have chosen that today and I'll start out with Q1 highlights and key figures. Then I'll move into a closer look at the potential in the business area we call Visualisation, including an update on the activities relating to Invendo Medical that we acquired early in Q1. Michael will take you through the financials, and I'll update you on our outlook for the year. And as usual, there's an opportunity to ask questions before we conclude the conference call. So now let's take a look at the Q1 highlights on Slide #3. It's been a very busy quarter for Ambu. We've had a Capital Market Day in London, launching our new Big Five plan, acquisition of Invendo, capital increase and planning for our bond expiry and meetings with hundreds of shareholders. We've increased our shareholder base with more than 34% since Q4 results. So also here, we see a lot of momentum. With this quarter, we have now taken the first step on our Big Five 2020 journey. We are on track and the Big Five plan that is fully embedded in every activities amongst our almost 3,000 employees. We see strong organic growth of 14% on top of a strong Q1 last year of 11%. That's very satisfactory and the highest Q1 growth since I joined Ambu in 2008. We are suffering on the growth in DKK due to the weak U.S. dollar. The reported growth in Danish kroner is 8% due to the weakening of USD in relation to Danish kroner. However, this does not diminish the fact that Ambu's business has a lot of momentum. As expected, we have high single-digit growth on Visualization and on track for the year on our Core business. Our sales of single-use endoscopy is up 76% percent versus Q1 last year, measured in units. We see no signs that the interest in our endoscopy's product is weakening [ off ]. And I'll get back to this part of the business later in the presentation. We're still on track for the annual guidance of our core of between 4% to 5% organic. We keep improving our earnings and we have added 3.8 percentage points to our EBIT margin this quarter. In DKK, we have increased the EBIT from DKK 65 million in Q1 last year to DKK 91 million in this quarter, which is almost an improvement of 40%. The effect of FX on the earnings of the quarter is very limited. This is a very strong result in the lowest revenue quarter of our financial year. We continue to optimize our operation, and we see no pushback beyond what we expected on our pricing.We have implemented a stock [ ambition ] in Q1 that provided the right amount of financial power to implement the activities behind our Big Five, such as further increase of our commercial sales force. We acquired Invendo Medical on the 25th of October 2017 and the integration into Ambu's business is on schedule. We received FDA clearance on the first Invendo product in January, which gave us license to move in the U.S. I'll go into more details on this later in the presentation on the Invendo activities and Visualisation in general.And as you will see, we adjusted the full year outlook upwards with regards to our EBIT margin and free cash flow. Now let's turn to Slide #4 and look at the key figures for our Q1. We see solid improvement year-on-year on the key figures. The organic growth of 14% is an increase of 3 percentage points compared to Q1 last year. And as you can see from the graph, we have generated double-digit growth for the past 5 quarters. The growth in Danish kroner was 8%, which gives us a revenue of DKK 553 million, upward DKK 41 million compared to Q1 last year. The gross margin for the quarter was 58%, which is an improvement of 4.3 percentage points. And we believe this is a sign that we've managed to run a healthy business with intelligent internal processes, strong scale in manufacturing and protection of our pricing structure across our products. On the earnings side, we see an improvement from 12.7% EBIT margin in Q1 last year to now 16.5%. This is a very solid increase of 40% on our earnings and a Q1 EBIT margin that gives me a lot of confidence that we can reach our earnings for this year.All in all, this first quarter of our Big Five 2020 strategy shows that we continue to increase our top line and, at the same time, grow our earnings. It is important to mention that despite the weakening in USD, Ambu has almost natural hedging when it comes to our earnings and our EBIT margins.Now let's have a look at the Q1 growth in the split of our business areas on the next slide, which is #5. In Q1, PMD, which is our Patient Monitoring & Diagnostics sales, were up 4% in local currency and 1% in Danish kroner, totaling our revenue of DKK 188 million. This represents an increase in organic growth related to Q1 last year where growth was 0%. The 2 largest product areas in PMD are electrodes for cardiology and electrodes for neurology, which both contributed in terms of growth of 5% and 6%, respectively, in the quarter. PMD accounted for 34% of Ambu's total revenue in Q1 against 36% in the prior year. We are on plan on PMD, but it's still expected to generate growth of approximately be 3% to 4% for the financial year. Our sales in Visualisation increased by 58% in local currency and 50% in Danish kroner, reaching DKK 158 million. And Visualization accounted for 29% of our revenue in Q1, which is up from share of 21% in Q1 last year. Growth in Anaesthesia was 0% in local currency and minus 6 in Danish kroner with a revenue of DKK 207 million in Q1. The relative share of revenue was lowered to 37% from 43%. The 3 major product lines within Anaesthesia are laryngeal masks, resuscitators and breathing circuits. The 2 first of these have solid growth of 7% and 8% organic in the quarter. However, breathing circuits had a weak quarter, with negative growth of 6% due to timing differences in the markets in Latin America. If we adjust for the breathing circuits on the growth in Anaesthesia, then we total 4% overall. Against this background, growth in Anaesthesia is in line with our expectation and growth of approximately 5% organically is still expected for Anaesthesia for the financial year.Let's turn to Slide #6. The 3 sales region posted double-digit growth for the quarter and you can read the revenue and revenue split on the slide. This is a fantastic momentum and shows that Ambu has well-functioning sales teams and that our product offering is universal. The organic growth in North America was 16%. A particular positive development in sales of endoscopy product is seen in the U.S., which is reporting the highest growth for all markets. This is a significant and top growth of any of our peers. In Europe, growth came in at 12% versus 5% last year, both in local currency and in Danish kroner. And high growth was seen in all markets. Anaesthesia was low for the quarter due to timing differences, while the sales of endoscopes contributed with high double-digit growth. Growth in the Rest of the World was 11%. We see negative growth of 5% in Anaesthesia because of the impact from the timing differences I've talked about before in breathing circuits. Adjusted for this, growth in Rest of the World stood at 26%. The growth is distributed evenly more, with double-digit growth on all major product groups, except breathing circuits. Let's turn to Slide #7 for a more detailed status on our endoscope sales. The sales of single-use endoscopes has increased by 76%, measured in units, compared to Q1 last year. This means that we have sold 104,000 scopes in Q1. And as previously mentioned, we expect it to reach 500,000 units within the full year. The competitive landscape surrounding single-use endoscopes is unchanged and we do not see any competitors that can challenge our positions right now. Last year, we launched the aScope 4, and in Europe, we are in process of up-selling as many hospitals as possible. We are still waiting for the FDA clearance for aScope 4 in the U.S. However, this is per plan and will not have any impact on our businesses' financial year. I do, though, expect FDA clearance sometime in Q2.I just returned from Malaysia and opening our new factory. As you know, we have, during the past year, built a new manufacturing site in Malaysia to expand our aScope capacity significantly. As planned, commercial production of aScope at our new factory in Malaysia started up in January 2 and, consequentially, our available capacity is now around 1 million scopes a year, with this possibility of increasing production to almost 4 million scopes in a short notice.On Slide 8, I just want to summarize the highlights from the quarter, and I'll go into more detail on our Visualisation area and how we see the road towards 2020. So then we go to Slide #9.Ambu continues to drive the disposable bronchoscope revolution, and as you saw on Slide #7, our endoscope sales growth continues with unreduced pace. Looking ahead, we see 3 strong growth drivers for Visualisation that will accelerate our business further.Number one, despite only having penetrated [ the buying ] in about 7%, we see strong indication that the [ adoption ] of aScope amongst many of our customers is broader. And evidence of the market-wide [ adoption ] for the entire bronchoscopy category is no longer a vision, it has been firmly established. 85% of our sales are now generated from very large hospitals with more than 200 beds. And the share of our growth from existing accounts continues to increase. A large number of our accounts using aScope more than reusable scopes today.Number two, the recent expansion of our sales force in the U.S. is now fully implemented, and we are set to bring aScope account penetration to the same level as seen in Europe. U.S. market share below U.S. -- Europe has been lower due to the later start we had in U.S. when we launched aScope back then.Number three, our recently launched aScope 4 will further strengthen our position of the operating room and critical care settings but also opens a new part of the market for us, namely the broncho suite and up to 2 additional million procedures annually. We're now on Slide #10. The growth in Visualisation will have a significant transformative impact on our company's profitability already in this strategic period. By 2020, we expect half of our business to be within our high-margin Visualization products. We have completed sales-force splits, that means between Core and Visualisation, and expanded significantly in all major markets on Visualisation. The hospitals have centralized the procurement of flexible endoscopes. So by adding new visualization categories, we create economic subscale in our commercial organization. Lastly, we have invested in a major expansion of our production facilities, as I mentioned, which will further drive our profitability as we expand.Looking at the need for disposable endoscopies in the market, we see a strong pull from all parts of the market. The U.S. health authorities has increased its rhetoric on guidelines on scope cleaning to lower risk on patient infections. The recent annual report on top 10 medical hazard list contaminated scopes as the second-biggest hazard for 2018.In an environment like the hospitals, as well as our payers, are very open to new solutions. At the JPMorgan conference a few weeks ago, I spoke with several hospital administrators who are just waiting for the opportunity to get going on disposables and the quote on the right is from one of those people. As the quote states, introduction of disposal platform is much more than just one-to-one solution to reusable products. It can improve the way the procedures are performed, both in terms of efficiency and quality.Finally, this is an area that has seen no product innovation for the past 30-or-so years. And based on our research, there's a big anticipation from users to try the new disposable concepts.In G.I., where the bulk of the procedures are screenings for colon cancer, the majority of the patients are between 50 and 65 years on the private insurance in the U.S. This -- or the ability to offer these people and their insurer a single-use alternative should not be neglected as a major driver for establishing a new mindset in this market.We're now on Slide #12. What Ambu can offer with a full range of disposable solutions is much more than eliminating risk of cross-contamination and improve patient experience. Today, hospitals are in the pocket of primarily Olympus that sits on close to 80% of the G.I. business, whereas specialty segments have to argue against the use of Olympus scopes in their settings against hospitals purchasing [ bots ]. These often highly complex hospital-wide contracts reduce flexibility that often make the hospital dependent on one supplier for products and services. Also, the hospitals' investments significantly and spend resources on scope cleaning and logistics and expense that increases with restricted guidelines we see coming on. The bottom line here is that Ambu will be able to offer a simple solution, eliminating all other aspects than the scope itself.With our acquisition of Invendo, and we are on Slide #13, we are set to start expanding our offer of single-use flexible scope into the G.I. area. The reasons that this is the right starting point is precisely that hospitals purchasing is heavily influenced, if not controlled, by the G.I. suite performing up to 8 out of 10 endoscopies. A strong offering here will open the entire category for disposable solutions. As we execute on our Visualisation road map, and we are on Slide #14, we will drastically increase our addressable market. Today, the total Ambu business, which is Core and Visualisation combined, is operating in a market potential worth approximately DKK 20 billion. With a full offering in flexible scopes in 2020, the market potential will increase by a factor of 8 to close to DKK 160 billion. It is a needless to say that Ambu is 100% focused in developing, manufacturing and delivering the Big Five endoscopy products to the hospitals before 2020. And the Big Five in our terminology is a gastric product, a duodenum product, pulmonary product, urology product and obviously also a colon product.We're now on Slide #15. We are working focused on with speed to position Ambu in the endoscopy market. We're focused on establishing a production and supply setup that will be able to accommodate a global launch into these high-volume markets. We expect this process to be completed within a year. We are ramping up both R&D and our commercial teams. And since our acquisition of Invendo, we have doubled the number of employees in the organization. Right now, we are selecting strategic hospitals in the U.S. that will work with us to further refine our products and clinical evidence, and I expect that we will be ready for real market launch early next year in our financial.And with this, I will now give the word to you, Michael, for a more in-depth view on our financial results. Over to you, Michael.
Thank you, Lars. And we're now on Slide #17. From our Q1 report, you can see that we've calculated the fair value of Invendo Medical. The fair value is calculated at DKK 1.4 billion or EUR 190 million. We've used a risk-weighted cost of capital at 18%. Nearly half of the purchase price is made up of contingent payments, which fall due in installments in the period up to 2023, when FDA approval is obtained of up to 3 scopes and provided the total sales of these products towards 2021 exceed DKK 200 million.Over the coming years, we expect to pay all contingent milestones and earn-outs. This brings the nominal acquisition price to EUR 225 million.The difference of DKK 35 million will pass through our financial items over the coming years as a time value from the contingent payments. And in Q1, we have expensed DKK 27 million on [ this account ]. While for the full year, we expect this noncash item to be to the tune of DKK 90 million or EUR 12 million.On -- we are now on Page 18. The calculation of the purchase price in Q1 is not final but is expected to have been completed before presentation of the interim financial statements for the first half. The allocations of the purchase price will fall into 3 major categories: technologies, deferred taxes and goodwill. Technologies are tentatively valued at DKK 683 million or EUR 92 million, which are again allocated to the 3 products and amortized over 15 years. The amortizations will start when the products are commercially ready. Deferred taxes are valued at DKK 194 million and the residuals appear as goodwill at DKK 904 million or EUR 121 million.In note #9 in our report, you can see more details on how the allocation of the purchase price has been done.Let's go to Page 19. We posted revenue of DKK 553 million in the quarter, and that represents a growth of 14% in local currencies and 8% in Danish kroner. The lower growth in local currencies is mainly due to the average dollar versus kroner, exchange rate having dropped by 8% quarter-over-quarter. Our gross margin for the quarter ends at 58%, which is an increase by 4 percentage point over Q1 last year. The improved margin is ascribable to the increased economies of scale created by product mix from the growth in Visualisation and revenue growth in general. But this improved the scale efficiency of our factories. In addition, we are continuously working to optimize our production and supply chain, which as well has yielded improvements. Our operating expenses totaled DKK 230 million for the quarter compared to DKK 210 million last year. Capacity cost includes 2 months of operating expenses in Invendo and expenses incurred in connection with the expansion of the sales force in the U.S., coming to a total of approximately DKK 10 million and thus accounting for nearly half of the increase in cost measured in Danish kroner. A medical device tax was introduced in the U.S. back in 2013, which for Ambu resulted in additional tax just below 2% on the revenue generated in the U.S. The tax was subsequently suspended with effect from 2016 and '17, but was expected to come back into force now in January 2018.Late in January, however, the suspension was extended for additional 2 years until the end of 2019. EBIT for the quarter ends at DKK 91 million, which is 40% above last year, with an EBIT margin of 16.5%, up 3.8 percentage points over last year. The impact of exchange rate on EBIT for the quarter was very limited.Financial item contains, as mentioned, noncash items relating to Invendo with regards to the time value of the contingent payments. Net results are hereafter posted at DKK 19 million compared to DKK 48 million last year, including DKK 19 million of a one-off writeoff of tax assets in the U.S. due to the tax reform. Except for this one-off, we expect the blended tax rate for Ambu group to remain in the range of 23% going forward. Please turn to the next slide for free cash flow and balance sheet. On Slide #20, you see that the cash flow from operating activities totaled DKK 87 million for the quarter or an improvement by 2 percentage point over last year to now 16% of revenue.Cash flows were positively affected by lower level of funds tied up in receivables and negatively impacted by increasing inventories based on the high sales in Q4. In addition, cash flow from operating activities were positively affected by lower tax payment as a result of timing differences.Investments in noncurrent assets totaled DKK 51 million, in line with expectations. As concerns to the new factory in Malaysia and the acquisition of the factory being leased into [ 2009 ], a total of DKK 11 million was paid in Q1. The remaining payments, totaling DKK 42 million, fall in the current financial year. Combined, investments for the 2 projects, including the amount paid last year, are expected to come to a total of DKK 94 million.Year-to-date, total investments equal 9% of revenue, of which 2% can be ascribed to investments in buildings. Free cash flow before acquisitions here after totaled 7% of revenue compared to 8% last year. Acquisitions of businesses totaled DKK 850 million due to the Invendo Medical acquisition. Cash flow from financing activities accounted to DKK 850 million, including a 2.9% increase of our share capital back in November and a dividend payment of DKK 74 million.Total net interest-bearing debt at the end of the quarter was DKK 980 million, corresponding to a 1.7x EBITDA. In March 2013, Ambu issued a corporate bond loan of DKK 700 million, which is due now in March. Our expectations are to repay the loan in full out of existing credit facilities, which amount to DKK 2 billion. And now Lars will go through the adjustments to our full year outlook.
Thank you, Michael. And this bring us to the outlook for the full year. We maintain our expectations for organic growth in the level of 13%. However, in the light of our Q1 result, we feel slightly more positive about the full year, and therefore, raised the outlook for our EBIT margin from -- in the level of 20% to now between 20% and 21%. And we also raised the outlook for the free cash flow from the level of DKK 275 million to now the level of DKK 300 million. This means that we are back to where we were guiding you at the Capital Market Day, October 4, with the incorporation of all additional GAAP cost from the acquisition of Invendo. We see this as a very positive development.So with these targets fine-tuned, let me just summarize the quarter on Slide #22. With high growth and sound earnings, Q1 marked a solid start to our Big Five 2020 strategy. The Big Five is launched globally and the spirit and motivation is very high amongst our almost 3,000 employees. Our Visualisation business keep us -- keeps up the pace and continues to grow. And our single-use solutions offer advantages to hospitals. And with the acquisition of Invendo, we are moving into gastro area, which holds significant potential for us. The past years of investments into our infrastructure means that we now have a scale that has a positive impact on our profitability. At the same time, our products mix and low-price erosion support our expansion of the EBIT margin.We are in the process of integrating Invendo into Ambu business and we proceed as per plan. We have lifted our full year outlook slightly with regards to EBIT margin and cash flow. In addition, we have today announced that we initiated a share buyback program to cover share-based incentive programs. The upper limit for the buyback is 3,850,000 shares at a maximum value of DKK 560 million. And with this briefing and our commercial and financial performance in Q1, I would like to open up for questions. Over to you, operator.
[Operator Instructions] And our first question comes from the line of Thomas Bowers from Danske Bank.
A couple of questions from me. Just to kick off with the guidance for the full year. I'm just wondering, what is the reason for you to maintain the organic growth outlook? I mean, you have 14% for Q1 and that is even including the timing issues in Anaesthesia. So that's the first part of the question on guidance. The second part is on the aScope guidance or the Visualisation unit sale. You -- in connection with the Capital Markets Day, you state that you expect to reach more than 500,000. And now you sort of changed the wording to in order to reach 500,000 units. So is there any concerns here that you may see slightly lower sales of the aScope during the year? And then next question is just on could you maybe give us some color on the U.S. aScope sales? I understand you have increased your regional reach or with the direct sales force compared to the collaboration you have for the Tri-anim. So I'm just wondering, how many U.S. hospitals do you address now? Will your own sales force compare to it previously in the U.S.? And then just finally, could you maybe give us some updates on China and then Japan in regards to the aScope launch? And then, how you are doing there?
Thank you, Thomas. I'll try to take most of the questions here. In terms of the guidance for the organic growth, we have the 13% kind of guidance for you. We still believe that that's a fair kind of growth rate to have in your models. As you also can imagine, that this has also very much to do with the momentum on our Visualization platform. So if we are seeing some positive uplift, then obviously that will have a good positive impact on the 13%. But at the first quarter of the year, we still want to maintain that growth potential. In terms of the aScope, maybe it's just a matter of wording, Thomas. It's not meant to confuse you. But we still believe, and we have a target this year of reaching more than 500,000 scopes. So we had a good start of 104,000, which is normally our slowest quarters, then we feel confident that we are going to get very close to that number. In terms of aScopes penetration in U.S. what has happened, as you all know, is that we have split the sales force between Visualisation in U.S. and also the Core business. That should give us 2 things. It should give us more momentum on the aScope penetration, but it should also give us more momentum on the Core business. And therefore, I'm happy to see that U.S. is getting back on track on the Anaesthesia growth, it's 2%. We still need to do a little bit more there, but we are on track. And I'm also very pleased to see that in terms of the growth of aScope, that this is the highest growth area we have anywhere in our organization. So it seems like the formula works out pretty well. In terms of the number of accounts, just a rough figure here right now is that we are getting close to about 2,000-plus accounts in U.S. Last year, at the same time, we had roughly about 1,100 to 1,200. So we continue to get new accounts in both. But evenly as important, we get a much deeper penetration into the hospitals, which we also show in the presentation, that the big hospitals are starting to use aScope even more, which is very positive trend for us.
And then just on China and Japan? And maybe if I can just ask once again on...
On China -- yes. Sorry, China and Japan, well, the reason I was maybe quiet is that there are not much more to report. We have our aScope 3 basically certified and approved for the Chinese market. And we are unfortunately still waiting for what we call the pricing codes in the Chinese market. The pricing code is quite important because if you don't have a code in your systems in the hospitals, it's hard to order the product. And it's been a little bit frustrating to me that we haven't been able to get that when we have the approval for the product, but we're working as hard as we can to get that established. When we have the pricing code and the aScope 3 approved, then obviously we expect that we'll have -- we'll have some add-ons to the growth. And I'm not prepared right now to talk to you about how much that is going to give us. Japan, we are -- we're running fine. As you also know, we are investing more into the Japanese market than we have done before with our own sales force. And they are going to help us to position the Visualisation program from now on and to 2020.
Okay. Can I just follow up on my second or third question, whatever it is, in regards to the U.S. market? I just wanted to find out in regards to the collaboration you have for the Tri-anim. So how many hospitals or -- did Tri-anim have on its wings last year compared to now? Because it's my understanding that you have increased the share that you have for direct sales, if you understand what I mean?
Yes, that's a good question, Thomas. As you remember, Tri-anim -- well, if you go a year back, they are probably doing more than half of our business in the aScopes. Today, we are looking more into a 50-50 in terms of the sales there. And with the kind of new setup we have with Tri-anim where Ambu has taken back more than 2,000 hospitals in the U.S. not because Tri-anim were not doing well, but simply because they couldn't reach them with their resources. Then I foresee that the direct sales in U.S., the direct Ambu sales of Visualisation will increase and get to a, let's call it, a 60-40 kind of split as we finish off this financial year. And that, by the way, should also help us to increase the overall kind of pricing in the U.S. market because we, of course, have a higher price when we sell direct than when we sell through the Tri-anim sales force.
Okay. So you mean a 60% Ambu share and 40% Tri-anim share, of course.
Yes. As a kind of an indication, Thomas, I mean, this is [ not ] some kind of a mathematical formula, but we just see that with the expansion of our sales force that we obviously will get more momentum on the drive side.
Our next question comes from the line of Niels Leth from Carnegie.
A couple of accounting questions to start with. Michael, you mentioned that when it comes to the fair value adjustments, that you would expect DKK 90 million of fair value adjustments for fiscal '18. The DKK 90 million figure, is that the total amount of fair value adjustments? Or is that the total net financial items line?
Niels, what I said was that the accumulated financial impact from Invendo to our P&L over the coming years is going to be the DKK 35 million that I mentioned. In this quarter, we have posted DKK 27 million. And for the year, we expect to post DKK 90 million. So the remaining EUR 23 million are going to be phased into our P&L over the coming years.
Okay. But the DKK 90 million fair value adjustment you mentioned for fiscal '18, so that's the fair value adjustment only?
Yes.
It doesn't include net interest-bearing cost?
No, that amount needs to be EUR 12 million. And that amount is -- the only thing that is, is the value of the free interest that the seller has offered to Ambu and which we would pass through our P&L in 2017, '18. And this is a noncash item.
Okay. Secondly, when it comes to amortizations related to the capitalized technologies relating to Invendo, you are talking about, I think, DKK 683 million over 15 years starting from the point of the introduction. So would that implicitly mean that we should expect DKK 45 million of annual amortizations relating to Invendo to hit the P&L as soon as the product is introduced?
Over time, when the products are fully phased in, you can expect to the tune of the DKK 40 million of yearly amortization. But the big question mark here is that the product will -- or the amortizations will only start once the products are commercially ready. And the products are not commercially ready this year, but are expected to be over the course of next year and so on. So we've not said when those amortizations are going to kick in. That, we will guide you when we come up with our '18, '19 guidance.
So that will not -- so the full DKK 40 million will not hit the P&L in fiscal '19?
Maybe not. But we would guide you once we are more confident on that side of the business.
Okay. And then a question on the pricing of your colonoscope. Have you come any closer to where you will -- would be pricing this product to start with?
Well, Niels, what we have -- we have covered a lot of intelligence in the last couple of months. And we believe that the pricing of the colonoscope will be very close to the pricing where we had our aScope right now.
Okay. And when it comes to the processor, you're still sticking to a price of between $20,000 to $25,000?
That's correct.
[Operator Instructions] And as we appear to have no further questions, I'll hand back the conference to our speakers.
Thank you, operator, and thank you all for the questions and for listening in today. I look forward to report back to you on Ambu's result for the half year on the 7th of May 2018. I wish you all a good day. Thank you.