Bang & Olufsen A/S
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Bang & Olufsen A/S
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Ladies and gentlemen, welcome to the Bang & Olufsen Interim Report First Quarter 2020/'21. [Operator Instructions] Speakers, please begin.
So hello, everyone, and thank you for joining the call. Today I will start by going through the highlights of the quarter and provide an update on how we are progressing and unfolding our strategy. Afterwards, Nikolaj Wendelboe, our CFO, will take you through our financials in more detail. Then I will go through the outlook for 2021 before we open up for questions. Our Head of Marketing, Digital and Customer Experience, Christian Birk, is also with us today and will take part in the Q&A session later. So if we move to Slide #4. For the first time in 2 years, we reported revenue growth. The revenue increased by 11% in local currency to DKK 462 million in Q1. The EBIT was negative DKK 39 million, and free cash flow was negative DKK 62 million. This was a significant improvement of the DKK 90 million and DKK 144 million, respectively, compared to last year. COVID-19 continued to impact our business as well as consumer behavior. We saw an increased demand for home entertainment products, while travel retail was negatively impacted by the decline in domestic and international travel. A key element in our strategy is a stronger focus on core markets and the monobrand channel. The focus yielded results in Q1 as we delivered solid growth in our monobrand channel, especially in our core markets. Our own eCom platform delivered strong growth in Q1 as it increased by 115% compared to last year. This was also a result of our efforts to strengthen our digital presence to cater for the changes in consumer behavior we saw in the quarter. Launching new innovative products is a key priority. And in Q1, we successfully launched 3 new products as well as 2 new brand collaborations. These have been well received in the market and supported by more focused localized sales and marketing plans, which I also will come back to in the strategy section. An important part of making the company profitable again is our cost program launched in March, and with a targeted annual savings of DKK 175 million. I'm pleased that this program is progressing as planned. Following the rights issue, we got into Q2 with a cash position of close to DKK 500 million, which allows us to continue to execute on our strategy and get through the COVID-19 crisis. We maintain our outlook with revenue of approximately DKK 2.2 billion, EBIT before special items of approximately negative DKK 100 million and free cash flow of approximately negative DKK 200 million. So if we please move on to the next page. In our strategy, we have identified 8 focus markets where we want to win before scaling our business. In Q1, we delivered strong progress in those markets driven by our monobrand network and higher demand for home entertainment among consumers. In the 6 focus markets in Europe, we saw a revenue increase of 6%. In line with our strategy, we delivered strong growth in the monobrand network, where revenue increased by 28% compared to last year and sell-out increased by 15% in the same period. The difference between reported growth and sell-out growth is related to last year's efforts to reduce inventory and not due to inventory buildup in the channel. Looking at sell-in versus sell-out, we can see that retail inventory in Q1 has been relatively stable.To strengthen strategy execution, we have added resources and new capabilities to our market organizations, especially within multi-brand and e-tail. This will allow us to strengthen our performance in the coming quarters. Our marketing budget has been reallocated to our 8 focus markets. And overall, we have had much more integrated and controlled go-to-market approach in local markets. Our 2 Asian-focused markets also reported growth with a 25% increase in revenue compared to last year. It is, however, important to highlight that growth was impacted by orders originally expected in Q4 last year, sell-out from our monobrand stores was 7% higher than last year. To cater for the changes in consumer behavior, we refocused our sales execution towards home entertainment products, which also resulted in an increase in revenue for Flexible Living and Staged products.So if we move to the next page. This year, we plan to launch more than 10 new and upgraded products, and we remain on track to deliver that. In Q1, we launched the first 3 products: E8 Sport; our new headphone, Beoplay H95; and a TV stand designed for our soundbar, Beosound Stage. In addition, we launched limited additions of Beoplay E8 Sports with Swiss running brand, On, and a super limited version of Beosound Edge and Beoplay E8 Sport with Fernando Alonso. The products have been well received, and we have seen a good traction on them, and I will elaborate a little bit more on them on the next pages.If we move on to the next page. In Q1, we entered into several new partnerships to support brand building and add scale to our business. In June, we announced that we will go into gaming. To do it effectively, we are teaming up with Xbox and partnering with one of the world's leading esports and gaming organization, Astralis. The latter will not only help build awareness of the Bang & Olufsen brand, but also enable us to leverage on Astralis' competencies and insights from the industry to support the development of our future gaming portfolio. Our upcoming gaming headset is planned for the Autumn 2021. We also continue to position our products' brand ambassadors. As mentioned, we entered into collabs with running brand On, and 2-time F1 World Champion and double 24-hour Le Mans winner, Fernando Alonso. We will continue to pursue similar brand collab opportunities in the coming quarters to help amplify our brand and expand our consumer base. When we present our strategy in April, we also highlighted that there were important growth opportunities we could pursue. One of them was distribution partnerships in the U.S. to scale our business, and we executed on that in Q1. In August, we announced that we were teaming up with Verizon to strengthen our coverage in the market. Through their website, we are now selling our soundbar, Beosound Stage, E8 Sports, Beoplay H9 and Beosound A1 second generation.Finally, this morning, we have announced that we will expand our collaboration with our digital transformation partner, Publicis Sapient. We have already been working with them on our e-commerce platform, but now extend our partnership to include go-to-market campaigns, digital services and launch our products. In short, the aim is to accelerate and scale our efforts efficiently in order to create demand for our products and bring new services to our customers.If we move to the next page. Another key element in our house has been to reignite our brand marketing. The 3 product launches shown here on the page are examples on how we have refreshed our brand expression and how the marketing is now targeting specific consumer segments. The new Beosound A1 is targeting the NC consumer segment on the products -- and the products are now much more in focus. Beosound A1 was launched in Q4 last year and is performing very well also in Q1. E8 Sport was our first product as we entered the sports category, which was further supported by the collaboration I just mentioned on the previous page with On and Fernando Alonso. Finally, the Beoplay H95 headphone has been well received. And here, we have also applied new tactics to work with influencers to connect with our target audiences. To create hype around the launch, we made H95 -- sorry, we made 95 special versions, marked from 1 to 95 in celebration of our 95th birthday, and we offered them in advance of the official launch. We sold them all out in a couple of hours.If we move to the next page. Because of our 95-year history and unique capabilities within design and craftmanship, we decided to leverage this with the Classic and Bespoke program. During 3daysofdesign, an important annual design event in Denmark, we presented our first pilot project with the classic program. With the Classics program, we aim to refurbish and reimagine some of our most iconic products. The first release will be the Beogram 4000 series. We're updating it for contemporary use while maintaining the integrity and timeless spirit at its core. We also have our Bespoke program, and we have announced the Beosound 1 Factory 5 edition in sapphire blue. We have only made 10 units in this unique colorway, which has been developed at our owner renowned Factory 5. Please turn to the next page. We have shown this slide previous -- in previous earnings calls, but I want to reemphasize how we intend to unfold our strategy. Currently, we are at the first wave of fixing the basics and making the company profitable again. In Q1, we continue to see good progress with our strategy execution despite the challenges with corona.And with that, I would like to turn over to you, Nikolaj, who will take you through the financial development.
Thank you, Kristian. Please turn to Page 12. As Kristian said, we have delivered our first revenue growth in 2 years and also delivered improvements in our gross margin and EBIT margin. The latter, not least, supported by the progress in our cost reduction program. Revenue increased by 11% compared to Q1 last year. The growth was driven by higher demand for Staged and Flexible Living products, which increased by 88% and 55%, respectively. On-the-go declined by 37%, mainly related to lower travel activity and sale of end-of-life products in Q1 last year of approximately DKK 90 million.Based on our like-for-like sell-out data, sell-out was overall increasing with 1% looking across channels, but with improved sell-out from our monobrand channel, which increased by 10%. The multibrand channel experienced a decline of more than 20% in sell-out, partly related to the decline in travel retail, but also reflecting our strategic focus on the monobrand channel in Q1. Looking at these growth rates, it's important to remember that we last year depleted retailer inventory and retailer sell-out was therefore higher than sell-in in Q1 last year.The gross margin increased by 6.1 percentage points compared to Q1 last year, which was mainly related to a shift in demand towards Stage and Flexible Living products. The gross margin from Staged and Flexible Living was also improved by product mix within the categories. The gross margin in On-the-go category was impacted by sales of end-of-life products and a negative effect from allocation of product-related capacity costs, which has a larger impact on revenue declines. The EBIT margin before special items was negative by 8.5%. This was 22.3 percentage points better than Q1 last year, driven by the higher revenue, better gross margin as well as lower capacity costs. The decline in capacity cost was mainly driven by a cost reduction program, where we realized DKK 31 million in this quarter, and we are on track to deliver our DKK 175 million target when fully implemented in 2021, '22. The savings realized in Q1 was mainly related to headcount reductions and non-product-related spend. Savings impacted both administration cost, development cost, distribution and marketing costs as well as cost of goods sold. Please turn to the next page. As mentioned by Kristian, increased demand for home entertainment had a positive impact on the Staged product category across all regions and the Flexible Living product category in Asia. Travel retail negatively impacted multi-brand in all regions. In EMEA, revenue grew by 14% in local currency. Growth was mainly driven by the monobrand channel. In the 6 core markets, the monobrand channel delivered a 15% year-on-year sell-out growth. In addition, last year was impacted by inventory depletion and thus lower sell-in and sell-out. This balance has also been normalized this year. The growth in the Staged category was driven by both existing speakers and TVs, like Beovision Eclipse as well as from Beovision Harmony and Beosound Stage, which were launched in Q2 last year. The decline in On-the-go was due to sell-in of end-of-life products last year, which was not repeated this year, partly offset by higher revenue from Bluetooth speakers with the new Beosound A1 launched in Q4 last year as the main driver. Americas declined by 3% in local currency. The decline was related to the multibrand channel, partly offset by higher revenue from monobrand, especially the U.S. was impacted by corona lockdowns in Q1. In Asia, revenue increased by 17% in local currency, driven by both Staged and Flexible Living, which increased by 132% and 162%, respectively. The decline in On-the-go was, among others, due to last year being supported by end-of-life products. Also here, partly offset by higher revenue from Bluetooth speakers. Brand partnering and other activities was at the same level as last year. The development was impacted by effects of COVID-19. Car manufacturing has been low during Q1 and hence also installation of audio systems. This development also impacted the production of aluminum components for third parties in the quarter. On the other hand, COVID-19 had an effect on working from home, an impact on PC sales increasing our license income from HP. Please turn to the next page. Our capacity costs declined by 16% in Q1 compared to Q1 last year. We saw cost decline in all 3 cost categories. Our development costs declined by 14%. This was due to a combination of higher capitalization and lower amortization. However, the incurred development costs were 8% higher and reflected our focus on product development, which is a key part of our strategy. Our distribution and marketing costs declined by 16% compared to last year. Part of the reduction was related to the cost reduction program. We also had a more focused digital marketing activation relative to physical presence due to COVID-19. Therefore, retail marketing spend was lower, and we also saw delays in development of retail stores. Finally, administration costs declined by DKK 5 million or 15%, which were related to the cost reduction program. Please turn to the next page. CapEx was DKK 3 million higher than in Q1 last year. Investments were primarily driven by intangible assets related to development of new products and technology platforms and also driven by capitalizations. Our net working capital increased by DKK 24 million, mainly driven by lower payables. In Q4 last year, we postponed some payments into Q1 this year as part of our working capital management to preserve cash before the rights issue was completed. These payables have been paid in Q1 this year. Free cash flow was negative DKK 62 million, which was DKK 144 million better than Q1 last year. EBITDA was positive DKK 5 million compared to negative DKK 74 million in Q1 last year. The negative free cash flow was therefore mainly related to working capital development and cash flow from investments. Our cash position increased to DKK 497 million, driven by the right issue completed in July, which raised DKK 357 million in net proceeds.Please turn to Page 16. Working capital management continues to be a very high focus for us. Inventory declined to DKK 413 million and was reduced by a further DKK 44 million in Q1. Trade payables was reduced to DKK 327 million, the decrease was partly related to the postponement of payments, as mentioned before. Finally, our trade receivables increased to DKK 331 million, mainly due to higher sales compared to Q4 last year, but partly offset by lower overdue receivables. The reduction in overdue receivables is very encouraging, but we are mindful that new COVID-19 lockdowns can change this picture fast, so we're carefully monitoring the development. And with that, I would like to hand it back to Kristian.
Thank you, Nikolaj. Before opening up for questions, I would just like to briefly go through the outlook and highlights. So if we move to the next page. The outlook for 2021 is unchanged compared to the outlook presented in our Annual Report on July 7. We saw good progress on strategy execution in Q1. As I stated before, the circumstances related to COVID-19 are extraordinary. It is worth restating that the outlook has a high uncertainty due to the lack of transparency arising from COVID-19. The outlook for 2021 depends on numerous factors, including the duration of the COVID-19 pandemic in relevant markets, impact on the economies in countries around the world and the financial and operational impact on our business partners. Based on the balanced view of potential scenarios for COVID-19, our outlook for the financial year 2021 is, therefore, maintained. Revenue of approximately DKK 2.2 billion, EBIT before special items of approximately negative DKK 100 million and free cash flow of approximately negative DKK 200 million.We maintain our plan to launch more than 10 new and upgraded products, whereof 3 products were launched in Q1 and one has already been launched for Q2. The EBIT before special items and free cash flow is further impacted by the cost reduction program we launched in March. Use of government relief packages in '19/'20 will adversely impact cash flow throughout 2021. We also mentioned in our previous communication we have considered the impact of an adverse scenario and an alternative scenario where the implications of COVID-19 are less severe. These are described in the Q1 report. So move to Page 19. So to summarize, we are pleased with the progress we made in Q1. We achieved double-digit growth driven by monobrand channel, especially in our focus markets and also driven by product launches and demand pattern for more home living products. We see the results as evidence to our solid strategy execution by the whole organization and our partners and the strength of our diverse portfolio of products. We also delivered DKK 31 million in savings as part of our cost reduction program in Q1, and I'm pleased that we are on track to deliver on our target of DKK 175 million. There's still a high uncertainty due to COVID-19, which will continue to impacting our business, consumers and societies around the world. But after the rights issue completed in July, we are going into Q2 with a cash position of nearly SEK 500 million which means that we can continue executing on the strategy. Finally, before going to the Q&A, I just want to take the opportunity to say a big thank you to the whole B&O team and our partners. Everybody has been working extremely hard to unfold the strategy during these uncertain times, and I'm very proud of the work that we have been doing. So thank you very much. They have been definitely the key for our Q1 improvement. So with that, I think we are ready for the Q&A.
[Operator Instructions] Our first question comes from the line of Poul Jessen of Danske Bank.
It's Poul Jessen. Can you hear me?
Yes, we can.
Okay. No. I have several questions. First of all, you mentioned that the online sale was up 115%. I think on Q4, it was said that online was about 6% of revenue. Can you say how much of the revenue now is online? That's one question.And then using that to look into the upcoming or current quarter with the Christmas sales, do you have an idea of how much of total revenue now, including third-parties, is being done online? I'm just getting -- trying to get an impression on what the risk is on social distancing and physical store closings and so on. So if you can give some insight into that area.
Poul, I will let Nikolaj take the first question, probably, and I'll give a stab at the second one myself. And maybe I'll start with the second one. In our strategy, as you know, we have different ways to market with the monobrand, the multibrand and with our own e-commerce. Our multibrand partners as well, as you know, have e-commerce platforms. And in the strategy, we said that we will focus, number one, on monobrands, which we did in Q1, but also then in second wave go for more multibrand partners and we're building that out and expect to have more multibrand partners in quarter 2 and also then have more e-commerce platforms from these multibrand partners and also have, of course, our own e-commerce platform in addition to that. So I feel we will be in a good shape to have coverage from eCom during quarter 2 and for the holiday season. And I'll leave to Nikolaj to answer the more detailed question on the revenue numbers. So Nikolaj, over to you.
Yes. So on the revenue side, Poul, all eCom is a little less than 5% of total revenue in Q1. But as Kristian rightfully say, when we add in the total mix of what’s sold through retailers and e-commerce partners, then you are arriving at a higher number. We don't have the exact visibility into how all mutual bank partners, for instance, divide the sale into whats going into physical and what's going into their eCom websites. But out of total revenue, we are a good around 10 percentage points in Q1 for sure.
Okay. And then Kristian, you said that there would be more multibrand partners in the second quarter. Can you put some names around who has been on-boarded on the multibrand side?
We cannot do that before we announce it. But as you know, that was part of the strategy from the get-go as well. So we have been making progress on that, and we will soon announce.
Okay. Then they come here and there. A question on the gaming, where you announced the partnership with Astralis. As I recall it back in June when you announced the partnership with Microsoft on the Xbox, then it was said that there would be a gaming product in the market at the Xbox launch. Now on the Astralis announcement, you say about that there will be headphones in the market in the Spring. Can -- I read that as there is some delay in the product and both can you comment on what's happened here? And secondly, is that going to be a material impact on your full year expectations that you are missing out on the Christmas and potentially 4, 5 months of revenue on that segment?
Let me start with that. First of all, we don't want -- as you know, my policy and principle is that I don't announce products nor product announcements or whether products are delayed or not. But we -- when we build our portfolio up and we build our business up, there is always shifts in between different opportunities, different channels and different products that have better opportunities. Of course, we try to manage our numbers within -- with those difficulties or with those opportunities. It depends on how you see it and have the flexibility to move between different things. So when we have, and if we have, delays, we don't want you to, of course, detect them. We don't want the business to be dependent on that. That's all I'm going to say on the delay question. So we try to mitigate and work around all of those always. And Birk will answer more specifically on the Astralis partnership.
Yes. Thanks for the question, Poul. So first of all, I think we are committed, as we said, going into gaming. We have the Astralis partnership, and we have also Xbox, as we have announced. We don't, as Kristian said, disclose what that encompass in terms of products. But I think it's fair to say that we want more than just products out of these partnerships. It's also a go-to-market impact and an actual messaging exercise that we want to drive also from a channel perspective. So products is one side of the intent, but we have bigger intent on the overall partnership and gaming proposition.
Okay. And then the last one for me for now. On the cost-cutting program, DKK 31 million in the first quarter, just to get a clarification, the DKK 175 million, is that the savings you're going to get for the full year? Or is that the run rate leaving the fourth quarter?
So the DKK 175 million is full year impact when all initiatives are implemented. That's why we're saying there should be a full year impact we can expect in '21, '22 when fully implemented. So the DKK 31 million is the quarterly impact that we have this quarter, specifically, which in principle you can say we implemented, 1/4 of DKK 124 million then sort of as a guiding principle here.
So the run rate in the remaining 3 quarters on average should be closer to DKK 50 million?
The run rate that we have on Q1 for DKK 31 million is an annual run rate of DKK 120-ish million, right? So -- but we're still implementing new things in the program that will add to the DKK 175 million in fully annualized run rate when we are done.
So there will be a positive impact next year as well?
That's our expectation.
We've got one further question in the queue. [Operator Instructions]The next question comes from the line of Niels Leth with Carnegie.
So I have a few questions. Let me take them -- a couple of them here. So could you talk about the effect of the Amazon Prime Day being delayed from your fiscal Q1 into the fiscal Q2 period? Secondly, could you talk about your gross margin in your important EMEA region? So what would it take for your gross margin to grow well above that 40%? Is it simply just a matter of higher sales? I'll stop there.
So maybe I go first on Amazon Prime Day. So obviously, it happens when it happens, and we take part of some of them and may not take part of other of these initiatives. So that's all I'm going to be able to say on that right now. And then I'll leave for Nikolaj to comment on the gross margin.
Yes. So gross margin in EMEA. Well, first of all, I think you noticed that we are 6.2 percentage points up compared to Q1 last year. And that's, of course, a combination of managing the channels and the partners better. We now have a sort of a healthy way of doing business with our partners, where we moved away from selling with a lot of discounting. But we also have a newer product portfolio, of course, that increases margins and relationship in the commercial terms with our partners. But you're asking what does it take to bring it above 40, and I don't think we will sort of make a specific plan for that while we sit here. But of course, gross margin is a combination of pricing your cost of goods sold and then, of course, the level of discounts and allowances and campaigns you're running in the business. So that's the 3 things that we are constantly working with. And I think we have initiatives going into looking at our COGS at the moment as a part of the cost out program. And that will, of course, also impact gross margin positively over the coming years and quarters.
Okay. Great. Perhaps I could just take a couple of more questions. Could you update us on the status of your ASBIS collaboration? And also, could you update us on the renewal of your contracts with HP and LG?
So ASBIS, we have signed up, we're working well together with them. Obviously, it takes a bit of time to transfer responsibilities and onboard all the countries that they are present in. So I feel we are doing that in a good way and as fast as you can expect. They are not fully operational just yet, but they are close of being so. When it comes to our contract partners that we have in brand partnering and licensing, the contracts are, I mean, not up for renewal right now. And then obviously, we are working together with our partners in this respect, HP and HARMAN. And we're constantly looking at opportunities with them. And I don't think we see any reasons to believe that the contracts will not be renewed. But it's too early for that.
[Operator Instructions] So no one else has come forward. So I'll place you back. Please go ahead.
So thank you everybody for joining today's call and all for your questions as well...
Sorry, sir. Sorry. You had Niels Leth from Carnegie to go ahead with that next question because no one else has joined the queue in front of them.
Okay. Great. Then I have a few more questions if time allows for that. So my question would be, what proportion of your group sales comes from airport retailing? That's something that you highlight a couple of places in your Q1 report. And also, could you talk about the performance in this quarter between the beginning of the quarter and towards the end of the quarter? Was it stronger towards the end of the quarter or was it weaker towards the end of the quarter?
So maybe I'll take the second question first, and I'll let Nikolaj take the first question. So obviously, when we went -- if you go back even to Q4 when we exited Q4 and went into Q1, it was a pretty tough situation. COVID just kind of starting to go away and stores starting to reopen. When we look at the situation in the world right now, I think we are in a much better shape when we are leaving -- left Q1 and moving into Q2, generally speaking, and that's all I'm going to say.
Yes. So on travel retail, so travel retail is many things because you have travel retail stores in airports, of course. And they are down by 90%, something like that, compared to what we would normally see. That channel is really, really having a difficult time at the moment. But then you also have retail that is travel-related but is done in sort of regular multibrand or monobrand stores because you buy your travel accessory not necessarily in the airport. And that makes it difficult to sort of say what is travel-related sort of as a number, but we are quite confident that the overall negative development that we see in a multibrand is also related to traveling, being down and having an impact on the sort of the purchases that you see in multibrand that is normally travel-related. So we won't give you sort of a travel number, but at least we can say that the airport stores are 90% down compared to last year, 9-0.
And how many stores do you have placed in airports?
I can't get -- I can't give you that number specifically right now. We can come back to that maybe at a different time.
And also, Poul -- sorry, yes, Poul Jessen from Danske Bank has rejoined the queue.
Actually, I thought it was registered before. But a few questions about the sourcing. You mentioned that there has been some delay because of component issues on some of the products. Talking to at least European franchisees also get reports that there were some issues during the summer, for instance, the A1 and also that I can see on your own home page that the H95 was -- in black, was very early sold out. Can you comment on the sourcing and the planning towards the Christmas now also that your own inventories are coming down to levels from before your recent crisis?
Thank you, Poul. Kristian here. You're right, and there is increased demand for certain components in the market, and we're working very, very closely with our partners on securing components to make sure that we can supply for Q2. So far, we have done well to secure that. We have -- just coming back to H95 question, and you see a longer lead time on some products. We have had good demand on H95. We have had good demand on a few other products as well that have impacted lead times for those products. And we're, of course, working hard to get back on more normal lead times that we had previously. So there is some delays in the supply, but I don't expect that to have, at least the way it looks right now, any material impact on our quarter.
Okay. And then on China, there were the -- some issues at the end of the fourth quarter into this quarter by delays on postponement of purchases from Chinese partners. How has that developed throughout the first quarter? Is that fully normalized now? Question also relates to one of your partners who had to cancel capital increase just last weeks, which should have been what was defined to go for working capital. Are there any issues in the Chinese market on the normalization of your sell-in?
So if you take the Chinese partners, I think we're all working well with them. And like you correctly point out, sometimes you can't control how orders fall in between different quarters. So we had a delay in quarter 4 into quarter 1. And then we actually had a little bit more into quarter 1 than we expected this time. So it sometimes falls in the quarter, sometimes it falls out of the quarter. But to my knowledge, at least, we have good working relations with them, and the business is going well with them.
Okay. And the final one from me on the trade receivables. You say that the overdue receivables has come down. They were quite high in the fourth quarter. Can you give a number of how low they have got now?
Yes. So our overdue trade receivables are actually down to what we call sort of pre-corona level. So we've seen actually a movement of almost DKK 40 million in the quarter of overdues coming down. But I think it's also important for me to say that a lockdown or a sort of local lockdown in a country or in a city can change the picture quite fast. But the Q1 development has been encouraging, definitely.
So we are now down below DKK 100 million in overdue?
Yes. That I can confirm.
And as there are no further questions at this time, I'll hand back to our speakers for the closing comments.
Okay. So I'll give it a second go now. And so thank you, everybody, for joining and for all your questions and all your support. And if you do have any further questions, then please reach out to Martin and we will try to clarify. So I wish you all a good day. Thank you very much.