Schouw & Co A/S

CSE:SCHO

Earnings Call Transcript 2021-Q1

[Operator]

Ladies and gentlemen, thank you for standing by. I'm Haley, your Chorus Call operator. Welcome, and thank you for joining the Schouw & Co. Conference Call 2021 Q1 report. [Operator Instructions] And I would now like to turn the conference over to Mr. Jens Bjerg Sørensen, CEO. Please go ahead.

[Jens Bjerg Sorensen, President, CEO & Member of Management Board]

Thank you very much for the kind introduction and also from our side, welcome to this presentation. Overall, we had a very satisfactory quarter. Our revenue was up 2% to DKK 4.9 billion. General, we experienced a lot better activity during the quarter than expected. We saw strong demand from many of our markets and segments. At group level, EBITDA increased 12% to DKK 486 million. In general, we saw very strong margin development, and we were more or less able to offset pressure from what we call exploding raw materials around the world. Cash flow from our operations affected by strong end of 2020. We had a CapEx during the quarter of DKK 130 million, but we have also announced a major investment program or initiated a major investment program of around DKK 1 billion. Our net interest-bearing debt was significantly reduced to a leverage of 1x EBITDA and our return on invested capital was 15.9%, well above our group target of 15%. Guidance for 2021 in general, will be increased due to a strong Q1 and also a very attractive backlog in some of our companies. Turnover is now expected around DKK 22.5 billion. And EBITDA now foreseen at a level of DKK 2.105 billion to DKK 2.315 billion. Full year CapEx, as I mentioned, still expected to be around DKK 1 billion at group level.Turning on to BioMar. BioMar Q1 revenue was down 5% to DKK 2.27 billion. Volume, however, was only slightly down 1% to 266,000 tonnes. Also, we have to bear in mind that the first quarter is a low season for BioMar. The turnover of revenue was negatively affected from currency. EBITDA was also down, it was down from DKK 159 million to DKK 140 million. Here also, currency had an effect of around DKK 7 million. And then we saw some effects from different countries, but mainly from low sales in Chile. Also during the quarter, we had less sales of functional feed than the previous quarter or the first quarter in 2020, and we had slightly impact from climate among other things, a very hot summer in Tasmania. A few highlights from Q1. We decided on a new feed factory in Vietnam in partnership with Viet-UC. So a new feed factory in our shrimp segment. We are going ahead with our yearly contract negotiations in the salmon market there being prepared. And so far, it's going as expected. Also good to see over the quarter that the salmon prices now seems to have recovered both in Norway and Chile. Guidance for 2021, maintained turnover around DKK 12 billion, EBITDA at a level of DKK 950 million to DKK 1.02 billion. Our associated companies will be down mainly because of impact from our Chilean farming operation Salmones Austral and associated companies will be down from DKK 40 million to DKK 25 million expected now.Turning on to Fibertex Personal Care. They had a flat revenue in -- of DKK 530 million, but non-wovens volume was up 10%, and we also saw a good development in our print volume. EBITDA at DKK 80 million compared to DKK 101 million last year. Looking at the EBITDA, you should think that we had a -- it was a very weak quarter. But in fact, it was a strong quarter with a huge volume increase with a high efficiency, but we experienced a huge negative impact from raw materials of about DKK 30 million. Our operations were running at full capacity with a high efficiency. In -- during Q1, we decided on establishing a new production facility in Malaysia. We also are setting up a new printing line in U.S. and both lines or new facilities are well underway and going according to plan. Guidance for Fibertex Personal Care is maintained. Revenue unchanged, about DKK 2.2 billion. EBITDA is expected in a range of DKK 320 million to DKK 360 million. However, we also have to say that the raw material situation continues to be a concern, and we expect negative impact also in Q2. Fibertex nonwovens had a very strong -- had a very strong momentum, and it continued also into Q1, and they delivered the best Q1 ever. Revenue increased to impressive 17% to DKK 521 million. Our U.S. operations continued strong momentum and delivered growth of 35% in the quarter. That gave a very solid EBITDA development, EBITDA up from DKK 54 million to DKK 96 million, nearly a doubling of EBITDA in the quarter. We saw positive impact from raw material, good raw material positions effect from having raw material in inventories. But also we experienced continued strong development in what we call our strategic high-value segments, so also part of a strategic decision we took some years ago. In Q1, we decided to initiate a very large investment program in new bundles capacity. The investment program is of around DKK 600 million and is expected to deliver a turnover of DKK 500 million when they are fully utilized. We also had a continued focus on innovation of our specialty product program.Fibertex wovens lifting their guidance. It's coming from the strong Q1, but also from a continued good market demand. Turnover now around DKK 1.9 billion to DKK 2 billion. EBITDA expected in the range of DKK 245 million to DKK 265 million. But also here, raw material situation is a concern. And again, we could expect a negative impact over the coming quarters. But still, we expect to be able to offset some of it.GPV also had a very strong development in the quarter, revenue up with 9% to DKK 741 million. We saw strong sales in nearly all our segments and also experienced continued positive order intake, very strong backlog as our customers are planning ahead. EBITDA increase is very satisfying 65% to DKK 76 million. Of course, a very positive impact from sales growth, but also strong cost control and high efficiency at all our production sites. In Q1, we have decided to streamline our factory footprint, and we are closing down the factory in China and moving production to our 2 other Asian factories, Sri Lanka and Thailand. We experienced also continued pressure on supply of critical parts, something we are working a lot to offset. Guidance will see an uplift due to the strong Q1 and also our very solid backlog. Turnover expected now around DKK 2.9 billion to DKK 3 billion and EBITDA at a level of DKK 250 million to DKK 290 million.HydraSpecma also saw a quite strong demand over the quarter and revenue up 8% to DKK 575 million, especially our global OEM customers are driving this sales growth. EBITDA increased 12% to DKK 65 million. And here, we are benefiting from strong sales and efficiency gains. Also in HydraSpecma, we saw a negative effect from increasing components and especially transportation of freight costs. In Q1, we decided to establish a new production facility in Chennai, India to accommodate our global wind customers. HydraSpecma also delivered guidance uplift due to the strong demand and the solid backlog. Turnover now expected at more than DKK 2.2 billion, EBITDA in the range of DKK 230 million to DKK 250 million, global pressure on raw material and prices and shortage of component continues. But again, we think HydraSpecma is in a good situation to handle these issues.Borg Automotive had revenue up with 70% to DKK 272 million, demand and sales normalized. Last year, we saw in the Q1 sales starting to decline due to the corona situation. And also, we had positive effect from our recent acquisition of TMI in Spain. EBITDA increased 66% to DKK 40 million coming from a very high efficiency and tight cost control across all the -- both units. So they are pursuing a very ambitious growth plan, also meaning looking for acquisition. And yesterday, they could announce the second acquisition this year of SBS Automotive, a Danish-based trading company selling across -- selling a broad assortment of parts, but main products is break discs, SBS. They are having a very strong market position, 130 employees, expected turnover of around DKK 500 million and an EBITDA in the area of DKK 30 million in 2022. Guidance uplift from Borg due to 2 things, positive demand and of course, also the SBS effect, turnover now around DKK 1.25 billion. EBITDA, DKK 150 million to DKK 170 million before PPA. We haven't got the overview of the PPA effect yet. But also worth to remark that what we call the up or, in fact, it's a guidance uplift of DKK 10 million on EBITDA for them. SBS adds some DKK 200 million to sales and DKK 10 million to EBITDA in 2021.Just to wrap it up very fast. As mentioned, a good and strong Q1 development. Our conglomerate once again showed strength because of the diversification. Our financial position is very good and there will potential for seeking opportunities. We have a guidance uplift due to strong performance and good demand. Of course, as I mentioned before, concern on raw material prices and shortage of critical components and our guidance uplift our guidance now is also based on a normalization in the second half of 2021.So with this closing remarks, I will open up for questions.

[Operator]

[Operator Instructions] And the first question comes from the line of Ulrik Bak of SEB.

[Ulrik Bak, Research Analyst]

Jens and Kasper. A few questions from my side. You comment in the report a lot about the scarcity and the increasing input materials prices in several of your portfolio companies and you state that there's a lot of uncertainty related to that. But still, you managed to increase the overall guidance based on the strong demand that you're currently seeing. Can you maybe provide some more color on how critical you consider this challenge related to scarcity of raw materials to be currently? And what the potential downside from it could be?

[Jens Bjerg Sorensen, President, CEO & Member of Management Board]

Yes. Ulrik, thank you very much for this question. You could say in some of our companies, as you also know, we have escalating mechanisms, meaning we can pass on raw material increases the next quarter. So our guidance is, of course, also based on that, whereas in other companies, we need to fight for price compensation from house to house we more or less say and -- but we have been rather successful in passing on the on prices both because of the mechanisms, but also because of driving price increases to a lot of our customers. So we have taken out a lot of risk on that. Of course, if raw materials continues to increase, we have to get to the market again, but we see a slightly downward trend on some of the raw materials now, but what also is a concern is critical components, electronics and things like that. And there, we don't -- we still see a lot of uncertainties. We have done a lot to secure as much as possible. And we see a -- we are not -- we don't see a very, very big risk as it is now. But of course, we need to continue to work on compensations and work around our supply chain to secure the critical components.

[Ulrik Bak, Research Analyst]

Okay. So based on the inventory the different companies had, should you be able to reach minimum the lower end of your guidance range in the different portfolio companies?

[Jens Bjerg Sorensen, President, CEO & Member of Management Board]

Yes. We don't see a -- absolutely. And also, I think you will see our net working capital might increase slightly because of we are really saying we need to be able to supply and deliver. And if the opportunities are there, we are buying and building up inventories to secure delivery situation in future.

[Ulrik Bak, Research Analyst]

All right. Very clear. And then a question on these increasing raw material prices. You mentioned that the -- it had a negative effect of DKK 30 million on Fibertex Personal Care during Q1. But you also mentioned that it had a positive effect on Fibertex nonwovens based on inventory. Can you quantify that? How big the positive effect was for Fibertex nonwovens?

[Jens Bjerg Sorensen, President, CEO & Member of Management Board]

Yes. It's a double-digit million as we would say, I think we could say between DKK 15 million and DKK 20 million. But it's more difficult to quantify it because it's positions we have taken, of course, if you should go in the market and buy at the present prices. But we have a different sourcing strategy in Fibertex nonwovens due to also we use a broader platform of raw materials that pull equally as the pull equivalent in recycled polyester, virgin polyester, et cetera. So it's coming from old positions and also from inventories around the group.

[Ulrik Bak, Research Analyst]

Okay. And for Q2, you said that this effect would linger. So what kind of effect would we see from Fibertex Personal Care in terms of these increasing in raw material prices if Q1 was DKK 30 million, would it be a higher or lower number for Q2?

[Jens Bjerg Sorensen, President, CEO & Member of Management Board]

I think it could be around the same number for Q2. And then we expect it to eaten off in second half and the guidance is based on that, and that's also what we see now.

[Ulrik Bak, Research Analyst]

Okay. And for Fibertex nonwovens in Q2?

[Jens Bjerg Sorensen, President, CEO & Member of Management Board]

We don't have an exact figure on it because it's also a matter of price compensation, raw materials, it's much more complicated to give an exact figure on Fibertex nonwovens. But of course, we expect raw materials to kick in with a higher effect in Q2 than we saw in Q1. But our guidance is based on that also. And you will also see that our guidance in Fibertex nonwovens, if you take the last 3 quarters last year on '20 and then looking at our guidance for the coming 3 quarters here in '21, there will be, I think, it's 15% under last year, something like that. And that's due to this effect.

[Ulrik Bak, Research Analyst]

That's very clear. And then also a question related to the Fibertex companies. You've previously mentioned that you're currently running at full capacity in Fibertex Personal Care, and will continue to do that for the rest of the year. Does that mean that any earnings volatility should come from the woven material prices and FX effects? Or is there room for some mix effect, which could potentially increase earnings?

[Jens Bjerg Sorensen, President, CEO & Member of Management Board]

Yes. I think it's a very good question because there are a few things in it, Ulrik. Raw materials set that aside because we can't control that. But the full capacity utilization also means productivity, more efficient runs. And also, we are working on pruning products with low margins, innovation and so on. So we expect, of course, effect from high capacity utilization but also from product mix, et cetera.

[Ulrik Bak, Research Analyst]

Okay. And for Fibertex nonwovens what utilization level are you currently running at? And if you could put it in perspective compared to last year, maybe?

[Jens Bjerg Sorensen, President, CEO & Member of Management Board]

More or less full also and that's also why we have announced a very big investment program, DKK 600 million, 2 new lines, upgrade of the line in Turkey. So we are running at full steam more or less, there might be a little bit on our [ gill ] textiles in Aalborg, a little bit in a few segments. But overall, more or less good capacity. And U.S., totally full, yes.

[Ulrik Bak, Research Analyst]

Okay. That sounds reassuring. Then a question on this new investment in Fibertex nonwovens. What kind of return on invested capital do you expect from this investment? You said it would generate a revenue of DKK 500 million. But at what margin would it be? Margins similar to what we've seen during the past few quarters? Or is it lower than that?

[Jens Bjerg Sorensen, President, CEO & Member of Management Board]

You could say there are 2 things in it. Of course, we have our general return on invested capital of 15%. From a starting point, of course, it will be lower and it will also affect our overall return on invested capital this huge investment. But over a few years, they are expected to deliver plus 15%. Also, it's -- we are building capacity into high-value segments, meaning that it's a capacity that we expect to deliver attractive margins compared to where we're coming from, and it's part of our new -- not new any longer, but the strategy we took on Fibertex nonwovens a few years ago, building capacity into Advanced Products segments.

[Ulrik Bak, Research Analyst]

Okay. Very clear. Then final question on the CapEx level. You mentioned DKK 1 billion CapEx guidance for '21, but some of these investments, will they go into 2022 as well? And what -- can you give any indication about the level for 2022 CapEx?

[Jens Bjerg Sorensen, President, CEO & Member of Management Board]

Some of them will, like but we have -- I cannot give a full effect on that as on the CapEx level. But some of them will be -- will go into 2022. But our normalized CapEx and our maintenance CapEx. And so maybe looking at 2020, where we had, I think it was of around DKK 480 million or something in CapEx without any capacity investments. So anything on top of that and some of these will run into that. But we have not decided other new capacity investments, but that's a long time to 2022. So let's see what happens.

[Operator]

[Operator Instructions] And the next question comes from the line of Klaus Kehl of Nykredit.

[Klaus Kehl, Chief Analyst]

Yes. So I also a couple of questions from my side. First of all, could you elaborate a bit on what's going on in Fibertex nonwovens? Because it seems like it's a completely new company, to be honest. So at least you must have done something quite right in the strategic changes that you have made there. So yes, just elaborate a bit on what has changed compared to, let's say, 2 or 3 years ago.

[Jens Bjerg Sorensen, President, CEO & Member of Management Board]

Yes. Klaus, thank you for the question. As you rightly know, we took this strategic review of Fibertex nonwovens a few years ago and said, okay, either we see a future where they can deliver on our long-term 15% return on invested capital or we might exit this business. The strategic review came out very promising and we thought there's good opportunities. We also saw in this review that our positions in the market in general, in fact, were much stronger than we might have thought. And we saw there was a room for adding value to a lot of products. So we have moved into different new segments. We have changed the product mix. Of course, we are still big in automotive, but now we're also moving up a lot into what we call added value product filtration, advanced filtration products with nano into face mask, advanced face mask, advanced specialty wipes for disinfection for hospitals, et cetera. So we took this strategy and then we had the courage to invest in sufficient capacity to also meet the market demand. Then we -- you also need some luck. We had a factory coming for sale in U.S., our Greenville operations in spunlace, a Turkish company that was more or less bankrupt when we were considering it a lot. We thought it as a courageous move, but it has shown to be exactly the right thing to do because we could take our advanced product system into this company and then really start penetrating the U.S. market. So you're right. It looks like a new company but it is part of a very stringent and clear strategic plan we did 2, 3 years ago.

[Klaus Kehl, Chief Analyst]

But how much of the current demand is due to COVID-19?

[Jens Bjerg Sorensen, President, CEO & Member of Management Board]

It's very difficult to say. And of course, we have elaborated a lot on that also ourselves, how sticky is this. But as we don't supply any material for what we call basic face masks or anything when we are talking about face mask, we are supplying very advanced materials to respiratory face mask to some global accounts, et cetera. We are supplying advanced materials to filtration. So it's a move up in value. Of course, we have had positive effect also that some of our competitors have been sold out in the low-margin area. But maybe let's just say maybe 10% effect or something like that, but it's not as big as one might think, and it also underlines our new capacity investments in these foundation lines in U.S. and Czech Republic.

[Klaus Kehl, Chief Analyst]

Okay. Great. And then on GPV, could you say that you had a very strong backlog and a solid visibility?

[Jens Bjerg Sorensen, President, CEO & Member of Management Board]

And what, sorry?

[Klaus Kehl, Chief Analyst]

Yes. I missed -- I'm not sure I understood what you said about GPV, but did you say that you had a very strong backlog and a solid visibility for this company?

[Jens Bjerg Sorensen, President, CEO & Member of Management Board]

Exactly. That was what I said. Yes, we had a very strong backlog, and we have book-to-bill more or less on the expected 2021 turnover. But then we have the supply of critical components as a critical issue we are working on.

[Klaus Kehl, Chief Analyst]

Okay. Then my question would be, are you winning a lot of new customers? Or are you gaining market share amongst your current clients?

[Jens Bjerg Sorensen, President, CEO & Member of Management Board]

It's -- we are winning new customers. We have also taken a new -- implemented a new sales strategy working on much larger customers where we have had quite -- been quite successful. But also you should know that, that most of our large global or international OEM customers, they are also experiencing a strong demand. So we are just following their strong demand. So it's a two-sided thing. The market, in general, our customers, they are asking for more products because they have strong demand, and then we have also won new customers.

[Klaus Kehl, Chief Analyst]

Okay. Great. And then just on group level, if you say that overall, you have reduced the risk profile for the rest of the year due to already implemented price hikes and also inventory buildup of critical components. Meaning that, yes, the risk profile for the remaining 9 months has gone down compared to, let's say, 2 or 3 months ago?

[Jens Bjerg Sorensen, President, CEO & Member of Management Board]

I think it's important also to underline that we have 4 companies where we -- that we lift our guidance on. And we also say there are still some uncertainties on the raw material prices because we expect to go to the market and compensate most of it. We have compensated a lot, but there's still a ways to go. And then I also said we are starting to build inventories on critical components. You will see our net working capital increase, but we are not there yet, but we are working hard on that and we have really said, okay? Even it's my personal KPI, the net working capital and so on, we are offsetting this year because it's more important to be able to supply our customers than looking at net working capital. So that's it. And then we have 2 companies where Fibertex Personal Care where raw materials have been very, very uncertain. We have had more or less shortage of supply close to stopping up production and so on. And we did not lift guidance there. And then we have BioMar both positive move but still uncertainties on especially Chile because of U.S. market and biological conditions. But that's what it is. But if you ask me, if I'm more comfortable than in March, I would say a little bit more.

[Klaus Kehl, Chief Analyst]

Okay. Okay. Then my final question is that already at the Q4 report, you mentioned that you had a quite solid order intake in Q4 and it continued in -- at least into January and February. But could you tell us, yes, what does it look like in April and May? And yes, just to get a feeling for what's going on in the real world?

[Jens Bjerg Sorensen, President, CEO & Member of Management Board]

Was it general order intake? Sorry, Klaus.

[Klaus Kehl, Chief Analyst]

Yes, yes. General you see...

[Jens Bjerg Sorensen, President, CEO & Member of Management Board]

Yes. No, but still -- yes, we have seen a positive order intake. And I think also that's the background for our guidance that still demand from last, very solid customers. The demand is very solid and order intake is still picking up. So that's what we see. And we are well -- we have, as I said, a strong backlog also for the coming months. GPV is special because we have such a large backlog, but that's due to the component situation. Other companies, we do not have backlog covering the whole year because there's another momentum in how our customers are ordering.

[Operator]

[Operator Instructions] And the next question comes from the line of Claus Almer of Nordea.

[Claus Almer Nielsen, Senior Analyst of Capital Goods and IT]

Yes. also a few questions from my side. Jens, the strong performance in Q1, do you have any insight into to what degree this has been a restocking effect? That will be the first question.

[Jens Bjerg Sorensen, President, CEO & Member of Management Board]

Yes, and so we have had -- we have also looked a lot into that. And we think the only way where we really were fearing restocking was in GPV, but we have really scrutinized the orders and everything, and we don't really see. Of course, the order intake is maybe not restocking but security order they are placing, but we haven't really seen any restocking. Also, looking at HydraSpecma we it's large -- very large OEMs, and they do not have the space for stocks, et cetera. Sometimes it's more or less, you have to deliver on time, online. So yes, we haven't seen it yet.

[Claus Almer Nielsen, Senior Analyst of Capital Goods and IT]

Okay. And then set aside raw materials effects and all of this. Given the strong demand, do you see an opportunity to raise prices?

[Jens Bjerg Sorensen, President, CEO & Member of Management Board]

Yes, we are working on it. And in some segments, we see more opportunities than others. Of course, it's a balance because if you go out in the market and are too aggressive, you also know its customers, it pays back. So it's a balance. I think some of our customers very really understand that we had in some of our customers, especially Fibertex Personal Care it would be open on that, where we had to go to the spot market and buy raw materials at crazy, crazy prices to be able to run our lines. Their customers have said, okay, we understand it. We accept also that we may be shy or whatever. So there's a good understanding in the market. Of course, customers don't like price increases, and we work hard on it. But it's a balance, you need to really balance it and don't be too aggressive, but also take the opportunity when it's there.

[Claus Almer Nielsen, Senior Analyst of Capital Goods and IT]

Sure. Okay. And then about your guidance, looking at, let's say, midrange and the upper end of the guidance range, what have you assumed when it comes to the raw materials and transportation costs and so on? Is it as it is today? And then it will continue throughout the year or? Yes.

[Jens Bjerg Sorensen, President, CEO & Member of Management Board]

Yes. We expect freight or transportation cost to be at a high level throughout the year. We have also said that we expect a normalization, especially in second half in BioMar, meaning also that U.S. market opened more up for salmon kind of going out entertainment and these things. And then if you look at Fibertex Personal Care, we do not disclose figures, let's say, okay, what is expected in Q2 and so on. But Q2 will not look nice. So that's also part of our guidance on that, meaning that expected second half improvement and whether we can see it. So it's with that in mind and then Fibertex nonwovens, they were flying also, I have to say, I could see April already also flying. But now the raw material sourcing, we see the new prices coming in, et cetera. So it's with that in mind, Claus.

[Claus Almer Nielsen, Senior Analyst of Capital Goods and IT]

But -- so just to be sure, so the high end of the guidance range is still including an unchanged headwind from input costs and transportation and so on. Is that -- was that correctly understood?

[Jens Bjerg Sorensen, President, CEO & Member of Management Board]

Yes. It's, I would say, 80% correct because, as I said, we also try to compensate on pricing in the market. We also maybe some -- look at product mix, something we could try to avoid to deliver and things like that. There's a lot of things going on, but still with headwind, yes.

[Claus Almer Nielsen, Senior Analyst of Capital Goods and IT]

So 80% correctly understood, and the remaining 20%, is that the strong way of guiding or communicating?

[Jens Bjerg Sorensen, President, CEO & Member of Management Board]

To be -- we are guiding what we are seeing right now. And we are also somebody -- like we have also been looking into polypropylene prices and things like that. And it has really been crazy. Also looking at transportation costs as the transportation costs, they are up a lot, I think looking at the transportation cost at our sites, it's really a big, big issue. So are still things.

[Claus Almer Nielsen, Senior Analyst of Capital Goods and IT]

Okay. And then just a final question is a more housekeeping question. Net working capital, Jens. And yes, you addressed it in one of your replies, but you must be really dissatisfied by the Q1 performance, although it's obviously a smart move to build your inventories given the situation. But I guess 2 step forward and then 2 step backwards?

[Jens Bjerg Sorensen, President, CEO & Member of Management Board]

Yes. And to fight you a little bit, Claus, I'll call it a 2 step forward, one step back because it's -- some of it is deliberate as to were we really have said, okay, we need to source these products. Then there's different things also it's Q1. It's a small quarter, but -- and I agree with you. Of course, there's still something to do, and we will keep a close eye on it and let's discuss it after Q2. But that I know you will scrutinize me on it, and I'm all our CEOs are listening now I hope so.

[Claus Almer Nielsen, Senior Analyst of Capital Goods and IT]

Perfect. And then just a final a big thank you to BioMar and the extra segment details. Very welcomed, and we are looking forward for the next steps to more disclosure.

[Jens Bjerg Sorensen, President, CEO & Member of Management Board]

Yes thanks, Claus because that's good. And we will look into it. We also know what you -- that you need information. So thank you for that.

[Operator]

And there are no more questions at this time. I would like to come turn back to the speaker for closing comments.

[Jens Bjerg Sorensen, President, CEO & Member of Management Board]

Yes. No further comments, only thank you for listening, and we will listen to each other after the summer. So thank you for that.

[Operator]

Ladies and gentlemen, the conference has now concluded, and you may disconnect your telephones. Thank you for joining, and have a pleasant day. Goodbye.