Kongsberg Gruppen ASA

OSE:KOG

Earnings Call Transcript 2021-Q2

[Jan Erik Julseth Hoff, Group Vice President of Investor Relations]

Ladies and gentlemen, good morning, and welcome to the presentation of Kongsberg's second quarter results. The results will be presented by President and CEO, Geir Haoy as well as Executive Vice President and CFO, Gyrid Skalleberg Ingerø. You may submit questions through the webcast, and the answers will be given after the presentation. With that, I'll leave the floor to Geir Haoy.

[Geir Haoy, President & CEO]

Thank you, Jan Erik, and good morning, and welcome to everyone. Thank you for joining us this morning in mid-July for the presentation of our second -- our results for the second quarter of 2021. This second quarter is yet another quarter where KONGSBERG delivered strong performance. We continue our positive trend with increased revenue and EBITDA. We are now 16 months into the pandemic. KONGSBERG has shown that we are able to maneuver well through restrictions, changing conditions and rough waters. And I'm very proud to say that we stayed the course and we deliver as promised. I'm also deeply impressed by the determination and collaboration and flexibility among our employees, customers and partners. All in all, I think there are reasons for some optimism looking forward. Countries are gradually opening up. The vaccines are proving efficient, and the financial results are solid, and we have a strong position to build on. Before I go into the Q2 results, I would like to mention that we have had some major and important milestones in the beginning of July. This is with a submarine combat system and the Naval Strike Missiles to Germany and also new offshore wind vessel wins. I will come back to that a little bit later. So let have some -- let us look at some highlights and the results for the quarter. As I mentioned, we have maintained our good development in Q2 2021. Our revenue has increased by 13% compared to Q2 2020. This is mostly driven by an impressive double-digit in Defense. The EBITDA is all-time high in the quarter with almost NOK 1 billion in profitability. This is an increase of more than 30%. And looking at Defense, they are demonstrating very sound profitability. And they are also reporting high activity in all their major programs. When it comes to new orders, Defense secured the significant expansion of the CROWS frame agreement in the quarter. But as always, Defense order intake typically varies from quarter-to-quarter depending on when we are able to close and sign major contracts. In the Maritime area, we experienced tough competition globally, but I'm very satisfied that we are able to continuously improve our margins and also to take out synergies from the acquisition of Commercial Marine. Furthermore, we take new important positions in the green maritime transformation and also are increasing our competitive edge. I'm also pleased to see that KM continued to deliver around book-to-bill above 1. I think we could say that we have a favorable project mix in both Defense and Maritime this quarter, together with the mentioned efficiency measure and good performance in general. I think this explains much of the solid results. For our Digital business area, our main focus is still to scale while expanding our customer portfolio and also further developing the digital ecosystem for Vessel Insight and also the Kognitwin. So if you look a little bit closer at our business areas and some of the contracts signed this quarter. Starting with Commercial Maritime. In Maritime, there are much to note on the positive side, such as the improvements of both the efficiency and also the profitability, as I mentioned. And if we look at the market, we are seeing an increase in new contracting to date, year-to-date with 840 ships contracted within our scope. And I think we must go back to 2014 to see the same level of new-build activity within a 6 months period. And I think this is a promising sign. Many of these newbuilds are commodity ships, where each delivery normally means a somewhat smaller scope for KM. However, this is a volume market, and it represents important part of the revenue stream for KM. We see this increased activity as a signal of more promising market going forward, believing that this trend will follow -- be followed by more new-builds within the more advanced high-end vessel. We also expect the LNG market will gain more traction again towards the end of this year or beginning of next, very much depending on the announced large LNG program for Qatar. As you know, the aftersales market is highly important to us. The activity in the aftersales is also developing positively. We experience that customers and partners are taking a growing interest in energy-efficient and more sustainable solutions. We also expect this market to continue to rise as restriction due to the COVID-19 are lifted, and the global situation is more normalized. And for the Maritime area, I would like to mention a couple of contracts. The conversion of the 3 vessels for Hurtigruten to hybrid operation. And here, the ambition is to cut the coastal CO2 emission of -- by at least 25%. Another important contract is the offshore wind contract where we recently secured an agreement for 2 construction service operation vessels for the Norwegian-based shipowner Awind.Here, KM will do the design and equip the 2 construction service operation vessels with a comprehensive technology solution. Also here is a clear focus on reducing [ emission ] and enhanced sustainability with -- which fits us perfectly. This is our combined contract value at approximately NOK 250 million. We have a strong expectation to the offshore wind market as we believe it will continue to grow the next 10 years and onwards, and it will play a key role in the transition to a low-emission society. And here, KONGSBERG is determined to play a key role also in this market. We are involved in all life stages for an offshore wind farm. During the pre-survey, installation, operation, digitalization, maintenance and also during the decommissioning at life end. Our solution is based on our vast offshore experience for decades. And we have among the earlier -- and we have been among the earlier providers of required technology when the wind farms moves further offshore. So as you can see, we are already a part of this market, making a difference and demonstrating our broad domain knowledge in this area with capability throughout the entire value chain. Also, last quarter, I emphasized our increased cross sales from our expanded combined KM CM portfolio. Therefore, I'm also pleased to see this quarter that the trend is continuing as the cross sales contributed with more than NOK 0.5 billion revenue. Looking at the Kongsberg Defense & Aerospace, our Defense business is solid. It's growing, delivering steady revenue growth across all divisions, especially within Land Systems and Integrated Defense Systems. In general, we have had a very high activity in the period and especially related to the Air Defense contracts, where some of the contracts are at their peak, while others are just picking up -- kicking off. And also, the pipeline is looking promising. I have already mentioned the extension of the growth frame contracts with the U.S. Army. And this agreement is extremely important for us. I think it's demonstrating our world-leading position as we are continuing to develop new and advanced versions of the remote weapon station systems. CROWS has become an essential capability for the military platforms and the soldier safety, and we have now delivered more than 20,000 systems to 26 nations since the turn of the century. Further, I'm also pleased to see that -- see the development in the Kongsberg Aviation Maintenance Services this quarter, which, of course, is important to realize our MRO ambition. The advanced F-35 engine maintenance is now up and running in -- at Rygge, and we are already performing engine maintenance for the F-35. We see an increased potential in this market going forward and are well positioned to capitalize on this. Also last quarter, I mentioned the F-16 fighters. We have now conducted maintenance, repair and overhaul for the F-16 for 40 years. So the last phase inspection of F-16 was actually performed last month. However, while the Norwegian Air Force is phasing out F-16, there is still a considerable market potential for KONGSBERG related to the F-16. KAMS is the only licensed operator for maintenance of the F-16 outside the United States, and KONGSBERG can play a significant role in the preparation for sale of F-16 to new users, but this position also opens up for future MRO services globally. Then to Kongsberg Digital. For our digital business, we continue to invest in strengthening our position as a leading industrial digitalization player in the energy and maritime sector. Shell is now also using Kongsberg Digital Twin solution, Kognitwin, to create a virtual replica of their Ormen Lange deepwater gas field, which deliver gas to the Nyhamna facility, where the Kognitwin already has been in operation since the end of 2019. And the combined solution is resulting in the first ever fully integrated reservoir solution to utilize a dynamic Digital Twin combining upstream, midstream and downstream. We have now delivered 5 dynamic Digital Twin to Shell, and we will continue to roll out the new Digital Twins in the quarters to come. In parallel, we are pleased to see that the customer is including more users into the system as we go on.Also, we continue to secure new customer for the vessel insight in the quarter. We have signed contracts with several new customers. And we have also signed multiple new partnership and application to the Kognifai marketplace. And here, I would like to mention one in particular, and that is the strategic agreement with -- digitalization partnership with BW LNG and Alpha ORI, This is a very exciting partnership for KONGSBERG, considering BW's competence and overall substantial fleet. As I mentioned in the start of my presentation, we have signed several significant contracts just after Q2 closed. So even though this is a presentation for the second quarter, I cannot refrain from addressing them, as we are really excited about these revenant. Starting with KDI. I would like to share some highlights from the new Norwegian and German submarine and Naval Strike Missile program. KONGSBERG will deliver combat systems and naval strike missiles to the German and Norwegian Navy with a combined value of NOK 8.2 billion. This is an important program and will create value activity and innovation way into the 2030s. Combined, these are record high contracts for KONGSBERG, representing important and strategic milestones, which will strengthen our foothold in Europe in general, and in particular with Germany as an important and near partner, as the nation has been over several decades. Furthermore, this puts us in an exclusive position for future deliveries of our combat system to group marine systems globally.I've talked about the growing offshore wind market earlier in my presentation, and we are very pleased to have secured another substantial delivery to COSCO shipping offshore for the Denmark-based service provider, Cadeler. Our contract is for the industry-leading wind turbine installation vessel technology. And here, we are supplying comprehensive technology package for these 2 new wind turbine installation vessels at a value of EUR 49 million. And our integrated solution will be crucial to the delivery and the operation of the new vessels and puts us in a leading position when it comes to advanced offshore vessels globally. And then to KDI. Another an important agreement is the ExxonMobil's choice of exploring the use of Kognitwin for their new asset in their Guyana portfolio. Here, we will be building on our existing experience from working with ExxonMobil, where we previously had delivered amongst others, real time dynamic simulation models. By that, I think it's time for Gyrid to take us through the financial results for the second quarter. Gyrid?

[Gyrid Skalleberg Ingero]

Thank you, Geir. And thank you for listening in to our Q2 call. Highlights this quarter, a record high EBITDA, NOK 1 billion, continued strong growth in [ end ] margins in Defense, Revenue growth of 9% in Maritime and new customers, as well as commissioning of new assets in Kongsberg Digital. So what is then our current focus? Larger position on the fast-growing offshore wind market, increasing recurring revenue in digital and monitor the efficiency agenda in Defense to be able to secure the delivery of the order backlog. Return on capital employed this quarter, or this half year, of 26.8% for the first half year, up from 13.6% last year, mainly driven by increased operational performance. Number of employees have increased with 247 FTEs first half of 2021. The increase is shared between Defense and Digital, and it's really about scaling up to be able to deliver on current order backlog and growth in recurring revenue in digital. So let's look at the numbers. Order intake, KONGSBERG had an order intake of NOK 5.5 billion this quarter. Order intake below last year as growth in Maritime is offset by somewhat more limited order intake in our other business areas. As we already have seen, we have announced NOK 9 billion in new orders already so far in July, so a book-to-bill way above 1 for the group in Q3 is already secured. 76% of all new orders this quarter came from Maritime with global customer support as the main driver. For the first 6 months of 2021, KONGSBERG has a book-to-bill of 1. Our order backlog is now NOK 36 billion, and I will comment on the split later. In addition, we have the aftermarket business in Maritime, where the majority of the orders are passing straight through the order backlog and the same applies for the recurring revenue in KDI. Looking at the revenue, 13% growth in revenue, driven by increase in Maritime of 9% while Defense had an increase of 22%. Defense continues to grow in line with last quarter. And after some declining quarters, it's a pleasure to announce growth in Kongsberg Maritime again. The optimism and willingness to invest is slowly coming back in the maritime industry. We saw growth both in Propulsion & Engine and Deck Machinery in addition to global customer support this quarter. Digital increased its recurring revenue while the division Maritime Simulation, that has been heavily affected by COVID, is down 16% since Q2 last year, resulting in aggregated KDI revenues more or less on par with Q2 last year. Out of our order backlog today, almost 31% will be delivered in second half of this year. I said last quarter that we believe that we will be delivering growth for the group also in 2021. Looking at the steady growth in Defense for the first half year combined with the positive signs in Maritime, we now confirm that statement. Delivering EUR 993 million in EBITDA this quarter or almost NOK 1 billion with a margin of 14.7%, up NOK 254 million from last year and up NOK 110 million from Q1. There is improved profitability, both in Maritime and Defense that is the main drivers. Maritime with contribution from revenue growth, improved project margins and lower OpEx. Defense contributed with solid margins and an OpEx to sales reduction of 2.4% as a result of scaling effects. Full year effects of cost programs and COVID-19 savings contributes also this quarter. Cash flow -- we started this quarter with a cash deposit of NOK 7.78 billion. The positive cash flow from operation continues. We have increased working capital this quarter. This is mainly due to the progression in some of the large Defense contracts. We have been typically received large milestone payments and no such payments were received during the second quarter. In terms of the working capital, we monitor very closely the component storage. There are challenges in connection with logistics around component these days. For time being, we have not seen any material change in our working capital in terms of components, but we are monitoring this quite closely. We have received NOK 84 million in dividend from Patria this quarter and NOK 63 million in dividend from KSAT. In second quarter, Patria has contributed to our net result with NOK 34 million while KSAT has contributed with NOK 30 million. Main contributors in Patria this quarter has been Nammo as for the last 2 quarters and also Millog. The investment this quarter has been around NOK 200 million, and main projects are very similar to the last quarter. It's a Digital Twin, it's the Engine Depot in Defense and IT. First half of 2021, we have been running 2 different share programs, share purchased under the buyback program and the employee share program. These 2 programs are now closed, and in the second quarter, a total of NOK 120 million has been accounted for. In our cash position as of June 2021, you should be aware that we have around NOK 1.6 billion in prepayments from our customers. We have solid liquidity and ended up by paying down the debt maturity in June. Whether we will manage the December maturity from existing cash or refinancing is something we will decide closer to maturity. In May, KONGSBERG paid out NOK 8 per share in dividend, a total of NOK 1.4 billion. Let's look at Kongsberg Maritime. Kongsberg Maritime received NOK 4.2 billion in new orders this quarter and continues the positive trend we have seen over the past months. The order backlog is now NOK 11.7 billion. We have also put up a 12-month rolling order intake trend for you showing this trend. We have seen positive trends in many maritime segments during the spring. Typically, there is a lag between a vessel being contracted at the yard, and Maritime receiving its order, meaning that most of what we have seen with regards to new-build ordering is still not reflected in our order intake. Out of the order backlog of NOK 11.7 billion, NOK 5.7 billion are for the deliveries already in 2021. In the first half, Maritime has delivered a revenue of NOK 7.9 billion. That secured a revenue of at least NOK 13.6 billion before aftermarket. Aftermarket is normally at least NOK 7 billion for a full year, where the majority is not in the order backlog, and we see optimistic trends. I will provide you with an order intake on the aftermarket here on the next slide. When COVID hit us last year, the aftermarket in Maritime was one of the areas that worried as most due to the importance with regards to volume and profitability to Maritime as a whole. From Q1 last year, 2020, there was a high quarter with regards to activity to third quarter, the same year. Activity in the aftermarket fell with approximately 20%. Internally, we have gradually adjusted to a new normal, implemented routines and systems reducing the need for traveling to customer to solve issues. Externally, operations have gradually increased, service and spare sales are picking up and the willingness to invest in upgrades are stronger. This has led to a strong development of our aftermarket business. And compared to the low in Q3 last year, activity is now up 16% this second quarter. The aftermarket is affected by short term cycles and may flip back, thus the underlying development we have seen over the past quarters, giving room for optimism going forward. Nearly 50% of all the new orders in Maritime this quarter came from the aftermarket. I also want to share new sales in different segments. So I'll address some headlines for you. The main driver, as you can see here is the seaborne where we have the container market. You can now see the offshore wind segment is starting to get traction and becoming visible as a larger part of our order intake. And as Geir mentioned, also in 3Q, we have received a large contract on offshore wind. So this is an area where we expect we will grow and we think it will be important for KONGSBERG. As you can read from the chart here, we are also very -- not very exposed to the traditional offshore anymore. We strongly believe that LNG will start moving again, especially when Qatar gas starts moving. We said last quarter that we saw some positive sign, so we could hope for a flat top line, even with a decline of 16% in the first quarter. This quarter, Maritime has increased its top line with 9% and growth in 3 out of 5 divisions, as I briefly mentioned. Looking at 12 months rolling revenue, we clearly see the positive trend. And even with a decline of 5% in the first half year of 2021, we still believe in a flat top line for 2021. Maritime delivers NOK 452 million in EBITDA this quarter with a margin of 11.1%. Contribution from revenue growth, improved gross margin and lower OpEx lifted the EBITDA with NOK 185 million from the last year or an increase of 70%. So let's look at the Defense area. Defense had an order intake in Q2 of NOK 1.1 billion and ended the quarter with an order backlog of NOK 23.2 billion. Geir has already mentioned the strong order intake we have seen over the first couple of weeks in Q3, supporting an uptick in order intake when we meet again to present the third quarter. NOK 5 billion in order backlog will be delivered already in 2021 on top of the NOK 4.5 billion in revenue for the first half year. This means that we are aiming for around NOK 10 billion in revenue for 2021 at the moment, compared to a revenue of NOK 8.5 million last year. The revenue growth first half year have been of 22% or NOK 855 million. This year, we will also build a more solid -- solidity for 2022 and onwards. KDI or Defense revenues this quarter are NOK 2.5 billion, an increase of 22%, largely driven by a significant increase both related to deliveries to the U.S. CROWS program as well as NASAMS Qatar. The NASAMS Qatar project is developing quite well. The top 15 projects in Defense accounts for 69% of the revenue this quarter. And of the top 15 projects, accounts for 86% of the total order backlog. EBITDA in Defense increased from NOK 437 million last year to NOK 513 million this year with an EBITDA margin of 20.9%. Revenue growth, higher gross margin and nominal OpEx in line with last year contributes to growth in EBITDA. With 20% EBITDA margin in Q1, 20.9% in Q2, revenue growth of 22% and flat OpEx development, we believe that the EBITDA margins for Defense for 2021 as a whole will remain at the same level as for the first half year. So Kongsberg Digital. Digital delivered revenues this quarter of NOK 204 million, out of which recurring revenue is NOK 83 million, up from NOK 67 million last year, or an increase of 24% since Q2 last year. As Geir mentioned, we have now 5 Digital Twins up and running for Shell and have several new customers in the pilot phase. As mentioned in the first quarter, the price model here is to invoice active user on each Twin and asset subscriptions in a SaaS business model. 40% of the revenue in Digital is connected to maritime simulation. That has been hit hard by the pandemic. Revenue in this area was down by 16% compared to last year, meaning that the positive development from the new initiative currently are offset by negative development in this legacy business. Digital are currently putting a lot of effort into scaling of business, both in terms of employees and in terms of investments. We need more employees to be able to both deliver and develop digital further. Continued effort are also put into sales campaigns. And even though we don't really see financial effects on an aggregated level, yet the operational KPIs are now really moving in the right direction. So with that, let's have a look at the outlook for KONGSBERG.

[Geir Haoy, President & CEO]

Thank you, Gyrid. Yes. I think what Gyrid just have presented demonstrates that we are resilient and deliver solid financial results. For the group, we have a healthy balance sheet, and we have a strong order backlog. We have a deep domain knowledge and leading positions in both established and also future-oriented markets. And we are also well positioned to capitalize on this going forward. Our Defense activities will continue to grow. That is given when we are looking at a strong order backlog. And as Gyrid already mentioned, we expect KDI to continue to deliver EBITDA margin at similar level as H1 for the entire year. And I think we also continue to be quite optimistic about the Defense pipeline looking forward. Further, we are experienced a shift in several maritime markets, indicating that both new-build and also the aftermarket activities are increasing. And KONGSBERG has never been in a better position for an upturn in the market. And in addition to that, we are prepared to capture also new opportunities related to sustainable solutions and also the digitalization area. Furthermore, we are optimistic about development on the digitalization of shipping and asset-heavy industries, where KONGSBERG has become a key player, driving the development of dynamic digital twins and cloud-based vessel solutions.So to conclude, the overall picture makes me confident that KONGSBERG will continue to make a difference to our customers and partners, and we'll also continue to deliver strong performance also going forward. Thank you for listening. And now, Gyrid will join me for the Q&A session.

[Jan Erik Julseth Hoff, Group Vice President of Investor Relations]

Yes. First question from the webcast. Can you say something about Kongsberg Digital and a potential listing of the business area?

[Geir Haoy, President & CEO]

I think we said that last quarter, that we are preparing for a potential listing of KDI as an alternative, and we are moving in that direction.

[Gyrid Skalleberg Ingero]

Yes, we're working on it.

[Geir Haoy, President & CEO]

So we will see.

[Jan Erik Julseth Hoff, Group Vice President of Investor Relations]

Yes. Next question. Leverage seems to open for both, more buybacks and more extraordinary dividends, could that be reasonable to expect?

[Gyrid Skalleberg Ingero]

Yes, we had a decision on the general assembly now for more buybacks. And then we have a very clear dividend policy that we will have a floor and then an increased ordinary dividend. And out of that, every year, the Board will do an evaluation to give [ us ] more. So if you look back now on the 12 last months, we have delivered a dividend of NOK 4 billion in total. And so if we don't find anything that we could put all our money into, then it seems very likely that there will be extraordinary dividends also going forward. But that's a Board decision.

[Jan Erik Julseth Hoff, Group Vice President of Investor Relations]

Okay. Then a question about the long-term targets. How -- or what is your target with regards to how large KONGSBERG will be? And also, do you have any annual growth targets? And in addition, how are your targets regarding the results? And finally, what are the main risk factors on achieving those targets?

[Gyrid Skalleberg Ingero]

Hopefully, how large Kongsberg can be, unlimited.

[Geir Haoy, President & CEO]

We already have said that we have our targets out there for 2022, and I think that is what we stick with for time being. And that means that we're going to, at least, turn NOK 30 billion in revenue by 2022. We stick with that even though it has been a very special 1.5 years behind us. And we have also, as a group, a target of an EBITDA of 14% as a group overall. So I think that is the target for now. Then, of course, this is something that we are considering going forward. And then if that -- if these targets are changing, we will come back to that when the time is there.

[Gyrid Skalleberg Ingero]

Just to elaborate a little bit on that, if you look at NOK 30 billion in revenue next year, that could be a hard one if the maritime market is not returning very quick. But if you look at the margin, as I just said, the Defense had 16% last year. We said now that we believe in around 20% for this year. Already, if you look at the group, we delivered 14.7% this quarter, but it's obviously very driven by the Defense margin at the moment. If you look at Maritime that has 13% in our goal for 2022. They have 11.1% for this quarter and 11.1% for the first half year. There's still an uplift there. And the risk is, of course, if you end up with a lot of bad contracts, it could be a risk or that the market will not come back at all and the pandemic will continue. That's obvious risk factors.

[Jan Erik Julseth Hoff, Group Vice President of Investor Relations]

How should we think about Defense margins into 2022? Could you sustain the 2021 level on the margin side for Defense?

[Gyrid Skalleberg Ingero]

I definitely hope for that, but I think we have to come back with that because that has also to do with the mix of products. We just received a large contract now, the largest ever with Germany, and we need to come back with the 2022 margins on that. But we have lifted them for 2021, So it's obvious that we will not down to 16%. That was the old target from Capital Markets Day 2 years ago.

[Jan Erik Julseth Hoff, Group Vice President of Investor Relations]

Okay. Then a question regarding KDI and more specifically, Vessel Insight. Are you satisfied with the number of Vessel Insight subscription estimated by the end of this year and -- or given the target of the rapid increase you have in number of installations?

[Geir Haoy, President & CEO]

I think what we are satisfied with is that we are signing on new ship owners in a -- let's say, a faster track than we saw earlier in the pandemic. Obviously, this is also -- I would say, it's also that the shipowners themselves need to mature about the solution. I'm looking at this in a very positive way because if you sign on 1 or 2 vessels and the shipowners see the benefit of a cloud-based solution, then they will continue to roll out for the entire fleet.And that we have seen in several cases where they have done a pilot, and then after they have get familiar with what this solution can do, they have rolled it out for the entire fleet. So hopefully, we will see a faster growing curve when it comes to rollout of the vesseling side.

[Jan Erik Julseth Hoff, Group Vice President of Investor Relations]

Yes. And then a question regarding impact on -- from decreased traveling. Can you explain the magnitude and impact on decreased travel in Kongsberg Maritime Services division? And how should we think about that going forward?

[Geir Haoy, President & CEO]

Yes, it's correct that we have, I would say, less travel these days. Obviously, when the restrictions are lifted, it will be more traveling, obviously. But we are actually having a lot of engineers traveling today even though we have these quarantine restrictions and so on. But obviously, I think both we and the customer have learned a lot during the pandemic. So I would expect that the number of traveling to attend, to support a client will go down. Exactly how much, I think we need to come back to. But I have a hope that we will see, I would say, quite much reduced in the traveling. But again, we are in 40 countries, and we are 100 offices around there, and we have local expertise and knowledge to support the clients basically where they are. So -- but somewhat reduced traveling, I'm quite sure.

[Gyrid Skalleberg Ingero]

And you also have all the internal traveling because we have 125 offices around the world. You don't need to visit each other that much as we did before. Internal travels will really go down in the future.

[Jan Erik Julseth Hoff, Group Vice President of Investor Relations]

Thank you. That concludes the questions from the webcast.

[Geir Haoy, President & CEO]

Okay. Then I would like to say, once again, thank you for listening in, and I wish everyone out there have a very good summer, and we look forward to see you again in the autumn. Thank you very much.