Bilia AB

STO:BILI A

Earnings Call Analysis

Bilia Reports Mixed Q4 Earnings Amid Challenges

Bilia's Q4 report for 2023 shows a diverse landscape amidst industry challenges. Service Business demand remains robust with strong booking times and a 9% organic growth, despite a minor hit in earnings due to fewer car deliveries and other factors. The net turnover decreased by 6% organically, affected by government changes and less delivery of new cars compared to the prior year. New car sales in Norway struggled with a 50% drop compared to 2021, while Western Europe maintained better order intake. Operating cash flow improved significantly, with a notable increase in total cash flow year-over-year. The Board suggested a dividend of SEK 6.60 per share. Looking forward, a good demand in Service Business and used cars is expected, while new car sales face short-term uncertainties. However, there's a hint of optimism for new car sales to pick up later in the year.

Demand Dynamics and Market Trends

The company observed a shift in demand dynamics where high demand and production bottlenecks, mainly due to semiconductor shortages, have given way to higher production relative to demand. This change has led to intensified marketing campaigns, which began in Q4 and feature significant price reductions on electric vehicles from brands such as Volkswagen and Mercedes. These campaigns are positively impacting Bilia, as they are drawing private consumers back into the market after a period of diminished activity.

Order Intake and Market Outlook

Bilia has experienced negative order intake for seven consecutive quarters, and while the market is expected to remain soft in the first half of 2024, there is some anticipation of an improvement. The executive team is cautious but optimistic, expecting demand to increase in the second quarter of 2024. This outlook is linked to lower private leasing prices, which could encourage private consumer purchases.

Service Business Impacted by Weather Conditions

Adverse weather conditions, such as icy roads experienced in the Nordics, have led to a higher incidence of accidents, which in turn increases workshop bookings, particularly for body shops. This is driving some additional demand for the company's Service Business, potentially improving performance in that segment compared to the previous year.

Challenges with New Car Deliveries

The company faced delivery challenges in the last quarter of the previous year, with a significant backlog attributable to long lead times for new cars. Despite these constraints, the 27% reduction in new car order intake in the quarter is seen as consistent with the broader market trend, and not significantly skewed by previously pent-up demand.

Earnings Call Transcript 2023-Q4

[Operator]

Welcome to the Bilia Q4 Report for 2023. [Operator Instructions] Now I will hand the conference over to IR, Carl Fredrik Ewetz. Please go ahead.

[Carl Ewetz, executive]

Thank you very much, and thank you for the introduction, and a warm welcome to Bilia's fourth quarter results presentation with the CEO, Per Avander, Kristina Franzen. And today, we have our Deputy CEO, Stefan Nordstrom with us as well.

And the agenda is pretty much the same as last quarter. We start with the current situation in the car industry. We go through the numbers. We will finish off with an outlook. And this time, an outlook for the coming quarter, but also for the full year 2024, this year.

So let's start, I'll leave the word to CEO, Per Avander.

[Per Avander, executive]

Okay. Thank you very much, Carl Fredrik. Yes. And as Carl Fredrik said, we start with the current situation in the car industry. There is a very good strong demand in the Service Business, especially for body and paint shops with quite long booking times. The fleet business has still a stable demand for new cars in Sweden. The private consumers in Sweden and Norway are more wait and see and buy instead used cars today. The order intake of new cars is much better in Western Europe. For the moment, we have the important Brussels Motor Show and in Luxembourg, the festival, and the order intake is at the same level as last year -- normal year 25% of the volume of new cars is selling in the beginning over year, in January and February in the festival and the Brussels Motor Show in Western Europe.

In Norway, the market situation is still tough with a lot of challenges, high inflation with high interest rates, lot of [ floating ] rate for the Norwegian household, the government and with some support of new fully electric vehicles and sales of new cars is, for the moment, half compared with a record year, 2 years ago, 2021. The demand of used cars on a good level in all our countries. I'm aware we will see a lack of used cars in stock in the end of quarter 2 because we deliver too few new cars in the car industry for the moment.

It's a lot of discussion on new business models, agency model, subscription and car sharing, two of our brands, MINI and Nissan, launched now in January, agency model in Sweden with a lot of complications. XPENG launched in Sweden and Norway, an agency model in May, but now they will go back to wholesale model. It's more a traditional model we have had in the past in our countries and in the rest of Europe. When it comes to Volvo, they are now talking about the hybrid model instead of agency model.

Net turnover decreased organically by 6%, explained by high deliveries of new cars in Q4 2022. May we remember that the governments in Sweden and Norway ended some climate bonus in the end of 2022. We reported result of SEK 440 million with a margin of 4.1%. Still, we have had a stable earnings in Sweden and Western Europe, while Norway reported much lower results and it's the same situation for all competitors in the car industry in Norway.

Last year, quarter 4 was a record quarter in Norway. On this slide, you can see the quarter 4 profitability from 2019 to 2023 in each country. And in the middle, we have Norway and the challenging situation. We will come back to Norway in our outlook for 2024.

We move to the important Service Business. As I mentioned, there is still good demand in the Service Business. We have an organic growth of 9%. It's a really strong figure. We reported profitability of SEK 320 million compared to SEK 368 million to quarter 4 last year. There are a few reasons why we reported a lower result. We have had less to do in our delivery workshops due to fewer new cars delivered compared to the last year. It was 1 less working day. We have also implemented a new workshop concept in Sweden for Volvo.

We started up a brand new dismantling business in Norway. So there is some reasons why we report a little bit lower profitability in quarter 4. We go over to the Car Business. Deliveries of new and used cars adjusted for divested and acquired operations were 19% lower and 3% higher. In the used car business, we reported a result of SEK 71 million compared to SEK 55 million last year. Sweden and Norway reported a much better result, but Western Europe, a little bit weaker. The order intake adjusted for acquired operations were down 27%. The order backlog of new cars are on a normal level, a little bit over 14,000 new cars.

And then we go over to Kristina.

[Kristina Franzén, executive]

Thank you, Per. So moving into the financial position. We reported an improvement in the operating cash flow of around SEK 223 million quarter-over-quarter. For the full year, we equated an almost double cash flow going from SEK 345 million last year to SEK 627 million this year. Net debt to EBITDA at the end of the quarter was 1.3x. It's a little bit higher than we had in the last quarter, but it's still on a stable level versus our financial targets to not exceed 2x.

The Board proposed a dividend of SEK 6.60 per share. The financial targets, we present that the dividend should be at least 50% of the profit per share. The proposal from the Board of the SEK 6.60 represents 65% of the profit per share, which is also in line with the historical average that's been distributed. And in addition to the proposed dividend, it also equals to operational cash flow as a little bit more than SEK 600 million will be distributed to our shareholders.

Yes. So that's a little bit about the financial position and where we are today.

[Stefan Nordstrom, executive]

Thank you very much. Let's move over to the outlook and starting with the Service Business where we see good demand and a solid outlook. We see good booking times ahead in the Service Business, especially in our body and paint shops. Our customers continue to service and repair their cars even in tougher economic times and we see that to continue. In Q4, the Service Business represented 77% of our operating profit.

Moving over to used cars. Per has touched upon it, we foresee good demand for used cars in the coming quarters. Like we saw in the last quarter, consumers used to keep their old cars or buy a used car. When it comes to prices for used cars, we see a rather stable situation during the coming quarters, but potentially lack of used cars end of the second quarter.

Moving over to new cars, private consumer focus, but starting -- seeing that we see order intake from fleet customers continue at a stable level while then private customers are still in what Per mentioned earlier, a wait and see in a short term. This is also the explanation for main weakness in Norway where the fleet business is not as widespread as in Sweden. We believe private customers will remain somewhat restrained also in Q1 when it comes to new cars due to the current uncertainty. But given the signals of lower inflation and lower interest rates, we may be in for somewhat better times later in the year for new cars. And also remember that business order intake for new cars has historically negatively affected early recessions, but also early positively affected when the economy turns.

The pent-up demand among especially private customers will, of course, also impact positively when the conditions improve. In addition to this, the pickup we see in campaigns from different car manufacturers will most likely continue during the year and boost the sales for new cars. Moving swiftly with the Norway, Per mentioned that we have talked about Norway during a few quarters and especially the tough business climate. It is still tough and will remain challenging at least during the first quarter. But looking at the second half of 2024, we hope to see a brighter situation.

Then finally, acquisitions. There is high activity in the market, and we think that will continue market, as -- I think I said in the Q3 is characterized by higher financing costs, slightly longer lead times and increased supply and I would say actually, stable prices. And we will, and we want to be part of an ongoing consolidation, but also realize it's a balancing act in a changing market.

I think that finalizes our fourth quarter presentation, and we can open up for questions.

[Operator]

[Operator Instructions] The next question comes from Stefan Stjernholm from Nordea.

[Stefan Stjernholm, analyst]

This is Stefan at Nordea. I have a question on the Service Business. The sales has been strong throughout 2023, and results are high. But we can also see that margins are coming down, I think, every quarter compared to 2022. What's the reason behind? And what should we expect? Is it fair to assume a stabilization or even an improvement? And if so, why for 2024?

[Per Avander, executive]

Yes. You can say that if you go to the normal Service Business, like retail business and the service with Toyota and Volvo, so there we have the same margin as we had in the past. But then had a lot of new efforts. We have had the tyre business, we have had a dismantling business. And as we mentioned, now we started up a brand-new dismantling business in Norway and a brand-new body and paint shops. So when you start from zero, you don't have the right margin from the beginning. It takes time.

And then we have some -- we require some companies with much lower margin in the Service Business. But as I have mentioned in the past that we have a centralized business excellence team, help them to build up a strong concept and processes, so we can increase the margin and the turnover in the business.

So it's good business still in the normal business as I have generally but the new business is a little bit lower. Maybe you have something, Stefan?

[Stefan Nordstrom, executive]

Yes, I think also we can see the margin in Western Europe is higher compared to last year. So that's one example where we can see that the improvement is there. But it's still, like, as Per mentioned, the new companies, it takes a while to put the processes in line. So -- but it's a work in progress.

[Stefan Stjernholm, analyst]

Yes. So it's fair to assume some continued margin pressure from this new business also going into 2024 before it's annualized? Is that a fair assumption?

[Stefan Nordstrom, executive]

Yes, I would say so.

[Per Avander, executive]

Yes.

[Stefan Stjernholm, analyst]

Yes. And then regarding the supply chain, and we are all talking about the Red Sea conflict. Is that impacting you to some extent already now or not?

[Stefan Nordstrom, executive]

Not what we can see for the moment. But -- so it's still, the spare part is coming in a good way, so nothing bad. So not for the moment.

[Per Avander, executive]

And you have lack of components, if you go back 1 year ago, when they saw the new cars with long delivery times, but today, it is in place again. So -- these are normal delivery times.

[Stefan Nordstrom, executive]

Yes. So nothing for the moment.

[Per Avander, executive]

No, no.

[Stefan Stjernholm, analyst]

Good. And if we take all the external factors, including cost inflation, waging inflation, FX, et cetera, is the cost pressure or the cost increase easing? Or what's your view on general cost inflation?

[Kristina Franzén, executive]

We expect that the cost pressure will sort of ease off a little bit and varies a bit lighter going forward than it's been in the past. I think when it comes to the rentals, I mean, we see that there will still be rental increases for cars [indiscernible] going forward. And I think that the added type of cost increases are more on a stable level and not actually increasing with the pace that we did during the high inflation times when we just started off.

[Operator]

The next question comes from Mats Liss from Kepler Cheuvreux.

[Mats Liss, analyst]

Well, a couple of questions on service. And again, you mentioned that you have a pretty good -- well, demand increase in body repairs and so on. And could you say something there about how that will affect margins normally? Is it sort of same as the usual repair and service maintenance down? Or is there any difference?

[Stefan Nordstrom, executive]

I would say if you take -- to start by the pressure is there when we can see that the damages is on the same level as before, despite all the safety features in the cars. And you can see when you talk about spare parts, the average damage -- its cost for the average damage is higher due to all the techniques in the cars. But I would say the margins in the body activity when we talk about workshop is a little bit lower.

[Per Avander, executive]

Because we had a insurance company, they paid and we have some frame agreements with different insurance companies. So yes, it's a little bit lower.

[Mats Liss, analyst]

Okay. And then in Norway, I guess service is part of the business there, but what's happening there? I mean it is only new car sales that are slowing? Or is it -- could you give some more flavor there.

[Per Avander, executive]

Yes, when you don't deliver so much new cars, you hit our delivery workshops and they are really profitable. So that we see. But still, you can say we have a lot of new efforts in Norway as well. Land Rover, we have acquired the outlet in Bergen to have a lot of different efforts -- new efforts and they hit us when we are talking profitability as well.

But when we look at our competitors, as I mentioned here today, I think it will be better when we talk profitability if you compare with the biggest retail groups in Norway for the moment. But in Norway, they see it will be a little bit better and better this year because it was a lot of support from the government technical vehicles. So the market maybe was too high, over 170,000 new cars a couple of years. And after when they put in VAT, it will be NOK 500,000 in price, everyone stopped to buy a new car.

And then we had another phenomenon that in Norway is the loan -- if they change the price with 6%, where you have to order a car, you can leave the car back when you have the car in the backlog. So we have a lot of cancellation, a huge problem with them, 1,300 cancellations we had last year. So it was main different reasons why we had a huge problem in Norway. And it was the same for all competitors.

[Kristina Franzén, executive]

And the cancellation as well. So it was not the Bilia phenomenon.

[Per Avander, executive]

No, no.

[Mats Liss, analyst]

So you would guess, you can say that there are the one-offs in Norway last year sort of, which improved. Okay, well. And then about the car sales, I guess, it's a pretty good order backlog, Stefan. And you mentioned that lead times are declining. And -- well, should we expect the main part of this backlog to be delivered during the first half of the year then? Or...

[Per Avander, executive]

Yes, you can say that mainly, we will -- because the delivery time is more normalized for the moment now. So I guess this 14,000 cars, we -- most of them, we will deliver before the summer. Yes.

[Mats Liss, analyst]

And finally, on cars repair. I mean, used cars are in good demand, it sounds like that anyway. And I guess, in the mix of -- inventory mix, you have -- I mean, diesel prices have come down a lot. Could you say something about the demand for those kind of cars and how you are sort of...

[Stefan Nordstrom, executive]

You can see that with the change in taxes on these -- on background, you can see the demand for diesel cars increasing. And I would say also the pricing is a little bit going up for diesel cars. And I think also what you have also in Sweden, you can say the low currencies. I think it's -- some companies export a lot of cars. So we still have a lack of cars. So I think diesel cars is, I would say, a little bit interesting again, when you say it like that.

[Per Avander, executive]

But export cars slowed down in quarter 4, you can say, because of the currency. And we don't like it because we like to have the cars in our markets. We can repair and have service of them and purchase them again. So we don't like to export a lot of cars.

[Stefan Nordstrom, executive]

No, I mean in the total, it's for the price.

[Per Avander, executive]

Yes, yes, yes.

[Mats Liss, analyst]

And do you have a sufficient amount of used cars to sort of meet the demand [indiscernible]?

[Stefan Nordstrom, executive]

Yes, I would say then the stock of used cars is in a good level.

[Per Avander, executive]

Yes, normal level.

[Stefan Nordstrom, executive]

And the mix is fairly good as well.

[Per Avander, executive]

But when we don't deliver so much cars in the -- for all brands now, I guess and think it will be a lack of used car and then the margin will go up again a little bit higher than we have today. And what I have seen when we had a recession in the past that when you have lack of used cars, the private consumers start to buy a new car because when the margin go up, you close a new car in price and then they jump over to a new car. So I guess we will see that in maybe in quarter 2, quarter 3, quarter 4 this year. .

[Operator]

The next question comes from Andreas Lundberg from SEB.

[Andreas Lundberg, analyst]

Can you hear me?

[Per Avander, executive]

Yes, we can.

[Andreas Lundberg, analyst]

So let's go back to used cars again, and more big picture performance. If I go back to before 2019, you had pretty low earnings there and it was a low share of the group, while something happened in 2019. And now we have basically running at about 20% of the group earnings coming from used cars. In addition to say, positive external factors, what has happened? Or is there anything that we don't really understand? Can you talk about your used car business today versus 5, 6 years ago?

[Per Avander, executive]

Yes, I think we do it better because we work hard with the turnover rate of the used cars stock, 10x today. If I go back 10 years, it was not so important at that time. We follow up the [ newer ] rate, is, of course, you can say used car is the same like fruits, you have to sell them early. And today, we have much more concept for used cars and I would like to say more focus on used cars.

And then when we have take care of the older used cars, we purchased in the past, we sold them to gray dealers -- used car dealers. Today we are putting them in the outlet. So -- and then we sell them from our outlet instead to gray dealers in the past. So I'd like to say more focused, maybe Stefan you have something more...

[Stefan Nordstrom, executive]

If you need the focus of improvement in the turnover rate, you also need to be faster with the pricing and that the changes, specifically I would say, always the pricing is declining. So I would say you are much faster with the pricing changes in the market now when we have the turnover rate in focus.

[Andreas Lundberg, analyst]

Okay. I can say that some of these improvements are to say more structural?

[Stefan Nordstrom, executive]

Yes.

[Per Avander, executive]

Yes.

[Andreas Lundberg, analyst]

Okay. Got you. And then, I mean, the implications of EVs basically when it comes to the used car market. And I mean the hesitation you now see consumers buy a used electrical vehicle and also perhaps the limited production plants for traditional cars or any -- what do you think this will mean for the dynamics of the used car market?

[Per Avander, executive]

One example, we did see earlier that we have a problem to sell used car Porsche and Toyota. And we really thought, as Stefan mentioned here now. So we reduced the price, and we were first in the market. We still do out our cars directly. It's one example of how we are working today. But you can see that the pricing is declining for EV cars today because when we have a lack of components, our manufacturers, they could increase the price. Some of the brands we have 10% for 1 year.

Now they had to reduce the price because you don't have incentives in Sweden, Norway, for example from the governments. And so it's not so much interest from our customers to buy EV today. So I see the pricing of new is declining as it will be the same for the used.

[Andreas Lundberg, analyst]

And lastly, a different topic. You signed an agreement with JLR here before year-end, I think to become importer of those brands in Sweden and Norway. First of all, why are you doing this? And can you also, secondly, explain the economic model for this important setup?

[Per Avander, executive]

It's a long-term initiative. We can say to be importer, maybe can open up for other brands. So you can have profitability from both as a retailer, but you can be profitable in the second way with -- as an importer. So if you talk about spare parts, you can have a really good margin as an importer and then you have a margin as a dealer.

So -- and we have seen a trend in Europe that some brands, they like to sell them to private. If you look at the biggest dealer group in Europe Emil Frey, they are importer in many countries. One example, they have ELR in Switzerland. Another in [ scape ], they are importer of DLR in Poland and in the Baltics. And maybe you have seen [indiscernible] for Ford and some other brands.

So it's a trend in the market, and you can be profitable in, what you say, two steps [indiscernible], right.

[Kristina Franzén, executive]

Because you probably know it well and yes, of course, that we also had a retailer in Stockholm, so...

[Per Avander, executive]

And Norway.

[Kristina Franzén, executive]

And Norway. So we are also on the retail side on the [indiscernible] industry in Norway.

[Andreas Lundberg, analyst]

Correct. And what's the trend for the larger import to the companies in the Nordics. I guess we'll -- are they doing it themselves today. What is that [indiscernible] strange, do you think.

[Per Avander, executive]

One company, Mercedes Trucks, they are not too big when we are talking market share in Sweden, 8%. But they sold their business to the whole group, the Finnish company, so they are importer for Mercedes Trucks. But we don't see it, Mercedes, BMW passenger cars, Volvo but smaller brands you can see sometimes.

[Operator]

The next question comes from Simen Aas from DNB Markets.

[Simen Aas, analyst]

So I have a few questions. So my first question is on the campaign activity that you mentioned in the market. Could you just give us some flavor on how this accelerated now in Q1? Or is it the same as in Q4? And just to highlight, this is also covering your brands as well, right? So they also have campaigns?

[Per Avander, executive]

Yes. If you go back 1 year ago when you had a high demand in the market, little bit over 1 year ago. And the production was really low because it was lack of components, especially semiconductors. Our manufacturer, they increased the price, new campaigns in the market, nobody talk about pushing the market, it was a pull market and it's not so good for a company like Bilia.

But now we see the production is higher if you compare it to the demand. And now we start a lot of -- you can say we started in quarter 4 with a lot of campaigns, You can read it in the biggest newspapers in Sweden. Volkswagen, they have reduced the private leasing cost for the customer a lot for fully electrical Volkswagen. Mercedes, they reduced the price with maybe SEK 100,000 for some of their fully electrical cars, so you use a lot of campaigns. And it's really good for us in -- not to be push market. And then we can see, as Carl Fredrik said, then you can see the private consumers can come back into the market again.

[Simen Aas, analyst]

Okay. Yes, that makes sense. And then just on that topic, your underlying order intake has now been negative for some 7 quarters in a row. And I know that you have said that you expect the market to be soft in the first half of '24, but should we expect this figure to turn positive there being summer just because it's from a very low base, obviously. But is there a turning point in this figure do you think? Or is it too early?

[Per Avander, executive]

I would like to see quarter 1 now. We don't see directly there really high demand for new cars on private consumers, not yet. I think still it's a wait-and-see market. But when you read headlines in the newspaper and in the television, you can watch some good news. Then we can see the private consumers, their self-confidence will come back and then they start to buy new cars.

And now we have had the low activity from the private consumers, maybe 1 year now. And then I know they must start to buy new cars again. And if you go back a couple of years, you could buy a private leasing car for private consumers, SEK 2,000, SEK 3,000. And then when they come back after 3 years, and we talk about SEK 5,000, SEK 7,000, SEK 8,000 cars because the interest rate and the manufacturer had increased the price. But now we can see the pricing for private leasing is declining again. And then we can see the private consumer come back. But I think we will see better demand in quarter 2 and in quarter 1.

[Simen Aas, analyst]

Okay. So maybe a sequential improvement then throughout the years if their consumers to get a feel for how that number will go. But, okay. So -- and then one last one here, there's been a very bad weather and icy roads in Nordics towards the end of last year, I mean to '24. Have you seen any positive impact on this in your Service Business and a more cars that are crushing or stuff like that?

[Stefan Nordstrom, executive]

Yes, you can say, how do you say, you talk about body shop, of course, when it's like that, it is increasing the booking times in our workshop when you have bad, cold weather. So I would say the main thing is perhaps on the body shop activity.

[Simen Aas, analyst]

Okay. And just to give a feel, how much is that roughly of the Service Business?

[Per Avander, executive]

How much? We don't have a figure for that. But as Stefan said now, there is a lot of accidents. But our customers invest more in winter tyres when you're in winter and you have slippery roads. So it's good for us. The best one in our industry, it's cold weather, warm weather, cold again because when you have really winter, for a long time, it's not the best weather if you're talking body and paint shops.

[Simen Aas, analyst]

Okay. Just to remind me, I can't really remember on top of my head, but last year, it wasn't that icy roads? So it should be a year-on-year positive? Or is that a...

[Stefan Nordstrom, executive]

This year is probably worse than last year.

[Per Avander, executive]

Yes. Yes. It was a [indiscernible].

[Operator]

The next question comes from Mats Liss from Kepler Cheuvreux. .

[Mats Liss, analyst]

Looking at the order intake, I mean, you are right that it's down 27% overall, I guess, in the new car business. But if we adjust for the sort of pent up [indiscernible] with the very strong demand in Q4 in Sweden also due to the EV -- well -- could you make a rough estimate how much is that affected that figure? I mean is it down 10%, 15% or whatever?

[Per Avander, executive]

Yes. But if I remember right, Kristina, that we had a huge backlog. And the problem, it was to deliver the cars in the end of December 2023. Yes. So it was not so much order intake because it was long delivery time, if you go back a little bit one year ago. So can't see in the figures when we say 27% less order intake in the quarter, I think it's the same. It's not an effect of the climate [ promos ] deliveries is that.

[Kristina Franzén, executive]

Yes, deliveries, we had a huge effect and especially in Norway, most of that actually came from the order book. In Sweden, I don't think we can estimate, it would have been a little bit of an upturn to [indiscernible].

[Mats Liss, analyst]

I mean the EV contribution was sort of canceled November 1st, if I remember right, on 8th. I guess it was mid quarter there and maybe some people trying to put an EV order just before that.

[Kristina Franzén, executive]

And we'll have that piece, that's right. but I don't dare to say which effect it would have. I mean it was one day because it came so actively. We can look into that and...

[Mats Liss, analyst]

No, that's -- yes, just to get the feel. That's good. You have a come back if you have anything.

[Kristina Franzén, executive]

We did not have the same effect in Norway. [indiscernible].

[Operator]

[Operator Instructions] There are no more questions at this time. So I hand the conference back to the speakers for any closing comments.

[Carl Ewetz, executive]

Again, thank you very much for listening, and please come back to us if you have further questions and have a good day. Thank you very much.

[Per Avander, executive]

Thank you.

[Stefan Nordstrom, executive]

Thank you.