Nimbus Group AB (publ)

STO:BOAT

Earnings Call Analysis

Earnings Call Transcript 2023-Q4

[Operator]

Welcome to the Nimbus Q4 presentation. [Operator Instructions] Now I will hand the conference over to the CEO, Jan-Erik Lindstrom; CFO, Rasmus Alvemyr; and Head of Investor Relations, Gunilla Ohman. Please go ahead.

[Jan-Erik Lindstrom, executive]

Thank you for that. Let's stick a little bit to the very first picture, the beautiful picture of the logo in -- actually, I think it's Oslo. What you see there is the Pascal project. It's actually -- even if it looks exactly as a boat and it behaves more or less like a normal boat, it's a hovercraft and this is a really exciting project we are running.We actually launched the project in -- at the Dusseldorf Boat Show, the biggest indoor boat show in the world, just 2 weeks ago. And it has a lot of attention, especially from the media. I think they said that it was above 20 reporters there from different publications, which is interesting because this is -- as we think, it's a part of the future.It's a part of the solution from an environmental perspective. This is a 100% electric boat. It's -- since it's aluminum, the aluminum is 100% recyclable. So -- and it really looks promising. The target is to reduce the energy consumption with 50%. And so far, we have reached a high level. We are not there yet, but with some fine-tuning and some other things, it will be good, and it looks really promising. So it's good [ fun ]. I will come back to that later on.Next page, please. Nice pictures of me and Rasmus, of course. We will present today and then this picture -- the key takeaways from 2023 then. And we start then, of course, with the expansion in North America. And as you will see later on, the current order book actually consists of the 55% of orders from the U.S. And the organic growth for the moment in U.S. is actually 94%. And then, please, it's the organic growth. So it's not the acquisition of the Edgewater, that is on top of that.We have worked then with the dealer network to expand that in key boating districts, and this will, of course, continue. We have a lot of white spots [ still ] to cover in U.S., but so far, good work done. We did this -- we acquired then Edgewater. And again, then, the important thing for us with that acquisition was then the organization that we actually done this year.The brand, as we say, it was a bonus. We love the brand. It's a premium brand. But the thing for us was to get then a full organization on the U.S. side of the Atlantic then.And so far, we are very pleased and a lot of work is actually then already done and is continuing then for the next year to develop our U.S. -- our part of the U.S. market.We also, at the same time, consolidated the North American sales organization, meaning that all our brands now are sold through our American sales company. And of course, it gives more efficiency, but it also gives us a broader portfolio. And it's the same as in Europe that we want to be a big part of our dealers business. And by doing this, we can immediately, so to say, take advantage of the fact that we are a house of brands.We have also started then the preparation for local U.S. production, and that was what I was referring to with the Edgewater, of Nimbus brand boats. And actually then during the end of this quarter -- [ we are ] in the quarter 1 and into the start of the quarter 2, the first boats will then be actually in production. We have also launched the Aquador brand where, as you know, we started with Nimbus. But with this Aquador brand, we now are in total then 4 brands in the U.S., and that's including then the American brand, Edgewater.Besides that, we have continued to increase our focus on premium boats. This is then, of course, where we come from. That's our heritage. But it's also -- I think it's important to know that it's also an initiative that started years before. But since the pandemic hit us, that was put on hold. So this is actually then initiative that we already had, but now start to work with again and has worked for a while now.We have also entered a new segment, and that is, of course, then with Nimbus 465 Coupe. That's the biggest Nimbus ever. And it's actually like that, that the first boat is now built, and that is important for us. We have a lot of sea-trials booked since it's a quite big boat. Of course, the buyer wants to look at it, feel it, and of course, then also try it on water. So that will be really great. We'll actually have a picture on it later on in the presentation.Also, the extension of the Lugnas factory is finalized, and it then enable us higher volumes, as we say. We can build larger boats and it's actually also improves the flow in the factory, which is also important. The output of the factory will actually increase then.We have -- during this '23, we have seen a softer market situation then. And especially for us then, it's the small boats in the Nordics. And we can also say that the market is a little bit less predictable than we maybe wish to, but at the same time, as we also point out in this presentation, the premium boats are doing well -- extremely well in some parts of the world.We have also expanded our footprint in new markets, and that is what we call other markets then. And please remember that U.S. was a part of the other markets as -- I think it was in the beginning of last year, actually, was just the last time we had them in other markets. So, let's see what can happen there. But we are developing very nicely, and we have progressed in these other markets too, well spread over the world.Next page, please. If we then look at the highlights of the fourth quarter, we had the sales increase by 7%, up to SEK 361 million. We have EBITA that amounted to minus SEK 4.4 million compared to SEK 10.3 million the year before. Including then -- so please observe nonrecurring costs of SEK 10 million. And this is then, of course, related then to a restructuring that we talk about the burden [ sales ]. But since the quarter 4 is a small quarter, the effect is then actually bigger for the result. And so, please take that with you.The EBITDA margin, minus 1.2% compared to 3.1%. And the negative effect then, as we say here, by currency, has supported already in quarter 3. It's veining, but still a part of the order book that is affected by this, and we will -- also then can foresee that it's a smaller part. It's veining, as I said, but it will also affect then -- partly then the quarter 1 order book.As I mentioned in the beginning, we had a sea-trial then of the Alukin Ocean Air8, and as I said, very promising and exciting, of course. We had the Flipper 900 DC and the Aquador 300 HT nominated for the Motorboat Award. And today, we actually know that the Flipper won in their segment and the Aquador ended second. And that was a great accomplishment of Aquador since then they competed against much bigger boats. It was up to 45 feet. So the winner was actually 44 feet and it's a big difference between 30 feet and 40. So good work.As we then said, the first s 465 Coupe is built, and we have also done a legal merger of the own Swedish dealer. And then here is just a sentence, but of course, it's a lot of effort from both the sales and the financial department during the last months for make this happen. And then this will, of course, also improve our efficiency, the same way as in U.S., as I explained before.Next page, please. An old page in a way and a reminder, but this is Nimbus Group, founded 1968. So we have a lot of years in the business. We have a long history of international sales, which I think is important to mention. This is a normal way for us to work globally and already around the early '70s, the export of our boats was ongoing as a normal part of the business. We have our true house of well-known brands. And again, then we do it for the dealer.We want to be a big part of the dealers' business and then, of course, create a win-win because that's the way to go forward. I will not read everything here on this slide, but I can mention the last one there is May then '23 where we did the acquisition on the Edgewater Power Boats then. Really important buy for us. We get some capacity. But again, we also get the complete organization on the U.S. side to support the U.S. market, which is, of course, very important. And as a bonus, a very nice, premium brand.If we then switch to page again, then we come to the -- as we say here, the productivity improvements and increased focus on the premium segment then. And worth mentioning here, [ we ] should say here that we produce complete boats in 8 locations around the world or in Europe and U.S. But here is then -- actually one of them has been closed. We have the press release, that -- and that is the aluminum production in Norrtalje that is -- now has come to an end. And these boats are now producing another already existing outsourced production. They already done -- did 80% roughly of the -- production of this Alukin boats before then. So that is a bit more efficient and the factory itself was too small to bear the volumes, so to say. So that was needed to happen, so to say.Besides that, has happened a couple of things on all of these places, of course, but we have done -- on the Lugnas site, we have outsourced Nimbus C11. So now it's actually produced in Poland, and that was made to make room then, of course, for the 465, but also to be able to make this other flow through the factory, then.In Finland, we had, or have had and -- or still have temporary layoffs then in the small boat production and the [indiscernible] according to the Finnish rules. And roughly 80% of the workforce is affected somehow then. And this is, of course, then because of the weak part -- the small boat of the industry.We have also then moved the Nimbus [ TC8 ] to Edgewater. This would actually be the first Nimbus boat produced in Edgewater or were in the U.S. and also then in Poland, and Poland will then, of course, provide Europe and other markets with this TC8 boats.If we then switch the page again. This is also a picture we would like to come back to. Here we talk about the drivers as we see them, and I think the whole industry look upon these drivers in the same way. And this is, of course, then the overall wealth is increasing. We have tough times now in inflation, I should not say high rates. So, we can maybe say that, okay, they are not low either, but they are not high and I think it's important to bring with us.But nevertheless, we have some pressure, but still this wealth is increasing. So today, it's more than 2.5 times more money in our pockets than we had actually year 2000. And as I used to say, as we work a lot, then, when we have our leisure time, we are prepared to actually then invest to get some quality time, which is important, we have the money.We have also the increased popularity of staycation that was popular to talk about during the pandemic, but this trend then actually started well before the pandemic and this has continued and we tend to spend our money in the neighborhood, so to say, buying summer houses, caravans, or things like that.If we look at the industry itself, we have an [ ageing ] boat fleet. 45% of the U.S. fleet is older than 25 years. And actually, these figures are more or less the same in rest of the world. It differs somehow, but the boat, the fleet, the average age is high.And then, of course, you lose a lot of the next thing, the technical development, but it's also that you don't have a fresh boat. You have to invest quite a lot of money to keep that boat fresh. And also from an environmental perspective, the engines are not as efficient as they are today and as clean as they are today, et cetera, et cetera.So that is an important factor, of course. But then also the technical development that has been done inside the industry itself and mainly pointing at the in-water handling and easy boating and things like that. And it's all about to ease the stress then to drive and to stay on a boat. It's for the captain, but it's also for the passenger.And this is important because the mental part of this, to be an owner of the boat, that is actually the thing that makes people hesitate. Can I do it? Can I really handle this? Can I cope with the situation, et cetera. So that is an important part. And of course, it makes us happy that we are working with this, and we have so far done a tremendous job to develop that situation.If we then take the next slide, a little bit about the order book development then. The order book is then down 18% year-over-year, and this is then driven by the small boats, roughly SEK 100 million. But also, the order book is geographically well balanced in relation to the world market. And this is then worth mentioning because the world market -- 50% of the world market is North America and then is divided by roughly 1/3 to Europe and the rest for the other world -- other markets, I should say. And here, our order book is actually representing then 54%. So it's well balanced then with the global picture of the market, which is important for us.If we take some time to look at the quarter 4 '20 in this picture, this is what you will make -- and you can call them maybe the last normal year before the pandemic hit us, and compare it with the one quarter 4 '23. The difference between them then from our perspective is that 96% of the current order book is for premium boats. That was maybe roughly 80% on the picture from quarter 4 '20. But also this geographical balance then, 54%, as we say here, of this from the quarter 4 '23 is from the U.S. market.On the other one, that from quarter 4 '20, a huge part of that is actually from the Nordic countries. So that is a picture to show how we have taken the steps to actually end up where we are today and where we actually have aimed to be, which is then, of course, good. This is good for us.And exactly, as I said, higher share of premium boats in the order book, 96%. And of course, then, only confirmed orders in the order book, nothing else. And that this is then, of course, important [indiscernible] to follow.And with that, I will actually then leave it to you, Rasmus.

[Rasmus Alvemyr, executive]

Thank you, Jan-Erik. Then we move on with the sales development per market. In the fourth quarter, the sales in the North America continued to develop well. The sales increased by SEK 130 million to SEK 159 million. And out of this, Edgewater contributed with SEK 90 million. And as we talked about before, North America has now become our single largest market on a 12-month basis. But keep in mind here also that the Edgewater has only been consolidated since May 31.The Nordic countries continues to be soft, and the sales dropped by 39% to SEK 77 million. And as Jan-Erik said, the drop is driven by the smaller boat business.In the quarter, Europe dropped by 41% compared with last year. And the reason for this is that '22 was very strong -- strongly positively affected by late deliveries from earliest quarters. So the figures are therefore not fully comparable. But we continue to see positive sales development in the Southern Europe. And -- but in the northern part, the pattern is more similar to the Nordic market.Other markets increased from SEK 31 million to SEK 45 million, which is possible -- of course, positive and means that other markets now has become a substantial geographic market with more potential going forward. On a full year basis, North America increased from SEK 152 million to SEK 563 million, corresponding to an increase of plus 272% year-over-year. And as Jan-Erik said before, the organic growth when excluding Edgewater, summed up at plus 94%.The Nordics dropped by 29% and amounted to SEK 745 million. And as we talked about, this drop is driven on the small boat business. In total, small boats dropped by 40% year-over-year, and this hitted mainly the Nordics and also our own dealers.Europe came out 4% better than last year and mostly then driven by the southern parts. Other markets increased in total by 34%. Net sales in the fourth quarter amounted to SEK 361 million compared with SEK 338 million last year, and this is an increase by 7%. Sales by larger boats increased by 40% and including Edgewater, while sales of smaller boats and traded boats which we distribute at our dealers, decreased by 38%.The organic growth in the fourth quarter came out 20% down. And this is entirely explained by less sales of smaller boats in the quarter. And this also means then that we have taken market shares on the premium boats since the total market has -- went down a bit since 2022.Sales to external dealers and direct sales, including spare parts, increased by 24% to SEK 310 million, while sale through own dealers went down by 42% to SEK 50 million, and this is in the quarter now. On a full year basis, net sales ended up at SEK 1.98 billion, which is an increase by 8% year-over-year and by 105% since the IPO in 2020. The organic growth on the full year was minus 5%.Then we move on to the EBITA. EBITA in the fourth quarter amounted to minus SEK 4 million, corresponding to an EBITA margin of minus 1.2%. And in relation to last year, this is a drop by SEK 14 million. The drop is driven by a weaker SEK currency towards [ zloty ] and [ euro ]. That has affected our gross margin negatively by SEK 40 million. And this corresponds to nearly 4 percentage points on the EBITA.And as we talked about already in the third quarter, the reason for this is that the cost base for many of our premium boats are in [ zloty ] and we are not able to push -- we have not been able to push forward the currency effects on the revenue side.On the revenue side, the currency hedging is made on the dealer side, which means that we take the currency exposure on the cost side. And -- but what we see is that the situation will improve gradually during 2024 when our updated price list in the order book will have the intended effect.On top of this, the quarter was also affected by nonrecurring costs of SEK 10 million related to restructuring and reservations. Most of the costs is attributable both to production adjustments related to smaller boats, and this is what Jan-Erik talked about earlier.EBITA adjusted for both the currency and non-restructuring costs would have been in the area of plus SEK 20 million in the quarter compared with last year's SEK 10 million. So this has had a significant impact in this quarter, which is for us a quite small quarter.On a full year basis, the EBITA amounted to SEK 100 million, and the EBITA margin ended up at 5.2%. Adjusted EBITA for currency and non-restructuring recurring costs would have been in the area of SEK 157 million and the EBITA margin down 8.3%. So the impact here is big for 2023.Working capital then. The net working capital decreased in the fourth quarter and ended up at SEK 543 million, including Edgewater. Stock levels increased by SEK 56 million, driven by higher levels of finished goods, but also lower levels of work in progress and raw materials. The fourth quarter normally contains increased stock levels of finished goods due to those seasonality effects that we have. The same refers to the first quarter, but in relation to both 2021 and 2022, this effect was a bit less in 2023.Regarding the demo boats in our showrooms, we see that we are well balanced both in terms of volumes and mix in front of the season '24. Floor planning of own demo boats has been introduced to reducing the net working capital by SEK 53 million. Net working capital in relation to LTM sales amounted to 25%, have been made a pro forma assumption of Edgewater based on this net sales full year '22 of SEK 525 million.In 2023, we have done some strategic CapEx investments in product development amounting to SEK 44 million. And the majority of this amount refers to the development of this new 465 Coupe, which can be seen on the picture here. It's the left boat. And to be able to produce this boat, we have also done quite big investments in the Lugnas factory, which in 2023, only amounted to SEK 17 million.Regarding our financial targets, we still believe that those are relevant, if -- when -- if we are a bit behind today. And we see that our ongoing initiatives will have a positive impact on the business going forward and will enable us to strengthen the EBITA margin.The dividend policy that we have stated that we should pay out up to 30% of net earnings, taking into account financial position, cash flow and growth opportunities of the company. For 2023, the Board proposes that no dividend should be paid out as a precaution due to the market situation. The decision might be changed going forward when the market situation has become more visible.And with that, I leave the word to you, Jan-Erik.

[Jan-Erik Lindstrom, executive]

Yes. So, let's then jump over to the questions.

[Operator]

[Operator Instructions] The next question comes from Henrik Christiansson from Carnegie.

[Henrik Christiansson, analyst]

A few questions here on my side. First of all, on the margin development, going into 2024, you're talking about them being gradually restored. Could you talk us through the drivers of that and also the trajectory through the quarters? Let's start with that.

[Rasmus Alvemyr, executive]

Should I start, Jan-Erik?

[Jan-Erik Lindstrom, executive]

Yes, please go ahead.

[Rasmus Alvemyr, executive]

First, as we said, the impact from the currency is big for us at the moment and has been -- was also in the third quarter. A big portion of the order book in the fourth quarter was related to the [ old ] prices. And this will -- since the order book will be converted into new prices, then we will -- at that time, we have already adjusted for this effect. So the currency part should be better. But what we also see is that a bit depending on how the market develops, of course, but we have had a quite low level of sales through own dealers this year, which has caused us to get a low share of double margin sales. This is a possibility that we see also in the future.And since the volumes of smaller boats will be less, this also gives us a possibility to increase the margins because, in general, the margins are more profitable for us on bigger boats. So those are the biggest reasons, I would say. Please add, Jan-Erik, if you…?

[Jan-Erik Lindstrom, executive]

No, I think you captured it well there. So I don't have anything. Of course, we work, as always, with the efficiency in the cost reduction projects inside the production units, but that is an ongoing process, and we will definitely have some progress there, too. But this is the main factors, as Rasmus talked about here.

[Henrik Christiansson, analyst]

And then the second question related to that. On that restructuring charge, take SEK 10 million one-off there in the quarter, could you provide some indication of the cost [ saves ] year-over-year related to that with the measures you've done so far?

[Rasmus Alvemyr, executive]

If I start, Jan-Erik, then?

[Jan-Erik Lindstrom, executive]

Yes.

[Rasmus Alvemyr, executive]

Out of those SEK 10 million, what we have done with those is that we have taken this biggest -- the big part of that should have been referred to 2024 actually, but we took it already in 2023. So that is a reduction for '24. So that is one aspect, of course. But then you also have more soft aspects, like Jan-Erik said, that we will -- the production efficiencies that we are working on, those will also kick in gradually since we have moved production -- to optimize the production on different [ spots ] and also come a bit closer to the market by moving, for instance, the TC8 production to U.S. This will reduce for instance, transportation costs, et cetera, to the U.S.So there are lots of factors affecting this. I don't know, if you wish to add, Jan-Erik?

[Jan-Erik Lindstrom, executive]

No. It's just that this investment, you can call it from that perspective, then, will pay off and it will be a short payoff, but it's difficult because it depends on how many we will sell of that model on that market, things like that. But we also have, as I mentioned before, the C11 that moves to Poland. That is actually good for that model because, for us, it will increase the margin with a couple of percentage. But then again, how many would we sell? We know what we have in the order book, of course, but that will also affect. So it would be a short payoff of that investment. I think that's the best answer I think we can give now.

[Henrik Christiansson, analyst]

Yes. So you can't say like a certain amount of fixed cost will disappear related to that restructuring today, but it's more related to the volumes that you get, just more gross margin discussion really?

[Jan-Erik Lindstrom, executive]

Yes, it's actually both then. But the cost -- the fixed cost, that will disappear. That is several millions, of course. We have this project -- cost out project ongoing, and we are roughly looking at them not at the same time. It will come gradually, but altogether it's roughly SEK 20 million we're talking about.

[Rasmus Alvemyr, executive]

And just to fill in there, we talked about, for instance, the legal merge that we did. Of course, it's not that big money, but each such initiative will save us a couple of millions. That is from an administrative perspective. So many things are ongoing, but we have not really mentioned it in the presentation here.

[Henrik Christiansson, analyst]

And then a question on CapEx. I mean, you've highlighted the investments you've done in the new big boat, the Coupe, SEK 44 million in product development and SEK 17 million in the factory. How should we think about that CapEx going into 2024? Is that not falling off? Or will there be more of that to come? Or any sort of delta there from 2023, which was quite CapEx heavy?

[Rasmus Alvemyr, executive]

It was to begin with. So I said that, it will -- the level will decrease, absolutely. But at the same time, the product development is important. This is one of our key stones, so to say. And we will, for sure, continue the product development also next year, of course, and then the years after that. But the level will be lower, that's for sure. Yes.

[Jan-Erik Lindstrom, executive]

In -- I can fill in there. In general, generally, we normally spend around 2.5%, something of our revenues in CapEx. And that is then referring to product development. So this Lugnas investment, that was a one-off investment. That will not, of course, be recurring in that way. But the normal product development will continue. But of course, it differs a bit from year to year depending on what is in our -- on our [indiscernible]

[Rasmus Alvemyr, executive]

The joint payment.

[Jan-Erik Lindstrom, executive]

Yes, joint payment at the moment.

[Henrik Christiansson, analyst]

And then a final question for me. On the order book, if you could say anything else about the FX impact on the order book value, because there was quite a lot of currency moves in the quarter?

[Rasmus Alvemyr, executive]

And that is absolutely affected by currency and negatively affected then -- particularly then from U.S. So here, we have the -- I don't have the exact figure, but we are talking about in the area, I would say SEK 30 million something. Maybe -- do you have the exact figure Jan-Erik, in that area, I would say?

[Jan-Erik Lindstrom, executive]

No, but you're in the right area, definitely so, I don't have it exactly.

[Gunilla Ohman, executive]

So we have a couple of questions from -- the written questions that have come in. So the first one is about electric boats. Do you have any plans to manufacture electric boats in the future? One could assume that they would become more popular at some point following the trend in electric cars. I could see Nimbus taking leadership position in that niche as the engineering and quality of the group's boats is already so good.

[Jan-Erik Lindstrom, executive]

Should I take that one, Rasmus?

[Rasmus Alvemyr, executive]

Please.

[Jan-Erik Lindstrom, executive]

We're already producing 100% electric boats and have done that actually since year 2015, model year 2016. And a couple of these models are already -- or still in -- actually in production. So you can order a 100% electric boat from Nimbus. So we took an early step there, maybe too early actually. It was not -- the tipping point, as we say, was not there yet. And from that point, we have continued to develop. So we will sure -- we will, for sure, take a leading position. That is our ambition. And we have, for example, invested in electric [indiscernible]. And the reason for that was actually that the price point from our perspective was wrong on the -- what we can find out on the market. So we wanted to find a better price point with the same quality or even better quality.So we do some investments. And I also mentioned the Pascal, which is important for the electric engines, especially because we are talking about range. And if you can decrease the energy consumption with 40%, 50%, then, of course, you will double the range simple as that. And then it's achievable for most boaters. It will [indiscernible] their tasks, so to say. And it will also make, of course, the batteries. The focus on the battery, it will continue and it must continue. But with today's technology, most of the boaters can handle their boating, most of [ them ].

[Gunilla Ohman, executive]

And the second and last written question was about our financial targets. When do you estimate to achieve your financial targets?

[Jan-Erik Lindstrom, executive]

If I start, we have talked about that in the reports, and we see that it is, in a way, a journey, of course, but we will take a big step already during 2024. And as we have also mentioned a couple of times during this call, different parameters, of course. But we will take a big step in that direction, no doubt. It's hard to say when we will reach the target again. We feel confident, so to say, but it's a lot of different things that could affect the speed of this journey then.I don't know if you want to fill in with something there, Rasmus?

[Rasmus Alvemyr, executive]

No, I think that's a good answer. It's a journey, and it will…

[Jan-Erik Lindstrom, executive]

Gradually, we will improve, so to say.

[Rasmus Alvemyr, executive]

Yes, exactly.

[Gunilla Ohman, executive]

Thank you. There are no more written questions. Do we have any more questions on the line?

[Operator]

The next question comes from Henrik Christiansson from Carnegie.

[Henrik Christiansson, analyst]

So another question then. You speak about on the Edgewater side, that has high inventory levels in the dealer channels. Can you expand a bit on that? How do you expect that to be washed out? And if you could talk a little bit about the seasonality in Edgewater as well, given that's fairly new acquisition for you?

[Jan-Erik Lindstrom, executive]

Absolutely. Typically, it's a normal thing. We bought it in May. And what did the seller did -- do. They did exactly what I would have done. And try to sell as much boats as possible before we took over. And by doing that, they filled up with the inventory levels in the dealerships. At the same time, we knew that we should do a layout change in Edgewater. And that was actually planned before we took over, but we accepted that because it makes sense, so to say.So when we did that in late last year, then you can say in December, partly in the beginning also in January, we actually stopped the production of the boats we were able to do this. And at the same time, we cleaned up the factory and the stuff that we wanted to do.And the stock levels at that time on the biggest dealership -- it's a big leadership we're talking about now, we're the second biggest in the world -- then they had 77 boats when we started. And today, they are down to roughly 45, I don't have the absolute current figure. So that work is more or less already done, but that is the mechanism behind it.Then you asked -- was 3 things, please…

[Henrik Christiansson, analyst]

Seasonality.

[Jan-Erik Lindstrom, executive]

Yes, the seasonality. Of course, we have the seasonality. And as long as you sell in Florida and Edgewater is located in Florida, then it's not a problem. It's not really a seasonality. It's more when people are in Florida, so to say, not all leaving their spending all on the time. They can be back home, so to say, because most of the -- in Florida, it's still a lot of people moving into Florida. But since we are selling on the whole East Coast, more or less the Edgewater boats, of course, you have winter up in the Boston area, for example and up there -- and where we normally sell quite a lot of boats, and we are selling quite a lot of Edgewater boats. So there you more or less have the same seasonality as you have then in the Nordic countries, actually. Maybe a shorter period, yes, but the same pattern in that way.And now is the big order intake period in U.S., if you then look on the picture of where the Edgewater dealership is located.

[Henrik Christiansson, analyst]

So if I compare Q4 to say a normal Q1, is that up or down or flat or…?

[Jan-Erik Lindstrom, executive]

If you come back in Q4 and look at the Q1, was that correct?

[Henrik Christiansson, analyst]

Yes. So the SEK 90 million you had in sales in Q4, is that seasonally depressed? Or is that seasonally strong? Or -- just to gauge the trend of that in a typical quarter?

[Jan-Erik Lindstrom, executive]

Yes, for the reason I mentioned, it's a bit lower than normal. So we have that effect from the adjustment that we did on the inventory levels, which is healthy, of course, but that effect is there. So it's slightly lower. We should have a higher level.

[Gunilla Ohman, executive]

I guess we have no more questions. So I thank you very much for listening in, and we hope for spring and summer now, and our first quarter report will be on April 26. Thank you very much.

[Jan-Erik Lindstrom, executive]

Thank you.

[Rasmus Alvemyr, executive]

Thank you.