Mycronic AB (publ)

STO:MYCR

Earnings Call Transcript 2021-Q2

[Sven Chetkovich, Acting Director of IR & Corporate Communications]

Hello, and welcome to the presentation of Mycronic's Q2 report. My name is Sven Chetkovich. I'm the Director, Investor Relations at Mycronic. And with me today, I have Mycronic's CEO and President, Anders Lindqvist; and CFO, Torbjorn Wingardh, who will be presenting today. And with that, I hand over to Anders.

[Anders Lindqvist, President & CEO]

All right. Thank you very much. And good morning to you all. So what you see now on the screen is the agenda on what we want to talk about today. So it is the usual things, quarter 2 short divisional development. We have also added [indiscernible] it was interesting to also show a little bit of our sustainability strategy. Torbjorn will fit in some -- fill in with some financial details. And then we have also a little bit of information on the recently made acquisition of atg Luther & Maelzer, and then we will end with a quarter -- question and answer session, of course. And today, as an extra service to you, we have also added a compilation, which is the appendix market update, which is a compilation of market data from third parties, which can be helpful for you. And this will be in the presentation that is posted on our website afterwards. So this -- together with this presentation, obviously. Okay. If we start with the snapshot of the quarter. So what happened in quarter 2, we had -- we completed the acquisition of atg Luther & Maelzer, that was completed on the 25th of June. And all the comparisons here is to the same quarter last year, obviously. And compared to the same quarter last year, the order intake, we saw an increase of 54%. And the increase happened on, actually, all 4 divisions. We saw at the same time that the net sales decreased by 2%. And that was very much due to a less favorable product mix. We had a very good product mix in the same quarter last year and also impacted by negative currency effects of SEK 83 million. That resulted also in a decrease of EBIT with 14%, down to SEK 241 million, and we had improvements in the High Flex division, High Volume division and Global Technologies division. So the decrease was in the Pattern Generators division. The EBIT margin ended at 23% and we are very happy and proud to see that in the, what we call the former Assembly Solution business area, where we have a financial target of reaching about 10%. This year, we recorded a 13% EBIT margin. So we see step-by-step improvements on the margin side in debt on that side. The order backlog declined to almost SEK 1.8 billion, and we have 9 mask writers now in the backlog as of end of the quarter. That backlog also includes the SEK 130 million that we get together with the atg acquisition. If you go a little bit more in detail on -- details on the different divisions, starting with Pattern Generators. So again, everything is compared to the same quarter last year. So we had the sales of close to SEK 400 million and the 45% EBIT. We only had one order. The order intake improved despite that, compared to the same quarter with 39%. And we had also quite a lot of orders after the quarter, but during the quarter, we had a High Flex order. And if we look on the long-term market trend, we see that the -- all the drivers and trends for the display market and the photomask markets are all in place, we still see the same shift from LCD panels to AMOLED panels, more complex displays, more higher resolution displays and more displays with different shapes and so on. So we see that all the long-term trends are there. Although -- and that you will see also when you look in the appendix, if you want to do that, that we had a negative impact last year on the photomask market for display, which actually declined during 2020. And there's a forecast improvement from this year and also the coming years on that side. The backlog is SEK 617 million as of the end of the quarter. And that, at this very moment, we have 11 systems in the backlog, which also includes 2 orders that we got now in July. The result, the sales, the gross margin and the EBIT is lower compared to the same quarter. And although we delivered 4 systems this quarter compared to 3 systems, we didn't have any high-end system. So therefore, the margin and EBIT is somewhat lower. If we move to High Flex division, I see a very, very positive market there. We have a very strong demand from consumers. And also, we see the same strong demand for electronics in general. We could also see that the order intake increased with 63%, mainly driven from Europe and also U.S. and we had really a major big order in Europe. In the quarter, the sales increased by 6%. It's a little bit less. And then we had an EBIT of a SEK 11 million or corresponding to 4%. And the same quarter last year, we had minus SEK 15 million. And that big difference is actually mainly explained that we had a very big negative currency impact in the quarter 2 last year, which was SEK 22 million. So that -- the difference is actually less than it looks like. The strong order intake, of course, have an impact on the backlog. So we're now up to SEK 150 million, which is a very good backlog for the division. If we move further then to Assembly Solutions, high volume. Here, we see also a very strong market, mainly driven by that -- we can see that -- so the majority of the business we have here in this division is in China. And we have seen that the Chinese reduction that outside of China has -- is moving back to China to a lot degree. And at the same time, there are large investments in automation in this kind of business, which is both favorable for us. We have the #1 position in the Chinese market. And you could see that the order intake increased by 21%. Net sales increased to 40%. So now up to SEK 315 million. And for the quarter, we had a very strong gross margin, and we had a very favorable mix in the quarter, 53%. And EBIT almost SEK 100 million, which is corresponding to a 30% margin. So very strong performance in this division. If we move into Global Technologies. So this is a division which will be the home of the recently made acquisition, atg Luther & Maelzer. So the acquisition was completed on June 25. And the remaining days between June 25 and the end of the quarter is not consolidated into the results. So over the quarterly result is without the impact of atg L&M, except for the backlog in the balance sheet. So that is how we have treated that part. So after many months of weak business in the camera module for the automotive industry, we have seen quite a good increase in the activity from everywhere, both in the U.S., in Europe and China. We have seen there is quite an intense local competition in China in this business. But we have had very good order intake increase in this part of our business. We also have good progress in the dye bonding business and with also new customers and some major orders in China here as well. So all in all, for the division, the order intake increased by 94%. So a very strong increase. Sales was a little bit down, but the margin is still stable at 38% [indiscernible] margin. Also, we saw an improvement on the EBIT side. So we're happy to record a positive result. We have had negative results here for quite some time. So now we had an EBIT margin of 6% or equal to SEK 7 million. And that is actually coming from efficiency improvements that we have made during this last year. So very good to see that is coming through in the numbers here. The backlog here is now SEK 250 million almost, close to, and that includes the SEK 130 million that is coming from the acquisition of atg L&M in this case. So that was about the divisions. I feel that we have a good momentum here. And therefore, the Board also have revised the outlook for the year on the revenue side, and we believe that we will reach sales of SEK 4.5 billion. And this is at current exchange rates. And the reason for exchange is partly because of the acquisition. Of course, we will have a half year of revenues of the acquisition of atg L&M in here, in the result as well. But also we have a volume increase in the remaining business. So that together led to this decision. The other targets are still the same as they have been before that the profitability should be -- EBIT profitability above 15% over cycle, the business cycle, a dedicated specific target for the, what was at that time, the Assembly Solutions business area, where we said that we want to be about 10% for this year. And for the quarter, you may have noticed that we were at 13%. So ahead of this target right now. And the net debt should not be larger than 3x EBITDA, and this is also on average over 3 years. The long-term target is that we should reach sales by SEK 5 billion in 2023. So coming very close to that right now, as you can see. Okay. This should be a good opportunity also to show a little bit on what we are doing on sustainability and also our sustainability strategy. So at Mycronic, we have put 3 different strategic goals in place when it comes to sustainability. And the target is to reach those goals by 2030. One is around innovation and our customers, where we said we want to have innovation for sustainability, and this is really to enable our customers to achieve their sustainability goals and ambitions. And we can do that through innovation of our products. The second goal is that we want to foster and develop future engineers through diversity. And we really want to foster diversity, equality and inclusiveness in all the communities where we act. And last goal is around environmental footprint. This is our own environmental footprint where we want to reduce our own carbon dioxide emissions by 50% at 2030.And if we look a little bit on what kind of impact we have as a company on the environment and we -- if we look in terms of carbon dioxide equivalents, we have the 3 different scopes as the standard says. And the Scope 1 and Scope 2 is direct emissions. So this is all the energy we consume in our own facilities, both fuel for vehicles, oil or gas for heating or electricity and also the electricity that we use in all of our facilities. And you can see that this is only 2% of the total impact that we have as a company. So the largest impact we have as a company is from indirect emissions, which is 98%, which is business travel, transportation, waste and so on. The largest part of that one is the use of products. The use of product is 80% of the total impact. So this is actually the customer's use of our products in their businesses. That is where we have the biggest impact. And this is also, of course, where we have the biggest possibility and opportunity to make a change. And therefore, we have this target innovation for sustainability. And I want to show you one example on what we're doing within this initiative. And this is really about our mask writers. So the mask writer sold from the PG division. They are typically used 24 hours a day, 7 days a week at the customers. And there is, the laser in the mask writer consumes quite a lot of energy. And this use of mask writers is the largest source of the emissions that we have at Mycronic or that we generate at Mycronic. On the innovation side, what we have done is that with the latest mask writer, the SLX, we have a different type of a laser, which is called solid-state laser technology. And this laser technology can save up to 99% of the energy used for the lasers, very big improvement in the area where we have the biggest impact. So our ambition, long term, is to enable this technology in all of our mask writers in the future, and then we will have quite a significant change on our impact on environment.All right. That was all for me. I will come back a little bit later. But now Torbjorn will talk a little bit about the financials.

[Torbjorn Wingardh, Chief Financial Officer]

Thank you very much, Anders. When we look at net sales and EBIT margin [ our ] rolling 12 months, we can see that we had a revenue amounting to SEK 4.4 billion. And we also have an improved EBIT in the 3 divisions, just like Anders mentioned, High Flex, High Volume and Global Technologies coming out of the previous business area, Assembly Solutions. We are very satisfied about this improvement, which has been very good work by these divisions. And for Pattern Generators, it's still generating a very good result. But in terms of comparison with previous -- in the quarter in the previous year, the product mix is less favorable for Pattern Generators and that, of course, then impacts our EBIT margin in Q2, which ended up at 23% and for rolling 12 at 29%. And as we clearly see illustrated here on this slide that our aftermarket business really constitutes a strong and stable base of recurring revenue for our company, which we find is a very, very good thing to have in terms of our performance. If you look at then at the lower EBIT in Q2 where the 23% should be compared to 26% in the same quarter in the previous year. You can see that the effects come partly from volume and partly from the COGS, which was, of course, impacted by product mix. The negative volume effects, they were pertaining to Pattern Generators and to Global Technologies, while we could see a positive contribution from High Flex and High Volume divisions. Increase in R&D expenditures, and we'll come back a little bit to that later. Of course, R&D expenditures are very important for our company, for our continued strong future. We have an impact from lower capitalization behind this increase in R&D costs. And as you know, and it's important to reiterate, that we are very conservative in terms of activating R&D cost on our balance sheet. But this time, there was a bit of a difference. And the difference was that the capitalization was lower, as I said. In terms of the selling cost, that has been impacted by M&A activities and very happy about the acquisition that we could conclude here in quarter 2. And then in terms of current results, they were, in this quarter, positive effect compared to ending up at other income and expenses. And when looking at the quarter in the previous year, you can see there are quite big swings in some of the currencies impacting us. So ending the quarter then at 23% EBIT margin for quarter 2. If we then look a little bit closer and now when we present our divisions externally since some time back, we can see that the change here, as we have described, to a large extent, is for Pattern Generators. So while Pattern Generators still generate a very strong performance, it's when comparing to the quarter 2 in 2020. It's SEK 99 million lower. Then, as we said, for the other divisions, there is a good improvement, High Flex, SEK 26 million, High Volume, SEK 37 million and also Global Technologies, despite lower volume, still an improvement because they have worked very diligently on their cost side. And then for the group functions where we have taken costs for the acquisition, we have an increase in cost at that part of the business.And as you can see, the 3 divisions from the former Assembly Solutions could not fully outweigh the change in product mix for Pattern Generators, but it's a significant chunk that could be compensated by improvement in those divisions, which we've been very, very satisfied about. Looking then at R&D for innovation and growth, which continues to be very important for our future. We would like to iterate that, of course, our spending in R&D is based on conscious and business cases in each of the divisions in terms of their respective R&D opportunities. And that is the guiding principle in a new organization with decentralized decision-making. So underpinning this is the decisions -- in the respective divisions. Still, we find it's interesting to display and comment at the group level, how we develop here. And as I said before, impacted by lower capitalization, the R&D spending increased SEK 10 million compared to quarter 2 in last year. And we have a rolling R&D cost-to-sales ratio at 12%. Of course, in terms of our strong balance sheet that had an impact from the acquisition that we performed. So in the investing activities, which you see here, is almost SEK 1.1 billion. The acquisition of atg L&M was a little bit more than SEK 1 billion. In terms of the financing activities then, we utilized credit facilities for almost SEK 500 million. We also then paid the dividend of close to SEK 300 million. And we also had a small acquisition of noncontrolling interest in a subsidiary to Axxon. We end the quarter with a net cash of a little bit more than SEK 300 million on June [ 30th ]. And in terms of available cash, we then have a little bit more than SEK 1 billion cash at hand. And having said that, I hand the word back to you, Anders.

[Anders Lindqvist, President & CEO]

Okay. Thank you very much. And I want to talk a little bit about this latest acquisition of atg Luther & Maelzer. So atg L&M is a company headquartered in Germany, Wertheim in Germany, 190 people in total, global business and global coverage with all these people. And the company develops and produces and sells what is called Flying Probe and Grid Test systems for PCB. And this is -- what this equipment is doing, it is testing connections on PCBs with pins. And we have here 2 different type of technologies for doing that. So you can see illustrated on this page on the top right is what is called Flying Probe. And the Flying Probe test is robotized where the pins that tests the electrical connectivity on the boards. They are robotized and came move in various patterns, which allows for a very high flexibility in the test and they can test different type of boards with high throughput at the same time. The other technology is called the Grid Test and the difference to that. So it still pins testing electrical connections, but it's in a fixed pattern. And this is for high-speed production because here you have no flexibility. You put the grid in a specific pattern that corresponds to the Board, and then you can move the products very fast through this process. So we have these 2 technologies of electrical testing. When it comes to the different product lines, so we have what is called Flying Probe PCB test. And this is these robotized Flying Probe technology on PCBs and typically with high flexibility in the low- to mid-volume market. We also have Flying Probe technology for testing substrates with the same robotized technology solutions. And here, we can test down to very high accuracy of 10-micrometer on the pad sizes for different substrates. And then we have the grid PCB test, which is just a fixed pattern on the testing pins for high-volume production. So this is the offering. In addition to that, atg also has a very strong aftermarket and consumable business, which is very nice. Why we believe that this was a good company for Mycronic to be the owner of is that you could see that atg L&M is really -- have a very good DNA and culture. They have a very similar thinking with us. We have a similar position in most markets where we also have a strong position in the High Flex market with high precision and a niche position in this kind of market. The business is very stable. It's well established. It's been there for a long time. It's -- the company has a leading position in the Flying Probe test. Very solid aftermarket business and the strong profitability, which is also very stable. So I think it's a really good company and a very good fit with us. And why we believe that we can be a good owner and a good home for atg L&M is that coming out of different ownerships in the past, we will be a long-term focused owner, really, to allow atg L&M to focus on its business and develop that business. We have -- what we can offer is that we have a very strong global presence in the right markets and the right places in the world that atg can leverage. And especially strong presence, what we have from Mycronic is our China presence with more than 800 people in China right now with that atg L&M also can leverage on. And you saw that just from [ Torbjorn ], even though we have just made acquisition, we still have strong financials to allow for further expansion around this technology. So you see that we can be a very good owner and very happy to have atg L&M on board with us. All right. So just some final remarks before we move into the Q&A session. So the things that we have, see that we have a very strong position for continuing with the sustainable profitable growth. We have, with the setup and the operating model that we are running in, a very customer-centric, very scalable and decentralized organization. In all our businesses, we had a very competitive product portfolio, which we continue to invest in to stay competitive. And we want to make this sustainable growth through a combination of organic growth and acquisition driven growth. And on top of everything, very dynamic, innovative and responsible culture. I think we have a very good position to continue our growth journey. And yes, we look forward to the coming quarters with that. All right. That was everything from me. Now we can move into the Q&A session.

[Sven Chetkovich, Acting Director of IR & Corporate Communications]

Okay. So now we're moving over to your questions. In general, please keep it to 2 questions per time in order for -- in order to allow for everybody to be able to ask questions. And if you have more questions, you could ask them later, and we will try to get to those questions as well. So then I will ask the operator, do we have any questions?

[Operator]

[Operator Instructions] Our first question comes from the line of Daniel Djurberg of Handelsbanken.

[Daniel Djurberg, Research Analyst]

Congratulations to a very good report in especially the former AS segment. I would like to ask 2 questions, if I may. And that is mainly to the -- on the [ PG ] side on displays. We saw in your presentation that -- in the appendix, that the market expects where the market growth for photomasks in display is 4.5% this year of 2020. I was wondering if you have any insight in how this growth is expected to pan out in terms of more advanced mask, AMOLED and G10.5 or versus a little more low end up to Generation 8 and more LCD. So far, the orders you took here in July has been more tilted to the lower end. But hopefully, we will see the more advanced masks also in the second half, but any comments would be great.

[Anders Lindqvist, President & CEO]

Yes, that's a difficult correlation to be made there. I think in general, I would say that an increasing photomask market must be a good thing for us and so on. And then what kind of equipment that will result in, but we see that there is still a very strong -- you see also in the same -- on the other page, I think after that, actually, that you can see the transition from LCD to AMOLED is quite stronger than the display area growth in general. So we still believe in a technology shift there where the AMOLED that requires more advanced photomask will have a stronger growth over the other type of technology. And also the same is valid for the new kind of the complexity of displays where we see -- we believe that there should be a breakthrough or you will see more of a foldable and curved and new shapes and so on. So how that will be at the end, that we cannot really comment on, of course. But I think on the market trends, we believe that it's going in the right way.

[Daniel Djurberg, Research Analyst]

And can you -- do you have any insight on how large part of the AMOLED that you do serve, or is currently served by the Precision 800 and so on, and how much more masks that need to be done here and if you expect to? If you understand my question, it's the underlying demand uptick in AMOLED versus the current availability for advanced photomasks.

[Anders Lindqvist, President & CEO]

Yes. I can see where you're going, but it's not possible to make that correlation as the -- we know that -- I mean, all the AMOLED displays are -- and the back planes and so on, or the back planes [indiscernible] are using high-end mask writer. But the driver for mask writer is the change in technology, so -- and not the volume of it, and so and so. And that split we cannot see.

[Daniel Djurberg, Research Analyst]

No, of course. And the last question, if I may. And that is, with regards to the EUVs on competition to SLX. Is those machines much too expensive still to be seen as a competition to the SLX business or are they coming down in price, so it can start to compete also with the SLX?

[Anders Lindqvist, President & CEO]

No, there is a significant price difference between that kind of equipment. It's not only in the writer itself, it's also on the surrounding equipment, what you need downstream and upstream in such a process. So you need to build the complete process around the EUV technology or the laser technology and the equipment used, also after and before, also have a very different price point and so on. So there's a clear distinction where you can use laser technology and where you will use other type of technologies and it's really coming down to the node sizes, the fine patterns are printed.

[Operator]

Our next question comes from the line of Fredrik Lithell of Danske Bank.

[Fredrik Lithell, Senior Analyst]

I had a thinking around the Micro LED and Mini LED. If you could, sort of, address those 2, sort of, emerging technologies, even though they are in very early stages. What would that, sort of, imply for you in terms of what type of equipment on the PG side that would be demanded for those type of applications? Are there any differences? Are those applications even more complex, each of them? Or is it any other things we should think about there?

[Anders Lindqvist, President & CEO]

Yes. I think that's a very good question. And we could see that those technologies are picking up and also have a positive impact on our other divisions actually from this technology as well, which is in total a good thing. So I cannot give you a very straight answer, but the -- both the Micro LED and the -- Mini Led and the Micro LED technology requires also back planes in building up the displays quite similar to the LED technology. And -- so still photomasks will be required for making that. But how that will look at the end, I don't have an answer on that actually.

[Fredrik Lithell, Senior Analyst]

Okay. Can I take another question on -- then on the similarities or differences between High Flex and High Volume. I mean, you have a very strong demand from customers in High Flex, as you have in High Volume, but you have very different type of EBIT margins here. Is that due to -- and within High Flex, for example, you have stated in earlier years that you are one of the leaders and have up to maybe 50% market share on the High Flex. Is there a difference between these 2 segments that make it so that the High Flex should run with around 4%, 5%, 6%, 7% EBIT margin. Meanwhile, the High Volume is 20% to 30% EBIT margin? Or can we see High Flex moving higher?

[Anders Lindqvist, President & CEO]

Yes. So Yes, it's a very different segment. I mean, if you look on the end products, it's really High Volume is mobile phone, consumer electronics, computers. And for our High Flex division, we're really serving the market that where the end products are typically medical equipment or aerospace equipment and high-end industrial equipment and so on. So very different, but the demand is strong in both right now. If we start with the High Flex, so we are not happy with the margin we have in High Flex so there's -- I mean that's also part of this former -- when it was all Assembly Solutions. So we said we want to be about 10% and with a strong emphasis on above 10%. Now of course, High Volume is contributing quite a lot to that difference, but we want all divisions to contribute to that target quite a lot. And I believe that we can reach higher margins also in the High Flex business actually on that. So still work going on there.I think why we do so good in the High volume, it's also different technology. So the majority of -- the equipment we sell in High Volume is dispensing equipment, which is higher margin product than -- compared to what we have in the High Flex division, which more pick and place and jet printer equipment, which is typically lower-margin products. It's also the different type of products that generate a different type of profitability here.

[Fredrik Lithell, Senior Analyst]

But the jet printing, for example, which is a very unique technology where you don't really have any competition should carry and should help the High Flex to create better margins due to the uniqueness and thereby, that you can price it in a different way?

[Anders Lindqvist, President & CEO]

Yes, absolutely. And we are looking, we are striving for better margins in the total High Flex. And I think the same is actually valid for the uniqueness of our pick and place equipment and also the storage solutions that we have. So improvement possibility all across on that.

[Operator]

[Operator Instructions] Our next question comes from the line of Mikael Laséen of Carnegie.

[Mikael Laséen]

I have a couple of questions on atg. First of all, can you tell us the growth rate that you have generated past couple of years, maybe or 4, 5 years? And the expected market growth going forward for Flying Probes and Grid Test systems?

[Anders Lindqvist, President & CEO]

So no, we cannot. I mean, they had a different owner in the last years and so on. I think we stated when we acquired that last year, they had a revenue of SEK 420 million, if I look at Torbjorn a little bit.

[Torbjorn Wingardh, Chief Financial Officer]

Yes. That's right.

[Anders Lindqvist, President & CEO]

Yes, SEK 420 million for 2020. And so that is the only -- what we can disclose from that.

[Torbjorn Wingardh, Chief Financial Officer]

I think also we said that the growth rate has been on the conservative side over the last couple of years, we've indicated that also.

[Anders Lindqvist, President & CEO]

Yes, exactly. So it's not -- this business is not a superfast growing business, but very stable and with moderate growth in it.

[Mikael Laséen]

Is this also the case going forward that they will have maybe 3%, 4%, 5% growth? Or could it be better than at double digits maybe?

[Anders Lindqvist, President & CEO]

So we'll not comment on the numbers there. But we are looking for -- we want -- our expectation is that this business should grow, but not that super high numbers.

[Mikael Laséen]

Okay. Got it. And then just curious to hear about the growth drivers, the Global Technologies product areas. They have good support from structural trends, autonomous driving and 5G and data center investments and so on. So what about atg, is this company also benefiting from underlying trends in the PCB or substrate markets in any way?

[Anders Lindqvist, President & CEO]

Yes. And it's different type of drivers. It's also the drivers we can generate with the products, but also in the market. If you look in the market, so the markets we're testing in general is a growing market. There's more quality assurance, there's more testing. And we also know that the High Flex side of market is a good market to be in, especially now with production being more localized everywhere. So maybe the volumes will be actually lower when it is produced in more places than one. The big growth driver in this market is on the substrate side, which is still quite a small part of the testing or of the -- how do you say, the market products that will require testing. And the substrate market over PCB had a quite strong growth actually. So that is also a driver to participate in that one. So for sure there are as well here some good market drivers for us.

[Mikael Laséen]

All right. That was my 2 questions. Maybe can you say something about the PPA amortization, if you have any early guidance on that would be great.

[Torbjorn Wingardh, Chief Financial Officer]

So we -- just like we always do, following the IFRS setup, we have done the preliminary PPA, as you can find in the quarterly report. We see the pattern just like in our other acquisitions that, in respecting the valuing the inventory at market value. It means that for the first 2 quarters, we will have an impact of turning around that inventory that has then been valued upwards in connection with the acquisition and so lesser gross margin than what is the case on the underlying. We have commented on as we proceed, that we will use similar types of communication tools to show what the underlying -- how the underlying business is performing for that. But of course, in the coming 2 quarters, the contribution for this recently done acquisition, just like in our previous acquisitions will be lesser than what it is in the medium and long term.

[Operator]

We currently have no further audio questions. I will hand back to the speakers for any further remarks.

[Anders Lindqvist, President & CEO]

Okay. With that, I think we've reached the end of today's presentation. Thank you for attending.

[Operator]

This now concludes our conference call. Thank you all for attending. You may now disconnect your lines.