CompuGroup Medical SE & Co KgaA

XETRA:COP

Earnings Call Transcript 2023-Q1

[Operator]

Ladies and gentlemen, thank you for standing by. My name is Emma, your Chorus Call operator. Welcome, and thank you for joining today's CompuGroup Medical Investor Analyst Call. [Operator Instructions]I would now like to turn the conference over to the Corporate Vice President, Investor Relations, Claudia Thome. Please go ahead.

[Claudia Thomé, executive]

Hello, everyone. Good morning, and welcome to the CompuGroup Medical Investor and Analyst Conference Call for the First Quarter Results 2023. It's great to have you with us, whether you have dialed in via phone or whether you are following the webcast. You find all the relevant information such as the presentation, the quarterly statement and the press release, which we published early this morning on our website.We're going to start with the presentation by the spokesman for the Managing Directors and CFO, Michael Rauch, followed by the Q&A session. Before we start, as always, some housekeeping remarks. Let me remind you on our safe harbor statement, which is shown at the beginning of the slide presentation and is valid for the entire call. Thank you for your patience. And now let us start. I hand over to Michael Rauch. Michael, over to you.

[Michael Rauch, executive]

Thank you, Claudia. Good morning, ladies and gentlemen, and a warm welcome to all of you. What began more than 35 years ago with a visionary idea from our company founder, Frank Gotthardt, is now one of the leading software providers in the eHealth sector. What drove Frank back then is still our purpose today. Nobody should suffer or die because at some point, medical information was missing.And I'm excited how it drives the CGM team, our employees and colleagues to go the extra mile for our customers, the actual everyday heroes in health care, doctors, dentists, pharmacists, paramedics and all other health care practitioners. We are supporting our customers, focusing on helping them with ever more digitized processes, tools, solutions and decision support.We are thrilled how everyone at CGM delivered during the first 3 months 2023, to report the results of a double-digit revenue growth. With 16% growth, we achieved more than EUR 290 million in group revenues. Organic growth, positively impacted by the ongoing connector hardware exchange showed a plus of 11% and 6% excluding Telematics Infrastructure, completely in line with our midterm ambitions of around 5% average organic growth.Recurring revenues grew also in the double digits by attractive 12%. And the 68% share of recurring revenues is an excellent level, a strong proof of our resilient and sustainable business model. Adjusted EBITDA grew in line with revenues at 16%, hence improving also our bottom line significantly.We are confirming our full year guidance. I will come back to that at the end of the presentation. When talking about the strategic milestones we laid out over the last 3 months, I want to start with the Ambulatory Information Systems segment, which showed great progress and had an excellent start, particularly in the U.S. As announced at the end of 2022, when the rollout of eMedix started, we have successfully provided the U.S. CGM Prima customers with our product and the rollout currently continues.Our U.S. team also won new partnerships for patient payment solutions and delivered organic growth above the Q1 segment average in AIS. Moving into year 3 post the eMDs acquisition, we see excellent progress, including a successful integration of last year's acquisitions in the lab business.In Germany, we supported our dental customers with mandatory e-billing modules, thus helping them on their way to an ever more paperless workflow. In the European AIS business, we've successfully implemented our strategy for better customer centricity, resulting in customer wins in France, Denmark and Norway. Looking at the Hospital Information Systems segment, it is visibly clear that the demand for our next-generation technology is unbroken. The continuously growing order intake from Hospital Future Act projects to now more than EUR 110 million demonstrates customer confidence in our capabilities.For the third time, we're increasing our revenue target to now EUR 110 million to EUR 130 million related to the German governmental initiative. We start to see the revenue recognition relating to the Hospital Future Act building up, delivering a low single-digit million euro amount per quarter. We expect an ongoing ramp-up of incoming revenues over the next years.Business development in the hospital sector has been strong, not just in terms of the Hospital Future Act. The HIS team also won further orders in France, Switzerland and Germany with a high interest in VISUS, proving our M&A strategy to be right. Our HIS colleagues executed the go-live of several projects in the first quarter, both in the clinical and in the social sector.And finally, the feedback and the turnout of the German [ FairdemiA ], one of the most relevant industry fairs, was amazing, probably one of the best ever. Talking about the [ Demia ] brings me to the next topic. In April, we announced the acquisition of a majority stake of the patient portal provider, [ Amdoc ].We welcome about 100 new highly motivated colleagues who are focusing on the digitization of hospitals by integrating patients into administrative and medical processes before, during and after inpatient treatment and providing far-reaching relief and support for medical staff. More than 300 Amdoc customers are already enjoying the benefits of the Smart Health platform, which connects Amdoc's modular patient portal with services such as video consultations, appointment booking, medication plans, treatment documents and much more.The combination of CGM and Amdoc makes it one of the leading providers in the digital integration of patients in the inpatient sector in Germany. The timing of this acquisition has been perfect given first, the additional momentum patient portals are gaining due to the Hospital Future Act; and second, the fact that both teams, our CGM colleagues and the Amdoc team were present at the Demia, the ideal customer interface opportunity.Talking about interfaces brings me now to the Consumer and Health Management Information Systems segment, where we delivered in both pillars. In the TI business, more than 30,000 hardware connectors have been exchanged as planned until the end of the first quarter. We've been guiding towards this number for 1.5 years and have now delivered spot on.Also, we are confirming today that we have received the approval for the so-called PDV 5 software upgrade, which will be recognized in full in the second quarter of this year. In addition, we are preparing for the next generation in Telematics Infrastructure, being on track concerning our road map regarding the development of the high-speed connector and finalizing the development of a TI messenger.The other important pillar of the CHS segment, the data business also delivered during the first 3 months 2023. INSIGHT Health posted another strong quarter, while the integration of our next data jewel, our latest acquisition, GHG has started very promisingly.Let's dive into our financials. Before discussing the financial performance of the segments, let me highlight our top line. As already mentioned, total revenues are up 16% reported and 11% organically. Organic growth, excluding Telematics Infrastructure, resulted in a 6% increase year-over-year.Recurring revenues increased by 12% and represents 68% of total revenues in Q1. Our revenue quality is thus on a very high level. Shedding more light on the organic growth rates. It is impressive that all, and I repeat, all our segments delivered organic growth in Q1, above the full year level in 2022. The TI connector hardware exchange did not only contribute to a 37% organic growth in the CHS segment, but also led to all of our German AIS sales and service teams being focused very much on making sure that our German health care providers were kept up and running to take care of the patient's well-being.Still, AIS overall delivered a solid 2% organic growth [Technical Difficulty] HIS and PCS both showed an excellent performance with 11% organic growth each. All in all, we reported a strong start into 2023 on the revenue side and show great progress towards our ambitions. Adjusted EBITDA developed in line with revenues, resulting in a EUR 60 million for the first quarter, growing 16% year-over-year. Also, our adjusted earnings per share increased to EUR 0.45, where we've seen a strong free cash flow increase with EUR 79 million in the first quarter, as anticipated in earlier calls.Let me now go even into more financial details, starting with the ambulatory segment. Supported by acquisitions and currency tailwind from the U.S. business, revenues grew by 4%. Organic revenue growth stood at plus 2%, as already mentioned, driven by the excellent U.S. progress in the eMedix rollout and a compelling dental business in Germany. Adjusted EBITDA grew double-digit, resulting in a better margin compared to last year's first quarter.Coming to the hospital segment, we see that revenue growth was again very strong with an organic growth rate of 11%, which is remarkable given the fact that the Hospital Future Act effect is only starting to ramp up. Due to additional expenditure for larger projects as well as investments to execute on the Hospital Future Act and further rollout of our G3 technology, adjusted EBITDA decreased year-on-year, resulting in a weak margin quarter in the HIS business. However, we expect the turnaround on the margin side from the second quarter onwards building up in the hospital segment.Let's move on to the Consumer & Health Management segment. Revenues here grew 63%, mainly driven by the TI replacement of the hardware connectors and by the strong development of the acquired INSIGHT Health, which will start to support the organic growth rate at the end of Q2. Organic growth, excluding Telematics Infrastructure only slightly increased in line with macrocrisis-related headwinds in the pharma industry.This has an impact on the total serviceable market for our Intermedix business with marketing budgets and pharma declining. Including INSIGHT Health, we expect organic growth for the data business in CHS to pick up going forward. Corresponding to the number of exchange connectors and the related revenue growth, adjusted EBITDA recorded 56% higher compared to last year's quarter, resulting in an adjusted EBITDA margin of 25%.Finally, let's talk about our pharmacy segment. Again, the PCS segment recorded an outstanding quarter with revenue growth of 17%, supported by the acquisition of an Italian company, so that's 4K Srl, offering advanced digital and on field services for health care providers, covering all processes from online media management for pharmacies and clinics to drug home delivery. Organic growth was also very strong with 11%, mainly driven by the sale of hardware in Italy, working off the high backlog generated in Q4 last year, as we reported about.The German operations also contributed to the growth. Due to a controlled and very prudent cost management in Germany and Italy, our adjusted EBITDA in the segment grew by 56%, leading to a margin of 34%, up 9 percentage points versus the prior year quarter. All in all, an outstanding quarter in the PCS segment, so congrats, colleagues.As you all know, in 2021, we started our investment initiative for future sustainable growth. I'm pleased to report the next step in the right direction towards a normalized cost level. After leaving the core investment phase last summer, the organic development of personnel expenses has almost been stable and was indeed on the prior year level in Q1 2023 despite increasing revenues and ongoing growth opportunities.This is a nice snapshot and the result of the focused efforts of all CGM employees. Starting in the second quarter, we're going to see a stronger increase in organic personnel expenses again due to the fact that we are increasing salaries to mitigate inflationary pressures. Still, the increase in personnel expenses is not going to be at the levels we saw in the years 2021 and 2022 during the core investment phase with this massive buildup in head count.And not only our personnel expenses are normalizing, so do our R&D expenses. After ramping up the R&D intensity since the end of 2020, the total R&D expenses of EUR 59 million in Q1 2023 are still on a high level, but compared to total revenues, the share already declined by 3 percentage points versus Q1 2022. R&D CapEx is stable versus prior year. I'd say this is the next proof of the path we've taken that it's the right one. We are well on track towards a significant improvement in adjusted EBITDA in 2023.And as expected, free cash flow is also catching up. With EUR 79 million free cash flow recorded in Q1 2023, we improved by EUR 14 million from last year's level and thus are on track towards more than EUR 100 million towards our more than EUR 100 million goal. After a challenging year 2022, where cash had been impacted by the delay in terms of cash collection from year-end revenues, delayed revenue recognition and the inventory buildup for the TI hardware Connector exchange, we anticipate this year with a much better free cash flow.However, please note that the free cash flow is typically high in the first quarter of the year, which is our pattern due to the annual invoicing of recurring revenues. Q2 is typically weak due to bonus payments and salary increases, whilst Q3 and Q4 depend rather on cash progress with our customer projects. Net debt, a figure which many investors nowadays look at, at the end of the first 3 months was around EUR 50 million lower compared to the end of December 2022, leading to a lower leverage of 2.8x EBITDA.So we dropped below the 3, 2.8x EBITDA. CGM secured a crisis resilient financing at attractive conditions already some time ago with more than 80% protected against rising interest rates. Our financial firepower is very strong as besides the EUR 400 million term loan and the EUR 600 million revolving credit facility, we also have access to the EUR 200 million credit line of the European Investment Bank.So summing it up, growing revenues shifted gears towards higher EBITDA, a much improved cash position and the reduced leverage. I'd call that a great start into a promising year. Hence, we confirm our guidance for 2023, where we expect an organic growth rate of around 5% on group revenues in line with our midterm targets. The adjusted EBITDA is expected to deliver a significant step-up to a range of EUR 260 million to EUR 300 million.For the adjusted earnings per share, we forecast an increase by at least 10%. The share of recurring revenues is anticipated to be between 60% and 70% compared to the total revenues and the free cash flow is expected to ramp up to more than EUR 100 million. In light of the midterm ambitions, we are making progress towards our targets. By focusing on core competencies, supporting health care practitioners and bringing more digitization into the health care sector, we already took organic growth to a new level and maintain this goal to deliver an organic growth CAGR of around 5% until 2025.And these revenues will be generated with a high quality, leading to a recurring revenue share of more than 70% in the year 2025. Combined with increased efficiency, this will expand our adjusted EBITDA margin to around 27% by 2025. Looking forward towards our upcoming disclosure events, the next important milestone is our virtual Annual General Meeting 7 days from today, followed by the publication of the results of the second quarter at the beginning of August. If you haven't already done so, please save the date for our Capital Markets Day here in Koblenz for September 7.On that day, we will update you on our progress of our mission. We create the future of eHealth. Thank you for your attention, and we are now looking forward to your questions and I'm handing over to the operator for the Q&A session.

[Operator]

First question is from the line of Florian Treisch, Kepler Cheuvreux.

[Florian Treisch, analyst]

Yes. I have 2. The first is on the hospital business. And congratulations to another lift to your order intake number relating to the future hospital act. I would love to get some more insight like where is that coming from? Does it imply market share gains, which would be my suggestion based on the pure number and the number you flagged what is at kind of at stake at the beginning of the journey. So sorry, basically some more on site why you are winning here relative to competition.The second is on the AIS segment. So to be frank, I'm a bit disappointed in a way, 2% sounds nice if you compare to the 1% last year. But clearly, if you strip out U.S. business, European was probably not growing at all despite significant price increases you have announced in Q4, which should have a major impact on your recurring revenue share, which you mentioned are kind of well on track and all generated in Q1. So can you quantify the pricing impact in Q1? And what we -- or how we should look at it on a kind of gradual perspective quarter-over-quarter over the course of '23?

[Michael Rauch, executive]

Thank you, Florian. I'll start with the first question. On the HIS side, yes, indeed, we've gained a lot of new customers that we weren't expecting to gain so much, so which is great and it's a brilliant proof point of our skills here and also of the competence, which we by now have with our much enlarged HIS business and also due to the G3 clinical software technology. So this is really great.On the AIS side, indeed, you're right, we are expecting a ramp-up of the growth on AIS, but we are competing against strong module sales in the first quarter of 2022, which were not repeated. So we see a little bit of a volume drop here in Europe, but we have price increases and that price increases are going to flow also through in the next quarters. Let me, however, also mention one particular other instance, which is very important and which those of you that have been following us for many years might be aware of.The moment we have connector exchange activity like we did have 5 years ago that always has done something to the AIS organization in Germany because they are helping making sure our customers stay well connected to treat the patients. And therefore, most of the activity also of the sales force on AIS helping and making sure that the connectors were exchanged.

[Operator]

The next question is from the line of Knut Woller with Baader Bank.

[Knut Woller, analyst]

Three quick questions. The first on the hospital segment, Michael, you said that you're expecting here an improvement of margins from the second quarter on. Can you give us here some color on the margin trajectory? And would it be fair to assume that it should be possible to return to something like mid-teens margins in the coming quarters?Then secondly, on the cash flow, you mentioned that Q2 is naturally a bit weaker due to bonus payments. Looking now at the PTV 5 update, is it fair to assume that we should have some tailwind, which mitigates the weaker -- usually weaker cash flow in the second quarter? And just a quick one on the impairments. It looks a bit that they have been a bit higher than normally in the first quarter. And how should we think about impairments in the coming quarters?

[Michael Rauch, executive]

Thank you, Knut. I'll start with the question on the HIS side. Yes, you saw that the margin was also -- or you heard it maybe was also qualified by me to be a weak margin quarter on the HIS side. That is true because we had some additional expenditures to take for some larger projects and for some development efforts. These will trickle out, so in a sense of trickle down so that we will expect over the next coming quarters, an improvement in the margin.And yes, the intention is to return to double-digit margin, but I don't want to go into now being anchored into Q2, Q3. But over time, you will see an increase back to double-digit here on the HIS side. That is for sure. Second question was regarding the free cash flow and the impact of PTV 5. So as I said, we just received today the final approval of the PTV 5, which is great, which means now we will invoice our customers and then it depends on the timing on the cash collection. So we expect the majority to still come in May and June, but there will be a little bit also shifting into July.Your third question was on the impairment. This by nature, goes as we do as a test over time and can happen. Your question was, what do we expect going forward? Would we expect the same amount? I'd say it's safe assurance to say it's not going to increase. But I would not say it's going to go significantly down.

[Operator]

Next question is from the line of Laura Metayer with Morgan Stanley.

[Laura Metayer, analyst]

Three questions for me, please. The first one is on the midterm growth for the HIS segment. So if we assume that the revenues related to the Hospital Future Act are recognized in the next 4 years, that implies already high single-digit organic growth for the segment, which is just above your midterm guidance. So does that mean there is upside on the midterm guidance in the HIS segment based on the latest order number?And also, if you can comment on what you're assuming in terms of midterm outlook for the underlying business, excluding Hospital Future Act and also the regions outside of Germany, that would be helpful. The second question is on the organic growth of the data business. So you're flagging macro headwinds in the pharma sector. How is growth related to INSIGHT Health and also the data-driven software modules that is sold to doctors? Is that part of the segment growing?And the last question is on EBITDA margin at group level. How should we think about the margin development for the rest of the year? Should we expect a gradual improvement? And if so what is driving that other than the HIS segment margin improvement?

[Michael Rauch, executive]

Thank you, Laura. I'll start with the middle question, the question on data. Your assumption is exactly right. So I just wanted to confirm. On the first question regarding the midterm growth, yes, we are seeing with the order intake in Hospital Future Act and the general development with customers demanding more and more of our G3 technology, a good opportunity to see higher growth here on the HIS segment. We haven't updated our guidance yet for the longer-term perspective. But indeed, we would expect the year 2024, 2025 to be good ones in terms of HIS growth.Last question was on the EBITDA margin. Indeed, we want to see an improvement here. That's why we basically said 2021, 2022 with some impact, were still investment, yes, 2023, we want to see a margin improvement. That's why we guided EUR 260 million to EUR 300 million EBITDA, which is a strong improvement. Now you ask how is that going to come across the quarters. We don't guide on specific individual quarters. But if we take the second quarter, which we are in now, the PTV 5 upgrade that has a positive impact on us, so it's going to help us.And then typically, we are stronger coming out towards the second half year. So all in all, we would see that we see an increase in EBITDA. We have seen 17% -- sorry, 16% increase in EBITDA for the first quarter EBITDA adjusted. And I would expect for the second quarter, a much stronger increase in EBITDA than in sales line, bringing up our margins.

[Operator]

Next question is from the line of Martin Jungfleisch with BNP Paribas Exane.

[Martin Jungfleisch, analyst]

I have 2, please. The first one is on wages. Could you share what level of personnel expense increase we should model for the second quarter given you mentioned that wage inflation will kick in, in the second quarter? And also if you could share some feedback from discussions with employees on that topic and if there has been any change in attrition rates so far?And the second question is on the Epic entry in the hospital business in Germany. They are rolling out their software solutions in a couple of hospitals in Germany in the next few years. Just wanted to see what your view is on that. Do you think Epic will mainly concentrate on a few larger hospitals? Or is there a risk of a more wide expansion here in Germany?

[Michael Rauch, executive]

Thank you, Martin. Regarding the salary inflation, that depends per country. But on a mix on average, we would say 3% to 5% is what we expect now to come. And this is always, as we typically do here at CompuGroup performance-based. So yes, one could say is that in line with the inflation expectation of the employees. We believe it's okay. We don't see major attrition risk at the moment. But of course, we are going to monitor and follow that very closely.On the second topic, the Epic entry. Well, I don't know if you have been following that very closely, but it was quite unusual that the German Minister of Health actually proclaimed one of the software vendors to be his favorite one, right, which caused a lot of uproar and irritation in the market. We don't know what the plans are. Most likely, there might be one prestigious project, which may be Epic and the Minister of Health have in mind, we have no clue what's going to happen here.But we don't feel ourselves at risk. So you know some years ago Cerner went into the European market. And as you are aware of, they have been retreating. Other giants have been in the hospital segment playing like, for instance, SAP. And now this time, Epic is rumored to come to the market, let's see on how much traction they're really going to get. We feel we are well-situated with our excellent product offering. And I think the order intake in Hospital Future Act shows that our cooperation with the University Clinic in Hamburg has been one of the most renowned prestigious products in the market. So we feel well prepared to take them on.

[Martin Jungfleisch, analyst]

Okay. Sounds good. If I may add just one follow-up on the AIS on the eMD synergies. Could you share when we should expect the full level of the EBITDA synergies from the internalization of the [indiscernible] solution? Is this already happened in Q1? Or should we expect further, I guess, margin improvement in AIS in Q2, Q3 from that?

[Michael Rauch, executive]

Yes. So I would like to go back to the margin improvement, which we've seen now in Q1. And indeed, part of that margin improvement does come from the U.S. and from the integration benefits, which we've been realizing because as I was commenting, for instance, in Germany, we have been concentrating more on the Telematics Infrastructure. So -- but we've seen over the past couple of quarters already a nice margin improvement in AIS.So indeed, the synergistic effect, I can confirm are happening as we speak. And yes, I will never be satisfied. I always want a little bit more of EBITDA. So rest assured that we will want to see some more EBITDA from the integration coming going forward.

[Operator]

[Operator Instructions] Next question is from the line of Andreas Wolf with Warburg Research.

[Andreas Wolf, analyst]

The first one is on AI. Michael, could you speak about that topic and its impact on your products on the one hand and room to improve efficiency in R&D on the other hand? And then on the Hospital Future Act, do you believe that hospitals will be able to utilize the full available amount for the investments or what is the current view on the proceedings here? Obviously, on the process here, obviously, the hospitals have capacity constraints in utilizing the available funds

[Michael Rauch, executive]

Yes, I'll start with the later question, with the second one on the HIS side. Well, yes, following the news, one sees that protests go out on the street, there's some discussion going on regarding the well-being of hospitals in general. So far, we have not seen any cancellations of any orders. So within our camp, we feel very confident that we will turn these orders into revenue going forward. But we don't know how the whole market is going to turn out and what does it do to competition.On the first question regarding artificial intelligence, as a software development company, creating the future of eHealth here, this is core for us. So meaning, now people talk about ChatGPT. Rest assured that our developers are already 2 steps ahead and are working on programs, what else we can do and build into our portfolio in order to make our customers even more happier with our software solutions so that they can really focus on the treatment of the patients.We will speak about our portfolio, as I said, when we have the Capital Markets Day on the 7th of September. So please sign up early.

[Operator]

Next question is from the line of Wolfgang Specht with Berenberg.

[Wolfgang Specht, analyst]

Three quick ones from my side. First one on AIS. You mentioned customer wins in France, Denmark and Norway. And can we assume that the customer number in Germany is rather stable? And then on HIS, when do you expect the first migrations from SAP and Cerner ending their support to happen? Will it already be next year? Or is there, let's say, a longer time line?And finally, on CHS, now that half of Q2 is already over, can we assume that part of the invoicing for software upgrades will also move into Q3 and Q4? Or do you still expect the majority to happen in the second quarter already?

[Michael Rauch, executive]

So thank you, Wolfgang. I assume with the last question, you were referring to the PTV 5 upgrade. So the PTV 5 upgrade will be realized in full revenue in second quarter. I was only talking earlier about the cash flow impact. So that might go a little bit into Q3, depending on how fast basically we get paid.Your second question was on the HIS side. And this most likely will depend also as I can obviously not comment on competition, but probably on the contractual situation because you ask when can we expect Cerner to retire service for some of the earlier customers and when are other players like us, for instance, taking over. So this typically is a pie contract impact. So one cannot say that they basically stopped at a certain moment in time.But we are there. We are ready and we are taking over and we are gaining also projects and we are winning also customers. And that brings me to your first question. And maybe that was a little bit misled by myself when I was commenting regarding the customer wins, we, of course, have customer wins also in Germany, I was referring and starting first to the German market. And then I wanted to say that in addition, also in France, Denmark in other jurisdictions, we are winning customers.

[Operator]

Next question is from the line of Yannik Siering with Stifel.

[Yannik Siering, analyst]

I just have one question left. And that would be on the discussions you mentioned that are ongoing on the next-generation connector. And maybe you could also provide some color on how TI could become more of a recurring business in the midterm, let's say.

[Michael Rauch, executive]

Yes. Thank you, Yannik. Difficult to say. All players in the market are talking also to the executive bodies, to the politicians. You might have seen there was recently an interview portrait in the German newspapers about -- from [ Gimatic ] from [ Mr. Harker ] saying that potentially the software connector could move into 2027. Honestly, at this moment in time, I would call that speculation. So everybody is up and running and is preparing. So we want to see the software connector coming.But for the time being, we focus on making sure that we see existing Telematics Infrastructure, all of our customers are happy and are getting best services provided, plus we also offer the high speed connectors and also TI as a service.

[Claudia Thomé, executive]

So thank you. Since we don't have any further questions, thanks to all of you for dialing in today and for asking many questions and for the vivid discussion. As always, Investor Relations is available on the phone or by e-mail for further questions. So Frederic and I are ready, please don't hesitate to contact us. With that, thank you, everyone, once again, and have a great day.

[Operator]

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