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Synlab AG
Earnings Call Analysis
Q1-2024 Analysis
Synlab AG
In the first quarter of 2024, SYNLAB generated reported revenues of EUR 682 million, which reflects a slight decline of 3% compared to the same period last year. However, adjusting for disposals, the pro forma revenue shows a modest growth of 1%. This growth comes largely from an organic increase of 3.9%, excluding COVID-related revenues, which saw a drastic drop. The company's ability to rebound from the impacts of COVID-19 testing is commendable, and they have managed to fully compensate for the declines owing to improved organic growth in its core operations.
SYNLAB experienced an adjusted EBITDA of EUR 123 million, marking a year-over-year increase from EUR 119 million. This improvement demonstrates a healthy increase in profitability, primarily driven by organic growth, cost management, and strategic pricing initiatives. The company's EBITDA margin for Q1 2024 reached 18%, comfortably within its annual guidance range of 17% to 18%. This is an encouraging sign of the company’s operational efficiency.
Looking at regional dynamics, Germany showed noteworthy performance, contributing EUR 141.7 million in revenue and returning positive operating profit margins for the first time. Conversely, France, which constitutes about 20% of SYNLAB's total revenue, faced challenges due to price decreases. Here, revenues amounted to EUR 135.2 million despite a volume increase of nearly 4%, suggesting that operational efficiency plans are critical to regain competitiveness in this market.
The SALIX program, aimed at enhancing operational efficiency, yielded EUR 8 million in savings in Q1. The program is a part of SYNLAB's ongoing focus to improve productivity through various initiatives, including optimizing logistics and operational frameworks. This strategic move is expected to mitigate operational challenges and support long-term growth objectives.
The company's unlevered free cash flow stood at EUR 45 million, indicating a solid cash conversion rate of 37%. While the cash conversion is below their long-term goal of 40%-45%, underlying mechanisms to improve cash flow are underway. The company maintains a healthy balance sheet with EUR 260 million in cash and a net debt reduction of EUR 55 million. This financial stability is critical as SYNLAB navigates ongoing operational and market adjustments.
For the full year, SYNLAB reaffirms its guidance of approximately EUR 2.7 billion in revenues, along with an expected EBITDA margin of 17% to 18%. These projections signal confidence in the company's strategic initiatives and operational focus, especially in light of ongoing portfolio management efforts aimed at enhancing long-term performance.
While there are positive signs, SYNLAB must contend with potential risks, such as the implications of the latest cyberattack on its operations in Italy and the ongoing competition investigation in France. These events could pose challenges to financial forecasts and operational efficiency if not managed effectively. The company's proactive measures to improve IT security and streamline processes will be essential in mitigating these risks.
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Hello, and welcome to the SYNLAB Q1 2024 Financial Results Call. [Operator Instructions] Please note this call is being recorded. Today, I'm pleased to present Mathieu Floreani, CEO of SYNLAB Group. Please begin your meeting.
Thank you. Good morning, good afternoon, ladies and gentlemen, and welcome to our Q1 2024 presentation call. So as usual, I will begin with the highlights of this quarter, then Sami will provide you with a deeper dive into the financials, and then I will conclude with the key aspects of our business segments and the outlook for the year. And after our presentation, we will open the floor for your questions. Now just in summary, we had a very strong first quarter in direct continuation of the steady progress we observed in the past few quarters.
This is a translation into performance metrics of the execution of our right strategic priorities. A strong underlying organic growth, together with continuous productivity delivery and cash flow generation, accelerated by our portfolio management focus and the densification of our operations.
Now let's start with our highlights of the quarter on Slide 5. So Q1 reflects strong financial performance of the group. This is in line with our 2024 guidance and still in a moving and challenging context for our industry. Our first quarter performance was supported by a solid organic growth at 5.2% adjusted from working day effect, which, together with our efforts on productivity management, led the EBITDA margin to improve to 18% in the high range of our guidance.
Unlevered free cash flow at $45 million is very strong for a quarter, which is historically not a key one for SYNLAB in terms of cash generation. Our many cash maximization work streams have already started to pay off, and we are pleased with this good progress.
Our portfolio management strategy launched and executed already last year is actively ongoing this quarter with a clear goal to improve performance overall. And as a reminder, but I'm sure you all have it in mind now, the portfolio management consists in reviewing our portfolio of activity, also within each country, terminating, for example, unfavorable customer relationships.
Now let's go to Slide 6, which is the key highlights in commutation of our strategy. So with the four usual quadrants, as mentioned, strong organic growth this quarter, again driven by overachieving our For You initiatives and good supportive volume development. Our focus on the customer experience in retail keeps on paying off with an NPS at 88%.
SALIX, our efficiency program well started the year with EUR 8 million savings delivery, supported by deep improvements in many operational fields, whether in logistics, lean methodology, procurement or IT harmonization. Also to highlight that our new London base Synnovis hub is operating since early April. We have completed one bolt-on acquisition in Czech Republic this quarter as the current main focus for this SYNLAB strategic team is on the elaboration of our Strategy 2.0 roadmap, which will be completed and presented in Q4 2024.
And on the medical side, we can report the launch of our new myEDIT-B test in France, a promising tests, which aims at detecting people bipolar disorders. So let me now hand over to Sami to cover the financials of the presentation today.
Thank you, Mathieu. Good afternoon, everyone. I'm very pleased to walk you through the Q1 2024 financial performance of the SYNLAB Group. Let's start with the revenue on Page 8. Q1 2024 reported revenue stands at EUR 682 million, down 3% compared to Q1 2023. The Q1 2024 pro forma revenue stands also at EUR 682 million, up 1% compared to Q1 2023 pro forma.
The reduced activity in Q1 '23 pro forma is explained by the 2023 disposals. The group is growing again, and the negative impact of COVID-19 ramp-down is fully compensated by the organic growth. For usual drivers to explain the 1% year-over-year growth. As mentioned, the EUR 22 million of revenue reduction from COVID-19 testing and the Q1 '24 COVID-19 organic revenue stands at EUR 3 million, rounded we have EUR 1 million per month. EUR 26 million of underlying organic growth, 3.9% organic growth, excluding COVID. Price is up 0.7%, reflecting the positive effect of price increases in many countries of North and East and South segments, but also in Germany.
And excluding France, prices are up 2.4%. The volume is up 3.2% only impacted by the unfavorable working day effect, Easter break in March '24 versus April '23. The volume is up 4.4% and the underlying organic growth is up 5.2%, excluding working days effect. Overall, flat FX impacting Q1 EUR 1 million revenue, primarily from the GBP and the Colombian peso currencies.
We have rounded to 0 contribution from 2024 M&A. We had one small bolt-on acquisition in the Czech Republic. Let's move to next page, the EBITDA performance. The Q1 '24 reported adjusted EBITDA stands at EUR 123 million versus EUR 119 million in Q1 2023. It's up EUR 4 million for the first time since 2 years. The EBITDA growth is primarily driven organically, EUR 5 million organic EBITDA growth, EUR 5 million price increase rounded EUR 9 million inflation, 1.7% inflation overall.
We have a 1% deflation on OpEx, lower energy prices, and we have inflation on tax at 3.6%. We have, again, limited inflation on METEX 1.5%. Our reagent costs are, for the most part, fixed with multiyear contracts. An overall reduction of inflation in total, as expected, it was 3.8% in Q1 2023. It's nearly half, is a drop of half 50%. SALIX performance is strong at EUR 8 million. SALIX again, is our initiative-driven program to improve our productivity. And the Q1 EBITDA margin of the group stands at 18% at the high point of the 17%, 18% full year guidance.
We had a strong start of the year. Next page, P&L overall, with a bridge from EBITDA to net profit and from reported to adjusted financials. EBITDA first, we have a nominal adjustment of EUR 0.2 million acquisition-related costs only. The adjusted operating profit is at EUR 64.8 million. The adjusted operating profit excludes EUR 10.7 million of customer list amortization.
The net finance cost reduction reflects higher interest costs offset by gains from financial instruments revaluation. Income tax is lower than last year, normalized adjusted effective tax rate is down at 27%, in line with the normalized tax rate regularly communicated.
The Q1 2024 adjusted net profit stands at EUR 33 million. Adjusted EPS is $0.15 a share. Moving to cash flow. The Q1 '24, as mentioned by Mathieu, the unlevered free cash flow stands at EUR 45 million, a strong performance with a 37% cash conversion despite a high DSO on receivables impacting the working capital performance. DSO is at 64 days, up one day compared to Q1 2023. The normalization of the working capital is progressing post COVID-19, even though it's not yet fully completed.
The net CapEx, including leases, is reducing by EUR 4 million year-over-year despite EUR 7 million leases increases mainly due to inflation on rents. The net CapEx, including leases represent 9.4% of revenue. We have launched an initiative across the group to increase the focus on cash in 2024, including lean projects to streamline processes, but also to mobilize the team on the cash maximization. Benefits are already visible. We also have a strong month of April. Net interest is lower in Q1 2024 compared to Q1 2023 despite mostly lower debt and despite increase of interest. The average cost of borrowing is at 4% at the end of Q1.
Balance sheet, the balance sheet of the group on Page 12. At the end of March, we have limited changes compared to December. The group has a strong balance sheet with rounded EUR 260 million cash on hand and $500 million of undrawn RCF. The net debt of the group has reduced by EUR 55 million. The term loan A debt was canceled in April 2024 and fully reimbursed following the implementation of a new loan of EUR 535 million with a related party Ephios Subco 3.
Next page, the debt, the net debt view. The adjusted net debt is at EUR 1,249 billion. At the end of March, it reduces by EUR 54 million from strong unlevered free cash flow, lease reduction and limited M&A. The covenant EBITDA stands at EUR 454 million and the covenant leverage ratio, debt-to-EBITDA for our banking documentation stands at 2.75x, down 15 basis points compared to year-end 2023. This concludes the financial section of the presentation, and I will now hand it back to Mathieu for the business review.
Thank you, Sami. So indeed, let's now dive into our main geographies, and we start with the overview of our business in France, which is 20% of the group revenue. So we reached in France, EUR 135.2 million for the first quarter and an AOP of EUR 14.2 million. AOP margin came in at 10.5%. Despite a strong volume increase of close to 4%, we have not offset the price decrease, which became effective mid-January this year. We are conducting an important operational efficiency plan in France, which will result in the use of a unique laboratory information system, enhancing gains of time across the country.
We go to Slide 16, Germany, 21% of the group revenue. So a strong quarter for our operations in Germany with significant improvements of all metrics, supported by solid volume growth and gain of market share. Revenues stand at EUR 141.7 million and AOP and AOP margin, both turned positive versus last year first quarter, respectively, at EUR 4.2 million and 3%.
Our portfolio review to improve performance throughout the business is actively ongoing, and some actions are in progress and some are already paying off. The regulatory environment will remain stable in 2024 and EBM reform has been announced for 2025. There will be more to come on this in the future. On Slide 17, South, which is 29% of the group revenue. So in our South segment, quarterly revenues were at EUR 198.5 million. AOP at EUR 21.4 million, resulting in an AOP margin of 10.8%. So the AOP margin improved, supported by a solid price increase across countries, even though the revenue is penalized with a one-off in Italy.
Also in Italy, we have been under cyberattack in April. And as we speak, we can confirm operations are very close to being back to normal. We're in a postmortem analysis to deploy all necessary additional security measures to counter such attacks in the future.
On Slide 18, North and East, which is 30% of our revenue. Again, a solid quarter for our activities in North and East with quarterly revenues at EUR 207 million supported by strong volume and price increases across the whole region. The AOP came in at EUR 25 million with a margin of 12.1%. Profitability keeps on increasing, driven by positive price above the inflation and operating efficiency measures. As mentioned earlier, our new state of the art hub in the U.K. is now operational, and we will continue the ramp-up this year until end of the year.
Slide 19, the outlook. So I will conclude the presentation of today with this 2024 outlook. So we have had a vigorous first quarter, confirming the strategic and operational orientations we have prioritized and based on this, we are affirming the previously given 2024 guidance. Revenues approximately at EUR 2.7 billion and EBITDA margin ranging from 17% to 18%. So before we start the Q&A, one word on our recent shareholding structure change to let you know that our long-time partner shareholder Cinven has completed its shares purchased on April 18, 2024 and now holds approximately 85% of the SYNLAB capital. The rest of the capital remains on the stock exchange.
We are very pleased to keep on partnering with our reference shareholders Cinven, to keep on growing SYNLAB in the coming years.
And with this, I would like to hand back to the operator to open the line for Q&A.
[Operator Instructions] The first question comes from the line of [indiscernible] from Anchorage Capital.
Just a quick question on the French business. It looks like in 2022, in 2023 and so far in '24 you've almost grown below market and certainly below some of the results that some of your peers are posting. Would it be fair to say that you're losing share in France? Or is there another explanation behind .
Yes, thank you for your question. You know you have to be very careful with overall country numbers because the dynamics for each region in France are very different. We are tracking this by region, and we can confidently say that we are not losing market share. I would say, to the country in some regions, gaining market share. So that's the situation for the different regions in the country.
The next question comes from the line of Laura Homsy from MFS.
In your press release, you mentioned that you received a loan from sort of Ephios Subco, the new Holdco company from Finland that owns the 85% of the share capital, I believe, for EUR 535 million and that you repaid the Terminal A facility. Is that the TLB 4 that was previously mentioned. I believe the outstanding was EUR 385 million. So what were the remaining proceeds used for?
Yes. The term loan B for the EUR 385 million at Bondco level is still in place and remain in place.
So there is no plan to repay that for now because I believe originally, you mentioned at the time of the bond road show that if only 85% share capital will be owned that you would repay the EUR 385 million TLB 4?
Yes. We're still -- I mean, the -- this is at the end of the process, I would say, I mean, the final view of the endpoint of this transaction is still not completed. I would say. The timing of its implementation is unclear and it's Cinven to respond. But today, if we will remain in this situation, at one point, we'll have to refinance the EUR 385 million because it has until 2027, and we may refinance it earlier.
But for the time being, we still have the 385 on our balance sheet.
So this was a different term loan basically understood.
The next question comes from the line of Keval Dattani from Permira Credit.
Mathieu, Sami, few for me. Just quickly on the kind of French CMA investigation. Is there anything that you can share in terms of kind of developments or updates or specifically what that investigation is about?
No, I think it's -- we are very early in the process. And at this point, we don't comment.
Can you confirm if it's kind of related to activities that were pre-pandemic. I guess I've seen numerous rumors but not heard anything confirmed.
Yes. I can confirm.
Okay. Understood. And then just kind of switching to cyberattack in Italy. So you guys kind of said that operations are largely back to normal now, is any kind of estimate for the revenue impact at cyberattack had? And I guess, was there any cash out to get systems back online?
Today, it's very difficult because this is a very recent activity here since 18th of April. There has been a stop of the activity for a number of days. So there is -- certainly, during those days, a loss of revenue, no doubt. But at the end of the day, when we look at it, there has still been some medical centers operating manually, some x-rays being performed that doesn't require any system, IT system. And so all this has done and the billing will is restarting now.
On the other side, there is also a number of centers in Italy that are regulated with a yearly budget. That means that if there is lack of activity during 15 days, it doesn't mean that they will meet their full year targets in terms of full year budget. Not internal, the budget vis-a-vis the regulator, the NHS, and usually, we see a variation of activity between sites. But at the end, the most important thing is to hit the full year number.
So all in all, there will probably be a small impact on the financials in Italy, but it will not be material. That's our current assessment.
Got it. And just to check on the cash out the kind of cash out .
The cash out, I mean, the good news is that at the end of April, we have been able to, from the central here, even connect to all the banks in Italy, and they have -- they are on their budget. So that means that there has been no impact in April from this attack.
Understood. And the last one is kind of just on the shareholding structure, maybe to follow on from the question before. When I guess the kind of term and Cinven take private transaction happened, it was suggested that TLB would be repaid, I guess, if we're in this kind of high 80% ownership structure, so what are the kind of next steps in terms of ownership from Cinven to either maybe squeeze out the remaining 14% if that's at all possible or to deal with the kind of term loan.
Today, similarly to the prior question, the exact timing is not known by the management. So we cannot comment on this. It's Cinven to comment, that's the current view. So in the meantime, the EUR 385 million will remain in place. But in that scenario, where it will remain definitely at 85%. At one point, we should probably refinance this EUR 385 million. And if we have -- and if we squeeze out completely, we will maintain this 385 until it's ended.
[Operator Instructions] The next question comes from the line of [indiscernible] Asset Management.
A couple of questions. First, following up on the [ B4 ]. So you raised EUR 1.45 billion from the market. So you have excess cash currently on the balance sheet. When you, Sami when you mentioned at some point, we will have to refi the [ B4 ] should there be no squeeze out of minorities.
I don't understand the concept of refinancing should be repaid that refinance from the excess cash on balance sheet. If cash is not used for to buy our priorities, if you can confirm. And if you can't confirm will be possible to have seen that on the call.
This is a [indiscernible]. We are still a listed company. And when you say we have drawn one -- more than EUR 1,450 debt. It's not a SYNLAB AG. Ephios Subco which is outside the SYNLAB AG Group. So this is where the confusion comes from. Today, we have called as for the listed company, SYNLAB AG and Cinven cannot join this call. Now the term loan B has a maturity and my understanding, but I don't have confirmation is that the cash that has been drawn is still on the balance sheet of Ephios Subco 3 for the time being. And the purpose of this, it's either to complete the 15% or purchase of the shares or at one point in the future to reimburse the 385, but this is still in progress. There is no finite date again.
Okay. Fair enough. And then for just on France, two questions, if I may. I understand the concept that per region, the dynamics might be different. You reported close to 4% volume growth in France, maybe on the -- taking into account working days, you might be slightly higher. But still when you compare that with the [ cell ] player in France, which year-to-date at least as of February has reported more than 7% volume growth. Our new current perimeter, the one growing as fast as a player, which is larger than you. So coming back to the initial question about your overall, I would say, market share on your current footprint.
Whether you are slightly declining or not in that respect. And on the price decrease, obviously, Q1, you have a double effect of the index decrease from the first, the 15th of January this year, I think it's 3.8% plus last year at, which that happened from 1st of Jan. From Q2 onwards, obviously, the price decrease should ease. Could you confirm whether the B index, the decrease is only for the first 6 months? Or do you have any visibility what will happen for the second half in that respect?
So just on the first point, I'm not aware of any competitor that would have published any number for Q1 and I stand by what I was mentioning earlier, if you look at it by region, we're not losing market share. We are growing at or above market, which is what we have been doing for the last many years, usually, we're about 1% to 2% above market in our growth. And now on the price, do you want to answer Sami.
No, no information on this. The price cut was set early January on the 15th of January, with $0.01 lower on the value. And this was planned for the year. We were not in -- we don't have any information, let's say, that there will be price changes, more price season this year.
Okay. I thought it was only for the first 6 months. Okay.
The price changes during the year, it's not a specific question on France, but it has -- we didn't mention it for Italy. There was in our prior call a lot of discussion on the price changes in Italy that was disclosed by our competitors. And at the end of the day, there is no price change for the full year, as we mentioned in prior calls in 2024. So we have to be careful on that.
And actually, a quick follow-up on France, on the reported stability measurements, our margin dropped 2.5% Yes. In France is that [ contrary ] due to the price decrease? Or have there been any delays in terms of potential cost efficiency measure in France?
No, I think the price last year at 13% was strengthened by the still strong COVID in Q1 2023. And this was helping last year margin. While here, this year, you don't have the margin, but you have the price reduction that has a key impact.
[Operator Instructions] The next question comes from the line of [indiscernible].
Yes, I've got a couple of questions. notably with regard to the free float. Do you have any information as to the largest investors on the free float currently.
Today, we have around 5% from Elliott management, which has been disclosed to the market because it's above 5%. But below that, there is no information publicly available.
Does that mean that you have not run any investigation to collect more information.
Not public information. Will not disclose nonpublic information.
Okay. I got the second question with regard to the next dividend. Do you have any information as to what dividend will be proposed at the forthcoming AGM.
This has been already published, I think, and there will be no dividend proposed for the upcoming AGM on the 17th of May.
Okay. And my last question regards the shares owned by the management team. Is this correct? Or am I wrong to -- is it correct that you and your colleagues and management team have showed the entirety of your shares lately?
Yes, this was part of the investment agreement that was signed in October as part of the Cinven offer and which has been unwinded on the 18th of April.
So meaning that currently, you do not own one single share anymore. Is that correct?
In the free float, yes, we don't have today any shares in the free floot.
The next question comes from the line of [indiscernible] from ODDO.
I've got one regarding the Terminal A, which was canceled and entered into again with for Subco 3. What are the terms of the loan? And where is this loan on your balance sheet?
The loan is at SYNLAB AG level. And the term of the loan are market practice, which is I'm not sure whether I have -- I need to check whether I have the right to communicate this information or has been made as confidential, so I cannot -- I'm looking for confirmation. I think it's confidential, so will not be able to give it to you, but it's market.
[Operator Instructions] The next question comes from the line of [indiscernible] from Bank Capital.
Just to confirm that I didn't miss it, what is the revenue and EBITDA contribution of Italy in '23.
We don't usually communicate numbers at country level because these are competitive sensitive information. So...
Okay. Is it fair to assume that it's above 10% or?
Is that Italy is our #3 country in terms of revenue. That's probably one information that we can communicate.
Okay. And then can you give us an update on the French competition investigation?
As I mentioned earlier, I think that was the first question or a second. We are in a process where we don't communicate at this point, and this is a long process.
We have a follow-up question from the line of [indiscernible].
Yes, please. You mentioned during the call that you've set up sort of task force internally in order to optimize your CapEx for this year. Can you elaborate a little more on that? Is that likely to start generating a material decrease this year? Or is that more an effort to start paying off in '24?
No, no, no, you're right, but it's not limited to CapEx. It's a whole initiative on cash maximization for the year. So we are mobilizing the team. Usually, we people focus on revenue and EBITDA. And here, we really are mobilizing the team on the cash to maximize the cash for this year and get the whole tailwind on the working capital result. So we expect to see benefits this year, yes.
I mean okay. And with regard to the working capital level, the DSO that you just announced at 64 days, is that likely to improve during the rest of the year? Or...
Yes, yes, yes, it will improve. And this just I can only reconfirm, I mean, the cash generation models that we have and 64, it's still impacted by a lot of COVID-related receivables in some of the Latin countries, but it's public debt, usually, and so there is limited risk, but it takes time to get it paid. And our objective is to reduce the DSO of the group in the future below 50 days, and this is an ambition that is not achievable because in many of our country today, we are already below 30 days.
Okay. So with regard to the DSO per se, is that likely to reduce, say, to around 60 days this year or...
Not this year. I didn't communicate the target for this year, but it will definitely use from the 60, the level at the end of Q1.
The next question comes from the line of [indiscernible] from Deutsche Bank.
The question seems to have been withdrawn. [Operator Instructions]. There is a question from the line of [indiscernible] from Deutsche Bank.
Just a very -- very simple questions. First of all, on the M&A target of EUR 50 million to EUR 100 million. Can you give us a color about what kind of multiples you're looking for and also about the geographies where you're trying to expand to?
Yes. So basically, we have said that our priority is around densification of our operations, which has different ways to get there. And of course, the bolt-on M&A is one. That is the answer on the geographies. And the multiples, of course, there is no one general rule, but we would probably -- on average, we can say at least two turns below prior metrics. So that's probably in the range of 6, 7x-ish EBITDA?
It will be lower than what it used to be in the past. And this is probably the items because we need to ensure that the seller understands the new norm in terms of multiples. So that's probably the one item that could make a variation on the amount of acquisitions we do this year. Because we will not achieve the position we're targeting if they're not at the right price. We will be very selective on the level of price we pay.
The market is there to be consolidated, so that, that situation doesn't change. So patients and selectivities are the key words here.
Got it. I don't know if you have mentioned that before. Can you give us a sense about the CapEx guidance you have? And maybe more generally, since you're giving a margin guidance, but not a unlevered free cash flow guidance. Can you give us maybe some color there as well.
Yes. I mean the -- on the CapEx, we know we are at a high level CapEx, but it's explained by the number of key projects that are ongoing, whether the France lease IT implementation in France, is the U.K. SCL. These are key projects here for the long term. So -- and they have a short-term impact on our CapEx.
Now on the unlevered free cash flow, we have never communicated a target, but we -- for a specific year because there is always timing on cash. But overall, the cash conversions to EBITDA of the unlevered free cash flow on the long term should be around 40%, 45%. And here, we are at 37%, and we were much lower last year because we had a relatively low end level free cash flow last year. But 2024 will be a strong year again. That's the key message.
So are you guys going to hit the 40%, 45% this year? Or is that more a long term, i.e. next year or the year after.
I would hold the answer. I mean we will -- we will focus the effort not on guessing what we'll achieve, but maximizing the cash for 2024. I have a lot of projects ongoing with these initiatives that we have across the countries. I have more than, I think, 60 projects. So a lot of work, and we will hopefully surprise. But for the time being, we don't communicate.
The next question comes from the line of [indiscernible].
Just one question on the cyberattack in Italy. I just wanted to understand how would that possible? And have you taken any mitigants to make sure that it is not happening again in Italy or in any other country.
Yes. Sure. I mean, we are still -- at this point, our focus is really to restore full operations. And so we are in launching the forensics to understand all the details. So I hold my answer on your first question at this point, but we constantly improve our security measures.
And these measures and processes also to respond are absolutely key to mitigate the first the attacks, but then also their impact. So our process is to mitigate the attack in Italy have reduced the impact on patient and health care systems. So they have operated after the happening of the attack properly.
And then we are investigating, as I mentioned, also with the relevant authorities to understand in details the incident. And we'll continue to learn the lessons and to make it ever better as we have embarked many years ago on this journey. But as you know, it's a very complex undertaking to be, say, very safe. It's very complicated.
If they managed to crack the Pentagon, you can imagine that private companies or public companies have a big task to do to resist any of these attacks.
There are currently no further questions. At this point, I hand the conference back to your speakers.
All right. Well, thank you very much for your attention and your questions. The calendar on our side, as a reminder, we have our AGM the 17th of May next Friday -- on Friday next week, rather, and then we will publish Q2 and H1 results on the 9TH of August and Q3 the 7TH of November. So with that, I wish you a good rest of the day and talk to you next time.
Thank you. This now concludes our presentation. Thank you all for attending. You may now disconnect.