Elringklinger AG

XETRA:ZIL2

Earnings Call Transcript 2021-Q1

[Stefan Wolf, Chairman of the Management Board & CEO]

Thank you very much. Ladies and gentlemen, very warm welcome to our conference call today regarding the first quarter figures of the first quarter 2021. As the conference call of several companies have overlapped today, we moved this conference call up an hour just for your convenience. As always, I will start with some headlines of the first 3 months. And after that, my colleague, Thomas Jessulat, our CFO, will discuss financial figures on the first quarter. I will then close with the outlook on the current year. At the end, of course, you have the opportunity to ask questions as always, and we are more than pleased to take your questions then. Well, with regard to the financial figures of the first quarter 2021, part of them have already been published along with the ad hoc announcement in April, and we also had a conference call that day. In Q1 2021, sales increased by 7% to EUR 424 million due to the strong demand that we saw here at the ElringKlinger Group. If exchange rates had remained unchanged, group revenues would have been up by 10.7%. Due to the strong sales development, efficiency gains and the sale of our Austrian subsidiary, EBIT increased by more than EUR 30 million to EUR 48.4 million year-on-year. This results in an EBIT margin of 11.4% compared to a margin of 4% 1 year ago. The operating free cash flow increased to EUR 28.6 million from a level of minus EUR 2.2 million in previous year's first quarter. By the way, this does not include the sale of our Austrian subsidiary as well as the payment received by Plastic Omnium with regards to the agreement on our new joint venture company, EKPO Fuel Cell Technologies. We further continued to optimize our net working capital to a level of EUR 430 million. We managed to reduce net financial debt to EUR 400 million, which means that the net debt to EBITDA ratio decreased to 1.9 compared to last year's figures of 3.1. As part of our agreement with Plastic Omnium that we signed last year in October, we have started the business activities of EKPO Fuel Cell Technologies for harnessing the market potential. We have very strong ambitions. We target for revenues of EUR 700 million to EUR 1 billion and a market share of 10% to 15% by 2030. In the context of this agreement, we also executed the disposal of our Austrian subsidiary to Plastic Omnium and realized a gain of EUR 10.9 million. In the past months, you might have noted some news of ElringKlinger on the battery business, which underline our competencies in this area. First of all, in March, we announced a major order for cell contacting systems by a global battery manufacturer. Our cell contacting systems, which will be included in a series platform of a German premium car manufacturer. This large-scale order totals volume in the mid-triple-digit million euro range over a term of approximately 9 years. We will start the production for this order in the first half of 2022. This brings me to the next news. We will ramp up this order at our new site in Neuffen, which is really close to our headquarter here in Dettingen. We have established this location on January 1, 2021, and will bundle our activities in battery technology there. Another news actually is part of the second quarter as the corresponding event took place only 10 days ago. We received a so-called IPCEI funding by the Federal Ministry of Economic Affairs and Energy as well as by the Ministry of Economic Affairs of the state of Baden-Württemberg for our innovative battery cell house design. The total funding volume amounts to EUR 33.8 million, and this will be paid in the years to come until the end of 2026. Applying core skills, we are able to produce cell lid with less components, require less materials and thus shrink the carbon footprint by about 40%. This is an important contribution on the global path towards climate neutrality. Well, ladies and gentlemen, so far from my side, and let me now hand over to my colleague, Mr. Jessulat, our CFO, and he's going to explain the figures of the first quarter 2021.

[Thomas Jessulat, CFO & Member of Management Board]

Yes. Thank you, Dr. Wolf. Also a warm welcome from my side. I would like to comment the financial results for the first quarter starting on Slide #5. The sustained demand for ElringKlinger's products around the globe is reflected in the group's strong position with regard to orders. At EUR 577 million, order intake was up EUR 222 million or 62.5% on the same period in the previous year. This also resulted in a surge in the group's order backlog by EUR 197 million or 19.9% to EUR 1.186 billion. The increase in revenue to EUR 424 million is mainly 2 reasons. First, we have seen a strong increase of around 38% in China and also grows by roughly 5% in Europe. And second, the segment's aftermarket at engineered plastics contributed increased sales compared to last year's first quarter. Foreign exchange effects reduced group sales by 3.6%, and this was primarily due to a direction taken by the U.S. dollar but also the Brazilian real, the Mexican peso as well as the Turkish lira. No revenue from acquired or divested companies was accounted for in the reporting period. And all in all, we saw an organic increase in sales of 10.7%. On Slide #6, you see the sales split by region in more detail. In Asia-Pacific, we noticed a strong increase in revenue. While sales in Europe increased by 6.2% on a foreign exchange adjusted basis, group revenue in North America only slightly increased by 0.6% and even went down on a reported basis due to the development of the U.S. dollar. When comparing our sales figures with the markets, we're able to outperform light vehicle production in both Europe and North America, which by the way, represent the 2 strongest sales regions of ElringKlinger. While our geographical sales footprint in Germany and the rest of Europe are almost identical to previous year's period, North America has a share of 24% of the group's revenue compared to 27% in the previous year. The Asia-Pacific region now represents 19% of group revenue compared to 15% in the previous year's period. With regard to our segments and business divisions on Slide #7, we see that Original Equipment segment is on track. ElringKlinger generated sales revenues of EUR 334 million in the segment. Revenue growth of EUR 21 million, or 6.8%, was attributable primarily to the lightweighting Elastomer technology business unit, which saw a disproportionately large increase of around 18%. At around 7% increase in revenue related to the Metal Sealing Systems & Drivetrain Components business unit was roughly in line with the group average, while revenues and the shielding technology business unit declined in the period under review. The E-Mobility business, which represented around 2% of group revenue, grew by a good 14.6% to EUR 7.3 million but is still relatively low phase. Slide #8 presents the earnings figures for the first quarter. EBIT reached a strong level of EUR 48.4 million, and the EBIT margin was at 11.4%. Let me outline the main drivers for this development. As part of the agreement with Plastic Omnium, we sold our Austrian subsidiary and received an earnings effective payment of EUR 10.9 million. But even when not including it, we achieved an EBIT margin of 8.8%. And in combination with a favorable product and regional mix, the strong capacity utilization on a relatively low-cost basis resulted in a good earnings contribution. We have to consider the high price level for raw materials. The effect in the first quarter was comparably low, but it could have a stronger impact in the upcoming quarters. Our extensive program to improve the efficiency levels had a further impact of EUR 4 million on the EBIT increase. To sum up the earnings situation, net finance income amounted to EUR 1 million in the quarter under review, an improvement of EUR 10.9 million compared to the same period of the previous year. A large part of this is due to the net result from currency translation not realized currency effects as the same quarter of the previous year had included significant net foreign exchange losses, especially for the Mexican peso. In total, the net result from currency translation was positive at EUR 4.7 million, while it stood at minus EUR 3.1 million in the first quarter of 2020. In addition, interest expenses decreased also thanks to significantly lower net debt. The loss from associates, which relates to the interest held in hofer AG improved by EUR 0.6 million to minus EUR 1.6 million. Income tax expenses increased by EUR 6.4 million to EUR 10.9 million in the first quarter of 2020, and therefore, net income attributable to the shareholders of ElringKlinger increased to EUR 37.9 million, coming from EUR 2 million in the first quarter of 2020. Accordingly, the earnings per share increased significantly, amounting to $0.60 after $0.03 in the first quarter of 2020. Let me now turn to Slide #9, showing the performance of our segments. The Aftermarket segment, again, developed strongly in the quarter just ended, recording an all-time quarterly high in terms of segment revenue, particularly Eastern Europe and North America saw a significant expansion in revenues, North Africa and Asia also made visible gains. In total, revenue generated by the Aftermarket segment in the first quarter of 2021, grew by EUR 3.1 million or 5.9% to a total EUR 55.4 million. Segment EBIT was again very high at EUR 11.9 million, and the EBIT margin of 21.5% was slightly above that seen in the 2020 financial year as a whole, which was 21.4%. The Engineered Plastics segment increased its revenue in the reporting quarter by EUR 4.2 million or 14.5% to EUR 33.1 million, which represents a disproportionately large increase in relation to group revenue. The segment was, therefore, able to make good use of its tailwind generated by a robust economy while also benefiting from the encouraging performance of the automotive sector as a whole. As regards to the segment's bottom-line performance, both revenue growth and the continuing commitment to strict cost management had a positive impact. EBIT increased significantly by EUR 3.7 million to EUR 7.2 million as a result of which the margin -- the EBIT margin improved markedly from 12.1% in the first quarter of 2020 to 21.8% in the period under review. Now we come to Slide #10. Net working capital increased due to more expensive business in the first quarter of 2021. It amounted to EUR 430 million, EUR 27 million higher than at the end of 2020, but lower than at the end of the same quarter a year ago, when it stood at EUR 453 million, even though sales levels were lower at that time. As planned, the ElringKlinger group has scaled back its investment activities over the past 2 years without neglecting projects of strategic importance. As a result, payments for property, plant and equipment in the first quarter of 2021 were low at EUR 11.6 million. They related to a number of investment projects from all plants worldwide and included expansion investments for new ramp-ups especially dedicated to new technologies. Against the backdrop of an encouraging business performance of the first 3 months of 2021, ElringKlinger was able to generate operating free cash flow of EUR 28.6 million. This figure does not include the payments associated with the sale of the Austrian subsidiary as well as a payment of EUR 30 million, which ElringKlinger received from the EKPO agreement with Plastic Omnium. As of March 31, 2021, ElringKlinger had equity now of EUR 950 million, which corresponds to an equity ratio of 45%. The increase of EUR 137 million within the first 3 months 2021 was due to the recognition of net income for the first quarter, differences from currency translations as well as the discounted investment of Plastic Omnium in EKPO Fuel Cell Technologies. Among others, due to the positive operating free cash flow, ElringKlinger was again able to scale back its net financial debt. Compared to the figure posted at the end of 2020, it was down by EUR 59 million to now EUR 400 million. Compared to the same quarter of the previous year, it was cut by as much as EUR 203 million. ElringKlinger, therefore, continued to pursue a steady reduction in debt as initiated in the first quarter of 2019. The net debt to EBITDA ratio improved to 1.9 as of March 31, 2021, down from 3.1 the year earlier and even 4.7, 2 years ago. Having said this, I now turn back to Dr. Wolf.

[Stefan Wolf, Chairman of the Management Board & CEO]

Thank you, Mr. Jessulat, for the explanation of the figures. Well, ladies and gentlemen, let me now draw your attention to the current year, where we are expecting market upswing compared to this really terrible corona year 2020, which comes in the light of various unstable surroundings. North America is expected to grow production numbers by 20% in 2021, while Europe is expected to grow by 12% and China is expected to grow by 5%. On a global basis, this leads us to an expected growth of global light vehicle production of around 12%. While we are positioned to capitalize on this favorable outlook, there are various factors that lie outside of our sphere of influence. The level of uncertainty for the rest of 2021 remains significant as general conditions continue to be very challenging and very difficult. While the pandemic is far from over, measures aimed to relaxing some restrictions are currently being discussed in conjunction with the rate of vaccination. In addition, bottlenecks in the supply of semiconductors are affecting the automotive sector really, really strongly. And may -- might lead to production cutbacks among manufacturers as -- and, of course, then consequently also among suppliers. Moreover, supply chains are still not consistently robust and commodity prices remain at a very high level or even increased month-over-month. In light of the aforementioned risk and opportunities, we refer to our ad hoc announcement on April 16, 2021, reflecting the successful first quarter of 2021, we have adjusted our earnings outlook for the full annual period. We now anticipate an EBIT margin of around 5% to 6%. Previously, we had 4% to 5% in relation to group revenue, which is expected to come in roughly in line with the change of global automobile production. All further explanations remain unchanged to the numbers we have provided in our full year analyst conference. Well, ladies and gentlemen, so far, my final remarks, and I thank you very much for your attention. And Mr. Jessulat and myself, of course, are more than happy now to take your questions and answer your questions.

[Operator]

[Operator Instructions] Our first question comes from Christoph Laskawi, Deutsche Bank.

[Christoph Laskawi, Research Analyst]

Christoph Laskawi from Deutsche Bank. Thank you for taking my question and also for moving the call up by 1 hour. That was really helpful. The first one would be on your exposure to a specific customer. We had Ford out last week announcing quite significant cuts to their budgeted production for Q2. Looking at your revenue exposure, I would assume that Ford does not account for more than 10% or other high single digit, if at all. If you could comment on that? And also, if you have received over the last 2 weeks from a couple of OEMs, rather short-notice cuts in their call-offs versus the previous budget?

[Stefan Wolf, Chairman of the Management Board & CEO]

Well, first of all, the Ford Group, which is a local group, is our biggest customer. It always was, and it still is. It amounts up to 9.6%, 9.7%. So it's slightly below 10% of total sales. Just to give you the information, when I started here ElringKlinger 25 years ago, Ford and GM had a total part of revenues of 60%. Ford was more than 30% 25 years ago. So we really grew remarkably with Ford, but we grew even more with other customers so that they now represent slightly below 10%, still the biggest customer but slightly below 10%. We are pretty strong in the U.S. with Ford Motor Company. We have also some business, of course, here in Europe, also in Turkey, where Ford is partnering with Otosan. So the influence of the closure, you probably referred to the closure of the 2 plants in Cologne and in São Luis. We will maybe see that a little bit, but it will not have a magnitude like you might expect it because we have a broadly based business with Ford also in South America and Brazil and all over the world. Your second question, yes, we see that OEMs changed their orders due to the shortage of semiconductors, but we're not only talking about the shortage of semiconductors, we always talk about some supply problems with regard to steel, aluminum, some other raw materials. A lot of the suppliers of raw materials, they got surprised by the strong demand that came up in the first quarter. So we will see that still some problems in supplying raw materials in the second quarter, and I expect it also for the third and the fourth quarter.

[Christoph Laskawi, Research Analyst]

The second question will be a bit on margin phasing. You had a quite good Q1, obviously, above -- also on an underlying basis of the target range. Should we expect as guided by OEMs as well that Q2 will see the biggest hit in terms of production closures, and that's also feeding through to your business so that we essentially move from the highest margin in Q1 potentially for the full year to the lowest margin in Q2 and a more stable environment in second half? Or would you see other developments in the phasing throughout the year?

[Thomas Jessulat, CFO & Member of Management Board]

Well, the dynamic -- our expectation should slow down to some extent. It's too early to say the latter part of the year is going to be okay because there is too much going on in the supply chains to really come to a right conclusion at this point in time but dynamics goes out a little bit. We will see that but from a cost structure, when we talk about the margin structure here, taking into account that the operating leverage comes from pretty clean execution utilization of existing capacities, it should have an impact, but it -- my expectation would be that it would not be just a very negative for ElringKlinger for Q2. That would be my estimation, but we have to say also that, in the supply chains, there is a lot of force majeure letters going around nowadays. And it's really hard to make estimations because you may face situations tomorrow that you have not seen coming around. So -- but that would be my estimation.

[Christoph Laskawi, Research Analyst]

On the bridge then, do you expect for the full year that the efficiency program is offsetting entirely the raw mat headwind? Or will the raw mat headwind increase in H2 more significantly, and then it might be on the net negative between the 2?

[Thomas Jessulat, CFO & Member of Management Board]

No. On the material costs, I think we'll see some more negative impact based on different parts of pricing structures of the raw materials that we buy. We will see also a continuation, of course, of some positive points. So far, my estimation would be the overall effect would be net positive for the year, coming out of the efficiency program, but it's an early estimation.

[Stefan Wolf, Chairman of the Management Board & CEO]

And one thing, if I may add this. Of course, we still have some cost savings that we did not expect in the way we still have them or we have them because nobody really expected that this pandemic situation is go on and is burdening us, all of us. Now, I would say, at least the first half year of 2021, it will still -- will have effects in the second half year of 2021. We still have a travel ban in the whole company group. So that, of course, saves travel cost, which we had expected that they occur at least to a certain extent in the first half year. For example, 2 days ago, on Monday, the big aftermarket fare in Frankfurt Automechanika was canceled for September. So that, of course, saves a lot of costs because we always have a big booth and a real, let's say, a big presentation of our aftermarket business there on this fair. So the costs that we have in our budget for 2021 for the Automechanika will not occur. So we will have cost effects in the rest of the year. But those are not sustainable cost effects because if in 2021, we will see an Automechanika in Frankfurt, which I hope is going to happen then because then we're back to normal. Then of course, we have to spend in September 2022 around about EUR 600,000 for this fair, for this appearance on this fair. So we will have some effects that are not sustainable based on the special situation in the pandemic.

[Christoph Laskawi, Research Analyst]

And my last question would be essentially on your joint venture with Plastic Omnium. Your partner has teased in the last earnings call or revenue call they had, that we should expect order intake for the JV essentially announcement in the coming weeks. Is there anything that you could shed light on already? Or any comment on that, that we probably are ahead of order intake at least when it come to [indiscernible] and the JV.

[Stefan Wolf, Chairman of the Management Board & CEO]

We're not in a position to do that today. And one thing you have to see that this business, be it fuel cell business or be it battery technology, is based on the, let's say, behavior of the customers, highly sensitive, highly sensitive. I'm in the automotive business now since 25 years. I have hardly seen so strict rules and regulations with regard to publishing factors because this is the future of our customers, and they are very much focused on those new propulsion systems. And that's why they are really, really sensitive with regard to confidentiality. So we probably will have much less possibilities to publish real good projects and real good orders and all that stuff, which was no problem with the [indiscernible] gasket or with special gas or whatever with our classical product portfolio. And I have a great understanding for that because they just want to keep their technology and also their strategy just confidential.

[Operator]

Our next question comes from Jürgen Pieper, Metzler.

[Jürgen Pieper, Senior Advisor]

I have 2 quick questions. The one is fairly simple. You had a great order intake in the first quarter. Is this huge battery components order, is it a part of this? Or do you -- or is it booked in the second quarter in the end? Or do you spread it over, let's say, 2, 3 quarters. And what kind of share of this order intake is -- would you define as new technology orders? And secondly, you mentioned your growth in E-Mobility, I think, was 15%. This is certainly good, but it's probably not what -- not the rate of increase of the E-Mobility market as such. So everybody is looking for growth rates of 50% plus the next couple of years. So when would this kind of growth start? Will it start with this order you mentioned, let's say, in 2022? Can we then expect this kind of booming scenario with growth rates of 50% plus, or maybe will it start a bit earlier?

[Thomas Jessulat, CFO & Member of Management Board]

Yes, the -- the sizable new project such as the battery project is not part of the order stock. Order stock is defined as releases from the customers. We see releases now on a low level because we are in a start-up phase in the U.K., in the new plant, where we build for a customer a new drivetrain system, and there step-by-step we see orders coming in from that. But the rest is not part of it because there are no operational releases if you want to say so. Growth E-Mobility goes in line with that in principle. There is a broad basis of projects going on, but it's all on a preproduction phase or, let's say, an early production phase, and the dynamics is going to be expected. This year also, maybe to a later part of the year where we see some more order stock and more sales being realized and then also in 2022 when the other projects kick in. But this is, so to say, our curve here in terms of cumulation of E-Mobility sales, and we are still in very early phase in regard to that. When we look into the split that we have seen here, this is reflected because, on the drivetrain basis for the first quarter, it's roughly EUR 2 million. What we have in sales here on a battery basis is roughly EUR 4 million. On a fuel cell basis, a low single-digit amount. And this is all showing activity, early activity, but the volumes are going to be coming a little bit later in '21 for some projects and then starting '22 for other projects.

[Stefan Wolf, Chairman of the Management Board & CEO]

And just one remark. We will never be on the same level as the increase, I assume you mean new registered pure E-Mobility cars, be it now in Germany or in Europe. Of course, this rate will always be different from the growth rate that we will have in our business unit or -- in E-Mobility or in EKPO Fuel Cell Technologies because it's not one-to-one related to the cars that are sold as pure electrical cars. And once all the projects that we have, for example, at EKPO Fuel Cell Technologies, the growth rate in this business will be much higher -- from my estimation, will be much higher than the growth rate of new registered e-mobility cars. There's just no reference in between those 2 numbers. They're just totally independent, the one from the other.

[Thomas Jessulat, CFO & Member of Management Board]

So also in addition to that, new orders, we have had it in the presentation beginning of the year 2019 to February 2021, this is not only E-Mobility, I have to say, but this is a number that we have published. Known ICE represents in this period 62% of new orders relative to 38% of ICE. So there is strong indication towards that. But as I mentioned before, we are early in the curve.

[Operator]

Our next question comes from Akshat Kacker, JPMorgan.

[Akshat Kacker, Analyst]

A few questions, please. The first one on the OE business in the first quarter. Can you discuss the key drivers behind the more than 5% adjusted margin, if I take out the roughly EUR 11 million gain on the sale of the Austrian subsidy on that business. I understand cost efficiencies, and you have been tackling production structures as well. But can you talk about different elements from a product mix point of view that help gross margin? And I will follow up with the rest after this.

[Thomas Jessulat, CFO & Member of Management Board]

Yes. The improvement here in the OE business essentially comes out of the larger group companies where we had trouble in the past. There is -- when we talk about our ratios that we watch closely in terms of what is special cost, what is personnel cost and material cost of sales, those ratios improve drastically based on the efforts that we have put in there in terms of improving the business and run the business efficiently. This is the key driver in regard to that and the group KPIs that we have improved here not due to those exclusively, but to a large extent, based on that. When you, for example, look at the tax rate now, on a cumulative basis, we have single-digit losses in the group and very much a normalized tax rate compared to previous periods. And this really is showing that the quality of the individual group companies is coming up, and that's the main driver here in the OE segment.

[Akshat Kacker, Analyst]

Yes. Okay. The second one is on EKPO. Is it possible to quantify the losses in the first quarter? And can you also remind us what are you building in as an estimate for 2021 and 2022, please?

[Thomas Jessulat, CFO & Member of Management Board]

Yes. Losses, single-digit area for the first quarter, low single digit. And we're going to be ending the year maybe at high single-digit, low double-digit losses in EKPO.

[Akshat Kacker, Analyst]

Understood. And I would appreciate a few comments on aftermarket and engineered plastics as well. Firstly, on aftermarket, we've obviously seen very strong growth in the last few quarters. Can you talk about some structural drivers here, for example, I have seen mention of market growing in North America very strongly. Can you just discuss Aftermarket growth opportunities? And also on Engineered Plastics, again, it was a very strong operating result. How sustainable is that going forward?

[Stefan Wolf, Chairman of the Management Board & CEO]

Well, Aftermarket business is pretty good on a worldwide basis. Of course, we have established a couple of years ago an aftermarket business in North America and also in China. Especially the Chinese aftermarket business is growing strongly very fast, but also North America is quite good. And our traditional markets where we have been strong since many, many years, is Eastern Europe, and that is running really well. And also the Middle East where we have a strong position, for example, Saudi Arabia is very strong. Turkey is pretty strong. So it's overall, but real growth comes from those 2 new markets. North America and China, where we have developed over the last couple of years, a program -- a North American program and a Chinese program. It's always a question of the programs. You have to look in the aftermarket what kind of engines are repaired in this market, what kind of engines are sold by the OEs, and then, of course, you have to adapt your program to those engines and buy parts that you combine with -- that we combine with our own parts and so-called gasket kits that are sold to wholesalers, and they sell to the garages where engines are repaired or refurbished or whatever. And so drivers, those are basically the drivers, and we see a further increase in the Aftermarket business. Aftermarket business always is stronger. It's very strong when we have a slow OE business, or let's say, when there are not that many cars sold, and that was the fact also in 2020. Not a lot of people bought cars in 2020, and that's always traditionally when the Aftermarket business becomes really, really strong. But we see this business on a very high level because we have a strong market share. We have a very good reputation in the market. The Elring, we sell that under the brand Elring, just Elring. The Elring aftermarket parts and aftermarket kits are considered in the market as the Cadillac of the spare parts in our business. Engineered Plastics was also good in the first quarter. Of course, they benefit also from a strong automotive industry. The total sales of the Engineered Plastics is -- roundabout 40% to 45% is related to automotive industry. And the rest is related to medical industry and general industry, machine industry. And we also saw a pickup of the machine industry in the first quarter 2021. So of course, the Kunststofftechnik benefited from that.

[Akshat Kacker, Analyst]

Just the last one on CapEx. Abnormally low number in the first quarter. In terms of a number for the full year, should we think about EUR 70 million to EUR 75 million range in terms of total CapEx?

[Thomas Jessulat, CFO & Member of Management Board]

Yes, it's going to be increasing towards the end of the year. Roughly speaking, yes, plus/minus always some uncertainty what is being pushed then into the next year. But roughly speaking, you have to calculate with a little bit higher rate going forward.

[Operator]

[Operator Instructions] If there are no further questions, I will hand back to Dr. Stefan Wolf for some closing remarks.

[Stefan Wolf, Chairman of the Management Board & CEO]

Well, thank you very much. Thank you for attending this conference. Thank you for listening to us. Thank you for your questions, your interesting questions. We wish you all the best. And just a short remark. We have our annual shareholder assembly, general shareholder assembly on May 18. It's going to be a virtual shareholder assembly. So I'm inviting you to dial in and follow us during this shareholder assembly, this virtual shareholder assembly on the Internet. And then, of course, we will probably hear each other again when we present the results for the second quarter. So thank you very much. Wish you all the best. Good luck, stay healthy. Thank you for attending, and I think we can close this conference call and also, on behalf of Mr. Jessulat, we wish you all the best. Thank you. Bye-bye.