Alligo AB (publ) (ALLIGOB) Earnings Call Transcript & Summary

Good day, and thank you for standing by. Welcome to the Alligo Full Year Report 2023 call and webcast. [Operator Instructions] Please note that today's conference is being recorded. I would now like to turn the conference over to your speaker, Clein Ullenvik, CEO. Please go ahead, sir.

Thank you, [ Ross ]. Welcome to Alligo Year-end Report 2023. We are super happy to spend some time with you guys today. Presenters today, as always, Irene Wisenborn Bellander, our CFO; and myself, Clein Ullenvik, the CEO. You know the drill, we will highlight a few things. We'll absolutely not go through the report in its entirety so we will make some short stops. And we also have a theme at each presentation -- I shouldn't even list them all. We have so many different themes, but in the very beginning, we had one theme, which was logistics which we intend to revisit this time and then bring up some updates on what's happening on the logistics side. So this -- and following 1 or 2 slides we have done every presentation because we are a fairly new organism and a fairly new listed company. We will probably not show them these first slides going forward, but we do this last time -- this time, so pay attention. The SEK 9.3 billion turnover business, a little shy of 2,500 employees, 210 stores. And the new things on this slide this time is that now it has Tools in Norway and Finland and it has Swedol in Sweden. And as of yesterday, if you go into tools.sc or grolls.sc, you will be redirected to swedol.sc of the web or if you call any of our brilliant salespersons, they will answer Swedol. So Things are moving forward in the consolidation of our concept brands. The origins of Alligo should not take it all, of course, but dates back to 1832, Swedol founded in 1963, Tools around the millennial shift. And then we have this modern things happening where we have confused you guys with all our name changes and spun-off Momentum Group. So this is our time line with great history back to it. And at the glance, we are Sweden dependent, as you know. A big chunk of our turnover comes from Sweden and even bigger chunk of our result comes from Sweden. And a very important thing for us is to sell more of the defined assortment, as we talked a lot about, but also within that, our own brands, which are now at 19% as a group whereas the old Swedol was at 35%. But combined now, we are at 19%, and it's increasing steadily. Our market, we have 8 different market segments, manufacturing, i.e., industry being the biggest one. The total market value is difficult to estimate, but it's somewhere between SEK 55 billion and SEK 60 billion and we love all customers, but we focus very much on small and medium-sized customers. So we'd like to develop the larger ones we have. At the same time, we increased the share of small and medium-sized customers in all our countries. Yes. And our competitors are, I think they are quite obvious, a different type of chains that we meet in the local market. It differs a little bit from country to country. So if I take some highlights. So the market situation. I think we are celebrating 1 year exactly when we started signaling that we could see that the market wasn't going to grow heavily during 2023. And we are still on that line, which has been good for us because we've been able to counteract this slow development in the market. So it has been slow, and there was a little step even worse in Q4. So it's just according to the line that we have predicted and we have managed to take counteractive measures. Norway, we can see lately is fluctuating a bit up and down, but we foresee that the oil and gas sector will be steady going forward. We, as a fairly experienced management team and managers throughout the organization, has been able to adjust the cost base in relation to the change in the market. We worked a lot with price adjustments, not only increasing pricing, but also adjusting prices to be competitive in different -- very important product categories and do acquisitions. We did 9, 2 years ago. We did 6 last year and the situation as it is today and with our balance sheet, we intend to do even more going forward. So sales management and driving that and directing that in the best possible way is very important thing for us. And we've been focusing, as you know, on reducing inventories or at least being more efficient in our inventories related to sales. We have a good capacity. Central warehouses works fine, and we have a product at home, potentially too many. The macroeconomic factors, yes, the market economy, you can hear from everywhere where that market is and some geopolitical turbulence to that where our freight costs and freight times has been a little bit longer and higher due to the Red Sea debacle. So Q4 in brief. Revenue, negative organic growth, 6.8%, but we still managed to increase EBITA -- the adjusted EBITA by 3% to SEK 308 million. Improved the cash flow quite significantly. So whatever actions we are doing in the inventory side is having an effect. They want the effect. We made 3 acquisitions in December only and whereof 2 was -- for us, a very important area, which we are focusing a lot on, which is welding. We said that just before the call. We'll probably come back to that next quarterly report describing why welding is so important for us. We have said that we committed to the Science Based Targets initiative doing our part of reaching the Paris agreement and the consolidation of concept brands, as I said initially. The Norwegian logistics centers, we will come back to, but it's moving along according to plan. And we -- the Board proposes a dividend of SEK 3.5, up from SEK 3 last year. Those 6 acquisitions, as I said, you can see that 3 of the 6 is within welding and we will continue to acquire well around businesses that fits our strategy. We don't take over turnaround cases. We'd like to have them well run and profitable and we have a long list of companies we are working with. And we have the Board that is supporting that, the management team, which is supporting that, and we have the balance sheet supporting that, i.e., we will continue to do acquisitions. This slide, you remember since from before. And if we go from the right to the left, you can see from the top, the higher the store channel and which we could relate to small customers. So the higher the share of small customers, they create the profitability, Finland, Norway and Sweden. And then at the bottom, same thing with their own brands, 10% in Finland, 17% in Norway and 24% in Sweden. So the higher the share of own brands, the higher the profitability in that country. A short background slide of the journey we made at Swedol taking it from some 3% EBITA margin up to above 10, then we merged with Tools and the journey started a little bit over again. So from 2020, we are on the journey. We were [indiscernible] 9% EBITA margin. So we think that history proves that we know fairly well what we're doing. So logistics, I said, looking at the gray little dots, those are all gone. The black dots are the ones that are left, still there. So in Finland, we have Kotka. In Orebro, we have -- in Sweden, we have Orebro. And in Norway, we are now starting up Vestby, so we have one central warehouse by country and all those regional warehouses in Norway. They are all closed except Stavanger, which was informed this week that we will close the regional warehouse, but of course, there will be a shop in Stavanger. So this slide is -- we are now at the endgame where we wanted to be, and we are super happy that we built the structure. So Vestby, a wonderful new build -- purpose built for us, 16,000 square meter house, perfectly situated in Vestby, that's the place to be. And we have capacity to expand for the future. We can increase automation and we can also increase number of square meters. So Skedsmokorset, which is the old Univern Swedol central warehouse. We start by entering that. And then we take on Rosenholm, which was the Tools central warehouse. And it's starting up now. That project is running very nicely. So it's just according to time and budget. And in Orebro, we have invested in increased automation, which has started up, taking away different ways of doing things, which is not so good for you. You can hurt your shoulders, you can hurt your arm, you can hurt your legs. So it's automating some bad parts of our process. So that is in place that will reduce cost and it will increase the willingness to work at our central warehouse in Orebro and it's also in place and started up. So finally, financials, Irene?

Yes. Thank you. As Clein mentioned, we have continued to increase profitability and strengthen our cash flow despite weak demand. Revenue decreased by 6.8% in the quarter. Acquisitions had a positive impact of 3%, but we're unable to compensate for negative organic growth in Sweden and Finland, negative currency effects and one trading day less. The slowdown observed in Sweden already in the fourth quarter of 2022, and in Finland during the second quarter of '23 has continued, and there was a clear slowdown in the manufacturing industry in Finland in Q4. EBITA increased by 3% in the quarter and Norway drives the improvements. EBITA margin reached 12.1%, and the increased profitability is a result of our focus on maintaining/improving gross margins and good cost control to mitigate weaker volumes. The gross margin improvement is mainly related to the increased share of sales of our own brands and SME customers, successful supplier negotiation, termination of unprofitable customer agreements and renegotiate of low-margin customer agreements. The operating profit was charged with items affecting comparability of [ SEK 16 million ] whereas the main part is related scrapping of COVID-related products in stock, but also an effect of organizational changes. The deteriorated financial net of SEK 11 million, excluding IFRS 16 is related to higher seaborne, but to some extent, being contracted by a lower interest market due to improved net debt to EBITA ratio. Turning to the next slide and have a closer look at the development in each market. And sales in Sweden decreased by 7.8% and organic growth was negative but mitigated by acquisitions of 5 projects, near accomplishment. The previously observed slowdown continued in the quarter. Organic growth was approximately minus 11%, and the decrease relates to most customer segments. EBITA ended at SEK 244 million, which is slightly behind Q4 last year, but the EBITA margin was in line with last year, and the focus on improving margins and cost savings mitigated lower volumes. After several months, a positive sales trend in Norway in local currency. There was some hesitance in the market in Q4, except within the oil and gas segment. The organic sales reached about 1% in the quarter and 4% for the full year. In Finland, sales decreased by 1.8%. The organic growth was negative at minus 8%. And there was a clear slowdown in the manufacturing industry during the quarter. Acquisition [indiscernible] FX effect mitigate that effect. The results in Finland was weaker due to lower volumes and store investments to better meet the -- of small and medium-sized customers. When it comes to cash flow, the fourth quarter is seasonally the strongest quarter from a cash flow perspective. We improved operating cash flow by SEK 109 million in the quarter and SEK 486 million for the full year. The vast majority of improvement both in the quarter and for the full year is related to our focus on reducing our inventory levels and prepayments to our 4 East owned brand suppliers. It's also, of course, an effect of improved EBITA and lower sales. The investing activities for the full year are related to M&A activities and consists of fixed completed acquisitions but also investments in noncurrent assets of a total SEK 215 million. The ratio of CapEx to depreciation amounted to a multiple of SEK 1.9 million, which is on a higher level than our long-term target level of having depreciation levels in line with CapEx. Finally, financing activities are mainly related to dividends paid, repurchase of shares, increased borrowings and amortization of limiting liabilities. The net debt amounted to SEK 1.4 billion that is a decrease compared to last year and driven by strong underlying cash flow. The ratio of net debt to EBITDA amounted to multiple of 1.6, which also is a decrease compared to last year and well within the financial target range . Our covenants are related to interest coverage and equity asset rate. These are fulfilled at the end of the period, and there is good headroom before reaching the threshold. And if we move on to the next slide and our performance in relation to our financial targets. You can see that the organic growth didn't reach target levels due to the slowdown in the market. However, we had a continued solid EBITA margin improvement, driven by our focus on sales and assortment management, efficiency measures and cost savings. We have a strong financial position, and we will continue to invest in organic growth and take advantage of good M&A opportunities in our market. And when it comes to dividend, the Board proposes a dividend for 2023 of SEK 3.5, which corresponds to 35% of net results compared to 31% last year. We've also progressed in several areas within our sustainability work. And the most important is that we have joined SBTi in Q4. We are thereby committed to set climate targets for reducing Scope 1, 2 and 3 emissions. Let me hand over to you Clein.

Thank you, Irene. So if we go for a summary and outlook. So as Irene said, strong cash flow, SEK 7 million from SEK 1 billion in positive cash flow and increased profitability [indiscernible] from 9% EBITA margin. We have strengthened our competitiveness. We are becoming a better and better company day by day. We are adjusting our prices. We are partnering up with our suppliers. We just had our competence days, both in Sweden and in Finland and Norway to come. And we constantly change and revise our assortment to be as competitive as possible, and you know our brutal focus on the right customer mix. So we will continue to grow the share of the defined assortment together with our partner, suppliers and also our own brands. We have a solid and clear strategy, which has been in place for quite a while, where we tried to condense that into 3 overarching themes that we communicate and talk a lot about in the company. So I think people are getting bought with it soon. But 3 of them make our people grow through training, through e-learnings, and we have these competence days, which is a huge investment where we bring all salespeople and train them together with our partner suppliers, improved collaboration and processes. I've said it many times, I say it again, we are far from a very efficient and effective company. We started this week together with the management team, our journey to be a more process-oriented company. It's a fairly new organism. We've set the organization. We started to do our journey, but we need to fine-tune so many things. We've started our journey to be more effective and efficient, and we did that this week and get on track with growth and margins in all parts of our business. Of course, not all parts of our business will grow in the same pace or will not be exactly the same -- on the same profitability level, but we never give up with support and the chase, the potential underperformance. And we try to support the ones who are developing nicely. So these 3 overarching themes we had for quite a while, which we think is receipt of that they are the right ones. So outlook, 2024 with the balance sheet, Irene talked about the stability we are. We are so happy that the market downturn didn't come in 2020 or 2021 when we threw up all these different organizations up in the air and trying to form what today is Alligo. So the timing was perfect. If there were to be a market downturn, we are so happy it was now. And we are, from a balance sheet perspective, super strong. We know what we're doing. We are focusing on driving sales, developing our offer. We'll come back to that as well with circular offers in clothing, workwear and you know about the smart service solutions and all those things before. We'll come back to that. Increase the share of small and medium-sized customer, trying to be even more efficient on the inventory levels. We will continue. We are now at plan B, and we are ready to do more things, if the market were to continue downwards for a longer time. And we have -- we will take the opportunities to do more acquisitions. We feel very ready to do acquisitions. And we can do that for a while. And then hopefully, we can have a full throttle also growing organically at one point. And the SBTi initiative, we have said that we are joining. So we are ready to hit the accelerator when the market turns up again. Very good. Handing it back to you, [ Ross ], for a Q&A session.

[Operator Instructions] We're now going to proceed with our first question, and the questions come from the line of Emanuel Jansson from Danske Bank.

Thank you for a good presentation. I think you have answered pretty -- a good share of my questions already, actually. But if we're looking at the profit development, which has been really good during the quarter. And I know, Irene, you told a bit on -- you elaborate a bit on the gross margin here, but a really impressive development, should we expect this development going forward, as you continue to increase the share of private labels and also turning customers or your customer exposure more towards the SME going forward? And also, could you maybe probably elaborate a bit on the price component here? And I assume as well that you are saying no to kind of a few customers when it comes to volumes. Of course, you want to protect your margins here, am I right? A lot of questions.

Yes. No, no, very good and a super interesting question. We could talk about that for hours. But if you come to the gross margin, we are not a gross margin maximizing case. We'd like to have the gross margin on okay level. And then based on that, as you know, we'd like to grow. And we are trying to fine-tune our offer in the best possible way, finding the best partnership with external suppliers and the good mix of our own brands, and as you also know, trying to increase the share of small and medium-sized customers. So of course, the high degree of small and medium-sized customers, the better the development of the gross margin. The more we manage to steer our sales organization towards selling what we call the assortment -- our field assortment, the high share -- the higher level of the gross margin. And as you also said, Emanuel, you know this very well, we are turning down some larger accounts or trying to develop them. We'd love to work with all customers, but some of them do not value the competence of our employees and our offer and then they are probably better off elsewhere. So all this together should -- we are fighting for keeping this at this level. We would be happy if we were to be on this level because we also face competition in the local market where we have competitors, who try to take market shares and try to do semi-clever things in a bad market. So if we could keep the gross margin level at this level going forward and then at one point, hopefully not too far in the future, start growing, then you know what the leverage you have in a company like this. So yes, long answer. I don't know if I answered your question, but [indiscernible] even at this level. And then the price component you talked about also, there, we have made adjustments now at 5th of February in all 3 countries. There was very minimal price increases from our suppliers. And we need, of course, to compensate for our cost increases in the form of rent increases, which are quite heavy, salary increases and so forth. So we have a very well-established process, we hope we do that. So the price increases are minimal. Now there are low single-digit price increases in all countries so -- but the process is the same.

Great. That's very clear. And I don't know if it's possible, but is it possible to somewhat say, how much of the negative organic sales growth that steams from rejecting of orders or sales?

Well, how much is relating from, then it was strange sound...

Yes, sorry. How large portion of your negative organic sales growth steams from like the rejected orders that you're protecting the margins?

Good question. I shouldn't guess. That's a very good question. The largest account, as we've talked about before, they are now -- if you compare Q4 last year with Q4 this year, most of that has rolled out. So we will continue to challenge the profitability in each contract we have, but it should not be a big chunk. Then we now follow the market development. And you have seen also other companies that has reported. I think we come out quite okay in our negative organic growth development.

Yes. I totally agree on that. Perfect. And maybe last question from my side here that heading down further down to the EBITA level, which also had an impressive development in this quarter. And if I may ask you, when we see tailwind again in the market and we might see an increased focus from Alligo again on sales, you feel that you need to invest more on your cost side? Or are you pretty well set here?

That's also a very good and very complex question because we are now a plan D. And of course, we are taking away resources, which we didn't take away in plan B or C. So at one point, we have taken away some structures, but generally, no. The shops are there. Our brilliant salespersons in the shops, they can handle twice the sales we have today, the warehouses. It's only you need to have some more people just picking the orders, but besides that the structure is there. So my answer would be a minimal investments/extra costs to grow quite a lot.

Perfect. Sorry, maybe a final question, and then I will get back into the line, but also you had strong cash flow and you're talking about the M&A agenda here, and you have a really financial position that is able in my view. At what level do you feel comfortable on adding to sales from acquisitions in 2024 you think?

Do you mean in leverage? Or do you mean in inside volumes or what was...

Yes, sorry, sales volumes.

We'd like to -- we made, I think, close to SEK 400 million turnover money 2 years ago and SEK 330 million last year. I'd like to be about both of them. We feel well positioned despite the market situation or perhaps thanks to the market situation to actually do acquisitions now. I probably come back to that, but there are some cases that has materialized where competitors of ours has stepped away because of their financial situation, where we have a very solid financial situation and good self-confidence. So we intend to do acquisitions at a higher speed. So I hope we could add, what we've done the last year, SEK 300 million to SEK 500 million in turnover.

We are now going to proceed with our next question. And the question comes from the line of Karl-Johan Bonnevier from DNB Markets.

Yes. Continuing on the same line as Emanuel here, looking at Q4 gross margin, I guess you must have had a very good sale, what you call, the field assortment. I guess that's the winter workwear and similar kind of things. Is that a big component in getting the margins up to this level?

Absolutely, the higher degree -- you could -- we only share the slide -- we showed the slide with the store sales and own brands. But if we've shown the actual workwear part, is also a very essential component because that's high-margin products, so shoes, gloves and workwear. So of course -- and the more of winter gear, the better as we are today on the 16th of February. We don't have much use of snow anymore. But in Q4, we'd like to have it cold and snow. As you said, we -- I cannot complain about the weather in Q4. I can complain about the market. The weather was perfect and that has, of course, helped absolutely.

I think you alluded to at some stage that maybe the clients were coming in, buying the winter gear, but you didn't do a lot of extra sales for that. Is that how it turned out in Q4?

Exactly. It's exactly that. You buy exactly what you need and not only -- if you -- your feet are cold, you go in and you buy shoes and in better market conditions, you buy a jacket and other things while you are visiting us but in this type of market situation, and that we know since before, you buy exactly what you need. So I said somewhere that we have not been able to capitalize on this brilliant weather, as we would have been able to do if the market would have been better.

Good way of putting it. You mentioned the new KPI for me at least, defined assortment a couple of times. How much of the revenues of SEK 9.3 billion in 2023, would you characterize as defined assortment?

We are above 50% at least. It differs a little bit from country to country, but I think in Sweden, we are high 60%, and it's a transformation process. And that also actually is burdening our gross margin because we are selling out and campaigning out products, which is not in this assortment. We have small and medium and large assortment in the different type of shops, and the salespersons. We defined when we launched this setup, we had 44,000 articles in our F assortment. Now we're down to 40 so of course, it costs a lot. So we would love to come to a situation where we are more stable because you have to campaign away products, which were in F assortment and now longer and were in small and medium and large sized shop assortment. But we are in a normal Swedish shop. I would guess they are at 70% in line with the assortment or even higher.

When you look at your future targets and maybe your own brands is 25% of the mix, then another 50% should be, say, the defined assortment and then the remaining 25% that might be trading volumes or things that local store finds a good need for storing or how...

Approximately even higher actually on the defined assortment. And we say that it should be to 70% the same assortment in all our countries. And then within the country, a local shop, if you take the Shoppers Stop, 10% have a local variation to their assortment but it should be higher. And it's high -- it's so wonderful and so important for us because then you partner up with the suppliers, they feel that we deliver on what we promised. We are not having any [indiscernible]. We can ensure that sustainability objectives that we only have suppliers, which are in compliance with that. And we have the best conditions from those suppliers. So it's such a win-win-win situation to sell from this defined assortment. It's super important for us.

And when you look at the narrowing of the assortment from the 44,000 to 40,000 that you now have done, what kind of further concentration would you see? Is in plan for the month? I guess you always need to reshape your assortment to some extent so...

Yes, it's a very good question. And as long as it's -- to a certain extent, it's getting more narrow, as you say, it's good. If we started off with more than I would have thought, I would have guessed 25, 27. We started at 44, but it's perhaps logical and best to be a bit kind in the beginning. And then from there, narrow it down, not -- of course we have customers, who have been promised that we have a certain article of a certain brand. We need to have time to communicate with that customer and try to convince them that this product from the brand X instead of Y is similar, but you get it at a better price and you get it more in line with the sustainability targets. So it takes a little bit of time. So it should be more narrow where the end game is -- yes, I have no idea.

But the target below 30,000, I can see the clear advantage for you having volumes on more limited ranges and that kind of bargaining power you should have to your suppliers.

Yes. No, that could be reasonable. Absolutely.

Excellent. And looking at the good move this year, obviously, getting closer to the 10% margin target, not getting helped by the market. But if you're looking at 2024, not getting helped by the market, is there still a lot of, what I call, [ self-help ] kind of opportunities left from the merger integration and the improvement of the structure to help you bridge the gap even further during this year?

Now -- from now on, I think it's more operational work, being more efficient and effective, working with managing sales rather than from any synergies from back in the day. So I think we have a lot to do to manage and run the business more effectively, is the biggest opportunity for us in a continuous declining market, as you said.

The more of an optimization and then -- mostly then -- we see you're getting closer to that putting further -- put back on the accelerator as you put it.

Exactly. Exactly. We are looking forward to that greatly.

Then you alluded a little to coming back talking about welding and you talked about acquisition opportunities for this year. But when I look at those welding acquisitions then, all of them looks to be very profitable operations. I can understand the attraction for you. Is there any more white spots outside that? And maybe a little to what the opportunity you see in welding as well, what you can get that to?

Absolutely. We have other areas we are pursuing. We always communicated organically or through acquisitions that we like to be better in fasteners. Welding, cutting, grinding anything that has to do with more being closer to the customers' process and more of competence sales. I was actually in one of the booths we had, what was it, 160 presentations [indiscernible] with all the sales personnel and I went into the presentation of welding, and I heard a person there saying this is not a product assortment. It's a competent area. It was just a reminder that, wow, that's why we actually do this. So we'd like to -- more of a partner to our customers helping with their problems and solutions because it's difficult to be on the profitable levels we would like to be by only competing on having the exactly the same product as our competitors have. So our own brands and more competence sales will help us going forward.

We have no further questions on the phone lines. I'll hand back to you for the webcast questions. Thank you.

Thank you. I'm trying to read at the same -- you have previously mentioned that sellers are still in 2021 or 2022 in terms of price of those shops or starting to meet the buyers. Okay, I guess it's an acquisition question. Looking into 2024, do you see any improvement in the market in the first half, tougher before it becomes easier. If I interpret that as an M&A question, I should say, yes, and we made 3 acquisitions in December, which I think is a little sign that it's actually -- because we have communicated that when the market turns down -- and I think that's what this question is relating to, then we have a period where we don't meet each other. The seller is -- has thought that the value of their company was at a certain level. And then the volumes and result comes down a bit, and we cannot do the math necessary to be able to agree and then time goes. And my answer would be, yes, we feel that we are now back at the table again with some cases where we left the table potentially both of us, both the seller and us because we couldn't agree on price levels. So expectations has come down a bit. We have developed as a company because we look a lot at the post-synergy multiple, which is super important. So if that is really low, then it's an attractive acquisition for us to do. So the answer would be, yes, we are back at the table. We hope to do quite a few acquisitions during 2024. Then we have another question. The winter has been long and pretty harsh throughout the Nordics relative to recent years. You usually talk about boost when the winter arises, but being so drawn out, this has helped you throughout Q4 and also in Q1 -- shown out winter -- exactly. Is that the question -- is if we had -- and I think we touched upon that with the discussion with Karl just now. We had great help of the bad weather in Q4. Unfortunately, the underlying market was not so good, so we could fully capitalize on that. But in Q1, it's less necessary. I was down in the shop [indiscernible] just the other day, I talked to a customer, and he said now what -- just like the cold weather's ghost, I can start digging. So from now on, we are not helped by any more snow. Our customers, generally, they have their winter gear they need. So from now on, it's actually not good, if we continue to talk about weather. So now we'd like it to be a bit better, so our customers could start doing their job and working outdoors and doing the digging in the ground and all those things. So that's a very good question. Very good. Was that all -- yes. Thank you very much. So what do you say, Ross, should I go straightly to the closing remarks?

Yes, please, sir. Please go ahead. We have no further questions on the phone lines. Thank you.

Very good. So thank you very much, everybody, for listening in. We are navigating through a tough market. We have foreseen it for quite a while. We were able to mitigate it so far. And I'm super proud of our wonderful colleagues fighting every day, winning orders, taking orders. It's a super tough job. We are proud that we were 1% from 9% EBITDA margin. We were SEK 7 million from SEK 1 billion in positive cash flow. Our direction, our strategy is super, super clear. We have our overarching themes. Now it's time to start to prepare for growth. We expect that the first step on that journey would be to make acquisitions. And then after that, after a certain period, if it's 6 months or 7 months or whenever, when the market shapes up again, we are ready to go for growth again. So we can continue to prepare ourselves for that and do acquisitions. So the journey continues. Thank you very much for listening in.

Thank you. Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect your lines. Thank you.