AUTO1 Group SE (AG1) Earnings Call Transcript & Summary

Welcome to the First Half 2021 Trading Update for AUTO1 Group. I'm Philip Reicherstorfer, Director Corporate Finance and IR. Today, I'm joined by Christian Bertermann, our CEO and Co-Founder; as well as Markus Boser, our CFO. I'm also very happy to be joined today by [ Alexander Heinrichs ], who joined us at the beginning of the week as Senior Manager and Investor Relations. I'm sure that you will soon hear much more from him and to work with him. Today, we plan to have about a 20-minute presentation, followed by an opportunity for Q&A. Hopefully, we will be able to keep the call to an hour aside. And before we start some housekeeping points. [Operator Instructions] Please also note that this call will be recorded. Please also on the next page, note the disclaimer and safe harbor statements. And with that, I will hand over to Christian after a brief video. [Presentation]

Yes. Hi, everyone, and welcome to our first half 2021 Trading Update. So this video just showed you the brand new jerseys from our first football sponsoring activity in the first Bundesliga and how this is tuning up the volume on the Autohero brand across Germany. I have to say we're extremely proud to be Hertha BSC's main club sponsor in the Bundesliga, a club with nationwide reach. And I think their jersey is just an absolutely fantastic with our Autohero logo, Honda. So as you know, at AUTO1, we're building the best way to buy and sell cars online. Where are we on that mission today? The answer is simple. We are the industry leader. We are the fastest-growing online seller in the European Union. We are the largest buyer from private consumers, and our platform is aggregating the used cut trade across 30 markets in the European Union. In this way, we have assembled the leading automotive data set for any trade. We fully control our used car production centers, and we're rapidly building out our own production capacities. On top of that, we have created our own consumer financing and inventory financing facilities. In addition, AUTO1 is run by an extremely experienced and proven management team in this market. Together, all of those key skills enable us to grow AUTO1 as 1 company, running on 1 homegrown platform with 1 technology setup and 1 management philosophy. At the same time, we have built the strongest platform effect in the industry. You can see that on the next slide. Everything that we do, while scaling any part of our platform, has immediate positive effects on our other business units. You can see in the AUTO1 flywheel that as we're getting more inventory, we can provide a larger selection of cars to our Autohero consumers. This leads to directly more buyers and more buyers allow us to benefit from economies of scale, and this enables us to again offer higher purchase prices for our sellers. Those higher purchase prices then lead again to more sellers, and this means more cars and more inventory. And here we start again. As you can see, our unique platform effects make us stronger every single day. Together, our key skills and the flywheel that I just described also allowed us to make incredible progress with our mission in the second quarter of this year. We are very proud to announce that we have achieved more than EUR 1 billion in revenue in our second quarter of this year for the first time ever. We increased our revenue by more than 18% quarter-on-quarter and achieved thereby our strongest performance in history. At the same time, we achieved EUR 99 million of gross profit, which is also our highest quarterly gross profit ever, growing 15% quarter-on-quarter. And now looking back, we are accelerating this growth momentum even further. Based on our extremely strong performance in the first 2 quarters and our hyper growth trajectory, we are raising our 2021 revenue guidance to EUR 4 billion to EUR 4.4 billion of annual revenue. We have worked, again, incredibly hard in Q2 and delivered on all of our key objectives that you see on the next slide. So we scaled Autohero deliveries much further. We increased the Autohero brand awareness across all markets. And at the same time, we controlled our Autohero GPU to the upside, you will see that later. C2B and remarketing units grew strongly despite the ongoing COVID environment to vast parts of Q2 across Europe. And we did this while controlling nicely also here a little bit to the upside, our merchant gross profit per unit. So let's get into the details and let us deep dive into Autohero. Autohero is on a very strong growth track with 7x year-on-year unit growth, leading to 8,400 units delivered for coming from just 1,200 units last year. While our Q2 deliveries were fully on plan, we are today seeing more demand for Autohero than we initially expected. We are attributing this additional demand to the success of our branding activities so far. We are, therefore, as a result of this, increasing our '21 guidance for Autohero deliveries as well. We previously stated that we will deliver 32,000 to 38,000 units in 2021. We're now raising this target to 38,000 to 43,000 units in '21. Our customers love our value proposition and the benefit of ordering their car completely online. On this slide, let me show you for some of you again why we are building the best online-only used car dealer in Europe. As we have the broadest inventory online, customers don't need to travel anymore to find their dream car, and we maximize customer demand. Our easy online checkout provides customers a haggle-free experience and enables us to have highly efficient processes. Our fully controlled production ensures high-quality cars and enables us to benefit from economies of scale. The home delivery with our unique hero truck is a true highlight in the customer journey and gives customers maximum comfort. At the same time, we're able to increase our brand awareness without costly showrooms. And our long-time money back guarantee gives our customers maximum safety and in us maximum customer trust. And with our seamless trade in, only a net payment is required and that maximizes our conversion. Now on the next slide, the best thing -- we are sourcing more cars from consumers than anyone. For example, and this is just a random pick. In June, we were buying more than 10,500 cars from consumers per week. And this is a true competitive advantage that enables us to create a fantastic variety of cars for customers to choose from. Now to another topic, refurbishment and used car production. We were from now on, call it, used car production because that's what it is. We're massively ramping up our own used car production capacity. For this year, we estimate to have a total owned production capacity of around about 50,000 cars. We will increase that production capacity to approximately 150,000 to 200,000 cars in 2022. So this is a capacity that we are creating and then has to be utilized by a staffing and more and more cars being produced in those facilities. In order to reach this target, we are currently screening capacities across 9 markets, with a total capacity of more than 500,000 cars. We're expecting that the target capacity of 150,000 to 200,000 cars will be built across 6 to 8 sites in Germany, France, Spain and Poland. So with the ramp-up of our in-house production capacity on the next slide, we're expecting our own production to be equivalent to 20% of delivered cars by December 2021. And from there on, this share to be growing from '22 and beyond. We're expecting that those in-house production capacity investments will bring down our total refurbishment cost per car in the mid-term to roughly 50% of what it is today. So this is why we're doing it. Next to our strong expansion of our production capacity, we're bringing even more of our unique glass trucks on the road to deliver the best customer experience to more customers faster. We will rapidly ramp up our fleet because our customers simply love the glass trucks, and we see it being a clear NPS driver. By the end of next year, we expect to have 267 glass trucks on the road. In comparison to our last earnings call, we increased our projection for '21 by more than 28% to having 143 trucks on the road by the end of the year. Now to NPS. As you know, we're laser-focused on our Net Promoter Score. We've seen a strong increase in our Autohero NPS scores across all markets this year. One of the key drivers of our NPS increasing is the growing glass truck delivery share that you can see on this chart. From just 7% in February, we were able to grow it to 25% in June for the overall group. The average NPS score of 63 across all of our markets for June is just 17 points away from our target of 80. With the continuous increase of our glass truck delivery share, and our strong focus on customer satisfaction, we are on an excellent track to further increase customer happiness. Now on branding on the next slide. As already mentioned at the beginning, we closed in Q2 our Hertha BSC sponsorship deal for Germany. With our presence on the jerseys, the boards and through a wide range of joint promotions in the club environment, we will strongly increase our brand awareness in Germany. Next to Hertha, we closed another very exciting sponsorship deal with European reach. So we are extremely proud to support Paris St. Germain, PSG, as premium partner with strong presence during all the home games and access to the players' collective image rights to promote the Autohero brand. [Presentation]

So that was Georginio Wijnaldum, the newest addition to the PSG team, enjoying the Autohero shopping experience in France. So as you just saw, we have further intensified our Autohero brand buildup. We increased our web sessions in Germany by more than 33% quarter-on-quarter to over 2.3 million sessions for the quarter. And this impressive growth shows you that Autohero is really becoming the leading online-only used car brand. So let's switch to the Merchant segment and its Q2 numbers. We know that our customers love our superior sell-from-home solution. And thanks to it, we are in an excellent growth track. With 116,000 units sold, we sold more than 10% more units in Q2 over Q1. And with nearly EUR 800 million of revenue, we increased our Q2 revenue by more than 19% compared to Q1. And also in our remarketing segment, we continued to show strong growth as well. We sold 18,000 units in Q2 with a revenue of EUR 152 million. If you look at this on a year-on-year basis, marketing is growing 2.3x per year in units. And if you look at it in revenue, it's even 3.3x year-on-year. At the same time, we more than doubled the number of active remarketing dealers to 2,195 in Q2 coming from just 912 in Q2 last year. So this is one of the key -- this is one of the key KPIs -- sorry, I'll switch back to video here. This is one of that key KPIs that we watch for remarketing as the active dealer base is a strong driver of future business growth in that segment. Let me now hand over to Markus for an update on financial performance during Q2.

Great. Thanks, Christian. If we go to the next page. We're very proud of what we've achieved this quarter, having hit both EUR 1 billion in revenue and our highest ever gross profit of 90 -- of almost EUR 100 million at EUR 99 million. On the top line, in the Merchant segment, this was driven by Q-on-Q growth in merchant units of just under 10%, and an ASP growth of circa 8% due to ongoing release of corona lockups and continued improvement in our sell-from-home product. As noted, Autohero revenue grew almost 20% on a quarterly basis and over 600% on a yearly basis, as our investments in inventory, marketing and refurbishments have paid off. Gross profit increase was driven by both higher GPUs in both our merchant and retail segment per car. Our gross margin was at 9.3%, down as a result of higher ASPs on the one hand as well as the dilutive effect of faster Autohero growth. Adjusted EBITDA landed at minus EUR 23 million, as a result of EUR 21 million increase in OpEx, primarily as a result of an increase in marketing and Autohero and an increase in personnel expenses, primarily related again to Autohero, including refurbishment. If we turn the page, as Christian mentioned, our GPUs improved in both our merchant and Autohero businesses. In merchant, we saw GPUs increase relative to both quarter 1 and our guidance. Relative to the guidance of EUR 650 per car at IPO, we saw the improvement as a result of consistent sales speeds since last year, higher-quality cars as a result of our sell-from-home initiative, where we can choose more of the cars we want with a higher GPU, to some degree, higher logistics attach rates and also fewer remarketing cars in the mix than expected. On the retail GPU -- our retail GPU of EUR 363 per car was primarily the result of an improved trading margin, driven both by faster sales speeds, notably in Germany, where we've invested significantly in marketing, but also across all of our markets and improved pricing strategy, in terms of deciding how we price our cars up, down and so forth. If we turn the page on to inventory. We continue to invest in building our inventory, particularly for retail, which represents the more than 100% of the growth in inventory quarter-on-quarter. At the same time, we see sales speeds improving, both the merchant but also in retail as a result of a lot of that marketing so that even with increased inventory, our inventory turns continue to remain best-in-class at 25 days of sales. If we turn the page, we've maintained a disciplined approach to cash management. And while we'll be providing more detail on the 15th of September with our half year report, we wanted to provide an indication of our cash investments over the past quarter. Starting with our Q1 opening balance, after the adjusted EBITDA loss of EUR 23 million, we paid out EUR 9 million in IPO expenses, which are a one-off. We invested further EUR 30 million of inventory to grow our business and additionally EUR 12 million in consumer finance receivables. These consumer finance receivables represent consumer loans from consumers purchasing our cars, which today is exclusively happening in Germany and Austria. All the cars that we financed in those markets are through our own platform. And you can see how quickly we've been able to build up a pretty substantial book of assets, which we then intend to refinance going forward. Lastly, we spent around EUR 7 million in CapEx, primarily in this quarter a result of our investment into delivery trucks and to a lesser degree, refurbishment equipment, leading to an ending balance of EUR 789 million. Note importantly, that there was no incremental drawdown of our EUR 500 million ABS facility this quarter. Other than the already existing EUR 20 million drawn amount, the entire -- the rest of that remains undrawn. We made that decision really just due to the negative interest rate environment in order to really to maximize the cash on our balance sheet. But that facility continues to remain open for us. If we then move to guidance. As we approach the second half of the year, we are narrowing our guidance relative to what we provided at the beginning of the year. Overall unit guidance has been narrowed to 592,000 to 623,000 units with more units from Autohero and fewer units coming from the merchant business. As always, the assumption is that we have the current level of COVID restrictions. In merchant units, we are increasingly optimizing out of our lower-end units to improve GPU and see that the ongoing shortage of new car leads to fuel remarketing business leads, resulting in our guidance towards the lower end of the merchant unit range. Nonetheless, merchant revenue continues to be strong and in fact, has been driving our revenue upgrade. In Autohero, we see more demand than expected and investing further in marketing, refurbishment and delivery capacity, which has led us to increase our unit guidance to 38,000 to 43,000 units this year. Now before going to the revenue guidance, I'd like to provide a little bit of color to Christian's comments on our refurbishment plans and the impact on CapEx and cash flow. As noted, we are currently in discussions with a number of potential sites to accelerate the in-house build-out of production sites. The capacity that we have presented represents the maximum capacity at full utilization. And this generally takes around 2 years from signing a site to reaching that maximum capacity level. For modeling purposes, we estimate around a EUR 750 investments per car of maximum production capacity. So the majority of that is real estate, which we will then be renting or leasing. To move on to the financial guidance. For revenue, we're bringing up our guidance, primarily as a result of the strength in our merchant business to EUR 4 billion to EUR 4.4 billion for 2021. Likewise, on gross profit, we see the ongoing GPU trends in both the merchant business and the retail business as sustainable, and therefore, bringing us to the higher end of gross profit guidance for the full year. We are bringing our adjusted EBITDA guidance down to minus 2.5% to minus 3%, mainly reflecting our decision to accelerate marketing in light of the positive operating impacts that we're seeing from the German marketing investment that we did in Q2, now continue to expand that over the course of the remainder of this year. With that, I'd like to turn it over to Q&A. Thank you.

Before we get started, we would like to review a few technical items to make sure that you can interact with us today. [Operator Instructions] We will address as many questions as possible live. Thank you. And we will start with Will Packer from BNP Exane. Will?

It's Will from Exane BNP Paribas. Thanks for taking my questions. Three for me, please. Firstly, there's a lot of trade press coverage of the constrained sourcing environment for car dealers. And I'm sure the environment is no different for yourselves. But inventory sourcing is a particular advantage for AUTO1. Could you outline what portion of your vehicles sold on Autohero in the quarter was sourced through your C2B channel? And how challenging are other channels? Secondly, it sounds like there's some encouraging momentum on the finance product. The slide mentioned EUR 12 million of loans. Should we infer a 10% attachment rate? How can this progress going forward? And then I suppose a bit more of a sort of why the conceptual question, the competitive backdrop is definitely getting noisier even if the peer group is at a different stage of maturity. So following the period of fundraising, could you talk through your key competitive advantages and disadvantages versus Cazoo, Aramis and CarNext, as we approach a period of increased competitive intensity?

Sure. Thank you for all those questions. So let's talk about sourcing first. So indeed, the sourcing environment is constrained across Europe. So this means that, yes, a lot of car dealers are holding on to their cars. There's pure trade-ins given to external buyers. And we also see, yes, price competition being tough. And I think in light of that, our results are even stronger with over EUR 1 billion of revenue. So we have no sourcing constraints in Autohero. If you're asking the question how much of the inventory was sourced from external. We have to look at the exact number up. But I would wonder if it's any different than 99% that we stated the last time. So basically, all the cars are coming from internal. And we see our customers receiving the sell-from-home solution that we offer and also the price level that we offer. We see them receive that quite nicely. If we look at external channels that we're experimenting with because we think in the long term, there will be like 25% to 30% of external sourcing. If you look at those channels, it's really tough competition and prices are on a very, very high side here. So I think also coming to an early answer on the question 3, that is a true competitive advantage of us, and this is what the core of the AUTO1 platform is about so far. But maybe we go over to the finance product question. That was the second one, Will. And yes, before I let Markus answer that. So the attach rate of 10% is not the right one. So we are only yes, we're mainly operating this in Germany so far. And we're seeing already a market standard attach rate in Germany. We are intending to show and give more details on the next earnings call about our internal consumer finance product. But over to you, Markus, if you have anything to add.

No, I think that was exactly the point. I mean perhaps the only thing I would add is in Germany, the market standard attach rate is around 35%, and we're seeing that, if not even a little bit better. So we're very happy with the product and also I wanted to, I think, show really how quickly we can build a very attractive book of assets.

Thanks for the color. So the key competitive advantage is sourcing, which I think we've obviously discussed many times before.

No. I was not yet on your question with. That's the beginning of it. So on competitive advantage, I mean we created those 2 slides, and we truly believe that those are our competitive advantages. So Slide 5 and Slide 4. So we have built this company as 1 company, as 1 platform that operates on 1 technology with 1 management philosophy across all the markets that we're operating in. We cover the full Europe with our 11 -- 10 to 11 Autohero market and also buying markets and then 30 selling markets. And the way we have approached this market, we're digitally aggregating all the transactions. And that leads to one thing, which is a competitive advantage, and that is higher prices for selling consumers and higher prices for selling consumers means that you are able to assemble more interesting inventory. And that more interesting inventory will then translate into very interesting GPUs and positive customer feedback and then lead to cost efficiency. So that's a little bit one of the main flywheels that we have depicted on Slide 5. There's several flywheels built into the AUTO1 platform. but that's one of the most important ones. So every aspect, every business unit is contributing to this data pool, and that data pool lets us then create better decisions for every future and next trade that we're going to do, irrespective of the business unit. Just a sheer growth in the sheer size of the merchant base and the database of car transactions that we have just enable us to learn faster and price cars better than anyone else in this market. At the same time, yes, we've also mentioned the EUR 500 million ABS facility. That is something where there's a lot of work behind and a lot of progress has to be made to realize that. And now the last skill set that we're learning, if you want so, is our own used car production because we really saw, I mean, it works with external partners. It's not very cost efficient, but we don't like this situation of not having perfect control over the value chain. And this is why we are taking the [ Kawana ] route and taken this over ourselves. And the sites that we are planning will be sites that will be fully dedicated to us, they will be our own, if we rent it or buy it. And this means that they are perfectly suited to what we're doing. And this, again, guarantees the best delivery times, the smoothest processes for the customers and in the end, the best product for our customers. And then I repeat what I said already a couple of times and keep on saying, the best product will win.

Thanks, Will. And with that, Catherine O'Neill from Citi.

The first question I got was actually on Autohero on the quarter-on-quarter growth, which slowed down as it did for a number of platforms. But I just wondered if you could provide a bit more detail on what was behind that. Should I do the questions one by one? Is that easier?

It's either. Otherwise...

No. I'm okay with noting them down. But yes, no, we can talk about the quarter...

No. Okay, one by one.

So the quarter -- Sorry, Philip. Yes. Anyway. So quarter-on-quarter growth, yes, it looks indeed a little bit reduced. The reason for that is that we were very much over planned. And then we actually realized pretty much our business plan number in Q2. So there we were in line again with our business plan. Now your next question would be, why didn't you increase based on the success that you have seen in Q1. And there, we have to see the strong ramp-up that we did in Q1 was something where we wanted to capture enough data first. So we didn't have a sourcing constraint, but we were in the middle of taking the decision, how much do we front-load the external with the take-in of the external refurbishment, the decision to build out our own refurbishment facilities. And that is something where we looked at a lot of data during Q2. And within Q2 took the decision that we can actually grow faster than we initially planned. Refurbishment needed to have a green checkmark there, so that doesn't become a constraint. As you know, and as I just said to Will, we don't have so much of a supply constraint. So we are able to source all the inventory that we wanted. So the decision to go fast on Autohero is mainly based on the early success of the branding activities, especially in Germany that we're seeing because what we're seeing is that the advanced brand building that we're doing and the advance awareness that we're generating by the brand is generating a very positive effect on the business overall. So it leads to higher stock turns and higher stock turns lead then to higher GPU. Or in other words, we can sell more units with the traffic that we have provided that we meet our refurbishment deadlines and standards. And this is why we upped the Autohero guidance even after a Q2 that looks like slower growth if you just look Q2 over Q1.

Okay. Makes sense. And actually on the marketing branding side of things, are you updating your marketing guidance? I think it was for retail, I think it was EUR 200 million over 3 years.

We are -- I mean we gave very specific guidance at IPO really to enable people to build a model going forward. I think we're now going to be providing sort of rolling 2- or 3-year forward guidance. Having said that, we are looking to spend significant move forward or invest a large portion of that for this year. So we are looking -- we will be spending around EUR 100 million for the second half of the year between Autohero and WKDA for the second half of the year, which accounts for the vast majority of the reduced EBITDA guidance?

Okay. Brilliant. And then on the refurb, where you're adding more capacity, especially into 2022, your plan is to do that? What percent of units do you think will -- refurb will be in-house by the end of next year, if you're at sort of 20% now? How should we think about how that increases over the next year or a couple of years?

It's a very good question. I think our long-term target would at least be 90%. I think if you look at end of next year, then we estimate or we set our target to be between 30% and 50%. So you can expect a continuous increase in the number of refurbished units in-house as a percentage of deliveries.

And then my final question is on gross margin Autohero. So Aramis has obviously come to market now and has the gross margin in the mid-teens. I just wondered if you could talk about what you think is creating that difference versus Autohero and if there's anything stopping you reach in those levels?

I think the key difference is that, I mean, if you sell offline, then you can immediately realize higher gross profits. The problem with that is just that customers don't want it, and they don't like that or they don't enjoy the experience. But if you look at a classic car dealership, I mean, it's not that they have to generate like they have to raise EUR 100 million to create a car dealership, right, offline. So you have your the lot to sell offline and you're completely bound to be classified of a market. But what you're then building is a legacy business because we know that the market and customer behavior will shift completely -- will shift completely online and move away from offline. So what it means is that you will not be able to create a brand, that brand that long term will set you apart from the rest of your competition and will enable you to generate above-market gross profits and also above-market EBITDA. So I think, yes, the reason, if you compare us with an offline dealership, it's just lots of investment, and there is customer behavior that is at the moment, kicking in, but already the lift-up of gross profit in Autohero shows you that this is working out quite well. And also the marketing data, traffic data shows you that this is really what customers want. But it will take some time until everybody has adapted their buying behavior.

And with that, over to Nizla Naizer from Deutsche Bank.

I hope you can hear me.

Yes.

I have questions as well, great. Firstly, on return rates, Christian, did they improve in Q2 over Q1, some color there? And if customers do return a car on Autohero, what are the sort of main reasons they do cite for those returns? So just an understanding that would be great. And my second question is on -- based on the growth that you are seeing, do you think that the 120,000 cars sold target in 2023 that you initially gave us is now conservative? And could you potentially do more based on the trajectory of improving units sold?

Yes. Yes. So the return rates are hovering around the same value, so around the 4% that we have been seeing, in fact, they slightly improved. But if you compare it with a business like Zalando, also, I think they're negligible. What are main reasons? So main reasons are really that the car is not the one that the customers like -- that the customer wanted. So this is mainly the reason for sending our car back. And in fact, this means the other way around, 96% do very well know what they wanted. So if you send it back, then it's not an additional scratch or something that we would care for or the car arrives early that we would also care for. So speaking of problems, which could occur at a car delivery, it's really that you dislike what you have ordered, but not because we didn't provide it in the condition that it should have been. And yes, so it's tending -- trending down a little bit. But I think for an online business, this is a very good value still. And on the unit guidance, Markus is already looking nervous. So maybe I'm handing over to him.

So we're not changing at this point our 2023 guidance. I think, though, what we are doing is investing in the platform. And I think it makes us feel much more comfortable about really being able to achieve that type of growth and that guidance -- or sorry, in those kind of units. And right now, we're investing really to build a platform whether it's 120,000 units or more that we know that it can sustain that. And the way we've done it is we decided in Q2 to really invest in marketing substantially for Autohero in Germany. We've seen some very positive outcomes out of that. And most notably, you see that in the GPU, in the retail business. Now we want to expand that for Q3 and Q4, not just for Germany, but also for other markets because we really see a significant benefit to that both from a GPU perspective, but also from a sales feed perspective and gives us far more comfort to be able to grow, at the same time investing in that refurbishment or accelerating, if you will, kind of the investment in the refurbishment. And we will definitely be providing more forward guidance as we get more and more closer to that and more and more comfortable. But I think for today, we're not changing or giving any changes to guidance beyond this year.

And with that, over to Sherri Malek at Royal Bank of Canada.

Can you hear me?

Yes.

Great. I have just 2 questions on Autohero. The first one is on the truck fleet. And the context of this question is that having been in Spain recently, I did recommend my in laws to buy a car on Autohero, and the experience, I have to say, was excellent. I was hoping that the car would turn up in one of the fancy trucks. It didn't understandably. So my question is what delivery share do you plan to reach by the end of the year? And are you rolling this out across all markets at the same time? Or is it a more staggered approach market by market? And then my second question, I was just curious how you're managing the trade-off between the choice offered to the consumer versus the time and the cost to deliver that car to the consumer, especially given delivery is free. So basically, is the consumer seeing a more local selection of inventory? Or is it a whole of country inventory?

Yes. So first, I'm glad that you enjoyed the Autohero experience or your friend in Spain. And yes, I mean, it was probably right slide for you to understand why you didn't get the truck experience because the likelihood is quite low, which is 25%. We are working as hard as we can to get as many of those trucks on the road. So at the same time, our business is obviously growing and growing. While I think our long-term target of this is definitely 80 and above, I think you can just continue the growth trajectory that you see. So as I said, we have -- we're working on it as fast as we can. But I don't think that we can promise a certain delivery share towards the end of the year. But I think next year, we should definitely be hovering around the 50 or so at least. So when it comes to your second question, can you remind me again of the second question, sorry?