H+H International A/S (HH) Earnings Call Transcript & Summary

Welcome to this H+H International A/S Q4 and Full Year 2024 Financial Results Presentation. Today's call is being recorded. If you have any objections, please disconnect your line. [Operator Instructions] I will now turn the call over to speakers. Please begin.

Thank you, and good morning, and welcome to our conference call for the presentation of the annual report of 2024. My name is Niclas Bo Kristensen, I'm the Head of Investor Relations and Treasury. Joining me this morning is our CEO, Jörg Brinkmann; and our CFO, Bjarne Pedersen. Yesterday evening, the annual report and supporting documents were published and uploaded to our Investor Relations website, including the presentation for this call. During today's call, management will present the annual financial report, after which there will be a Q&A session. Please note that this conference call is being recorded and will be made available on our Investor Relations website after the call. Before handing the call over to Jörg, I would like to direct your attention to the disclaimer on Page 2. During this call, the Executive Board will share future plans and expectations for our business that go beyond historical facts. These forward-looking statements rely on current assumptions and therefore, come with some risks and uncertainties as many factors could change their outcomes. For more information about these risks, please see the 2024 annual report. And with that, over to you Jörg.

Yes. Thank you, Niclas, and good morning, everyone, who is participating in this earnings call this morning. Please turn to Page 3 for a couple of highlights from our Q4 financials. And let me do the Q4 first. So when you look at the financials here, I think what you really can see from the numbers is, first of all, it's really strong improvement to where we were a year ago. So in the quarter, we were showing a 6% organic growth, mainly coming from the Polish and the U.K. market, where we could see some positive signals. And we'll come back to the markets a little bit later, but that's certainly encouraging after last year's, we were seeing a minus 26% number. So we really have seen a flip around of the situation here, and that's really good. Second observation certainly is the gross margin. So we are really happy to see the trend continuing from the Q3 into the Q4 with a 25% gross margin, which at the end, leads to a double-digit EBITDA number and then finally, 6% EBIT margin. So also that is significantly improving over where we were a year ago. So that's certainly encouraging. Talking a little bit operationally, what's going on. Also, that is certainly a good moment when we were reopening the mothballed plant in the U.K. in Pollington. And we have mothballed, that's from 1.5 years roughly. And then in the quarter, we've ramped that up again, hiring new people in. What I can report is from a mechanical point of view and technical point of view, this reopening works very well. For sure, it's all new people, 28 people out of 33 are new. So there's a lot of training and we are in ramp-up phase. But it's really good to see that the equipment is doing what it should do, and that's good. And so now it's about a ramp-up to really get this up to full speed. But certainly, after having mothballed and closed plants for a lot of quarters, it's definitely the right signal that we can also reopen a couple of these plants that we have closed. And then finally, on the cash, I mean, that was a priority for us certainly over the last 2 years. And then in the Q4, we were successful in closing the land sale in Warsaw, which definitely generated strong cash flow in Q4 and really helped a step change improvement of our financial gearing, which is now down to 2.7 number. And so we are making the right steps towards the long-term target of 1 to 2x EBITDA. So in total, I think a positive quarter. And let's have a little look on the year performance on Page 4. So what you see here is, first of all, let me start with the earnings. EBITDA of 9% is, from my point of view, is not too bad actually considering that still volumes are 30% lower where they were in 2022. So I think we are managing through and really have streamlined the company over the last 2 years. For me, more important is what we have done over the last 2 years and also especially in 2024. So the first thing, and I come to that a little bit later in more detail, but we've definitely streamlined the company completely over the last 2 years. We've closed plants, taken out costs and really have achieved a completely new setup for the company. Also, you can really see that -- I think that's important, cash flow improved. I talked about the Warsaw, but then also we were destocking significantly in 2024, and that also helps to really improve the cash situation and thus financial gearing after we've built a lot of stock in '23. So we've reverted that effect and are back on normal levels. Next to financials. I think it's also encouraging. We are not giving up on strategy. Part of our strategy is the -- to really drive ESG forward. So what you can also see from the numbers is that we've improved our emissions on the CO2, Scope 1 and 2 by 13%. Compared to the basis year of 2019 when we started our journey, we've more or less already taken 30% of our emissions out per cubic meter. And that is certainly also encouraging to see. Part of that is energy consumption. But then also you can imagine closing plants, concentrating volumes into fewer plants is certainly also helping on delivering on CO2 targets here. So from that angle, very nice to see. And then finally, a new record in safety last year. So we ended up with a lost time incident frequency number of 0.9. That is certainly a leading number in the industry. Two accidents we had to report, still too many. But throughout the year, we are launching a new safety initiative, Zero Harm. And it's nice to see how this is actually really contributing. And what I can report is it's really a cultural element of the H+H DNA, and it's good to see that it's delivering results. And these 2, so it's the CO2 and free safety, that is certainly our commitment as a company. I think overall, we've built a strong foundation. And to give you a little bit more detail of how that foundation looks like, let's turn to Page 5 to give you a little bit of an update of our streamlining initiatives over the last 2 years. So what you see here is really the comparison from '22 to '24. First observation is still, we are operating on a 30% lower volume level than in the record year 2022. So significantly lower sales volume we are faced with. In that environment, and I think that's the first observation I really want to share with you is that we were able to increase our prices by 8% over these 2 years' period. There were many questions certainly around how is the pricing power looking like in a market that is declining that sharp. And I think it's a remarkable outcome actually that we were able to pass on costs and increase prices by 8% over these 2 years, showing that we are successfully operating in our markets. Second message is also there were questions, have we reacted early enough? From my point, we did actually, I mean, in the middle of the year '23, we started to close plants. So we've decided from our originally 32 plants to close 5. Then we've mothballed another 4, reopened the Pollington 1. So it's another 3 that are mothballed going into 2025. But certainly, we've adjusted the network, concentrated volumes into more efficient plants. And then what the outcome of all that is that all the work we've done, we've actually, at the end, built into a new operating model for the company, which we call HOME is the H+H operating model for excellence, and that will be the guiding principle of how we run our plants going forward because what we want to make sure here is that all the efforts we've put into the network that this is sustainable and that we run our network on higher efficiency also long term. And this is not a short -- only short-term reaction, what we have done here over the last 2 years. Third leads me to Germany. So also here, we've used the situation to finally integrate Germany into one company. You know that we were acquiring a lot of companies over the last years. So we really put the pause bracket here and then integrated everything into one company. So today, customers in Germany are only dealing with 1 H+H. So way more customer focused and way better customer experience, but then also the internal processes. We've streamlined. We made them easier. We are working on one ERP platform now since 1st of January. So significantly -- significant changes. And what also goes alongside with that is significant SG&A cost savings. Literally, we've cut the SG&A cost in Germany in half if you compare 2022 to '24. And for the group, this led to DKK 60 million savings within these 2 years, mainly really coming from the German market. In total, 25% headcount reduction. This is 400 people we have to say goodbye to. And with that, actually, I think what is important is, and I repeat myself here, but everything we've done, we've done in a way that this is building a stronger foundation for the future. So that we really drive efficiencies in the company. So when these volumes will come back, and we are very certain they will come back, we're going to see this translating into higher efficiency and thus better results. From here, please go to Page 6, and let me provide a little update on our 3 key markets. Yes. Starting off with Germany, and I'm German, and for me, it's really hard to observe that actually, that really Germany is the -- certainly the worst market where we're operating. And even for all of you who are not Germans, I think you can also read it in a lot of newspapers. It's not only the building activity that is a problem, but it's -- the country is in recession. It's the entire mood in the country. I mean, and that ultimately led to a new election. So the government -- the old government gave up earlier. We had new elections just 2 weeks ago. Brand new is that the new coalition that is forming, they want to come with a big investment program. There's a lot of stuff going on. So we need to see and observe what that means actually. Certainly, the building situation was part of the election campaigns of all parties because there is a target of 400,000 units we need to build in Germany. No one is questioning that. At the end, the former government managed to build 150,000 flats and houses. So you see there's a huge gap actually to really cope with that demand. And now we need to observe how this new government will address it actually. I mean there's a lot of challenges, but we need to really see and observe what's happening here in Germany. But what you really can see is that even in '24, building permits were further declining by 19%. I mean this is really a crazy number and then also impacted our revenue growth in the area. So you see the revenue dropped by another 18% in Germany. So not a good situation. More encouraging when we leave Germany and we fly over to the U.K. So what we see here is the building registrations in the U.K. were fairly flat actually, but we were able to deliver a revenue growth of 14%. So that means we were outperforming the market, winning back customers, working together with new customers and then also increasing the share of wallet per house, which is part of our strategy. So I think it's nice to see that. And then also when I look a little bit about into the moves in the market at the moment, and you know we are working with the big housebuilding companies in the U.K. Certainly, there's positive sentiment about the new government. What they are working on is that they are simplifying the planning system, which is very important in the U.K. so that housebuilders have better access to land that they can develop it quicker and faster. And we hear from literally all customers that there is positive feedback about it, which is driving a positive sentiment into 2025. So I think it's going in the right direction. It certainly could be more, but it's going in the right direction. And we are expecting higher demand into 2025. Poland, yes, last year, 30% revenue growth, certainly the rock star across our countries. The Polish government did, from my point of view, really a nice step with that 2% program coming out of a really like really low building activity situation. This 2% was like a booster, so really kicked off build -- new build again. And what is nice to see even though the program was exhausted early '24, we see there is a long-term effect from it. So when you see building permits, they are sustainably higher than where they were in 2022, and that is giving us good comfort also into '25. We will not see same growth rates because certainly the program was a booster. But we think it will have a fairly stable level into '25, which is actually, from our point of view, also a positive and encouraging sign. Yes, this concludes my remarks, and I will now turn over the call to Bjarne for an update on financial performance.

Thank you, Jorg, and hello to everyone on the call. We will take a short look at the financials. And on Slide 7, you see the organic growth. On the left-hand side, we have the volume growth in the quarter year-on-year, there was a 7% volume growth, and that is despite the decline Jorg mentioned about in Germany. The positive volume development is also what is driving the top line, where we report an 8% revenue growth, of which 6% was organic. And as told, it takes us to around 0 for the full year, just in line with our guidance. On the next slide, there is a slide on the gross margin. And for the fourth quarter, we came in at DKK 164 million on gross profit, leading to a gross margin of 25%. This is more or less on par with the previous quarter. And in the fourth quarter, we did see some stock build as we let the factories run flat out during the quarter. Comparing to the earlier quarters does not make a lot of mean that were impacted by our gas contract, and we had some significant stock movements, which were done in order to improve the net working capital situation. On the next slide, Niclas does a little bit about treasury.

Thank you, Bjarne. Please turn to Page 9. In 2024, our total operating cash flow was DKK 279 million. This improvement was mainly due to the land sale in Warsaw in Poland and to destocking. In 2024, we destocked for DKK 225 million. On the investment side, we spent DKK 131 million. This primarily went into the Borough Green and factory upgrades. Overall, these factors have improved our debt situation. And by the end of the year, net interest-bearing debt was DKK 682 million with a financial gearing of 2.7x net interest-bearing debt to EBITDA. And then over to you again, Bjarne.

Thank you. And on the next slide, we have a summary of the restructuring costs and other special items. In the fourth quarter, we posted the sale of the land in Warsaw. We classified that as a special item as there was a significant profit on that. And also, we had restructuring costs, as earlier announced. In the quarter, we spent DKK 27 million that relates to the restructuring done in Germany. The amount was somewhat lower than originally anticipated, but posted as a special item. And then when you look at the full year numbers, there were the previous gas contracts that was also classified as a special item. So for the quarter, a positive of DKK 129 million and for the full year, a negative of DKK 22 million. And with that, we come to the financial outlook on next slide, the financial outlook for 2025, where we are looking into an organic growth of 5% to 10%. And we are looking into an EBIT before special items of DKK 120 million to DKK 180 million. To highlight a few of the key assumptions and in line with what Jörg previously expressed, we see a modest volume growth predominantly coming from the U.K. And then we do not assume that we see a market recovery in Germany. It has had 2 years with declining building activity, and we don't see that churn in the short term. So -- and then in general, we have the uncertainty around the whole macro outlook, and we try to express that because it is fairly blurry at the moment. But underlying, the markets are in a shape where we know that for the long term, they will deliver significant contribution to us, but we are uncertain around the timing and hence, the guidance of the DKK 120 million to DKK 180 million. So with that, I think we will hand over to Jörg again, who will summarize.

Yes. Thank you, Bjarne. So let's go to Page 12. So a couple of key takeaways. So the last 2 years, we've really used to streamline the company. We've talked about that in many of the calls here. But I think the company we have today is operating on significantly lower cost level. Still volumes are low, but we've built a new foundation for the company. I think also throughout the last 2 years, we've managed the cash position well, especially with the sale of Warsaw really has improved significantly and then we've improved gearing. So I think after these 2 years of streamlining, I think we are in a very better position than where we were a year ago actually. So I think also that is something we can give it a tick. So with that, actually, what's important for us now going to 2025, and then you heard Bjarne also talking about the guidance. So we're not expecting a lot from the market actually. So that is where we have a cautious view on where volumes will go. So it's not that we are sitting here in a position where we expect these markets to turn completely. But we have a stronger foundation. And for us, it's important that the shift goes back from streamlining towards our long-term strategy, which is moving towards customers, working on growth opportunities, again, making sure we're improving our plant performance and at the end, going back on a profitable growth plan. And I think that is an important mindset move also for the entire organization. And with that, we are now ready to take your questions. Thank you.

[Operator Instructions] The first question is from the line of Sebastian Grave from Nordea.

So I have a few. I'll just go through them one by one here. So first, on your guidance, I really struggle to get my head around it, to be honest. So it seems that your guidance implies a margin squeeze from Q4, which is a seasonally small quarter. And to me, at least it doesn't square with the working assumptions of modest volume growth, pricing discipline and restructuring effects from last year. So could you maybe sort of expand a bit here? What am I missing? And could we sort of bridge the current EBIT margin of around 6% to the implied EBIT margin of around 5% for the full year 2024 -- '25, sorry?

Sebastian, thanks for the question. But let me start a little bit about and talk about challenges actually that are reflected in that. So first is in the U.K. And I was talking about the ramp-up of this plant in Pollington actually. So the situation in U.K. is still that we are sitting on very low stock level, leading to a situation where the supply chain is not super efficient actually. So there's still distribution costs we're having because we need to transport products from one to the other. And then the ramp-up takes some time actually. So as I said, 33 people we've hired, 28 of that -- 28 are new out of 33 crew actually. And so that is something that is impacting the earnings, and we're going to see that improving throughout the first half of the year, but it's certainly a situation that we're having. And then the second, I mean, I was talking about Germany. So for Germany, we do not have any expectations for 2025. There's also some areas where we will see even lower volumes than in '24. So we are very cautious here. And that leads to a situation where the plants are not running efficient actually. So there's a couple of plants we're only running one shift, which is certainly not an efficient state actually, right? And so that is basically impacting it. And Bjarne, I don't know if you want to add a little bit more color to what that means in numbers specifically, but that is actually describing the -- still the challenge we have actually.

I think in a nutshell, you can say when you compare the nominal EBIT for '24 to '25, we are moving forward. And when you take, let's say, the one-off effect from last year, you see we are bridging that. But then it also reflects that we are seeing more risk than opportunities based on the -- particularly on the situation in Germany and then the set known effect from the continued ramp-up on the Pollington 1. But it sits, let's say, on the gross profit level. I would say on the fixed cost, things are, let's say, fairly under control. We have done the restructuring and that part we have, let's say, the needed visibility on. It is on, let's say, the gross profit level that we are lacking the visibility.

Okay. But just to understand, so I mean, comparing to last year, I think if you have to compare last year's numbers with 2025, we have to look at H2, right, because we have a normalized cost base. And then, I mean, looking at H2 earnings, which was around DKK 90 million EBIT, now you've got DKK 120 million to DKK 180 million for the full year '25. So you're actually moving backwards, so to say, on profitability. Isn't that the right way to look at it?

I would say that's where we say -- we extrapolate that, then we put in a number of risks we see both based on what we hear, but also what we see the customers do. Now we have a 2-month sample. So let's say, in the marketplace, you see, let's say, the positive move and the positive spirit is good, but we also need to see it materialize. And that's where we have the uncertainties in particularly around Germany, and that's the basis for our guidance.

Okay. That's fair. And just -- I have one more question. I'll go back in the queue after. So in terms of ceasefire in Ukraine, I know that you guys have been associated with the anticipated rebuilding efforts in the country. So maybe you can help sort of expand on this optionality. What are the kind of scenarios that you potentially envisage? And how do you prepare for such scenario of a ceasefire and rapid demand?

Yes. So first of all, I think following the world press, I think it's fairly early question. So we're sitting here in an observation mode. But certainly, it's -- when you look at opportunities that might come up actually, certainly, there's a rebuild activity and that will happen. The question is distance from plants to those areas actually. So to give you an idea, the closest plant we have in Poland to Kyiv is 500 kilometers. So it's fairly long distance actually. So we are sitting in an observation situation. If there's opportunities, we would love to support that, but it will not be a game-changing situation for us.

The next question is from the line of Kristian Tornøe from SEB.

A couple of questions. So first of all, special items, what do you expect for 2025?

We are not planning with any special items for 2025. As mentioned, we did not use all of the special items compared to what we had indicated. We did that in order to safeguard the Project One go-live here in January. So smaller restructuring we would take as a part of what is included in our guidance. If there are larger significant items, one-off events and so on, we still have the liberty to post that as special items, but nothing planned for this year.

Understood. Then my second question goes to pricing and sort of along the same discussion as what you just had on assumptions for gross margin. So it's clear that your guidance assumes a more cautious gross margin than what you saw in the second half of the year. Yet you guide this 5% to 10% organic growth, saying it should be driven by price increases. So can you elaborate what have you done so far on prices? And what do you expect to do later in the year?

So, the price increases is really based on input cost development. That's core principle, right? And then market by market, so we've implemented price increases in the U.K. 1st of January. And there we are on annual contracts. So we are passing on the inflation that we are seeing to the customers as always actually. So that is executed and in place. Then Poland is more on a monthly adjustment curve, but with the right trend actually. So we are in line with passing on inflation. And then the last bit is Germany. Certainly, it's a little bit more challenging in that environment actually. But also here, we are faced with inflation. And so we've announced price increases, and we are increasing and implementing that. Then there's for sure project sales and it's a regional thing, but we need to pass on inflation that we are also having in Germany. And what we've done over the last 2 years, despite volumes declining, 8% price increases, we're going to continue that also in 2025.

And just a follow-up on Germany because you also highlight the challenges in this market. How are you seeing the competitive discipline, especially on prices? Is there any deterioration in the discipline? Or does discipline continue to be good?

I think overall, and this is exactly why I brought this number up over the last 2 years. And that is a picture we could see in all our markets actually. There is discipline, and I think there's a need, especially in that low volume situation. I mean it's changed enough that these plants are not fully utilized actually, right? I mean that's our big challenge. No one in the industry can afford a challenge that we are paying for the inflation we get from the raw material or the energy side, right? And I think that is a principle we were observing over the last 2 years, and it's also what we're seeing into 2025. The big change really comes from the low utilization of plants. And you can imagine running a plant with one shift is certainly not a sustainable setup.

That makes sense. Then maybe just to follow up on the discussion on potential if and when Ukraine is going to be rebuilt. So you mentioned the challenge of distance from your plants. But it's also my impression that you are running your Polish plants at fairly high utilization currently. So I mean, would you really have any material volume available should a market in Ukraine open up?

I mean also Poland is significantly below the volumes we were historically selling. I mean it recovered, but it's still significantly below. So there is spare capacity for sure. The key question is really where to sell it and where to ship it because distribution cost is an important element of our business, right? So if we find markets around the plant for our products, that is certainly what we always give the support actually, right? So it's really about making sure we serve local markets actually, right? And if there's on top of that opportunities in Ukraine, then we're going to find that and there would also be a spare capacity actually. And then we're also driving with the operating model, we are driving further efficiency in the plants actually, right? So there -- we will see higher volumes actually coming from that as well.

Understood. Then just my last question because you mentioned that the new German government has indicated they want to increase investments and ensure that the stock market is taking that rather well today. I know it's a slightly unfair question. But if these investments materialize and it stimulate the German economy, when do you think you could at the earliest see an improvement for your market?

It's a really tricky question actually, but let me -- so the good thing is actually -- I mean, the whole discussion was about how do we finance all the challenges, right? And there's challenges on infrastructure. There are certainly challenges for all Europeans on military and all that. And how do we face these challenges with a given household actually without making additional debt. That was the key question. Now with the announcement and all the discussion is, okay, if the government goes into more debt actually and financing big part of these changes through that, then it might be -- it might lead up to a situation where there's also then more money for all the other stuff actually. And that is for me, the encouraging part actually. And now it needs to formalize. I mean, this government, first of all, needs to get together actually, then this Mr. Merz needs to be elected. So there's steps to go, then they need to get going. Honestly, for '25, I do not expect a lot actually. But what -- from my point, also, the whole move can do is that also the mood is changing actually in the population, right? Because I'm German. I mean, I'm in this environment literally all the time. And I think that it really can change the mood and the confidence in the country actually. So it's an underlying mood topic as well. And I think it's positive actually. It's going in the right direction now.

The next question is from Peter Sehested from ABG.

I have 3. The first one is on the top line or the organic growth guidance. Could you just elaborate a little bit what it takes to get to the low and the high end? That's the first question. The second question is on the SG&A that you commented on earlier. I just wanted to understand, irrespectively of whether you do 5% or 10% organic growth, we should expect the SG&A to be more or less the same. And the third question I have is, what's your sort of top of the agenda items for '25?

First one, might take the strategy part on that. If we look at the -- and by the way, on the top line, a 5% to 10% will what we see now be a mix of price and volume. If we look at the volume increase that will predominantly be driven by the U.K., where we have positive communication from the housebuilders. Let's see if they can walk the talk. We hope they will do that. And then as mentioned, we need also to get the ramp-up curve done in a proper way, both in order to supply the actual demand, but also in order to strengthen our stock position in order to be able to service the customers better and with lower distribution costs. On the price side, Jörg went through the market, there are different dynamics. So the very spot like part like Poland and to some extent, Germany, that is something where prices are adjusted on a much more short term. So this is our best indications based on what we see in coming through on the cost side as well. So I would say moderate growth on the prices, but we definitely need something to cover the inflationary cost that we see.

So your midpoint of 7%, that's roughly 4% on price and we've seen price inflation of 4% and then 3% of volume, of which most comes from the U.K.

Yes, that's, let's say, a well-profound model you're looking into chance by. On the SG&A side, remember, we spent quite an amount on SG&A -- sorry, on restructuring last year. Part of that was related to SG&A, and then we see a normal, let's say, inflationary pressure on that. So we do not foresee that the growth rate itself have a direct link to the SG&A. So on the fixed cost side, we have the needed visibility. So it's a matter of, let's say, how much we can squeeze out of it. So you should not expect big fluctuation related to the top line. And on the more strategic approach to it.

I think your question was what's on the agenda, right? So really, the first thing is U.K. supply chain because it's positive that we see demand increasing. So we want to make sure that we can service that demand in a really proper way. So really managing this ramp-up in Pollington in a good way, building up stock again in the U.K., which is important for service. So that is certainly on our priority list. That's the first thing. And then Germany, we need to be a little bit -- stay a little bit reactive here on seeing where these volumes going and what the situation is. So that is something where we are still managing very, very short term to react to the German market. And then overall, and that is what I said, it is for us, the mindset shift for the entire company of saying because when you do streamlining for 2 years, it's a very internally focused thing, which you need to do actually. But we believe it's the right time to go out there and find new growth opportunities, get closer to the customers and then improve plant performance. That is more the long-term thing. But we need to go back to our strategic growth path actually. And that is certainly what we -- the shift we want to make starting into the year 2025, even knowing that the markets will not just boom, but we believe it's the right time after 2 years of streamlining to change that.

Okay. So -- and then these particular steps in Germany to be more on the forefront of growth pockets, et cetera. Is there also sort of political maneuvering here? Or is it mainly good old school sales guys visiting customers and drinking coffee that kind of stuff?

Actually it's on all levels, if you want, right? So for sure, I mean, on the political level, it's important. I mean we are part of all these associations, right? So sitting in roundtables. I mean -- and we have answers actually to improve the situation, right? Also with our products and then the systems. And there's a lot about discussion about standardization of housing, right, and making it more simple, faster. We have the right products and solutions for that actually. So that is certainly part of that, especially now when the new government starts working actually, right? But then it's also on the sales level. You can imagine restructuring organization like that is doing something with the organization, with people in the organization, right? And that is important that people get this change actually, right, from an internal perspective and do what they -- what we all should do actually, right? And that is being there for our customers and yes, producing and selling fantastic products to build houses, right? That's our purpose.

[Operator Instructions] As no one else has lined up for questions in this call, I will now hand it back to the speakers for any closing remarks.

Yes. Thank you for everyone for participating in this earnings call this morning. I wish you a nice week. Let's see how the geopolitical situation in the world and in Europe is developing. Yes, special times definitely. And then I'm looking forward to see some of you throughout the afternoon. Be safe. Bye-bye.