Nederman Holding AB (publ) (NMAN) Earnings Call Transcript & Summary

Welcome to the Nederman Holding Q4 2024 Report Presentation. [Operator Instructions] Now I will hand the conference over to speakers, CEO, Sven Kristensson; and CFO, Matthew Cusick. Please go ahead.

Thank you very much, and good morning, everybody. Welcome to this conference call on Nederman Group's Q4 results. Concluding that we had a solid profitability and a very strong cash flow during the last year, we have also strengthened our position in a very uncertain macro environment. We have improved our market position in what we can call structurally growing industry, say, food, batteries, other different technologies. We have made significant investments in manufacturing and logistics to enhance efficiency. We have opened a complete new facility for RoboVent in U.S. in Detroit. We have extended significantly the capacity at Thomasville for Duct & Filter. We have increased our capacity also in MCT, and we are continuously doing so. We have the inauguration of Helsingborg new facility, which gives us very good distribution, logistics and manufacturing capability, but above all, an innovation center that could be the center for 14 local hubs with competence centers around the world. So we have accelerated our innovation. And that means that we have also accelerated the pace of product releases and upgrades. So a relatively small but strategically important acquisition of Olsen that will further strengthen our MCT division with the capability of in an efficient way, help our customers with collecting the information and sorting it and being able to, in an efficient way, use the information as well as create reports for different authorities, et cetera. When it comes to shareholders' favorite subject, dividend, we have had the highest ever net profit. So the Board of Directors proposed a dividend of [indiscernible] of SEK 4 compared to SEK 3.95 last year.

If I move on to some of the key financials for the quarter and the full year. If we start with orders received, it was a little bit of a varied scenario between the divisions. We will come back to the divisions in detail a little bit later. The full -- for the consolidated group, the quarter 4 order intake was just over SEK 1.4 billion, which is a decrease of around 4.8% currency neutral versus quarter 4 of 2023. You can see from the charts on the Slide #4 that the large chunk of the decline is organic. Currency is having less -- much less effect during 2024 overall than in previous -- than in the prior year. Orders received, yes, SEK 1.4 billion for the quarter. It is the lowest quarter we've had for some time, and that we will come back to the backlog being a little lower going into 2025 than it was into 2024. Full year incoming orders were SEK 5.78 billion versus very slightly over SEK 6 billion for the full year of 2023. That's a currency-neutral decrease of 3.3%. When it comes to sales, this was a very strong quarter for Nederman. It was our second highest sales quarter ever. All 4 divisions increased versus the same quarter in 2023. In total, we did SEK 1.62 billion in sales in quarter 4 versus SEK 1.501 billion in 2023 Q4. That's a currency-neutral growth of 7.6%. For the full year, we achieved exactly SEK 5.9 billion. These numbers have been audited. So it isn't us just looking at decimal points. We get to SEK 6.1 -- that's versus SEK 6.188 billion last year. So it is a clear reduction. If we see the organic reduction is SEK 319 million, if you look at the chart on the bottom right of Slide 5. Of course, anyone who's deeply into the numbers sees the vast majority of the decrease is in the much more volatile Process Technology division, which we will come back to later on as well. When it comes to profitability, it's no longer a tease. We had our best profit after tax ever. But if we start a little bit higher up and look at our adjusted EBITDA, that was SEK 185 million in quarter 4 -- SEK 185 million in quarter 4 of 2024, up from SEK 172 million, which gave us a margin of 11.4%, which was exactly in line with Q4 last year. Profit after tax, SEK 10 million higher at SEK 87 million and earnings per share in the quarter, SEK 2.49 versus SEK 2.2 in Q4 2023. For the full year, we were up at SEK 708 million. That's very slightly down from 2023. Margin up 12% now versus 11.6% in 2023. And earnings per share now for the full year, SEK 9.83 versus SEK 9.71. So we're pleased to continue the upward trend there. And Sven already mentioned that following that increase in earnings per share, the Board has proposed a dividend increase to SEK 4. Sven also mentioned the cash flow was very, very strong. We've had a very good year overall and quarter 4, in particular, was very good. We've continued our focus on managing cash flow. It's -- it doesn't just happen on its own is we managing our accounts receivable very well, and we have had projects in some divisions to try and maintain and actually decrease the levels of inventory held. So among other things, those are contributors to the fact that we had a SEK 245 million positive cash flow from operations in Q4, up from SEK 212 million, which was very strong already in 2023. The net debt, as we can see on the right side of Slide #7, that is now at 1.332 -- sorry, at SEK 1.697 billion versus SEK 1.332 million 12 months previously. Must be pointed out that, that increase is completely connected to one of my least favorite International Financial Reporting Standards, IFRS 16, which relates to leasing. We -- as you can see on the chart, the proportion of debt that related to leasing increased significantly in Q3 when we went into the new premises in Helsingborg and RoboVents Detroit site as well. But we see a clear decrease in debt. We've had a very good cash flow, and that's meant that we've decreased debt versus 12 months ago. If we now move on to the divisions, we start with Extraction & Filtration Technology.

Yes. Extraction & Filtration Technology, as you probably remember, is our largest division and typical customers are wood welding, composite manufacturing, general dust application. Here, we have seen as well as in -- we will come to that, the large orders have been fewer in the quarter. And we attribute that all to the uncertainty in the market. That's a good pipeline, but there is a hesitation to take decision. When it comes to upgrade aftermarket product sales or midsized solution, which is more business as usual, we can see that we have an increase, and we see here that we take market share. The backlog was good when we went into Q4. So we had a good invoicing in the quarter. So it was the highest sales ever for a single quarter, which is important. Again, which I mentioned, the aftermarket continued to perform strong. It's been a focus over the last few years to further enhance and build our aftermarket organization. If you look at the different regions, it was only U.S. that had any large orders. One was from the newly acquired Duroair and the others was RoboVent. It was welding and EV batteries. When it comes to European side, we had a stable order intake, and it was a solid base business. And mentioned before, none -- no really large order. We've seen wood related to mainly the construction industry and the automotive, we've seen uncertainty in the decision-making. We have seen a bit lower demand in some markets and especially, I would say, not only including but especially Germany, they are not -- we can see all the indicators, industrial indicators that they are a bit depressed in the German market. We'll see. It went up slightly the last month. So we'll see. We increased our order intake in Asia, APAC not big orders, but midsized orders, defense, food, automotive, the normal suspects. We do saw also that our activities in building a stronger sales organization in Southeast Asia is paying off a little bit here now. We have also seen some activities in the division in India, where we actually landed a significant order to a leading aircraft equipment supplier. So again, the key activities, relocation of offices and warehouse to new facilities in Helsingborg and installation start of new warehouse management system. It's gone extremely well, and we have now a fully modern operational manufacturing and distribution center. We did launch some new filters well, the model of filter system, MFS with nanofiber, significant improvement in performance. We have launched 6 upgraded versions of mobile HVA and ATEX models that are used. The ATEX is something that you are using special in combustible dust environments. And we also launched a new PAM vacuum unit in North America. So there's been activities all around for innovation, manufacturing moving forward.

Going further financials for Extraction & Filtration Technology. The order intake decreased currency neutrally by 1.5%. SEK 643 million was where they ended the quarter. Total sales, as we mentioned, a record quarter ever, SEK 724 million is 5% higher than a very strong quarter 4 of 2023. Adjusted EBITA also up accordingly, 12.7% is SEK 92 million for the full year. Oganic growth on order intake, very slightly negative, but currency neutral, 1.4% up. Total sales, 3% currency-neutral increased to SEK 2.646 billion and the highest ever adjusted EBITDA for the division, SEK 352 million is 13.3%. Then we move on to Process Technologies, Sven.

Yes. Here, as you know, we are working -- we are world leader in textile. We are world leader in smelters for recycling of material like lead, like aluminum, like steel, et cetera. And it's mainly large orders, large supplies. And we've seen a few major orders. There's been a continued uncertainty in the market and the slowdown in some of the cyclical industries. We did have fewer orders received this Q4 than the very strong Q4 in 2023. We did have an increased sales invoicing because we delivered the final delivery of several major projects. If we go to the 3 different customer categories, starting with textile and fiber, that's a continuous overcapacity in spin mill, and there has been a low demand. So we were behind Q4 2023. We have a long-term positive outlook. We have a market-leading -- we have a definitely market-leading offer with our digitalization, new products and also where we have started to get a strong position in the related nonwoven area. So we continue to take market position. And we've seen the energy saving new fan system that we launched at ITMA 2023 has now sold more than 200 units. So we are making the world a little bit better in the textile industry by saving energy. In foundry and smelters, there's an underlying recycling trend, and that is very positive. We need to recycle more aluminum, lead, et cetera, and that will have a long-term positive impact. However, the orders received decreased when only very large orders was -- one very large order a year ago was launched. We have had very strong project execution, and that means that we have a solid increase and solid profitability. Customized Solutions, orders received increased, including orders from the U.S. chemical sector. Sales were lower than same quarter last year. Again, key activity, launch of new sensor packages and digital analyze tools for filtration system that improves the possibility to optimize operation and extend the equipment service life. We have intensified development of remote monitoring and IoT-based business models and by that, unlocking new revenue streams from the service and aftermarket. Very important in this turbulent time where we have a steady flow of orders in upgrades and service to existing equipment. We have invested in new sandblasting paint line in the German plant, and that is giving increased production capacity and lower manufacturing cost, increasing our capability of being competitive in this market.

As Sven mentioned, orders received were lower in the quarter, so 23% lower currency neutral than the same quarter last year is SEK 368 million. Sales, however, slightly higher than the same quarter last year, 3.4% up, which was -- took us to SEK 452 million and EBITA then increased in the quarter 4 versus the same quarter 12 months ago, SEK 50 million in EBITA is 11.1%, which is very, very strong for that division. What you can see on the chart on the top right-hand side is maybe for those of you who don't fill in a spreadsheet every time we release any financials, you can -- it makes it a little easier to follow how the backlog has developed for the division. And we can see it is a -- it's lower than it's been for any time in the last couple of years. However, it is still well over SEK 800 million mark. For the full year, the financials for the division, 18 -- sorry, 19% reduction in order intake and a 22% reduction in sales. They are -- is significantly down. Profitability, the margin increased, however, to 11% from 9.7% and SEK 182 million in adjusted EBITA for that -- this division in these economic conditions is still something that they can be proud of. If we move on to Duct & Filter Technology, Sven.

Yes. Duct & Filter here, we supply ducts and filter media. And the development during the quarter has been very good. There has been a strong improvement in orders received. We received several large orders from manufacturer of EV batteries in the U.S. market. But we also in EMEA and APAC had higher orders received compared to the same quarter 2023. The sales -- the invoice sales increased also very well and full year 2024 saw new records in orders received, sales and profitability. So if we go to Northam, the duct and manufacturing, orders and sales in the U.S. grew strongly compared with the other quarter that we compare with in 2023. We had 3 very large orders to battery manufacturing. Northam now with delivery within 24 hours continue to drive orders volumes in U.S. We have installed new pipe cutter in Thomasville. Robots for the warehouse automation are being configured and go live during February. And in Menard, we had a slightly lower order intake, but we had sales on a solid level and again, very good profitability. Other activities, beam objects, we have introduced that, and it was presented at the battery trade show in Barcelona. And we have so far already got 7,000 downloads since the launch in May. Several projects have been initiated based on this. So again, digitalization, working together with other suppliers is a way forward for us and the way working we have embraced over the last few years. Project is underway for a 2,400 square meter extension of the production and warehouse facility for Ducting in Thomasville. Construction is scheduled to commence in February 2025. And if you remember, we have already increased one part, and that's where we are now introducing the robots in the distribution center, but we are now also extending the capabilities when it comes to large-sized duct work, especially for EV batteries, but also for special like smelters, foundries, et cetera. So we are becoming more and more a complete supplier of duct work for demanding environment.

When it comes to financials for this division, as Sven has already hinted at, they were very good in the fourth quarter, 15% currency-neutral growth in order intake to SEK 211 million. 13% increase in sales was -- took us to SEK 229 million, and that led to an adjusted EBITA of SEK 38 million versus SEK 35 million in a strong Q4 last year. SEK 38 million gave us 16.5% EBITA margin. For the full year, 5.7% growth in order intake and 6.8% growth in sales, SEK 893 million in revenue for the full year, up from SEK 839 million in 2023. And the adjusted EBITA for the year that's just finished was SEK 175 million or 19.6%. Monitoring & Control Technologies, Sven.

Yes. We increased the orders received and especially Gasmet saw a strong demand in Asia Pacific, especially in China. We have a large opening order backlog that contributed to record sales for a single quarter. If we go to the regions, EMEA, we had a slight increase in orders received, and EMEA was the strongest region in terms of sales due in part to the improved production capacity in NEO monitors. In Asia, orders received increased sharply in Asia. We had a strong development from Gasmet, a large number of orders were booked, as I said, mainly in China. Sales in APAC grew as a result of Gasmet successful deliveries. A lot of the new developed products have gone into the market. In Americas, orders received decreased somewhat due mainly to timing of major orders. 2023, we had one extremely big for the division, big order, and that was not fully compensated for in 2024. But there are high performance in all 3 business units, and we have had increased sales for the quarter. The key activities for the quarter has been, among others, the acquisition of Olsen and that specialized in emission reporting. So we're not only measuring, we are now able to help our customers do a good reporting out of collected information. We have inaugurated the China technical center in Suzhou with product, service and sales training, but it also gives us the possibility not having to send all products back to Norway or to Helsinki when there's service and upgrades having to be done. We believe that will further enhance our sales in the Chinese market. We have continued our investment to increase the NEO monitor manufacturing capacity, and it's still ongoing and will be so for the coming 2 quarters. We are preparing the launch of next generation of Insight product from our operational technology center. And we are also preparing to increase our capabilities and manufacturing sites in our AFS part of the business located in Boston.

Financials for Monitoring & Control Technology. Order intake grew strongly, 10.5% versus Q4 2023, took us to SEK 197 million and sales, 19.3%. As Sven mentioned, it was the strongest -- the record quarter, SEK 241 million in sales. led to an adjusted EBITA of SEK 47 million or 19.5%. For the full year, currency-neutral growth in orders, 10.7% sales even increased even more 13.2%. Sales of SEK 824 million led to an adjusted EBITA of SEK 144 million, which is 17.4% for the year. So the outlook, Sven.

Yes, as said before, it's not easy in these times. It's never easy to have an idea on the future, especially not in these times. But if we take it short term, our order backlog is going into 2025 with a solid, strong backlog, but it's lower than 12 months ago. If we look at the external factors, including geopolitical and economic uncertainty, increased protection, it is impacting customers' investment decisions, and we will probably have some turbulence in the coming 2 quarters. But even if the performance of our divisions is largely positive, there is a risk that these external factors will continue to impact customers' investment decision in the coming quarters. If we look at the long term, our base business and strong digital range enable us to assert ourselves well in the current market. We've seen that. We are taking market share. Nederman have shown a clear ability to increase sales in industry with solid structural growth. Even if industrial investment level could be temporarily dampened, the long-term potential remains. And in a world with growing insight into the damage that does to people, Nederman with its leading industrial air filtration rank has a key role to play and good possibilities for continued growth.

Just very briefly, the financial calendar for upcoming quarters. The annual report will be released on the 18th of March this year, so the 2024 annual report released on the 18th of March. The quarter 1 report for 2025 will be released on the 25th of April. 4 days before the Annual General Meeting, which is on the 29th of April here at our new Helsingborg premises. The interim report for quarter 2 will be released on the 15th of July and the quarter 3 report will come out on the 23rd of October 2025. And with that, I think we can now open up for any questions that people listening may have.

[Operator Instructions] The next question comes from Johnny Jin from CB.

I want to start a little bit on the demand side of things. And you mentioned that Europe and EMEA is on the softer side. I just wondering if you could elaborate here how the demand looked during the quarter? How was the situation in October, November and then December? And then also if you could say something about how January was? Was it a normal January, so to say? Or was it anything that stood out? Can you comment something around that?

In the fourth quarter, it was -- I don't think we can say that there was a big change throughout the quarter. It was a little slow December perhaps was one behind expectations where we -- and we ended up SEK 1.4 billion in order intake. We would have liked to have been a few tens of millions of Swedish kronor higher than that. And so that did slow down. When it comes to January, we don't want to talk too much about what's happening in the future. But I think our take on January is probably very similar to what you're hearing everywhere else around the world. Anything to add on January, Sven?

It's more normal and more expected. What you can see is that the turbulence that is created by all kinds of games played, of course, create an uncertainty and that will have an impact. And you've seen that, that the large orders are you have a prolonged discussion and decision period, whereas the other business is going as normal, I would say.

I think that's the most important comment here. The underlying business is still reasonably solid. It's the larger orders that are dragging at the moment.

Okay. That was helpful. And then going into sales a little bit. The growth is obviously strong here in the quarter. But looking at the EBITA margin, it's flat. So could you comment something around that? And also going into 2025, I understand that the outlook is uncertain. But in a scenario where volumes come back, can we expect an upside on the margin from here? Or is that fair to assume, would you say?

If I comment on the quarter, what we can say is there was a clear shift. Yes, it was a very good revenue quarter. And you're right, in terms of absolute margin, it wasn't -- in percentage terms margin, it wasn't a big increase. That is to do with -- it's always the easiest answer, but it is a mix. We did -- and we were flagging for this little in extraction and filtration technology, they had more solutions business, which has a slightly lower margin. We were also still -- if we take, for example, the Helsingborg site, we were moving from one site to another. So we were with 2 level -- fixed 2 premises and all of the costs that are associated with that. When it comes to looking forward and if you see an uptick in the revenue, then the answer to your question is yes, you ought to see an increase in margin very clearly. From -- we work with customer pricing, of course, but the main thing is our efficiency in our own operations ought to be clearly better. And we can see this already. We have a better flow through the factory in Helsingborg, the one in Thomasville in the U.S. for ducting and then in RoboVent up in Detroit as well. There's clear synergies from example, RoboVent was 3 sites that was moved on to 1 and with a good solid production flow. It makes things...

In Helsingborg was 2 production sites.

We were driving back and forth across the road with trucks, and we were working in a site that was perhaps not optimal given that it had -- it was had routes from 80 years ago. Now we have a new -- brand-new site designed in the way that we wanted to with the layout that we want. So yes, you ought to see improvements in profitability there.

I think it's fair also to say that with all the activities, both Thomasville, Helsingborg, U.S., there has been some extra cost. Also, you have NEO Monitors, not relocation, but extension and so on. So we have invested in efficiency during the last 6 months.

That was clear. And then just one final one from my side, and I want to zoom in a little bit on the Duct & Filter segment. It looks like the EBITDA margin there took a step down here in the quarter, both year-on-year and sequentially. Can you elaborate a little bit there to help us understand, so to speak, this a little bit better? And then how we should view the Duct & Filter margin going forward? I also noticed that you mentioned some large orders on the battery side there. And if you could say something about the margin profile on those orders as well, would be helpful.

Yes. What you can say is Duct & Filter -- if you talk about the -- we're talking mainly about the ducting here is where the big change in margin is. We've seen an improvement on the filter side actually in margin despite revenues going down, we've driven margins up a little bit, and that's to do with a little bit smaller improvements in operations. When it comes to Duct & Filter, there is a finite amount of what you could call base business smaller projects. Then you come up into these very interesting areas like EV battery plants. And these EV battery plants involve more different types of ducting, different sizes of ducting, some heavy gauge ducting as well as the regular quick fit ducting. The overall projects and those in percentage terms are somewhat lower than other business that's done by ducting. But clearly, on the bottom line EBITDA, I always like to say we don't pay dividends out of percentages, you pay it out of money, and we're looking to increase the bottom line. Nevertheless, there are still things that we think we can do better in Duct & Filter. And this is why, for example, we're investing more into the factory there to be able to improve the efficiency in the production of -- is actually largely related to the heavy gauge ducting this time around. Sven, anything to add to that?

No, I don't think so. No.

There's more to come if we handle this successfully in the further development of the operations in...

The next question comes from Lina Blume from Handelsbanken.

Lina Blume from Handelsbanken here. My first question is related to order intake that came in slightly below what was reported in Q4 last year. And you mentioned that the order backlog is somewhat lower in the beginning of 2025 compared to the end of last year or beginning of 2024. How should we interpret this in terms of sales development for the first half of 2025? And if it's particularly in Process Technology, where we might see lower sales development or maybe also in Extraction & Filtration Technology?

The majority of the -- if we talk backlog going into the new year into 2025, the majority of the drop versus 12 months previously is Process Technology. That is the vast majority of that. In terms of sales, that Process Technology is -- they have -- we have a good recurring business, and we've grown the aftermarket business very nicely now. And you see that -- that's what you see when you see the margins really going up is more aftermarket business, sometimes more profitable projects. What we could say about the backlog going into this year, it's a little bit different in nature in the fiber and textile business typically has slightly lower margins than the other 2 business units in there. And based on the current backlog, our anticipation is that of the sales in the first part of the year, we will have probably a lower portion of fiber and textile. I'll let you read into that what you what you think. Extraction & Filtration Technology, I don't know if you want to add any more Sven, but they were still -- they were lacking a few large orders. There are some lots of quotations out there, but they were still lacking some larger orders as well. But you see that even if it was down versus quarter 4 of 2023, Extraction & Filtration Technology was not too bad on the order intake, quite a strong base business. There is going to be some volatility and there is going to be some delays on decisions, but there are -- and there are lots of interesting projects out there.

I would put it like this. There is a very strong pipeline in the divisions. The turbulence makes it very difficult to say that it will happen this week, next week or in 3 months' time when the decision is taken. I doubt that there will be a situation where we will not see a continuous demand. But the geopolitical and macroeconomic situation, it's so volatile. People are so nervous and thinking about should we do it now or should we wait? It's a little bit almost like should I stay or should I go now? It's what they are doing. So I can't say, but we have a very strong pipeline. So, having said that, I think we will have a roller coaster ride the coming 2 quarters.

Perfect. And a bit of a follow-up on the comment on market volatility. Your outlook appears to be more cautious compared to previous quarters. I believe that you have had a cautiously optimistic outlook in the last couple of quarters compared to the short-term uncertainty that was mentioned in today's report. Should we interpret this as the outlook being currently not as good as it has been previously? Or how should we interpret this?

No, I don't think so. Maybe we thought it quite boring to have the same sentence every quarter. We are still cautiously optimistic because we see that our new offers. As you have seen, we are launching new products. We are receiving interest from our customers. We are releasing products that are significantly saving energy in line with all the needs for the future. So we are optimistic in that sense. What is disturbing is, of course, the turmoil you see around the world, are there going to be tariffs or they are not? The total effect is not going to be that significant anyway. But again, uncertainty creates a situation where we don't know when decisions will come. So that's what we mean. We are still very optimistic in our position in the market because we have the leading product. Although if I go back to the small acquisition of Olsen makes another statement. We are the only -- we are the true clean air company. We're the only one that can capture, filter, measure and also create the report for our customers. We are the clean air company, and we've seen a continuous growing interest for our strong offer, then timing is worse than ever, I would say, in what's going to happen here. But we are very positive when it comes to the pipeline we have. So yes, let's -- if you want to put it that way, I would say we are cautiously optimistic for the future. It was a long answer, Lina.

Sounds good. No, it was helpful to get some more color on that. And then another question. You frequently mentioned EV batteries as a key growth area in this report. However, there has been some concerns about price pressure in that industry. Are you experiencing any increased competition in the EV battery space? And have you seen any indications of slowdown of demand in that space?

We are very late in that since it's been mainly -- it's been some of the manufacturing, but very much it's the duct work we've supplied some filters we haven't seen it. It's been mainly in the U.S. we've been active here in this. And so far, we haven't seen an enormous downturn, but there are some revisions of -- Ford had that 6 months ago revision of some of their investments, et cetera. But it's not only EV batteries. What -- why we say it's interesting, what happened is that we have through, which are large plants, we have come into the specifiers and with BIM objects and with our solid performance in delivering, we have been considered a reliable partner for large installation. So we believe, and we have already seen it that, that will also spill over to other areas like large smelters, large foundries where we have a solid position with PTs deliverance. And we see that we are now becoming more and more known in the specifiers side, and that includes our own dimensioning tools that makes life easier. It includes linking up to beam objects, et cetera. So again, make it easier to do business with Nederman, and we have, by being so successful in EV batteries in U.S. shown that we can handle larger projects. Was that an understandable explanation?

Yes. Perfect. And then maybe if I may, one last question from me. Monitoring & Control Technologies saw strong order growth in APAC and particularly in China. Could you provide some details on demand dynamics in China and what is driving this growth?

There is a demand for measurement technology. There are rules, regulation. It goes from everything on measuring hydro content. It is about all kind of specific areas. And we are not the only, but very few that can measure to a level that some of the new requirements demand. And there are not really Chinese -- yes, there are Chinese competitors, but we have a situation where we are absolute technology leaders. And that helps us. So we have growth with our newly developed and newly launched -- recently launched product, both in Gasmet and NEO. And we are now helping and supporting that because one of the weaknesses we have and especially have had is that service is something that could be -- it takes time if you have to ship the equipment to Norway or to Finland for service. Now we have opened up the capabilities, and we are continuing to train personnel and strengthen the position here in Suzhou. As we have done in the U.S. market where we 2.5 years ago, opened up our service office in Houston, and they started 1 or 2 persons. They are now 12, I think. And that also pushes the capability and it also gives strength to our sort of we help you. We are there. And again, that drives sales, not only of service, but it also drives sales because our customers are confident that we can support them. Sorry for the long answers, Lina.

[Operator Instructions] There are no more questions at this time. So I hand the conference back to the speakers for any closing comments.

Okay. Then we thank you for taking the time listening to us, and we hope you have a good continuation of the day. Thank you from Matt and Sven here.