OHB SE (OHB) Earnings Call Transcript & Summary

We are welcoming you to participate in our Q2 6-month results call. And of course, we would like to give you an update on the investment agreement with KKR that was published this morning. I hope you have been able to download the materials, and I would like to welcome you on behalf of the whole OHB SE's Management Board. I'm sitting here in a little bit of different shape, but we're just doing it out of our little conference room. I hope the transmission is sort and you can hear it. I would like to walk you quickly through the slides, and then, of course, we will open the floor for Q&A. So I hope that the short notice that was making it possible for you to join. And the unusual time at 2:00 p.m., but again, I think we have lots of news, and so I think it should be a very exciting and interesting call. Just to quickly go through the slides. Of course, the OHB Group is identical as it was under the presentations most of you have seen in the Q1 results in May and our annual meeting showed 3 business areas: space systems, aerospace and digital are in the same shape. What is important to remind everybody is our strategy, OHB 2025, shaping the future because this is really the guideline that guides us through all our thinking and it's the baseline also of our joint plans that we have developed with KKR and there will be an important quarter discussion I guess that we will have. If you look at the content here, it has not changed. It's about developing OHB into an end-to-end system provider. We are planning to develop our portfolio. Of course, having extended also our business scope to small rockets on a full launch of scale is important. The other points, I don't want to run through point by point, but it's all focusing on future growth. We are trying to have organic and inorganic growth at the same time. And financial goals are also the same that you are very well aware of in the past years with the goal in the next couple of years to reach the goal of EUR 1.5 billion turnover. I don't want to stay too long on this slide. But what I would like to quickly explain to you is the structure of the contemplated investments of KKR. So KKR is investing as a long-term minority investor. There will be a capital increase, and there will be also an offer for a public takeover. So maybe I'll quickly go through explaining a little bit this chart. You see here the existing situation with Fuchs family owning 70% of the stock and the fee float being 30%. What now will happen are the 3 steps, which are shown here as A, B, C. So KKR through a big company, a special purpose company making the offer will invest a 10% capital raise, capital increase of OHB SE. And that obviously means since we are now having roughly 17.5 million shares at a subscription price of EUR 44 per share that will result in a capital injection of about EUR 77 million into OHB that rate is at the same share price as a public takeover offer. And it organizes from the newest KKR, European private equity fund, called KKR European Fund VI. Separately from this transaction, to start on the A, there will be a voluntary public takeover offer by KKR for all free float shares and an offer price of also EUR 44 shares per share -- EUR 44 per share. Family members, our shareholding will not tender our shares and we will remain the majority of a little bit more than 63% post capital raise in the so-called Fuchs family pool. On top of that, by the way, also the shares of my sister that is part of the free float, about 2% will also stay with the family, but that's a minor point. On top of that, to start on the number C, there is a direct investment from KKR of EUR 30 million to Rocket Factory also by subscribing for a convertible bond. This overall, we feel is an attractive offer and attractive package. And so the OHB management and our supervisory board are welcoming the investment and also the public takeover offer. So obviously, just summarizing what were the plus points with this enhanced financial flexibility, of course, we are better and able to implement our corporate strategy that I quickly explained. We are strengthening the equity base, of course, at a time where the interest rates have been increasing substantially. That's a very good point. Of course, we're doing this at a significant premium. We believe that KKR is the ideal long-term partner for supporting us on our growth path. We believe that the increased financial flexibility that comes with the 10% capital increase will position us much better in the space markets that are opening, the big opportunities for privately financed, cost-efficient space solutions. We believe that, of course, sales remains a very attractive area of investment, so we can invest along the lines of our OHB 2025 strategy. Of course that means that the downstream sector with what we call digital -- the OHB digital sector will be part of it. But also the space system part that will be some investments. But the separate investment into -- of KKR into Rocket Factory should secure successful development of the micro launch RFA ONE until it really comes to the launch pad. Of course, that is -- that's dependent of technical risk and successful tests and so on. And of course, this is rocket science, so it's our goal to must be as efficient as we have been in the past years. And I think we have very tremendous progress in with regard to developing a micro launcher at very, very attractive cost, unmatched cost level compared to others. But again, we'll see when that ends in a successful plan. We, of course, are, as an independent partner for our government institution very much depending on the support for that goal. We, of course, are playing an important role in Germany's and Europe's security and cyber team space as one of the leading companies and that is something that, of course, we need to strengthen that we believe can be very much supported and enhanced with this transaction. What is very important for me to say is that there will be a continuity in the majority ownership. There will be also a continuity in the management. So the management that you see around the statement, and this is by the way the reason why we are having here from the management side, the current 6 member OHB SE Management Board, actually we're joined by Sabine von der Recke, who is at the OHB System Management Board and taking care of the communication part. But the team currently in charge is also running the company in the future. Maybe I should welcome this group Markus Moeller. I think he was not with us, no he certainly was not with us when we met last. So Markus is here with us, and I'm sure in the Q&A session, there will be questions also asked to Markus, who joined OHB's Management Board at July 1. So the family will continue to hold the majority. We retain control. We will, of course, continue to be an independent German family-led business. And I myself, I extended my contract. Actually yesterday, I signed that agreement for extra 4 years until June 2028. We believe also this takeover offer is very attractive for our shareholders. So it's not only good for the company and our customers and our other stakeholders, our employees and the whole team, and we believe also it's very attractive for our shareholders. It provides an immediate realization of a significant value. We believe the price of EUR 44 per share with more than 36% premium over the closing price of Xetra closing last Friday, is very significant. It's even a greater premium if you go through the 3 months average. Over the last few months, the average was at EUR 31.63. So that's a 39% premium and it's even a premium of 19.9% to the highest price that -- the OHB share was traded ahead over the last year. So that, we believe, is an attractive offer. And there is no minimum, maximum threshold, regular normal customary closing conditions, like merger control, like foreign direct investment control and approvals. We will then, after taking the company -- we are intending to take the company private. And we believe that helps us to pursue our strategy in a more, let's say, direct and in a more effective way. There is a delisting foreseen and there will be no domination of -- sorry, that's a profit loss transfer agreement, which by the way, obviously, KKR as a minority shareholder could not do anyway on their own, but this even means that we are not intending and we are not implementing even together with KKR and Fuchs family, such an agreement. So that's not the plan. We're protecting the company itself because the whole deal has the purpose of strengthening OHB and the operating entities to have a stronger development and becoming really the leading player in the European space industry. So maybe a quick look at what we believe that will be the -- could be a timeline or could be the next step. We have now the announcement of the public takeover. Then KKR will submit an offer document to BaFin. And after a review of BaFin, then that will be obviously published. There will be a so-called reasoned statement by the OHB Management Board and also the Supervisory Board, the joint statement. And then there will be a period of 5 to 6 weeks as an acceptance period for of the shareholders. Parallel regulatory approval process will start. And after the announcement of the first results, there will be an additional acceptance period of 2 weeks ending up in the final results and then will lead to the closing. So again, as I said, subject to a careful review of the offer documents, and then that is obviously to be done in the future. But looking from today's perspective, Management Board and Supervisory Board, we intend to recommend the shareholders to accept that offer. So that has been a quick overview of that. I'll just quickly run through the remaining slides because I'm sure this would be the major part of discussion. But of course, we still have also Q2 results published today -- this morning, and I hope you have been able to familiarize you a little bit with that. So just quickly, very quickly, the major achievements this quarter has been the Heinrich Hertz launch, which was launched actually in the first days of July, a very successful campaign, a very successful project. We're very proud of Heinrich Hertz being now in geostationary orbit. Just recently, there was another contract signed with OHB Digital Connect for the operating -- first operating phase. That's just the first phase until the mid '25, about EUR 29 million. So that obviously means that building a satellite also generates significant operating work for our OHB Digital division because that's where this contract is run there. Another important progress was ODIN’S EYE second phase. This is an OHB led consortium that received funding from the European Commission in an amount of EUR 90 million. And that's a lot for a study. So ODIN’S EYE is developing a space-based early warning and tracking system. Obviously, early warning ballistic missiles. But OHB is the leading European company for this puts us in a very strong position for them being also in the leading role when it is implemented. And Germany is very strongly supporting that, obviously, this is one of the first signs that we can see where a new trend scenario is playing just this feeling of decision-making in this contracts. Another important successful point that we had in the Q2 time frame was the successful integrated system tests that Augsburg factory also had in Sweden. Again, that's after last summer's demonstration that we have working highly performant engine. This was the full upper stage. Test was very successful, and that's really also the baseline of our decision to move on with RFA and bring RFA with a large set in order to complete the whole market development for then a launch of RFA in 2024. Quickly going to the numbers, backlog is the familiar chart you know we have still in Q2, not in changing this significantly actually slightly below to below the number that was by the end of last year. So we're in the process, obviously, of working to the contracts in the biddings and the decision process where the -- these are contracts, additional funding that was generated in November at the Paris conference. A quick overview of the numbers. I don't want to spend too much time, but backlog, I was just saying total revenues compared to last year, slightly higher, EBITDA slightly higher and with slightly higher EBT actually significantly lower. And a couple of reasons for that, the high interest there. But I think we will talk about that later, and Lutz will answer questions on that. So the earnings per share has been lower with EUR 0.79 compared to EUR 0.88 last year. Headcount is a little bit higher with 3,159 people as of June 30. So it has been a record half year so far, slightly evolving. We are still -- we still have quite a way to go in Q3 and Q4. As you all know, the first half is slower on that, and we still have significant path to go there for the overall company, for space system, Aerospace is a little bit uneven. Total revenues are our profitability is slightly lower than it was at the last year, similar in digital. So it's an unspectacular set of numbers, but the bottom line is and we are confirming our guidance that we gave in January. We believe that we are on a good path of receiving it. As you see the EBITDA and EBIT numbers of EUR 109 million and EBIT of EUR 70 million, and that's the number we are aiming at. As you can see, EBIT was last year, if you look back at 63%, so we believe that we will be able to move this year to 63% to 70%. And again, that's confirmed. It looks like an unambitious step when we look at the increase from the year 2021 to 2022 was 34% and now it's a little bit more than just 10%. But so I believe that that's an ambitious goal, and we are happy to confirm that set of numbers. So I don't want to go in details on the balance sheet. Bottom line is that the structure of the balance sheet is pretty much the same as it used to be on the asset side. You can see major structural changes, a little bit more inventories. Overall, the balance sheet is a little bit longer than it was at year's end, which is normal because there's an increase in contract assets, which is the biggest thing that you have. And as you know, typically, that will convert it into revenues at and close to year's end. On the shareholders' equity and liability side, slight increase in equity. Of course, we had the dividend payment in Q2. And other than that, major changes here are -- that we have current financial liability significantly higher than at year's end. That's the normal cycle of mid year's indebtness increase. You can go through that and ask some of the questions. Also this set of numbers compared to the previous success has been unspectacular. I don't want to go on the details to this. So net debt has a typical cycle of being relatively high at midyear as you can see pretty much the same level as it was a year ago, slightly higher and the curve will be similar in terms of the shape of being lower by year's end. And that's obviously -- but we're all familiar with it. Investment spending is a little bit lower than it was last year at that point in time, so instead of EUR 11 million, we have EUR 8 million, but that's not a major change in terms of strategy. But probably the most important one is that we have less IT or software projects, which is to drive this. The cash flow was again weak, a little bit better than last year. Free cash flow last year at this point in time was minus EUR 137 million, and we ended this year with minus EUR 14 million in 2022. And at this point in time, we're at minus EUR 112 million. So we'll see how this will end. It's obviously, not very precisely to predict, but it's a debate and of course, we be interested in answering questions. So that was a quick run through the slides. But again, I think that the major point I'd like to discuss with you post the transaction actually the bit that is as we announced today this morning KKR for private plus capital increase. So I'd like to stop here after 20 minutes and open the floor for questions. I'm looking to Martina to announce the question and of course release them so that they can be asked in the call.

Yes. Thank you. [Operator Instructions] And the first person is Alexander Hauenstein from DZ Bank.

Congratulations, first of all, quite an interesting move and a powerful partner. I presently feel a bit sad as your company will probably disappear later from the listing table, but always enjoyed working with you. Nevertheless, I understand the move in certain ways, and I understand that it was quite interesting for you to pursue this opportunity. . But maybe one question, if I may, on the plans for your business maybe in the U.S. Is that somehow related to your strategic plans that you're taking in the U.S. brand equity company? And what exactly, in your view qualifies KKR specifically, apart from being a very potential potent likely company. But what exactly is the angle for the space industry here? Maybe you can share your views here. I didn't do the details to be frank, but maybe you can help me out of it.

Yes, I'll start a little bit with the general overview and then I hand over to Lutz for the question of the specific business opportunity. I believe that -- I mean, obviously, KKR is a strong name, and we're very happy and proud that they decided to invest in OHB. Of course, KKR is not a specific space investor in that respect. They have a strong aerospace practice in the U.S. And they have in Europe and did investments like [indiscernible] technology, obviously, they successfully did. I believe what they really like about OHB is the fact that space is a booming industry. And I believe that when you look from the U.S. to the European space industry, you see a lot of upside. So obviously, I'm sure that what was attractive for them is also the current valuation that OHB had before announcing this transaction. So I think it just confirmed that from -- let's say, from the top view, where you see OHB as an attractively priced asset. And if you believe in the long-term prospects of the space industry, and if you believe in at what, let's say, what is going on in the U.S. will also come over to Europe in a certain way. I think that explains why they believe this is an attractive transaction. So they came to the conclusion that the stock is worth more than the EUR 44 or that is worth the EUR 44, and that has a lot of potential to come up. And so they see this offer is attractive for them. That's I think, very good. And it confirms, I guess, what -- actually what I have always felt that we are in an attractive growth stock. With regard to the business in the U.S., maybe I hand it over to Lutz if you have something to comment what that is.

Start with the business in Europe. And to the extent possible business, honestly, not too much, but to the extent possible, we, of course, checked with our European customer base, how they would see such an engagement. And the fact that KKR has been in [ NTU ] and then thus being involved in programs like the Eurofighter engine testing and [indiscernible] and so that's well known to the customer, even if it's a bit of full impact for eCommerce systems also all components, but everything we're seeing we got from our customer side. What positive it is today, in particular, I mean now we have a business we openly and the reactions we get are very, very positive. So I don't see that having KKR as a shareholder in which you would in any way, damage our opportunities here on the European market. It's well appreciated that the Fuchs family stays in control and will stay in control. So this is certainly something which is very low risk that we have a negative impact there. On the west side, there's 2 aspects we should look at. One is, obviously, with KKR being in the company and thus increasing the financial capabilities of the group, we are more in a position that we can afford investing in the U.S. And we have some U.S. customers in particular in the area of aerospace, who are actually inviting us to come and combine the invitation with a clear perspective that they would love to give significantly more business to us, if we will be next door and not over the fund. And secondly, obviously, KKR is a super well connected in the United States. So from a U.S. business point of view, I can only see positive aspects in going together with KKR. And our value creation with KKR, the investigation of business opportunity in the United States, this is clearly part of the plan.

Sounds very promising. Thanks for sharing your views here. And there, as I said, all the best. So far well done.

So next question comes from the chat by [indiscernible]. Please give more details about the delisting, what's the reason for it? Will there be a listing on KKR? Why do you want to get rid of other shareholders who want to go all the way with you during the next 10 years?

Yes. Thank you for that. I guess what the last years have proven is that the interest in the OHB stock or the interest in very small stocks like OHB with about a free float valuation of about EUR 150 million has become more and more difficult. We saw an unfortunate decline in our liquidity and in our -- the turnover has been much lower now in the last year than it was maybe 10 years ago. Of course, we very much value, and we're very happy that we have such a group of loyal and long-term shareholders. We believe that the offer with EUR 44 is a very attractive offer compared to what the stock was trading for the last year. And of course, now it's the tender offer we will see how the path goes on after that. It has not been firmly decided, but obviously, the KKR, once the tender in a way that as many as possible of the free float shares will be tendered and depending on that, then there will be a decision how to move on. Eventually, I believe that a small cap like OHB has to make a fundamental decision either. It has to grow significantly to be relevant at the stock exchange or probably the related costs and the related management attention and effort are not proportional to the gains that you take from it. So I believe that, again, and I personally did the IPO 23 years, 22.5 years ago. So let's say, a significant part of my life, I was leading a listed OHB. Looking back, of course, times have changed. In 2001, at the times of the [indiscernible], there was a lot of enthusiasm for listed companies. And I think for this very small cap segment where we are part of and has over the last years changed in terms of potential, in terms of demand. So now, again, I think it's -- we have to adapt to that and growth for the company and the well-being for the company, so fundamental, say, guidance of what we do. So we want OHB to develop well. Again, for me, it was very pleasant and very exciting to be the CEO of a listed company. So it's not an easy decision. But for the customers and the employees, I think the good perspective for the company is the major goal that we have to follow. And in that respect, I find it easy to say that in the private scenario with a very long-term, let's say, orientation, it's easier to pursue that strategy. I think in a situation where we are listed transparent company that has to report every 3 months with a rather heavy debt on our balance sheet and with the requirements and covenants of the debt on our shoulders, it's not so easy to orientate the strategy on long-term goals. That's something that I believe, for the next years will be very, very important in the space industry. So I'm flattered by your statement to say shareholders wanting to go all the way with us for the next 10 years. Yes, of course. And then I think we had a good development with this offer now. But I believe that for the company, the interest is clear that growth will be easier and more dynamic on the path that we have now chosen.

Next question from Alexander Dominicos. Could you please provide some more color if KKR can help you to become more efficient, increase margins with regards to costs and processes?

Well, we are -- and maybe I'll start on this, and Lutz you can chime in. We're obviously an engineering company. The core and the culture and the DNA of OHB is an engineering culture, what we do very good developing satellites. We're coming from an industry that is a project industry. So in terms of efficiency, in terms of, let's say, also, if we look at optimizing certain things on a horizontal level through the different divisions, but also having an optimization of the balance sheet, that's something where we can improve. And I think our core culture comes from the Space System division. And in order to be successful also in aerospace and the digital, I believe financial investor can help with something. I don't know Lutz wants to add on this a little bit, if you want to come in at where you see the strength of KKR coming in.

What's happening now is we -- through this investment from KKR and which beat to strengthen extremely our equity basis, and extremely on flexibility concerning investments, also investments for improvement of operational business or operational business and the bar structure. And this helped in each area, our group to improve our experience, make OHB more efficient and more efficient company. That's -- it's good.

Yes. I mean we are a company under constant competitive pressure. So when we build a satellite, there was a competition before most of the times. So we need to be efficient. We cannot afford to be not efficient. We cannot afford to lose too many proposals, and we want to win and we want to maintain our cost advantage over our competitors because we also have disadvantage in terms of size, in terms of broadness, in terms of balance sheet. So we want to be the best and cheapest and most attractive satellite developer, and that's something we have to constantly improve.

We have now good and cooperative partner.

Markus, do you want to add something to...

Sure. I mean it's also someone who is known in the industry, and I think it brings methodology as well. So bringing a method of how constantly improve operations gives us the chance basically to continue to organize our teams and beat the rhythm as well. I think it's important to have a sparring partner that runs with us and keeps as you know, to new levels, and that will get going the continuous improvement. So we're looking forward to have them on board as they help us with the transformation under your leadership, Marco to build the plan and execute the plan of improvement.

Next question comes from Klaus Luther, it's actually 2 questions now. How many seats will KKR get on the board is the first? And then the second, are you expecting a squeeze out of minorities at the end of the process?

And the first question is KKR will get one seat on the board out of 5. So we were going to stay -- as long as we're a public company will stay with the 5 Supervisory Board seats and 1 of them will go to KKR. And the second question is, yes, it is intended. It's not firmly agreed, but it is intended also to pursue a squeeze out at the end of the process.

Next question will come from Henry Bender from [indiscernible]. I will add him as a panelist.

First of all, congratulations to finding a new investor, both for OHB and also for the Rocket Factory and also welcome Mr. Moeller to our calls here. Yes, I was also quite surprised this morning, but it seems like a sensible move for me. I have a question on maybe operative business in Q2, you reported a 2 percentage point increase in EBIT margin in the Space Systems segment. Could you give a little bit more color on how it came that the margin increased so much?

Yes, it substantially has to do with further improvements in our projects. We are more successful, more stable and more cost efficient in our big programs at space system compared to the past. We get some good change contracts from our customers at the end of the day. So the overall economic situation of our programs are more and more improving of the main reasons, sorry. But that is the reason for it gets there to me.

Long partners. Now it comes. Isn't it nice?

Yes, one more question from my side would be on the current bidding on the IRIS2 and maybe Satcom [indiscernible] 3, if you have any more color on this, we pretty much appreciate it. Maybe in terms of time plan and maybe give a little direction on when we can give any more -- have any news flow on the Satcom contract or bidding process.

I don't know, Markus or Lutz, do you want to take it?

With IRIS, I was actually the initial bid goes to the commission today that's a super high level I would call it a very rough roam of or so. It's more an architecture of the system with some indicated numbers combined to it. The more interesting part will be the competitive dialogue, which will start from September onwards, when the system then really will be defined. OHB, as you know, is part of the core team. It's leading the [indiscernible] part. But from my point of view, the contract award is unlikely this year will more be first quarter next year. This is more or the same for Satcom 1 where I would expect to call it awarded at the very beginning of the year. If they are super-fast, it might move to December. I don't really believe in it. Again, we are very well positioned. Again, there's only one bidder, which is a consortium out of Airbus and us. It's a naturally needed capability. I can partly imagine that they would not procure it. And in particular, the feedback which we get on our part of the offer is very positive. So the capability which we are offering is very much appreciated by the customer, including things which we offered as optional capacity, which was not necessarily fully in the requirement, but the customer tends to fancy larger capability, which we can now offer on the satellite platform, which we have selected, which is [indiscernible]. The customer tends to take this into account.

It comes down to assets, comes down to procurement, the assets, how faster they are.

One more follow-up question, if I may. The Ariane 6 program seems to be very conservative in terms of communication with progress. Do you have any more color on that for us and maybe what is also the implication then for the Aerospace segment?

Yes. I mean, Ariane 6 is undergoing some very important tests now. There are some tests going on in potentially Ariane with the first stage, some engine tests plan to continue in Lampoldshausen So obviously, as teams are concerned, to predict exactly time -- the schedule before that is, let's say, confirmed how the outcome is. My information is that after the summer break, there will be a more firm prediction of calendar. So of course, people know that public and markets and governments are expecting a firm time line. But I think the decision has been made that this will only be officially communicated starting from September onwards to see when exactly work to end. What I feel or what I can say is there's good progress. I mean it's not so visible, but there's very good progress. I think there's a lot of derisking going on. Testing is important. So testing doesn't mean that things are critical and not going well. Testing is exactly what you have to do when you build a new rocket. So I'm optimistic that Ariane 6 is moving along very well. And of course, I don't know exactly when the overall system is completed so that the first launch will be. I was a couple of weeks ago at the first launch attempt of Heinrich Hertz that was in mid-June, late June, visiting the facilities of Ariane 6 and actually also the technological progress, the first stage share in '23, and it was very impressive. It's very impressive to see that. So the ground infrastructure is an impressive status. So we're all very confident that this will go well. But again, it's rocket science, who knows. There might be some flaws coming out, but we are well prepared at MT Aerospace with our production, and we hope that also the long-term contractual, let's say, contractual questions will be solved within this fall because the overall Ariane industrial consortium needs to get clarity how to produce and how to further develop it. Because again, Ariane 6 is desperately needed in Europe because after the successful launch of Ariane 5 and actually, I mean, there's no Ariane 5 left and actually also Vega-C is out of operations. So Europe currently is very, very, very restricted with its independent access to space. And obviously, Ariane 6 is the major answer for that.

Next question comes from Dennis Watts. He wants to know whether we can say anything about devaluation of RFA for EUR 30 million investment.

Yes. I mean, of course, RFA is seeking investments since quite some time. We have invested, others have invested. Of course, there's a significant share also from management and the team. And so the mechanics of the investment in Rocket Factory Augsburg has been over the last years convertible most [indiscernible] in Germany. And that always implies that there is a stock price value. And then the [indiscernible] holder, the convertible holder has a certain time period while it's that, and he receives an interest and he has the right to convert it. And that conversion rate has been put at EUR 15 per share and the interest is 5%. So it's a low interest and conversion right. And so one can calculate from that. But keep in mind that it's the under sold subscriber and there's a conversion right. There's not a conversion obligation. So that's something -- and again, this is the same what we did over the past years. We have done this over years. We tended to convert everything that became mature. But I'm sure that depends on a good progress. So everybody comes in to the team will take some time and see and take a look at the progress. And -- but of course, we're very happy to have KKR joining at that level of valuation. And again, the low interest number indicates that the upside is with the stock and the equity and the upside is not the interest.

I can't see any further raised hands or questions. Maybe we just raise few moments.

Yes. I guess maybe, of course, you're welcome to ask more questions. And I, of course, understand that the process was a little bit surprising. But of course, we are very happy to have this call now this afternoon, and we're very happy that we have been able to inform yourself with regard to the Q2 numbers. Overall, I think looking back to Q2, I think it's okay. It's not great, it's not bad, it's on track. So we feel comfortable with that. I think we have a good year, a lot of proposal preparations going on with the markets and being very busy. Lots of people are writing proposals because as we've said earlier, we have to convert, these are created budgets from the conference into further contracts. That's the theme of this year, the 12-month, it's busy. I think on the transaction, of course, we are there to answer more questions. I'm sure that also on the investor side, people to ask questions. I guess that's the communication perhaps that is out there. So we hope that the offer finds your interest and support. We believe it's an attractive offer. We believe it's an enormous premium for noncontrolling share. You have to think we are a very small free float with limited liquidity, we believe such a premium for a noncontrolling share that has not a perceptive of ever becoming a controlling share, that will remain a minority share is very, very significant, and it's it shows that there is an intrinsic value in the share that has already now been -- was possibly realized now that without such an offer would have taken very positive development and a very long time to reach it. So I think it's a massive acceleration of valuation. And that's why we support it. And of course, we're curious to see the next steps as I explained it. But overall, I think it's an exciting moment for OHB that we have such a name like KKR, making such an offer of EUR 44 per share when the stock closes on Friday with EUR 32.2, that's a very significant number. And so we're -- actually I'm very excited about this because it created a lot of value as we saw 37% -- 36.6% over Friday's closing. And I don't see that such a value jump would have been possible anytime soon. So if you look at what would have happened to happen in terms of order intake, in terms of successful launches of Ariane and Rocket Factory and everything, a lot would happen -- have to happen to make that a reality. And that's a massive value acceleration. So I think that's something that hopefully most of you share that judgment. So that was just my killing speech while Marcelo is looking for further questions.

But there are no further questions at the point. So also some great closing remarks, I would say. And then, there's nothing to add from the rest of the team. I would thank you, everyone for your attention. Feel free to reach out with further questions. And thank you.

Thanks everybody.

Thank you very much.

Bye-bye.