ORIOR AG (ORON) Earnings Call Transcript & Summary

Welcome, everyone. We'll start now with the conference call and pass over to Daniel.

Okay. Thank you very much, Milena. Ladies and gentlemen, I would like to welcome you to today's analyst and investor call. We will report on ORIOR's annual figures for 2020. I would like to welcome Ms. Andreas Lindner, CFO of the ORIOR Group; and Mrs. Milena Mathiuet, Head of Investor Relations and Corporate Communications. We will start directly with the CEO statement on Page 4. The year 2020 was extraordinary in many ways. COVID-19 has had a strong impact on us in a way that is incomparable both in business and in our personal lives. The changes in our behavior has also had an impact on our business. Accordingly, this 2020 business result is strongly influenced by the current corona crisis. It does not correspond to the original target we have set ourselves at the beginning of 2020. However, in the overall context of corona and the numerous extraordinary influencing factors, I think we have managed the whole situation very well especially in the second half of the year. We will now take you through the key points of the financial year. So far, we have managed to protect our employees in the best possible way and to motivate them to give their very best every day despite difficult conditions. This has enabled us to maintain our readiness to deliver without interruption and to achieve very good results in the second half of the year in terms of turnover and, above all, in terms of profitability. Overall, we were able to increase sales by 0.7% to over CHF 600 million. Excluding Casualfood, we achieved positive organic growth both in our home market, Switzerland and with the International segment. Since September, Casualfood, unfortunately, had negatively contributed to organic growth for the whole group. Consequently, organic growth for the group was down by minus 0.9%. The acquisition effect from the takeover of Casualfood and the corresponding full consolidation since September 2019 amounted to plus 2.5%. And the ForEx effect, additionally, had a negative impact of minus 0.9%. The main positive drivers were strong sales in the home market, the generally good performance of the retail business and the strong sales in the second half of the year in the Swiss market with a very good December, also supported in Switzerland by the tightening of border crosses. The first lockdown in March came very abruptly. As already explained with regards to the first half year results, this presented us with various challenges. In particular, the significant shift in the product and channel mix, the almost complete standstill of Casualfood, the reorganization of processes and the implementation of the corona protection measures cost us sales and, above all, margins in the first half of the year. In the second half of the year, we were able to improve significantly and to achieve a margin of 9.4%, resulting in an EBITDA margin of 8.8% for the whole year. Excluding Casualfood, we are back to previous year's level in terms of margins in the second half of the year. We were able to achieve this partly thanks to the ORIOR New Normal initiatives, thanks to sustainable flexibilization of our costs and processes and also thanks to growth with high-margin product ranges. Casualfood was hit hard by the crisis. We were forced to make the financial framework more flexible and put it on a new footing. The extent of the corona crisis and the impact on air traffic made negotiations and decisions of this magnitude possible in the first place. I will come back later to this point. The main influences of the COVID pandemic on our business activities and our results have been and will be mentioned several times, so I will refrain from elaborating on now. Three important group initiatives, however, has accompanied us through 2020. I will explain some examples and elaborate on all 3 initiatives later. We turn now to Page #5. The year 2020 was truly extraordinary. We have spoken several times about the strong impact of regulatory decisions and shared with you a more detailed look at our revenue curve throughout the 2020 financial year. The curve shows the organic growth of the ORIOR Group. Casualfood is including accordingly from September 2019. The start of the 2020 financial year was very good, with good organic growth in line with our expectations until mid-March, then came the first lockdown with the immediate closure of the majority of our food service channel and customers. This abrupt closure had a strong impact on our overall sales. Food service sales plummeted to an absolute minimum, and even a significantly higher demand in retail could not compensate for the big drops in food service sales at the beginning. In mid-May, the corona measures were relaxed, and in particular, the food service sector was largely opened up. The opening became clearly apparent within a few days and weeks, initially, rising at a lower level; then from June onwards, with a strong upswing, which also exceeded our own expectations. Demand in retail remained high. And in addition, sales in food service developed very well despite the lack of events. This was certainly also due to the good weather and the pent-up demand of many people for going out and having fun outdoors or in the restaurants, on the terraces or simply in the leisure facilities at the lakes or in the mountains. The aforementioned good first quarter sales, together with the strong second half of June, meant that we were able to close the first half of the 2020 year with organic growth of plus 0.2% despite the massive drop in sales in food service from mid-March to the end of May. From the beginning of July, the summer holidays were added to the mix, the majority of which were spent in their respective home countries. This led to continued high demand in retail and food service especially in the holiday regions and mountain areas. Together with the cooler season and higher COVID case numbers, the corona measures were tightened again in September. Demand in retail picked up again and remained at a consistently high level. And food services again recorded significant declines. At the same time, sales of Casualfood flowed into organic growth and negatively impacted ORIOR Group's growth results. These 2 effects are reflected in the falling curve in September and October and are the main drivers of the negative organic growth in the second half of the year. And then came December with the renewed food service lockdown and the tightening of border crosses. Both had a positive impact on retail business and led to exceptionally strong December sales. Overall, organic growth in the second half of the year was at minus 1.8%. Excluding Casualfood, organic growth was at a strong plus 4.3%. This result was possible thanks to our positioning. With that, I will turn to the next page, #6. Our positioning is characterized by the competitive center philosophy, which is supported by autonomous and regionally deeply rooted companies with their own product and brand growth. This creates proximity to the market and makes the individual competence centers specialized in their product categories. It makes them fast and agile. We realized common added values and efficiencies through our group-wide key initiatives such as the ORIOR Champion Model or the new ORIOR New Normal. Fundamentally, nothing has changed in our positioning over the past year. However, we took over the third tranche of Casualfood in the autumn as planned according to previously agreed parameters. We plan to take over the fourth and final tranche of the remaining 11% in autumn 2022. Page #7. Our breadth and diversification in categories, sales channels, customer portfolio and geographic market coverage makes us resilient. The product categories and specializations of the competence centers are close enough to share expertise and realize efficiencies and added value through group-wide initiatives. But broaden-enough and potentially negative market and the environmental impacts can be stabilized by the rest of the group, albeit in a very extreme example, this effect is now very evident with the collapse of Casualfood. We are convinced of this positioning and the strength that comes from it. This positioning forms the basis for the fastest possible improvement in results as well as for the successful further development of the ORIOR Group in the years to come. We move to Page #8. There are 3 key group initiatives. ORIOR New Normal is about the systematic and prioritized approach that allows us to unite and mobilize all leaders and the whole organization. On the one hand, we focus on new growth opportunities that arise thanks to the change in consumer and market needs. On the other hand, we worked consistently to create a new, lower-cost base. This new ORIOR New Normal initiative has enabled us to make costs and processes more flexible in the long term. Today, we can implement the changeover between food service and retail products within hours. The impetus for progress in digitalization is also enormous. Here, we were able to and had to take big steps. Under normal circumstances, this would certainly have taken significantly longer and would have met with much greater resistance. To strengthen our base, we also worked on our structures and pushed ahead with our operational footprint development. In this context, we also decided to dissolve the raw meat plant in Stabio and to gradually integrate it into the main Rapelli factory over the next 2 years. We were able to present the ORIOR 2025 Strategy in detail in November 2020. The highlights of this strategy are the overarching clearly designed and quantified goals that we want to achieve by 2025. To this end, we are working consistently along the 5 strategic cornerstones of Innovation House, Experience brands! (sic) [ Brand experiences! ], Strong Foundation and Operational Agility, The ORIOR Responsibility and We are ORIOR. The Strategy 2025 is rounded up by the 3 key strategic initiatives: ORIOR New Normal; the ORIOR Champion Model; and the ORIOR Bridges. The rollout of the strategy as well as the implementation are already underway. As in the past, we will provide regular updates on the new strategy and insights into ongoing projects and initiatives in our presentation. ORIOR sustainability or ESG is very important to us. In the context of corona as well as sociopolitical initiatives and new regulations, ESG will continue to grow in importance. We are going down this path out of conviction, not just because we have to but because we want to and because it secures our future viability. In this sense, we are also driving the topics and goals within ESG integratively and at all levels of business activity. On the one hand, we linked it into our rolling and medium and long-term planning. On the other hand, we measure and evaluate progress and derive measures and project from it. Some examples of measures and projects are listed on this page. I would also like to mention that the second GRI Sustainability Report has been published and that we have now also listed our contribution to the sustainable development goals, the so-called SDGs of the United Nations. In addition, you will sign an overview on Pages 10 and 11 of the annual report, which shows where the individual topics are located in our company and how we address them according to the ESG system. We will now look at the results in the 3 segments and turn to Page #9. The Convenience segment almost reached the previous year's turnover. Considering the circumstances, we consider this as a very good performance. After all, the share of sales in the food service area is very high in the Convenience segment. And the slump in these customer sales was correspondingly strong. The fact that the Convenience segment was nevertheless able to almost reach the previous year's level is mainly due to the broad diversification of customer content, the growing niches such as vegetarian and vegan products and the general phasing demand towards vegan. In addition, as part of the ORIOR New Normal initiative, we have made processes more flexible so that we can react more quickly and efficiently to changes in the product and channel mix. We were already able to benefit from these assets in the second half of the year, and it will continue to support us. Let's go to Page 10. Of the 4 competence centers in the Convenience segment, Pastinella is the one with the lowest share of sales in food service. Pastinella's performance was correspondingly positive as changing consumer behavior led to increased demand from retail. The 2 competence center of Fredag and Le Patron were strongly affected by the slump in the food service business especially in the division of gastronomy and hotel business, railway and events catering, schools and in the canteens. Biotta's core range of organic vegetable and fruit juices in glass bottles performed very well in its home market of Switzerland. On the other hand, the to-go, the fresh juices and export products were under pressure. On the product side, the development of fresh pasta, a strong increase of sales in vegetarian and vegan specialties under our brand, Happy Vegi Butcher and with custom range such as V-Love for Migros as well as the general increase in demand for organic and regional products should be highlighted. In addition, we were able to achieve a very good performance in December with practically all core retail ranges, with the very good sales of pâté and terrine also deserving special mentioning. In terms of raw materials, the availability of Swiss raw material and poultry in particular remains a major challenge. We now turn to Page #11, please. The Refinement segment achieved very good growth of plus 3.3%. The change in the product and channel mix and the change in consumer behavior had a positive impact on sales. In the Refinement segment, growth was driven by the strong performance of the core product groups, with branded and terroir specialties doing particularly well. At the same time, the share of sales in the food service segment is not quite as high as in the Convenience segment and was more than compensated by the high demand of the retail range. Page #12. The Rapelli and Möfag, as competence centers, achieved very good results in the retail and discount channel, thanks to increased demand of product ranges such as organic, terroir and regional specialties, bacon creations or a large selection of meat and protein snacks. Our branded product also performed very well, especially Rapelli, Ticinella, Albert Spiess and myEnergy. Albert Spiess showed a solid performance on a strong year-on-year basis. The highlight is the successful go-live of the Albert Spiess online shop in November 2020 with sales exceeding our expectations. We see further potential here for the future. The market. As raw material situation remains intense in the 2020 year. Meat prices remained at a very high level throughout the year also due to increased demand for organic and regional raw materials. Accordingly, the availability of Swiss raw materials did not ease as expected in the overall context of the corona pandemic. We now turn to Page #13. The performance of the International segment was strongly influenced by the slump in air traffic and the resulting standstill of Casualfood. Segment sales were minus 3%; organically, minus 8.7%. The acquisition-related growth of plus 9.2% relates to Casualfood's sales up to and including August 2020. Thereby, the first 2.5 months before the outbreak of the corona pandemic must also be taken into account. From September 2020, Casualfood contributed to organic growth. The segment turnover is additionally burdened by a negative ForEx effect of minus 3.5%. Page #14. Casualfood excluded, the International segment also achieved organic growth. This was thanks to a solid development of the competence center Culinor Food Group as well as the good performance of Biotta's sister company, Gesa, in Germany and the export platform Spiess Europe in France. Culinor Food Group's products, generally, it was impacted in the manner comparable to Switzerland due to corona. In particular, the partial closure of the grade school, including the discontinuation of hot meals, and the closure of the Lunch Garden restaurant chain had a negative impact on sales and could not be fully offset despite the strong retail performance. Highlights at Culinor were the strong growth in home delivery and the expansion of the customer base to Holland, where we won a major new customer in Jumbo in the fourth quarter. This will have a positive impact on the development especially in the current year -- year. Sales under the modernized Michelin-starred chef product line were also very good. The distribution platform, Spiess Europe, as well as the Biotta's sister company, Gesa, achieved good growth driven, on the one hand, by a strong retail business in France with better sales of Bündnerfleisch and, on the other hand, by an increased demand to our organic vegetable juices in the B2B business for Gesa. Casualfood was strongly affected by the corona crisis and the sharp decline in air passenger numbers. Nevertheless, this crisis has shown that the Casualfood business model, with its focus on small and very small outlets supported by agile structures and assortments, is a model for success and will continue to be so in the future. Casualfood has been hit hard. We have put the financial framework on a new footing. All structural costs and rental costs as well as space utilization and the supply concept were fundamentally revised. For example, the parameters for minimum rents were completely renegotiated, outlet by outlet. And the turnover rents were linked to an even greater extent to passenger numbers. The other costs and processes were also made more flexible, among other things, thanks to the revision of the space management and the situational adjustment of opening out. As a result of this fundamental overhaul, which was made possible in the first place due to the severely depressed air traffic, Casualfood's operating profitability will return to pre-corona levels significantly faster in the future even with only slowly rising passenger frequencies. Both in 2020 and for the months ahead, Casualfood's severely depressed business will be cushioned by corona-related support from the German government. After a delay of over 9 years, Berlin's BER Airport opened in October, and Casualfood is present, as announced. While the number of outlets open is still modest due to the situation, this will change for the better as air traffic recovers. When fully operational, Casualfood will be the largest provider of to-go and catering services at the new Berlin airport. I now hand over to Andreas Lindner for the financial report. Please, Andreas.

Thank you, Daniel. Ladies and gentlemen, I would also like to welcome you warmly to this conference call via Teams. I am happy to walk you through the financial results from fiscal year 2020. On Page 15, you see the consolidated income statement up to EBIT level. As mentioned before by Daniel, the ORIOR Group generated net sales of CHF 600.3 million in 2020, an increase of 0.7% compared to previous year. I will discuss the composition of the sales growth separately later. The absolute gross profit decreased by minus 2.7%, significantly impacted by the International segment that is Casualfood, which was hardly hit by the corona crisis. The gross margin declined by 149 basis points to 43.4% due to corona-related product and channel mix shifts, high meat prices and the general destocking, the latter also thanks to strong sales in the month of December. EBITDA and EBITDA margin decreased to CHF 52.8 million and a margin of 8.8%, respectively. The main reasons are the corona-related effects, which I will discuss in a moment. EBIT amounted to CHF 25.8 million compared to CHF 37.3 million in the previous year. In addition to the EBITDA drivers, EBIT was impacted by acquisition-related depreciation and amortization in connection with the acquisition of Casualfood. I turn to Page 16 and, thus, to the consolidated income statement below EBIT. Financial expenses increased slightly due to higher interest expenses on loans and the absence of the net profit contribution from Casualfood. Profits before taxes decreased accordingly and amounted to CHF 23 million. The development of income taxes is influenced by special effects. Especially in the previous years, there were some mostly positive one-off effects. Therefore, the tax expense of the reporting year increased by approximately CHF 348,000 to CHF 3.3 million despite the lower profits. Current tax expenses remained almost stable as lower taxable profit, staff-related tax rate reductions and the Casualfood loss carryback were offset by the positive special effects of the previous year. Deferred tax expenses increased by CHF 435,000 due to the absence of positive effects from the previous year. That is the staff-related revaluation of deferred taxes in Switzerland. The tax rate of the previous year was exceptionally low at 8.4% due to the positive one-off effects mentioned before. In 2020, the tax rate was 14.1%, which is lower than originally expected and communicated in the guidance. The reason for this is that we were able to claim that loss carryback from Casualfood. Excluding this effect, the tax rate would have been around 18%, which is in line with the guidance from 18% to 22%. The minority interest related to Casualfood, that is the share of losses not allocated to ORIOR. Due to the before-mentioned effects, net profit also decreased to CHF 21.8 million. I now turn to Page 17 for details of the sales development. The increase in sales of plus 0.7% is made up as follows. The acquisition effect amounted to 2.5% and reflects the sales contribution of Casualfood from January to August 2020. Organic growth amounted to minus 0.9% and was impacted by Casualfood, which contributed to organic growth for 4 months from September onwards but, in fact, operated at a very low level. The home market Switzerland showed a good development despite the corona-related product and channel mix effects. Sales were very good, especially at the beginning of the year, in the summer months and then in December. The strong Swiss franc put additional pressure on the group sales with a negative exchange rate impact of minus 0.9%. That's about CHF 5.5 million. I now turn to Page 18. And here, you can see the main influences and drivers on the EBITDA caused by corona. Compared to the previous year's margin of 10.2%, we recorded various mainly negative drivers in the first half of the year which pushed the margin down to 8.2%. As already communicated, we had to implement comprehensive protective measures for our employees. The protective devices and spacing distance needs have led to process slowdowns and productivity losses. The product and channel mix has shifted in favor of Refinement and at the expense of Convenience products, which also resulted in a decline in margins. Another strong driver was the decline in sales to food service customers due to official restrictions and, in some cases, large scale-downs or even lockdowns. This affected several units, in particular, the Convenience segment and, of course, Casualfood, which specializes in travel catering and came almost a complete still-down. We had to introduce various countermeasures to cushion the negative drivers. The retail range and the corresponding readiness to deliver are actively promoted. And thanks to the comprehensive measures to protect employees, we were also able to ensure without interruption in our supply chain. This resulted in an outperformance. The far-reaching cost focus was intensified. And where appropriate, the necessary employees were temporarily placed on short work. Due to the damages and losses caused by the official closures of our food service customers, we were able to claim insurance benefits from our epidemic insurance coverage. Now in the second half of the year, we implemented various measures to decrease -- to increase -- sorry, important, to increase the EBITDA margin to 9.4%. We were able to further flexibilize cost structures and processes. Casualfood's financial framework was put on a new basis. This related in particular to the renegotiation of our lease agreements, to structural costs and to the offering concept. In addition, we were able to apply for economic aid in Germany. The good performance of the Swiss home market and Culinor, particularly in the retail channel, were also positive drivers. From an EBITDA margin perspective, the product and segment mix, that is more Refinement, less Convenience and less International, remained a challenge in the second half of the year, as did the renewed lockdown in the food service business in Q4 and, of course, the continuing difficult situation of Casualfood. Excluding Casualfood, we achieved an EBITDA margin of the second half of the previous year, which underlines the good work along our measures and cost focus. Thanks to the good increase in profitability in the second half of the year, we were able to close the year as a whole with an EBITDA margin of 8.8%. Now Page 19 shows us the consolidated balance sheet 2020 according to Swiss GAAP FER. There were no particular changes in the balance sheet compared with the previous year. The decrease in intangible assets, which includes trademarks and concessions of Casualfood, is due to regular amortization and a decrease in debt due to lower trade payables at the balance sheet date. Equity decreased by minus CHF 18 million compared to December '19 due to the third tranche of Casualfood, which we did according to the previously defined and agreed parameters, and the lower net profit resulting in an equity ratio of 18.1% at the year-end. The shadow calculation shows an equity ratio of 37.2% and can be found in the annual report. I turn to Page 20. Here, you can see the development of the debt ratio since 2013. Until 2019, leverage ratio always remains below 2.5x despite acquisitions. Despite the corona rate effects of this year of 2020 and the third tranche of Casualfood, the leverage ratio remained well below 3x at 2.87x in 2020. It is our clear goal to reduce the debt ratio to below 2.5x as part of a continuing deleverage process. We even want to achieve this in the current year. I turn to cash flow and dividends on Page 21. Despite significant negative corona effects, operating cash flow reached a good level of CHF 52.3 million in 2020. This is attributable to focused net working capital management, in particular, the reduction of accounts receivable and inventories. As far as dividend is concerned, the Board of Directors will propose to the Annual General Meeting a slight increase to CHF 2.33 per share. This is in line with an attractive dividend policy with a steady increase of the absolute dividend. And we are very proud of our shareholder bases, which is characterized by long-term-oriented and solid investors. With these words, I hand back to Daniel.

Thank you very much, Andreas. We'll now move to Page #22 and the outlook. We generally expect a slight recovery of the overall corona situation from summer 2021 onwards. We assume that the food service sector will slowly come back from summer at the latest, and its demand in retail will slowly lull off again accordingly. Specifically, we expect sales growth of between 0.8% to 2.4% driven by the Convenience and International segments. In particular, the competence centers Culinor Food Group in Belgium; Fredag and Biotta in Switzerland; and from summer onwards, Casualfood in Germany are expected to contribute to this growth. The first 2.5 months of the previous year are not directly comparable as they still reflect pre-corona times. Accordingly, growth is expected especially from summer onwards. We will significantly improve profitability, in particular, thanks to the flexibilization of costs and processes under our New Normal initiatives, thanks to growth with product ranges that tend to have higher margins and thanks to the new financial basis of Casualfood. Our goal and our focus is to return to the EBITDA margin of above 10%. As in 2020, we will continue to drive numerous sustainability topics in 2021. You can see an excerpt of this on this slide below. In particular, I would like to highlight that we are working on a sustainable electricity mix, that we are working in a working group together with other retail and food service stakeholders for a joint food waste program, that we have launched a pilot project for the recording of Scope 3 emissions and that we will introduce a comprehensive package of innovations in the remuneration and participation policy, for example, minimum shareholdings for the Board of Directors and the Executive Board and the introduction of a strict remuneration component aligned with our long-term development, which also integrates ESG targets and share price performance. Page 23. In numbers, the outlook is as follows. We expect organic sales of between CHF 605 million to CHF 615 million driven by the Convenience segment and from midyear onwards as terroir industry gradually recovers also by the International segment. For the Refinement segment, we expect slightly declining growth also due to the strong year-on-year basis. These estimates are based on constant exchange rates. In EBITDA we expect a significant improvement to margin of 9.8 to 10.2% driven by the measures and influences already mentioned before. We turn to Page #24. We expect the tax rate to normalize at 15% to 19%. We expect CapEx of CHF 19 million to CHF 21 million. This includes strategic investments such as the investment into a new extrusion technology line for meat substitutes and the corresponding increase in production capacity as well as the investment project mentioned earlier as the transfer of the raw meat plant to Rapelli's main factory. We have already reported in detail on the other group topics. The task here is to bring the horsepower on the ground and to consistently drive forward and implement the many initiatives. By the way, the next sustainability report will be published at the beginning of May 2021 and will again contain detailed information on our development in terms of ESG. We now go directly to Page #25, and I will brief -- I will give a very brief outlook on the drivers and challenges by each segment. Page #25, Convenience segment. The highlights in the positive drivers, starting with Biotta, managed to do nice on innovation. We were able to list within Migros, which just started this week, a new 1-liter PET fresh vegetable juice concept. This will go through more than 100 outlets and this is treated as a test. Then we were able to list our Bio Energy product in the ambient area of Migros, too. And we have completely overhaul the wellness week program, and we have launched a Mister Juice Day (sic) [ My Juice Day ] concept with 2 bottles that you can enjoy a very good wellness day on your own. Another positive driver is that we did launch a Happy Vegi Butcher. This is our brand for the vegan meat substitute products. We'll launch a web shop for this brand this year, too. The challenges remain the same. It's about the food service channels that are still hampered by the restrictions, so we are, of course, hoping that the lift of the lockdown will come soon. And the other point is the supplies of raw materials especially in Switzerland, there, it's sometimes tight on poultry but also on certain vegetables and especially on the pig protein. Then we move to the next page and the outlook of the Refinement segment. The highlights are that we expect that the core product groups and heritage brands will continue with strong demand. And the other point is about the innovation in the snacking and small format concepts from Albert Spiess and Rapelli. And there, we innovate lean and sustainable packaging. And this will be all launched during the first half of this year. From a challenge point of view, it remains the raw materials. Especially with the Swiss meat raw material supply, for example, is tight, and therefore, the pricing has remained on very high levels. Please move to the next page, where we have the outlook on the International segment. Surely highlighted about Culinor Food Group with the new listings and further development of sales channels outsized Belgium. Concretely, that we won Jumbo in Holland as a new customer by Q4 last year. And that we have won just early this year Monoprix in France as another new customer and distorting our customer base also outside the Benelux. The other point that has been continuously growing strongly is the home delivery business from Culinor, too. And challenge remains mainly the government-related measures. For example, at the moment, the people in Belgium again go to school again, but they are not allowed to eat raw meals. And this, of course, has an impact on us. This should be eased by mid-April, and we hope so. So this has also an impact, also the restrictions of food service for the whole International segment. Okay. This has been our report for the year 2020 and the outlook for 2021. Thank you very much for your attention. Now we are available to answer any question you might have. Please.

[Operator Instructions] Is there any question from your side? There are also people connected by phone. [Operator Instructions]

So we have our first question. It is in the chat function, Daniel. Let me see. So if look at the chat functions, Andreas, can you see the question?