Relais Group Oyj (RELAIS) Earnings Call Transcript & Summary

Very good morning, everyone. Warmly welcome to follow the presentation of the first half year financial results of Relais Group. Together with me today is Pekka Raatikainen, on a safety distance from me, who is the CFO. And my name is Arni Ekholm. I'm the CEO of Relais Group. I also warmly welcome everybody who is following this on the webcast. The presentation will take about 20 minutes or so, after which there is a chance to make questions for the people attending the meeting here. [Operator Instructions] Before going to the presentation as such and to present the results, I would like to here thank our wonderful staff for the commitment and great efforts you have done during this very difficult first half year, looking at the circumstances. And also, I would like to thank our customers and the investors and owners for the commitment that you have shown to our company. So without further ado, let's look at the agenda of the presentation. We will first go through the January-June results in brief, and Pekka will walk you through the numbers a little bit more in detail. We will review the major events after the review period, then I will make a short recap on the strategy and talk a little bit about the outlook of the rest of the year and how our approach to that is. And then we will have a short look at the shares and shareholders. A small notice here in the beginning. If we look at the numbers, we made 2 major acquisitions in 2019, AB Reservdelar and Huzells. The numbers from those companies are consolidated as of 1st of June in 2019. And in the beginning of this year, we made 2 acquisitions as well, 1 in Denmark and 1 in Sweden, which I will come back to a little bit later. And the results of those companies are then respectively included as of January and February. So before going into the details of the results, I would like to just recap shortly what we do and who we are. I guess we are still a fairly unknown company to some of the people. So how we define ourselves is that we are an importer and technical wholesaler that actively develops its vehicle spare parts and electrical equipment business in the Nordics. So it's spare parts and electrical equipment in the Nordic and Baltic countries. We do have a very comprehensive range of products, meaning that we can serve our customers very well in all the markets where we operate. We have also own strong brands, which is important to remember. And we represent also major global brands in our portfolio. How do we create added value to the customers? It's, of course, providing them with high-quality spare parts and equipment. And also, what we give is a specialist service, technical service guidance, to our customers throughout the life cycle of the vehicle. So then a short look at the numbers. We had a very strong growth last year. Actually, the net sales grew by 56% and reached EUR 59 million. The EBITA grew substantially with 93.2% and totaled EUR 7.5 million. So then let's look at what's happened during the January-June, the first half year. I already stated the net sales growth, which, of course, to a large extent, comes from the acquisitions that we have done. But also, I would say, it's not only acquired growth, there's a good element of organic growth also, especially from Sweden. EBITA, reaching 12.7% of net sales, and EBIT, 6.2%. So clear improvement on both sides. And you could also say that the acquisitions we have made have improved our profitability in a good way, which is, of course, our targets also moving forward. Earnings per share, probably Pekka can come back to this a little bit more, if you will. It's a little bit hard to compare because the amount of shares is so much different from the last time -- from the last June and this June because of the IPO we made in the latter half of last year. So it's not very easy to maybe make a comparison of those 2 numbers. Two major things in the beginning of the year were the acquisitions of SEC Scandinavia in Denmark. For us, it was a strategic move to open the Danish market. And in Sweden, we make a strategically very important move of acquiring TD Tunga Delar, which puts us in a very good position in the Swedish heavy commercial vehicle market. I will get back to this a little bit more in detail. What about the COVID-19, the coronavirus? I guess when the first news started to come, I think I was actually presenting the full year results when I got some questions in late February when the first news came from China. I think our approach was, at that stage, how is this going to affect our ability to deliver. And what about the supply chain? Problem is nobody really understood the gravity of the situation from a, let's say, health point of view. So from that point, we made some very swift decisions with our main suppliers for the very important lighting equipment in China, which has long lead times. And we managed to secure deliveries so that we are well prepared for the coming lighting season, which starts actually now as we speak. Regarding the spare part deliveries from the main principals in Europe, we did not really experience any bigger difficulties in getting products from our main suppliers, and we always have alternative sources to get the supply from. So from that point of view, the coronavirus didn't really hit our ability to operate. Then if we look at the safety of our staff and customers, we took measures early on in March already and started to compartmentalize the, let's say, the departments in different facilities and started to promote distant working and telecommuting as much as possible. And actually, all customer visits and supplier visits and all travel was banned to protect our people. Goes without saying that, of course, in March and April, the visibility was really fuzzy. We had to do some saving measures, of course, to protect the cash that we need for the future acquisitions. So we made some saving decisions at that stage with temporary layoffs and restricting the use of external services. And that can be seen in the cash flow later when we look at that one. So I'm happy to say that with these measures, we have been able to guarantee the safety of our people very well and also our cooperation partners and customers. Then a little bit listing the events from January to June. The AGM that we had under special circumstances on June 8 decided to withdraw actually the decision that we had made regarding the dividend. Early on this year, there was a decision not to pay a dividend at that stage. However, now looking at the strong results we have been able to perform during the first half year, we have decided to propose -- or the Board has decided to propose to the AGM on September 8 that a dividend of EUR 0.10 will be paid. Then a small recap of the acquisitions we did in the beginning of the year. SEC Scandinavia, it's not a big company. It's a very niche company, having good customer base on the light commercial vehicle side and also getting into the heavy commercial vehicle side with lighting and power supply management systems. So we still have the entrepreneurs there with a 30% share. Very motivated team and agile company. And we see a good potential to grow the sales of our lighting and electrical equipment products with our own brands in Denmark. And also, this is an important bridgehead for us in the Danish market. The net sales is about EUR 2 million with a roughly 10% EBITDA of the net sales. TD Tunga Delar is a fantastic company as well, run by 2 very dedicated brothers, Mika (sic) [ Mikael ] and Håkan Öbrink, and we are happy to have them onboard, too. We see a good synergy possibility by working together with Huzells, which is our other, let's say, heavy vehicle company in Sweden. Huzells is mostly focused on the bus fleets, whereas TD Tunga Delar is very strong on the lorries and heavy commercial vehicles. Very successful company. Turnover almost EUR 10 million with a roughly 20% EBITDA level. So it's a very good contributor to our profitability. And we are already seeing very good signs of how these 2 companies have integrated into our company. And maybe at this stage, I could say that our policy is not the one-size-fits-all kind of strategy with the companies we acquire. It's more we acquire companies who strategically fit very well into our company and then we draw synergy benefits from, let's say, supply side and partly administration. And other than that, the companies have a fairly good amount of freedom to operate with their concept. Then looking a little bit more from a business point of view, I think I already stated that the growth in net sales is coming primarily from the acquisitions. But there was also a very strong demand for spare parts in Sweden all along the first half year. We do not really know whether this is coming from the fact that the Swedish decisions regarding the lockups were slightly -- or actually quite much different than in Finland, but it might be one factor in this, that the economy was rolling more or less all the time, a little bit more maybe than in Finland. How has the COVID pandemic affected our sales? We do not comment exactly by country and product group. But what I can say is that the product areas that are dependent on the sales of new vehicles, especially light commercial vehicles, which are equipped with lights or power management equipment, there was a slowdown in sales, especially in Sweden where we experienced -- or the market for new light commercial vehicles was really down at some stage of the year. However, there has been recently signs of the new car sales picking up again in most of the markets. So if we look at the spare parts sales even furthermore, I think the increased usage of vehicles is contributing also in this situation. People are probably avoiding or have avoided the use of public transportation and have taken second cars into use, and that can also be seen in the market of the used cars in most of the Nordic markets. One thing that we should not forget when we review the business performance of the first half year was that the winter was considerably mild, and that always has an effect on the sales of specifically electrical spare parts and batteries. I mean if it's minus 30 degrees or plus 10, it's a big difference on the sales. However, that is more like a specific thing for Finland and not so much for Sweden or the other markets. Luckily, the market situation in most countries developed very positively to the end of the first half year period, probably reflecting the confidence of the companies and consumers that they were willing to spend again. So there was a kind of a very rapid curve of recovery. Furthermore, what we did in Sweden, we had 5 companies there, so we did a little bit reorganizing. So we put together actually Startax Sweden, which was our greenfield operation, with the rest of the companies. So we divided the business with the existing companies. And then we also reshuffled a little bit the management. Now we have a very strong local Relais Group, if you wish, in Sweden, coordinating the actions between the different companies. It's not an increase of overhead or increase of manpower actually. So we have been able to restructure the functions in that way that we are now focused on developing the Swedish market as a whole. Actually, we are now able to serve multi-fleet customers, from light vehicles to heavy vehicles and everything in between, even marine sector in Sweden, so -- which reflects also the situation what we have in Finland with Startax company. Another very positive thing that is exactly coming from our strategy, is seeking the synergy benefits from the supply chain. What we have done is that we have been able to harmonize the purchase terms. In many occasions, there has been differences in the purchase prices from main suppliers, and we have been able to, by combining our volumes, to reach better pricing, which then should reflect later on in our ability to compete and somewhat also in an improved GP percentage, if possible. And other than that, of course, the harmonization of product ranges is also ongoing and looking at the cross-sales possibilities between the companies is happening all the time. So all in all, a very special first half year. This is our first half year as a listed company. I guess nobody really could have known what the market is going to be. And all in all, I think I'm really happy of the results that our teams have been able to produce together with our customers. Then looking a little bit more on the net sales growth of 56.3 percenrtage -- %, as I already stated, there are some differences on how the COVID-19 has affected our sales. And I guess I already stated that is coming mostly -- the negative effects are coming mostly on the light commercial vehicle side for the equipment side. And then as I already also stated, that there is a clear -- there are clear signs of an improving market situation towards the end of the first half year. And especially in Sweden, we have seen a very stable market. And I guess this also reflects the defensive characteristics that are inherent in this automotive aftermarket, spare parts and equipment, business. So this is our offtake of the net sales. Then I think, Pekka, you could comment on the profitability, so we -- it's not only my monologue here.

Yes. Thank you, Arni. And good morning and welcome to follow the finance section. As mentioned, we were able to make an improvement in almost every KPI we are reporting and following. And we were able to almost double the EBITDA and EBITA, which are important key figures for us, and also the wide range of the other KPIs, as we can see once we dig deeper in later slides of the presentations. Our presentation, how does this work? I think this headline here is a fair judgment given the overall improvement in KPIs and financial positions. And these balance sheet-based KPIs here have a couple of things in common explaining the changes in year-on-year comparison. One is the directed share issue from February, the newest one, the shareholders of Tunga Delar and, of course, the IPO proceedings from October '19. And it can be clearly seen in all of these balance sheet KPIs. The total of balance sheet has been growing roughly EUR 18 million from last year's June, explained by not only these share issues but, of course, the acquisitions we've been making this year. The group equity follows the same story line here. And the net debt, the IPO proceedings being the major component here explain the improvement. And it applies also the net gearing here and equity ratio. Cash assets have been one of the most important areas to protect and defend during this half circumstances here, and I think we have managed pretty well here. In comparison, with the year-end figure, the decrease is only roughly EUR 3 million given that we have been making 2 acquisitions. And we've been almost able to generate the cash flow needed to buy the cash part of the purchase prices of the acquisitions. We are not far from that. And this is, of course, thanks to our improved cash flow. There's a significant improvement explained by the solid performance by the acquired companies. But it would be unfair not to mention here the solid performance of the existing part of the companies as well. Last year, there was a wide arrangement of financing. And arrangement fees can be overbooked on the cash flow there, and it's explaining partly the improvement but not only. The business performance was definitely the most significant part contributing to the cash flow here. Cash flow of investment here is the net of the acquisition of Tunga Delar and SEC and deducted by the net cash of the acquired companies at the time of the acquisition. Other investments were -- oh, as the -- as Arni mentioned, we're significantly restricting the spending in any investment or development activities during the review period. Financing cash flow is untypical in a way as we, as a part of the prepared measures, applied and were granted a repayment holiday regarding the term loan we have from -- based on the acquisition last year. And that's why this is 0. And we didn't have any other financing transactions or activities during the review period. Last year, there is a kind of bigger amount in that side, and that was explained by the acquisition and rearrangement of financing once we acquired ABR and Huzells. And there is a list of some of the key figures we are following. And as mentioned, there are significant improvement. As mentioned, there's -- EBITDA and EBITA were almost doubled, and this is, as mentioned once again, explained partly of the acquisitions but also the solid performance of the old part of the company -- parts. EBITDA margin was not far from the full year EBITDA margin of 2019. And this is important as typically, the first half year is lower in profitability and traditionally have been. But these acquired companies doesn't apply that much seasonality in their business as the Finnish business has. So probably in future, it might be more even between the first and second half year. Earnings per share. As Arni mentioned, there is a significant change in the amount of shares here affecting the comparability. We have 3 types of key figures here: one, the basic earnings per share; another, comparable earnings per share, excluding the items affecting comparability. This year, we didn't have any, and last year, they were related to the financing and listing expenses. So these 2 this year are exactly the same. And the third one, where we exclude the amortization of goodwill, is here. And the -- here, we can actually see the impact of the change in the amount of shares. We are a little bit lower in year-on-year comparison, although where profit were significantly higher. Personnel, there's a change. More than 30 new colleagues along the acquisition of Tunga Delar and SEC joined us during the review period. Thank you.

Thank you, Pekka. And all in all, a very good performance, as I said. And also good to see that there's a solid, let's say, cash conversion coming from the stability of this business and the good performance of our companies. Major events. We just picked one, which we have already basically revealed in the beginning. So we -- the Board decided to present to the AGM a dividend of EUR 0.10 per share. I think this reflects our confidence in the situation. Having said that, of course we still feel there's an ample amount of lack of visibility for the rest of the year. But anyhow, we feel that this was something that we were able to do based on the first half year results, as an effect of that. Then a recap of our strategy and financial targets. At the moment, we have 6 companies or concepts, if you will: Startax operating in Finland, the Baltic states and Norway; then in Sweden, ABR, which is mostly focused on the spare parts of passenger vehicles; SEC, as I explained, in Denmark, who sells -- the company mostly focusing on buses and trucks; and then Awimex, the niche, specialized company on the lighting and power management solutions for light commercial vehicles in Sweden; and then TD Tunga Delar focusing on the heavy side of the vehicles in Sweden. Our concept, how we define the market, how do we fit in this value chain, we kind of launched this concept of vehicle life cycle enhancement when we listed the company in the First North Growth Market list. And what we mean with a life cycle enhancement is that when a vehicle is manufactured, imported and resold, then here in the local markets, a lot of stuff happens then afterwards for the vehicle. So part of the aftermarket that we are operating in is in the areas of customizing and equipping when that vehicle comes into the country and then it's equipped with various type of equipment like lights or power management and so on. Then there is a wholesale and distribution part of the value chain for these parts and equipment where we operate. That's the core of our operations. And then further down on the value chain is the local sales of parts and equipment, and then there's a service and repair function. And at the end of the life, the demolition and recycling. So this is the kind of a life cycle of the vehicle. And everything that is done after the vehicle comes from the factory is basically the enhancement somehow of that life cycle, i.e. the vehicle is repaired if a part gets broken or damaged or anyhow needs changing, or then you equip the vehicle with something to improve the usability of the car, better lights or better power management and so on and so forth. So the core of this operation for us is to act as a regional -- let's say, looking from a Nordic perspective, regional then national, in the country level, wholesaler and importer of parts and equipment. And it's not only, let's say, "only" wholesale and import. We do have a lot of own brands, which is important to understand as well. So it's not only representing others, it's also our own operations. So this is the way we operate. And we cover through our partners on the customizing and equipping. And on the local distribution, we cover basically all vehicles in this Nordic and Baltic market. How does our strategy look like? I mean we defined a long-term target in the summer of 2019. Before -- or at the time when the decision to list the company to First North was done, we put ourselves -- to ourselves the target of doubling the turnover in 5 years. And how do we get there is through organic growth, which is supported by targeted synergies. I explained already before how we synergize between the companies by taking fairly light measures to get actually the synergies. We do not have to make heavy integrations, which take a lot of time and cost. We choose the companies that we acquire already so that they have a good strategic fit even and -- as a stand-alone company. We see that there's a lot of potential still. And there is a lot of potential in the Nordic market for further consolidation of the vehicle life cycle enhancement business. So there, we see a good potential to speed the growth of our company and to reach this doubling the net sales in 5 years from 2019. Our strategy is also to all the time add value to our customers with digital solutions. Most of our orders already and interaction with the customers is happening through digital platforms which are owned, developed. And we add a lot of additional features to our catalogs and digital tools, which give added value to the customers. It's easier to find the right product that you need. Customer service, we have tens of dedicated people answering phones and customers also calling and wanting to get information on which part exactly fits and how do you install it and so forth. How does the underlying market look like? As we explained when we -- in connection with the IPO, there is an approximately 19 million vehicles rolling around the roads in Nordic and the Baltic countries, everything from light commercial vehicles, passenger cars to heavy commercial vehicles and off-road heavy-duty machines. What are the market drivers supporting our strategy is that there is always a need to get from one place to another. I mean it doesn't disappear whatever happens. People and goods need to be transported by some means of transportation and vehicle. The number of vehicles has been steadily growing in the Nordic and Baltic markets during the past decades, and we foresee that to continue. The technical innovations, which make the vehicles more complicated, require more service, and also the amount of components support the business for the type of company that we are. The aging of vehicles is a bit interesting as well also now during the COVID times. As we have seen in most European countries, the sales of new passenger cars and commercial vehicles has gone down. This most likely will contribute to the aging of the vehicles, i.e. they need more spare parts and repair in the future. The use of vehicles is varying. Of course, this is a difficult year to draw a lot of conclusions on the usage of vehicles. Maybe we saw, especially in Finland when there was the lockdown period, less use of vehicles in -- especially in the Helsinki -- Greater Helsinki area. On the other hand, the consumer behavior changed in a way that people ordered goods online, which increased the need for transportation in most of the countries for the commercial vehicles. So they were driving the goods to the consumers. And then the new vehicles is one driver, and it's good to see that it's picking up again on the light commercial vehicle in many markets. So partly recapping the market trends a little bit further on those. The changing vehicle powertrains, there is a development of hybrid technology taking over more and more market share, especially on the passenger car segments. Full electric vehicles, also coming. We see this as a huge business potential. Hybrid car is more complicated than a normal internal combustion engine car. And also, the full electric vehicles offer interesting possibilities for future business for us. There's a lot of data generated by vehicles. The amount of sensors and electrical components is increasing. Digitalization of customer interaction, I sometimes get questions about, okay, how are these new digital players affecting your business? Actually, we have been digital already over 10 years. Maybe we haven't done a big enough number out of it. But as I said, most of our interaction with our customers happens through the digital channels, and we are, I would say, fairly advanced with those. And many pure players or, let's say, pure online players actually do not have probably so much to give compared to our kind of company, who already also has a warehouse of -- and a stock of the products near the customer. Consolidation is supporting our growth. Both on the supplier side and the distribution side, there's consolidation happening, and we are well positioned and prepared to drive that consolidation in our market. And then last, the increasing complexity of the vehicle components, as I said, is supporting our business. Here, I want to recap the long-term financial targets and dividend policy. They have not changed. So there's nothing new here to say from what I have said, but I just want to recap how we see the market. As I stated, we want to double the net sales through a combination of organic and acquired growth. How we see the market has developed during the last years have been roughly between plus 1% to 3% in most of the markets. Of course, this year, it's really hard to predict from a market point of view how it's going to behave. But it's not growing definitely 1% to 3% in most of the countries, looking at the general market situation in many countries. Our aim on the M&A is to purchase or acquire 1 to 2 companies with good strategic fit every year. We have already bought 2 this year. It doesn't mean that we will not do anything this year. It can be 5 one year and 1 one year. So we grab good opportunities. And here, I can say that we are screening the market all the time, and I hope to be then able to then, of course, inform more when and if something happens on this side. But we are active on this side, and it's a core part of our business, the buy-and-build strategy. Dividend policy, we remain on the dividend policy. We keep it as targeting to pay 30% of the average comparable profit of the group, excluding amortization of goodwill, over a business cycle. And then, of course, as we already saw, some extraordinary events can affect this, as it looked like in the beginning of the year. But now we kind of reverse the decision and were able to present the idea or the decision to pay the EUR 0.10 dividend. How does the rest of the year look like? Despite the fact that we are positive about the performance that we have been able to reach for the first half year, we still estimate that there's so much lack of visibility for the rest of the year that we refrain from giving a new guidance for the year. This is purely and only coming from the COVID-19 situation, where I don't want to speculate, of course, but any severe second wave with big lockdown activities can cause disruptions in the market that we cannot foresee. So from that perspective, we refrain from giving a new guidance. Then, Pekka, maybe you want to quickly, for the end of the presentation, comment the share price development and the shareholders?

Yes. I think this curve here speaks from -- for itself, but I'd like to point out the market cap at the end of June, roughly EUR 125 million. And once we go further, we find the statistics regarding shareholders, and we are really happy to detect the number of shareholders who have stayed with us during these exceptional times, probably from the IPO, most of them. On the list of the major shareholders, no major changes. A couple of shareholders have changed places in this chart, but not any major changes during the review period.

Right. Thank you, Pekka. And as you can see, the share price kind of followed very much the general situation on the stock market with the plunge in -- when the COVID effect started to come. And hence, it has recovered. For the final slide before letting you pose the questions, a brief summary. Profitable growth in exceptional circumstances. I think this exceptional circumstance is, in a way, an understatement. Nobody could have known how this first half year is going to look like. And I think all in all, it has demonstrated our ability to implement our strategy then and also it works in varying market situations, and also the fact that it is a fairly stable market and we can actually then also meet the demands of our customers. And we were able to supply all the time. There were not a single case almost where we could not meet the demands from our customers because we wanted to be prepared for the market to pick up again. Yes, the net sales effect mostly in March, April because of the COVID-19 pandemic. And mostly, I think it was probably also a little bit of a psychological effect, especially in Finland, where people didn't dare to trust on the future of the economy and hence also didn't want to spend too much money; and also probably a little bit of decrease of transportation needs in Finland. Profitability improved. As Pekka explained, the kind of company mix that we have at the moment, the companies that we have acquired during a couple of last years has improved the profitability all in all. But also, I don't want to take any glory away from the performance of the existing units as well, which have contributed very strongly. The cost control, we took measures, as I explained. And I also want to thank the personnel of giving your contribution in this common task of protecting our ability to implement our strategy. As a result, our balance sheet and financial position have increased. We have a good cash conversion ratio, which is very positive, thinking about our ability to finance the acquisitions in the future. And hence, the decision to propose for the AGM the dividend of EUR 0.10, as I said, reflects our confidence that we can meet also exceptional circumstances in the future. So I feel we are well prepared for the -- for whatever is coming there in the future. So I want to thank you for my and also Pekka's part. And then I would be willing to entertain some questions, if any.

Erkki, please. Adjust the microphone. Yes. Yes.

Erkki from Inderes. Three questions from me, if I may.

Yes.

First, you said the organic growth had been fairly good. Any kind of ballpark figure would be helpful.

We do not comment specific units' performance on that level. But I would say that there was a little bit better than the market development in Sweden in some units.

No, I didn't quite get you there, the organic growth on group level. I mean is it possible to calculate, I mean, on a pro forma basis?

I didn't comment the organic growth on the group level. So my comment was based on the solid performance in the Swedish marketplace.

Okay. And then looking forward, the second wave of COVID-19 obviously already in full swing. What do you say? What's going to be different this time, if anything, as compared to the first half year?

This is virtually an impossible question. What is going to be different for us, I can...

That's my question.

Yes. Not so much. I think we are more prepared, I would say, that -- of course, our main concern is the safety of our employees. And there, we are following the regulations and recommendations coming all the time. So we need to make sure that we keep that in mind. And we will be more prepared now to take swift action if needed. So we actually continue the distant work policy and compartmentalizing the different departments in the companies. But from a business perspective, we are well prepared for anything to happen during the latter half of the year.

Okay. And finally, is there anything you can say about the development in July, early August vis-à-vis development a year ago?

We do not really comment in the mid- of the coming review period. But I could say that we are positive about the outlook. In that respective, at the moment at least, the markets look confident. But I would say that we are cautious as well because of the COVID-19 situation so that -- hence, we do not give a guidance for the rest of the year. Thank you. And then do we have questions from the webcast audience?

Yes. There's one question from Joni Sandvall. Have you seen any pickup in logistics costs for sea freight, et cetera?

Thanks, Joni, for a good question. No, we haven't really seen a remarkable increase on the freight cost. No.

That's all from the line.

Okay. So -- more questions coming still from Erkki.

And I'll -- I have a couple of follow-ups, if I may.

Go.

Two of the big -- I would say, the biggest threats that really has, if anything, is that the big car importers would have more direct supply agreements with the spare part manufacturers. Do you see any of that happening?

No, I would actually turn that the other way around and say if you refer to the, let's say, OEM part of the business.

Exactly.

Yes. So if you think about most of the players in the OEM side are concentrating on 1 or 2 brands, then they want to seek more business by having a multi-brand service for, let's say, what we call the second wave cars. Now we are talking about cars that are in the sweet spot of our business, let's say, 3 to 5 to 7 years old. It doesn't make any sense for most of the OE players to carry such a big amount of spare parts in their own warehouse. They can only do it for some of the focused brands that they carry themselves. So I see a big potential for a company like us to operate together with the OE side to offer them the local support with the spare parts for the multi-brand service function. So we have not experienced actually that kind of -- I wouldn't even call it a threat. I actually call it an opportunity because we do have actual cases with big distributors or the car distributors in the Nordics where we support them with our spare parts and equipment. So it's a huge opportunity for us.

And finally, okay, we are living exceptional times. But have you seen any signs of increased competition from Continental European companies like Inter Cars, for instance?

Nothing has changed from what it has been in the past. We do occasionally see them, yes, but it has not changed from what was, let's say, explained last year. So there's -- oh, competition is always, of course, welcome. It keeps us awake. But nothing exceptional is coming or has being seen, I would say. Thank you, Erkki. So I guess we will wrap up the presentation, and I would thank everybody for following it. And please follow Relais also in the future, and we will keep you posted in any future developments. Thank you from my side.