Tessenderlo Group NV (TESB) Earnings Call Transcript & Summary

Hello, and welcome to the Tessenderlo Group 2020 Results Call. My name is Jess, and I'll be your coordinator for today's event. [Operator Instructions] I will now hand you over to your host, Stefaan Haspeslagh, to begin today's call. Thank you.

Good afternoon or good morning to everyone. Welcome to our conference call in respect of full year '20 results. We would like, as always, to start with some key events. One of the key events is in respect of T-Power, where we have started filing the relevant applications in order to participate to the Belgium capacity remuneration mechanism in respect of the construction of the second gas-fired power station in Tessenderlo, which is next to our existing gas-fired power station. The project is on track to deliver the required inputs and to participate to the CRM auction. If we are successful in this auction, then the plant should be operational by November 1, 2025. [Technical Difficulty]

Sorry for the interruption, but apparently there is a technical problem. We are trying to solve it now so that the webcast can also be followed by all participants. [Technical Difficulty]

I'm sorry for the technical problem, which I'm hopeful to be resolved by now. We had also an incident that occurred at the Bakken plant where our ECS installation due to lightning has been basically completely destroyed. Following this incident, we will be looking what we should do with the remaining of the installation. But I can tell you, we have the assets what remains at 0 value in the books and the impact on our EBITDA is immaterial. We had also some key events after the end of the year. One is quite important, Tessenderlo Kerley International is starting to build a new fertilizer plant in Western Europe. [Technical Difficulty] So we are looking right now to get the permits and start the construction of a new Thio-Sul, ammonium thiosulfate, manufacturing plant in Geleen in the Netherlands. The reason why we want to build the plant there is because we have the raw materials in the vicinity. Secondly, Geleen is situated in an industrial chemical park where facilities are available. And thirdly, Geleen is situated in the middle of our market where we have ease of connection by truck, rail and by barge. Next to that, we started also the study to invest a Thio-Sul investment in Eastern Europe in order to support the qualitative and productivity increases of agriculture in that region. Now countries like Belarus and Ukraine are considered quite important for the future in Ag, and so we want to participate in making sure that productivity can increase by applying our products and that we can have a better quality. In view of the trend of organic fertilizers and the importance that the European Commission has given to this, we have started Bio-valorization segment. A couple of years ago, we bought the remaining shares of the company Violleau in France. Violleau is transforming C2 material from Akiolis into fertilizer, and they have various formulations to bring these products to the market. We have the vision of European Commission, Farm to Fork, whereby 25% of the acreage in Europe, they want to have it on an organic basis. So we believe in this future, and we really want to participate in the growth of the organic farming. What has been impacting us a lot last year and this year is the COVID-19. So we can tell you that right now we are doing our best, and as we have been doing to keep our people safe and make sure that they work in good conditions and they can go home in good conditions. We have been really supported by the goodwill and by our people to keep our plants and our businesses running, and we thank them very much for their support in doing so. We have activities in essential sectors like fertilizer for agriculture, production of drinking water, treatment of used water. We are maintaining the quality of the meat chain. We are making sure that used water is transported and people are provided with drinking water. We are producing electricity. So as a group, we have been operating in essential sectors. Today, all of our plants and activities are running normal, in line with expectations. However, we are faced with difficulties in supply chain coming to our plants and going to customers, and we are also faced with increased prices of raw materials. And so it's quite a volatile environment that today we are operating in. So that's about the COVID-19. Kurt, maybe you can update us on the results.

Thank you, Stefaan. If we look at the results of the second half of 2020 and also of the 2020 results, on the left side of the table, you can see the results for the second half of the year and you see that the revenue, in fact, when excluding the foreign exchange effect, has remained stable at about EUR 800 million while the adjusted EBITDA in the second semester has increased when excluding the foreign exchange effect by 16% to end at EUR 133 million. For the full year 2020, we see that the revenue has remained stable at EUR 1.7 billion. The adjusted EBITDA has increased to EUR 315 million. As reported, it's an increase of 17.5%. When excluding the foreign exchange effect, it's an increase of even 21%. And on the table, there's a second table below, you can see the reconciliation between the EBITDA of last year and this year, we go from EUR 268 million to EUR 315 million. We have a foreign exchange effect of minus EUR 9 million. We have some small scope changes. But in total, we have an internal growth of EUR 55 million. The profit and loss for the year. We ended the year at about EUR 100 million, in line with our results of last year. However, we also should take into account that there are some exchange losses on intra-group loans, mainly in U.S. dollar, which are not hedged, and this had a negative impact in 2020, while there was a positive impact in 2019. When excluding these results, the total net result for 2020 would have amounted to about EUR 129 million compared to EUR 90 million in 2019. Capital expenditure amounts to around EUR 100 million, in line with what we had in prior year. A lot of investments have been done in order to execute further strategy of the different BUs. We have investments in the valuation of gelatin sidestreams. We had the optimization of the valorization also of the animal byproduct investments. We had storage capacity that we have expanded mainly in the Agro segment. We had advanced payments and also capital expenditure made for equipment replacements and plant upgrades, mainly within Agro and T-Power. And of course, we also had the acquisition of equipment and vehicles which were previously leased. The operational free cash flow for 2020 amounts to EUR 190 million compared to EUR 120 million last year. This increase is, of course, impacted by the increase of the operational results. And also last year, there was a negative cash impact because of the impact of the change of trade working capital of about EUR 20 million while this year, this impact was rather insignificant. So in total, we had an operational free cash flow after deduction of the IFRS 16, so the lease cost of EUR 190 million. Helped by this free cash flow, the net financial debt was able to reduce significantly from about EUR 350 million to around EUR 200 million at the end of 2020. The net financial debt of the EUR 200 million also includes lease debt for about EUR 50 million, EUR 55 million. If we look at the group revenue per segment, as was also the case in previous years, each one of the 3 big segments, in fact, they contribute about 1/3 of the total revenue. T-Power -- the T-Power segment contributes about 4% to the group revenue. The group adjusted EBITDA per segment, we see that the Agro segment contributes about EUR 125 million to the group EBITDA. It's about 40% of the total group. Bio-valorization last year EUR 57 million has increased to EUR 82 million. It's about 26% of the total group adjusted EBITDA. Industrial Solutions and T-Power each contribute about 17% to the group EBITDA. If we have a brief look to the different segments, the Agro segment, the revenue of the second half of the year decreased by 6% for the full year. There was a minor decrease of about 2%. The Crop Vitality revenue remained stable in 2020 as the lower volumes of the second half of the year could be offset by the higher volumes that we had in the first half of the year. In fact, the volumes in the second half of the year, they were in line with expectations. As we mentioned already before, part of the Agro season in the U.S.A. shifted from the second half to the first half of the year, being impacted by weather conditions. NovaSource revenue remained stable throughout 2020. And the 2020 revenue of Tessenderlo Kerley International decreased due to lower SOP volumes, mainly a decrease in volumes that we noted in the second half of the year. Crop Vitality adjusted EBITDA increased in 2020, thanks to favorable market circumstances, while the 2020 adjusted EBITDA of NovaSource and Tessenderlo Kerley International remained stable. As you can see in the table, the adjusted EBITDA in the second half of the year decreased by 5% when excluding the foreign exchange effect. But for the full year, we still saw an increase by 8%. For the Bio-valorization segment, there was an increase in the second half of the year and also for the full year, second half of the year plus 6%, plus 7% for the full year. The revenue of, as well, PB Leiner and Akiolis increased in 2020, thanks to favorable market conditions and an improved product mix. If we look at the adjusted EBITDA, the adjusted EBITDA in the second half of the year increased by 1/3 to EUR 37 million. For the full year, we saw an increase of the adjusted EBITDA from EUR 57 million to about EUR 82 million. When excluding the foreign exchange effect, that was an increase by 56% or about EUR 32 million. The 2020 adjusted EBITDA increased, thanks to the favorable market circumstances but also realized efficiency improvements. We have to mention that the COVID-19 pandemic impacted the evolution of the revenue in the second half of the year, which also had an impact on the aging of our inventories, resulting in an additional inventory write-off in the second half of the year for an amount of about EUR 7 million, while the depreciation of the inventory write-off last year in the second half of the year was rather insignificant. The third segment of the group, Industrial Solutions. Here, we saw, in the second half of the year, an increase of revenue by 3%. But for the full year, we still noted a decrease by 3% of revenue, and the revenue ended at EUR 509 million in 2020. What we saw was for DYKA Group, there was an increase of revenue in the second half of the year, mainly thanks to the contribution of the acquired production plant in La Chapelle-Saint-Ursin in France, which was able to compensate the decrease that we noted in revenue in the first half of the year, which was at that time impacted by the corona pandemic. As you recall from our half year results, the production at the French plant in Sainte-Austreberthe was disrupted during a period of time in the first half of the year and also a number of GDP sales branches in United Kingdom were temporarily closed. The cessation or the stop of S8 Engineering activities also led to a loss of revenue in 2020, while the revenue of the other activities within Industrial Solutions remained stable in the year. If you look at the adjusted EBITDA, we saw a big increase of the adjusted EBITDA in the second semester of 2020. It increased by 73% to EUR 28 million while the adjusted EBITDA for the full year increased by 29% to EUR 53 million. The lower adjusted EBITDA that we had in the first half of the year for DYKA Group was more than offset by its result in the second half of the year, mainly thanks to the volume increase. But also the favorable development of input costs as well as cost-saving measures to mitigate the impact of COVID-19, they further positively impacted the adjusted EBITDA of the year. The adjusted EBITDA of Performance Chemicals, it remained stable in the first half of the year, but it increased in the second half, as you probably also recall, the second half of 2019 was impacted in a negative way by technical issues in Loos. And these technical issues did not occur any longer in 2020. So the result was positively impacted in the second half of the year. The stop of S8 Engineering has a positive impact on the evolution of the adjusted EBITDA in 2020, while the adjusted EBITDA of Mining & Industrial slightly increased. The fourth segment of the group, T-Power. T-Power contributed about EUR 70 million to the group revenue, about EUR 54 million to the adjusted EBITDA of the group and these results were in line with expectations as T-Power fulfilled all the tolling agreement requirements. The positive evolution of the adjusted EBITDA compared to prior year was mainly realized, thanks to continued cost optimization, partially offset by ongoing development expenses for the construction of the second gas-fired power station in Tessenderlo in Belgium. We mentioned it also in our August -- sorry, in our June results, during the August call, that Tessenderlo Group started -- at the beginning of July, started finding all relevant applications in order to participate in the Belgium capacity remuneration mechanism tender. If you look at the reconciliation between the 2020 adjusted EBITDA -- or the EBIT to the net profit, we see that we start with an adjusted EBIT of about EUR 184 million. And then we have some EBIT adjusting items, minus EUR 8 million. You see the detail just below. Gains and losses on disposals, almost plus EUR 5 million, mainly following the sale of the former HQ building in Phoenix. We have impairment losses for minus EUR 3 million. These are more -- these are the impairment losses on assets, which will no longer be used, that they also include the impairment of assets which were destroyed following the fire incident at Environmentally Clean Systems. Provisions and claims also had a negative impact of about EUR 5 million, mainly related to the change in the discount rate, the decrease of the discount rate used or applied to the group's environmental provisions. The decrease of the discount rate made the provisions increase, which had a negative impact on our income statements. Other income and expenses, minus EUR 4 million, mainly related to the electricity purchase agreement, which is not for own use anymore, as we also had in previous periods, partially compensated this year by the bargain purchase gain, following the acquisition of the activities of DYKA Tube. Like that, we come to an EBIT of EUR 176 million. The net finance costs, minus EUR 40 million. The regular finance costs of the group are, in fact, EUR 10 million. But here, we see the impact of the exchange losses for about EUR 30 million. Income tax expense, minus EUR 35 million, still mainly related to our operations in the United States. The share of result of investments, minus EUR 1.9 million. So in total, this brings us to a net profit of just below EUR 100 million. And as mentioned, without the exchange losses, the result would have been around EUR 130 million. This brings us to the outlook for 2021. We still anticipate a continued high level of uncertainty in the first half of the year due to the ongoing corona pandemic, where the development of customer demand and margin is exposed to increased risk. However, based on the current available information, the group expects that the 2021 adjusted EBITDA will be in line with the adjusted EBITDA of 2020. And this guidance already takes into account the expected negative foreign exchange effect in 2021 following the weakening of the U.S. dollar at the time of this press release. To finalize a brief look on the financial calendar, the publication of the annual report will be early April. The Annual Meeting of Shareholders will be on May 11, and we will publish our results -- our half year results for the year 2021 at the end of August, August 26.

Thank you very much, Kurt, for this clear explanation. The year 2020, we will not forget very fast because we were faced with a phenomenon that affected us as a company and as an ourselves as private individuals in our professional and our private life. We have never been going through such a period, and we really hope that now the vaccine rollout will really progress well and will help all of us to go back to a normal life, a normal life for us and for our companies. Right now, it's quite challenging because of all supply chain issues which are happening right now all around the world and with the impact on the cost of raw material. COVID impact, which is right now not only having an impact on raw material and supply but also having an impact on the people taking, consuming and using our products. That's why we have given the guidance for a comparable situation, '21 to '20. Our company stands for Every Molecule Counts. This means that during the past year, despite all crisis, we have been continuously looking for a better valorization of the streams that we get into our company, and we are also continuously looking for a reduction of our footprint and processing these streams to the highest possible value. Therefore, we have teams continuously working on opportunities to create a better future for the streams that we are getting in-house. So I want to close this meeting, and we are open up for your questions right now.

[Operator Instructions] And the first question comes from the line of Mutlu Gundogan from ABN AMRO-ODDO BHF.

A few questions. I'll ask them one by one, if that's okay, should make it easier for you. So to start with Agro, can you tell us, looking at 2021, the start of the season, what kind of volume growth have you seen so far?

Mutlu right now, the season is just starting, so it's very difficult to see and tell you how the volumes are evolving. I believe that in most part of the Northern Hemisphere we have not started the planting yet. So this is still a way to go, and we have no clear view yet. However, our logistics supplies chain is ready to serve our products just-in-time to the farmers and the distributors.

All right. And then relating to your guidance, what kind of volume growth have you assumed for Crop Vitality and Tessenderlo Kerley International in 2021?

As I told you, in our guidance, we have been looking what we realized last year, and we believe that this is a good basis for the next coming year.

So does that mean flat volumes?

This means that we will have volumes in the same level as the previous year, yes.

And then on the expansion in Geleen, can you explain why you have chosen for greenfield here and not a brownfield in [indiscernible]. And also from who will you source the ammonia?

We are doing the investment in the Chemelot site where this is the older DSM site, where DSM has divested quite some activities to other companies. However, there is space available to build our factory. So we are building our factory in the middle of a chemical complex with various industries where ammonia is available and where sulfur is available in the vicinity.

And then just a final question on this. What is the CapEx relating to the expansion in Geleen? And how should we think of phasing?

We have given a guidance on CapEx -- or we give the guidance on CapEx on the same value as the previous years. These are CapEx projects going over various years, and we believe it will be realized within our total portfolio of about EUR 100 million a year.

Right. But you won't give a CapEx on this [ project ] alone?

No, we don't give individual -- investment details on individual projects [indiscernible].

Understood. Understood. Maybe if I just can, an add-on question on this point, because in your press release, when you talk about Eastern Europe, you talk about a significant investment. So should we think of the investment in Geleen as similar to [indiscernible] in terms of size?

You could -- we are -- it's similar, correct. We are always looking for the same type of production units.

The next question comes from the line of Wim Hoste from KBC Securities.

I have a couple of questions also. With regards to come back to the discussion on the Geleen side or facility you will construct, can you maybe elaborate a little bit on the raw materials access? And to what extent is that secured in long-term contracts? Can you confirm you have like 5- or 10-year contracts in place before you start building that for both, let's say, ammonia and sulfur?

Okay, I can tell you that for sure we will take care that we have long-term supply of our raw materials. You must know that Rotterdam refineries are nearby and that ammonia is available on the Chemelot site itself in Geleen.

Okay. And then a bit general question. Can you given that -- we are in 2021, already almost 3 months done now, can you maybe business-by-business give a little bit of an overview or division-by-division an overview of, yes, how trading has evolved? You already made a comment on Agro, but how are the Bio-valorization subsidiaries and also Industrial Solutions, what have you seen there in terms of order books and volumes, et cetera, for the first months of the year?

I can tell you that we are satisfied in respect of our performance, taking into account the outlook that we have given.

And so the comment you made on kind of flattish volumes for Agro, is that also the kind of guidance we should read into in terms of volume evolution for the other divisions then?

Yes, you can. We give a global outlook which is for the total company, all businesses added up. That's why we're giving you a flat outlook compared to 2020.

Your next question comes from the line of Christian Faitz from Kepler Cheuvreux.

2 questions from my side, also on the raw material side again. I assume you're hedged in your SOP production in terms of raw materials. Could you please confirm that? And then on raw materials and Industrial Solutions, how much are feedstock prices eating into Industrial Solutions margins at the moment or are you able to pass this on directly to your customers?

That's a lot of questions at one go. In respect of raw materials, the big volumes normally in this type of chemical business, we contract the volume and then the prices are most of the time index linked. The second point I think you are talking about DYKA business, correct?

Yes, yes, indeed.

There indeed, we see also, I can say, an explosion of prices. We are there in the same situation. And I can tell you that in all our business we are trying to pass on to our customers the raw material cost price that we are facing.

The next question comes from the line of Frank Claassen from Degroof Petercam.

Frank Claassen from Degroof Petercam. 2 questions, please. First of all, on Bio-valorization, you indicated that the second half, you saw impact of the pandemic. Where did you see the impact? Because it seems that in the first half, you did not see so much impact on Bio-valorization. So some explanation there, please? And then secondly, on the China JV, you announced with the half year results of the collagen peptides in the Marine business, how is that going? And can you update us how is that project going and when do you expect to see the first contribution from the JV?

Okay. In respect of the first question, what we have seen in the second half of the year, that consumption of gelatin, mainly in Europe, has been going tremendously down. And this has been impacting the -- mainly the second half and also last quarter of last year, having an impact on volume and price. Second point, the Chinese joint venture, we are very satisfied about the cooperation with our partner. And I believe we are still on track to start producing, I believe, first half of 2023.

The next question comes from the line of Christophe Beghin from Kempen.

I have a question first on Bio-valorization. Can you guide us a bit more into 2021 because one of the peers you have in that segment, as we know, Darling Ingredients is guiding pretty bullish on the market, both on the rendering business due to the favorable dynamics in fat pricing, protein, meat bone meal and on the other side, in the gelatin/collagen peptide business, they also see strong growth in volumes. So I'm a bit -- yes, I want to hear how you look at -- is it in a similar way?

I believe the competitor colleagues you are talking about is quite a bit U.S. oriented, but we are more Europe oriented. Indeed, we see the fat prices at historical high levels, which is also having an impact on the price we pay for our raw materials. So this is partially communicating. The second thing is in respect of gelatin. There could be an upswing depending on the vaccination and the opening up of the economy, but more towards the end of the year. And that's why right now, what we see is we go for a stable outlook, but then we hope in August to have a better view on the second half of the year and guide you there.

Okay. And then a follow-up on that, if I may. The Santa Fe production facility in Argentina, is it already running at close to full capacity?

Well, as you can imagine, the ramp-up there has been delayed because of COVID. But certainly, the consumers were consuming less collagen. So the ramp-up has been late basically for 1 year.

So that's likely to gain up in 2021, you mean?

Depending on the opening up of society that the consumer will start buying more such products.

Yes. Okay. And a follow-up. Of course, you signed SOP sale agreement with Kemira and to what extent could that contribute to the Agro division? Is it -- are we talking about a couple of millions? Is it above EUR 50 million? How significant is the contract?

We are very satisfied with that contract because it adds some grades of product that we did not have in our portfolio. This will be a learning curve because this product is produced quite far away. It's produced in Scandinavia. So we will have to learn about this product and see bit by bit how we place it in the market. It's like a bit starting up a new factory. There will be a ramp-up phase, understanding the opportunities and the threats having these products in our portfolio.

Yes. And third question and I will queue in again, but the inventory write-off at the Bio-valorization that was mentioned in the press release, can you tell me to what product this has to do? Is it collagen peptide...

This is gelatin products, gelatin-related products.

Because typically, these type of products have a quite long shelf life.

We have taken no risk in respect of these products because it's a mix of all type of qualities in there. And this is why we have written them off in view also of the problems in the market that we see right now with the economy not opening up and the consumer not consuming more. That's the reason why we decided to write it off. But we'll disclose -- have to disclose it also at the same time.

[Operator Instructions] And the next question comes from the line of Stijn Demeester from ING.

I have a follow-up on the CapEx profile over the next couple of years. When you guide for EUR 100 million of CapEx per annum, does this include the 2 Thio-Sul investments or just the 1 that has been formally announced today?

Well, the one -- there is one announced today, which is the plant in Geleen, and the other one is right now in the study phase. But EUR 100 million indication includes all expansion plants and all maintenance CapEx that we normally spend in a year's time over the next coming years.

So it doesn't include the second Thio-Sul plant?

It will depend on the study phase. So all will depend when we will be able to start the investment, how long it will take. So this is all not being defined right now. Still under investigation.

I assume this EUR 100 million also doesn't include the T-Power investment.

Unfortunately, it does not.

So can you guide us roughly on the CapEx outlay for the second plant in the ballpark are you thinking or should we sort of start to model it or thinking about modeling it?

Right now, we are in the analysis phases on the technical side of the T-Power plant. So we don't have yet all clear figures, but we believe it will be quite a bit over EUR 500 million.

Okay. So that is what has been reported in the press. So what range should we see leverage of the group over the next years?

Sorry, can you repeat?

What range should we then see -- if T-Power proceeds, in what range should we see the leverage of the group over the next years?

Well, if you look, we have a free cash flow generation of about EUR 100 million a year, after EUR 100 million investment and after about the EUR 100 million repayment of loans and other financial elements. And so if you -- if we have to have the plant ready by 2025, which is still quite a way ahead, we will see how we make the financing, by which I want to indicate, we are creating EUR 100 million excess cash right now. Secondly, we have a bond that is expiring, and we have about EUR 230 million on the bank account, which is also about the total value of the bond. So we have quite some options there to look into the financing of such a plant, knowing that the current T-Power financing has been done on a project financing basis. So right now, we are studying what are the options, how will it work and we will keep you informed on the progress of the financing of the project.

Okay. Final question is when you guide for sort of start of production in the first -- in November '25, when do you assume to start building or what is the assumption there?

It's about, I would say, 3 years ahead of that.

Okay. So it takes 3 years to sort of build it.

All right. Thank you.

The next question comes from the line of Mutlu Gundogan from ABN AMRO-ODDO BHF.

Yes, I had a few follow-up questions. Relating to the study you're doing in Eastern Europe, in the press release, you talk about major Thio-Sul investment, can you just explain what you mean by that? Does it mean that you're going to build several plants in several countries? Does it mean you're going to build 1 big plant? And what are the parameters you're looking at? Are you looking at like the expansion in [indiscernible] and like the expansion in Geleen? Are you looking at chemical sites with availability of raw materials? Can you just help us the thought process?

So the plants we are looking at are about of the same size and for us are all major investments. So there is no differentiation how we should read this between what we are starting in Eastern Europe, what we will start in Geleen or what we have started in France.

All right. And if I look back at the last few years in terms of Agro, where we have been investing, it has been, obviously, in the logistical part in the U.S., but not so much on the production side. Production-wise, I believe, that you've debottlenecked the plant in [indiscernible] you're now building a plant in Geleen, you're starting a plant in Eastern Europe. So can you just tell me why not expand in the U.S.? We know that, obviously, one of your competitors has added capacity. But don't you think the market allows for future growth?

We are following the growth in each of the markets. Depending on the evolution we foresee, we will take decisions in respect of where the product should come from, if it should come from local production or how should we approach this. So we're keeping an eye on this. And if required, we will come forward to a decision in respect of investment in additional capacity. In the meantime, in the factories we have, we are on a continuous basis looking to debottleneck and increase production.

Right. And then on Bio-valorization, in your guidance, it seems like you're for everything saying similar to last year. So -- but you are talking a little bit cautious in terms of gelatin volumes. So -- but obviously, in H2, gelatin volumes were also impacted. So should see a decline in H1 and then growth in H2? Is that what you're saying in terms of gelatin? That's the first part of the question. Same goes for Akiolis, what is your volume outlook there? And then for both businesses, what's your price/mix impact that you foresee, given that a lot of these raw material prices are up?

In respect of gelatin, it's really Europe consumer-driven behavior that will allow for increase in consumption and that depending on the opening up and the vaccination of the people over here, I think that's the main driver there. So if we see more stability and more vaccination, the more liberty, then people will go to it, they will consume more gelatin. For example, [indiscernible], Southern Europe, gelatin is sold at the little shops on the corner, which have been closed. So as soon as all this opens up, this will create opportunities for the gelatin business and also for the Akiolis business because there Akiolis in the entry part of the meat chain and the meat chain, we will see the evolution. I hope on a similar basis, if people can gather again, there will be barbecues, there will be all kinds of events that people will consume more meat and will create more opportunities.

Understood. And then final question from my end. On the financing, obviously, the balance sheet doesn't really look efficient. It's relatively high debt and relatively high cash position. You alluded to earlier on bond. Can you just remind me, you said that the bond is due rather soon. Can you just remind me when that is and what the amount -- what the total amount is?

I believe it's 2022 is the first part for about EUR 166 million and then the second part is, I believe, 2 years later about EUR 60 million is left.

Yes, and what is the second -- what's the amount for the second part?

About EUR 60 million.

EUR 60 million, you said. All right. And what's the current yield on the bonds?

I believe it's 2.8% and on average, it's about 3%.

There are no further questions in the queue. So I'll hand the call back to your host for any closing remarks.

All right. I want to thank all of you for your confidence in our Tessenderlo project. And I can tell you, we are all working very hard with close to 5,000 people to complete our mission, and our mission is Every Molecule Counts, that we want to create value for every stream that we receive. We hope that we can keep on protecting our people, work in safe environment and creating a healthy environment so that we can create a good future again for all our people, and we hope for on a personal basis that all of us, we will be free to operate and free to move and free to have good times, again, with family and friends as soon as possible based on the vaccine rollout. Thank you very much, and talk to you in August.

Thank you for joining today's call. You may now disconnect your lines.