Dear ladies and gentlemen, welcome to the conference call of Andritz AG. At our customer's request, this conference will be recorded. As a reminder, all participants will be in a listen-only mode. After the presentation, there will be an opportunity to ask questions. If any participant has difficulties hearing the conference, please press star key followed by zero on your telephone for operator assistance. May I now hand you over to Wolfgang Leitner, who will lead you through this conference. Please go ahead. Thank you very much. Good morning, everybody. Welcome to our conference call for the full year results of 2020. I hope you and your families have come safely and healthily through last year, through the year of COVID. I guess we all are optimistic to see the development on the vaccination side. Hopefully that global economy can gradually come back to something similar to normal, probably not yet fully normal. Before I start the presentation, which I think has been distributed to you, let me give you a quick summary of how we see the year 2020. Overall, I think we've managed this difficult year reasonably well. Why do we think that? Number 1, this sounds a little bit odd, I know, has been important. We started very early to purchase masks, hundreds of thousands, or I think millions of masks, which allowed us to distribute them to all our production facilities globally and allowed us, during the weeks and months where masks have become the bottleneck, to really continue to operate our production sites across the globe, including Northern Italy. Obviously, being a supplier to the global tissue industry, helped to be categorized as a critical supplier for the, in this case, national economies. What we did then was to agree on certain assumptions with regards to what do we have to expect from, let's say, starting in March of last year for the next few quarters. With these assumptions, we made two decisions. Number one, to obviously take advantage of all the temporary support subsidies, short workweeks, et cetera, in a very decisive way, but at the same time, decide that we have to assume that this will not be enough, that we have to basically make these temporary cost reliefs permanent. The goal has been to make them permanent to a very large extent by the end of 2020, which you find reflected in our non-operating expenses. All that would not have been possible without the commitment of our employees that really were extremely engaged. They were holding out in the construction sites under obviously quite difficult circumstances in difficult countries with not world-standard health systems. They were willing to continue production, et cetera. All that together, I think, enabled us to show a reasonable result for 2020 now when we present the annual results. If we move on to the order intake, EUR 6.1 billion compared to EUR 7.3 billion in 2019. Sounds like a quite low order intake. It is low, but please do not forget that 2019, the EUR 7.3 billion, has been extremely high order intake. If I would have to allocate this reduction in order intake, I would split it in half. Half is due to the fact that 2019 was exceptionally high, and the other half clearly is reflecting the somewhat lower economic activity due to COVID. Most heavily affected, obviously, were the two Metals business areas or partial business areas. One part was suffering from the slump in the steel industry, and the other part was suffering from the slump in the automotive industry. Also Pulp & Paper has been affected with regards to the order intake, but again, compared to a very high order intake in 2019. A little bit to our surprise was the extent of reduction in business activity in the service and aftermarket, especially in Pulp & Paper. What happened was that the annual or 18-month maintenance shutdowns have been postponed because customers wanted to avoid that 300, 400 people would enter the mill to perform these shutdown works. All that resulted also in a certain reduction in order intake in the service and aftermarket business. Revenue side obviously was supported by the backlog we had, by the execution of these large capital orders, thanks to the high order intake in 2019. Basically, with the EUR 6.7 billion revenues, we succeeded in keeping it flat, heavily supported by these large Pulp & Paper orders under execution. Moving on to the profitability. Thanks to this cost containment, cost reductions, our EBITA developed quite favorably, I would say. It included still quite substantial non-operating expenses, predominantly for Metals Forming and for Hydro. If we adjust for these one-off items, profitability of the group would have been 7% EBITA, slightly above even 2019. A solid figure in a not so easy year 2020. Obviously, we are aiming for a further improvement during the current year. A few other comments. Liquidity of the position still is quite good. Net working capital developed negatively owing to the progress of this larger POC, Pulp & Paper projects, which resulted in the reduction of POC payables and an increase in work in progress, as well as advanced payments to suppliers. Free cash flow, nevertheless, developed positively. Taken all that together and our view on what we have to expect in 2021, made us propose a dividend payment of EUR 1 per share for the business year 2020, which is roughly a 50% payout. We are staying within our 50%-60% payout guidance. Far, my introductory comments. If you allow me, I would move on to the more detailed numbers for 2020. On slide three, you see the summary again. I'll go quickly through. Revenue increased to the record high of EUR 6.7. The increase compared to the record year 2019 admittedly was very small, but again, it's a record high revenue year of EUR 6.7 billion. EBITA, about EUR 390 million, owing to a large extent to cost containment, cost reductions. Capacity adjustments costing us EUR 79 million, but we think, and we are convinced, this is well invested. We can afford it, we could afford it. I think that brings us in good shape, in great shape to hopefully benefit from a pickup in the global economy. Obviously, mostly Schuler and Hydro were the areas where we spent this money, restructuring money. Profitability, EBITA margin is up to 5.8% from 5.1%. Adjusted for these extraordinary items, reached 7% after 5.8% in 2019. Group order intake, EUR 6.1 billion, down substantially. Again, not as much down compared to a regular business year as it may appear looking at a pure number. Order backlog, EUR 6.8 billion, somewhat lower, but still a very good workload for 2021. On slide five, now the revenue figures, EUR 6.67 billion to EUR 6.7 billion. You see it's carried by Pulp & Paper with +16%, and the other three business areas are down between -13% and -8%. I think at the bottom, the pie chart is quite interesting. Service is down from 40%- 36%, capital correspondingly up. This four percentage points decline in service, again, could be split half/half. One half owed to the substantial increase in capital revenues, because obviously they are fed by the backlog and therefore not hit immediately by a slump in the economy as service and repair business is impacted. The other half of this decline results from a lower service and maintenance revenue level. On slide six, you see the service business. If we look at the last four quarters on the upper row, you see that the first quarter with EUR 576 million revenue compared reasonably with the EUR 587 million in Q1 2019. Q2 and Q3 were quite low, EUR 580 million, EUR 590 million compared to EUR 650 million, EUR 670 million in the year before. Q4 showed some increased activity, EUR 690 million, still below the EUR 750 million-EUR 760 million in Q4 2019. Overall, service on the lower left side, you see revenues from EUR 2.67 billion- EUR 2.44 billion. The share of service business, as I've said before on the right side, 40% down to 36%. Slide seven. Ratio of service business by business area. The biggest decline in Pulp & Paper, obvious because there the revenues went up very substantially due to these large projects, therefore the relative weight of service went down. This shutdown business, which definitely has been postponed, delayed, extended due to COVID. Part of that will be caught up, hopefully in the first half of this year. A smaller part probably will be lost, that people just say they wait a little bit more and then make the next regular shutdown, taking some risk, obviously. I think the rest is not particularly dramatic with regard to the changes that you see. On slide eight, you see this EBITDA development once after the extraordinary expenses and then before. The reported EBITDA margin went up from 5.1%- 5.8% in the blue bars at the left side, and the adjusted is 6.8%- 7%, or EUR 456 million- EUR 471 million. On the next slide, nine, you see the business areas again after extraordinary expenses and before. Pulp & Paper, still in very good shape, 9.9% or 9.7% respectively. Metals, heavily impacted by restructuring costs in both 2019 and 2020. On an operating level, slightly negative, 0.8%, basically coming from Schuler. I would say it is an honest sign or an honest description of the profitability. We were not squeezing the income statement to show a positive result. I would say it's mid-level between conservative and aggressive, and maybe slightly on the conservative side. Hydro, sizable restructuring expenses. Excluding these, the 7% are a little bit below our expectations. As you know, they are a little bit higher, but still they are, I think, a good profitability. We need to keep in mind that on the Hydro side, the profitability of Andritz compares very favorably to the profitability of our two main competitors in this field, which obviously leaves also a certain, how would I say, complication to improve profitability substantially. Separation shows a very good development, up from 6.6% before NOI to 9.4%. A very good profitability improvement over the last three, four years. This leads us to some modified guidances or margin goals on page 10. In Pulp & Paper, we increase our 9%-10% goal to 10%-11% EBITDA profitability. We maintain our Hydro guidance at 7%-8.5%. We maintain our Metals long-term goal of 6%-7%. It will not be this year and maybe not even next year. Let's see, I'm not going to give any guidance for next year. Clearly the expectation is that we see here a somewhat positive number in 2021. Not dramatic. Sorry, I need to take the call. Sorry. Separation with 9.4% pre-NOI already achieved. Obviously, 7%-8% is not a meaningful long-term goal, we increased it to 8.9%. Could it be more? Let's see how 2021 goes. Yes, it could be more. It would be great to have double digits there, I think we need to take the stairs one by one and not get too excited about this improved performance. On slide 11, you see the order intake, minus 16%. As I've said, rough estimate, -8% because of high base year and -8% owing to COVID. If you look at the business areas, Pulp & Paper is -18%, Metals heavily impacted because of steel industry and automotive industry, and Hydro, -1% looks good, but basically it says that it's another year with a quite low order intake. I'm cautious to say it will improve, but yes, we think it will improve, but I have decided to wait until I can show the real numbers rather than giving indications. At the bottom of the page on the right side may be interesting, China. China accounts for 16%, up from 11%. As you probably see in many other industries, China has recovered extremely quickly. China, I would say, is booming now. We see a lot of activities, project activities, many projects, many expansion projects proceeding. That certainly will be an important factor in the recovery of the global economy in 2021. On page 12, what we've seen before, basically now for the order intake. You see it again, was a good order intake in Q1 at EUR 1.85 billion. Total slump in Q2. Surprisingly good in Q3, but again, relatively low in Q4. The split between capital and service, much more stable than on the revenue side that we've seen before. On slide 13, order backlog. Nothing really to report. I think what is the revenues or the share of the revenues 2021 that are supported by the backlog as of end of 2020. It's a typical ratio of the previous years. With regard to our sales expectation for next year, we are, I would say, basically relying on the typical developments from the previous years. On slide 14, you see the EBITDA net income bridge. For the next few slides, I hand over to Norbert Nettesheim, our CFO, to lead you through this source of change analysis. Norbert, can you take over? Yes, thank you very much. Welcome to everybody who's in the call. Coming to the group's P&L statement. Quickly leading you through the numbers. The EUR 392 EBITA, you have already heard from Wolfgang, with the EUR 180 million depreciation. We are coming to the EBITDA of the EUR 571, which is EUR 35 million better than last year's. The depreciation includes EUR 11 million, let's say, extraordinary topics, which we adjusted also here. Assets mostly in Metals business. A little bit in Hydro according to the restructuring topics, which you are aware of already. The regular amortization of EUR 72 million. Also, this number includes a slight extraordinary topic, also out of Metals in the range of EUR 10 million. Here we will see next year EUR 58 out of regular depreciations and amortizations and hope that we don't need to do any extraordinary in next year after we have now finalized our restructuring topics in these areas. The impairment of goodwill is a small topic also in Metals. Same topic as I mentioned before, cleaning up this business as far as we could. It leads then to an EBIT of EUR 315, which is a EUR 50 million increase compared to last year's. Also financial results improved, mostly by cost for foreign exchange hedging. EUR 34 million also reached a level which is certainly a sustainable level for the future. EBITDA at EUR 280, 4.2% coming to the levels which we want to see more increase next year, certainly with a further increase of the operational numbers to be expected. Tax rate of 27.5% compared to 32.2% last year's. Based on a program to utilize much better our loss carryforward by forming of tax groups. We will hope that we can maintain the tax level on a rate between 26% and 27% in the next years. All effects in this year accumulated to a significant increase of EUR 80 million in our net income to a number of EUR 203 million, which is the 3% and a number which goes certainly into the direction which we want to see in the long term. 3% plus all the expected operational improvements, which should then lead us to a number which is certainly above the 3%. Next page, cash flow. It's cash flow as we reported in the external reporting. Nothing really exciting. Starting with the EUR 203.7 net income, then adjusting all the non-cash elements, leading to a gross cash flow of EUR 675 million. Here, a significant improvement, EUR 60 million compared to last year's. All good so far. Now comes first, let's say, a little bit of a negative message or let's say a message which goes into the other direction, which is the development in net working capital. Here we have, after a significant improvement out of net working capital in the last year's improvement of cash, this year it's turning into the other direction. We have a EUR 79 million increase in working capital, which is mostly driven simply by the timing sequence of these major orders in the capital business. Last year, shortly before year-end, we received huge portions of down payments out of this a very large capital equipment project. This year, we are more or less in the execution phase with a reduced order intake and reduced down payments on newer orders. This leads to the normal development in plant and big project business, and costs this year, a little bit of cash flow by increase of the net working capital. At the end, operating cash flow or cash from operating activities with EUR 461, still a very solid number, very good cash conversion rate, as far as I can see. The cash flow then transfers also into our net liquidity, which you see on page 16. We could manage to improve it nearly by EUR 200 million. Saying that this includes EUR 80 million foreign exchange rate effects out from the change of exchange rate in the Brazilian real, the US dollar, and the Indian rupee, which brought our funds, which we have in these currencies, down in transfer to euro. The whole effect is EUR 80 million. It would be the same exchange rate, EUR 500 million net liquidity, which gives us a very good basis for the next years and keeps us also flexible with regards to any urgent need of money or any opportunities on the acquisition side. Page 17, you also see the summary of all the financial numbers. I don't need to repeat them, most have been mentioned. Maybe if you add the two ones in the red squares. Free cash flow, EUR 330 million, is certainly something which should be pointed out. Further strong development also with regard to the free cash flow. As Wolfgang Leitner mentioned already before, you see it on page 18. This gives us, as well as from the profitability side, the equity side, and the cash side, the opportunity to increase our dividend this year back to a level of 48% payout ratio, which we saw as average in the past. EUR 1 per share is what we will propose to the general assembly in this year. That's so far from my side, and I'm turning back to Wolfgang Leitner. All right, thank you. Moving on to the business areas. On slide 20, Pulp & Paper. Development has been very good in spite of this, let's say, close to EUR 3 billion order intake, which still is a very high level and a very attractive level. Profitability is very good. We have seen a fantastic development of the nonwoven business. We are there at the EUR 500 million level in order intake, supported by our equipment to produce nonwoven fabrics, including even masks with our newly acquired, or some two or three years ago, acquired Diatec subsidiary in Italy. More than 30 lines have been sold of this mask production line, and now we have also an FFP2 mask production line, which we are selling. Our biomass boiler business in Japan, still going very actively, very well. I think no concerns to report there. Profitability is good. I must say, we are executing these very large orders, which are not only very large and not only have to be executed under COVID conditions in South America, but they also include technical challenges that we are confident we have analyzed. We have done everything to mitigate the risks. We are confident and optimistic we will achieve everything. We have set up provisions for that. This certainly will be a challenge for this year to get these large projects started up or beginning of 2022, depending on which project and how things develop in the next several months. That will be the main challenge for Pulp & Paper to successfully start these huge pulp mills up. On slide 21, Metals. Continued weak business. Speaking of weak business and of Schuler, relatively low order intake. I think what is worth mentioning is that nearly 25% of Schuler's order intake in 2020 came from either battery-driven car production or battery cell production, where Schuler is very strong, has developed a very good technology, including the tools to produce these cells. I think Schuler has been very successful to make this step from traditional cars to engine-driven cars to battery-driven cars. Obviously, profitability is far too low. We are confident that we have reduced the cost base, the breakeven level very substantially. We are still in the process of seeing the effect of that. A vast majority of these very substantial personnel reductions will be in place by the end of this year, with a stronger first half and a smaller second half. Overall, Schuler will have reduced the workforce by about 1,200 employees. We are confident that hopefully is a basis for recovery of Schuler to the old levels of profitability within the next two or maximum three years, including this year. Slide 22, Hydro. As I said, order intake, somewhat disappointing. Stable, low. Sales are correspondingly below 2019 because as a consequence of this lower order intake of the last several years. EBITDA margin adjusted 7% are okay, could be higher. As I've said, 8% plus is what we want to achieve. Some restructuring is in place or has been executed to reduce the cost base and prepare the basis for a higher profitability on a lower sales level as in the past. On slide 23, Separation. Affected by COVID, order intake is down by 7%. As a consequence, revenue is down by 7, 8%, profitability-wise, very good development. EBITDA margin 7.7%-10.5%, and EBITDA adjusted 6.6%-9.4%. Very interesting businesses, business segments from plant-based meat to wastewater treatment, to baby food, to you call it, very specialized segments. We definitely see that as a business area now that it has been turned around, now that it has achieved the profitability that we have been looking for to really look into both organic growth, but also one or the other inorganic or M&A-based growth. I'm not announcing anything here or indicating that something will be announced in the next few months, but clearly this business area is in good shape, is profitable. It's in very interesting markets from a profitability standpoint and from a risk profile standpoint, and therefore we definitely want to expand or try to expand that business. To conclude, on slide 25, what to expect from 2021. As I said, order execution of this backlog of these large contracts still affected by COVID. Make sure that we can maintain a very good part of the lower cost base that we have achieved in 2020, in 2021, and going forward. We clearly have seen that you can do a lot without traveling. We have saved more than EUR 50 million in travel costs, both in sales and in order execution. We have developed digital tools to take advantage of not only these new tools, but also of our customers having also become used to digital communication and hopefully not seeing it as a lack of interest on our side if we don't fly somewhere to visit somebody, but invite for an MS Teams or other type of digital meeting. Obviously, any turnaround will depend on a turnaround of Metals, especially Metals Forming, and to a much lesser extent of Hydro. It's only a profitability improvement. As I've said, digital channels, digital tools definitely will play a more important part of our daily work. With regard to the market, I assume everybody agrees that nothing to expect from the first half of this year. All the restrictions will prevail. Compared to last year, in many countries, many regions, we have very high infection levels. Hopefully, that will improve as vaccinations are penetrating the population in these countries, and that hopefully should be seen in the second half of this year. China, as I've said, is already very active and has been last year already. Service, we are optimistic that service will be back. We do not expect that it will continue low level of last year. We see larger projects both in Pulp & Paper and in Hydro, actually also in the Metals side. You probably have noticed we have record steel prices. Hopefully should lead to certain limited investments on the steel business side and on Metals Forming. I've said this, electric cars, battery-driven cars, certainly should continue to offer some attractive business opportunities. On the last page, 26, outlook and guidance. We expect group revenues to be somewhat lower than 2020, not dramatically, but a single-digit% for sure, but somewhat lower. We expect an increase in reported EBITA compared to 2020, the EUR 392 million. We expect, depending obviously on the revenue development, how it really works turns out, that the adjusted EBITA, in spite of the somewhat lower revenue level, should be stable compared to 2020, which would be in the range of EUR 470 million. Which would basically result in a EBITA profitability in the range of 7.5%, depending on which stats you pick for that. Clearly, we hope for some slightly improved profitability, but we also expect a slightly lower revenue level as of now. Currently, we are not planning any substantial restructuring measures. As I've said several times in previous meetings, if and when we see an opportunity that we can restructure with a good payback, we will do it. The time is perfect now. We have done many things which would have been very difficult under different circumstances. As I said, depending on how the economy develops, depending on how our businesses, our companies develop, if there are opportunities to make some further optimizations, we definitely would do it. As of now, we would not expect anything substantial. Much my summary of 2020, and I look forward, together with Norbert and Michael Buchbauer, to your questions. Thank you. We will now begin the question and answer session. If you have a question for our speakers, please press zero and one on your telephone keypad now to unmute you. Once your name has been announced, you can ask a question. If you find your question is answered before it is your turn to speak, you can dial zero and two to cancel your question. If you're using speaker equipment today, please lift the handset before making your selection. One moment please for the first question. The first question we've received is from Sven Weier, UBS. Your line is now open. Yes, good morning, and thanks for taking my questions. The first ones are on the 2021 outlook that you've just provided. There specifically, you said H1 likely stable, and then post-COVID-19, you would clearly see some activity there. If everything goes as expected on the vaccinations, I would assume that post-COVID then refers to the second half. That would be the first question. Yes. In principle, yes. Yeah. Okay. Got you. The second one on the 2021 outlook, you just said sales will be down slightly. If I take your comment with the 7.5% margin, it sounds like down maybe around about 5%. I was just wondering in terms of the flat adjusted EBIT. You have some headwind maybe from lower top line, but on the other hand, you should have savings at Schuler already. You expect the service business to recover, which should be high margin. Is it the flat EBIT more to be also a bit cautious and mindful about maybe some challenges on the Pulp execution and lower temporary cost savings compared to last year? Is that the reason behind it? Yeah, I think that definitely. The challenge with last year, we had windfall advantages, which to a very small extent would still be in place, in 2021. For example, short workweeks in Germany, but that's more or less the exception. Not much more we can count on. Obviously, we have reduced workforce quite substantially on a permanent basis. Will that be sufficient to fully compensate this disappearing one-time effects like travel, for example. Let's not forget, and let's be realistic. We have hundreds of salespeople who just wait for the airport to open, to rush to the airport and fly somewhere, because that's how they have lived for many years. To a certain extent, we need that. To a certain extent, we definitely want to change certain things. All that, I think, I would not want to bet the farm on things that are under development, I would say. Again, I think it's very difficult to really anticipate how the world will be in summer after, let's say, substantial part of vaccinations in the developed world have been executed or done. People are saying as long as the world is not vaccinated, there will be enough complications continuing. I think it's too early. When I said what we did in March of last year, I think we made many good assumptions, but the one assumption that was not correct was that we thought Q4 2020 will be very quick, very fast on the way back to normal, which definitely was not the case. The companies had adjusted to the circumstances, so not all businesses had disappeared, by far not. Are we back into normal in Q4? Definitely not. Are we back to normal now? Definitely not. I think we need to continue to be on the cautious side. I think it's a balanced guidance, I would say. It's not overly conservative, it's not overly aggressive. It's, I think as good as we see it today and as we feel comfortable to share it with you. That makes sense, I guess you could still update them later this year. The other two follow-ups I had was on the midterm outlook. Appreciate the upgrade here. Was just wondering on the Pulp & Paper side, as we all know, Voith has a 10%-12% target. I was just curious, I think I understand your approach more that you take one step at a time and don't make or provide two big ranges. How do you think about the possibility reaching up to 12% margin in Pulp business in the long term? Should we take your approach really, we make one step up now and then think about that later, or how should we look at that? First of all, I will pass on your question to my two colleagues on the executive board who are responsible for Pulp & Paper. I am asking them the same question. I think we need to stay realistic. This is a business, even if it's 50% capital and 50% service as it used to be when the capital was not that high as it was in 2020. For such a business to be sustainably double-digit, even if it's only 10% or 11%, is already quite a big achievement. Is it realistic to say we want to have sustainably 12%? I don't know. Obviously, if Voith achieves that, for sure we will try to achieve that. Yeah. Understood. The other question I had on the midterm guidance is if I take the midpoint of your margin targets for the divisions and apply them to last year's revenues, I get to a group margin of around 9%, and that would be 9.5% at the high end, 8.5% at the low end. I understand your group margin target is still roughly 8%. How should I look at that, the assumptions behind that? Either Michael can answer the question. I have not done this math and the consequences. We are more concentrating on really getting the four business areas to the levels that we have indicated and whatever the result of that is. Obviously, a lot depends on Metals. This is the challenge. I am confident that we have sized it to a break-even level, unless the automotive industry again stops buying anything or something like that. Under reasonably normal circumstances, definitely we should break even under the current volume. With some increase in volume, we should be more profitable, and also we are still working on making it, even at this level, somewhat more profitable. To bring it up to 7%, 8% is a challenge, and that will definitely take two years. That has the biggest impact on Group profitability, obviously. Sorry. No, but yeah. May I add that when you give this very, let's say, demanding group division, you have to realize that not all will make it to the top. When you then do the math and you have a slight reserve in, then you come somewhere to the 8%, which we see for the whole group. Yeah. In other words, not all will make it to the top in the same year. Right. Understood. Sorry, go ahead, Sven. Yeah, sorry for interrupting. I was just wondering, on Schuler, you talked about the new structure of clients. More BEV, more battery. Is there a margin difference to the traditional Schuler business there, or it doesn't really change the mix for you? It does not really change the mix. It definitely is not worse regarding margin than the standard business. Schuler has good technology and a good position there. Okay. The very final one is just on ESG. I think you were intending to launch a more fully-fledged ESG strategy in the first half. Is that the intention to do that still, or has that changed? In Q2. I think in Q2 we will launch something. Again, Norbert, your last answer was so good, maybe I pass on this question to you also. We are definitely planning to come out with clear targets in the second half and to include it into our Group's reporting strategy. Okay, understood. Thank you so much. Thank you, Sven. Wolfgang, just as a remark, we should leave in five minutes because then we have the press conference. They can wait maybe a few more minutes. Okay, let's see how many questions are. Let's get to the next question. Yep. Yeah, we have a next question. It is from Andreas Willi of JPMorgan. Please go ahead. The line is now open. Yeah, good morning, everybody. I will keep it short. You gave a lot of comments around margin progression for the next few years. Would you expect Hydro to already be in the target in 2021? The second question on acquisitions, you mentioned Separation. How do you assess the current market in terms of attractiveness of valuations and targets that are out there, to do some add-on M&A? I will go to the first question, Hydro 8% already this year. I would not bet on it. I think they have a mixed backlog, I think because competition has been quite tough the last two years for new orders. Hopefully it's above seven, but whether the 8% can be reached, we would not commit to that. M&A, we have announced a small acquisition in December, I think Laroche, which is a very good fit for us, both for the nonwoven side and for textile recycling, which will be a very good market next few years, we think. Other than that, prices are very high. We have been participating in one auction, we were coming out low in valuation. Obviously there is a lot of money in the market, many funds need to invest something. For an industrial investor who has to be rational and has to look after his balance sheet and leverage, it's complicated, difficult. As always, we are looking at several smaller things, and with Clarium continuing to develop very favorably, I think we get slowly also appetite for some larger projects if and when they would arise. Thank you very much. Next question. The next question is from Sebastian Olver of Commerzbank. The line is now open. Good morning. Thanks for taking my questions. The first one is again on the framework for the fiscal 2021 guidance. Also linking it back to the increased margin target at Pulp & Paper and Separation. Can you give us a sense how quickly those improvements would come through? The question I really have is at Pulp & Paper, would expect would be better, A, order backlog, at least book-to-bill being positive still. Also with the service coming back, rather a margin improvement for Separation that might be as good as it gets. For Metals, just quickly, I think on the quarter three call, you said you would expect that 1-2 percentage points higher year-on-year in 2021 over 2020. Is that still the framework? Yeah, let's leave it there. Yeah. I think both Pulp & Paper and Separation certainly have a chance to not only stay within their new ranges but get towards in the direction of the upper end of their ranges also already in 2021. This is not the official guidance, but there is no reason to say that they don't have any chance to reach that. The second question with this one or two percentage points is, I didn't understand. I think on the quarter three call, you said that for Metals and with the expected savings coming through from the layoffs, that you would expect the margin to improve by about 100-200 basis points year-on-year. Is that still the framework that you would feel comfortable with for 2021 at Metals? Basically, yes. Yeah. Okay. The very last one, if I may, on the Hydro business, you said that sort of the competitive dynamics is hindering you in showing better margins. Can you be any more specific around that comment that you made earlier? Well, it was not the dynamic, the competitive dynamics. What I wanted to say is if there are three companies and one company has a substantially higher profitability than the other two, there are different explanations. One is that this one company is so much better than the other two, which in the long run usually is not always the case. It says that you are already on a relatively high level of profitability compared to what the market offers in terms of profitability, and therefore you should be cautious of asking for too high or communicating too high margin goals. Yeah. Okay, that makes sense. As far as we know, we are substantially more profitable than our two main competitors. That's just a fact. That has some impact on what we feel comfortable to say what we can achieve. Okay. Couldn't agree more. Thank you. Thank you. The next question is from Daniel Lion of Erste Group. The line is now open. Please go ahead. Yeah, good morning. Thanks for taking my question as well. I will take just one to save you time for the press conference. Can you give us a little bit more insight on the Metals division, especially automotive, of course, regarding the dynamics you might expect from the now increasing activity on the automotive field. By when would you expect this to be reflected in your order intake? Maybe just related to this, how are you doing currently in the B segment on the press markets? Have you gained ground there already? How is this developing? Thank you. Yeah. We're doing very well on the B sector. Our Yadon acquisition in China is doing very well, has shown good growth, good profitability. We certainly hope for Schuler to have 2021 a higher order intake than 2020. Now it's too early to be confident that this can be achieved, but we see quite good projects on the battery side, on battery-powered cars, but also on the battery cells side, but also on the conventional cars, there are a few projects that might go ahead. I think there is some reason to hope for some increase in order intake in 2021 for Schuler compared to 2020. Rather, this would be a second half year topic, I guess. First half year. Yeah. Or? I will not see any of particular, c ould be evenly spread across the four quarters. Okay. Perfect. Thank you very much. Thank you. Thank you. The last question is from Robert Davis of Morgan Stanley. The line is now open. Thank you for taking my question. Just would like a little bit more color on the Hydro business. I noticed you mentioned that the orders were bottoming out there. Just be curious what's going on in terms of your large Hydro projects versus pumped-storage and what underpins your confidence of maybe orders improving into 2021 and 2022? Thank you. Yeah, there are several projects that have been also announced that are larger projects. I hesitate because I have been too optimistic with regard to timing of these projects, over the last at least four quarters, I would say, or five quarters even. I don't want to become not taken serious by you. There are clearly several larger projects. Pumped-storage is active. We have booked one of the which would ultimately be, I think, the largest pumped-storage plant in India. We're about to book, I'm not sure now. In China, let's see how we can compete against the local competition. I think all we can say is that this should be the bottom in order intake that we've seen last year and the year before. Hopefully we'll see somewhat more in order intake this year. Thank you. Okay. Michael, I think unless there are further questions. This was the last question. I think you can conclude then and finish. Okay. Sorry, maybe I was talking too much, so we were a little bit short of time. Thank you very much for your questions. If you have follow-up questions, please don't hesitate to contact one of us three. I look forward to seeing you when we report the Q1 results. Thanks everybody for joining. Thank you. Ladies and gentlemen, thank you for your attendance. This call has been concluded. You may disconnect.