Morning. This is the Chorus Call conference operator. Welcome, thank you for joining the Sogefi Q1 2021 results conference call. As a reminder, all participants are in listen-only mode. After the presentation, there will be an opportunity to ask questions. Should anyone need assistance during the conference call, they may signal an operator by pressing Star and zero on their telephone. At this time, I would like to turn the conference over to Mr. Frédéric Brival, CEO of Sogefi. Please go ahead, sir. Thank you. Hello, everybody. Thank you for being with us for this conference call. I propose we go to page four, where we have the financial highlights of Q1. The sales. Let's start by the sales. As you can see on the document and on the report we published Friday, our sales are up on the Q1 versus 2020 by 5%, will be almost 10% with constant exchange rates and versus 2019. We will always use also 2019 as a basis of comparison. We are down by 5% on reported basis, but at constant exchange rate, we would have been at zero. We are over-performing the market. You will see that in each geographical area. Also we have two business units performing very well against a decreasing market. The EBITDA is at almost EUR 55 million, 15% versus 11% in 2020 and also 11% in 2019. You will see that it's both the combined effect of the profitability increase on our variable cost and big structural actions we have implemented in 2020 on the fixed costs, which decreased by almost EUR 10 million. The EBIT is following this trend with 7.3% on the reported EBIT versus 2.3% in 2020 and 3.3% in 2019. In this 7.3% of the Q1, again, we'll highlight the special events. We have the equivalent of 1.3% of non-recurring impact. The report, the normalized EBIT, will be 6% compared to 2.3% in 2020 and 3% in 2019. The net income is at almost EUR 12 million versus a loss last year and EUR 1.6 million in 2019. We have been able to convert the EUR 55 million of EBITDA in a quite good free cash flow with EUR 33 million positive free cash flow in this quarter versus EUR 0 last year and a loss of EUR 2 million in 2019. The net debt is at EUR 260 million versus EUR 290 million end of 2020. We are back at the level of March 2019. Page five, we have the details of sales per month with the three years. As you can see, overall versus 2019, we are losing 5%, but this trend is improving in March, where we are almost in line with March 2019. This is mainly thanks to the start of new programs that we have in North America and in China. Page six, we have the sales by geographical area compared versus 2019, versus 2020, and also versus the market. I would compare versus 2019 because last year the impact of COVID already started to impact the geographical areas. Versus 2019, as you can see, and as I said before, we are decreasing by 5% on the reported change, but 0% at constant exchange rate. In Europe, we are at minus 7%. North America at constant exchange rate will be almost flat. In South America and Asia, we have a big growth, and you can see that we are beating the market in all geographical areas. The sales by business unit, page seven. Two business units, as I said, are over-performing versus the market and also versus 2019. Air & Cooling and Filtration at constant exchange rates would have grown by 6% versus 2019 for Air & Cooling and 6.6 in Filtration. Suspension at constant exchange rate is decreasing by 11% versus 2019 and 17% on the reported basis. This gap between the business unit is mainly due to the different mix by country and also to the fact that filtration has the OES and IAM, which are performing very well and are kind of buffer versus the decrease on the OEM market. Page eight. Just a few words about the new business award, because on this quarter we have done well from a financial point of view, but we also continue to prepare the future. We have many award on our main customers, both with the historical customers and new customers. As an example, in Air & Cooling, we signed an important contract with an American OEM with a lifetime value of more than $250 million. On filtration, we have continued to acquire market share in parts line with oil filter in North America and also in Europe. We have signed a quite good contract on the cabin air filters. In suspension, we have already acquired 35% of our contracts are on hybrid and fuel cell applications. Page nine. It's a visual bridge of the EBIT 2021 versus the EBIT 2019. We will have details on the P&L and the free cash flow. As you can see, unfortunately, versus 2019, we have a negative impact of volumes by EUR 60 million, partially compensated by the efficiency on variable costs for positive EUR 3.7 million. We have the fixed costs, which are helping us by EUR 10 million compared to 2019. As you know, we have launched structural actions last year in 2020 in order to be ready for decreasing market, and this really helped us to offset the negative impact of the market and also improve the profitability. We had this quarter, EUR 6 million of positive non-recurring and operating items that Yann will highlight to you. At the end, versus 2019, we are able to double the absolute value of the EBIT in a decreasing market and with decreasing sales. Page 10. I take over from Fred. The P&L versus 2019 and 2020, it's mainly a combination of revenue catch-up and a reduction in fixed costs. This is true for versus 2019 as well as versus 2020. What is very important to note is that we have a rebound in sales, as Fred pointed out, versus 2020. We are still not there regarding 2019, although March was quite good, and we are facing headwinds in terms of market, as Fred probably will emphasize later on. As you can see, contribution margin held up quite well in a difficult market. As you all have read, there are demands for increases in raw materials, and despite these demands, we've been able to hold very strongly our contribution margin in Q1. It might turn more difficult in the coming quarters. Cost decreases, it is one of the main reasons for the improvement of profitability versus 2019. Fred said it already, EUR 10 million savings versus Q1 2019, so EUR 10 million savings versus pre-COVID. This is recurring, this is something we'll get quarter- after- quarter. Important to point out that in this quarter, all the planets were aligned. Not only was there a recovery of sales versus Q1 2020, which was the Q1 we were hit by COVID, but we also have positive impacts in Q1 2021. As you can see, favorable exchange differences, which is quite unusual, this is mainly due to the evolution of the euro versus the dollar. You see it makes quite a difference versus Q1 2020, where we had a hit of EUR 3.4 million. This line alone explains a EUR 5 million difference versus Q1 2020. The difference is less significant versus Q1 2019, nonetheless, please consider this EUR 1.7 a favorable exchange differences as non-recurring. It's not something we can expect every quarter. We also did benefit in Q1 from a EUR 2.4 million settlement. It is a very old litigation. It goes back, I think, 15 years. We had a litigation against former advisors, we have reached a settlement with them recently. They are going to pay in April a total amount of EUR 2.4 million to close the litigation we had with these three advisors. Again, non-recurring, of course. It happens only once. That's why if you take out both exchange differences and this windfall of EUR 2.4 million, EBITDA would be at roughly slightly above EUR 50 million. That's to say, 14.2% versus 11.2% in 2019. If you go down the P&L, if I take out again these EUR 4 million of exchange differences and this EUR 2.4 million one-off, EBIT would be at EUR 21.8 million. That's to say, slightly above 6% against 2.3% in 2020 and 3.3% in 2019. I take the opportunity just to say, I said it already, the planets were aligned in Q1. We are now facing headwinds, so don't expect as good a quarter in Q2. There will be difficulties with volumes which are linked to the market. Raw materials are difficult. Don't treat that as a recurring performance. Obviously, there is an improvement versus 2020 and 2019. We are going to do as well as we can, but we are not projecting as good a performance in Q2 2021. If we move to slide 11, free cash flow. Free cash flow is roughly a duplication of the P&L. You can see it's fairly easy when all goes well. More volumes, it means more contribution. You see quite a difference versus 2020 and versus 2019. We also had a favorable impact in terms of working cap, added to which some one-offs in terms of cash. We cashed some tax credits, which are included in the EUR 7.4 in others. I think we cashed EUR 4 million of tax credit in France. All in all, a positive free cash flow before IFRS 16, the real free cash flow of the company, positive at EUR 33 million versus roughly zero in 2020, and a slight cash burn of EUR 1.6 in 2019. What's more relevant to us, it's when you look at the net debt, again, before IFRS 16, it's very significant. It is at EUR 261. We have gone back to the end of Q1 2019. That means it looks like there has been no cash burn in the past two years. We've gone through the crisis without burning cash. This shows in slide 12. When you look at slide 12, the first column is the total of committed lines we had end March 2021. A total of EUR 620 million of committed lines. As we have just seen, NFP end of March 2021 was EUR -261, which means we have an excess of EUR 360 million of committed lines versus our net financial position. A significant part of which, it is the orange box which you can see in the second column, will be used in the month of May to repay the EUR 100 million bond, which is expiring in May 2021. Average maturity of the lines is three years. We are already working on new lines. We should close new lines in the region of EUR 30 million shortly. Probably too early to work on the renewals. Renewals, it's mainly the green boxes in 2022, 2023. Probably, as we hope we are going to confirm good results during the year, we are going to start talking with the banks to renew the 2022 and 2023 lines in order to have a larger buffer than we already have for the time being. Fred? Thank you, Yann. Page 13, we have the split of sales by business unit. As you can see, Filtration is now the biggest business unit, with 35% of the sales, mainly thanks to the good performance of OE and aftermarket. Page 14, if we look at the performance of the Suspension business unit, this is the business unit where the impact of sales decrease is the biggest compared to 2019. As you can see, we are losing 17%, quite close to the market. We are, thanks to the actions that we have implemented on the fixed cost and on the contribution margin, we have been able to improve the percentage of EBITDA, close to 10.5% versus 8% in 2019. As you can see, we have decreased the fixed cost by 15% versus 2019. Page 15, Filtration business unit. Sales are globally flat versus 2020 and 2019 in a decreasing market, it's quite a good performance. The EBITDA, we have been able, thanks to strong actions on the margin and also in the fixed cost, to go from 11% in 2019- 15.5% in 2021. Air & Cooling, the sales are growing versus 2019, thanks mainly to China and North America. The percentage of EBITDA continue the improvement that we started almost five years ago now, and we are above 18% of EBITDA for the Q1 in 2021, with two geographical areas performing very well, China and North America. Page 18, a look on the market outlook. Of course, I think you know it very well. It's quite cloudy to have a very accurate estimation of what's going to be Q2, Q3, and Q4, mainly due to the raw material shortage that our customers are facing. We have customers that may stop the production from one day to another with very short notice. We have faced that in Q1, and I think we will continue to face that in Q2, hoping that Q3 and Q4 would be better and more stable. For now, our position is very clear. Of course, we consider the forecast of IHS as a working basis, but I prefer to be very prudent on sales because of the potential shortage on the materials and continue to be very aggressive on the cost structure so that we are ready for the worst. If there is a good news on sales, it will be like Q1, a transformation on the EBIT and the EBITDA. Page 19 says exactly what I mentioned. IHS is expecting a strong rebound versus 2020 in Q2, and also for the last part of the year. Nevertheless, we will still be below 2019 by 6%, according to IHS expectation. It can go worse due to the material shortage. With Yann and the full management team, we are continuing to monitor the activity almost weekly or daily in some vertical areas, to be able to adjust very strongly and quickly the fixed costs in order to maintain our profitability. The target right now, it's a bit too early to revise our target of profitability for 2021 due to all the events that I mentioned before. We continue to target to be much better than 2020, of course, and to go back at least at the level of 2019 EBIT margin. I think around June and July, we will have a better visibility on what will be the full- year sales and de facto the EBIT margin for Sogefi. We have finished the presentation, I think we can move on to question and answers. Thank you. This is the close call conference operator. We will now begin the question-and-answer session. Anyone who wish to ask a question may press the star one on their touch-tone telephone. To remove yourself from the question queue, please press the star and two. Please pick up the receiver when asking questions. Anyone who wish to ask a question, press star and one at this time. The first question is from Monica Bosio with Intesa Sanpaolo. Please go ahead. Good morning, everyone. Thanks for taking my questions. The first one is on the trend of the operating profit margins in the Q2. You have been very clear. The Q2 will be tough due to headwinds on raw material, transportation costs, and whatever. Can you try to help us to figure out what could be the margins erosion in the Q2? As things are, it seems to me that you can land at a slightly better operating margins in 2020, maybe even higher than 2019. Just some details for the expected margins erosion in the Q2. The second question is on the free cash flow dynamics across the next quarters, if you can give us some highlights. The very last question is on the shortage in the automotive sector. I know that the sector is under a shortage, but are you seeing any impact on your operations so far, or no? Thank you very much. Thank you very much for the three questions. If it's possible, I will start by the last one because it will help us to explain the two other questions. On the shortage, yes, clearly we see the impact, of course, not directly, but indirectly. The shortage about, of course, the microprocessors. This one, everybody knows it, but it's also very difficult to get aluminum, plastic or steel right now from the market because there is a booming demand in Asia. Of course, the suppliers are pushing for price increase. For now, in Q1, we have been able to defend quite well the purchasing prices. In Q2, this will be the main topic, but between the supplier potential increase and the customer acceptation of price increases. I see a tough battle here on the squeeze. Right now we are end of April, we continue to defend very hard in order to protect the quarter and the year. It will affect, in one way or another, the profitability because we won't be able to continue to defend too long with the suppliers. It's difficult to estimate the impact on the percentage of the EBITDA, but I would say that it can be close to 1%, to make it clear. From an operational point of view, I have to say that it's very difficult to operate right now because in automotive, as you all know, we are used to have kind of stability on the volumes and at least in the daily or weekly volumes, and then it was decreasing like in 2008. It was a kind of global decrease, we were able to find way to operate in this way. Here, it's not the case. One day the customer is calling us saying, "Guys, we will stop the production, so we will not pick what you produce." Then for three days they will not produce. They will restart. We will have to do overtime and so on. Right now the production and the operational way of working are really changing versus what we were all used to do, and we are trying to adapt as much as we can. In Q1 we have been able to do it in quite good way. For now in April, we are able to do it. Plus, in addition to the issues of our customers, we have also the potential COVID situation. For sure, to operate in this way is not easy, but I would say the same for the whole industry. For now, end of April, we have been able to go through that in one way or another. I hope it will last in May and June. This explain also the reason why Yann and I, we are very present giving you figures of forecast because to operate in this way is quite difficult. Yes. I have understood well, on top of the raw material impact, you could have an impact from the stoppage in production with the volume. Is this correct? Absolutely, because it happens to us each week. One customer who was supposed to produce and work is stopping because he had shortage of components or because they are COVID-19. In the same time, we have the same issue with our suppliers. Right now, the supply chain is stressed, but as in Q1, and right now we are able to manage that. I don't know if in May or June it won't go worse, especially in some countries, for example, as India, where the COVID situation is going very bad. This is what explain why Yann and I, we are very prudent. You have issues with the customers, issue with the suppliers, plus potential issue in some countries due to the COVID situation. Nevertheless, if we look at the positive side of the coin, is that we are able to react very quickly from an operational point of view. If one customer is decreasing the volumes or stopping his plant, we are able to react very quickly and stop our plant and see what kind of help we can get from the local government or using the holidays and so on. Right now, from an operational point of view, we have been able to flex the fixed cost or the variable cost when we need. It's just that from a supply chain point of view, it's a bit difficult to manage, but I think it's the same in the whole automotive industry. Mm-hmm. Very clear. Thank you. That's why it's a longer sentence to say that I would prefer to avoid to give you an indication of the profitability of Q2 due to all these things. Nevertheless, if we normalize the EBIT of Q1, it's 6%. Of course, we want a decrease to 3%. What we have done on fixed cost is there, it's recurring. What we have done until today on the variable cost, it's here and it's in a pocket, if I can say. Here we need to be able to defend with the consumer, with the supplier, and of course, from an operational point of view, to avoid big issues. Okay. On cash conversion and cash projections, we have the same approach on cash items as we have on the P&L. Due to the current environment, we are very cautious on our CapEx commitment, on our inventory, on our working capital, customer overdue, in order to be able to over-perform a normalized situation if we have bad surprises due to the difficult way to operate currently. One thing that can impact the free cash flow are the inventories, because due to the shortage, we keep some more inventories than what we are used to do, especially in steel and plastic, in order to avoid a customer shortage. Again, it will not consume all the advantage that we had in Q1. We prefer to be cautious again on these items. Very clear. Thank you very much. Monica, it's not overprudence. Our goal in Q2 is to keep the advantage we generated in Q1 in terms of free cash flow. Definitely do not expect a similar cash generation as in Q1. It's not going to happen. Yes, I'll give. Thank you very much. Thank you. The next question is from Martino De Ambroggi with Equita. Please go ahead. Thank you. Good morning, everybody. The first is a follow-up on the raw materials. Maybe I missed it, could you confirm what was a rough impact in Q1 coming from raw materials? Second question on raw material is, could you remind us, in the current environment, what is your ability to pass through these raw material price increase, rough percentage of what you are able to pass? Third question, is it true some other player is saying that since also car makers are able to pass through or at least to limit the incentives when they sell to final consumers, that the negotiation is always tougher but less tougher than it used to be in the past. The three questions on the raw material. The second big issue is the fixed cost, because you saved EUR 9.6 million in Q1. Should we multiply by four? Probably not. Just to understand what is the potential full year benefit in terms of fixed cost reduction. Thank you. Thank you. The rough estimation of the impact on raw material for Q1. It's mainly focused in one business unit, it's in steel. We are close to about EUR 2 million increase versus the Q1 of last year. EUR 2 million increase from the suppliers, mainly on steel. Right now what we have been able to pass through, it's 50% right now, and we continue the negotiation with the customers in order, in Q2, to get back the remaining parts. There is not a general rule for each customer with the contracts clear, which says the pass-through will be made with X%. In fact, it depends the history you have with this customer. For example, when the steel go down in 2019, we have not decreased the prices with the customers. Right now, the customer says, "Hey, guys, you come to us wanting an increase," but in 19 we have not decreased it. It's based on negotiation. Our team are quite strong in that, about the squeeze management. Of course, it's all about timing, because most of the time, if you get an increase beginning of the quarter, it's very unlikely you will be able to close the negotiation in the quarter. The tempo will be very important, especially because we don't know until when it will last. I don't know if it's just a bubble and in July, August it will normalize, or if we are in this trend for two year, three years. That's why we are very defensive with the suppliers before going to the customers. Because to answer to your first question, no, my feeling is that with the customers, it's not more easy than before. I would even say it's more difficult, especially with two customers growing because they are now combined, for example. They have more strike force, and it's more difficult to negotiate with such a giant. PSA and FCA are now together. With the German customer, it's the same. Before getting the price increase, the negotiations are very tough. One of our strategy is also to leverage on the interruption that we have on the volumes or the big sales volumes decrease that we had with some customers, and not to give the productivity, the yearly productivity that we are supposed to give in 2021. Rather than asking for an increase of price, we will try to block the decreases of prices that we should have done in 2021. This has been our strategy in the Q1. I have to say it works very well. No, the pressure is just very high from the customers because they are like us. They want to protect their P&L and their profitability. My feeling, it's more difficult than before, but we are able to do as good as we can with our size and squeeze between giant suppliers and giant customers. The fixed cost, unfortunately, no, it's not a EUR 10 million multiplied by four. Why? Because in fact, from 2019, we already started the reduction on fixed costs. For example, in Q2, Q3, and Q4 of 2019, there were already some actions that we started in the quarter before. There is a kind of carryover quarterly- by- quarterly. For sure, the positive impact of fixed costs will be permanent versus 2019 and versus 2020. Plus, we have some still big structural actions that we implemented and that we are still implementing that will have a positive impact in Q2 that we don't have in Q1. One is the strong reduction that we are doing in the Air & Cooling situation. The process is about to close in April and May with savings from the second part of the year. If we have negative impact in one way, in the other hand, we will have also positive actions that we are continuing to implement in the three initiatives. If I may, Frédéric, to drill down on your answer and to answer Martino De Ambroggi's question. There are many actions underway to further reduce fixed costs. At present, we don't expect fixed costs to increase 4x Q1. Okay. Thank you. If I may follow up on CapEx, just to have an update, if you changed your mind on the total amount for the full year. You mentioned inventory are higher because you want to avoid shortages of components, raw material, and so on. Could you quantify this impact that you expect going forward? Sure. For the CapEx right now in Q1 2021, versus the budget that we initially had, we have been able to over-perform. Again, I don't remember exactly the amounts, but we have been very conservative on the launch of CapEx. We will try to maintain this positive impact by the end of the year. No, we have not changed our mind. We will continue to invest on new programs, on everything linked to safety. We have the double-check before investing in the past. Now it's a triple-check before investing. We want to be sure that the activity will justify this increase of capacity or, for example, productivity actions. The strategy is still the same, but we are more cautious when we launch CapEx anytime there is a stagnation of the market. Inventory, right now we have EUR 2 million more than we would have had in a normal situation, mainly steel and plastic. I would like to keep this EUR 2 million as long as the market is under pressure. Thank you. Once we will feel that the market is stabilizing, slowly but surely, we will decrease these extra inventories. Okay. Thank you. You're welcome. As a reminder, if you wish to register for a question, please press Star and one on your telephone. For any further questions, please press Star and one. The next question is from François Billard with Intermonte. Please go ahead. Hi, everyone. Thank you for taking my question. Can you just come back on the non-recurring costs, including your Q1 margins? I see the EUR 5.8 million, on slide nine, on EBIT. Can you just recall quickly what's within the EUR 5.8 million and what amount is also reflected in the EBITDA figure? Thank you. François, the big chunk is the EUR 2.4 million settlement, which closed our litigation with former advisors. You have EUR 1.7 million of favorable exchange differences. We had some insurance recoveries, in the region of EUR 1.5 million, which of course, are not recurring, on files that took place last year. Thank you. Operator, do we have more questions? The next question is from Gabriele Gambarova with Banca Akros. Please go ahead. Yes, thank you. Good morning to everybody. My question is a little bit more strategic. You correctly put much emphasis on the new contracts you got for hybrid and electric vehicles. I was wondering if you could remind me, what is, in your understanding, the value for each electric vehicle in comparison to an ICE vehicle? I would like to understand how much you are going to profit in terms of value for vehicle in that perspective. Thank you. Thank you for the question. The two business units are not impacted in the same way by electrification or hybridization. To start by the most easy one, suspension, I would say that it's not linked. As it is not linked to the engine, suspension is not directly impacted. Nevertheless, as the other business unit, suspension needs to adapt its customer daily because, as we all know, there will be newcomers and new customers in the electrification. Our strategy with suspension is to share with new customers in order to be ready when they will get market share to propose them our suspension. Filtration, it's negatively impacted in the first term because the decrease of the diesel. Of course, there is a decrease on the diesel. On the other hand, we are able right now to compensate not with electrical or hybrid engine products, but with the switch of our product range from purification of diesel to purification of air or oil. The last two years, we really changed a lot of new businesses in this area in order to increase our market share in air and oil to offset the decrease that there is on the diesel and that they will continue to have. As you have seen the figures, right now it's working quite well because we are overperforming versus the global market. In fact, inside this market, if we look at the diesel decrease, it would even be a bigger decrease. This is for filtration. The new product that we will have on filtration won't be linked directly to the electrification or hybridization, but more on the new trend of the purification of air inside the car. For Air & Cooling, hybridization is a good news because with the cooling side of this business unit, there is a multiplication of cooling products. For example, in an ICE car, you have one water pump. In an hybrid, you may have two or three water pumps. It's the same thing for the thermostat housing. There are more water jackets. Right now in Air & Cooling, we are benefiting from the hybrid cars because we sell our new products for the electrical side of the engine. We continue to sell the ICE application products, such as manifold, adapters, or even cooling products. With the full electrification range of Air & Cooling products, we have already a lot on the shelf, means ready to sell as we are doing currently. We are working already with full EV players in Europe or in China. Of course, we work with our traditional OEM, traditional customers, on the electrical side of their product range and product portfolio. Air & Cooling is really right now benefiting from this trend. We need to be cautious because there are a lot of development, lot of program. It requires a lot of R&D, we cannot do everything because at one point, the technology is not fully mature yet. That's why my strategy is to work with a few chosen OEMs where we think they are very advanced from a technological point of view, understand how it works, get expertise, and once that the volume will increase, choose our customers and the product on which we will go. Right now the business nomination in Air & Cooling is quite high for electrical application or full EV customers. Okay. Many thanks. Just to come back to CapEx, I didn't understand if you are confirming the EUR 110 target you gave last time, or we are more cautious than that? I think we will not spend this full amount. Why? Because a lot of uncertainty on many things. Nevertheless, we'll continue to invest where we need to invest. I think we'll be closer to EUR 100 million. Okay, many thanks indeed. The trend is here, but maybe not the full impact. Okay. Thank you. You're welcome. The next question is from Roland Cronin with Value Holding. Please go ahead. Yes, good morning from my side. Thanks for taking my questions. Congratulations to the figures in the Q1. I have just two questions more on the housekeeping side. First one is on the discontinued operations earnings line, where we see a negative impact of EUR 0.8 million. What would be the best guess for the full year at that line? The second question would be on your tax rate. It was very low at 31% in the Q1. Is there a positive influence of the capital gain in there? I have in mind your midterm target is roughly 30%, but in my mind, not the target for 2021. Maybe you could help us there, what would be the best guess for the tax rate in this year? Thanks a lot. Frédéric, maybe I take both questions. Discontinued operations, we do not expect a higher amount for the full year. We've even been prudent in Q1. Certain items still under discussion. Definitely for the time being, we do not foresee any bigger adverse impact on a full year basis. Regarding tax, I said in the last call that we were shooting for something in the region of 30%-40% tax rate. We're still shooting for it. It's what we've done in Q1. It depends on results by geography mainly. The fact that we disposed of one large entity with a significant impact regarding taxes at the end of last year, this helps us in going for this, let's say, 30%-40% tax rate. Okay. Many thanks. All the best. Gentlemen, there are no more questions registered at this time. Thank you for your attendance, and we look forward to the next call, which I believe is going to be for the future results. Many thanks. Thank you. Thank you. Bye-bye. Ladies and gentlemen, thank you for joining. The conference is now over. You may disconnect your telephone.