Welcome to Hiab's First Stand-alone Earnings Call. In the first quarter, our profitability improved driven by strong execution in all divisions. My name is Aki Vesikallio, I'm from Hiab's Investor Relations. The results will be presented in more detail by our CEO, Scott Phillips; and the CFO, Mikko Puolakka.
First, Scott will go through the group level topics. Then Mikko will dive deeper into the reporting segments, equipment and services as well as financials and outlook. After Mikko's presentation, Scott will return to the stage for the key takeaways of the quarter. After the presentation, there will be a Q&A session.
With that, over to you, Scott.
Thank you, Aki. Good morning, everyone, from my side. In summarizing the quarter, I'd characterize it as Team Hiab delivered a strong start to the year. The team and our partner network continue to do a nice job of executing our strategic priorities around innovation, commercial and supply chain excellence and delivering our services and segment growth plans, all of which enabled Hiab to deliver strong results across all key KPIs.
With the growing trade and geopolitical tensions, the level of market uncertainty is much greater versus the comparable period, and consequently, our outlook for profitability remains unchanged for the year, and we'll come back to that point later.
So moving to group level topics. The end of the quarter marked the end of the formal program to restructure Cargotec into 3 separate companies due to the excellent work from our former group colleagues and many of our fellow Hiabers around the world. And as a consequence, we started the second quarter as a new member of the NASDAQ Helsinki.
With our focus on value creation first, customers next, we continue to be able to invest in differentiating capabilities to make our business operations and that of our customers safer. Our safety KPIs are on an all-time best level, both for leading as well as lagging indicators, as our industrial injury frequency rate for the quarter was 1.0, and we are on a level of 2.3 on a rolling 12-month basis. So great work by the team as this is a critical pillar of our people, culture and sustainability strategy.
We continue to focus on outcome-based innovations, and one I would like to highlight is in our MULTILIFT brand, as we progress towards a fully automated duty cycle, creating a step-change improvement in safety and productivity for our customers.
Now moving into the order intake picture. The demand story of the quarter was dominated by escalating trade tensions through the last 2 months of the quarter, which negatively impacted order intake in the Americas region, while all other regions increased versus the comparison period last year. As a consequence, order intake for the period remained -- was roughly on the level of the last 10 quarters, was EUR 378 million versus EUR 386 million for the same period last year. So as I mentioned, we're roughly on the same level of average order intake since Q4 of 2022.
Our rolling 12 months' order intake remains on a level of EUR 1.5 billion. And our order book now stands at EUR 601 million, which is 22% below the comparison quarter last year. And in terms of segments, defense logistics were up versus comparable period, so we got a nice tailwind there. And in constant currencies, order intake would have been approximately EUR 375 million. So we benefited around 100 basis points from the currency translation.
Now looking further into the geographic split of order intake. We saw a nice upward trend in Europe and the Asia Pacific regions, while the Americas was down to the softening demand -- or down due to the softening demand in the U.S. Europe, Middle East and Africa represented 54% of orders and was up EUR 24 million from EUR 179 million to EUR 203 million or 13% compared to last year. Americas, on the other hand, was down EUR 37 million from EUR 182 million to EUR 145 million or 20% and APAC was up EUR 5 million from EUR 25 million to EUR 30 million or about 20%.
Now moving into our sales. Our commercial and supply chain teams together with our partners continue to do excellent work in converting our inventory into revenues throughout the quarter. As a result, our revenues were down 1% in actual exchange rates from EUR 415 million to EUR 411 million and down 2% in constant exchange rates. Rolling 12-month sales ended Q1 at EUR 1.644 billion, so slightly below last year's actual, so indicative of the normalization of our order book and the steadily increasing revenue curve of our services business, which increased in relative amount from 28% to 29% of sales.
Now as we have a 4 to 6-month lead time in converting orders to sales, the geographic split of our revenues varied compared to the visualization you saw from the order intake. Therefore, EMEA was down EUR 9 million from EUR 201 million to EUR 192 million or 4%, while the Americas were up EUR 11 million from EUR 184 million to EUR 195 million or 6%. And the Asia Pacific region was down from EUR 29 million to EUR 24 million or 18%. We're really pleased to see that the book-to-bill was positive in the quarter for both EMEA and the APAC regions. And also pleased that our Eco portfolio sales were nicely up from EUR 115 million to EUR 142 million or 24% and constituted 35% of total sales versus 28% in the period last year.
Now turning your attention to our earnings on the EUR 411 million of sales, we continue to benefit from the implementation of our strategy actions biased towards profitable growth. As a consequence, our profitability has improved for the period for each of the past 3 years. So nicely moving from EUR 53 million in Q1 of '23 or 12.2% to EUR 61 million last year or 14.8%. And then, of course, where we land on the quarter this year at EUR 66 million versus EUR 61 million last year or 7% increase, and that's despite the slight reduction in revenues.
And as Aki mentioned in his opening, the contribution comes from all divisions focusing on reducing material and conversion costs most notably. The improved profitability enabled a good development of our operative return on capital employed. And moreover, the team delivered excellent results in reducing our net working capital and combined with the improved profitability, enabled Hiab to deliver 170% cash conversion, which Mikko will elaborate on further during his presentation.
Now as we know, there are many questions regarding the tariff and trade situation with the U.S. We thought it would be helpful to provide you with a graphical representation of our supply design of products that we provide to our U.S.-based customers. So looking at the visualization left to right, we are most -- where we are most exposed to the current trade situation is in our loader crane business, as they are assembled and primarily sourced with suppliers based in Europe.
Next, moving to the right, we have our truck-mounted forklift offering with design and sourcing primarily in Europe with assembly of all U.S. demand fully in place in the U.S.
Next, we have our fully U.S.-based businesses for both the demountables and tail lift under the Galfab and WALTCO brands with some sourcing exposure from component suppliers in both China and Mexico. So we think that we're extremely well positioned, geared to scale in the U.S. market and are executing plans today, as we've talked about for each of the past 4 or 5 years, in fact, to expand our exposure to our very important market in the Americas.
Now wrapping up the group section, we wanted to provide an update on how we are progressing towards our long-term targets we shared last year. So recapping what we shared earlier in the year during our Q4 earnings report, our growth over the cycle, return on capital employed and sustainability ambitions remain unchanged from what we communicated in our Capital Markets Day last year. Our operating profit now that we have clarity on our starting point as a stand-alone company has been adjusted to 16%. Further, we target a gearing on a long-term basis to be below 50% and a dividend range of 30% to 50% of earnings per share. Therefore, through Q1 this year, we believe we're still on track to achieve our long-term targets, as a rolling 10-year compounded annual growth rate is approximately 7%. Our last 12 months' operating profit is 13.7% and the last 12 months' operative return on capital employed is 29.6%.
So with that, I will turn it over to Mikko to take you through the financials and then rejoin the stage later for a brief wrap-up in Q&A. So thank you.
Good morning also from my side as well. Next, I will describe the quarter 1 performance of our 2 very freshly established reporting segments, Equipment and Services. And let's start with the equipment business first.
As a reminder, our Equipment segment consists of loader cranes, demountables, tail lifts and truck-mounted forklift divisions. Equipment orders declined 6%. The decline came from delivery equipment and in particular from the U.S. market. Lifting equipment orders were flat during quarter 1.
During quarter 1, most of our deliveries came from the 2024 order book. Therefore, the lower order intake in the U.S. was not visible yet in quarter 1 sales. The operational execution from all our equipment divisions was really good. Despite lower sales, as you can see, all equipment divisions improved their profitability. This is thanks to the commercial and sourcing actions, which Scott referred already earlier.
When looking back the past performance of equipment business, the profitability has been actually quite stable with this kind of quarterly sales of roughly EUR 290 million. You see the profitability dip in quarter 4 2024. And as you remember, we booked EUR 15 million non-recurring costs during that quarter. Most of that was related to the Italian operations restructuring, where we expect the benefits to materialize in the second half of this year.
As you can see also from the right-hand picture, the gross margin improvement has been the main driver for the equipment business, strong quarter 1 profitability. This improvement stems from the decisive commercial and sourcing actions what we have put in place already in 2024 and now harvesting the benefits from that. These are no kind of onetime actions, but really continuous improvement and really an integral part of our strategy execution.
Then looking at services, services orders grew actually very nicely 8%, and this came from recurring services like spare parts and maintenance and to some extent, also from installations. This growth is actually the result of our service strategy execution, for example, growing the number of connected units and service contracts. Last year, we had roughly 48,000 connected units already and 20,000 service contracts. So really nice growth from 2023.
Sales was on last year's level. Basically, the recurring services sales increased, while we delivered during this quarter a bit less installations compared to last year. Services profitability has been very stable over the past quarters, as you can see from the left-hand picture, and also quarter 1 was no different from the history. Sales volumes measured in constant currency were slightly down as we delivered a bit less installation services compared to last year.
Next, let's have a look on the total Hiab financials, and these are Hiab's financials, excluding the MacGregor's continuing operations. As you saw from Scott's presentation, the quarter 1 performance was very solid. As mentioned already in a few instances earlier, commercial and sourcing activities are the main contributors to the 1.4% unit improvement in our gross profit margin during quarter 1.
This improvement has more than offset 1% sales decline as the graph on the right-hand side shows. When we look at the lines below operating profit, first of all, our average interest on loans is fairly low. It's 1.99% per annum, and the company has also a sizable cash position. So it's quite natural that the interest expense has remained on a low level. Our tax rate was 28% during quarter 1.
Hiab's balance sheet continues to get even stronger. If we look at the balance sheet, excluding MacGregor, Hiab's gearing was minus 12%. This gives some EUR 630 million headroom if we think our objective to keep the gearing below 50%. We repaid a EUR 100 million bond in January 2025. And as you can see from the right-hand picture, we do not have any major debt maturities coming up anymore this year. There is still EUR 150 million bond, and that will mature in 2026.
Like Scott mentioned already earlier, we had a really strong cash flow during quarter 1. And just for the Hiab, the cash conversion was around 170%. Net working capital declined significantly. Our inventories declined by EUR 15 million. And then we have been able to release also significantly money from other net working capital elements like VAT receivables from quarter 4 level. MacGregor is still included in our total reported cash flow. But as mentioned already earlier, most of the quarter 1 cash came from Hiab.
Concerning our outlook, we maintain our outlook for the year 2025, i.e., the continuing operations in practice, the stand-alone Hiab comparable operating profit is expected to be above 12%. We have defined this outlook in early 2025, already taking into account the potential uncertainties in the U.S. and also outside the U.S. arising from the recent trade tensions.
And with that, then I hand over back the presentation to Scott to summarize the key takeaways.
Thank you, Mikko. Let's see if I can get the right one here. There we go. So as mentioned earlier, we began 2025 with a strong start through excellent execution from our entire team and our partner network. So we remain confident to reach our long-term targets.
Further, I believe we are exceptionally well positioned to deal with the market uncertainty with the resilience we have designed in our business in terms of how we operate through our decentralized organizational design, our asset-light approach to make versus buy decisions, our people and culture focus from our people strategy, employee first, customers next in order to secure our ability to deliver superior customer experience and our portfolio management philosophy of prioritizing value creation before growth.
With the market uncertainty, we believe it is prudent to keep our outlook for the full year as we've shared previously. And as Mikko stated, as we communicated, that's intended to be where we thought at a minimum level at 12%, and we'll provide more details on that as we progress through the year.
So with that, I'll hand it back over to you, Aki.
Okay. Thank you, Scott, and thank you, Mikko. Operator, we are ready for the Q&A.
[Operator Instructions] The next question comes from Antti Kansanen from SEB.
It's Antti from SEB. A couple of questions from me, and if I start with the demand and order side of things. So maybe a bit more color on the situation in the U.S. How did you kind of see the customer activity and orders trending, let's say, late into the quarter and start of the second quarter? And maybe I wanted to better understand when we look at kind of the comparison periods regarding order intake, is the Q1 '24 a good representative for the other quarters of last year as well? What was the share of Americas in the total order intake, just to get the potential pressure right on the group level estimates?
Yes. Shall I start or...
Yes.
Yes, sure. Antti, thank you for the good question. In terms of the demand picture, as we think about how did it develop through the quarter and then I think in particular, in the Americas, the story is similar to actually what we were talking about prior to the current trade situation, and that was around with the inflationary environment that had preceded this time and high interest rates, we experienced slower decision-making. I'd say it's a similar effect. As we progressed through the quarter, I'd say that, as you would naturally expect, would have intensified moving from January into February through the end of March. So we did see a bit of a step down, if you will, driven by delayed decision-making in the Americas.
And then I think in terms of the percent contribution, if you compare to the comparable period last year from the Americas, I think that last year probably represented a pretty fair representation of what we saw throughout the year.
Okay. Maybe if I interpret it right, then you kind of enter into Q2, maybe a run rate, which is a little bit slower than Q1 on average and the comparison figures are pretty much the same. I just wanted to get maybe better clarity then on Europe. Is the sentiment there kind of accelerating? Or do you kind of see also the trade tensions maybe taking a little bit of the improvement away in late to the quarter?
Yes. If we speak just about first quarter, the demand sentiments in Europe were obviously more positive than the prior year comparison period, both in terms of our leading indicators as we look at the entire opportunity funnel from our CRM as well as the absolute order intake. And then I'd say, in particular, on defense logistics.
Having said that, I'd point out 2 additional segments. If you think about waste and recycling, we see a nice level of stability in our demand that's enabled from that segment. And then construction, I would say, still remains on quite a slow level. So we're anticipating that to pick up.
All right. Then I would also wanted to ask about the profitability. And I mean the Q1 EBIT margin is in line with your kind of '28 target. Obviously, it's only 1 quarter. But when I listen to you, it seems like there's nothing very extraordinary on the Q1 performance. So you target 16% with, I guess, a notably higher sales levels in 2018. The starting point is 16%. You're guiding for 12%. So just wanted to better understand what are kind of the negative impacts aside from volume that are potential for the coming quarters? And was the 16% now on Q1 a clean performance? Or was there something extraordinary, which is difficult to repeat, let's say, near term?
Yes. The quarter 1 was clean in that sense that like we said already earlier, the decisive actions what we have taken in the past to improve the commercial activities to improve the -- or implement sourcing activities. Those past actions have been contributing now to the quarter 1 and continue to also contribute to the coming quarters. So like you elaborated already earlier, the volume is perhaps the main kind of negative headwind what we could see from the -- for example, from the U.S. slower order intake.
Is there a meaningful gross margin difference between equipment sales in the U.S. versus rest of the world?
Basically, there are some fluctuations between the markets, between the product categories, between the different route-to-market approaches. I would say perhaps that in the U.S., we have so far, most of our revenues coming from the direct route-to-market, which takes the gross margin perhaps a bit higher than in some other regions. So that might be the perhaps the bigger differentiator compared to some other markets when we look at the U.S. region.
Yes. Just 2 additional points of color perhaps for Antti. One being much more related, as Mikko said, to the channel strategy or the route-to-market. So a little difference, whether it's through a network partner or direct. The second piece is that our equipment tends to be configured slightly different depending upon the region. So it has a slight impact, but more to do with the combination of equipment configuration and then route-to-market.
All right. That's very clear. And then the final one is just a housekeeping question on MacGregor. Any updates on the potential timing of the deal and the impact on your cash or net debt?
No changes in the cash and net debt. Like communicated already earlier, we anticipate EUR 220 million cash flow impact -- positive cash flow impact and the closing latest by July 1. We are working on the competition authority process that has been going on smoothly. But for example, the separation activities, IT separations and all that kind of activities have been mostly completed already now. So looking solid from the divestment point of view.
The next question comes from Panu Laitinmaki from Danske Bank.
I have a few questions. Firstly, starting from the guidance. So I kind of understand that it's a floor, but it's still quite low compared to Q1 level. So I mean, what are you seeing going forward? And what would it require for you to kind of upgrade it? How much visibility do you need to say it's, let's say, more than 13% instead of more than 12%?
Yes. I can get started then. I'm getting a look from Mikko. Let me start, Panu. Thanks for the excellent question. And as we've stated before, we've got with our order book coverage roughly 5.5 months of visibility. So we have a good understanding of the margin potential of the open order book. The picture gets a bit more fuzzy once we get beyond the 5, 5.5-month range. So at this point in time, what we'd like to see is yet another quarter of stability on the demand picture, and then it might make sense to make an adjustment to the outlook. But given the level of uncertainty, I think now after quarter 1 results, we'll wait at least another quarter to see if that level of stability continues.
Okay. Then on the tariffs, did I understand correctly that you aim to assemble more of your products in the U.S. so that you would produce most of that locally?
Yes. That's been a -- it's been a long-term plan on our part, and we've been executing step by step on that plan as we're currently configured much different than we were perhaps when we first met. And we continue to execute on that strategy, both in terms of assembling our own product, but then also enabling a greater portion of the products to be sourced in the region as well. It just makes sense long-term in terms of the currency exposure.
Okay. Then finally, just so I understand it fully. So there is kind of geographical difference in margins and U.S. is probably high and then U.S. volumes coming down. So that's diluting. But what about kind of -- you said that direct sales has higher margin and you aim to expand in the U.S. through dealers. So is that kind of a, let's say, structural headwind that's something you baked into your long-term target?
Yes. This is something what we have taken into account when we have been setting the long-term target that there can be a certain small dilutive impact from the route-to-market channel. But on the other hand, then we have higher volumes and better leverage on the fixed cost. So there are -- I mean, 60%, 70% of our revenues are coming from the dealer channel. So it's really a very important channel for us and offers good growth opportunities, not only in the U.S., but also in the other regions. So nothing what we would not like to execute in the future.
Okay. Can I still squeeze in a final one. How much was defense out of your orders in rough terms in Q1?
We have had -- in the past, we have had defense representing roughly 6% of our revenue. So I would say that it has been on that kind of level.
[Operator Instructions] The next question comes from Johan Eliason from Kepler Cheuvreux.
This is Johan at Kepler Cheuvreux. I appreciate your picture on the tariff situation. So we know where products are made and assembled for the U.S. market. But can you give some feel for -- I mean, tariffs is a relative game. Is there for any of these categories that you are worse or better positioned than your competitors locally?
Yes. Given the level of insight that we have on our competitors locally, where we have best visibility, Johan, would be in our tail lift business, where we have a WALTCO brand for the U.S. Americas market and we're situated similarly to our biggest competitor, if you will. Both of us have some exposure to tariffs through sourcing. And at the same time, then both have complete manufacturing within the region.
And then with the balance of the -- then, of course, our Galfab brand as well on demountables, we're similarly situated as the market leader, the #2 player, and then we're probably #3. And then with the balance of the portfolio on the lifting solutions side, we're probably similarly situated, not knowing more details about how some of the competitors. All of us are non-U.S.-based companies providing knuckle boom solutions within the U.S. market.
Good. And the second question regarding this, how is the rough sales split between these categories in the U.S.? Or does it differ significantly from the overall sales split?
We have certain delivery equipment is perhaps more represented in the U.S. compared to the other regions, delivery equipment, meaning tail lifts, truck-mounted forklifts and the demountables products.
Okay. Excellent. And then finally, just a question again for you, Mikko on MacGregor. So nothing changed there. You will receive EUR 220 million at the latest of 1st of July, if I understand it. But I also noticed the net cash position of MacGregor seems to be EUR 144 million. So the delta when you receive the EUR 220 million is basically EUR 76 million in cash. Is that correct?
That's roughly right. Of course, MacGregor's net cash balance lives depending on the, for example, advances and other net working capital elements. So depending on how advances, for example, are coming or being used now during the coming month or months, the net cash position may still change for MacGregor. But the roughly EUR 220 million is still holding.
Yes. But that basically means if the deal would have been concluded now at the end of March, the net cash received for you would be sort of EUR 76 million, which is way off the EUR 490 million in EV you announced.
Yes, like we have said already earlier, the advances received are treated as debt in the calculation EV -- in the sales price calculation. So that's something what will fluctuate.
The next question comes from Tomas Skogman from Carnegie.
This is Tom from Carnegie. I wonder about the share of Chinese components in the products that you sell in the U.S. as a total.
Yes. As a total, it's actually quite small, Tom. From a percent basis of the bill of material, it's not material. But of course, given the level of tariff, there's some impact.
So it's less than 5% or what is it?
Less than 10%. And that's less than 10 -- and just to redirect a little bit or provide a bit more color, there are 2 product lines then that would be impacted there, and that would be the WALTCO brand and the Galfab brand. So it's not -- you can't -- don't do the math where you would back off for the entire quantum of the cost of goods sold versus the revenues in the U.S. but relative to just those 2 product lines.
But it's also good to note that as a response for the tariffs, we have also introduced surcharges, which are aiming at offsetting the tariff impacts, not making us to earn more or less, but just offsetting the tariff impact depending on which country the component imports would be coming from.
And this is where I'm heading, of course, the pricing of this, how do you -- I mean, that you compensate for that, but there might also be surprising kind of calls from suppliers that actually, we use a sub-supplier that we have found out has sourced from China as an example, et cetera. I mean how do you deal with this with getting new information all the time regarding supply prices and prices you don't get in a bad situation?
Yes. I'd say with the work that we've done over the past several years on the responsible sourcing as well as on the overall category-by-category sourcing strategy, we're actually in pretty good shape of having good visibility, Tom, to not only Tier 1 suppliers, but then Tier 2 and Tier 3. I can't say there isn't a possibility of some surprise in the future, but we've got, at this point, pretty good visibility. I think more of the issue will be as the tariff picture changes than having the ability to adjust.
So no surprising bad calls from suppliers so far that they will need to hike prices more than expected.
Yes. Yes.
And then on just pricing generally, what do you see in the market? If demand is softening in the U.S., coming back a bit, in Europe, your competitor has a lot of debt, et cetera, and it's vertically integrated. What do you see in pricing at the moment?
Yes. It's the same environment that as we've talked about this topic before. It's always competitive. We have extremely professional buyers, tough negotiators. And so therefore, it's important that you sell on the value that you provide not only in the equipment solution, but then also the service solution. So that will always be a factor. And then we've seen the competitive landscape also making price adjustments relative to the tariff picture as well, some higher than what we've gone out with given our exposure, some slightly lower probably as a consequence of their exposure as well. To me, it appears as across the board, we're all trying to find a way just to offset the impact.
And then like I mentioned already earlier, we do a lot of actions in the sourcing area, design to cost activities, collaboration with suppliers. And like Scott said, the aim is to have a net positive impact on the prices. So it's not only about the pricing, but also how we manage the cost of goods sold.
Yes. And that's my kind of last question about this savings in commercial and supply chain activities. Can you quantify what was reached in Q1 somehow out of what you announced for the savings in Q4 and what the savings will be in the coming quarters and in full year '25 as well?
Yes. If we separate 2 elements. One is the restructuring program, which we initiated last year, we booked that EUR 15 million one-off costs to that -- related to that. And majority of those savings are related to our Italian assembly operations restructuring. And like I said, those will be mostly visible in the second half of this year. And then if we think this kind of commercial and sourcing-related activities, actually, you can see quite well in our gross profit margin, 1.4% units better with quite similar volumes compared to last year. So that's the contribution from those actions.
But the question is how is this in coming quarters? Have you already reached kind of the full potential from the sourcing savings or will be better for each quarter? Or how is it?
I guess it's a kind of continuous work. It's not something what starts and what ends. But every year, on a rolling basis, we are looking savings pipeline and new ideas how we can optimize the component base. So it's a component cost base. So it's a kind of continuous work.
Yes. Yes, I can't give you an exact figure, but also bear in mind, most of our direct sourcing is as a contract pricing. So there's not typically a month-to-month fluctuation. We did see some of that early COVID period. But we, generally speaking, have rolling contract pricing for a good majority of our direct sourcing. But as Mikko said, we are constantly having workshops with our supplier partners, working through design for manufacturability, design for cost opportunities. And those are being executed quite nicely.
And then building a bridge for this EFFER savings in H2 this year and for '26. Can you give an update on that?
Basically, the assembly operations consolidation has progressed well. We have been moving most of the assembly operations to our main Italian site in Bologna. Bologna, as said, we anticipate that the benefits start to then become visible in the second half of this year.
But the money, you save?.
We have basically, overall from the last year's restructuring, we are anticipating EUR 20 million cost savings this year, and that's holding. Not all will be visible in the SG&A costs. There are quite a lot of savings happening above the gross profit. And part of that is also visible in this 1.4% year-on-year improvement already.
So the savings are EUR 20 million on a rolling basis by the end of this year, but the P&L savings are EUR 10 million this year and another EUR 10 million next year. Is that how we should read it?
Most of -- basically, most of the savings should -- most of the EUR 20 million savings should be in 2025 P&L.
There are no more questions at this time. So I hand the conference back to the speakers.
Thank you for the great questions and for the great answers and presentations, Mikko and Scott. So just a reminder, we have a site visit coming up 18th of September, so you can register through the link on this presentation or through our website. We will publish our second quarter results on 23rd of July.
So stay tuned, and thank you.
Thank you.
Thank you.
