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Edited Transcript of HANDI.ST earnings conference call or presentation 14-Aug-19 8:00am GMT

Half Year 2019 Handicare Group AB Earnings Call

Aug 23, 2019 (Thomson StreetEvents) -- Edited Transcript of Handicare Group AB earnings conference call or presentation Wednesday, August 14, 2019 at 8:00:00am GMT

TEXT version of Transcript

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Corporate Participants

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* Pernilla Lindén

Handicare Group AB (publ) - CFO

* Staffan Ternström

Handicare Group AB (publ) - CEO & President

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Conference Call Participants

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* Emmanuel de Figueiredo

LBV Asset Management LLP - CIO

* Kristofer Liljeberg-Svensson

Carnegie Investment Bank AB, Research Division - Head of Health Care & Financial Analyst

* Victor Forssell

ABG Sundal Collier Holding ASA, Research Division - Analyst

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Presentation

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Operator [1]

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Ladies and gentlemen, thank you all for standing by, and welcome to today's presentation of interim report Q2 conference call. (Operator Instructions) I must advise you all that this conference is being recorded today, Wednesday, the 14th of August 2019.

And without any further delay, I would like to hand the conference over to your speaker for today, Mr. Staffan Ternström. Please go ahead, sir.

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Staffan Ternström, Handicare Group AB (publ) - CEO & President [2]

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Thank you. Good morning, everyone on the line, and welcome to Handicare's presentation of our second quarter results as well as our first half year 2019 results. My name is Staffan Ternström, I'm the CEO of Handicare. And today, I'm accompanied by Handicare's new CFO, Pernilla Lindén, that has been previously announced. I will get back to Pernilla a little bit later in the presentation. As usual and as we have announced, we will start with a short presentation followed by question-and-answer session. So next slide, please.

So when we summarize the second quarter 2019 and the first half, we can recall that it was a mixed quarter against a tough comparison, and we are not satisfied with that. We declined 1.8% organically, and that means that we are roughly flat for the first 6 months in 2019. We are, however, very pleased with our growth in Stairlifts. That is our core segment and our largest business, and we had a growth of almost 5% in the quarter and 6% for the first half of 2019. This business shows stable margins, and we believe that we still can do more on that side.

In Vehicle Accessibility, we deliver -- we declined 10%. And even if we return to moderate growth in Norway, we see some softer market in Denmark. The good thing is to see that we're coming back to Norway. Our margin has decreased due to product mix.

Patient Handling, our second segment, we see lower booked revenue versus prior year with roughly 9%, and it is U.S. Institutional in the Patient Handling business, which is still a challenge for us. And even if we record a sequential quarter-over-quarter growth, as we talked about in the previous call, we are still declining in that business.

Patient Handling Europe and rest of the world has been impacted in Q2 by some stock-up in the first quarter with some key distributors, and hence, had a lower revenue in the second quarter.

In late May was our noncore business, Puls, divested, a very important step that will allow us to focus on our core businesses going forward.

Looking at gross margin, it was lower than last year, which was [versus] a high comparator, impacted by unfavorable product mix in the second quarter. And OpEx was in good control and lower than prior year. Adjusted EBITA decreased versus last year with 10% to EUR 6.5 million for the quarter. And a lower operating cash flow was recorded, impacted by reduced inventory and timings of accounts payable.

In the second quarter, we also continued on our launch journey of the new straight Stairlifts called 1100, and I was in a launch meeting in May in the U.K. where it was very well received. That launch -- and U.K. is our main market globally. That launch will allow us to take both further market share and improving -- improved margins in the U.K. Stairlifts business.

Finally, during the quarter, we also announced that Pernilla Lindén will take over as the new CFO replacing Stephan Révay who has decided to return to PwC where he came from when he joined us. I want to take this opportunity to say thank you, Stephan, who I know is listening to this call somewhere today.

Pernilla, she's an experienced finance business partner with a strong passion for turning strategy to action, running sustainable growth, maximize profits whilst still improving effectiveness. Before Pernilla joined Handicare in a role responsible for strategy and business excellence, which she joined us by year-end, beginning of this year, she was with Mölnlycke Healthcare as VP of Finance looking after all commercial aspects in Mölnlycke from a financial perspective.

Welcome, Pernilla, and over to you for the financial highlights. Next slide, please.

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Pernilla Lindén, Handicare Group AB (publ) - CFO [3]

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Thank you. Thank you, Staffan for that introduction. Before we start, I just want to start by saying that the numbers we are presenting are excluding the divested Puls business.

I am now on Page 3 of the presentation, Financial Highlights, Group. As Staffan said, revenue decreased by 0.8% in reported currency while constant currency declined 1.8%, very different performance across the business entities.

Accessibility business had a growth of 1.1%. As Staffan said, continued good growth in the Stairlifts business, but partly offset by the weaker Vehicle Accessibility business.

The Patient Handling business declined overall with 8.6% due to lower sales in both North America and Europe.

If we then look at it from a margin perspective, the EBITA adjusted margin at 9.3%, which is down with 0.9 percentage points compared to last year, that is mainly related to gross margin decrease primarily due to product mix. As you know, we had problems with the margin in 2018. This was improved in Q1, and we continued to improve our gross margin in Q2. It was up another 0.6 percentage points compared to Q1.

Improved operating leverage on the cost side. Operating cost decreased compared to last year with EUR 0.7 million. That is largely driven by the head count reduction program implemented in the second quarter last year.

Group costs at EUR 2.9 million, which is slightly lower than last year and in line with earlier communicated EUR 3 million level.

If we look at operating cash flow, that ended up at EUR 0.7 million compared to a strong Q2 last year of EUR 7.4 million. We paid EUR 0.5 million in other specified items, which is related to the former North American management, mainly severance costs.

We are not worried about the negative working capital this quarter, which is negative of EUR 5.5 million. Overall, we have reduced our inventory this quarter, but increase of net working capital is related to timing of payments and, therefore, of temporary basis.

Then finally, we had a leverage of 3.2x operating profit, and that excludes the IFRS impact.

Overall, throughout the presentation, the numbers are not including the IFRS 16 impact. The IFRS 16 impact on EBITA is around EUR 100,000 in a positive way. Adjusted EBITA is EUR 6.5 million but including the IFRS 16 effect, it is EUR 6.6 million.

If we then turn to Page 4, which is the Accessibility. So Accessibility had an organic growth, as I've said, of 1.1%. Continued good organic growth in the Stairlifts business with an overall growth of 4.6%. North America growth behind the double-digit growth that we've seen during last year, but the growth 5.6% in the North American business is very strong due to the very strong Q2 we had in 2018. This quarter is actually the single highest quarter of sales that we have had, and we expect to return to double-digit growth for H2.

The performance in the Vehicle Accessibility business showed a decline of 10.3% due to soft market in our Danish business, but the Norway is then growing moderately.

If we look at the margin, we had an operating margin of 14.2%, which is just down 0.8 percentage points compared to a very high last year. That is linked to product mix in Stairlifts and Vehicle Accessibility. We showed good cost control. Basically, the operating expenses is flat compared to last year.

If we then turn to Page #5 in the presentation, which is the Patient Handling slide. The Patient Handling business declined overall with 8.8% in organic growth due to lower sales in both North America and Europe. The North American business entity showed a decline of 9.2%, mainly driven by the lower sales in our institutional customers in the U.S. But as communicated at the last quarter, the quarterly presentation, Patient Handling North America is growing a sequential quarter-over-quarter by 4.8%.

The European business is affected by stock-up by distributors during the first quarter. But for the first half, Patient Handling Europe is growing slightly behind market growth.

Margin decreased from 13.4% to 11.5%. That is driven by the lower gross margin. The decline is attributed to product mix and reduced cost absorption in the North American operations. Even if the margin has improved compared to Q1 due to better efficiency and slightly better product mix, we still have a reduced cost absorption.

Operating expenses decreased compared to last year due to the head count reduction program we launched last year both in absolute numbers and in relation to revenue. On the positive note, we still have a strong margin performance in the Patient Handling Europe with well-above group average.

Now I would like to hand over to you, Staffan, again, for further details.

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Staffan Ternström, Handicare Group AB (publ) - CEO & President [4]

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Thank you, Pernilla, and thanks for coming onboard.

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Pernilla Lindén, Handicare Group AB (publ) - CFO [5]

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Thank you.

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Staffan Ternström, Handicare Group AB (publ) - CEO & President [6]

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And as we talked about before, a main focus for us is to continue to focus on improving the business in North America, and I wanted to share some second quarter achievements. And as Pernilla talked about earlier as well, we were growing sequentially quarter-over-quarter even if it was with a relatively small amount at 5% growth.

Proposal pipeline in the quarter and the win rate has increased, very important KPIs that we talked about, but it's not fully where we want to be. And some of it is of our projects to be implemented, which further out in time. The pipeline we have supports growth that will be a potential risk that we have delayed in our turnaround 1 to 2 quarters.

When I -- when Tom Vorpahl, our President in the U.S., has been assessing especially the U.S. Institutional business where we do have the challenges, he come -- came to the conclusion that we will change roughly 40% of the sales force as well as leader. The new sales force are hired, and we are in the process of joining them into Handicare.

If we look into the Stairlifts business, which is not necessarily up for a turnaround, but where we really want to continue to drive that well. I talked previously about how we can deliver best practice from our other businesses. And in this quarter, we've been able to launch a new dealer program that we call the Elite Dealer program, and it's an industry-unique partnership program which is really geared to us helping our dealers. And it's really focused on our large dealers to do better business [at least, and then customers].

To improve the order to cash process, we have hired and are in process onboarding 2 critical recruits. One, a Customer Experience Director and another one, which is Logistics Director. And related to that process, and mostly we are happy to see that already, the second quarter, we see improvements in service level and that our order [errors] that I did talk about on previous quarter is now down from 15% down to 5%, and we are continuing to improve that.

So those are some of the things that we bring with us from the second quarter. When we move into the third and fourth quarter and the second half of 2019, we are focused in on them obviously deploying those 40% of the reps, which is 4 reps and also hiring a new VP. We continue to drive activity in the fleet and again, some new customer goods. We are working on further improving our value proposition and especially on the below-the-bar segments. So after we install the ceiling track hoist, there's a lot of consumables. We can sell into that, and we are driving that, and we're supporting that with new incentive plans as well and trainees.

When we look at how we organize ourselves across North America and most specifically in the U.S., we had talked about how we change our HUB strategy from being full-service HUBs, and now we move into more of the regional sales office. We're still keeping 3 full service HUBs across U.S. and North America. But we move into regional sales offices, and we are through that transition in end of the fourth quarter. And we also made a plan out for the second half where will we establish and how fast we will bring our investments in new sales offices in the future.

We are also supporting the efforts, we do some very good business with the Veterans Administration and with a few selected IDNs, big hospital chains, and we want to focus more on that. And we have, therefore, decided to recruit, internally promote an individual to our new VP of Corporate Accounts role who will solely focus on those accounts.

And finally, in North America, we are, right now, preparing the launch of 1100 in early fourth quarter, that is aiming to further improving margin in the Stairlifts business, but also continuing the journey in the U.S. to North America to take share.

And that kind of concludes the -- our efforts in North America for this call.

Besides that, and many other things, I've also been busy in what we talked about in the opening around the Puls divestment. And on 22nd of May, we divested Puls to Mediq, and this is a very, very important step that we have talked about on those calls that it may happen in the future, and it will help us to focus on our core businesses, the one that remains. And this divestment then creates additional capacity for growth, both organic and through M&A. We are pleased with the deal terms, and this will allow us to deliver better growth in comparative and better margins going forward.

So in summary, against the top quarter in 2018, we were declining 1.8%. We're all pleased with the growth in Stairlifts and the stable margin. Vehicle Accessibility, we're working hard with to continue the improvement in the Norwegian business, which we see going in the right direction, and then addressing the softer market in Denmark.

Patient Handling, sequential growth, but still reports negative growth of 8.6%. Adjusted EBITA margin, down very much due to lower gross margin from unfavorable product mix. And I would say that we have other expenses in good control.

When we then look into second half and the outlook for that, we expect a better second half where we have an outlook or -- that we have in the 4% to 6% target range on organic growth. We see this being driven very much by a continued good momentum in the Stairlifts business, and the launch is there. We see a turnaround and a sort of better contribution from the Vehicle Accessibility group and growth in -- good growth in the second half of '19 versus 2018. And Patient Handling North America will help us in our improvements, but the organic growth may be delayed 1 to 2 quarters compared to our previous communicated target.

If you look at the profit side, the adjusted EBITA margin expect -- we expect to increase in second half versus the first half in 2019. And as you heard me say, very important for us is to continue to drive the successful or the initial great feedback we have on the launch on 1100 into the U.K. market and both in Western Europe and then launch this product successfully in the beginning of the fourth quarter in -- mainly in North America, but also to the rest of the world.

We are continuing in evaluating new markets to enter in the Patient Handling and Stairlifts business, and we are looking at -- continuously at acquisition targets. And the macro trends for these businesses, we continue to see being very favorable going forward.

That concludes our presentation and I want to open up for question and answers. Operator, please.

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Questions and Answers

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Operator [1]

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(Operator Instructions) And our first question comes from the line of Kristofer.

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Kristofer Liljeberg-Svensson, Carnegie Investment Bank AB, Research Division - Head of Health Care & Financial Analyst [2]

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It's Kristofer from Carnegie. Let's start with 4 questions, I hope that's okay. First of all, could you explain the sequential improvements you have in earnings for Patient Handling despite sales being almost flat?

The second question, if you could say a little bit more details about the quite significant change in payables in working capital and why that's only temporary.

The third question relates to Patient Handling. Although we talked about this risk of delays, it seems you think second half should be better. So do you see that already on the order side? Could you give any -- say anything about how orders are developing for the U.S. Patient Handling business?

And also related to the second half of the year, what visibility do you have for organic growth to pick up and especially for the Vehicle business, given that you talked about the weaker market in Denmark?

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Staffan Ternström, Handicare Group AB (publ) - CEO & President [3]

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Yes. So I think I will take the 2 last questions, and then I'll let Pernilla do the earnings and the payables questions. But if I start with Patient Handling in the U.S., we previously thought that in dialogue with the U.S. management, the North American management, that we would come to a quicker turnaround in the U.S., and we mainly talked about U.S. What we see is that we have a better pipeline. We see increased win rates, but we are still a little bit uncertain exactly when those projects will go into execution. And that's the reason why we say that there is a risk that we may not turn around in organic growth for the next 2 quarters. It may be postponed out. But we have a visibility to a better pipeline, but it's further out. And then the other...

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Kristofer Liljeberg-Svensson, Carnegie Investment Bank AB, Research Division - Head of Health Care & Financial Analyst [4]

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Sorry. On that, are you -- have you -- are you growing orders already? Is that the case, but you're not sure when those installations will happen?

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Staffan Ternström, Handicare Group AB (publ) - CEO & President [5]

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Yes. That's partly of it, that we have an order pipeline. And then the other aspect that I wanted to say is that we see this function very well in 2/3 of the sales force, and now we are exchanging 1/3 of the sales force. And obviously, we need to see those people coming in to the business and starting also to generate even if obviously there are some already cleared orders in the business, but it's the timing of the orders and when the pipeline comes to execution which is a challenge for us. So that's on the Patient Handling side. And this is, again, U.S. Institutional.

If you look at the visibility of the pipeline in the car business, it's very clear when we have the deliverables in Norway, and Norway will be the main driver of the pickup in the business. We have a clear visibility to when we're supposed to deliver those orders, and that's mainly for the [underlying] side of the business. If you look at the conversion, we have a relatively clear visibility of that business. We see that with some confidence that the Norwegian business is there.

The Danish business, it's been a softer market. We talked to some other competitors, in general, around the market aspects, and they see the same. So we believe that, that business will stay relatively flat for the rest of the year, and we will come out in about -- on the same levels for the auto business totally than we were in 2018, roughly.

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Kristofer Liljeberg-Svensson, Carnegie Investment Bank AB, Research Division - Head of Health Care & Financial Analyst [6]

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How much is -- of the vehicle business, what's the split between Norway and Denmark in size?

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Staffan Ternström, Handicare Group AB (publ) - CEO & President [7]

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It's roughly 50-50.

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Kristofer Liljeberg-Svensson, Carnegie Investment Bank AB, Research Division - Head of Health Care & Financial Analyst [8]

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Okay. And was vehicle down like 10% in the quarter?

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Staffan Ternström, Handicare Group AB (publ) - CEO & President [9]

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10-percent-ish.

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Kristofer Liljeberg-Svensson, Carnegie Investment Bank AB, Research Division - Head of Health Care & Financial Analyst [10]

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And what type of growth -- to reach your -- the guidance now, 4% to 6% organic growth for the group, what type of growth are you assuming for the vehicle business in the second half?

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Staffan Ternström, Handicare Group AB (publ) - CEO & President [11]

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We don't specifically guide on that, Kristofer.

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Kristofer Liljeberg-Svensson, Carnegie Investment Bank AB, Research Division - Head of Health Care & Financial Analyst [12]

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Okay. But I guess is that -- then, I guess, service will have the same growth, vehicle better and then Patient Handling. Do you assume Patient Handling as a whole will be growing in the second half of the year?

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Staffan Ternström, Handicare Group AB (publ) - CEO & President [13]

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No, but will be improving. And Stairlifts will grow a little bit faster than first half.

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Pernilla Lindén, Handicare Group AB (publ) - CFO [14]

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So if we then come to the earnings on Patient Handling and the sequential increase of profits, bottom line, the main reason for that is that we have a, first of all, a positive product mix compared from Q1 to Q2. We also have been working with our efficiency when it comes to the manufacturing side, even if we still have reduced fixed absorption as the volume is still below. But not also to forget that the operating expense is then reduced. So the efficiency program and the head count reduction program is helping up here in Q2. So those are the main reasons for that.

If we then go to the working capital, as I said, it is of a temporary basis. And if we look at it overall, it's the -- as you say, it's the payables that is, let's say, the issue in that sense. We have reduced our stock, and that also means that the payables will be lower, but most of this is actually only a timing effect of this quarter. We still have -- are working on our target of having a working capital approximately 40% of the revenue, and this is still our target over time. It might then as it's been here varying over the quarters. We still have in stock also the increased stock for Brexit in it.

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Operator [15]

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Our next question comes from the line of Victor Forssell.

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Victor Forssell, ABG Sundal Collier Holding ASA, Research Division - Analyst [16]

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Victor Forssell here from ABG. In terms of your outlook for the remainder of the year, could you please elaborate a bit on the key drivers for the margin improvement if we, at the same time, assume a delay in the North American turnaround?

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Staffan Ternström, Handicare Group AB (publ) - CEO & President [17]

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I can take this. First, we see the main margin improvement coming from -- for the leverage in the Stairlifts business. We are introducing the 1100 Stairlifts, which comes to not only to better product, it also comes to a better margin. So those are 2 drivers in the Stairlifts business. Do you want to add to that, Pernilla?

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Pernilla Lindén, Handicare Group AB (publ) - CFO [18]

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I think also then you have the leverage. We've done the head count reduction on the operating expenses, and you get the leverage of then increased top line over the years. So that will obviously help us. As we see now from Q1 to Q2 also when it comes to Patient Handling North America, we are working on the efficiency. And I think also, there, we are getting slightly better reduced -- slightly better absorption as well even if we're seeing a little bit [low].

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Victor Forssell, ABG Sundal Collier Holding ASA, Research Division - Analyst [19]

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All right. And given the launch of the 1100 Stairlifts in the U.K., is that also a key driver for this 4% to 6% organic growth outlook already this year?

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Staffan Ternström, Handicare Group AB (publ) - CEO & President [20]

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For the second half of the year, we expect to be within the range of 4% to 6%, and it's one of the drivers for it. It's just a few other things that we believe will pick up or turn around a few markets. So it's one of the key drivers, yes.

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Victor Forssell, ABG Sundal Collier Holding ASA, Research Division - Analyst [21]

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So you won't quantify the impact, isolated for what you believe is 1100 will contribute?

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Staffan Ternström, Handicare Group AB (publ) - CEO & President [22]

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No.

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Victor Forssell, ABG Sundal Collier Holding ASA, Research Division - Analyst [23]

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Okay. And lastly, just what will you say are the main risks of not being able to reach these targets that you've set or the outlook for the second half of the year, both in terms of growth and margin improvements?

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Staffan Ternström, Handicare Group AB (publ) - CEO & President [24]

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I think as we alluded to, the risk we see in Patient Handling U.S. Institutional and the timing of when certain projects will go into execution, as I talked about. That's the thing which is hardest for us to estimate and then the risk, which will decide a little bit where we land within that span.

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Victor Forssell, ABG Sundal Collier Holding ASA, Research Division - Analyst [25]

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Okay. But still quite confident to reach that and all other risks in the other areas or units, you'd say?

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Staffan Ternström, Handicare Group AB (publ) - CEO & President [26]

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There is ups and downs in any portion of the business, but we see those kind of balancing out each other relatively well.

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Operator [27]

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Our next question comes from the line of -- Kristofer would like to ask a question again.

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Kristofer Liljeberg-Svensson, Carnegie Investment Bank AB, Research Division - Head of Health Care & Financial Analyst [28]

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Two follow-up questions. The Patient Handling weakness you had in Europe, is that mainly related to the U.K? I think your competitor has reported about the very weak U.K. market. And then I also wonder if you could give some indication on the financial net there going forward of the divestment of Puls?

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Staffan Ternström, Handicare Group AB (publ) - CEO & President [29]

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Okay. So I'll take the first question, and I'll let Pernilla take the other one. When we look at -- we had a very, very good first quarter in the Patient Handling business, Europe and rest of the world. And in some markets, we work directly and we're actually pleased with the performance in the U.K., mixed in Nordics. And then we have been staffing up certain distributors in our -- especially our distributor business, which is rest of the world, which we see kind of drying out, but it has impacted the second quarter so it's not the U.K. business, Kristofer.

Pernilla?

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Pernilla Lindén, Handicare Group AB (publ) - CFO [30]

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Yes. So if we're looking at the financial net overall then, if we're looking at that one, that negative impact that is mainly driving of our revaluation of the multicurrency facility. So it's an FX impact, not a cash impact. I'm hoping I'm answering your question now, Kristofer. It has have nothing to do with this Puls option in that sense.

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Operator [31]

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Our next question comes from the line of Emmanuel Figueiredo.

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Emmanuel de Figueiredo, LBV Asset Management LLP - CIO [32]

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This is Emmanuel from LBV Asset Management. I have 2 sets of questions. The first one is on the U.K. Can you tell us, because of the pound issue, how much of your sales come from the U.K? And on the -- and also on the U.K., can you give us an idea on the stair business, what is your market share? And with Stairlifts 1100, how much you think you could increase your market share? So that's one set of questions.

And the other one is on your outlook statement, you were suggesting that you could enter new markets and possibly continue the M&A. Are you prepared to start up new markets organically or you would enter them through M&A? And related to that, which 2 or 3 markets do you think you would like to be in and you're not in?

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Staffan Ternström, Handicare Group AB (publ) - CEO & President [33]

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Many. So if you look at the U.K. and the market share, we don't necessarily give out exactly what that market share are. We are somewhere 20% to 25% for Western Europe in our market share, and we are higher than that in the U.K.

When we sell 1100 at the straight stairlift and over time replace some of our current straight stairlifts, so there will be some kind of cannibalization. But we also believe we will take some further share, and we don't necessarily guide exactly on when that will be on that.

When we look at new markets and M&A, we said we're looking for a couple of things in M&A. We're looking at things that can complement our portfolio in the Stairlifts, so we talked about -- that could be around vertical platform lifts or some other types of lifts. And obviously, a little bit where those companies may be located, we'll get the new foothold into market but then obviously we'd like to use our infrastructure to leverage that. That will be the idea behind it so when we look at those new lift companies. When we look at where we will move with Patient Handling, we are, today, selling through distributors in some of the Western European bigger countries. And we are looking to -- is the way for us to enter into some of those countries and grew more directly by potentially then acquiring a distributor, get some additional assortment and enter into new markets. So that's a little bit how we look at that in Patient Handling.

And then purely, organically, we look at -- we are strong in Western Europe, U.K. I think we have some good momentum in the U.S. and North America. And we're looking at other markets in rest of the world, it could be in Asia Pacific, it could be in Eastern Europe. And then probably we will deploy that, enter those market that did by deploying some kind of commercial individual and some kind of technical individual when we enter those new markets, and then supply them with the rest of the support from one of the HUBs either in the U.K. or in Netherlands. Hope I answered your question, sir, to the level I wanted to answer.

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Emmanuel de Figueiredo, LBV Asset Management LLP - CIO [34]

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I think you just forgot one. Could you just disclose what is your pound exposure or how much of your sales is roughly going to the U.K.?

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Staffan Ternström, Handicare Group AB (publ) - CEO & President [35]

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Sorry, I'll let Pernilla.

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Pernilla Lindén, Handicare Group AB (publ) - CFO [36]

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We won't disclose that today. The overall sales is around -- in Europe, it's 73% overall, in Europe, yes.

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Operator [37]

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No further question at this time. Please continue.

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Staffan Ternström, Handicare Group AB (publ) - CEO & President [38]

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Okay. Thanks a lot. Appreciate the interest and all the great questions. And by that, I want to thank you for your interest and close the call. Thank you very much.

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Operator [39]

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Thank you. And that does conclude our conference for today. Speakers, please standby. Participants, you may all disconnect. Thank you for joining.