Earnings call transcript: LINE Smart Mobility’s Q4 2024 results show mixed performance

LINE Smart Mobility reported its earnings for the fourth quarter of 2024, revealing a mixed financial performance with significant revenue challenges. The company posted a full-year revenue of CHF 16.99 million, falling short of expectations. Despite this, the company achieved a positive Q4 EBITDA of CHF 1.8 million. The company’s strategic initiatives in product innovation and cost management were highlighted during the call. According to InvestingPro data, the stock has shown remarkable resilience with a 199% year-to-date return, though trailing twelve months EBITDA remains at -$7.48M.

Key Takeaways

• Full-year revenue was significantly below expectations at CHF 16.99 million.
• Q4 EBITDA was positive at CHF 1.8 million, indicating some operational efficiency.
• The company is investing in new battery technologies with upcoming product launches.
• Market conditions in 2024 were challenging, particularly in the battery sector.
• The company received a supplier award, enhancing its competitive position.

Company Performance

LINE Smart Mobility’s performance in 2024 was characterized by a significant drop in revenue, attributed to tough market conditions in the battery industry. The company managed to maintain stable equity at 19.5% and reduced trade payables by 95%, indicating strong cost management. Despite the revenue shortfall, the positive Q4 EBITDA suggests improvements in operational efficiency. InvestingPro analysis indicates the stock is currently undervalued, with analysts maintaining a Strong Buy consensus. The company’s current market capitalization stands at $21.71M, reflecting the market’s cautious stance despite recent operational improvements.

Financial Highlights

• Full-year revenue: CHF 16.99 million (below expectations)
• Q4 EBITDA: CHF 1.8 million (positive)
• Full-year EBITDA: Minus CHF 4.2 million
• Balance sheet reduction: Current assets down to CHF 7.3 million from CHF 44 million

Outlook & Guidance

Looking forward, LINE Smart Mobility views 2025 as a transition year with expectations of market stabilization and growth. The company aims to expand its customer base and application ranges, targeting the first grid business project in the DACH region in the second half of 2025. By 2026, the company aims to return to its 2023 revenue levels. InvestingPro subscribers can access detailed financial health metrics, which currently show a WEAK overall score of 1.48, suggesting room for improvement in the company’s transition period. Get access to over 30 additional key metrics and ProTips with an InvestingPro subscription.

Executive Commentary

Joachim Damaschi, CEO, stated, "We survived. And I think we all know what happens in the battery market." This reflects the challenging market conditions the company faced. Michael Reich, Head of Sales, added, "The market is finally stabilizing and we are seeing some signs of growth," indicating optimism for future performance.

Risks and Challenges

• Market volatility in the battery sector could impact future revenue.
• Supply chain disruptions may affect production and delivery schedules.
• Intense competition in the commercial vehicle market could pressure margins.
• Economic uncertainties in key markets like the US, Canada, and Europe.
• Technological advancements by competitors may challenge the company’s innovations.

LINE Smart Mobility’s earnings call highlighted the company’s resilience amidst challenging market conditions and its strategic focus on innovation and cost management. The upcoming product launches and market expansion plans provide a cautiously optimistic outlook for the future.

Full transcript - LMI Aerospace Inc (LMIA) Q4 2024:

Jens Hecht, Moderator, LINE Mobility: Good morning, ladies and gentlemen. Welcome to the conference call of line e Mobility regarding the Q4 and financial year 2024 results. This call will be recorded. Currently, all participants are in a listen only mode. My name is Jens Hecht, and I will be the moderator today.

On the call, we have the line management team, doctor Joachim Damaschi, CEO Jorg Peter Han, CFO and Michael Reich, global head of sales. We will kick off the presentation of the financials and then up then give an operational and strategic update. Jorg Pederhan will present the q four and full year ’2 thousand ’20 ’4 financial results. Afterwards, Johann Damaski and Michael Reich will give you an update on the business development and the market potential. After the presentation, the line team will be available for any of your questions.

You will be able to ask questions via the q and a chat function, or you can raise your hand virtually, and you will be unmuted to ask your question. So let’s start with the presentation, and I would now like to hand over to Jorg Peter Han.

Jorg Peter Han, CFO, LINE Mobility: Thank you very much Jens. Good morning everyone. Dear investors, first I maybe next slide please. Thank you. First, I want to highlight some points in Q4 and then change to the full year picture.

So Q4, as you can see, was a weaker quarter than we expected. Nevertheless, we could sell shares in Tufsut battery testing to Tufsut, which improved our EBITDA. So Q4 was positive with 1,800,000.0 and the best quarter last year. Going to the operating cash flow, it reflects actually the clearing of the outstanding trade payables, which had a tremendous which was a tremendous effort at the end until the end of last year. Next slide, please.

Coming to the full year picture. Yes. The full year ’24 revenue of 16.99, well below our expectations. Nevertheless, it shows how difficult the market environment was, and it’s discontinued throughout the whole year. On the other side, we still needed to invest strategically, and and this increased our personnel expenses compared to last to to the year before.

Also showed in capitalization of the development projects. Operating effort expenses showed these efforts as well and also included contract development work for the new chemistry cells, especially in the NMC Plus. And finally, we had an EBITDA of minus 4.2 throughout the whole year. Next slide, please. The before mentioned is also, as you can see, reflected in the cash flow statement.

We repaid heavily the trade payables and used our inventory to provide customers with the packs. We used the cash from divesting our joint venture shares and, of course, and also the repayment of the connected loans to pay these operating activities. The financial cash flow represents the scheduled repayment of the bank loan. All in all, we kept on investing despite this difficult year. Next slide.

So looking at the balance sheets after the information of the movements and the activities, it shows exactly these reduction of the balance sheet by reducing the inventories and the receivables from overall current assets almost CHF44 million to CHF7.3 million. And on the other side, the liabilities were reduced, especially by the trade payables, which we could reduce by 95% until year end. So we cleaned up the balance sheet. And in the end, the equity we could remain stable at 19.5% in comparison between these two years. So overall, it was kind of a success story, I would say, despite this bad year.

And I want to to give over hand over to Joachim in the next slide, please.

Joachim Damaschi, CEO, LINE Mobility: Joachim, thank you very much. Good morning also from my side, and I’m happy to present what we achieved in the last year. The success story that Jorg already mentioned is we survived. And I think we all know what happens in the battery market. We look to big companies on the cell, but also on the battery protection.

We are still there and we still have our customers. Of course, yes, the last year was a difficult year, and I think we have seen this on the numbers. But we tried to reduce cost. Partly, we have been running in short time work in our plant for cost reduction. On the other side, we concentrated on the development on two major development project.

We have shifted the priorities. So we did not start with LFP modules, but with the NMC plus modules for the new battery. And we will supply to our customer the first test samples end of this month, so that they can start the integration into their vehicles. We have been also able to develop the next step of our immersion cooled battery. What we did is to send out all the necessary sample to our major OE customer.

They have built up the vehicles. We have been able to fulfill all the test parameters both on the test benches with the OEM, but also in the vehicle. The vehicles have been built up. It’s not only one vehicle. It’s two vehicles, one with the 800 volt system with very high power of three battery packs, 1.5 megawatts.

On the one side, this is a high performance car, but we also have been able to build up a 400 volt plug in hybrid, what would be then the first serial application for our immersion cooled battery. The tests are still going on. We have fulfilled everything. Of course, we have satisfied the customers’ expectations and I will come to this later on together with Michael Reich when we are talking about that what we expect from the market. I think what was also a good success in this year is we have been able to reduce the bill of material for our SE09 battery pack by renegotiating sell prices and part prices, so that we are able also to be competitive in the market now.

I think we all know that there is a huge pressure in the market because of overstock and other things, but we see ourselves in a position that we also can be competitive here as well. I think we are also now working on additional new products, and this is something that we will hear on later also as well. We are looking for a cooperation with BSS battery manufacturer so that we can also be in this market as well. We also have been able to win the DHL, Deutsche Post, repair business for the street scooter vehicles. This is currently running.

We have been able to build up a remanufacturing line in New Braun in Hilburghausen in our production facility, also according to the specifications of our customer. And we are repairing everyday modules to be shipped back to DHL. We are also now on the negotiation of building up a second life battery pack for all the street scooter vehicles, because Deutsche Post DHL, they want also to take them in a second battery life, the vehicles for different reasons because they are satisfied with the street scooter cars outside, but also there is a lack of availability of new vehicles as you know. So that we are asked if we can also then supply them with spare parts, battery packs, not only modules, what we are doing currently, but also battery packs. I think we all know they have more than 20,000 vehicles out in the field.

How much at the end it will be? We do not know. We are just in the negotiation phase when we can start with this. But this is something where we are very positive for the future also to bring some baseload in our manufacturing. I think you also have heard that we have announced cooperation with a development engineering company Hoffer.

This is something that we have been able to achieve with them together. They are also now because we have been developing together with them also our immersion cooled battery module. They have also access to other customers, especially in the OE business in other areas as well. And they are now also talking to different customers, not only passenger car vehicles, but also in their industrial sector where a lot of companies now look for new batteries and for companies who are still stable and available in the market. We are also talking with a big automotive supplier company based in Stuttgart.

They also want to work together with us. They would be able to prepare a battery management system for our immersion cooled battery. They are also willing to support us in the thermal management components. So we are continuously talking with them and they are also very positive and they announced this also to their customers. So I think at the end, we are proud on that what we have achieved last year.

We are still there. We have been able to reduce our liabilities by a really huge amount. That means we did not think that we would be able to come to this low amount of outstanding liabilities, especially to our big suppliers where we get the sales from. And so we are very positive also for the future. And now I would like to hand over to Michael Reich, who gives us an overview on that what happens in the market, and I’m happy to answer your questions later on.

Thank you.

Michael Reich, Global Head of Sales, LINE Mobility: Good morning. This is Mikael speaking. I’m responsible for sales and marketing in LINE Smart. Thanks for joining this call. It’s a pleasure talking to you again and giving an update on the markets LINE Smart is focusing on.

As a recap, I would like to start with this slide. Here you see the focus markets and the focus applications of LineSmart. As you might know, we have two focus areas. One is mobility, so the battery is used for getting a propulsion. And one is called stationary storage, where we store energy to have it available later again.

What you can see here are the known focus applications, commercial vehicles like electric bus e trucks, especially smaller e trucks and smaller e buses. This is where we have USP in the market. And we are also focusing on off highway vehicles. What is new here is that we are also having requests now coming from the market, which is more going in the direction of defence, where the need of energy in the field in an off grid environment is needed. Then last but not least, what is very important is that our immersion cooled battery is used for the electric vehicles, so like the battery electric vehicles and also the plug in hybrid vehicles.

But what we also realized is that this immersion cooling battery is also giving a big benefit for the commercial vehicles. This is something I will focus later on. On the right side, you see the storage stationary applications, the C and I market and the uninterruptible power supply. This is still our focus market when you need fast power batteries. What we are evaluating at the moment, what Joachim already mentioned is, we are also looking into battery and the best solutions into solutions where we can participate then in the grid applications.

Next slide, you see quickly what was in ’twenty ’4 and what will be in ’twenty five. I would like to do it quite short here. In a very challenging market, we were still able to achieve some major milestones and all successes. We are a reliable supplier. This is our image.

This is our how LineSmart is known in the market. And what we could see here is as a reward in the end of the last year that we received the supplier award from Kazan. Many of our competitors were not able to continue the business, some were leaving the market, others are having difficulties, we are still there and our customers are well aware of this. Immersion Cooled Battery, we successfully finished the integration project and the testing project with a German premium OEM. Here we are quite happy about the feedback we received.

We are best in class technology. Last but not least in ’twenty four, besides difficult situations in the storage market, we were preparing ourselves to come back in that market and to participate very strong in the future here. So how will be 2025? The market is finally stabilizing and we are seeing some signs of growth. The market is still challenging, but we are much more optimistic than in 2024 how the market will develop now.

We see the comeback of some mobility customers, which were quite weak in 2024. This is expected to happen in Q3 twenty twenty five. And we are now executing the actions which we have prepared to counterfight the market difficulties. Number one is, we are evaluating how we can enter the grid market, and we have reached a good status at the moment. So we are optimistic to start soon here.

We have first orders for the next generation, the energy upgrade battery pack, which we are having, the Power Mobility 53, we are rolling it out now. First deliveries will start in April and SOP will be then in November with our customers. And very important as well is we are pivoting the immersion technology also to new applications. And this is what I will show on the next slide. We are still very confident that immersion crude batteries are a big benefit and has a big value for performance cars.

Here, especially plug in hybrids and cars where the battery content inside is relatively small, but you need a lot of power. This is where we are really bringing value to the market. We are at the moment at a situation that we can show up to 20C of electric power out of our batteries. We don’t see any de rating while driving, racetrack driving or on the street. And and this is important, we also can show a high recuperation and a very fast charging here.

And some of you might heard that there are some press releases out there that 400 kilometres range within five minutes is possible. With our technology, this is also possible, in our opinion, based on the results we are having now with the OEM. We think we can underachieve this, so we will be faster than the five minutes for the 400 kilometres. While the OEM projects unfortunately are at the moment delayed, we are using the time we are having to further push the technology boundaries. We are now evaluating new power cells, which are even giving more power out of the battery which we are using.

And in addition, we are also not only focusing on one OEM, at the moment we are talking to three OEMs with our immersion cooled battery. The market we see at the moment is in 2,030, 2 point 5 billion per year, and we want to have a big share of this available market. What I mean with pivoting emergent cooling is we are now using this technology and also using it for ultrafast charging. We were contacted from a German premium OEM at the Electronica Fair, and they were very interested in immersion cooled batteries because of charging. And their motivation is they would like to put 400 kilometers of range into a truck in the same time like you usually need for refueling the truck, and this is below fifteen minutes.

And this concept evaluation is ongoing. We are soon starting also to produce then a concept for that. And also, along with that goes that we are also evaluating cells now which are optimised for fast charging. This market at the moment is just for Europe, more than 1,000,000,000 in 02/1930. The truck market is having at least the 40 tonnes, a big impact on the CO2 footprint, and therefore we are confident that an electrification in this market will start very soon and will be relatively quick.

On the next page, I would like now to hand over to Joachim again to explain a bit more the technical details, what was the outcome from the German OEM project.

Joachim Damaschi, CEO, LINE Mobility: Yes. I would like to show you the results of the test price that we had with the German OEM only to show you the performance of our battery. You can see four different graphs. Let’s start with the left side upper one. This is showing a repeated acceleration in the vehicle from 80 to 200 kilometers per hour.

The blue line shows the driving speed. The red line shows the temperature in the battery and the temperature increase and the black line shows the availability of power. That means this is starting with roughly 200 kilowatts, But after 10 times accelerating and braking again, the battery was due to thermal derating reduced to a power output of roughly 50 kilowatts. So that means two thirds have been necessary to reduce because the power was not there, battery was getting too warm. When you see that what you see in the lower graph, this is our battery, not the OEM solution that they had, but shows the upper graph.

There you can see we started with a total power output of about three forty kilowatts. We can up to now we can do also five twenty, but for this test we used only three forty. Same situation, same driving situation. And you see that the temperature increase in our battery was less than seven degrees Fahrenheit to do overall driving. So there was no thermal de rating.

The power was available to the end of driving. On the right side, we see what happens if you drive on battery power only with 140 ks per hour with the solution that the OEM had already. They started with the power output of about 200 kilowatts. The car was at the blue line shows again the speed running on 140 kilometers per hour, but the battery that they have currently was not able to drive the car. They had to reduce the power.

At the end, they had even to stop driving, what you can see at the blue line, because the battery was getting too warm. So the temperature increase was roughly 20 degrees and they had to stop because they were it was getting much too warm. When you see the lower battery graph, you see the black line, no thermal de rating. We were able to have the full power output over all the time. And the temperature increase of our battery was less than three degree.

So this shows the performance of our battery. And the original comment of the OEM was this technology now is the solution for our battery problem. This is only to show the performance and that we are on the right track. The OEM is very satisfied with that what we have

Christian Sante, Analyst: been

Joachim Damaschi, CEO, LINE Mobility: showing and we are sure that we will continue with them after they have been finalized all the test drives that they are currently carrying out. Thank you very much.

Michael Reich, Global Head of Sales, LINE Mobility: Okay. So now coming to megawatt charging for heavy duty vehicles. This is now going in the direction charging with immersion pooled battery technology. On the left side, you see the status quo, which is available in the market now. So if you can do megawatt charging, one megawatt, you need about thirty minutes to charge the truck.

This was a German government funded project. It’s called Nefton project. And here, you they used a standard battery to do this. It was a special environment to realize this. However, if you know that a truck takes about 10 to 20 kilowatt hours per hundred kilometers, then you know that there needs to be a very fast charging to achieve the range you need.

So out of this, there is now the idea at a German premium OEM to to even improve this charging time. And the the target now is really to do it below fifteen minutes. And this is the reason for this is every four hours roughly, a driver needs to take a break in Germany and or they change the drivers, so another driver can continue to drive. So you always need from break to break about 400 kilometers of range. And at the moment, you need about eleven, twelve minutes to refuel your truck with diesel, and this is what shall be possible also with a battery technology.

So at the moment, trucks and bus OEMs are looking into this direction with 3,000 amps at a high voltage, eight fifty volt voltage. And within these boundaries, they try to achieve it. And we have shown that with our technology, it is possible. And so we are targeting to build up such a track as soon as possible. Now I would like to talk a little bit about the running business here.

What is the status quo at the moment. The already mentioned NMC Plus rollout, which we are now having, so the energy upgrade, is really fundamentally now opening up the addressable market for us. We are very happy that we are having an automotive grade production in Hilburghausen, which is really very important if you’re talking to the customers that you can say this is something we are having. And now based on that, we are developing this BMW i3 pack into the next generation, which is called NMC Plus. And with this building block approach, we now can increase the portfolio range and the variance, and we are able to participate more markets and more vehicles.

We have shown and we are seen as best in class energy density with our solution now. So what hours per kilogram is where we are really benchmarked now with this technology. The first NMC plus batteries will be delivered in April, then the test drives will start and the ramp up is planned for November. On the right side, to also to show you some figures, the commercial vehicle markets in The US, Canada, and Europe is seen as, yeah, roughly five gigawatt hours in 2024. But it’s growing very fast, especially in Europe.

The motivation is to make the cities green, so the city buses will all be converted to electric very fast. Also last mile delivery is becoming green, and also buses for longer ranges and also trucks for medium ranges are more and more considered to be electric. And at the moment, with our housing, which we are having today, we only can address the yellow form. But with this technology which we are having now, we can participate also the dark green, so the narrow pack applications and also the customized applications. And here, I’m very happy that we are now having the partnership with Hoffa Powertrain, which gives us a multiplier for acquiring new business and also for developing new projects.

It is very helpful that we are getting good feedbacks from our customers who say that we are a strategic customer and they believe in us and they want to grow together with us. And finally, it’s also good to have serious discussions with new customers, which are really also trusting in our technology and who want to use our technology. In this case, I’m showing here the example for the last mile delivery, and the customer wants to extend the vehicle lifetime, and therefore they are looking into our solutions here. So this is a rough overview of our running business and how we are developing it. To sum it up, what is the outlook 2025?

I still see it a little bit as a year of transition. We have to roll out and to ramp up our mobility portfolio. We have to roll out the product variants, which is giving us the loading in our production. We continue to successfully integrate our batteries into new applications with new customers, so we are broadening our customer base again. It was difficult last year.

Now we are very much on track again. We are preparing ourselves for the grid business, and we want to win the first best project, like a battery energy storage solution project in the second half of twenty twenty five in the DACH region. And for 2026, I expect a year of growth, and I want to be back at the revenue of 2023 at least. And this is my last sentence. I would like to hand over now to Jens again for the q and a session.

Jens Hecht, Moderator, LINE Mobility: Thank you, Michael. We will now begin with the q and a session. If you have a question for the line management team, please use the q and a chat function, and I will read out the questions. Or if you want to ask your question via microphone, please raise your hand virtually. Once your name has been announced, you can unmute yourself and ask the question.

So one moment, please, for the first questions to come in. We have a question from Christian Sante. One moment, please. So Christian, you can now unmute yourself and ask your question.

Christian Sante, Analyst: Okay. First one would be on the EBITDA impact from the Truffle suit sale. Can you quantify that, how much that impacted your Q4 EBITDA figure?

Jorg Peter Han, CFO, LINE Mobility: Actually, we cannot. We are not allowed to disclose. But as you can see, it has a positive great positive effect despite our investment activities and our costs during the year. So it helped us actually as what we expected.

Christian Sante, Analyst: Okay. And second question on costs. Can you quantify how much you spend in one off expenses? So for the, let’s say, sale, but also for project development throughout the year?

Jorg Peter Han, CFO, LINE Mobility: It was not in that high range as last year. But nevertheless, we needed to invest in the NMC plus technology quite heavily, as you as you heard, and we are investing this year as well. Since, as as Michael said, we have to deliver to our customers the NMC samples in April already. So they went up. But quantifying, I have to as these are preliminary numbers, I’d like to postpone to the final results.

Christian Sante, Analyst: Okay. And then there was a mention on renegotiated raw material contracts, which obviously impacted your gross margin quite a lot. Would you expect that impact to be sustainable? So would you expect this the gross margin level that you had in for full year ’twenty four to be the estimate for the coming years?

Jorg Peter Han, CFO, LINE Mobility: Actually, for this year, we see this as our as a base. So with this, we calculate this year throughout the

Jens Hecht, Moderator, LINE Mobility: year. Okay.

Christian Sante, Analyst: Perfect. And then one final question maybe. You mentioned that there were some delays on the immersion pack topic. What is the rough time line? So by when would you expect like a go or no go decision from the one OEM that you’re currently testing with?

Michael Reich, Global Head of Sales, LINE Mobility: Yes. So this is my question. This is Michael. The delay is at the moment more than one year. So we expect a new timeline within this half of the year, and then I have more clarity.

It will be more than a year, unfortunately.

Christian Sante, Analyst: Okay. So it probably would be fair to assume that it’s a high likelihood that 2026 will not be impacted positively by any contributions. But this depends very

Joachim Damaschi, CEO, LINE Mobility: much because we are now also building up other samples. But as you know, serial development from start of development until serial production normally it takes at least two, two point five years before start of production of the vehicle. So serial numbers then will come in not before 2027. That’s right.

Christian Sante, Analyst: Okay, perfect. Thanks. Then I’ll jump back to the queue.

Jens Hecht, Moderator, LINE Mobility: Thanks for your question. We had another question, but the hand is not raised anymore.

Joachim Damaschi, CEO, LINE Mobility: Maybe it was covered already.

Jens Hecht, Moderator, LINE Mobility: At least that’s probably exactly right. So if you have any more questions, please type them into the q and a or raise your hand. So we do have a question here from Thorsten Bolton. The supply you mentioned in your Stuttgart would replace the BMS in the light battery or only for an own project with the light battery as a base, Question mark.

Joachim Damaschi, CEO, LINE Mobility: Would you mind to repeat the question? Because

Jens Hecht, Moderator, LINE Mobility: I The supplier you mentioned near Stuttgart Yeah. Will this supplier replace the BMS in the light battery or only for an own project with the light battery as a base?

Joachim Damaschi, CEO, LINE Mobility: No. The the the the the thing is that our BMS development that we have currently going on, I think we have two different BMSs. The one is the one for the NMC Plus that we are currently doing with Munich Electrification. And for the light battery, we have to have a different BMS, as you can imagine, because this has to be much faster. We need a BMS.

What we have been building up for the prototypes on our own based on the developments that have been made in the past. But as some of the regulations have changed, especially according to the safety levels, software levels, whatever else this would be for us a next development for the BMS and we are just in the phase that we have to decide if we take a given one that is according to all the new demands from the OEMs, but also from the authorities or if we will upgrade our own one. And therefore, the supplier would then be also, if we decide to go with them, the one who would then deliver the BMS for the immersion cooled battery. For the NMC plus the BMS is coming from Munich electrification, where we are now in the final development phase. We are now doing the prototype software for those batteries that we want to supply end of the month to our customer.

I hope this gives an overview on that.

Jens Hecht, Moderator, LINE Mobility: Thank you. There’s another question in the chat. Are there any claims from the state of Turinia because subsidies were paid that may no longer be fulfilled with the job cuts?

Joachim Damaschi, CEO, LINE Mobility: We have no job cuts for the time being. We have only temporary short time work, and it depends very much on that what we will achieve in the market with the current battery. There are no job cuts for the time being. And therefore, we do also do not have to pay back any subsidies.

Jens Hecht, Moderator, LINE Mobility: Okay. Thank you. There are no more questions in the chat. If you want to ask another question, you have the last chance to do it now or raise your hand.

Michael Reich, Global Head of Sales, LINE Mobility: Jens, there’s there’s one additional comment I wanted to give. I don’t want that there is a misunderstanding. So the delay I mentioned with the premium OEM is just by a year for for SOP. So the discussions are still ongoing, and the RFQ is expected to have a date soon and within this year. So this is not delayed by one year.

I don’t know if there was a misunderstanding. I just wanted to add this.

Jens Hecht, Moderator, LINE Mobility: Thanks for the clarification. Great. Okay, there seem to be no more further questions. Then we are at the end of the call. Thank you, everyone, for your attendance.

And if you have any further questions, please reach out to LINE Investor Relations team at any time. See you next time. Hear you next time. Bye bye.

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