Securitas AB (publ) (SECUB) Earnings Call Transcript

So good afternoon, everyone, and welcome to our Q3 update. The Securitas team has shown strong resilience in the handling of COVID-19 situation in working closely with our partners and our clients during the last 10 months. And before we look at the performance, I would just like to express my deep respect and gratitude to every great colleague in the Securitas team. So let us now shift to the performance in Q3. And I should mention that I am in Stockholm; and Bart, our CFO, is dialing in from Brussels today. So coming from a challenging quarter in Q2, we have seen clear improvement during Q3. Organic sales growth was flat versus last year, and a significant sequential improvement versus the negative 4% that we had in Q2. And we had a positive development during the quarter, which I think is also important to highlight where the organic sales growth, if you look in the quarter, we had around minus 1% in July, and then 1% positive in August and about 1.5% positive in the month of September. So clearly ended the quarter on a more positive note. The operating income and margin were impacted by COVID-19 across all segments, and the largest negative impact was in Europe, mostly related to our larger aviation presence. The operating margin of 5% was also a clear improvement versus Q2, but lower than the 5.6% that we had last year. The margin was supported by various government grants, but hampered by increased provisions, and we come back and comment on this in more detail later on. But importantly, we are on par in terms of price wage balance year-to-date. The operating cash flow was solid in the quarter, also when excluding some of the positive impacts from timing effects related to payroll and VAT in Europe and North America. But in light of the improved financial performance, the Board of Directors have reinstated the original dividend proposal related to 2019. In conjunction with the Q2 report, we announced the cost savings program, and we are progressing well with the related activities and we'll start to see gradual positive impact during the fourth quarter. Looking ahead, we do face continued uncertainty, though, related to COVID-19, and we continue to take actions to ensure that we come out stronger from this situation. This is a slide that you have seen me share a few times before now, but it's important given the context that we are operating in. And when you look at the response related to COVID-19 from Securitas, we initiated our first crisis response team at the end of January to handle the situation. And we have been working relentlessly since then in managing the situation with a steady focus on 4 main priorities that we have outlined in this slide. Secured services or essential services. And while we have seen some significant reductions in some areas such as aviation, we have been able to assist clients and meeting the demand for temporary services in a number of different areas. So on the totality, we're generating significantly higher extra sales in Q3 versus a normal situation in previous years. We currently have around 3,000 people on temporary unemployment schemes and this tend to be compared with around 10,000 people at the end of March, beginning of April time frame. But in light of the current situation and the continued uncertainty, we have taken a conservative approach and increased provisions, primarily related to potential bad debt. So now let us shift to the focus, to the progress, I should say, of solutions, electronic security and the performance in the business segments. Our electronic security and solutions businesses have been affected by the corona pandemic. Installations have been severely impacted, but the situation improved in the third quarter versus Q2. Solutions conversions and sales have also been negatively impacted due to reduced commercial activity and the ability to have physical meetings, et cetera. But rebuilding solutions momentum is now a key priority across the entire business in the coming months and quarters. But we did receive some important acquisition activities in Q3 and closed the acquisition, where we are acquiring 5 Stanley entities in a number of key markets for Securitas around the world. And these businesses will greatly enhance our electronic security presence and capability in a number of these markets. So we are very excited to welcome the teams to Securitas and further strengthening our electronic security offering to our clients. Shifting then to the performance in North America. We had a strong improvement in North America from negative 2% organic sales growth in Q2 to 2% positive in Q3. And while we had a negative impact from the corona pandemic on electronic security-related installation business and critical infrastructure services, but the situation did improve during the quarter. And we had strong performance in Guarding with temporary reductions in portfolio sales were compensated by a significant increase in extra sales, and these extra sales accounted for 19% of total sales in the quarter. The operating margin in the quarter was 6.4%, and the margin in Guarding was supported by the corona-related change in the business mix and significantly higher extra sales that I mentioned earlier. Margin was negatively impacted by increased provisions to reflect increased risk in the business environment, primarily related to collection of accounts receivables. And the cost savings actions that we initiated in March helped limit the negative leverage from reduced sales. So on the totality, our North America team have delivered a robust performance in the quarter. And shifting then to Europe. In Europe, we had negative 1% organic sales growth compared to minus 6% in Q2. And while there was a negative impact from COVID-19, mostly related to our aviation business, several countries had positive growth in the quarter, and extra sales as a percent of total sales were 2% higher versus the same period last year and -- so in Q3 this year at 19%. The operating profit margin in Europe in Q2 was 5.1%, and the decline was primarily related to the negative impact from COVID-19 and aviation. Negative impact has, to some extent, been offset by corona-related government grants in several countries. But like in North America, we have increased provisions related to potential bad debt due to high risk levels in the business environment. And the operating margin was supported by several of the Nordic countries and our electronic security business in Turkey. Shifting then to Ibero-America. Organic sales growth in Ibero-America was flat in the quarter and -- but we returned to positive growth in Spain, and the organic sales growth was negatively impacted due to effects from the corona pandemic in Latin America. Latin America is 1 region where we're also seeing quite a severe situation related to COVID-19. Those declines were primarily related to airport security in Latin America and a weak performance in Peru. But we had high client retention and a strong share of sales from security solutions and electronic security in the quarter. The operating margin in Ibero-America was 4.5%, and the decline versus Q3 last year was primarily related to the negative impact from the corona pandemic. Government grants and support in several countries helped offset costs for idle time. So that concludes the divisional overview. So now handing over to you, Bart, for some more details related to our financials.

Okay. Many thanks to Magnus, and welcome to all of you. As in Q2, quite some underlying pieces that moved in the quarter. This was for sure, not a business-as-usual quarter either. It was a quarter during which the impact from the corona was important, though we should also mention that the impact reduced compared to Q2 and further reduced during the quarter as well. As we can witness from the organic sales growth, as Magnus commented about, negative in July, while positive in both August and September. And also in September, we had actually positive organic sales growth in all of the business segments. And also witnessed from the number of employees on temporary unemployment that reduced from 7,000 in mid-July to 3,000 in mid-October. So all our people and our business confirmed great resilience again, and I think we can be very happy about that. And we continued to focus on the 4 key matters: our people, our clients and the financial sustainability of our business to focus on cost control and focus on cash flow. But we also continue to work with the transformation agenda and actually, we reinitiated also on the acquisition side, as Magnus also commented about. The operating income has been affected, of course, from the corona situation, mostly then from the airport security business and the idle time of some of our employees. The operating income was supported by proactive cost-saving actions as initiated within the different businesses. And further, the operating income has been positively affected by around SEK 200 million in corona-related government grants and support in the quarter. This SEK 200 million is then, to some extent, partially offsetting the increased cost levels mostly from idle time. The amount, this SEK 200 million was distributed over the totality of the business with a bit of an underweight on North America and a bit of an overweight on Ibero-America in comparison to the respective size of these businesses. In Q2, this amount in corona-related government grants and support was SEK 350 million back then. So it reduced from SEK 350 million to SEK 200 million now in the quarter. And this reduction goes largely hand-in-hand with reduced number of people on temporary unemployment schemes. In mid-April, we had over 10,000 on temporary unemployment, and this reduced to 7,000 mid-July and further reduced to 3,000 mid-October. The operating income was then negatively affected by increasing provisioning levels of SEK 100 million in the quarter, and this to reflect the increased risk environment. This amount of SEK 150 million relates entirely then to potential collection risks of receivables. And these provisions were also distributed over totality of the business. When we then look at items affecting comparability here, we accounted for minus SEK 112 million in Q2, and this item affecting comparability relate to the ongoing transformation programs that is SEK 53 million and then SEK 59 million related to cost-saving programs as announced at the Q2 reporting. And all details on this can be found in Note 6 to the report, actually. For the transformation programs, we continued more or less with the same speed as in H1, and that is also the average speed we had for the entire 2019. So we can expect some higher amount for the last quarter of 2020. We referred earlier to a total of SEK 650 million of items affecting comparability that shall be accounted for related to the transformation programs and that during the period of 2019 to 2021. For 2020, we said earlier an amount of around SEK 250 million, everything depending a bit on the speed of the different implementations. We can confirm that our ambition with the programs has not changed. And broadly speaking, the 2 programs are on track. So the SEK 250 million for 2020 shall continue to be the right guidance for the full year. For the COVID-19 cost saving plan, we accounted now for SEK 59 million, to which then will further amounts be added as of Q4 as well. As earlier mentioned, that total estimate is a range between SEK 350 million to SEK 500 million, but Magnus will also come back to that later on. On financial income and expenses then, if we turn to that line, we see a somewhat lower amount now in this quarter compared to earlier quarters. And the financial income and expenses were positively impacted by the favorable net debt development. We come back to that in a second, and the exchange rates for the interest income and expenses. But also it was impacted by a nonrecurring foreign currency gain that was realized in the third quarter. Moving then to the tax line, where the estimated full year 2020 tax rate remains on 27.0 in line with what you have seen before. We move into the next page. And here, we consider the effects from different currencies. And here, we can also see that there has been some negative effect, actually, a headwind from the foreign exchange during the quarter of around 7% to 8%, as you can see here on the level of sales and operating income. The negative effect from foreign exchange on sales in the quarter was SEK 2.1 billion. And on operating income in the quarter, it was negative on around SEK 125 million. The euro dropped a bit during the quarter compared to the same quarter last year. But then we were especially affected from the weaker U.S. dollar compared to a year ago, a continuation of what we started to see happening during Q2 already. Then we move to the cash flow. And here in Q3, as in Q1 and in Q2 as well, I think it's fair to say we had a strong cash flow coming in during the third quarter. Capital expenditure is trending to the lower side of 3% of group annual sales, and that includes leases for IFRS 16. The operating cash flow was positively impacted by collections. We had good collections, but we shall also add that the operating cash flow was held by some -- by the lower organic sales growth, although, as I said, improving during the quarter. Then we also have a positive effect on the operating cash flow of around SEK 1.3 billion from timing relief of payroll tax and value-add tax payments in Europe and U.S. and that is SEK 400 million then more than what we had at the end of Q2. We will have to repay some of the timing measures while some new effects will apply. All in all, this SEK 1.3 billion is also the amount we more or less expect then to remain at year-end. So I believe we can conclude that even if we take away the SEK 1.3 billion of relief measures from the cash flow that we had a very good cash flow coming in during the quarter and during the first 9 months. We then move to the net debt. And the net debt ended at SEK 13.5 billion now end of September, considerably down from the SEK 15.9 billion at the end of Q2 and considerably down then from the SEK 17.5 billion at the start of 2020. Now after 9 months in 2020, we had a positive free cash flow of SEK 4.5 billion, as you could also see on the previous page, and then an amount of a bit more than SEK 500 million has been paid for acquisitions as we can see here, and we paid a bit over SEK 200 million in items affecting comparability. All in all, this combined effects reduced the net debt with around SEK 3.7 billion. That is from around SEK 17.5 billion at the start of the year to now SEK 13.5 billion, with also a little bit of extra help from the translation in between. Then as commented, we would normally have the dividend paid in May, but the proposal was withdrawn back then by the Board. And as communicated, the Board has now resolved on a new dividend proposal to the general meeting in line with the earlier proposal. Moving to the graph, the net debt in relation to EBITDA is on 1.9 now compared to 2.1 back at the end of June and compared 2.2 at the end of 2019. Remember that all of this is after IFRS 16, and I believe this 1.9 can be considered as a strong number. Maybe to remember also that the increase in net debt between 2018 and 2019 was actually the full result of implementing IFRS 16, which increased the net debt by itself with around SEK 3 billion. Then we go to our financing and our maturity chart. We had very good liquidity at the quarter end with SEK 7.2 billion in liquid funds, up from SEK 4.5 billion at the end of Q2. As earlier said, we renewed RCF, a facility now with 10 core banks for a total amount of SEK 10 billion, and the facility is for 5 years with the option to extend it with another 2 years, and RCF is fully undrawn. We continue to have ample headroom in our rating. And as said before as well, we have no financial covenants in any of our facilities. And as you know, we do not use any off-balance sheet factoring or supply chain financing. Based on our strong cash flow or strong balance sheet, we had net debt to EBITDA at 1.9% and with our solid financing in place, I believe we are very well positioned for the future and in a strong position to accelerate the transformation. And with that, I can hand back to Magnus.

Thank you, Bart. So before we open up for the Q&A, I would like to provide just a few updates related to COVID-19, and also how we are progressing with our strategic transformation programs. So when I look at the last 9 to 10 months, it has been an unprecedented situation in the world. But thanks to a strong global presence, like I said earlier, we started our first crisis response team at the end of January, and we have maintained a steady focus on 4 key priorities ever since. And the Securitas team has done a tremendous job together with our clients in managing this situation. And now as we enter a period of increasing numbers, unfortunately, again, of cases and also increased uncertainty. We are maintaining a steady focus on these 4 priority areas, while at the same time, driving the modernization and digitalization of our business and our strategic transformation programs. Because we are in a period of accelerated transformation, we have an ambition to double security solutions and electronic security by 2023. And the recent acquisition in 5 markets is obviously 1 important step, together with the acquisitions we announced at the beginning of this year when looking at the development and growth of our electronic security. Focus now is on achieving successful integration, bringing our enhanced offering to our clients. But in terms of business transformation, which is the lower part of this slide, we are progressing according to plan in North America, where we recently passed a few key milestones migrating to modern systems and applications to handle key areas such as payroll and billing in our U.S. Guarding operations. And while a lot of work remains in North America, we are building a modern platform that will enhance productivity in terms of how we operate the business, the service provisioning to our clients, but also how we are engaging with our employees and also enhancing the value being part of Securitas. And as previously shared, we are doing a detailed assessment of the right path to drive business transformation also in Europe, and we will come back in early February with more details related to that. But last, I would also just like to provide a status update related to the cost savings program that we initiated due to the corona situation. So 3 months ago, we announced a cost savings program with the ambition to manage the COVID-19 impact on our business. And with this program, we are looking at all parts of the business to identify areas of exposure. Key opportunities to improve and sharpen the business and importantly, to reduce costs. And we estimate the restructuring costs to be in the range of SEK 350 million to SEK 500 million. But the final restructuring amount will depend on changes in government grants and the development in the airport security business, where we still have quite a lot of work to do to make sure that we are getting back to a sustainably profitable status. But we expect to finalize this program by the end of the second quarter 2021. So to sum up this quarter, we've had significant positive improvements during Q3 versus Q2. Organic sales growth, as mentioned, was flat compared to last year, but positive towards the end of the quarter. Operating income, real change, negative 8%. And we still see a challenging situation with significant amount of uncertainty regarding the development now externally. But we have shown resilience. We have the strongest offering in the market to our clients. We have a strong balance sheet and a cash position. And in terms of the COVID situation, we're actively managing the situation with clear priorities and actions and always ensuring readiness to take further actions as required. So that concludes the quarterly overview, and now glad to open up for the Q&A session.

[Operator Instructions] So we have the first question from Mr. Erik Paulsson from Nordea Markets.

It's Erik at Nordea. I have 2 questions. I'll start with the first 1 regarding those provisions of SEK 150 million. Are those related to a specific customer segment? And can we expect continued provisions here for Q4 as well?

Yes. So thanks, Erik, for the question. No, we are taking a conservative approach. We have many clients, some clients very large, but we also -- in the 150,000 clients that we have, we also have a number of smaller clients. So this is essentially taking a conservative stance in light of the uncertainty that we see. In terms of specific segments, there we've had a few significantly smaller impacts in the aviation segments in terms of real bad debt. But I would not argue that we are seeing very specific segments at this point in time. So it's more of a general precaution that we're taking across the business.

Okay. And then my second and final one is regarding the price and wage balance going forward. What do you see there? Because you have quite a good balance here in the quarter and has had that during the full of 2020. What do you see for Q4 and going into 2021?

Yes. So like you highlight, we are on balance in the first 9 months, and this is, as always, fundamentally important to our business. There is some uncertainty, of course, in terms of a number of moving parts. But as always, we initiate the work with price increases, typically in the July-August time frame for the following year. And it is important -- as important as ever obviously, in 2021 that we are successful in balancing this. High focus from all the countries and the different divisions on achieving this. And there are also a few new components as well that we also need to be successful in communicating to our clients. And some of those, we have very high emphasis on the health and safety of our employees. That is something that, I would say, all clients also share that importance that we are placing. But that also counts at a certain cost. So that is 1 specific example of an element that we also need to be successful in covering because this is our first priority as a company in this situation that we are in with COVID-19. But we are not obviously guiding because we cannot do that and that wouldn't be prudent, but it is a very important area of focus for us for the next 3 to 6 months.

So we have the next question from Sylvia Barker from JPMorgan.

First question on the organic. You mentioned 1.5% positive in September. Could you maybe talk about the different regions a little bit? And within that, I guess, what the impact was of additional COVID-related sales? And then secondly, just going back to the provisions. So it seems like they're more broadly spread across the different regions, while in Q2, most of your provisions were in North America. If we think about, I guess, Q4, what the movements might be at that point, is it fair to say that -- you have been quite conservative over the last 2 quarters. So let's say, the health care provisions that you took in North America, you haven't necessarily seen any actual impact on, so potentially some of that might come back in the P&L? And similarly, to what extent have you actually seen any bad debts come through on the other part of these? And could we see actually some positives as we go through the next couple of quarters?

Sylvia. I will cover the first question, and maybe, Bart, if you want to give some more light on the provisions. In terms of the organic sales growth, we did see positive evolution in the different divisions as well. So that was obviously driving the group level improvement when you compare to minus 1% growth in July to positive 1.5% in September. Should highlight as well that we are seeing a situation with significantly higher extra sales, 3% higher as a percent of sales on a group level. I believe, around 5% higher in North America compared to the same period last year as a percent of sales, 2% higher in Europe. And so obviously, this is a good evidence of the strength of Securitas that we are able to find new solutions to meet demand from our clients. And we have seen a fairly steady demand for these services also in the third quarter. But then also to shed some light, obviously, we do make some reference to aviation. The -- by far, the biggest impact in terms of negative impact on organic sales growth is from aviation. So I mean if you exclude the impact from the aviation segment, then we would have a few percent higher organic sales growth as a group in Q3. But we are dealing with that and happy to discuss that in more detail later on. Bart, do you want to share then a few details also on the provisions?

Yes. Sylvia, on the provisions in Q2, we had SEK 300 million in total and half of that related to the employee matters and the other half related also to potential bad debt accounts receivables. At that point in time, we believed that we were well consolidated in our balance sheet. And I think now at the end of Q3, we are even better consolidated. There is, of course, an increased risk environment out there related to COVID-19, and that should be reflected in how you calculate your provisions for some of these matters, and that is exactly what we have been doing, reflecting the increased risk environment. On the employee-related matters, there was absolutely no further need to take any further provisions there. And those provisions are there as they were at the end of Q2, largely. And then on the potential risk for -- related to accounts receivable, potential bad debt, there we have taken now another SEK 150 million of provisions. You should know, Sylvia, that in a regulated year, our actual cost of bad debt is around -- a regular year would be around 0.15% of sales -- sorry -- yes, 0.15% of sales. And that is -- sorry, 0.015% of sales, and that is a rather low amount, and it's very stable over all the years. But now of course, with COVID-19 and the whole environment where we do have, of course, some aviation customers, we do have retail customers, there is an increased risk there. Have we seen a lot of that materializing? No. I think in general, we have seen actually that we get well paid from our customers, from our clients. And that is helping on the cash flow then. So that is not what it takes, but it's more reflecting the general risk environment increase that we can see around us. When it comes to Q4, a bit too early to conclude on that. But as I said, we believe that we are now in a well -- very well positioned, even a better position at the end of Q3 compared to Q2 and that we are well consolidated going into Q4, absolutely. I hope that answers your question.

So we have the next question from Mr. James Winckler from Jefferies.

I think most of mine were answered. I just -- so I guess, 2 smaller ones. One, given the exceptional benefits to net finance costs. Is it fair to say that Q4 should be more similar to Q2 in that regard and moving forward? And then also with the timing of the payment of the dividend, I know the extraordinary meeting to be held sort of early mid-December. Are you expecting for -- from a cash perspective, that to be paid out this year? And then potentially announcing an incremental fiscal year '20 dividend since this is just reinstated?

As to the financing cost, I can positively answer there. Yes, that for Q4, you should expect something which is more in line with Q2, correct. As to the dividend, maybe you can take that, Magnus?

Yes. And I think that there was any question, James, if there is then a cash impact in 2020, I think that was the first question, right, which they will be, and then I think you alluded to the future. And I think it's -- the only thing that I would like to comment on here is that the dividend, obviously, that is now being proposed is related to the result of 2019. But we are not -- and I'm not in a position to provide guidance related to the dividend going forward.

So we have the next question from Mr. David Roux from Bank of America.

Sure. Two questions from my side. Firstly, on the margin, there's obviously various moving parts, including the slope of the recovery and then also ongoing cost programs. When do you expect the business to return to pre-COVID margin level, say, in line with what we saw in 2019? And then my second question relates to North America specifically. It seems that the industry is catching quite a tailwind in North America, I think, in part due to a lot of temporary work. Though Securitas does seem to be growing slower than peers, despite the pickup in extra sales work, what would you put that down to?

Yes. Thank you. When you look at the margin situation, we have driven significant improvement in Q3 versus situation in Q2. Cost savings program will start to have a positive benefit to gradually start really in the fourth quarter, but where we expect more impact than in the first half of 2021. When you look from a margin perspective, I mean, I cannot comment on the timing in terms of return to pre-COVID margins. But the area where we have the most work right now and what we have been working on very actively also in the last 6, 7 months is related to aviation, because that is where we have the biggest hit. If we had excluded aviation business at this point in time, we would have been in reasonably good shape when you look at the third quarter. So there is still a significant impact. And the way that we are treating that is -- first of all, is that we're going through short-term actions and those we initiated all at the beginning of March, working through essentially with our clients, all the larger contracts that we have to make sure that we are finding either a new way where they are not financially sustainable that we can make them financially sustainable, and that will then be by renegotiating essentially contracts. If the clients are not willing to do that, I mean, then we have, obviously, contractual commitments that we want to live up to. And then we would work towards termination, so that we are building sustainable business. And that work we are going through and working with very actively about them with a focus on the larger contracts first. And then obviously, what then happens in the aviation segment in terms of timing of recovery, et cetera, difficult to predict. But we are taking a cautious approach. So anything that we can do to make sure that we can operate profitably also at significantly lower levels of revenue, that is obviously a position we want to be in as soon as we possibly can. So that is also a significant part of -- or the reason behind us having a fairly significantly large range when we look at the SEK 350 million to SEK 500 million in the cost reduction program is that where that will ultimately land is also very much depending on those negotiations. When you look at North America, you highlighted the extra sales and, yes, that is absolutely the case, when you look at the Guarding business. But we do see on a top line perspective, a lower activity in electronic security in the third quarter compared to last year, even though it improved quite a lot compared to Q2. We also have lower activity in critical infrastructure services part of our business compared to the same period last year when you look at the top line. So I would say that if there are differences between us and competitors, probably mostly related to the revenue mix that we have in terms of the different protective services. We have 4 highly specialized areas with Guarding electronic security, critical infrastructure services and corporate risk management and performing with very strong teams and operations in North America. So this is really the situation that we have, and obviously looking to also leverage that strength as we go forward. And I can also comment that the commercial activity, when I look at that in terms of winning business, et cetera, has also been healthier in the third quarter compared to Q2. So I hope that answers your 2 questions. Long answer, but they are important matters. So felt better to elaborate a little bit more.

We have the next question from Mr. Thomas Graf.

Most of my questions have been answered. But we've seen now recently the bids here on G4S. And I know you can't comment on it specifically, but I just wanted to -- if you can just elaborate a bit on what that sets on the status for the whole security industry? What do you think the rationale might be behind the interest in the bid and so on? If you could just speak a bit around that, and what potential acquisition might -- how might that affect you? If you could just speak a bit around that would be great.

Thank you, Thomas. When you look at the security services industry, my view is that this is an important service, where there is a strong and also for the long term, we estimate growing demand. So I can understand that people are interested. It's obviously also a sector where in the COVID-19 situation, we have also seen internally and also in the work with our clients, a lot of people in our Securitas team fulfilling very important work, not only for the clients, but also for society at large. When you look at the competitive dynamics, I mean, we have a clear strategy. We are driving our transformation. We have the strongest offering of protective services by a distance, I would say, in the market, ranging from Guarding to electronic security, monitoring, corporate risk management, fire and safety. So we are very much focused on continuing to extend our lead and to enhance the value that we are bringing to our clients. And when you look at our strategy, it's -- as I've commented also when we had the Investor Day or Capital Markets updates, it's more a strategy of driving focus and real depth in the existing footprint that we have in the key markets, and because we see a future with significantly higher technology component, electronic security component, and where we are integrating successfully different protective services based on the client needs. And this is really the strength of Securitas. It would not be prudent on me to speculate what other companies or competitors will be doing in that respect. But that's clearly our strategy, and that's also something that we believe in wholeheartedly. It's also the reason that we are investing significantly in driving transformation in terms of the modernization, the digitalization of securities that we continuously enhance the value that we bring to our clients, but also to make Securitas an even more attractive company to be part of. So I realize that, that is not directly responding to your question, but I felt it's important to at least highlight what we stand for and also what we are doing on our journey, which we believe in. Yes, and now with...

And may...