Schouw & Co A/S Q2 2019 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Jonas Guldborg Hansen - Danske Bank Markets Equity Research - Analyst : Jonas here. A couple of questions. First of all, on BioMar, could you put some words on how the contract negotiations went? So what's the feedback from the market? Are you kind of approaching them more from a value perspective than from a volume perspective? Then on Nonwovens and the strategic review. You say in your statement that this could lead to lower revenue in the future. Could you share with us how big a share of revenue is at risk in here? And also, how long a period we should see this transition happen? And then finally, a question on Borg. You said that -- you showed on the slide that EBITDA is down DKK 20 million in the quarter and DKK 7 million is from the Belgian restructuring. How much is then coming from this more cautious view on the core regulations?

Question: Lars Heindorff - SEB, Research Division - Analyst : Just one question for my thoughts. And that's regarding Nonwovens. I think on previous conference calls and presentations, you have been talking a little bit about the market situation and mentioning that it would have been nice with some sort of consolidation or maybe there's some of your competitors withdraw because of a very -- basically unsatisfactory competitive situation. What is it that has changed now since you believe that you can actually turn around Nonwovens by doing internal measures only and only rely on that? And has something changed in the market that will support that? Or how should we view that?

Question: Lars Heindorff - SEB, Research Division - Analyst : Okay. And when you say that you expect that this will be (inaudible), will it be completed next year? Or will we start to see the impact over the next year?

Question: Lars Heindorff - SEB, Research Division - Analyst : Would it be advisable for us to put in some sort of restructuring costs in relation to such closures? Or -- that's the first -- that's the sort of follow-up. And then the second one is, do you actually believe that Nonwovens will be able to deliver return on invested capital, which is (inaudible) some of your targets?