So that is a correct figure that you mentioned. That is our target, how we are modeling the business. Currently, before the cost action started the level to reach a 10% operating margin in terms of sales was €11.5 billion. So now we are taking that to €10 billion.
David Mulholland: Do you have a quick follow-up, Sami?
Sami Sarkamies: Maybe technical good regarding technologies. There was a slight drop in IPR run rate during Q4. Can you elaborate on that? And then just update on where we will be after the OPPO renewal? I think previously, you were talking about €1.1 billion starting this year. But now, I guess it must be a bit more than that?
Marco Wiren: Yes. Thank you, Sami. What it comes to run rate in quarter four, we had one license that expired at the end of quarter three, and that’s why we see a run rate change as well. But if you look 2024, so we are guiding an increase in our run rate, and we just cannot quantify these yet because we have still some deals that are outstanding and because the content of the deals are confidential, we are not allowed to give you that much information about that. But I hope that perhaps in quarter one, we will give you more flavor on this as well. And when it comes to 2024 operating profit, we said at least €1.4 billion for the full year, and this is including the catch-up as well.
David Mulholland: Thanks, Sami. We’ll take our next question from Richard Kramer from Arete. Please go ahead, Richard.
Richard Kramer: Thanks very much, guys. Pekka, my question is, I’m just conscious that this year, you’ve laid out targets and talked about order strength at the beginning of the year and then needed to reduce your targets for margins and cash conversion. Now you’re looking at €1 billion of cash outflows for restructuring. And so my question is, how are you going to mitigate the risk of losing sales or momentum or other opportunities in the midst of this reset? And are you confident that you can undertake the restructuring without opportunities that you’ve laid out, the green shoot…
Pekka Lundmark: Yes, Dave. I mean she biggest restructuring when it comes to customer interface, that actually went live already on the first of January. So we did it very quickly. We made the decision late in the year, and we planned and executed everything very, very quickly. So now Q1 will be the quarter of stabilization in the customer interface. And I have to say that when we have explained the logic to the customers, basically saying that we want for each business to place highly empowered teams in front of the customer so as to short-term simplify the organizational structure and shorten the distance between the customer and the real decision makers for each business that has been very well received. And when you then complement that with the account executive concept where one of the sales leads of the businesses take on as an additional responsibility to run the overall relationship management with the customer and then to coordinate cross BG matters.
So that simplification has been well received. Of course, this type of things always cause stability issues in the short term, but I believe that it will quickly be behind us and people will start to see the benefits of this new model. Then when it comes to the other cost savings in addition to the simplification of the customer interface, there, we have to look at each business separately. And of course, as we said, Mobile Networks accounts for roughly 60% of the action we are taking. And that’s, of course, a reflection of the overall industry outlook and the challenges that, that business is facing. But this is already also well underway in terms of implementation. And they are the most important goal is really, as we said in December also is to protect our R&D output.
Richard Kramer: Okay. Thank you. Okay. Please.
Pekka Lundmark: Yes. If I just then move on to the other businesses. So because this is very much MN-centric, then NI has a different situation because there we have as I said, great order intake in Q4, and we have a 2% to 8% growth outlook for this year. So there, obviously, the need to restructure the cost base is not the same as it is in the MN business. And then in CNS, the action is mostly centered around portfolio rebalancing. You will have seen that we — we made some divestments last year, and we are getting close to the type of portfolio that we look at — are looking for the rebalancing is not 100% done yet. We are still working on certain things. That’s really the name of the game in CNS. And then tech we already discussed because now with the Oppo deal and hopefully the rest coming soon, we will see significant stability in that business. So all four businesses are in a fundamentally different place when it comes to the restructuring need.
Richard Kramer: Okay. Thanks. And then one quick one for Marco. Again, just conscious that your predecessor had relied in the past on sale of receivables. You did mention that in the statements. Could you give us a sort of rough quantification of how much sales and receivables helped this very good cash flow performance in Q4? Thanks.
Marco Wiren: Yeah. Thank you. We actually have changed quite dramatically when it comes to how we see sale of receivables. The main thing what we do when we use sale receivables is to mitigate risks. So it could be country risk or customer risk and also the cost — hedging costs, for example, in certain currencies. So the principle is quite different. And now in quarter four, we mentioned that, but it was a meaningful increase. So in some quarters, we see changes in sale of visibles, and it could be just like I said, that — it could be a specific country or customer where we see that it’s good that we hedge ourselves by selling the receivable or in some cases, actually, we see also that the customers are themselves paying for sale of receivables. And then, of course, it’s an operator to do that.
David Mulholland: Thanks, Richard. We’ll take our next question from Daniel Djurberg from Handelsbanken. Daniel, please go ahead.
