Aspen Pharmacare Holdings Limited (APN) Earnings Call Transcript & Summary

Good afternoon, everybody, and welcome to the Aspen Investor Day. It's our presentation here. We hope to take you through some of our objectives going forward. But if I would like to start, it's maybe just cover a little bit of this year because it's been a very interesting year for us, I'd say probably best characterized by saying it's been both a rewarding and an incredibly stressful year, rewarding not only on the financial front in that we've got a reshaped base and a very clear strategy that we will articulate with you -- to you over the next hour or so. We've also had growth, as you know, of 9% in our financial year 2020 in spite of COVID. And we've had a -- we've managed to strengthen our balance sheet significantly. It's -- we've not only, in this period, in terms of rewards, received dividends. And those dividends are really in the form of our -- that our new strategic direction has delivered for us. We have made, although a small company in global pharma terms, a very large contribution to humanity. We start with what we achieved in the anesthetic space in very trying circumstances. We then moved on to dexamethasone. And we now will believe in -- shortly, we'll be making a contribution with the COVID vaccines. None of this would have been achieved without the strategic shift that Aspen embarked on some time back. But I think for us in Aspen, the greatest reward has been the commitment, perseverance and really the courage of the people within the organization, putting the lives of our patient base above all else. I mean, this was stressful. Many of the decisions impacted both life and death, and any slippage would -- could once again tilt the balance towards death rather than life. We managed to keep our doors open despite the COVID challenges. And despite the challenges, we still endure today. And there's many personal costs that have had to be made in order to keep these doors open. For many in the operations, we -- as in general society, there have been COVID cases, and some amongst us in Aspen have paid the ultimate price. To all Aspen employees, I'd say thank you. Thank you for your commitment. Thank you for your efforts. And we pay homage, and we pay a special recognition to the ultimate price that people within Aspen have paid in order to ensure global access of medicines. If we look at where we started and our reshaping of Aspen, and this is going to be -- I'm not going to spend much time on what we did going forward. But I think it's important to, at least, let's establish the base of where we were. We set ourselves in 2013 some objectives. So we wanted to establish a niche product portfolio. So we had a commodity generic-focused portfolio, and we -- commodities by their very nature are not branded. And where are we now 7 years later in terms of reaching that ambition? Well, we've got a specialist portfolio of regional and sterile brands. And that specialty portfolio is a portfolio that we'll be covering and has all its own growth and all the own opportunities within the markets that we're looking at. We've got -- we also then wanted -- we learned from our tableting manufacturing. We had strong tableting manufacturing in 2013. We saw that the quality oversights that we had, the way we manufactured, was something that really attracted top clients to ourselves. And this was an area of real strength within Aspen. And we decided to build on that strength. So not only do we have strong strength in tableting, which we've maintained, but we enhanced those tableting capabilities to make hormones, oncology products. But most importantly, we've put -- we've made ourselves into a leading global sterile manufacturing site. We have API capabilities in high-potency products, a very small part of the business. And this has been a very -- we've managed to add capabilities in biochemicals, hormones, steroids, peptides and become a very integral part of our business and a very profitable part of the business -- of the Aspen business. In 2013, we had 16 manufacturing facilities on 11 sites, and we had sales and marketing teams in 19 countries. Today, we have 23 facilities, that's in spite of some of those facilities consolidating, particularly in Australia, and were those on 15 sites. And we have sales and marketing teams over 50 countries. We go back then, and we try to look at some financial performance. Our revenue then was about ZAR 19 billion and our EBITDA, just under ZAR 6 billion. And today, our revenue is rebased, and this is after taking out discontinuing operations. And Gus will take you through those numbers after I've spoken. And there's about 30 -- just over 34 -- just close to ZAR 34 billion in revenue there with EBITDA just under ZAR 10 billion. So some progress on that front as well. We're going to be looking at our growth and our organic growth and some of the inorganic growth drivers within the business. But we want to spend quite a bit of our time talking about these organic growth drivers because once you've reshaped your business, you've built all the facilities, now is the chance to harvest some of the fruits and the rewards of all the hard work. So when we look at our reshaped commercial model, we focused on territories with strong demographic growth. We're well exposed to rising emerging market middle class. Of course, there's a need for increased access to medicines, and there is always a demand for trusted brands. And that need for that quality medicine that's affordable is something that households globally, but particularly in emerging markets, aspire to. We've got established brands that are enhanced by promotion. This is direct sales support in more than 50 countries, and we've got a proven track record here of organic growth. And then we've also done bolt-on acquisitions, which are -- these are the smaller bolt-on acquisitions within organic, which are components of renewal. And here, we've got a track record of performance. And it's not only bolt-ons. We've also made disposals, smallish disposals, and it's part of the renewal of our portfolio. If you look at the manufacturing capabilities and the capacities we've now added, the capacities we've added to manufacture are fundamental to and are going to be a very strong growth driver of our growth going forward. And we've put it, we believe, in the right area, which is the demand for sterile manufacture, particularly quality sterile manufacture, is something which is in demand. There were shortages of capacity due to high cost and regulatory hurdles historically, and there's been an explosive growth in the need for vaccine manufacture. And of course, this has just been exacerbated by the need for COVID vaccines. Also, interestingly, most of the pharma biotech innovation requirements are really around steriles and sterile manufacturing. We also have API capacities, and we've got niche API capacities in very -- which are experiencing strong growth trends. And that's come because of the quality, dependability, particularly out of our European sources. And then we -- there's a change in our focus in now in API biochem, and we'll talk to you about that change in focus as we move from a company that used to make the biochems predominantly for Aspen's own use to mainly a third party. So when we look at the -- after we adjust for the discontinued operations and we look at our contributions, there's really 3 buckets of turnover here. We've got regional brands, which are half the turnover. And we'll go and look into those brands. We've got the sterile brands, which were 28% of the turnover. And the balance of 22% is in manufacture. And most of that manufacture sits in our API business, both the finished dose form and the biochemic business. Interestingly, if we had discontinued these products -- or we divested and discontinued these products in the year 2020 itself, our revenue would have grown over the prior year by 10.6% and in constant exchange rate, 5.6%. The revenue contribution, and we're looking at -- we've now got our segments, new segments. A lot of them you would recognize from previous presentations. We have shown them to you. But in terms of our future, we will be showing them to you in these buckets. Africa Middle East, which is our South African business, sub-Saharan Africa and obviously Middle East. Australasia, Australasia is Australia and New Zealand, in particular. Asia is -- will be the Asia, China and what we termed Other Asia before. The Americas is largely Latin America, but also includes a smaller contribution from Canada and the U.S.A. Europe CIS is -- which was a very large component, you see now has shrunk down, and that shrinkage is largely -- is as a result of the EU thrombosis divestment and the decommercialization. And our Manufacturing business, which is very Euro-, U.S.-centric business. So let's look at the Regional Brands. This is a business which makes up 50%, a very important business within Aspen and a business that hopefully should be -- is well understood by the investing -- investment community. It should be well understood because hopefully, many of you recognize many of those brands there in the picture. But these are a diverse brand and portfolio of quality, affordable medicines. There's medicines for pain, for coughs, for colds and a broad acceptance of these medicines, particularly in our core markets. And when I talk about our core markets, we've got leading positions in South Africa and Australasia. About 60% of our revenue comes from those 2 regions, and there's an established brand equity. And we cover the market really in terms of both OTC, consumer, branded Rx and hospital. And this is all supported by active promotion. We've got strong track records of organic growth, and we have comprehensive and dependable pipelines. We're a leader in the South African private sector. In fact, 4 out of the top 10 selling products in South Africa are for our Aspen products. IQVIA has -- projects that the South African private market will have compound annual growth rates of about 5% over the next 5 years. And really, Aspen is and should be targeting to outperform the market. We're a top performer in Australia. We've spent quite a bit of time reshaping this business, in particular, to exit from the commodity generics to focus on the other sectors. We're a top rank company there. Our sales representatives consistently are rated #1 there through IQVIA, and IQVIA also shows that this market have grown at just under 2% over the last 2 years. And Aspen has delivered growth of nearly -- of more than double the market at 3.6% compound annual growth rate. And this excludes the Zantac product, which was discontinued globally. When we look at the rest of our regional brand business, we're starting to see increasing relevance and positive and strong growth from Latin America and the balance of Africa Middle East. So that's particularly in the Middle East and the rest of sub-Saharan Africa. And this has been driven by active sales representation. And there's potential, of course, to leverage, and we do utilize it, the intellectual property, between the territories, so existing products. So you're sitting with a milk of magnesia in one territory and can we move it to another. One -- probably the drag -- and although on the graph there on -- to the right, the regional brand graph that you see, we've had steady growth. That growth excludes EU oncology business, and this has been a drag on historical performance for the last few years. I'm happy to say that we've made great progress here, and we expect to stabilize this from Q4 2021. And that, in turn, we -- will set a new baseline for that. This is a business which, as I said earlier, is a business that we have been at for the better part of 2 decades. It's a well-understood business, and Aspen is a partner of choice for licensing bolt-on opportunities. I mean, this is just -- we can just tell you, in the last 6 months, we've had 3 new product licensing deals concluded in South Africa just in H1 2021. And this is a part of our process and will continue to be part of our process going forward. Our sterile brands, which is the other part of what our commercial business is, remember, these 2, both the steriles and the Regional Brands together, make up just under 80% of our business. So these are businesses which are large contributors both to turnover and profit. And this is a very interesting segment for us. And when we look at it, it's a very broad range of sterile products. And we've tried to put them into different baskets. You see here general anesthetics. These are anesthetics you'd take in the theater, and you'd be asleep. Local anesthetics, these would be products that would be used, for example, to anesthetize regional areas or local areas, for example, in epidural. We've got an interesting range of topical anesthetic brands, and they come in many forms. There's gel syringes, there's sprays, there's viscous. And so this is an interesting range of products in the topical form, and we see some opportunities for those. And then, of course, our Thrombosis brands in the territories that we've retained, and those Thrombosis brands are well understood. So what is the -- what is our opportunity with the sterile brands? And why do we believe we're well positioned for growth? Well, we're exposed to attractive growing markets, and we've also got the added catalyst of the cost efficiencies that we see coming from in-house manufacture. And these cost efficiencies are important, particularly in an environment where some of this environment or much of the environment is tender-driven. If we look at our sterile brands and if you look at the breakdown, it's going to be pretty important for us to perform across Australasia and Asia. That's a big area. It's over 50% of the business. So it's a different weighting. And where we have our strengths, if you remember the old Thrombosis business, as we had it before, it was predominantly in Europe. And the weighting there was a drag on our growth historically. But the anesthetic market itself, which is over 80% of our revenue, is growing at 6% per annum. You will see that chart showing it going from a $2.4 billion market to just under $2.8 billion over the last few years in dollars. But I think we just got to -- I'd just give you a caution on the absolute numbers because I'd use this -- as I do with all tender business, I use it directionally only because in many instances, cost -- pricing might be different to what is recorded by third parties. There are discounts given into hospitals, et cetera. The Thrombosis revenue, well, our core territories there are China and Russia. And these territories have strong fundamental growth drivers. And we're also looking at registering new indications for Arixtra. And we think this will give it a big boost, particularly in China. We do have the indication in many of the other territories. For example, we had it in Europe. When we look at -- when we target ourselves and with growth, we look at our performance historically. And if you look at Anaesthetics, they've been flat for the last couple of years, and this is despite the supply challenges. And these supply challenges have been significant and certainly give you -- you hesitate before entering tenders because of the risk around supply. The Thrombosis business has performed very well, particularly across China and Russia. And if you look at what we did from 2017 to '19, we use this period as a pre-COVID period, we've seen organic growth there of 6% in constant exchange rate. When we look at the Anaesthetics, I think it is worth looking at the benefit of in-house manufacture. More than 80% of our portfolio is targeted for in-house manufacture by 2024. It will deliver significant cost improvement, and these costs, of course, will give us the opportunity to grow both volume and revenue. But also, it gives us security of supply. And this -- when you have that security, it gives you confidence to produce new revenue opportunities and tenders. Because if you get a tender wrong, there's a buy-out against you. It costs you a lot more than winning that tender would have made for you. One of the other advantages of moving these products is these products are not all registered geographically across every country. But in order to be able to expand that geographic presentation, you need to update the dossiers. In order to move dossiers from one facility to another, we have gone through that process of updating dossiers. And so several products that we have, which all currently have limited geographical expansion, because of this process of moving facilities, will make it easier for us to register these products more broadly across geographies. In order to understand that point a little better and to see where the opportunities are, this is a slide which covers our manufacture. And it's aligned to the different sites of manufacture. So earlier, I had shown you a graph on the -- a slide on the general anesthetics, the local anesthetics and topical. Our general anesthetics are all going to be made in Port Elizabeth. These are products where we -- this product range, in particular, tend to be all high-volume products. It's important you have commercial management, you have tender management, and your cost of goods are important. Your competitiveness is -- becomes key to performance here. Here, we don't have a lot of opportunity to expand geographically because we have these products registered across the key geographies. I think the one opportunity that might be worth noting is that we are going to put a Diprivan or a generic of the Diprivan product, a propofol, into the U.S. market where there is significant demand. And we expect that submission in -- to submit that for registration before the end of next year. That's -- so that's our general. Then we have local or regional anesthetics. And here, we're looking at -- and these come both in glass and plastic. We have bet on plastic manufacture, and we've put the blow-fill seal capability, as we blow the plastic, you fill it and seal it, in our NDB facility. The reason we have done that is that we think that the plastic anesthetics can be used just once, not multidose. And that is going to becoming more and more of an issue for sterility, particularly around anesthesia. And so we have invested in there. And certainly, it would be our ambition to transfer as much or translate as much of our business from glass into plastic. These products are high- to medium-volume products, and Aspen has a very strong position globally here and a leading position in local anesthesia in the markets that we're in. And this is an area that's also growing, as people are trying to get in and out of hospitals as quickly as possible and moving to outpatients, day care clinics, et cetera. The opportunity to register here is high, aside from Naropin, which has good representation globally. And for example, in China, of the entire basket of those local anesthetics, only Naropin has registration there. So that's an opportunity. Remember, China is a big part of this anesthetic portfolio as well. Probably the area which is -- moving to our German facility in Bad Oldesloe. The topical area is the area with the most opportunity for expansion. These are often branded products, niche products, and they require promotional support. Some are in hospitals, some even -- some are well represented in retail. We certainly are looking to expand our presence here. One of the first areas that we have a new registration is in China for EMLA. EMLA is a product that you put on your arm if you want to get a vaccination or an injection that often used before just to numb before. But it's also used in retail for tattoos or Botox or whatever else it might be. And so it's a nice product, and it's a well-branded product. And it's one thing to -- it's certainly an area we'd like to expand across our broader geographies. As you saw in the picture earlier, these products are very differentiated. They come in numerous different forms and different combinations. And so these are areas that we need to -- we'll work on and we'll work on positioning and how we're growing within our existing markets. The final slide on the sterile brands is really about the cost of goods savings. We expect at least ZAR 800 million in cost of good savings from in-house manufacture. What this shows you are the different sites, the Port Elizabeth site, the NDB site and the Bad Oldesloe site and how their commercial transfer comes on. And then the last little arrow at the bottom goes from 15% to 100%. And that's when we expect our savings: 15%, for example, by Q2 2022, and 100% by Q4 of financial '24. These savings are -- you've got to give this graph -- they're predicated on a few assumptions, the most important are the regulatory time lines. Will we get the approvals? Some regulators may take longer. We've done it on our best estimation on what we could achieve with the individual regulators. And this is a slide that's been pretty consistent in terms of end point, but we did have contingencies in the previous slides that we've shared with you. And fortunately, we did because we have experienced to date historic delays with COVID, COVID-related delays. We're still hoping to keep to our -- the time lines that we've shared, but we certainly used up our contingencies. So the impact of COVID may -- it may, in time, impact the full benefit of these savings. I think it's obvious that the benefit of the economies of scale will give rise to further savings as volumes are increased. So it becomes a bit self-fulfilling. As you get more volume, your cost decreases. As you get lower costs, your volumes -- you've got an opportunity to tender better and growing -- get growing volumes. So I think we just -- it's worth just pausing here before we move on to manufacture because this, as I say, is nearly 80% of the revenue of the business. And so let's just have a quick look at the summary of what we've said in Commercial Pharma so far. We've got Regional Brands. They've got underlying growth -- there's underlying growth in the Aspen territories. So these are markets that are growing. There's also markets where we have got -- we've made -- we have large contributors in some of the markets, South Africa and Australia, and we've got proven performance in those markets. And we are a leading player. There's positive growth potential from Latin America and Africa Middle East. Those are territories that we would expect to become a larger percentage of the regional brand business in time. And the Europe oncology price declines are expected to stabilize by the end of 2021. And that is something that would then give us a base that we can then truly look at our -- the organic profiles of this going forward. We also -- it's supported by expert sales forces and meaningful pipelines. We spend a lot of time with our teams and getting to not just the doctors, but also giving commercial support even at the pharmacy level, which often differentiates us from other multinational peers or those that just trade in commodities and try and switch only. We try and manage both channels. In terms of sterile brands, more than 80% of our revenue is from Anaesthetics, and this is a growing category. We've got in-house manufacturing, which will drive cost of goods. And those cost of goods will obviously give us the obvious savings. But also, with the security of supply, we hopefully can tender more, and we have a better cost base. And that, in turn, would drive incremental revenue. And the Thrombosis brands now are concentrated in those countries with positive growth drivers and where Aspen, in turn, has also performed positively. Aspen, as I said, is always in a process of renewal. And we -- in terms of our portfolio, as in any 1 year, we're always acquiring something or disposing of something. And this is an inherent component of Aspen's product portfolio renewal and growth model. We have revenue related to acquisitions and disposals, and we're going to put those with the value to ZAR 1 billion, a net transaction value, plus and minus. In any 1 year, we include it in organic growth. And we really think that Aspen's established relationship of trust with multinationals will provide the access to these opportunities. When we look at the strategic positioning now, we -- the last area of the business, commercial area to talk about is our Manufacturing. There is a disproportionate number of slides on Manufacturing relative to the Aspen overall business, and that's because there's quite a bit of action in this area. And there's quite a -- it is some rollout that we're talking about here. But I think before we talk and go into numbers, I think we would like to spend some time on the work we've done embedding a safety culture within our manufacture. And this is an integral part of what we do as a business. Our safety record is something that we're really proud of, and it continues to improve. We've had 0 occupational fatalities for the last 7 consecutive years, and our focus on waste management has resulted in that we only have about 2% being recycled -- not being recycled and being landfilled. And I think the work is done, and you will see the improving ratios we've got in terms of -- and points really out of 5 in the Responsible Investment score. We've achieved an overall rating of 4.5 out of the possible 5, and we're in the JSE Top 30 Responsible Investment Index. I think if we had to pick one area that we're most proud, it's the safety culture that we brought into Oss. We walked into a site which had the authorities concerned. There was threats of closure. There were all -- there were many -- there were chemical reactions, spills and a real risk, chemical reactions that were explosive in nature as well that were not necessarily in line with what the authorities were comfortable with. And we have spent many years working together with those authorities. And I'm happy to tell you all the past investigations that we inherited from these authorities have been concluded and concluded satisfactorily. So it's something we're particularly proud of in what we've achieved. When we look at the Manufacturing business, we've already got 3 areas to talk about: the chemical business; the biochemical business, which are both API businesses, chemical; and then we've got a finished dose form manufacture, finished dose form where you make either the tablet or an in-syringe. Here, you just make the chemical that goes in. The business is a business we've spoken about. It's got a very large portfolio of 40 different and complex APIs. That's -- in chemical terms, that's a very broad portfolio. It's got specialist areas, steroids, hormones, peptides, muscle relaxants. And it's a major contributor right now to revenue and margin. All sites have been approved by global regulators. And we've -- as I've mentioned, we've got a strong SHE culture and just the delivery and the high technical competence and the legacy that this brings with the dedicated, experienced workforce or regions or areas that give regulators comfort around this site. I think if you want to look at this and understand the positioning of this business, what I'm going to tell you now is probably the most important. It's we've got a worldwide base of around 150 customers, and what's interesting is the diversity. We've got the largest multinationals and some of the smallest commodity players out of Asia who would come to us particularly for our hormonal products. So it gives you a sense of the need because often, these are processes that take 18 months, 2 years and are sold in micrograms on tablets. So it's not the major part of the cost of the tablet, but it's very important you get it right and you have the right qualities. We're looking here at a stable outlook of predictable sales denominated in euros and USDs. And post-COVID, we've got many pharma companies now wanting to switch to EU sourcing. And this ability to sustain and grow these trajectories is because we're seeing increased demand from our customer base. And we've got capacities both in India and South Africa so we can push some of the chemical reactions down into intermediates into those facilities. As with our Commercial Pharma business, we see this business as a business that has predictable revenues. And we see organic growth in constant revenue of between 3% and 7% for the 4 years ending financial year 2024. When I look at the biochem business, which is the second part of the API business, the biochem business is a commodity business. And here, heparin is our dominant player. This was a business where we've historically stockpiled significant heparin to give supply and cost certainty to our commercial business. As soon as the price dropped below a certain level, we tended to stockpile because we know it gave us sufficient -- gave us an acceptable margin in our finished dose business. Some of this heparin stockpile needs to be retained to meet both Aspen requirements, which are now much, much less, and the Mylan supply agreement over the next few years. And now we have a balance that's available for sale. We've also done much work in improving the processes. And we've reduced these lead times now from 12 months, which presently is to 3 months. Those approvals have been sent into the authorities, and we expect all our approvals through by January 2022. Of course, it will increase our available production capacities, and it means that we need a lot less inventory. The sales growth from this business anticipated initially through the reduction of our stockpile and also the opportunity that comes from having a business that would manufacture for Aspen at cost. So it was internally focused, so it's predominantly a cost center, to one which now sells product to third parties and becomes a profit center for third-party growth. So an interesting opportunity that we will be able to harness over the next years around the biochemical business. If there's one area that one should look closely at within Aspen, we spent much time and effort in building up a finished dose form capability for sterile manufacture. And we've made very extensive investments into CapEx. And those investments are not just in money. It's in expertise. It's in time, and it's in processes and in technology transfers. But we've done this because it was important to support the Anaesthetics franchise within our business to increase our prefilled syringe capabilities, which is a capability where, I think, we have such big global scale and such that there's increased global demand, that it's something that's going to be in much demand going forward. And also the creation of new opportunities. I mean, the most obvious of these new opportunities is, of course, the vaccines and the vaccine manufacturing capabilities that we have within our steriles, which have been endorsed by the -- by, for example, big companies like Johnson & Johnson. When you look at what we -- when we go back to the sort of 5-odd years when we sat down with the Board and we said, "Here are the hurdles that we'd like to meet in our CapEx," those hurdles, we only looked at them in terms of taking existing volumes of anesthetics and looking at that reduced cost of goods of at least -- which will be more than ZAR 800 million. And -- but those anesthetics and those volumes will only utilize 40% of our installed capacity. Of course, incremental volumes will improve returns, whether those volumes come from third parties or just from increased volumes, driven by cost savings out of our Anaesthetics business. So we've got 60% of that capacity remaining. And Phase 1 of that -- and we've split it into 2 phases. But Phase 1 is to contract 30% to third-party production, the -- which still leaves us with a remaining 30%. We believe that remaining -- that 30% of production, that third-party opportunity in Phase 1, will deliver at least ZAR 1.5 billion in EBITDA from third-party contracts by 2024. And this is because there's significant capacity available at both PE and NDB. And those capacities in Port Elizabeth come out of liquid vials and lyophilized vials capabilities. So vial capability is a big opportunity there. And in NDB, it's predominantly in the prefilled syringe area. It's very hard to give revenue projections here because sometimes you have the components in, sometimes you don't. But we measure the value of the contracts using their relative contribution to labor and overheads. And what does that mean? That means we get a certain amount of capital towards running our facilities. It can spread over the whole facility, those costs, which means that we can improve the competitiveness of other products or improve the margins of other products in the facility already. But it also -- there's also an element of profitability that comes out of that third-party manufacture as well. The obvious and the most high-profile opportunity that has been in the media of late within that capacity is, for example, the tech transfer that's underway with Johnson & Johnson to manufacture the finished dose form of their candidate vaccine. This is a transfer that's going particularly well, and we -- the parties are both very pleased with the progress made and the capacities and capabilities that Aspen have, have certainly -- have kept J&J particularly enthused by Aspen. And the approval of this vaccine, obviously, will have implications. As we've said publicly, we can make up to nearly 1 million vaccine doses per day. That's a very large quantity, if you think about making 1 million of anything a day, moving in and out of our production facilities. And so there's a lot of variability between what may and may not -- the volumes that may not be used. So -- but of course, a successful registration of this vaccine will benefit the contribution target. And the targets we're looking at, to cut through it all, is to get us to an EBITDA increment of about ZAR 1.5 billion, at least ZAR 1.5 billion from third parties. And of course, there's this vaccine opportunity, but there's significant interest in our prefilled syringe capacity. And these do come -- this is -- tends to be a higher-margin opportunity than, for example, vials. This target will be updated, and it's going to be updated depending upon the performance in the vaccine space and our broader performance. But it's something that we've set ourselves a target for. And as we get more certainty on timing and closure of these opportunities, we will keep updating the market on this opportunity. Even once we've harnessed all of these opportunities, significant capacities remain under Phase 2, and we'll refine our strategy in due course to determine the application, so what would come into further, what we might -- what would come into further anesthetic capacities, what we might use with third parties and what we might look at for other opportunities. So with that, Gus, I'm going to hand over the presentation to yourself on the financial metrics. So Gus will give that. And once Gus is finished, I will come back to round off with a couple of pages on closing remarks. Thank you.

Thank you, Stephen, for those insights. Thank you all for joining us today for this opportunity to share with you our strategic insights. And I'm going to actually talk to you about financial implications arising from those insights that Stephen has shared with you. So the first thing we're going to look at is the restatement of the financial year 2020 revenue and to effectively rebase that. So if you look at the slide, we start with Commercial Pharmaceuticals, and we've got the 5 new geographic territories that we're going to be reporting under henceforth; and then Manufacturing, separate. And we have an adjustment column showing discontinued operations. Those discontinued operations are the sale of the European Thrombosis business to Mylan, which affects Europe commercial pharma, and also an element of Manufacturing, where an API manufacturing contract for Thrombosis has also been taken over by Mylan. It also picks up a small further disposal in the European area related to fludrocortisone and some decommercialization of Thrombosis brands elsewhere in the world, in particular, in the Middle East, where you'll see a small adjustment. So that takes us from an opening and as reported financial year 2020 revenue of ZAR 38.6 billion, down to ZAR 33.7 billion. We then make 2 more adjustments after the discontinued operations. The first is for European oncology, it's from pricing adjustment. As many of you will be aware, we've made some commitments to the European Commission around the pricing of our oncology products going forward. And the ZAR 379 million represents the value by which our oncology revenue in Europe during the financial year 2020 would have been reduced had those commitments been in place during financial year 2020. You'll also see in this other rebasing adjustment the Mylan Thrombosis manufacturing contract. So part of the Thrombosis transaction with Mylan is a 10-year supply agreement. And we expect on an annualized basis around ZAR 2.3 billion to be the value of the sales we make to Mylan through that supply contract, which gives us an adjusted revenue of ZAR 35.6 billion. This is all at the exchange rates which were applicable to the financial year 2020. We've then shown an indicative line, which is a currency effect. And what we've taken is the first 5 months of the new financial year up to the end of November, the average rate for that period, and then assumed the November end exchange rate for the balance of the 7 months of the financial year, which brings us to an adjustment under that assumption of ZAR 1.5 billion and would result in an uplift of revenue from ZAR 35.6 billion to ZAR 37.1 billion. Obviously, exchange rates are very dynamic, and that is just indicative, the exchange rates of the day will prevail. Below the table, we've noted the calculation on which we wish to base the measurement of organic growth for Commercial Pharma over this 4-year period. So that takes the Commercial Pharmaceuticals number from the top of the page, the ZAR 26.4 billion, and removes the ZAR 0.4 billion from the Europe oncology adjustment to get you down to a value of ZAR 26 billion. Doing a similar exercise with the 2020 EBITDA. We start off with normalized EBITDA of ZAR 11-odd billion. And then the discontinued operations give rise to an adjustment of ZAR 1.4 billion and an adjusted normalized EBITDA of continuing operations at ZAR 9.6 billion. The oncology adjustment falls all the way through. The adjustment to revenue is also the adjustment to EBITDA. So if taking that number off, you come down to the adjusted normalized EBITDA of ZAR 9.2 billion. And applying the same principles to the currency effect and the exchange rates, it would arrive in an uplift of about ZAR 400 million-odd and an outcome on EBITDA of ZAR 9.6 billion under those assumptions. I'm now going to take you through our financial targets that we've set for ourselves over the period running up to financial year 2024. There are 3 principal areas, which is that EBITDA growth over the 4 years should exceed revenue growth, that we want to maintain a stable balance sheet and that we will improve our free cash flows. So if we look at each of those in turn and unpack them a little more. On the EBITDA growth, we expect this to be achieved off a rebased EBITDA of 25.8%. You will note, that is less than we reported at financial year-end. That is because primarily of that Mylan inventory adjustment, where we've got ZAR 2.3 billion of revenue arriving. But we don't believe that there will be any profit attached to that. We are also, as Stephen mentioned, looking for COGS savings of ZAR 800 million from bringing the Anaesthetics manufacture in-house. And we have about ZAR 1.5 billion or more that we think will be added EBITDA benefit from bringing -- from our finished dose form manufacturing capacity utilization. In addition to this, we've got ongoing projects aimed at enhancing business efficiency. These relate to organizational design and general benefits of digitalization. In maintaining this -- a stable balance sheet, we've set ourselves a cap of a leverage ratio of no more than 3.0x. And talking about improving free cash flows, we have a historically strong record of operating cash flows. And free cash flows will be enhanced over the period through reduced property, plant and equipment CapEx spend. This is because the big strategic CapEx projects that we have been undertaking are starting to wind down. 2021 should be the last of the big years of CapEx spend and then declining spend over -- after that. We are also targeting a reduction in inventory out of the Manufacturing side of the business. In particular, Stephen spoke to you about reducing the heparin stockpiles, which should release working capital. And then we are in the final process of agreeing new terms with a major third-party customer, where we have been holding inventory on their behalf. And under the new arrangements, we would not expect to continue to do so. Between these 2 initiatives, we believe that the related stock values at current exchange rates should reduce by over ZAR 2 billion before financial year 2024. Obviously, improving cash flows provides capacity for further reinvestment and the enhancement of the value of the business for all shareholders. It also provides the capacity for us to make commitments to returns to shareholders. And in particular, we have committed to the recommencement of the payment of dividends during the course of the next 12 months. It also gives us the opportunity at the appropriate time for opportunistic and cyclical share buybacks. Today, we also want to share with you our capital allocation prioritization. This was endorsed by our Board earlier in this week, and it's underpinned by the leverage cap of 3.0x. And it's facilitated by the increasing free cash flows that we are targeting. There are 4 priorities, the first of which is property, plant and equipment CapEx as well as intellectual property development that we undertake as a business. And these are to ensure the health of the business is sustained, to ensure business continuity and the overall strength of the business and its efficiency. Also, an inherent part of the business model are bolt-on acquisitions of IP and businesses, and this is essential to the renewal of our product portfolio on an ongoing basis. We placed a cap of the value of bolt-on acquisitions and IP acquisitions in this particular bucket of a net value of ZAR 1 billion from acquisitions and disposals during any one financial year. That releases us to the third priority, which is the payment of dividends, which we have just spoken about, and that commitment that we have now made to reintroduce dividends. We want to set a bottom level commitment for dividends at 20% of normalized headline earnings per share with the potential to grow the dividend over time. And finally, the fourth priority, once the dividends are paid, is the undertaking of strategic M&A. So these are larger M&A transactions that are value accretive, and they will stand behind our commitment to pay dividends. I hope you found all of that insightful and helpful. And I'd now like to hand over to Stephen for closing remarks. Thank you for your time and attention.

Thank you. Thank you for that, Gus, and thanks for giving some context to the growth and the strategies from before and putting the numbers to them. And also, I think, very important, some of the financial disciplines and some of the allocations that we as a group are going to -- are looking towards. So I'm just going to try and use the next few slides just to wrap up a little bit and just summarize a little bit of what you've heard over the last hour. If we look at our growth outlook for financial year 2024, we've got predictable growth. And that really comes out of our Commercial Pharma and API chemical businesses. And we're looking at 4-year compound annual growth rates there of between 3% and 7%. Why did we pick 4 years? Well, normally, we'd like to work -- we work in buckets of 3 years. But given the COVID, we put the 4 years so we don't say to you if the COVID didn't happen or if this happened, this might happen. We've given you something that we feel give us comfort to move on. But if -- that, as I said, is the large part of our business, and that's the business of the Commercial Pharma and chemicals. There's a new opportunity in biochemicals as we transition from a cost center for Aspen. So it's got its own internal requirements. To third parties, of course, this will give more predictability to heparin income. Because in the past, when we wanted to use our stock just for ourselves, there was no income. And we'll obviously give more income because we're going to take this business, take these volumes and instead of selling to ourselves, which we didn't record as a sale, of course, we would be selling to third parties. Probably the area that one should -- if you were focusing on where Aspen has got some very strong opportunities and real strong growth prospects and a big focus for us over the next period is our finished dose form capabilities. Here, we're expecting more than -- greater than ZAR 1.5 billion in EBITDA from Phase 1, and that would use up to 30% of our capacity. And of course, there's more capacity to come. So there's a really big opportunity for us. And certainly, by utilizing those capacities, we're going to start seeing increasing returns in the business. Same CapEx play, same air conditioning, HVAC, labs, and it's just putting more volume through. And so those returns become incremental. And for all of you that work out all the return metrics, any financial return metrics, et cetera, these are -- this is in the time when those return metrics increase. Of course, when one has return metrics, one can -- there's a time when you invest and there's a time -- and in those times, those metrics are stressed. And then there are times, of course, when you start getting returns on those investments, and we're in that phase now. M&A opportunities will provide incremental growth for Aspen. And maybe it is worth spending a little bit of time understanding what -- where we see M&A going forward. We've had a strong relationship with multinationals, I mean, for those of you that have followed us will be testament to that. It's been built on many years of delivery of transactions and manufacturing commitments. When you look at it, if I look over the last period from 2013 to now, we looked at -- we've done over 40 transactions with multinationals. I'll repeat that, 40 transactions. And it's a testament to our capabilities and abilities that multinationals transact with us at the level and the scale that they do. And when you look at -- the manufacturing capabilities have often been the gateway or the door that brings people through. So people will sell us facilities to fix and give us products. But if you look at the capacities, capabilities, look at -- I can think of no better example than the very recent example of a very large multinational, maybe the -- probably the largest pharma company in the world, J&J, endorsing Aspen and saying, "Aspen, we're trusting you to supply into us globally for a COVID vaccine." This is a critical -- and when you look at it, we probably -- when I look at the number of third parties being used for COVID vaccines, I'm not sure anybody has offered as much capacity as Aspen has offered. The opportunity to increase relationships with multinationals is particularly strong at the moment because multinationals are now focused on product portfolios and geographies, often focused on oncology products. So their focus goes into oncology. And those products tend to fit in certain demographics, and it's quite hard to get the necessary scale in some of the emerging markets. And this presents opportunities for Aspen to build on our product portfolios. And with our strengthened balance sheet, of course, we now have the capacity once again to make these acquisitions. People might ask, "Well, why -- how do you buy and sell a product? And how do you, as Aspen, create value for yourselves and for us as investors in the business?" And really, value is created by changing the earnings trajectory on this product. So if your product was declining at 3% and now you make it grow by 3% in perpetuity, then if you do a financial model, you might double the value of those products. To just give you a sense of what Aspen has been able to achieve already. If we take our Anaesthetics portfolio, this is a portfolio that was declining at 7%, more than 7% actually, prior to Aspen's acquisition. Even without supply -- we had a break in supply. Even with that break in supply and without any benefit of the cost of goods savings and bringing these products in-house for Aspen manufacture, we have stabilized these products over the last couple of years. So we think that -- obviously, with improved supply and in-house manufacture, this represents a very unique growth opportunity for Aspen. Now of course, changing that trajectory from minus 7% -- plus/minus 7% to something in the positives creates the value that we need in order to be able to get the returns on these investments. Bolt-on opportunities have been targeted for territories where we've got structure. So you now say to yourself, "Okay, I've got the structure, I've got -- now across 50 countries." Put the products in, it filters down. And now it's not -- there's no major setup costs. You are able to put it in. And your contribution there, a lot of it flows down to your operating profitability because you've got the structure. And it's important you have that structure for multinationals. Of course, we look at larger M&A opportunities, and these have to be value accretive to Aspen and within the group strategy. So a good fit for Aspen would one that fits onto our geographical footprint, so we've put it on, it's easy enough to flow through the business and to be absorbed by the business; and then also one which leverages our manufacturing capabilities. So of course, we might not have looked at sterile opportunities 5 years ago. We're going to look very closely at those opportunities. We didn't look at vaccines in a prior period. We have an opportunity now with the manufacturing to look at those opportunities. All those opportunities, as Gus mentioned, we'd be looking at while trying to maintain our leverage within a 3x limit. So that really leaves us just with this final slide that I'd like to take you through, which is the strategic positioning of Aspen. And hopefully, this consolidates all the areas that we covered earlier. And when we look at our strategic position, I go right back to our first slide in which I told you what were our objectives and what did we try -- what were we trying to achieve. And much of what we were trying to achieve is just simply encapsulated in this slide in which we talk about establishing a niche portfolio of products and portfolio. And that product portfolio is branded products. It's specialty products, and it's both sterile and regional. So we've got this great product portfolio. We've got complex API capabilities, but we've got manufacturing capacities. And Aspen has prided ourselves on manufacture in our group, and it's been often entrée into greater things for the group. And here, we have -- right now, we're standing at the cusp and about to unleash our manufacturing capabilities globally in steriles. And this is a really big opportunity for us to be able to grow the group over the next decade. So -- and then, of course, to do all of this, you need a footprint. You need people in market to do it. And we find in our previous models, we were limited because our supply chain was regional. And so the opportunities had to be regional, and they couldn't be global in nature. And we couldn't fully harness all of the relationships and the opportunities because we weren't represented globally. And so what we have now is more than 50 countries, and this is an ability to seamlessly absorb portfolios. And that's important because as we've gone through, many of our relationships historically have been with multinationals and our transactions. And ultimately, we acquire much of our product portfolio through multinationals. We get them into the client base and into supporting us because of their respect for our manufacturing and trust in our manufacturing capabilities. And also, they require somebody who can make this -- fit in this commercial footprint that can take this on seamlessly across these countries. And that's why you will see very few transactions with multinationals extracting product portfolios for diverse regions. They might do U.S. or Europe, but private equity is unable to provide this type of footprint. Knowing what to do in Nairobi, what to do in Lima, what to do in São Paulo, what to do in Johannesburg, there's all -- they are different, and in Sydney and in London. So there's very few that have that capability, and that's something we have. So really, we've got organic growth driven by trusted specialty brands, promoted by proven sales team. We've got manufacturing quality, and this will -- and capacities now that will provide competitiveness, which is very important in some of the key areas, the tender-driven businesses we have, and will provide the new revenue streams, which I've described earlier to you. And of course, to do all of this, if you -- we as a company haven't given equity. We need strong free cash flows, and those cash flows are going to be improved because our CapEx projects are starting to come to an end. We're starting to reduce -- we've seen an opportunity to reduce our working capital in areas, and this will allow strategic reinvestment and improve returns to shareholders over time. And so I think we've worked very hard over this last period. It's not been -- it hasn't -- certainly, it hasn't been an easy period to. But transitions never are. But I think we have metamorphosized. I think when we went into the cocoon, a lot of people didn't think we'd come out. And a lot of people thought, at best, we'd come out a moth. I think we've managed to come out a butterfly, and it's for -- it's in our hands now to execute on the strategy that we have shown to you. So with that, I think we're going to move towards Q&A. I think there's a small video first. We'll run the video, and then I'll come back to deal with Q&A bit later. But thank you all for your time and your interest within Aspen. Thank you. [Presentation]

Thank you, and hope you enjoyed the facilities. It will be nicer to see them in real life in the presentation. We've got about 30 minutes for questions. And Luresha, are you -- I believe that you've got a few questions there. So...

Yes. Thanks, Stephen. We've got the first question coming through. "Can we have some color on the J&J vaccine opportunity, the number of doses and by when? And is the J&J agreement an exclusive agreement? Or can there be further opportunities for vaccines?"

The J&J vaccine opportunity, if we look at the capacity, it requires a certain area in our facility. It certainly doesn't take our entire facility, but the opportunity is to make up to 1 million doses a day. So fully utilized, we could make 1 million doses a day. Beyond that, we've got 2 other areas where one can make vaccines. The first is in -- these vaccines, often, if you look at flu shots, they come in prefilled form. So in time, as the -- this is something we could be -- we could make vaccines in a prefilled form. And if the contained requirement isn't needed, then within our Port Elizabeth facility, there's other opportunities to make vials, et cetera. So our relationship with J&J is really to give them exclusivity in the area that we've reserved for them, and that area alone can make 300 million. But there's an opportunity to make significantly more volumes across both prefilled syringes and our normal vial line when -- if containment isn't needed for that particular vaccine.

Okay. The second question, kind of broken up into a few parts. "Please provide how much of the finished dose form EBITDA target the manufacturing of the J&J COVID-19 vaccine would contribute. And can you achieve the ZAR 1.5 billion EBITDA targeted contribution without the J&J vaccine?"

Okay. So the contribution is not a cumulative, it's per annum. So we would hope to have incremental EBITDA of an additional ZAR 1.5 billion in the year of 2024 or before. The -- there is contribution, and we -- it's hard to say because we're not sure, one, has the vaccine been approved or will it be approved? And what volumes will flow? There is obviously bigger volumes. There's potential to increase these numbers. But that, we will update you as we go along. In a world without a J&J vaccine, I believe that, that target still holds good for Aspen to 2024, one, because we have got -- we're seeing an absolutely -- a shortage of the sterile capacities. So we could use that area for another vaccine. And so there are many, many other opportunities for us, but not least the fact that this capacity is in very high demand globally. We're very well positioned with our facilities and with our build project and then to be able to take advantage of those opportunities.

All right. Next question, "How large is the heparin stockpile available for sale? And does heparin expire? Or does it last indefinitely?"

So there isn't any concerns with shelf life. And I would think that we would want to reduce -- when our new process is online, we'd want to reduce that stockpile by at least ZAR 1 billion.

Sure. On the next question, will -- sorry. "On share buybacks, when do you expect to be in a position to decide on a buyback or not?"

Thanks. I'll take that one, Steve. So we've received the first payment from Mylan in terms of the Thrombosis disposal, EUR 263 million. There's EUR 379 million due before June of 2021. And clearly, these amounts will put us well within the range of our 3.0x covenant, which is the cap that's been set around determining the spend under the capital allocation. So it does put us in a position to consider buybacks, and it is something that we can consider from time to time when we believe it's appropriate.

All right. Thanks, Gus. Can we -- sorry, I'm just refreshing. "Can you give us an update on current business conditions?"

The -- of course, as we all know, we've had strong second waves of COVID across Europe and certainly increasing COVID in South Africa. I would think the conditions are probably -- we had a good second half, a relatively good second half given COVID last year, and I think the conditions are not dissimilar to that second half. It's really all about keeping our factories open and being able to produce in our supply chains. We have had much success in that, albeit at a cost, because every time someone is a contact, you might close a lab or close a production area. So it's disruptive. But certainly, we have kept our doors open, and that is very, very positive. In terms of trading itself, it's -- we are seeing -- if we look across our Commercial Pharma business, we are seeing the Regional Brands. We are -- in some areas, the brands are doing fine, but there's definitely a falloff in the OTC category, cough and cold and antibiotics, so the acute category. Our sterile brands are performing very positively. And this is in spite of elective surgery, the on/off process of elective surgery. Both our thrombosis and anesthetic brands are performing well. And then our API business has been performing -- continues to perform strongly in this COVID environment. So a bit of a mixed bag. But as long as we keep our doors open and we're getting products to patients, this is our absolute priority at the moment. In addition, we're doing a lot of transfers, sterile transfers. It's very positive to actually see factories with machines in and validating and move forward commercially, a lot of focus on bringing the anesthetics in-house and, of course, a flurry of work around delivering the J&J tech transfer and being able to produce product within a very short space of time.

All right. "Can you give us some more information on the U.S. product launches that had been spoken about in women's health?"

The -- we've signed an agreement with offtakes with a company called Avion on our women's health. So we expect that Cenestin product to come to market in the course of next year. And the Orgaran has been put on hold until we have clearance on COVID. It's been similar for many of the other FDA products that people are unsure, have people died from COVID or something else. So we're not sure on the hold. So until that COVID is clear, we are -- will have -- we've got our Orgaran trial on hold.

"On sterile capacity, can you give us a deeper understanding of the demand for this type of capacity?"

The -- I mean, the capacities we've got, as I said earlier, the big capacities sit in our prefilled syringes and our vials. The vials come both in a liquid form and a lyophilized form. Lyophilized is when you've freeze-dried something. So if you've got problems with stability, and many vaccines do have, and you wanted to be able to transport it in ambient territories, you might lyophilize that product. My guess is that many of the vaccines currently that have come to market in liquid form in time may be or will be lyophilized. And that is a capacity really needed for vaccines and a capability needed for vaccines. I think I don't have to say more about our multidose vial capacities and the requirement for those. So I would think in our PE facility, there's demand for the liquid vials, and lyophilization is a strong area of demand. There are other areas that we look at in vaccines. And for South Africa, clearly, there's been some progress with HIV vaccines to be able to give protection for a couple of months, 2, 3 months or whatever the period might be. Aspen would obviously be very interested in being -- given our position in HIV to be a part of that process. And there's -- there are many other vaccines as well, and there are many people approaching us for that vial capacity. The prefilled syringe capacities are capacities that are premium capacities. You do often have vaccines in them, as I mentioned earlier, flu vaccines in them. But also, there's just broader use and there's a broader need for this. Particularly, many of the new developments are around these prefilled syringe capabilities. Certainly, we have much interest in it and also in prefilled-cum-diluents for vaccines. So the vaccines are mixed with something called a diluent. And so that's also an opportunity in a prefilled form. So many, many opportunities. It's for us to execute on them. Each one comes with a tech transfer and a lot of hard work, but you don't have the opportunity if you don't have the capacity. So we've taken -- we took a bet, and we took a strategic shift into steriles. And sterile capacities and capabilities that we've built are large on a global scale. I haven't seen too many other people offering this type of capacities globally from a third-party point of view. So we're in a very good position to hopefully meet the needs for patients and the need for the demands around the world. And I think this is something we'll have to just keep -- it's very dynamic and a moving target. Fortunately, it's moving -- always seemed to be moving in the right direction, and it's something that we will keep you updated with as we go along.

Okay. A question on EBITDA. "If revenues are growing at 3% to 7% CER over the next few years, how much faster should we think that EBITDA grows?"

I think if you do the maths, if we execute on our plans, and of course, these are targets and plans, if we execute on them, there is -- there's every reason -- there's no reason why we shouldn't be in double digits in our EBITDA and our growth of EBITDA. Gus gave you the different -- and you can comment, Gus, but you did give the different opportunities. In terms of savings and growth, the -- I think the -- the utilization of our capacity is something we've got strong confidence on. And certainly, we understand what we can save in cost of goods. So these are sort of bankable opportunities that are really within our control, and that's always a good position to have savings in.

All right. Sorry. And the last question that I have on my list is, "You've mentioned an investment in plastics for the local anesthetics. Have you considered the environmental impact of this? And how does it take into consideration at Aspen?"

Yes. I think we've -- so there's -- first, there's a couple of areas to consider there. There's -- the first area to consider is, there's glass or there's plastic. The use of plastic is generally preferred by the dispensers, and that becomes critical to us. But we're looking at the various plastics to understand, do we use polyethylene or polypropylene or whatever plastic tube? But that's in its infancy at the moment. And to fully understand where it will go, we will report back on that in time. Is there something you want to add to that?

I don't think there's too much to add other than we obviously want to achieve the right kind of ESG outcome here. And also, we want to be competitive in a market where plastic is cheaper than glass.

And more effective because when you use a plastic product, you don't need a preservative. And that gives you more indications. And it is a once-off in its utilization. So people are not always comfortable. It's certainly where the theater is moving, to be using a multidose vial, to be using something that you keep putting an injection in a couple of times when you're in a theater setting. Is that it?

Yes. Thanks, everyone. Thanks for joining the presentation today, and we look forward to speaking to you in the future. Let me hand over to Stephen and Gus.

Well, thank you so much for your interest in Aspen and for taking the time to listen to our presentation and where we are. We've had a tumultuous year. We've got ourselves into pretty good shape. And it's a period now where we must now realize the benefits of all this investment that we've made, and it's an exciting period to go -- to be -- for Aspen and for people to go into. And it's also a very exciting time for Aspen to be part, hopefully, of bringing a world back to some form of normality in the not-too-distant future.

Yes. Thank you all for your interest and your time today. We really appreciate you taking time out at this time of the year and on a Friday to spend some time listening to our plans for the future. And we look forward to speaking to you all again in the new year and updating you on the progress we're making against this plan because this is a plan that we want to check ourselves against as we go forward. And clearly, you will also check us against it. So just wishing you all, those of you entering into the year-end period, a bit of enjoyable time with your loved ones. And please take care and keep yourself safe and healthy. Thank you.

Thank you so much. Thank you.