ATS Corporation (ATS) Earnings Call Transcript & Summary

And welcome to ATS' Corporate Annual and Special Meeting of Shareholders. Please note that today's meeting is being recorded and includes a slide deck, which will also be available on the company's website at atsautomation.com. If you participate in today's meeting and disclose personal information, you will be deemed to consent to the recording, transfer and use of same. [Operator Instructions] It is now my pleasure to turn today's meeting over to David McAusland, Chairman of the Board and Director of ATS Corporation. Mr. McAusland, please proceed.

Thank you, operator. Good morning, ladies and gentlemen, and welcome to the ATS Annual and Special Meeting of Shareholders for 2023. Please note that our remarks today are accompanied by a slide deck, which can be viewed via our webcast and is available on our website at atsautomation.com. My name is David McAusland, a proud long-term shareholder of ATS and Chairman of the Board. I'm calling the meeting to order: Stewart McCuaig, Corporate Vice President and General Counsel, will act as Secretary; Andrew Hider, Chief Executive Officer and Director of ATS; and Ryan McLeod, Chief Financial Officer, are also participating and will be available to answer your questions later on in the meeting. David Galison, ATS Head of Investor Relations, will help us field those questions. Shareholder engagement is vitally important to your Board and executive team. That engagement comes in many forms, and today, it centers on an agenda that covers important business items for shareholders. As is our custom, we also wish to use the informal part of this meeting to engage in a discussion of our strategies and to update you on business progress and market conditions. To set the stage for engagement, I will begin with a few observations on behalf of the Board. The primary purpose of any annual meeting is to conduct the important annual shareholder business of the corporation, and today, we will do that. But we also want to update you on recent developments, strategies and progress. For the most part, that task will fall to Andrew and Ryan, but I will add thoughts of my own to start. As well demonstrated over the past year, ATS is definitely a company on the move. Backed by the disciplined structure of the ATS business model, our global teams are delivering essential innovations to a growing number of the world's most successful companies, while addressing the realities of today, labor shortages, supply chain disruptions, onshoring, climate change and the exciting rise of alternative energy applications. If ever there was a business well positioned for both the here and now and the future, it is ATS, which is most assuredly building tomorrow today. My thanks to our more than 6,500 employees for dedicating their time and talents to the continuous improvement and development of our company, to our customers and shareholders for your loyalty, to our outstanding leadership team and to my fellow directors for their sizable contributions to the governance of this fine organization. As directors, we take our role very seriously in all respects. In particular, we recognize that environmental, social and governance issues matter not only to us as shareholders, but to our customers and our employees who are themselves striving to do the right thing in a complex world. The Board is responsible for the corporation's approach to ESG matters and hand-in-hand with management has embedded ESG as a priority with many positive outcomes, including the development of well-defined targets. These include becoming carbon neutral, increasing diversity on our Board and leadership teams, reducing workplace injuries, ensuring ethical business training for all employees and expanding engagement with our communities. You can read more about the Board's approach in both the management information circular and the annual ATS sustainability report. So I will refrain from providing more detail today except to state that this has been a very active period for the Board. Beyond normal course business, recent highlights included: Preparing for the corporation's successful listing on the New York Stock Exchange in May, adopting a shareholders' rights plan that is common for dual-listed Canadian companies and to ensure that all shareholders are treated fairly in the event of a takeover bid. Engaging with management on 4 acquisitions that bolstered our services, digitization and most recently, AI capabilities, introducing our first say-on-pay advisory board, a vote, which we will conduct today. And recruiting Sharon Pel as an outstanding candidate to join our Board this year. During her 40-year career, Sharon has developed a deep knowledge of corporate governance in Canada and internationally. She serves on the Board of OPTrust, one of Canada's largest pension funds with over 106,000 members and earlier in her career was a partner at the international law firm, Torys, and Senior Vice President and Group Head, Legal and Business Affairs at the TMX Group. With your approval, Sharon will join the Board that will now be comprised of 8 experienced business leaders with the diverse skills and perspectives needed to govern a global company that is itself proudly diverse. To these opening observations, I would add that ATS is clearly committed to building long-term shareholder value. Our NYSE listing was a big step in this regard as it makes it easier for those inside Canada to purchase shares, which in turn gives us access to deeper capital pools and improve liquidity. NYSE membership also raises our corporate profile in a way that complements our M&A conservation efforts. To leverage that new platform, and as part of ongoing shareholder engagement efforts, our executive leaders are hosting an Institutional Investor Day in New York on September 6. And I strongly encourage institutional participation as the event will give great insight into our strategies, market potential, capabilities and management talent. For those loyal Canadian shareholders, rest assured that there will be no change in our investment status here at home as we mark the 30th anniversary of our TSX listing this December. A final comment on shareholder value creation. Including Q1 of this new fiscal year, ATS has delivered 62 consecutive profitable quarters from continuing operations. This is a great track record, achieved despite the challenges of COVID and its economic aftermath and in fiscal 2023 accompanied by a record setting growth. In turn, ATS has outperformed the TSX Composite Index over the past 5 years on a total shareholder return basis. With a strong balance sheet, a record amount of business on our books and the ATS business model guiding our activities, we look to build on this legacy of performance for all shareholders as we move forward. Finally, I would like to recognize the tremendous efforts of Andrew Hider and the ATS management team who worked tirelessly to deliver great results on their behalf. Now on to the business of the meeting, which I have called to order. Once the formal business items of the meeting are complete, I will invite management presentations from Andrew Hider and Ryan McLeod. And then following those presentations, we will address any questions received throughout the course of the meeting using the instant messaging feature of the virtual interface. As I stated earlier, I will preside as Chair of the meeting. Stewart McCuaig will act as Secretary of the meeting, and David Galison will perform the role of moderator with respect to all questions submitted throughout the meeting. As matters of business to be concluded today -- conducted today, we have the election of directors, the reappointment of the corporation's auditors for the coming year. Consideration of an ordinary resolution approving and ratifying bylaw #3 relating to the removal of Canadian residency requirements of the directors of the corporation. An advisory resolution on the corporation's approach to executive compensation; and finally, consideration of an ordinary resolution approving and ratifying a shareholders' rights plan that was adopted by the corporation. If there are no objections, I will ask Patty Sigiannis and [ Luke Zepo ] of Computershare Investor Services to act as scrutineers for the meeting. The Secretary has advised me that the notice calling this meeting, together with the form of proxy and Management Information Circular have been made available to each Director of the corporation, the auditors of the corporation and to each intermediary and registered shareholder of common shares of the corporation of record as of June 16, 2023, the record date for the meeting all in accordance with applicable laws. These materials are available on the corporation's website at www.atsautomation.com. and on the corporation's profile on SEDAR and EDGAR. Our transfer agent, Computershare Investor Services, has attested to the proper mailing of the notice calling this meeting. There has been filed with me the proof of service of such mailing provided by the corporation's transfer agent. The scrutineers have provided me with their preliminary report regarding shareholder attendance at this meeting. That report is that there are common shares representing over 88% of all outstanding common shares of the corporation present at this virtual meeting or represented by proxy. Accordingly, I declare that the requisite quorum of shareholders is present. And I declare that the meeting is duly and properly constituted for the transaction of business. I direct that proof of mailing in the scrutineer's final report on attendance be annexed to the minutes of the meeting. As this meeting is being held virtually via live webcast, we think that it is necessary to set a few rules for orderly conduct. One, questions can be submitted by using the instant messaging service of the Lumi virtual interface. Two, when asking a question, please indicate your name, which entity you represent, if any. And if you are a shareholder, duly appointed proxy holder or guest; three, Questions will be addressed during the question period at the end of the meeting, provided the questions regarding procedural matters or directly related to motions before the meeting may be addressed during the formal part of the meeting. Four, for the purposes of the meeting today, voting on all matters will be conducted by electronic ballot. Registered shareholders and duly appointed proxy holders will be asked to vote on each business item after the presentation of all business items. Five, once discussion on all items of business has concluded, I will give you a minute to enter your votes, if you haven't already voted by proxy, and I will then declare the voting closed on all resolutions. Six, when you're asked to vote, you will receive a message on the virtual interface requesting you to register your votes. You will only have a certain amount of time to do so when the polls are open. We will now proceed with the formal part of today's meeting. I have been advised by Ryan McLeod, that he is prepared to second each of the motions in respect of the items of business outlined in the management information circular. Accordingly, unless there are any objections, I will take such motions as seconded when made and no further action will be required. The first item of business is the presentation of the corporation's consolidated financial statements for the year ended March 31, 2023, and the auditor's report thereon. Copies of these documents have been mailed to the shareholders who requested them and are also available on the corporation's website and on SEDAR and EDGAR. It is not proposed to read the financial statements for the meeting. Receipt and presentation of the financial statements for the year ended March 31, 2023, are hereby acknowledged. And I direct that these financial statements and the auditor's report be annexed to the minutes of the meeting. Ryan McLeod will review the financial results of ATS following the formal part of the meeting. We will now proceed with the election of directors. A number of directors to be elected at the meeting has been fixed at 8. I move to nominate those persons specified in the management information circular for election as directors of the corporation to hold office until the next Annual Meeting of Shareholders or until their successor Annual Meeting of Shareholders or until their successors are truly elected or appointed in accordance with the articles and bylaws of the corporation and take such motion as seconded by Ryan McLeod, as I said earlier. The proposed nominees are: Dave Cummings, Joanne Ferstman, Andrew Hider, Kirsten Lange, Mike Martino, David McAusland, Sharon Pel and Philip Whitehead. If there are any further remarks with respect to the foregoing, please submit them now through the instant messaging service on the virtual interface. I will just pause for a few seconds.

There are no further discussions with respect to this matter.

Thanks, Stewart. As there's no further discussion, I move that and we'll proceed to the next item of business. We will now proceed with the reappointment of the auditors of the corporation. I move that Ernst & Young LLP be reappointed as auditors of corporation until the next Annual Meeting of Shareholders or until a successor is appointed, and that the Board of Directors is authorized to fix the auditor's remuneration and to take -- and take such motion once again as seconded by Ryan McLeod. Is there any discussion on this motion?

There is no discussion at this time.

Thanks, Stewart. As there's no further discussion, we will move to the next item of business. The next item of business is to consider and, if deemed advisable, to pass an ordinary resolution confirming the adoption of and ratification of bylaw #3, a bylaw relating to the removal of the Canadian residency requirement for Directors of the corporation, the full text of which is on Page 14 of the Management Information Circular. To provide context for this resolution, the corporation's governing corporate legislation, the Business Corporations Act of Ontario was amended effective July 2021 to remove the Canadian residency requirement for directors. Bylaw #3 was adopted by the Board on March 1, 2023, to remove the Canadian residency requirement for directors under Section 2.2 of Bylaw #1 in order to conform with such legislation. And to update the name of the corporation from ATS Automation Tooling Systems to ATS Corporation in bylaw #1 and bylaw #2. All that said, I move to pass bylaw #3 resolution, and I take that motion as having been duly seconded by Ryan McLeod. Is there any discussion on this motion?

There is no discussion at this time.

Thank you, Stewart. As there's no further discussion, we will move to the next item of business. The next item is to consider and if deemed advisable, to pass a nonbinding resolution accepting the corporation's approach to executive compensation, the full text of which is on Page 14 of the Management Information Circular. which I will refer to as the advisory resolution on executive compensation. To provide context for this resolution, we believe that a shareholder advisory vote forms an important part of the ongoing process of engagement between shareholders and the Board on executive compensation. We presently intend to conduct such a vote at each annual meeting of shareholders. I therefore move to pass the advisory resolution on executive compensation and once again take such motion as duly seconded by Ryan McLeod. Is there any discussion on this motion?

There is no discussion.

Stewart, thanks. As there is no further discussion, we will move to the next item of business. The final item of business is to consider, and if deemed advisable, to pass an ordinary resolution ratifying, confirming and approving the ATS shareholders' rights plan agreement. And the rights issued and issuable thereunder. The full text of which is on Page 18 of the Management Information Circular. A copy of the shareholders' rights plan agreement itself can be found in Schedule B to the Management Information Circular. To provide context for this resolution, the rights plan is designed to help ensure that shareholders are treated equally and treated fairly in connection with any takeover bid made for ATS. To provide all shareholders with an opportunity to participate in such a takeover bid and to provide the board with sufficient time to consider and if deemed appropriate to develop alternatives for maximizing shareholder value. The basic objectives of the rights plan are to deter abuse of tactics by making them unacceptably expensive to the unsolicited bidder. To discourage prospective acquirers from accumulating control blocks of ATS common shares by means other and by way of offers made to all shareholders and to encourage prospective acquirers to negotiate with the Board rather than to attempt a unsolicited hostile takeover bid or a creeping bid or accumulation of control. All that said, I move to pass the rights plan resolution and take such motion as having been duly seconded by Ryan McLeod. Is there any discussion on this motion?

No discussion at this time.

Thank you, Stewart. As there is no further discussion, I will proceed with voting as explained earlier. As we mentioned, voting will be conducted by electronic ballot. As a reminder, if you have already voted in advance, do not vote again unless you want to change your vote. If you vote again using the online ballot, your online vote will revoke your previously submitted proxy. I will now take a moment to ask that the balloting be opened to registered shareholders and duly appointed proxy holders. The polls are now open. And at this point, all registered shareholders and duly appointed proxy holders who have properly logged in with their control numbers or username and who wish to vote will be able to see on the screen all motions being brought forth at this meeting. Please register your votes by accessing the voting page and selecting for or withhold buttons next to the name of each proposed director and next to the resolution with respect to the appointment of Ernst & Young LLP as the corporation's auditors and the for or against buttons next to each of the subsequent resolutions. Once the electronic balloting closes, the voting page will disappear, and your votes will be automatically submitted. I will pause for the voting. [Voting]

The voting has taken place. I will now declare that the poll is closed. I've been advised by the scrutineers that a sufficient number of votes have been received to pass all of the resolutions before us today. Accordingly, I am pleased to announce that one, each of the 8 nominees have been elected as directors of the corporation to serve until the next Annual Meeting of Shareholders or until their successors are elected or appointed; two, the appointment of Ernst & Young LLP as the auditors of the corporation has been approved, and the Board of Directors of the corporation has been authorized to fix their remuneration; three, Bylaw #3 resolution, as more particularly set forth on Page 14 of the Management Information Circular has been approved by the requisite majority; four, the advisory resolution on executive compensation as more particularly set forth on Page 14 of the Management Information Circular has been approved by a majority; and five, finally, the rights plan resolution, as more particularly set forth on Page 18 of the Management Information Circular has been approved by the requisite majority. I direct that the results of the poll be included with the minutes of this meeting, and the final results of the voting will be announced in a press release in accordance with the policies of the Toronto Stock Exchange and the New York Stock Exchange and filed on EDGAR and SEDAR. Ladies and gentlemen, that concludes the formal business brought before this meeting. As there is no further business, I declare that the formal part of the meeting is to be concluded. Now it is time for the management presentations. Before the presentations begin, I would ask that Dave Galison provides a caution with respect to forward-looking information.

Please note that our remarks today are accompanied by a slide deck, which can be viewed via our webcast and is also available at atsautomation.com. We caution that the statements made in our oral and visual presentations may contain forward-looking information and our cautionary statement regarding such information including the material factors that could cause actual results to differ materially from the statements and the material factors or assumptions applied in making the statements are detailed on Slide 10. Slide 11 speaks to the use of non-IFRS measures, which may refer to in our oral and visual presentation today, non-IFRS measures, such as organic revenue, adjusted earnings from operations, order bookings, order backlog, adjusted EBITDA and free cash flow do not have any standardized meanings under IFRS and are intended to provide information to our shareholders and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Please note, all figures referenced today are in Canadian dollars, unless otherwise noted. We will now view a short video and then Andrew will deliver his report. [Presentation]

Good morning, everyone, and thank you for participating in this virtual meeting. Thank you also to David McAusland for his remarks and the ongoing dedication, alignment and support that he and our board members provide to ATS. In fiscal 2023, ATS drove profitable growth. and achieved the highest bookings and revenues in company history. We also reported record adjusted earnings for the fiscal year even as supply chain constraints and inflation challenged our business. Our results reflect strong execution across our strategic markets and our team's application of the ATS business model or ABM, to drive continuous improvement throughout the business. Our U.S. IPO and New York Stock Exchange listing this spring are milestones for ATS reflect our plan to increase liquidity in our shares and add flexibility for M&A. This morning, I will update you on some of our achievements and speak to our go-forward strategy, including capital deployment. ATS today is a global company with over 6,500 employees, serving in more than 20 countries. During fiscal 2023, our teams completed 3 acquisitions, evolve the ABM and demonstrated their ability to drive innovation and industry-leading solutions and services for our customers. As our Chairman noted in his opening remarks, our recent U.S. IPO and New York Stock Exchange listing are milestones in our journey to create value. In fiscal '23, ATS continued to deliver. Order bookings for the fiscal year were a record $3.3 billion, up 33% from fiscal 2022. We also generated a record $2.6 billion of revenue up 18% over the prior year, including 9% from organic growth. Our adjusted EBITDA margin for the year was 15.6%. And we ended the year with an order backlog of over $2.2 billion, setting us up for continued success in fiscal '24. We achieved these results while remaining focused on building our culture of continuous improvement, anchoring to our mission, creating solutions that positively impact lives around the world. Across our company, our teams continuously demonstrated their commitment to this purpose and to our customers, shareholders and each other. I'm very proud to be part of ATS' continued success and growth. Through our build, grow and expand strategy, ATS demonstrates a disciplined and deliberate focus on high-growth markets with low cyclicality. We invest to expand our presence, products and services in these markets, both organically and through acquisitions. In doing so, we strive to offer our customers a full custom automation experience from design to aftermarket service and sales. We favor regulated spaces, such as life sciences, transportation, food and beverage and energy. In fiscal 2023, these markets made up over 90% of our business with a growing presence in food and beverage, driven, in particular, by the acquisition of the CFT group of companies in late fiscal 2021. Regulated markets are technology-intensive, require complex processes and have a high consequence of failure where quality is critical. We choose to compete in markets with strong secular trends where our differentiated solutions and capabilities are highly strategic to our customers. These barriers to entry create lasting ties between customers and ATS. Concentrating on these markets enables us to grow revenue, expand margins and leverage our assets and intellectual property. ATS has strategically positioned itself to focus on markets with favorable tailwinds and attractive long-term secular trends, including the need to cope the impacts of wage and cost inflation, aging workers and the resulting loss of skilled talents, derisking, manufacturing and supply chains. Meet ever-increasing demands for safety and reliability, embrace increasing complex automation ecosystems and support our customers as their markets evolve. As we drive our strategy ahead, a clear market focus remains essential, and we will continue to allocate capital with discipline as we build our existing portfolio and direct our innovation and acquisition efforts. On innovation, teams across ATS are designing and launching new technologies that differentiate and diversify our automation portfolio and offerings. Today, our global teams are working on next-generation ideas in areas including energy consumption reduction, linear motion synergies, fill finish application digitization and process optimization and much more. On M&A, we use specific and consistent criteria to evaluate acquisitions including a detailed review of the market, the strategic value of the target, operational fit, including how we will integrate and operate the target, synergistic opportunities and how quickly we can implement the ATS business model. And finally, the financial return, including return on invested capital, EBITDA growth potential, reoccurring revenues and EPS accretion. Through fiscal 2023 and to date in 2024, we continue to bolster our digital and services offerings through acquisition to add value. Turning to the ABM. The ATS business model is now in its sixth year and links all parts of our decentralized business. Our ABM brings our people together to solve problems and drive continuous improvement. During the year, we completed carefully orchestrated ABM events across all businesses to improve our value drivers. Our ABM playbook focuses on our 3 main pillars of people, process and then performance. Our 8 value drivers stem from these 3 pillars. Our playbook allows us to analyze challenges and develop solutions that will ultimately drive performance and growth. This process was key to ATS' success in 2023 within a challenging economic environment. Over the past year, we have seen great examples of ABM culture taking hold in our newer divisions, leading to cost savings and margin improvements. In summary, ATS continues to set itself apart as a leading global automation company. With over 40-plus years of experience, great customers and a strong team, ATS is well positioned to continue to evolve and expand its offerings and reach. In all market conditions, we deploy our technology and automation capabilities to transform, streamline and optimize our customers' manufacturing operations. By doing so, we enable our customers to bring their products to market faster and more cost effectively. Our goal is to continue to operate in attractive markets with favorable long-term dynamics. We demonstrated our execution on this goal in fiscal '23, highlighted by our growth in the EV market space and our continued success in life sciences as well as food and beverage, consumer and energy markets. We are pleased with record fiscal '23 performance and progress. It demonstrated ability to drive results and our investor confidence in our strategy, allowed us to successfully complete our U.S. IPO and New York Stock Exchange listing. Record order backlog gives us a strong base to start fiscal '24 as we build our funnel. We expect there will be ongoing macro challenges. However, operational execution with the ABM as our playbook, along with our choice of strategic end markets remain key to our success moving forward as we build the best ATS. Now I will turn the call over to Ryan. Ryan, over to you.

Thank you, Andrew, and good morning, fellow shareholders. I'm pleased to have this opportunity to speak to you about the company's performance. We use 8 value drivers to measure our global decentralized businesses. The first 4 are how we assess our financial performance, bookings, revenues, EBIT margin and working capital. Next 2 are focused on our customers by tracking on-time delivery and quality. And the last 2 are focused on our people by measuring internal fill rate and turnover. Every ATS business is accountable to delivering in each of these areas. Looking at results against our 4 financial value drivers. I'll start with order bookings. Growth over the past 5 years averaged 22.5% on a compound annual basis. Fiscal 2023 order bookings were $3.3 billion, up $800 million compared to the prior year. Organic growth in bookings was approximately 25% in fiscal '23, while acquired companies drove 7% growth. Moving to revenues on a 5-year compound annual basis, revenue has grown at 18.2%, with an average growth rate of 8.6%, excluding the impact of acquisitions. Over this period, application of the ABM has matured across the organization including at acquired businesses. Fiscal 2023 revenues were $2.6 billion, an increase of 18.1% year-over-year, with organic revenues and revenues from acquired companies contributing approximately 9% each to year-over-year growth. On profitability, adjusted EBITDA has grown 23.9% on a 5-year compound annual basis on execution of our growth and long-term margin expansion plans. Adjusted EBITDA margins in fiscal '23 reflected the economic environment, including supply chain cost inflation. lead time increases and competitive labor markets. Our resilient teams responded to address these challenges and offset their impact, particularly through the use of ABM and supply chain savings levers. Beyond today's challenges, we are committed to driving ongoing improvement by growing our higher-margin aftersales service business, maximizing global supply chain management, increasing the use of standardized platforms and technologies, growing revenues while leveraging our current cost structure and continuous improvement driven by the ABM. We typically invest in CapEx for the business at a rate of 2% to 3% of annual revenues. In fiscal '23, total investments in CapEx and intangible assets were $80.3 million as we added capacity to support growth and continue to invest in innovation. For fiscal '24, our investment is expected to be in the $80 million to $100 million range with flexibility to respond to changes in the environment built into our plans. Noncash working capital is our fourth value driver with a goal of keeping investment at less than 15% of revenues. We ended fiscal '23 with working capital as a percentage of revenue at 10.1%. This percentage can vary based on the timing of milestone payments for large EV programs. Turning to our capital structure. We ended fiscal '23 with strong liquidity, which was further enhanced through our U.S. IPO. Net proceeds of our recent IPO were initially used to partially repay amounts outstanding on our revolving senior secured credit facility. That said, our objective is to deploy the proceeds primarily for strategic opportunities, including acquisitions as well as working capital and other organic growth initiatives. Consistent with ATS' strategy, our aim with all capital deployment is to create sustainable, long-term shareholder value. In fiscal '23, we generated cash from operations of $128 million down from $216 million in fiscal '22, driven by changes in noncash working capital. Free cash flow in fiscal '23 was $48 million. From a leverage standpoint, our net debt to adjusted EBITDA ratio was 2.7:1 at year-end, within our target range of 2 to 3x. At the end of Q1 fiscal '24, this ratio was 2.0:1 leaving us in a strong position to pursue growth, including through M&A, should the right opportunity arise. We're focused on maintaining our healthy balance sheet while simultaneously supporting flexibility in our financing structure in support of our growth strategies. For further information on our financial performance, I encourage you to review our fiscal 2023 annual report and our Q1 fiscal '24 update available on the Investor Relations section of our website for more details. In our Q1 report, you will note that our backlog at the end of the quarter was over $2 billion, which provides us with a solid base of business for the balance of this fiscal year. In summary, fiscal '23 was a successful year, particularly in the context of supply chain and inflation challenges. Our M&A funnel is healthy, our cultivation activities are ongoing, and our recent equity offering and New York Stock Exchange listing give us the balance sheet and the financial capacity to move quickly should a potential opportunity arise. Our teams are driving innovation with disciplined execution underpinned by the ABM. We look forward to continuing these efforts across our decentralized business in the diversified strategic end markets we serve to drive and deliver value. Now I will turn the meeting back to our Chairman. David?

Thank you, Andrew. Thank you, Ryan. Now it's time to hear from our shareholders. As explained at the beginning of the meeting, any shareholders, proxy holders or guests who would like to ask a question can use the instant messaging feature of the virtual interface to do so. We will answer as many questions as time permits. A reminder, when asking your question, please state your name, the entity you represent, if any, and confirm you are a shareholder, duly appointed proxyholder or a guest. Please limit your questions to topics relating to today's subject matter and keep your questions short and to the point. For each question we answer, we will summarize the question and read out loud the name of the person who asked the question, and if applicable, the entity such person represents. We would like to remind you that the questions which were already answered or that are redundant or repetitive will not be answered. Moderator. Do we have any questions so far?

There are no questions at this time.

So we will give attendees another couple of minutes to type in questions, if any. If there are no question, that's probably a pretty good sign. Everything is clear. Everybody is happy, but we'll wait to see if there's anything else. So I'll just pause. So clearly, there are no further questions, and I take that as meaning that everybody found the meeting completely clear, and that's a great sign. So we will now conclude the question-and-answer period. And that concludes the Annual and Special Meeting of Shareholders of ATS. I will sign off by saying thank you very much for participating and remind you that our door is always open for shareholder engagement during the year. Thank you again. Have a great day. Goodbye for now.