Casino, Guichard-Perrachon S.A. (CO) Earnings Call Transcript & Summary

Welcome to the 2024 Half Year Results Conference Call. I now hand over to Mr. Philippe Palazzi, Chief Executive Officer; and Ms. Angélique Cristofari, Chief Financial Officer of Casino Group. Please go ahead.

Very good morning, everyone, and welcome to the presentation of our first half 2024 results. I'm Philippe Palazzi, CEO of Casino Group. Joining me today is our CFO, Angélique Cristofari. As the formal for the head of the group, I wanted to talk today about the challenges that we have been left for us and what action we are and will take to overcome them. Angélique will then take us through the numbers, and I will close with some final remarks before we take your questions. The first half of 2024 has been challenging. Our financial results are still impacted by legacy challenges, but we'll improve upon the satisfactory performance as we move forward. In fact, we have already made significant progresses. We are not far off completing our comprehensive and realistic assessment of the group's fundamental financials, commercial and operational situations that we have inherited. But it has not stopped us from acting decisively where we can. Our restructuring projects are well underway, and we have launched a preform commercial transformation in order to improve our financial performance. The new Casino is a group of proximity brands with proximity being the common DNA of our banners. This proximity is geographical as we have a network of exceptional and unique locations, including Cdiscount, which is always within 50 centimeters of you through your mobile phone, representing another form of proximity. So this gives us several competitive advantages to help drive our recovery. First, we have a powerful brand with a clear and impactful positioning alongside well identified private labels. Second, we have a unique geographical presence with significant market share in city centers like Paris, and high-quality location across urban and rural areas. In fact, 42 million people in France live near one of our stores. Third, we have a highly skilled committed and loyal employees dedicated to the group. And finally, we have extensive experience in franchise, management and expansion, which now represents a significant portion of the new Casino stores. Our goal is to simply be the best of proximity. Obviously, this transformation did not happen overnight, but the road map is clear. First, we need to restructure the group, then consolidate our positions and finally develop the business. In the very short term, the urgencies to finalize the restructuring already underway. A significant step has been achieved through financial restructuring, debt has been significantly reduced and equity has been injected. It is also imperative to quickly improve our accounts and review our cash management to ensure the group sustainability. To finalize the restructuring, we are focusing on 3 key areas: one, sealing hypermarket and supermarket assets to cut losses and keep the group afloat. We have already sold or reached agreement to sell over 400 stores. We still have about 30 that will ever sell or close by the end of the year. Two, we are adapting our logistics network to the new perimeter, preserving the integrity of our store delivery chain. In short, we need to take our delivery capacity to HM/SM that we are selling, but make sure that deliveries to our remaining network continue to function smoothly. The last one, we inherited 4 operational and corporate centers. We are reorganizing them to generate synergy and implement more cost-efficient operation. We have already put in place a redundancy plan at [ Centizen ] headquarter and are currently looking for the saving plans that we will roll out in the second half of the year. Before handing over to Angélique, this is the last but not the least of our topic, our commitment to environmental, social and governance principle remains strong, and it is recognized in our industry. First, in terms of environment and responsibility, we are actively combating climate change. We have renewed our ISO 50001 certification, which underscore our ongoing efforts to improve energy efficiency across our operations. Second, we are promoting more responsible trade practices. All Casino, Franprix and Monoprix projects are now rated with a Nutri-Score, helping consumers make healthier choices. Third, we act as a responsible employer. Our dedication to this principle is reflected in the renewal of our Top Employer 2024 certification, acknowledging the quality of our social practices. Additionally, we are committed to supporting the unprivileged. Monoprix and Franprix have launched roundup campaign at checkout to support women in difficulty in partnership with organizations like Les Restos du cœur. We are so organized in-store food drive to help those in need. We have achieved a 57% reduction in CO2 emissions since 2015, demonstrating our significant progress in reducing our environmental footprint. So I will now hand this to Angélique, who will take through the numbers. Angélique, over to you.

Hello to all, and I'm very glad to have this first call with you after 4 months with the new Casino Excom and with Philippe in the driver seat. Let me first remind you that the scope of consultation for 2024 only reflects 62% of last year net sales for France focusing on ongoing activities that are expected to have superior profit and cash flow profiles. Our consolidation perimeter now includes our core convenience brands: Monoprix, Franprix and Casino convenience stores. Cdiscount is our e-commerce activity. We are in the process of finalizing the disposal of both of our hypermarket and supermarket stores. We are also closing a profitable convenience stores and converting integrated and into franchise stores. Our intention is to operate a business of profitable stores for both franchisees and the Casino Group. In this context, expansion will be run in a controlled manner. Net sales for the first half of 2024 totaled EUR 4.2 billion, down 3.5% on a like-for-like basis. This decline is primarily due to the planned reduction in direct sales of discounts, which show an 18.9% growth. Our convenience banners showed resilience with a slight decline of 0.3% like-for-like. These figures underscore our shift towards more profitable and stable segments. In terms of EBITDA, our adjusted EBITDA was EUR 255 million, representing a year-on-year decline of EUR 79 million. This decrease is mainly attributed to last year one-offs to operational expenditure inflation, to a less favorable margin rate and to ongoing legacy headquarters costs related to our former hypermarkets and supermarket businesses. EBITDA after lease payments stood at EUR 26 million, a decrease of EUR 86 million compared to previous year. To counter our challenges applying enhancements and cost efficiency measures are being worked at though therefore are expected to stabilize and improve EBITDA performance moving forward. Despite operating in a no-growth market where inflation came down, our performance has been resilient. Monoprix and Naturalia showed positive growth with net sales reaching EUR 2.15 billion, up 0.8% like-for-like. E-commerce at Monoprix grew by 15%. Franprix maintained a steady performance as well, with net sales of EUR 815 million, up 0.4% like-for-like despite adverse weather in June, which altered the like-for-like total performance, which at the end of May was plus 1.2%. Casino proximity sales was EUR 700 million, down 3.8% like-for-like, hit by the hypermarket and supermarket disposals and poor weather conditions. Cdiscount net sales were EUR 468 million, reflecting an 18.9% decline due to the planned reduction in direct sales and promotion of its marketplace activity, which gross market value showed positive evolution in June and July. Our adjusted EBITDA for the first half of 2024 was $255 million, a decline of EUR 79 million year-on-year. The adjusted after lease payments EBITDA was EUR 26 million, down EUR 86 million year-on-year. These results reflect first, a EUR 20 million of positive one-off in last year reported figures. Second, inflation in various costs amongst which are rent increases as well as EUR 25 million of hypermarket and supermarket headquarter costs. Such costs at quarter levels are inherited from the hypermarket and supermarket businesses. They take harder into account the consequences of the redundancy plan projects. Our value creation plan will deal with this and restore EBITDA in the coming days. Our financial results have been significantly impacted by noncash items. These include EUR 422 million of Franprix goodwill depreciation as well as a fair value gain on converted and reinstated debt amounting to EUR 3.5 billion. We have also expensed EUR 81 million financial restructuring costs this year. As regards the Franprix goodwill depreciation, it derives from 2 factors: First, the actual performance of Franprix, which is below what had been considered in the past. We had to take into account a restated recurring EBITDA performance of Franprix. Second is our assessment of the EBITDA target margin of Franprix and the CapEx to be invested in. As a result, we have achieved a net profit from continuing operations of EUR 2.5 billion in the first half of 2024 compared to a loss of EUR 1 billion in the same period last year. When you back out the noncash fair value gain and other operating income and expense, the underlying net loss amounts to minus EUR 349 million, a substantial reduction compared to last year. In half year 2024, we reported a free cash flow deficit of EUR 413 million, including deferred tax and social charge payments from our financial restructuring. We also faced challenges like inflation and costs, margin mix adjustments and franchise payable write-offs plus the comparison is made difficult as the amount last year included EUR 20 million of one-offs that did not repeat this year. Last, operational financial capacity was EUR 488 million last year. Excluding this and excluding the the digital payments of tax and social charges. Free cash flow was minus EUR 260 million last year versus minus EUR 248 million this year. Now starting from the free cash flow of the previous slide. Our Net debt position was substantially improved compared to the same period last year for 4 main reasons. By order of materiality, first, the financial restructuring on a net debt basis reduced gross debt by EUR 5 billion. This includes the capital increase of EUR 1.2 billion and debt cancellation for EUR 3.9 million. Second, asset sales of our LatAm and in France, primarily the sale of our Casino hypermarkets and supermarkets raised EUR 1.2 billion in total. Third, net interest expense declined by EUR 71 million, thanks to a smaller gross debt position over the period. And finally, the cash burn coming out from the HM and supermarket was smaller size to their sale. I would point out that this particular source of cash burn will be much lower in the second half of the year. As a result, net financial debt was reduced by EUR 5.1 billion from EUR 6.2 billion last year to EUR 1 billion at the end of June. On the next slide, we see the composition of our debt. We can see that the RCF has been fully repaid, thanks to asset sales. Other debt was down by EUR 211 million, primarily due to repayment of bank overdrafts and increase in segregated account due to the sale of hypermarkets and supermarkets. And I would like to remind you that we reached a deal to sell EUR 200 million of real estate assets that secure the Quatrim loan. When this transaction closes, Quatrim debt will go down by a similar amount. On this slide, we can see our debt maturity profile. Our next material majority would be in March 26, in relation to our various RCF, if we decide not to decide our options to extend out to March '27. Quatrim is due in January '27, and this instrument has also an extension option out to January '28. The reinstated term loan B comes due in March 2027, so we are pretty comfortable for the coming quarters. Now let's move to our liquidity position at the end of June, which stands at EUR 1.79 billion. It includes EUR 0.72 billion available cash at Casino Finance, which is the cash-pooling entity of the French business, EUR 0.71 billion in fully undrawn reinstated Monoprix RCF and EUR 0.35 billion in other undrawn and immediately available revolving credit facilities, mainly related to Monoprix exploitation RCF, Monoprix Holding bilateral credit lines and overdrafts. Just as a reminder, under the new loan documentation, available cash is defined as cash and cash equivalents, excluding the float and any trapped cash. Now moving on to my last slide, post restructuring. We have new financial covenants with the first test date being set up for September 2025 following an 18-month early day period. The financial covenants under the new financing agreements then include a minimum liquidity, which must at least reached EUR 100 million on the last day of each month. At the end of each quarter, the liquidity forecast for each month of the subsequent quarter must also be at least at a minimum of EUR 100 million. And the total net leverage ratio at the end of each quarter must be below the specified threshold. As of June 2024, this ratio was 5.41x based on the EUR 230 million Pro Forma EBITDA and EUR 1.2 billion total net debt. Please note that the ceiling of the net financial debt covenant out of adjusted EBITDA, covenant ratio is set at 8.34x for September 2025. So that concludes my presentation. And now I turn the floor back to Philippe for his closing remarks.

Thank you, Angélique. In conclusion, the New Casino is currently on the road to recover it. We have made significant progress with our restructuring projects, which are well underway. This includes the rationalization of our store base, the sale of hypermarkets and supermarkets and the agreement to sell Codim, encompassing 18 outlets in Corsica. We have also opened several renovated Monoprix stores, showcasing our commitment to modernizing our retail spaces. Initial commercial transformation has been successfully launched with early signs of positive impact. Our ongoing and realistic assessment of the group financial, commercial and operational situation ensures that we stay grounded and focused on achievable goals. Looking ahead, the group value creation plan will be unveiled at the end of the year. Led by our new management team, we are conducting a thorough financial, commercial and operational review to pave the way for this plan. Our objective is to create both economic and social value for the group. We remain committed to our strategic goals, and we continue to work diligently to achieve them. our dedication and hard work are crucial as we navigate this transformation together. But being focused and motivated, we will bring and build a stronger, more resilient New Casino. Thank you for your attention. Angélique and I will be pleased to take your questions. Operator?

[Operator Instructions] The first question is from Clement Genelot of Bryan Garnier.

If I may, I have 4 questions. So the first one is on the convenience. So could you explain what is going on at Franprix and plus you're all over convenience [indiscernible]. If I might, both margins were heavily grown in late '23 and Q1 of this year and also Q2 for Franprix, so have you reviewed your franchise contracts there and why? My second question is on the current trading in Paris with the start of the Olympics. Have you seen any uptick in the sales or really not? My third question is about the net asset sales. Is it fair to assume that your net assets will decrease in H2 [indiscernible] in H1 with the last hypermarkets and supermarkets going to be transferred in H2? And also with the downsizing all of the HQ in H2, which might imply some restructuring costs? And my final question is on the prices. The prices are not mentioned in your initial commercial initiatives launched that written on Slide 22. So does it mean that your prices will be a topic for next year and not this year?

Yes. Thank you very much for your question. I will answer the two first questions as it was quite difficult to hear you for the question #3, and I will ask you afterwards if you can make it again. Sorry for it. Yes, talking about margin and talking about the franchisee and specifically, to Franprix. First of all, I would like to mention that even in the current situation of the company, as you have seen the result today. There is no franchisee who have explicitly expressed the willingness to leave our network, which is a first point to mention. And as well when looking at the numbers in details, we are not facing any retention issues or higher and normal attrition we have from the past. And even I must say that quite to the contrary, we are renewing long-term contracts with our partners. You have seen that we have signed or renewed our contract with Sherpa cooperative and as well with a TotalEnergies gas station, which is more than 1,000 petrol stations. The short-term decrease in the number of franchisee stores and in particular, with Franprix links to the pruning of our store portfolio. As the previous year, we had, let's say, from the position, we have quite a lot of excessive and unprofitable store openings and we are returning to a healthier state of operation being demanding in the selection of the franchisee and as well being demanding in the selection of the store locations. There is no forced margin reset whatsoever, to answer your question. The decision is to lower a limited selection of products is intended to increase the competitiveness of our partners, and relaunch their commercial dynamics. We have the work with being very much customer-driven by doing this. I mean we are working with -- doing workshop with our franchisee, to define with them price positioning, to define with them assortment, to define with them logistics. That means it's really a way of approaching them and working with them to make sure that we answer their needs and their demand. Your second question was related to the Olympic game. But before this, I would like to mention something which is linked to the margin as well. But I'm, let's say, explaining a bit your question. One very key point as well is the purchasing condition in our business and the purchasing alliance. As you know, at the beginning of 2024, we had to adapt our alliance framework to account for two effects. Firstly, to closer the tie between Intermarché and Auchan in several areas. And secondly, to sale of hypermarket and supermarket, which has significantly reduced our size in the food market. That means in practice that before expanding our agreement with Intermarché to include Auchan, which is a rather positive because the network stays within ourselves somehow. And in the specific case of food, I'm talking specifically now for the national brands, we also changed the nature of our partnership, acknowledging on our reduced size, we have negotiated a mechanism close to affiliation, and this is very important, which allow us for a fee to gradually align our purchasing condition with those of Intermarché. This new agreement have already been reviewed by the I&C Work Council, which is our purchasing branch and they can be implemented at the end of August upon the expiration of the analysis period by the competition authority, which is a so-called background deadline. Paradoxically, while the changes in the group scope should have weaknesses in purchasing the integration of Auchan and the affiliation mechanism, we strengthened our upstream competitiveness. And this is helping us to be even more solid on our feet in the coming months and year. Your second question was on the Olympics. I will not comment on the performance of gold medal of France. But, as you know, we have a good store footprint in Paris. And even if it's true that we are -- even if we are the market leader in Paris, I realize if you could, at this moment in time to estimate the impact of summer Olympics, we will have on our sales. Initially, there is a significant increase of Olympic-related to this expected. But I mean now you really see it since this weekend, while you are working down in Paris. But this is also expected to be at least somewhat offset by the typical summer tourist who decide not to travel to Paris this year. And furthermore, many Parisians have left Paris earlier this summer not to stay during the Olympics. As of now or let's say, before last weekend, the influx does not appear to have materialized with hotel occupancy rate down to 30% compared to the same period. But I must say that since this weekend, since Saturday, we have seen that the store performance, the last 4 days were more than double digit growth in Monoprix and Franprix downtown Paris, which is quite, let's say, promising for this now. Let's see how this will turn. And if I may ask you to repeat your third question, and fourth as well would be great.

Sure. So on Slide 16, you said that we had discontinued cash flows that includes the hypermarket supermarket cash burn, is close to EUR 500 million. So I was just wondering what kind of amount we would have to expect for H2 because if I might all of them are still not transfer to Auchan or also Intermarché. And I think we should also assume some kind of restructuring costs for the downsizing of this [indiscernible]. And just about my last question that was regarding prices. Because on Slide 22, you mentioned some initial actions. But if I might, the prices are not including in it, so our adjustment is showing if the group is already lacking some very -- some actions on the prices or that we have a topic for next year?

Okay. So as regards to the cash burn from the remaining hypermarkets and supermarkets, you must consider that the number of shops we still have to close will be closed on September 30th of this year. So they remain only a quarter of cash gain. And there were more than 2/3 of shops that were sold at the end of the date of July 1st. So the last number -- the remaining shops to be closed is very few of them and for only one quarter. And as regards to your question on the headquarters, inherited like in every cost that we have, I will not provide you with the expected forecast figures since we derived from many underlying effects and actions that we have to monitor, but we are now working on it.

Yes. Thank you, Angélique. To your last question, my understanding is specifically your question was leading on pricing and a bit of pricing strategy. And what we have implemented the past 4 months that we are in charge of the organization besides the initial commercial transformation that you can see on this slide. That means as price is concerned for Monoprix and we are talking about end consumer pricing. We have focused on the private label, and we have put in place the top 100 essentials item to reposition it. That means this is the most bought item by our customers. The offering is brand private label Monorprix on this one, and we see a great interest to our customers from this part of the range that is positioning and as well as helping loyalty because they are buying our brand and when we are pushing our brand is as -- pushing the brand of our buyers. That means this was one such important topic. The second topic to help our consumer in terms of pricing is the launch of the program, which you call Carte M, which is a loyalty program that you can win up to EUR 80 per month or saving EUR 8 per month. And since we have launched it, we see a quite good response for our consumer in this program. I think it was a long time due to the market that Monoprix was launching such a thing. And I say that this is issuing a slide at the end of the tunnel for that one. As far as the B2B part of our business because this is quite important that everyone is understanding that we are in a B2B business, just to give you a number of 76% of our stores in Franprix, our franchisee store. And this is important. And when you talk about casino and all the Casino brand, 92% of our stores are franchises. Let me move clearly in the B2B business. That is the focus we are putting in terms of assortment, services to franchisee but as well pricing. And this is what we call system session pricing or wholesale price, but we are giving to our franchisee is key in our strategy. That means already we have selected, and this we are done in co-working condition with our franchisee. We have dropped the price of hundreds of articles. They were key in the eyes of our franchisee for 2 reasons. First 1 to help them to be more profitable because their success is our success. And second topic to reposition potentially their selling price according to the competition landscape and the competition stores that are around themselves. And this was very well appreciated. We had a very good feedback from this exercise. As I said, we went line by line with our franchisee to select each and every single items where to work. And this will repeat such works regularly with them. And I think this is the right way to answer their needs and their demand. That means, with my words, I want to tell you that we are in a B2B business as a Casino Group or the new casino is very much in retail, but in a B2B business. And the second topic on pricing, and maybe it's worth to talk about it. It's a big part of our business and many when you are in city or city centers, or mainly in Paris, in metropolitan place, we are not only retail, but you come and you shop to fill your fridge and cupboard. That as well, you come because we have an offer that is like being the snacking and takeaway food. I think this is where in business we are in. And I think this business is highly relative margin, and this is a part of the business we want to develop. This morning, I went to maybe in U.K., you know as well, which is chain is called Pret, and I bought latte and I paid EUR 6. And I said, this is quite high margin and I think this is a direction that our store downtown Paris, having offices nearby or tourists, like we have for the Olympic games, to enter in our store. They buy the sandwich and drink their coffee. And this is the thing we want to develop as well. We have salad bars in our stores. I think all this is contributing to a price perceptions and services we want to have in our business. That means my thinking is that we are not just a pure retailer like we have in a suburb area of a big city or like the big hypers or the big supermarket chain, but we are very much a retailer that as well is offering takeaway restaurant type of offer as well as normal retail. But I think this is quite a competitive advantage we have and adding to Monoprix our textile positioning and well-known brand as well, I think we have a very point of differentiation compared to any competition. And I think that our franchisee as well, they are quite satisfied to be belonging to the Groupe Casino. I would like to mention maybe something about this is that all the contracts we have with our franchisee in Casino, Monoprix and Franprix are certified and validated by the French Federation of Franchise and which is not the case of our main competitors.

The next question is from Nicolas Champ of Barclays.

I have 4 questions as well. The first one is about the CapEx. So you reported a net CapEx of EUR 159 million in H1. What is the gross figure? And going forward, could you please guide on the CapEx level for the full year? Should we extrapolate this number. And yes, this is the normative CapEx level for the new perimeter. The second question is about working capital. You had an improvement in H1. Obviously, still a working capital outflow given the society. But here again, could you help us and guide regarding on the working capital variation for the full year? Could we see maybe a positive working capital for this year? The third one is about the impairment charge, which has been quite significant in H1 related to a goodwill impairment. Are you down with the legacy at this level? Or should we expect maybe further impairment charges in the second half? And fourth and last question. Is it more personal one, I mean you are now in charge since 6 months. May I ask you what are your main positive and negative surprise now that you manage the business, I would say, internally after 6 months?

Okay. Thank you for your 4 questions. As regards the gross figures for CapEx at the end of June, if it amounts to EUR 164 million versus last year, where it amounted to EUR [ 172 million ]. And to provide you some more insight that the CapEx level will remain, as you mentioned, almost steady from previous period presently. We are not decided material change. Our focus is to concentrate on CapEx that provides short-term profits and return on investments. That's the way we focus and we work with our subsidiaries presented. In terms of the impairment test, as you referred to, yes, the legacy is there as well, but I consider that presently, we have done the job completely. The review was dealing with all the subsidiaries of course. And I would also point out that the WACC we used in our model has not been modified at the end of the -- for this impairment test we did. And it incorporates quite an important risk premium since it was the same last year, and we didn't change this amount of risk premium in our WACC. So we have quite a fairly high level of cushion on EBITDA in the non [indiscernible], which is used for our impairments. So I would say that, yes, the job is done by now. Then, the future will be our responsibility to keep you updated of this, but the work was well done and in a quite detailed and focused manner. As regards to working cap, no specific comment there. We are -- it will be more beneficial should the business expand. And we are in a very close monitoring the payment delay and doing satisfactory payment to our suppliers. And of course, you will find in the future reporting the fact that the hypermarkets and supermarkets working cap will disappear from the yearly and quarterly positions of working cap, but this is just a scope impact and nothing to do with our payment delays and volume of business. And I leave the fourth question to Philippe.

Yes. Thank you, Angélique. Yes. For the fourth question, yes, I would like to precise something that even if it's in 6 months, we are in the organization only since the 4 months, the end of March, March 27, we took over on this one. To answer your question, what are the positive and negative since we took over. I must say that what I'm really puzzled by is the teammate. I mean, you see the dedication of the people. I mean, despite the difficulty we are facing, how committed and how working they are. This is really impressive. Even if I spent 27 years in the retail, I must say that I have never seen this ever in my life. I mean, the level of resilience is really outstanding and really impressive. The second positive thing is the brands we are operating. And I think this is quite key. When the competition are going in the proximity business we format called Express City, whatever you call it, which we are talking about size. In the Casino Group, we are talking about brands. And you know that shopping is very much linked and is very much into the affinity you may have to a brand. That means the true advantage of Casino Group, and this will be part of our value creation plan in the future is the power of our brands. That means in the same street, you may find Naturalia, the Monoprix and as well as Franprix. That means we will be in a position to compete with ourselves and offering different, let's say, services to our clients. But I mean this is really something positive. Now not having any more HM/SM as well in our portfolio, the group is consistent, we are in proximity business. We are in convenience business. And this is focusing on this one. When everybody thinks that convenience of proximity business is a reduction of a hypermarket, I must say that this is totally wrong. Proximity business is totally different in terms of assortment, services, and this is where we will focus in our plan. And third, what I'm very positive about is a relation we have with our franchisee. I have spent a lot of time visiting them, talking to them regularly. And I must say that they are very much tied and attached to the brands. And sometimes it feels that they are close to be kind of an employee of our brands. And this gives me enthusiasm and positive for the future on that one. On the negative side, I must say that I did not find something specific more than we can expect in a situation like we are, that we knew was foreseen. There's a lot of potential. There's a lot of things to do to this organization. That means this gives us a lot of energy, and we are all positive, the management in place to turn around the business, and we will.

Ms. Cristofari, Mr. Palazzi, this was the last question. Back to you for any closing remarks.

Thank you very much for the attention and the question as well. I would like just to close on the final note which is that we are currently working on the value creation plan, and I'm insisting on this word, and you will never hear me talking about strategy, the three value creation plan. Because we want to create something that is very detailed and that is something very actionable for the future. And this is how we are setting up the future of the organization. And we will be -- by the end of the year or after Q3 result, we'll unveil our value creation plan officially, internally as well. And from that one after we will be on the change journey at full speed with the team. Thank you to all of you.