Edenred SE (EDEN) Earnings Call Transcript & Summary

Ladies and gentlemen, welcome to the Edenred Q1 2022 Revenue Conference Call. I will now hand over to Mr. Julien Tanguy, CFO. Sir, please go ahead.

Good morning, everybody. I hope you are doing well. I'm very pleased to be with you to share the presentation of the Q1 2022 revenue of Edenred. I propose we start with the executive summary on Page 2. It's an excellent start to the year for Edenred with continued strong momentum in Q1 after a record year in 2021. Operating revenue reached EUR 426 million, it's an increase of plus 17.3% as [Technical Difficulty]

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Okay. So I come back to the operating revenue. The operating revenue reached EUR 426 million, which is 17.3% increase as reported versus Q1 2021 and plus 15.3% increase like-for-like growth. And we posted a double-digit like-for-like revenue growth in all regions and in both main business lines. Other revenues increased by nearly 30% from EUR 10 million to EUR 13 million, benefiting from higher interest rates in some regions and from business volume growth. Edenred recorded a total revenue of EUR 439 million, up 17.6% as reported and up 15.7% like-for-like. And you can note that we see a positive currency impact in Q1. This performance demonstrates the unique value proposition of Edenred platform. Having disrupted its business model, Edenred continuously benefits from the platform advantage. Edenred broadens its value proposition by further extending its portfolio of solutions, Beyond Food and Beyond Fuel. Edenred improves constantly the user experience, capitalizing on its technology leadership and investments. Edenred maintains sustained commercial momentum, winning both iconic key accounts and SMEs. And sustainable development being embedded in its DNA, Edenred ESG leadership is well recognized. And Edenred harnesses the favorable macroeconomic environment with fair value increase, full price impact and higher interest rates. Thanks to this first quarter performance, we confirm Next Frontier strategic plan targets for 2022. Like-for-like operating revenue growth at a minimum of 8%, like-for-like annual EBITDA growth at a minimum of 10% and annual free cash flow EBITDA conversion rate at a minimum of 65%. So let's start by a focus on our Q1 2022 revenue, so I move to Page 4. So our operating revenue is up 17.3% in reported figures and plus 15.3% like-for-like. The impact from currency is positive at plus 2.5%. And this solid beginning to the year is due to high commercial dynamism with new iconic client wins such as Generali and Chubb and continuous penetration in SME markets. Product innovation is at the heart of our strategy to continue to extend our offer. We are extending Beyond Food offer to support the shift to new ways of working in Employee Benefits. We are developing Beyond Fuel services to be the one-stop shop for fleet managers, offering a large range of services making fleet management easier. Edenred is also here to support clients and users in an inflationary context. In Employee Benefits, as we bring solutions to protect and increase purchasing power of employees, our products are even more attractive for our clients and inflation leads to higher maximum face value. In Fleet & Mobility, our products drive more efficiency and improve the control on fleet cost in the context of higher fuel price. I move to Page 5. And as already explained, we delivered a strong growth in Employee Benefits and Fleet & Mobility. Employee Benefits business line accounts for 60% of the group's total operating revenue, and it's a plus 15.1% increase as reported figures and plus 14.2% in like-for-like. And Fleet & Mobility growth is plus 29.6% in reported figures and plus 24.3% in like-for-like. Fleet & Mobility now accounts for 27% of group's total revenue. And Complementary Solutions grew by 5% in reported figures. I remind you this business line includes Corporate Payment Services, Incentive & Rewards and Public Social Programs. In Corporate Payment, CSI delivered a solid double-digit growth like-for-like in Q1 2022 versus Q1 2021, driven by new contract wins and a steady improvement in volumes generated by clients in the media and hospitality segments. The growth posted by Complementary Solutions business line was impacted by a high basis of comparison as a result of the implementation in first quarter 2021 of specific earmarked fund programs from people hard hit by the health crisis, notably in the U.K. with the Department for Education program and in Romania with the [indiscernible] programs. I move to Page 6 to look at the distribution of our revenue per geography. So we delivered double-digit growth across all geographies. In Europe, revenue is up, plus 13.8% in reported figures and plus 13.4% like-for-like. In Latin America, revenue is up, plus 26.5% in reported figures and plus 16.5% in like-for-like. In Q1 2022, Latin America represents 29% of Edenred's total operating revenue. And the Rest of the World revenue is up by 14.3% in reported figures and plus 26% like-for-like. The gap between like-for-like and the reported figures is a consequence of Turkish lira devaluation. We note a well-balanced like-for-like growth between Europe and Latin America. So after those first figures, let's have a look to the Edenred platform and why we are delivering sustainable and profitable growth. I move to Page 7. So Edenred is benefiting from the advantage of being a truly unique global and powerful platform. Let me highlight 5 key advantages of Edenred platform. First, we are leveraging our assets to broaden our value proposition. We are expanding our portfolio of solutions, Beyond Fuel and Beyond Food, to foster cross-selling. Then Edenred is delivering an enriched omnichannel digital use. Thanks to API proprietary technology, we can connect easily with our partners, bringing a user experience, which is unique. Edenred is fully harnessing the scale effect, applying our go-to-market machine to deep yet still vastly under-penetrated markets. Edenred is a platform for good with strong ESG commitments and those commitments have been recognized by Standard & Poor's Global with a high rating. And Edenred is well positioned in a post-COVID era. We are facing opportunities arising with post-COVID trends. I move to Page 8 to illustrate our Beyond Food strategy and the extension of our multi-benefits offering beyond meal voucher. First, as described on the left part of the slide, we are offering flexibility to end users through digital multi-benefit solution providing access to various universes such as food, restaurants, home office, education, well-being and mobility. Our users have one single account with separated balances. These offers bring flexibility for both HR managers and users. And to illustrate that, we have picked 2 examples of multi-benefits solution, one in Brazil and one in the U.S.A. First, in Brazil, it's our ticket Super Flex solution, which is already in place at FedEx and Unilever. And in the U.S., the Children's Hospital of Los Angeles has chosen Edenred to provide 6 subsidies to its employees for meal and micromobility expenses. As said on the example, as shown on the right of the slide, the COVID crisis has accelerated some trends that were already existing before the crisis. Thanks to our solutions, we are supporting the shift to new ways of working. For example, we are supporting the implementation of working from home in France or in Mexico. We are providing a digital account, combined with our e-commerce platform, to buy office equipments and consumables. It's an easy and efficient way for HR to engage employees and ensure convenient working conditions at home. And we have also some examples of client wins over the last months, such as Colgate, Nielsen and Credit Agricole. On Page 9, I propose to zoom on the development of our value proposition for fleet managers whose name is Beyond Fuel. On a single platform, fleet managers can access to a full connected ecosystem, including maintenance, financial services and toll. Maintenance, thanks to our Brazilian platform, which is also rolled out in Mexico and Argentina. In Europe, we proposed financial services management, including VAT refunds, and this business is operated by EBV Finance. And regarding tolls and parking services, in Europe, UTA One is a single box allowing truckers to cross Europe and pay toll in 14 different countries. And in Mexico, for instance, we offer to our clients a dual toll to pay fuel and tolls. Our toll services have been enriched by the acquisition of Greenpass in Brazil. So Greenpass is providing a electronic toll collection tags to pay seamlessly at toll booths and parking in Brazil. It's 100% cloud-based platform, which is connected to toll operators and allows the transaction capture, the processing and the payments. Our ambition is to significantly grow the number of tags. To achieve our ambition, we are developing both cross-selling to Ticket Log's large client base and we are leveraging on Ticket Log's strong sales channels. Toll solutions are allowing us to further enhance Ticket Log data analytics platform, and this platform is GoHub. I move to Page 10 and to a new value proposition for electric vehicles. Transition to electric vehicle is a challenge for fleet managers, especially in Europe. And Edenred has signed a partnership with ChargePoint to facilitate smooth transition to EV. ChargePoint is a leading global EV charging network provider. Thanks to this partnership, we encourage and support the adoptions of EV in customer fleets. With ChargePoint, UTA Edenred integrates in its networks more than 240,000 public electric charge points across 32 European countries. We provide our clients with a fully integrated solution that combines electric vehicle charging solutions with UTA Edenred's proven energy network. After the broadening of our value proposition, I propose to see how we are leveraging our technology on Page 11. Our platform offers an enriched omnichannel digital user experience. We propose a large mobile payment experience with an access to 4 major mobile wallets: Edenred Pay, Apple Pay, Google Pay and Samsung Pay. The number of mobile transactions has been multiplied by 2 in Q1 2022 versus Q1 2021. We also offer in-app and online payment transactions. Our platform is connected to more than 200 partners in 23 countries and allow our users to pay their meal delivery order with a single click in the apps of our partners. The number of transactions managed by our platform has increased by more than 20% from Q1 2022 to Q1 -- versus Q1 2021. And finally, we propose a pay-at-table solution in France in partnership with sunday. This solution allow our users to pay their bill by flashing a QR code. So we've seen that Edenred is broadening its offer. Edenred is leveraging its technology. Now we are going to see how Edenred is also capitalizing on its go-to-market know-how. And I move to Page 12. So we won iconic clients during the first quarter, such as the works council of Google in France, Aon, Generali, Chubb and FEMSA, which is the distributor of Coca-Cola in Latin America. Then we are accelerating in SME as we are taking advantage of under-penetrated markets. The number of SME contracts signed in Q1 2022 grew strong double digits versus Q1 2021. And then we are leveraging also selective distribution partnerships such as Itau in Brazil, where we multiplied by 3 the number of contracts signed in Q1 2022 versus 2021. I move to Page 13. And our platform allows us to develop new sources of businesses, and we are also a platform for good as ESG is embedded in Edenred's DNA. S&P Global has recognized and awarded Edenred's ESG leadership with a rating of 79 out of 100. So Edenred is the seventh French-listed company to be rated by S&P, and we are 11 points above the average ranking worldwide. So this ranking demonstrates that Edenred has a unique role in improving working conditions of clients' employees. Our strategic planning is effective and our decision-making process supports CSR strategy. And we have a strong company culture to support Edenred's ESG ambition. To conclude the Q1 2022 highlights, I move to Page 14. Finally, we are seizing growth opportunities in a post-COVID era. We see 5 post-COVID drivers for business: a more remote working world; a world seeking more responsible behavior; the payment digitalization; a need for transparency, safety and control; and higher inflation. Thanks to its unique platform, Edenred is leveraging post-COVID trends. And as we've already seen, we are building relevant offers to be the everyday companion for people at work. With the virtual canteen, we give more flexibility to both clients and users. With 100% digital and mobile-first solutions, our products fit with newest trends. With greener consumption solutions, we foster more responsible behavior. With new solutions to promote and support the shift to electric vehicle, we are supporting our clients to move to a greener fleet. And with CSI in the U.S., we drive the digitalization of B2B payments. And in the context of higher inflation, our Employee Benefit products allow companies and governments to protect and increase the purchasing power of employees. And the maximum face value are increasing in several countries. It is the case in Germany, in Turkey, in Bulgaria in Poland and these are some examples. We also enhance efficiency and offer more control with our Fleet & Mobility Solutions, and our revenues are benefiting from higher fuel price. And finally, generating float, we are taking advantage from higher interest rates. So this is it for the highlights of the first quarter 2022. I propose to move to the Q1 2022 revenue more detailed presentation, and I move to Page 16 to look at our total revenue figures. In Q1 2022, we posted mid-teens growth in both reported and organic figures. Our total revenues stands at EUR 439 million, up 17.6% year-on-year as reported. The currency accounts for 2.4% in this growth. On the right side of the slide, the total revenue splitted between operating revenue and other revenue. So operating revenue is up 17.3% in reported figures and other revenue is up 28.9% in reported figures, too. I will come back to these figures in detail in a couple of minutes. I move to Page 17 for the operating revenue growth in Europe. So in Europe, our operating revenue came to EUR 270 million, up 13.8% reported and 13.4% like-for-like. Both France and Rest of Europe posted double-digit growth. In France, it's plus 10.3% in operating revenue versus Q1 2021. We got continued positive commercial momentum with new iconic key accounts and positive trend in SME market. We delivered a strong growth in Employee Benefits, supported by commercial success of the leading digital Ticket Restaurant offer and Beyond Food strategy with Ticket Mobilité and remote working platform. And we also posted sustained growth in Fleet & Mobility Solutions. In the Rest of Europe, it's plus 14.8% like-for-like growth versus Q1 last year. And our performance is solid in Employee Benefits and is driven by robust growth of Ticket Restaurant. We also delivered significant growth in Fleet & Mobility, thanks to the continued success of the penetration strategy and the Beyond Fuel offer. And we want to confirm that we have no exposure to Russia and nonmaterial exposure to Ukraine in the context of the crisis we know in those 2 countries. I move to Page 18 for Latin America operating revenue of Q1. So in Latin America, our performance is robust across the region and in line with the Q4 2021 trends. The reported growth reached 26.5% in reported figures and 16.5% in like-for-like. In Brazil, Employee Benefits growth is supported notably by the increasing contribution of the Itau Unibanco partnership. And we also have a strong performance in Fleet & Mobility Solutions with rapid growth of the maintenance and total solutions. So in Brazil, the growth for Q1 2022 is plus 16.5% compared to the first quarter last year. And in Hispanic Latin America, the growth in like-for-like is plus 16.6%, so quite the same compared to Brazil. The recovery in Employee Benefits is confirmed in the context of the return to normal health conditions. And the growth in Fleet & Mobility Solutions is sharp, particularly thanks to the successful rollout of Beyond Fuel solution meaning toll and maintenance. So after the operating revenue, we move to the other revenue on Page 19. So Q1 other revenue stands at EUR 13 million. It's EUR 3 million more compared to Q1 last year. And other revenue is boosted by a strong business momentum, positively impacting the float and a positive impact from higher rates outside the eurozone. So therefore, the like-for-like growth of other revenue is significant. It's plus 22.8% like-for-like in Latin America, thanks to highest rates, especially in Brazil. It's plus 39.1% in Europe, thanks to highest rates except in eurozone. So highest rates in the U.K., in Romania, in Czech Republic, for instance. And in the Rest of the World, it's plus 35.3% like-for-like, mainly driven by Turkey. And that's it for the numbers and the strong performance of the first quarter of the year. I now turn to the outlook, which is on Page 21. So Edenred is a disruptive leader generating sustainable and profitable growth. Since 2016, Edenred has been disrupting itself and consequently leading the transformation of its market, operating a global B2B2C digital, data-enriched platform true to its purpose, "Enrich connections. For good." Edenred connects 50 million end users with 2 million merchants via 900,000 companies leveraging technology. We've seen API or mobile payments, for instance, to create seamless omnichannel experiences. Edenred generates sustainable and profitable growth, expanding its solution range with Beyond Fuel and Beyond Food and benefiting from the platform advantage applied on under-penetrated markets. Edenred is benefiting from post-COVID trends, remote working, more responsible behavior and from increasing inflation. In this context, and I move to Page 21, we are reaffirming Next Frontier strategic plan targets for 2022. I remind you of those targets. First is like-for-like annual operating revenue growth of at least 8%, a like-for-like annual EBITDA growth of at least 10% and an annual free cash flow out of EBITDA conversion rate of at least 65%. So that's it for the presentation. And I confirm that the management of Edenred will meet you for our 2022 Capital Market Day on October 25. Please note that the date has changed. It was initially scheduled for October 26 and we have decided to change the date, and it will be the October 25. So thank you for your attention, and I'm now available to answer your questions.

[Operator Instructions] We have a first question from Simon LeChipre from Stifel.

Three, please. First of all, starting with some, let's say, question around the macro environment. On the oil price, what is the contribution of high oil price to your like-for-like growth in Q1? And similarly on inflation, could you give us some color on the positive impacts on Employee Benefits? And if you could perhaps give us the average increase of the face value that you have experienced since the beginning of the year. And lastly, on Fleet & Mobility and the partnership with ChargePoint. If you could give us some insight on the economics and the pricing of the model with electric vehicle and how does it compare with the traditional fuel card solution?

Okay. Thank you for this first question. So your first question is about fuel price. So let me come back on what fuel price means for Edenred. So what is key for us is the retail fuel price meaning the fuel price that you pay at pump. And we know that the change in this retail fuel price depends on the country. Meaning in each country, you have decisions from the government to manage the fuel price level. So for instance, in Mexico, we know that the fuel price does not adjust -- the retail fuel price does not follow exactly the crude price that we see on the market. Then, yes, during this first quarter, we've seen a level of fuel price higher compared to what it was last year. And you know that 10% of our revenue -- of our total operating revenue depends on fuel price. And we have -- we are estimating that it's between 2% and 2.5% of increase on our total operating revenue that comes from the fuel price increase. What does it mean? It means that even without this positive impact coming from fuel price, we have delivered double-digit growth, both on our total operating revenue and on our Fleet & Mobility business. So these are the figures I can give you about the fuel price impact on our total revenue. Then your second question is about inflation, and more specifically, about the impact of inflation on the Employee Benefits. So as explained during the presentation, due to inflation, we see a lot of governments deciding to increase the maximum face value in some countries. So I took few examples. So for instance, in Germany, the Ticket Plus City card has seen its face value increase from EUR 44 per month to EUR 50 per month. So it's a plus 13% increase of the face value. And we have this kind of face value increase in many countries, 160% in Poland, 150% in Bulgaria and we know that many governments are looking at that. Now when we have this kind of a decision coming from the government, then we need to advocate our clients in order to see the impact of the new maximum face value in our business volume. And we know that we have a time lag between the decision that is taken by the government and the time when we see the impact on our revenue. So what I can tell you is that, yes, we already see the impact of this in inflationary context on our activity. But it's not easy to give you a number regarding the impact on our business volume. But definitely, when we see the trend of operating revenue, we have the positive impact of this kind of decision coming from the government. Then your third question about ChargePoint. So we announced this partnership at the beginning of April. We are very happy to sign this partnership with a company like ChargePoint, which is a global leader in the electric vehicle market. So when we look at the business model we will have with this kind of partner, it is a business model, which is comparable to what we are doing with all partners that we have today, meaning that our clients will pay fees per transaction and depending on the volume they will charge at the ChargePoint's operating stations. And we are buying volume at ChargePoint the same way we are buying volume to oil companies or to gas stations. So it's a comparable business model, and we know that our clients will use more and more of this kind of facilities due to the fact that the fleet are becoming more and more green and more and more electric vehicle or hybrid vehicle are part of the fleet of our clients.

Okay. So we could expect the take-up rate on electric vehicle solution to be similar to, let's say, a fuel card solution?

At this stage, yes, we consider the take-up rate will be the same. And we believe that we will have more and more opportunities due to the shift to electric vehicle as we have different ways of charging to address. We know that there are 3 main pillars that you will charge your vehicle, at home, on the road or at work, and we will be able to address those 3 behaviors, thanks to our solutions.

Next question from Paul Sullivan from Barclays.

Yes. Just a few for me. Just on the outlook, when you talk about maintaining a sustained pace of growth, are you suggesting that the sort of 15% you've just delivered is sustainable? How should we think about the comp going into sort of the second quarter or indeed the second half? Secondly, France looked like it was a relative underperformer and didn't improve compare -- versus 2019 compared to Q4. Was that due to competition or smaller fleet exposure? Could you just drill down into that growth rate a little bit more? And then finally, in Brazil, we've talked about the regulatory changes that we saw in November. How are those -- how are the first phase of those changes starting to work through the model and how is that being received?

Well, thank you for those questions. So the first one regarding the pace of growth. So we did very well in Q1, definitely, and we have a very positive sales dynamic. We are harnessing structural post-COVID trends, definitely. And we see that with the inflationary context, the attractiveness for solution is increasing. So I would say that we have a strong growth driver that are endogenous to Edenred. Then the performance we had in Q1 is also favored by some exogenous factors: higher fuel price, higher interest rates, and as you've seen also, higher FX especially in Brazil. So today, we are confident to maintain a strong momentum in the coming quarters. But we are only at the end of the first quarter, so we still have 9 months to go. You know that we will give you more information regarding the trend of the year during the publication of the half year results, as we always do. And so today, we have a positive trend. Then we also know that we need to manage some uncertainties. We have the crisis in Ukraine. And we know that we could have some impact from the Omicron variant in Latin America as Latin America is entering into the winter. But as I said, we are confident in our capacity to keep on growing this year. And as already said, we are confirming the guidance we gave you during the 2021 recent publication. Then second question is about France. So when we look at the performance of France, it's a double-digit growth. So it's 10% -- more than 10% to be compared to 12% during the last quarter of last year. So when we look at the market, we are performing well thanks to our different products, but especially with our Ticket Restaurant. We see the same level of competition we had in France compared to what we've seen last year. And as already explained also on top of what we are doing with Ticket Restaurant, we have new clients with our Beyond Food strategy and with the product we've launched in Employee Benefits, especially with the working-from-home products, which is Télétravail. So good growth in France, double digits, and we are keeping on the same level as we did last year. Third question about Brazil and the new regulation. So yes, the new regulation has been voted in Brazil in November last year. I remind you that there are 2 specific kind of measures, some measures that are implemented since December last year and some measures that will be discussed with the government in Brazil and that could be implemented in May 2023. So the impact of this regulation and the decisions that have been implemented in December is to ban discounts for the clients, to ban payment terms. And this has been decided to balance the fees between the clients and the merchants. As some new entrants on the market, we are using rebates with clients and we are increasing the merchant fees. So the impact of this regulation is positive for Edenred because, obviously, we are going to take advantage of the ban on discount and on the ban of payment terms. However, what we see this year is that there have been 1 month between the decision of the government and its implementation in December. And during this month, some clients came to us to renew their contract with the conditions they had in 2021. So the impact of the discount ban is not in our accounts yet, but it will come in the coming quarters because new contracts that will be signed will be signed with the new conditions set by the law. So the growth of our revenue and the growth of our float in Brazil will improve in the coming quarters. Now when we come to the information about the 3 topics that will be discussed before May 2023, we are still discussing with the government, but we have time in front of us to do that. What I can comment also is the provisionary measures that have been decided by the government in Brazil. So in Brazil, you have the PAT, which is the Workers' Food Program and you have the head alimentation -- the FOOD aid program and the government has decided to align FOOD aid program to the regulation of PAT. So you cannot have ban and -- you cannot have discounts and you cannot have payment terms for FOOD aid program, just like it is for the PAT. So it is a good point for us. And the fact that the discounts are banned, the fact that payments are banned will have an impact on our Brazilian P&L in 2023.

Next question from Mourad Lahmidi from BNP Paribas Exane.

Yes. I have actually 1 question, it's on the French election. In Emmanuel Macron program, there is an initiative called chèques alimentation, where low-income households will receive EUR 50 per month to spend on organic and local products. So this is typically a program that is suitable for earmarked funds. So I was wondering if you were part of some discussions or if you were approached on that specific program?

Okay. Thank you, Mourad, for this question. First thing is we see that during this campaign, the purchasing power has been at the heart of the discussions. And as I said, we know that we have the right solution to protect and to increase the purchasing power of the employees and of the citizens in the country where we are, and we have demonstrated that during the COVID crisis. You know that we've been able to launch specific-purpose program. We did that in many countries, and we've been able to demonstrate that earmarked fund has a clear impact on the local economy and that it's a good way to give money to the citizens. So regarding the chèques alimentation you're talking about, Emmanuel Macron put that in his program. He talked about that yesterday evening during his debate with Marine Le Pen. Obviously, we are part of the conversation. Now we are at the very beginning of the discussion and we need to understand the way the government wants to implement this kind of solution. We have the right technology. We have the knowledge of this kind of program. We did that in France for a program that has been designed for Action Logement. We've been able to distribute subsidies from Action Logement for elder people in order them not to leave their apartments. And we've been able to manage the subsidies to refurbish, for instance, their bathroom and to remove the stuff that does not fit with old people. So we have this experience. We have the technology. So definitely, we will be part of this discussion. But it's too early to say if we'll be able to manage this program.

We have no more questions for the moment. [Operator Instructions] Next question from [indiscernible] from Morgan Stanley.

Just 2 small ones, please. Can you just remind us what was going on with scope during the period. We had more working days. Last year, it was fewer, but scope was still a negative impact so just remind us on that one. And then secondly, you said solid double-digit growth I think you said in CSI. Is that another way of saying it's below the 20% that you were doing last year in that business? Or is that not the case?

Okay. So regarding the calendar effect, we have 1 day more in Q1 this year compared to last year the region where we are operating, but it has no significant impact on our business as 1 day out of 90 is not significant. So this is part of our business and so it's plus 1 there for this Q1. Then regarding CSI, we did very well month after month. And we see that the hospitality business is recovering in the U.S. So when we say strong double-digit growth, it means that it's high teens growth. And we see that, as already mentioned, the situation of the U.S. economy, especially in hospitality and media, is improving and we are growing with the recovery of the activity.

We have no more questions. [Operator Instructions]

Okay. Well, thank you very much for your attention and for your questions. And I wish you a good day. Thank you very much.

Thank you. Ladies and gentlemen, this concludes the conference call. Thank you all for your participation. You may now disconnect.