Ford Motor Company (F) Earnings Call Transcript & Summary

Well, thanks, everybody, for joining us again. We are very happy to have Ford up next. Ford is beginning to execute on the vision of new CEO, Jim Farley, by actually executing on the global redesign and really pushing forward and making some great strategic decisions but also really focusing more and more on growth. At the center of the whole plan is product and the connected vehicle opportunity, which is really core to Ford's strategy. Today, we are very happy to have Jim Baumbick, VP, Enterprise and Product Line development. Jim is a long-time industry product guy. We love talking to him. We'd love to hear what he's going to have to say today about connected vehicles. And I promised Jim to only ask you a few questions about the upcoming Bronco launch at the end. And with that, I'll turn it over to you, Jim, to give the presentation and looking forward to the Q&A. Thanks so much for joining us, Jim.

Yes. Thanks, John. Really appreciate you having me today. I'm excited to talk about our plan. The role that product strategy plays in delivering our customer-centric growth. One of the unique aspects of our portfolio and really the power of the Ford portfolio is that we have these incredibly iconic products and nameplates. What really gives them their strength is that it's kind of the role they play in customers' lives. They connect on an emotional level, in some cases, the foundation of people's life with their businesses. When you take those really strong products and you add to that technology and connectivity, and this allows us to use deep customer insights through our human-center design capability to make these amazing products, something that really turns more into an ongoing relationship. And so we'll talk to you a little bit today about how do we take the combination of great products and an evolving connected, always-on, relationship with our customers to grow an even stronger product portfolio. So if I go to the second slide, I just want to touch a little bit on the plan. And in some cases, a number of these aspects have been in place where we've been working them for a couple of years. I love what Jim and the executive team have done is they've really added some really important items to the plan. Things like certainly working around trying to drive automotive business, but competing like a challenger. I think Bronco and Mach-E are great representations of this mindset. I love the addition of treating customers like family. This is something unique about Ford. Our history, our legacy, the enduring values that start with Bill and the Ford family. And this was on full display over the last year when you saw how Ford responded in a time and need due to the COVID crisis with our project Apollo effort. We didn't ask -- wait to be asked knowing our history, it was really around like how would we? how can we? What should we do to have an impact, not just for our company but for the broader population in our country? Most of our products and services are the lifeblood. We want to capitalize on our strengths, but we're also going to work to disrupt ourselves, right? Think about doing business differently, and I'll give you a couple of examples. And then looking forward, and it starts now as leading in electrification in areas of strength of our portfolio. Now if you go to the third slide, we're certainly committed to creating a vibrant Ford that grows profitably and generates sustainable free cash flow, and this will be led by our automotive business. But aspects of our plan that are really critically important, allocating more capital and resources to the strongest businesses, right? The best ideas have to win out. Expanding our commercial vehicle business beyond the product to a suite of software solutions that drive loyalty, stickiness and recurring revenue streams. Leading the electrification revolution by doing so in a way that only Ford uniquely can, especially in a crowded marketplace. We're going to love to add more affordable offerings in our global lineup, including North America. And we're going to stand up new customer-facing businesses enabled by Argo AI's world-class self-driving system that we're very excited about. When you go to the fourth slide, I think just to put it simply, we've developed great products. They have great history. Some of them are very iconic. And while this has served us well for over a century, the big change for us is enabled by these new technologies. This shift of a broader ecosystem, technology and connectivity, enabling different services and really focusing on the addition to that great product, this -- plus this additional always-on relationship with our customer, which we think is going to unlock incredible value. On Slide 5, I've shown this left-hand side of the chart before. This is what a winning portfolio looks like. These are winning businesses in all their respective segments. They give us great pride and inspiration. A clear proof point on the right for me is what we talked about back in 2019 when I joined you is, again, pulling the capital, driving the capital into the areas where it's winning. And you can see, if you look at the prior 5 years, only 38% of our capital was allocated to our strongest products. And looking forward, nearly 75% of that capital is supporting our strongest nameplates and some of these are really critical regional winning products that underpin a very profitable and vibrant business. Now the next slide, Slide 6, I think, is something I think is also really important to a winning strategy and a critical proof point. It's really how we're allocating capital over time. And the strategy is -- for me is something I am personally very proud of, our commitment to actually having a leading average age of the portfolio with major product news every year. So we've had some history where it's been feast or famine. And in fact, if you look back at the period between 2007 and 2019, we took our foot off the pedal and let that average age creep up. What's critical about this is keeping that in that highly competitive domain where we have major actions every year. And in fact, by 2022, we'll have replaced nearly 100% of our portfolio in the U.S. Very exciting and also very excited about some of the upcoming launches, not the least of which is the shipping Broncos to customers, but our on the white space product that I talked about back in 2019 and the all-electric F-150, which is soon to be shared more details on it. So you've heard a lot about these latest products that we've launched on Slide 7. They're all being very well received. And as I mentioned -- when I mentioned in 2019 that we were disrupting ourselves, we wanted to develop a product 20 months faster than we had in the past. And I'm happy to report we're right on track. Now I'm dying to share more details. You're going to have to wait a couple more weeks in the next coming months, we'll be sharing the details of that product, but we're very excited about it. We think it's going to really invite a whole new set of customers to join the Ford family. Now on Slide 8, what's equally exciting to me is not just the response by the experts in the industry, but it's the real human stories that are kind of coming out. I've talked to you a couple of times about our -- a big lean-in on building up capability around human-center design, getting deep customer insights that connect with customers. And when you look and you hear some of these inspirational stores, these are very human stories that are coming to life around our products. It really just kind of, I would say, amplifies the power of getting to know your customer. This one in the middle here on the F-150 Pro Power Onboard. This is a situation when we were conceiving the idea of developing this capability. We thought about exactly this type of scenario. And this is actually core to what our Ford truckers are, these bold guardians, they want to make sure they're helping out in their community. And you saw that live when the devastating effect of electrical grid in Texas played out in real time. And I love this example on the right, people realizing unexpected stardom by having the new Bronco Sport in their stable. Very exciting, and it's just driving a really strong emotion and connection to the brand. Now on Slide 11 -- I'm sorry, Slide 9. Our intention is to lead the electric revolution, and we're going to do so in the areas of strength. Our basic strategy is to play to our strengths, targeting these aspirational segments. We're going to build brands and take what's made these iconic products so strong and take the attributes of a BEV, things you could only do in a BEV to amplify what matters most to those customers in a battery electric execution. We're going to leverage scale, dedicated architectures, component reuse for efficiency and speed. And what's really important is, again, this always-on relationship where we're going to develop this ecosystem around it. So we're all in, in our commitment to electrify our strongest nameplates. On the right what you see is really, it's not just the nameplate, we're counting volume. We're making sure that we've got coverage in the highest volume segments with truly playing to win products. They're going to speak to customers in a unique way. What I'm also very excited about is nobody has a perfect crystal ball. And if the pivot point in transition is off by a year or 2, one of the things that's really important about product strategy is to actually design in some resilience. Given our freshening rate and the plans that we put in place in our existing portfolio, we're able to actually address, and we have a very resilient plan where we can actually protect up to 95% of our existing profits with our core existing product, but at the same time, all of our forward investment is really driving into that electric future as we set that up to win in that growing environment. Now on Slide 10, at the same time, another proof point is our shift in how much we're investing. We've nearly doubled what we had previously said around our electrification investment. And it's a 3x increase over the last -- period over period. We're doing the same thing with a 4x increase in technology. And it's not just investing in technology for technology's sake. It's tech that's going to make this human experience, this opportunity to evolve and curate this relationship with our customers with that always-on mindset, it is actually only going to enhance the ownership experience for our customers. Now on Slide 11, some of the things that I would expect to start to see come through with this ongoing relationship, a more welcoming set of features in a way to just bring people into the brand. So a great example of this would be being able to remotely set up your vehicle, pre-configure your vehicle through Ford Pass and in some cases, even before you take delivery of the vehicle, what a way to actually have your first introduction to a Mach-E. Straightforward technologies that actually are purpose-built and democratized. So active drive assist with hands-free driving in zones that make up over 100,000 miles of North American roads will be available in Q3 to OTA or over-the-air update to your 2021 F-150 and Mach-E, and we expect this to actually be a really strong feature for our customers and experience. And then commercial is such a huge part of our portfolio, driving productivity. So using Ford customer solutions, things like energy consumption and driver behavior for fleet managers or seamless payments for charging at public stations, and really a whole host of other features that we can imagine to take advantage and help customers' businesses thrive. Other examples like building community within Bronco as we get to the end of the Bronco launch and start getting that vehicle into customers' hands, Bronco nation or our Ford performance app that has 2,000 curated trails that have been mapped and surveyed to kind of give people who may not be familiar with those trails, ideas, maybe invites and chance to do so in a way that is well understood before they embark on the journey. And I'll quickly wrap up, John, on this last slide because I think this really shows the power of these connected vehicles. If you think winning products are the fuel to drive the business, we think this exponentially growing number of connected vehicles to really be rocket fuel for winning businesses. In just 3 years, we'll have nearly 2x the number of connected vehicles of a very well-known EV competitor. We think this is the power of Ford's scale. This is exactly why we're investing in electrifying in high-volume segments and doing so with our strongest products to create the stickiness and grow our relationship with our customers. So with that, John, now that's the end of my presentation and maybe turn it back to you.

Jim, that was great, incredibly helpful. I actually have a lot of follow-on questions, and there's a lot in this presentation. So I guess the first question is, obviously, there's a lot of focus on EVs and connected vehicles, some of which will be new nameplates and some of which will be leveraging existing nameplates. The transition is going to take time towards EVs. I'm just curious, as you think about PD dollars and how they're spent, are you given the freedom or the direction, maybe not freedom is the right way to say it, to really continue to invest in your core ICE vehicles that are generating ultimately the cash flow to invest in these future products? Because it's this virtuous cycle and I think some people think that, hey, you just -- you shouldn't be spending another dollar on an ICE vehicle. The Bronco is going to be an ICE vehicle, at least for the initial phase and maybe over time, That's going to create a tremendous amount of profit and cash flow for you to invest in the future. So it seems like you're being given this freedom. But how do you balance that given that freedom? And how do you think about that yin and yang between sort of near-term cash flow and the reinvestment in the product versus this longer-term investment in PD for EVs?

Yes. So John, I think this is a fantastic question. I think it starts with you got to be clear on what to stand for. And so when you look at -- as well as understand the customers and how they use the product, So we do have some flexibility, and we certainly are investing in our core existing portfolio, and that's driving a lot of cash available to invest in the EV future. So when you think of that, the refresh rate that I took you through and you think about those strong products and the use of those products. So there are some usages that probably aren't perfect for battery electric in its current rendition in the workspace and others that it's perfect for. So we are able to actually invest in -- we just launched an F-150. So we've timed kind of our investments to get fresh product out there. We have the ability to continue to invest in those products. But we're actually not using that as a gate for us to be all in and investing in dedicated EV platforms or purpose-built platforms. So it's really around -- you can't do everything all at the same time. But I think what we need to make sure is over the course of a year or 2 or 3, that if it's high or low relative to our projection that we've got these very strong winning propositions in the EV space and high-volume segments. But we're also ensuring that we're playing to win on the existing portfolio where it matters most. And that gets back exactly to my point. When we look at it, if it's a little bit slower or a little bit faster, we feel like we've got the right product to lean into, and that's where we could actually protect the core part of the profitability during this transition. There's no ambiguity about the future and where it's going. But actually, just going through these next couple of years through that transitionary period, you got to make sure you got a little bit of resilience dialed into your plan, and we feel really good about it.

Interesting perspective. The product development process for ICE is something that we're all reasonably well steeped in and understand. But the product development opportunity and process on EVs is new. I just -- if you can disclose, I mean, maybe using the Mach-E as an example or maybe something else, I think that will probably be a pretty good one. And how that PD process works versus an ICE? Are there greater degrees of freedom in the engineering because of the architecture of the vehicle? And does it maybe take longer right now to figure out because it's a new -- it's a new powertrain, it's a new architecture? And then over time, maybe compress dramatically to where your cycle times can be much faster. I mean how do we think about the PD on EVs versus our traditional understanding on ICE?

Yes. So I guess I'll start with a couple of things. I mean there's no -- It's no surprise or no mystery that ICE powertrains are inherently very complex machines. And that doesn't mean that battery electrics aren't complex in their own way. But when you think of all the things that are required to limit emissions, deliver fuel efficiency and balance all the attributes associated with ICE, And also to be honest, they take up a lot of space. So there are some unique things that we can do when you think about battery electric in absence of that full ICE powertrain and transmission that frees up a whole host of possibilities. So in the Mach-E, for example, having a waterproof trunk and storage solution is only enabled by a BEV. So it just changes the variables. It changes the equation of things that you can invest in. And certainly, the way we're thinking about this is we're trying to set up platforms. And there's -- I talked to you a little bit about flexible architectures and modular catalog, trying to get a high degree of reuse and the things that customers don't see, touch and feel but then actually differentiate the things that customers do interact with. And our goal and the way we're actually leaning into this is actually to develop the flexibility in those architectures, thinking about a bandwidth of products, not doing everything purpose-built for each individual application. And that's where we get leverage scale, efficiency and speed. So I'll take it back to an example, albeit an ICE example of that white space vehicle. One of the major enablers to go 20 months faster was the flexibility of the architecture because we have thought about this much wider bandwidth of product, and we had identified the minimum number of steps in the architecture required to serve a bandwidth of products. And when our front-wheel all-wheel drive architecture is complete, it's going to ultimately underpin anywhere from 11 to 12 different nameplates and upwards of over 6 million units. That's leverage, that's speed, that's efficiency.

Okay. And then on the Mach-E specifically, I mean, there, you've shown an ability to produce an unbelievable EV that arguably is competitive, if not better than anything that's out there on almost any technology upfront, including OTA updates and the like. But it seems externally, and I might be wrong on this, and it is largely a purpose-built vehicle. Is that correct? Or is that something that you may be able to leverage going forward? And if it's not a platform that can necessarily be directly leveraged. I mean, what kind of learnings and systems from that, that you might be able to apply it for? Can you think about what you can actually leverage off that if it's not the actual platform itself?

Yes. So while it's a purpose-built dedicated BEV architecture, it does have scalability, and it does have certain usages across the bandwidth of product, whether it be e-machines, battery tech, some of the electrical software and the like, that our intention is to continue to grow and to expand other top head executions, but also to evolve the architecture to take full advantage of it. So it's kind of a mix. We wanted to make sure we were getting out there quickly with something that was purpose-built, dedicated BEV, not constrained by ICE architecture systems. And that actually set us off on exactly the right path to kind of build out the flexibility in the architecture with various top heads that we'll be talking about in the near future.

Okay. That's helpful. The competitive landscape in EVs may have a -- or has a few new entrants, not may, they're out there. Some maybe more or less capable and time will tell, cannot make our judgments there. But some of them have access to low-cost capital. So their business plans will get worked over time and executed as best they can. But one really interesting thing is that some of them are actually coming after the core products that you make a tremendous amount of money on, being pickup trucks as well as commercial bands. It seems like some of them actually picked a good strategy because that's where there's a lot of money made in the industry. I'm just curious how competitive you think these new companies will be? How seriously you take them? And obviously, you have a competitive response with the electric F-150 and electrification of the transit lineup. And I'm sure maybe some new vehicles will land in white spots over time that we'll learn about. But how serious do you take this threat or this competition and really how much thrust are you going to have, let's say, in this competitive response and I guarantee you're not sitting still?

Yes. Well, we're certainly not sitting still. And these are customers we've been serving for some time. So I'm not going to comment on competitors, but it's true. There's a large number of competitors entering the market. I think in general, and I show up every day, just like everybody at Ford, and I know Jim Farley believes this to his core. I show up every day trying to compete. So for me, competition breeds innovation and it's an exciting time. That being said, there's not a company on the planet that wouldn't love to have some of the iconic products in their stable. So we need to take our advantages, the things that we have, our understanding of customers, the broad application of commercial vocations that we serve and have served for a long period of time and leverage that strength, take advantage of that. We have this incredible service network to support people's businesses and trying to drive using connected vehicle and our Ford Commercial Solutions to drive productivity and uptime for our businesses. So we're very confident. We're very bullish about this, and that's exactly why we're electrifying the transit and the F-150 because they're so critical and core to the commercial side of the business. So make no mistake about it. We're going to show up and we're in it to win it.

And the connected vehicle opportunity that you're going after, how important is that in coupling that with your EV offering? I mean, because once again, we're hearing a lot about logistics. And obviously, route planning, all sorts of stuff that might come along with these electric commercial vehicles. I mean where are you on that? And what do you think the competitor's response needs to be?

Yes. So I think this is a huge opportunity for our business is using information on the vehicle, prognostics to ensure we're keeping vehicles on the road, using data to provide to our commercial customers to help their business improve and for the productivity of the business. There's just kind of limitless opportunities and that's where we think that type of stickiness, that type of focus, and we're shifting a tremendous number of resources to build out our entire suite of services around Ford Commercial Solutions has got great power to leverage around a really important and core part of our business. In your last question around just the competitive activity around this, there's an incredible amount of diversity in the core transit market that we serve, just the number of different vocational uses. There's a lot of competitive activity on parcel in one area, but it's very small but growing part of the segment. When you look at the diversity of those vocations that we serve, this is where the power of that data, understanding how those vehicles are being used, understanding how customers use their vehicles in their businesses. And the combination of those 2 open up all kinds of possibilities to leverage the connected vehicle to actually create these commercial solutions that enhance people's businesses that they wouldn't otherwise have visible or made available to them. So we're all in on it. And I think you're going to start to see a lot more about our strategy around the ecosystem around commercial building out and evolving in the coming months.

That's helpful. I mean when you think about -- I mean we always kind of talk about dollar capital, but human capital is really important in this process in developing the product and the connected product and everything else that you're working on beyond the point of sale. How do you think about attracting talent? How competitive is it? And do you need to bring a lot more folks in? Or do you feel like you have a pretty good set of people to execute on what you need, what you're doing now? I mean it's -- human capital is a real issue in this very high fluting high IQ area to really push this forward. What's on your mind?

Yes. I mean you're spot on. And certainly, we're in a continuous competition for capital. We've got a tremendous core strengths as we've been building out the team over time. We're continuing to attract additional and new talent to kind of complement the team as we grow our focus on the connected side of the business and building out our services. What becomes important, and this is where I think Ford has a very unique strength, right? A lot of prospective employees look to the brand. In fact, our study of a lot of the millennial customers, it becomes really clear that they're going to buy in and they want to work for brands that stand for something. What is the overall mission of Ford? And this is where I think we have something unique. I think, as I mentioned earlier, a great example is just we've been dealing with COVID for the last year. We make cars and trucks, but we decided that for the greater good we wanted to get into other aspects to help in the medical space, on PPE and ventilators and things like that. This is a way to get a very clear-eye view of what the company stands for, what their long-standing values are. And so we think that is an incredibly exciting time around this intersection between the emotive product, technology, the electrification revolution and then the advancement of AV technologies is this incredible intersection that is also an attractive drop to talent. So I really see it as 2 aspects. It's like what's the long-standing values and mission of the company, and then match that up with this intellectually a really interesting time in the industry where these 3 things are coming together. And the strength and motive part of our core product portfolio, and I think Ford stands in a very good place to attract the best and brightest.

Then staying on EVs also. I mean, the F-150 EV, at least in my opinion, is going to be a very core product. I mean, it's the best-selling nameplate and product in the country. So it gets electrified. You could argue that, that may be where tipping point may be. How do you think about that? How -- I mean, I know it's too early to say it's going to be 5%, 10%, 20% of the build. But how do you think about that? I mean, is this a point where Joe 6-packs is like, hey, actually, this got better torque, and I can power all my tools off it. And actually you only need 200 miles of range. I'm not saying what the range is going to be. I don't need 500, 600 miles of range, and this actually is a great work tool for me. So game on, it's just a better product for me. Is that what might happen here? And how do you think about the positioning of electrified F-150?

Yes. This is a great question. I mean, to me, this is a very clear signal that this is where we're headed, right? It's the best truck in the world. We're making a purpose-built battery electric F-150. And that doesn't mean you have to make a trade. We just launched this amazing F-150 that has incredible capability. And so we see it as like an expansion or add to the portfolio of solutions that are available to our customers. What's unique about our F-150 all-electric vehicle is it's design purpose-built to do work. So it's going to be authentically built for tough. And so when you think about what does that mean to customers? That means something. It's got a long-standing heritage. It's got a long-standing history and people know what they get, that is be able to going to show up and be able to do the work that you expect out of it. And so it becomes another choice for the customers and as it accelerates into BEV because we know it ultimately will, then we're prepared to actually continue to invest and actually grow the capability of our all-electric F-150 at the same time, having this incredible, very strong product that we just launched out in the marketplace. So we think we're really poised to kind of work through these transition learnings for everybody. But we are all in going into the future.

Let me sneak 2 more in here real quick. We're getting a little bit low on time. Product launches have been a little bit of a sore spot, particularly around stuff like the Explorer in the past, and they seem to be smoothing out and working out and getting better and better over time. What kind of lessons have been learned on actually SOP or getting the SOP and ramping from there? You had a lot of great product coming out, but it's got to get out and launch. So I mean what kind of tough lessons have been learned and how should we hopefully find some more comfort that they're going to be smoother in the future?

Yes. So we've done quite the introspective on some of our prior opportunities. And I think you're starting to see it as we've launched the recent new product, the Mach-E and the F-150, the 2 plants are showing that they're launching very well. The Bronco Sport is launching very well. And so we think we're off to the right start. We've kind of internalized the opportunities there. And we're focused on getting it right. Every launch is unique. Every launch has some challenges. And it's how you kind of deal with those challenges, how you internalize them. And what's most important for us is protecting the customer and making sure we get it right before we actually start shipping them to customers. So we're pretty bullish, and we're feeling really good about where we are heading into another wave of product reviews.

Great. And maybe just lastly, price and mix have been incredibly strong. I mean if we look at the third quarter, it was a record quarter, third quarter. It was done with arguably some depressed volume but incredibly strong mix and price. And the whole market has gotten a little bit more balance because supply is being constrained post-COVID and there's a lot of component shortages. But the industry seem -- you and the industry seem to have learned kind of this experiment we've all wanted to see is, hey, focus on the higher profit, higher mix vehicles, don't produce as many and let's see what happens, and you put up record numbers. Fourth quarter, there's some launch costs and stuff like that. So the fourth quarter was -- is a little bit different, there's some noise in there. But I mean if you think about the product cadence and the product that's coming out as well as sort of the balance on the actual manufacturing side, do you think something has structurally changed here where there's an understanding that growth in profits might not necessarily need to be driven by growth in absolute volume? And also, I mean, it comes at a time where there might be some secular opportunities, particularly around commercial vehicles and the connected opportunity to actually have these incremental areas of growth -- profit growth over time that are not tied to volume. So has there been a shift in the way that you think about setting up in product development and then it ultimately gets executed in the actual manufacturing decisions?

Yes. I think what's really most important here is actually resonating with customers and effectively driving some of the demand. Yes, there's a way you can look at, should we go for a much higher volume product. But I think where we get ourselves a little bit out of balance is that actually that's what we're counting on to actually make the business work. I think what's actually a more resilient and robust approach is actually building products that customers love and can't live without that's going to drive the demand. So just to give you a couple of examples, right? The -- we had over 190,000 orders on the Bronco. So there's a clear signal people are loving it. Now our conversion rate from those initial reservations has been 65%. Very high. So we have 125,000 confirmed conversions. When we look at the data, 70% of that is higher trim series, 60-plus percent of it is the premium 2.7 liter engine. And this is -- it's speaking to customers, my favorite example and -- is the Bronco Sport. So there's been so much built up around the Bronco. And one of the things that was really kind of great line we did some of the media drivers is we had both products there and people were -- had high expectations that their Bronco had certainly lived up. But when they drove the Bronco Sport, they were like, wow, this thing is incredibly capable. So here's an example. The Bronco Sport is transacting at the highest in segment. It has the lowest incentives and it's got 11- to 12-day turn rate on the dealership lots. So to me, that's saying those are products customers are absolutely loving and they're ones that are in high demand, and they're actually screaming to get. So I think that's actually the way to -- we're thinking about our product strategy is how do we actually connect with customers in a very real and emotional way, and that's going to drive demand that will then make as many of them happy as we can.

I have to say there's some really exciting product coming out, and I'm really looking forward to get my Bronco as soon as possible. It really is the kind of vehicle that you -- I think I can't live without for sure. So I mean, it is really exciting to see that PD has come through, is doing great product and you guys are executing. And it's really fantastic to always talk to you, Jim. Product is key. And you're the king of product at Ford, and we appreciate your time as always. We look forward to doing this again soon hopefully, in physical form, it would be nice to shake your hand and share a beer when it's all safe. But thank you so much again for your time and look forward to seeing you soon.

Thanks so much for having us. We have a great incredible team at Ford. So it's really the team that's making it real.

Thank you very much.