iOCO Limited (IOC) Earnings Call Transcript & Summary

Welcome to EOH half year results. The single takeaway for me is the business continues to improve and grow despite the very tough economic and political environment. Revenue is up 8% half-on-half following a 17% increase half 2 on half 2 last year. The positive momentum continues. Importantly, after a year of investing in the international business, we see a 45% organic growth in revenue. Business stability continues with GP margins remaining in the high 20s for the third successive half year period. Operating profit of ZAR 109 million is more than we made for the whole of 2022 as our growth, efficiency, talent or GET strategy bears fruit. What was very pleasing in this tough environment was the significant investor support we received for our turnaround efforts in the rights issue. On the negative side, we have seen a significant slowdown in public sector work, especially with state-owned enterprises and metros. This is a significant worry for the economy moving forward. We had an extremely successful rights issue and capital raise in very difficult conditions. There was a 100% vote for the rights issue at the AGM. 92% shareholders follow their rights, so there was limited dilution for shareholders. The offer was more than 200% oversubscribed and importantly, our BEE Level 1 status is cemented for a further 5 years. Debt is now at a reasonable level with sensible covenants, giving us decision flexibility back as well as sensible margins around 4% lower from the 1st of April. I would like to reinforce what we showed you in October, which is our GET strategy. Growth: We believe there's room for decent growth in South Africa with our current estimated market share being quite low for a company like us. Realignment of our client go-to-market efforts aligned to our selected OEM partnership focus is showing green shoots. Furthermore, we will continue to develop and scale our own IP platforms and build out our EZ HQ offering. RocketLab is now established with the head and is working hard to assist in industrializing and scaling our own IP platforms. EOH has recognized that the industrial sector in Africa is the final frontier for at scale digital transformation and creates a fertile market for growth. The industrial community in Africa faces unprecedented challenges. These include pandemic disruptions, raw material price inflation, impacts of climate change and fast changes in consumer behavior. Digital transformation is the most significant instrument available to respond to these pressures. Digital Industries is helping to create the critical information infrastructure layer across industrial plants in both single and multisite operations. In each plant, millions of data points exist and the opportunity for operational excellence is limitless. Key to achieving success is building people-based ecosystems to support investments in operations visualization, remote monitoring centers and value chain optimization. The industrial technology platforms we are deploying across the continent are proven across all industries and are underpinned by guaranteed regional support and expertise. We have created hubs in Nigeria for West Africa and Kenya for East Africa. Southern Africa will be managed out of Johannesburg. We have, in just 6 months, generated ZAR 20 million of revenue, largely out of Nigeria, but we have a small targeted list of clients in the manufacturing and natural resources space where we believe we can add immediate value. Clearly, we need to manage the currency and liquidity risks well around the pricing and payment around licenses and expertise. Also the FATF and OFAC obligations require proper client screening and management. We feel we have developed world-class capabilities in these areas over the past 3 years and have the tools and focus to manage the risks. Our international strategy outside Sub-Saharan Africa is core to derisking our South African business by providing access to new economies, political environments and currencies. Our renewed focus and cleanup of these businesses is already demonstrating traction with 45% revenue growth in half 1 of '23, albeit off a very low base. Our international strategy provides an exciting gateway to scale our own EOH IP and digital enablement solutions. In addition, it facilitates greater access to skills through the creation of delivery hubs and creates a compelling staff value proposition as that of an international company with offshore work options. Our Middle East revenue lines are showing great traction with a specific focus on our presence in the Gulf. EOH owns 75% of asset, which operates out of Egypt, but with a significant presence and customer base in the Gulf. Its core business offering includes enterprise information management, Telco products and technology services and skills outsourcing. We have added the digital enablement business unit capabilities of application development, data and analytics, automation, cloud and security. We are increasing asset IP sales inside and outside of Egypt as well as currently finalizing the establishment of global delivery centers in Egypt. Our U.K. and Europe revenue lines are also demonstrating strong growth and creating a channel to market for EOH IP through our Swiss reseller business. The U.K. business has achieved its new account growth target and has grown its customer base by more than 10 new logos, now at 69 clients. This including increasing the GBP 100,000 Club by 5 customers. Switzerland has won new clients in the Click and Citrix space, and it operates as a sales channel with delivery shifting to the U.K. and SA. Our international AWS practice is core to our international strategy, and we are on target to become a leading partner in our chosen regions in the U.K. and Europe as well as the Gulf. The Norma Agritech IoT offering is an exciting one for us as it uses satellite and IoT sensors as well as data and analytic dashboards to enhance production through better farm management. Given the focus on sustainability and better use of the earth resources, we believe this is an exciting offering to add into our ecosystem. As I've said before, we generate a lot of IP within the business, and we need to monetize it properly. Nama Agritech offering is a great success story. Just before lockdown, I visited our asset business in Egypt, and that demonstrated to me an idea around Agritech. This was driven by the Egyptian Government requirement for significant water saving in Egypt with the pending damming of the Nile. I returned there earlier this year for a visit to find the team had taken the concept into production, have 2 large farms of clients and a large pipeline. They have developed a light version and an enterprise version already. We are busy bringing this to South Africa and the U.K. We are anticipating good traction if the Egypt success story is anything to go by. Very exciting for sure, but this is tangible proof of the end-to-end capability of EOH resulting in solving for our customers. I'll put these slides in to show the diversity of business EOH is winning. This is further testament to having returned to growth, 17% half 2 on half 2 last year and now 8% half 1 on half 1. E is for efficiency. As I've said before, one thing we learned in COVID is that there's never a good time not to have a lean business. This remains a key agenda item for us as we scale down and close activities related to the past. Our last 2 things to solve now that the interest cost has been dealt is the tax efficiency from a corporate structure perspective. And secondly, to continue to rightsize the corporate head office and consolidate the 3 overhead structures into one. Our new ERP system is fit for purpose and will allow us to get to the right efficiency decisions. Our single banking relationship also allows for swifter decision-making and the consolidation of legal entities to reduce admin costs and tax leakage. T is for talent. Great talent is a scarce commodity in the world. We have a focus on attracting, training and upskilling the best people and then ensuring we pay for performance. We have a number of initiatives to ensure our people enjoy working for EOH. Getting the top employee award is no mean feat and is usually the domain of large listed companies like Mr. Price and others. We did it to ensure we are focused and measured on best international practice. We will continue to ensure our people are looked after properly. This has all been enabled with a significant cultural turnaround that happens when a company goes through what we have in the past 4 years. We are now a proper team who are proud EOHers. It will remain a key focus of ours to make EOH the coolest place to work. Our employee value proposition is based on the design of a fingerprint in order to respect and acknowledge the unique identity of each of our solvers. The key pillars driving our EVP are engage, grow, include and care. Firstly, Enable and Grow, we continue to focus on positively impacting youth unemployment. Secondly, Include and Care. Our inclusion strategy is based on the principle that an inclusive world is an enabled one. Based on feedback from exit interviews, our strategy has been working. 80% of leavers state that they would return to our business for the right opportunity. EOH is a cool place to work. Receiving Top Employer certification from the Top Employers Institute is a proudly EOH moment. We have come a very long way. The Top Employers Institute is the global authority on recognizing excellence in people practices. The accolade demonstrates that EOH is succeeding in building a forward-thinking workplace that allows us diverse people to grow and thrive. The group recognizes the individuality of its people and follows a personalized approach to meeting their needs. Our approach to today's socioeconomic development is aligned to the global sustainable development goals. We have a number of ongoing initiatives that make a tangible difference to everyday South Africans. Megan will now take you through the detailed numbers and try and un-IFRS them into something more sensible.

Thanks, Stephen, and good morning, everyone. We have finally reached the end of our journey of discontinued operations with very little left for this half year. Discontinued is mainly made up of Network Solutions. Our business is now approaching normality. And as we see a setting, we start to see the growth coming through from a top line perspective at 8%. We also saw strong operational performance with gross profit margins holding at 29% and operating profit of ZAR 110 million for the 6 months more than the 2022 full year operating profit of ZAR 100 million. Our high cost of debt hurt us for the 6 months with us paying roughly the same as the prior 6 months, even though our debt had decreased significantly. Post the half year, this has been resolved with the refinance of our debt. If we move on to the next slide and we look at H1 versus the second half of H2, we have seen strong performance across all key metrics. We saw 5% growth in revenue for 6 months and all profitability measures improved, most significantly, adjusted EBITDA, which grew 112% to ZAR 181 million. And profit after tax from a ZAR 200 million loss to a ZAR 37 million loss. When we compare revenue for the 6 months year-on-year, we saw good growth at 8%. The growth has also come from where we had focused our strategy, namely Digital and International, which saw an overall growth of 20%, of which international grew 45%. Generally across the board, we saw positive growth apart from the People business, where we saw a decline of 13%, which was due to customers losing contracts with SOEs, which in turn had an impact on us being able to renew contracts and then contracts where we weren't making a profit, we exited. We all saw a decline of 10% in our operational technology business, where, again, we were unable to close contracts with state-owned entities. From an EBITDA perspective, we saw solid performance across all our operations with digital outperforming and growing from ZAR 83 million to ZAR 103 million. Even though our People business had a decrease in revenue, they still managed to maintain EBITDA at ZAR 37 million. As discussed on the previous slide, our operational technology business was unable to close contracts with SOEs, which had a flow-through into EBITDA with a decrease from ZAR 47 million EBITDA in the previous period to ZAR 26 million. If we look at adjusted EBITDA and compare it to H1 for 2022, we first need to strip out the one-offs of recovered income and financial impairment losses in our lease book and get to ZAR 253 million as a comparative. If we then take into account the one-offs in H1 2023 and the investments into the business for growth of ZAR 23 million, we get to ZAR 227 million as a like-for-like comparison for H1 2022. To then understand the movement in operational performance and to reconcile to adjusted EBITDA, we had corporate recoveries from our IP businesses, which we no longer receive of ZAR 25 million and then a slight improvement in performance from iOCO of ZAR 6 million despite the deterioration in performance and operational technology. Then within NEXTEC, we saw a drop-off in performance of ZAR 11 million and ZAR 13 million for corporate and consolidation to get us to ZAR 184 million for H1. At our year-end results, we said we had approved ZAR 80 million to invest in the business as we embark on our GET strategy. For the half year, we had invested ZAR 48 million with ZAR 18 million being spent in our Infrastructure Services business, mainly on CapEx and then ZAR 16 million on internal digitization projects with the main spend being on our ERP, which went live in March. The spend has roughly been 50-50 across capital and operational costs. From a finance charge perspective, we incurred ZAR 100 million of interest costs. Our bridge facility has been very expensive at around 15% and cost us from a profitability and cash perspective. We have since refinanced post the rights issue. And going forward, with the new level of debt, we will see considerable savings. Overall, our tax rate continues to be high. Contributing to this is our finance charges, which are not fully tax deductible. With the reduction in our interest cost, we should see this impact changing, losses in NEXTEC businesses that don't recognize deferred tax assets and then tax applicable to prior periods. From a balance sheet perspective, our balance sheet remains largely unchanged. The biggest change being provisions where post year end, we finalized our DWS settlements and moved it from provisions to trade and other payables. With the closing of our capital structure post the half year of a net ZAR 550 million, it also restores our equity and NAV position. From a debt perspective, we started the year off with debt of ZAR 1.3 billion and received ZAR 100 million for the sale of Network Solutions, bringing our debt down to ZAR 1.2 billion for the half year. In February, we closed the rights issue and paid away ZAR 550 million of debt, leaving our debt position at just under ZAR 700 million. We have refinanced this with a single bank at normalized interest rates, 4% lower than what we were paying and into long-term debt of 3- and 4-year tenor. Our working capital slightly increased from year-end, but continues to stay in the ZAR 200 million to ZAR 300 million range. We have started to see a liquidity squeeze in the market, where clients are holding on to their cash longer before paying. We have a strong focus on managing this proactively to ensure our debtors book does not go out. From a cash perspective, the 6 months have been tough, and the delay in our rights issue by 9 months has really cost us in cash and interest costs. We paid ZAR 80 million in interest costs and absorbed ZAR 150 million into working capital. The cash and working capital was partly absorbed in debtors and then payments to creditors relating to the prior year. From a legacy perspective, there has been no significant change to our legacy costs and expected payments. We have only included DOD and DWS payments for the remainder of the financial year as we are yet to conclude an agreement with SARS. I wanted to go back to the slide of what our business should have looked like at the end of FY 2022 after normalizing for one-offs and taking a proper capital structure into account. Revenue of just under ZAR 6 billion, EBITDA at 8% margin and ZAR 483 million and profit after tax of ZAR 112 million. If we focus on our profit after tax target and see where we are tracking for the half year, we have done a very basic calculation by doubling up on our loss after tax, what we invested in OpEx in the business for growth and property savings for the half year. We then backed out all the interest costs for the half year and have brought in the full year optimized interest cost. We are ZAR 20 million ahead of ZAR 112 million target. This is positive momentum for our GET strategy. With that, back to Stephen for our non-IFRS outlook.

We continue to solve for our customers and partners. We can see we are winning given the revenue growth we have shown. The recent rights issue and resultant ability to seal a single bank relationship have made us significantly more agile. Our 4 main product lines are set out in this slide. Infrastructure Services or as I like to call it, manage your IT infrastructure; Digital Enablement or modernize or change your IT infrastructure; Operational Technology or automate your business that sits on top of the IT infrastructure; and EZHQ or HQ as a Service, EOH's business infrastructure available for customers. This is complemented by taking some of these business lines internationally to meet clients' needs at a lower cost point as well as using these product lines to develop and scale our own IP platforms, largely in RocketLab. More of this detail will be shown and demonstrated later in the year at our expo, please watch this space. The outlook is a little murky for sure. However, tough times create both opportunities and threats. We will do what we did in COVID, stay close to our clients and OEM partners to ensure we can support them in solving their digital transformation strategies. We will continue to save on admin costs to become more agile and allow investment and growth. In short, we will continue our save to invest drive. We will continue to evolve our employee value proposition to ensure we are the coolest place to work to ensure quality delivery to our clients. Lastly, to remind everyone of our organic revenue growth, especially in the international markets we have chosen, our continual improvement half-on-half with operational profit for the half year more than the full year in 2022. We will continue to invest in organic growth at the expense of fully maximizing EBITDA as we believe this is in the best interest of shareholders in the long run. We remain vigilant in this tough environment, but feel we have the scars to weather the storm. Thank you.

Thank you. Well, you are here with us, Stephen van Coller, Megan Pydigadu, the CEO and CFO of EOH. [Operator Instructions] Firstly, Stephen, I just want to start off. I mean, 4.5 years later and finally, we're talking about business growth. How do you feel?

No, it's actually a really good feeling, Bronwyn. It's been a hard yards. I think one thing we've learnt is to trust the process. We've been through some very difficult times, whether it was COVID, whether it was the floods, whether it was the rights thing, whether it's been the Ukraine war, you've had to just follow the process, make sure that you finish what you set out to do. I mean, things like 45% growth in the International business, very focused, very specific business plan. I mean it's really pleasing. And then to see where we've strategized and come up and invested in, we're seeing -- starting to see that growth come through, and that's really comforting.

So, Megan, one of the numbers that we do need to focus on is, obviously, EBITDA for the full year 2022 coming in at ZAR 360 million. And for the half, at ZAR 180 million, which is relatively flat. Can you unpack that for me?

Sure, Bronwyn. So I think we need to go back to last year to our presentation where we said that we would be investing in the business this year, and it's actually pretty exciting that we are able to invest in the business now. So if you go and look at how much did we invest over these past 6 months, we invested about ZAR 48 million, of which ZAR 24 million was from an OpEx perspective. So effectively, if you add back the OpEx, we're over ZAR 200 million from an EBITDA perspective. And I think that's something important for us. You can see just a little bit of focus in terms of the International business and the strong growth we got there, 45%. So we really are backing ourselves to invest in the business and see superior growth from a strategy perspective.

Just before I dip dive into the questions, the international growth, as Megan mentioned, is up 45%. You alluded to this in your presentation, but I can feel the excitement when you talk to the growth and the potential for the international strategy?

Yes. The international strategy is quite nice because we can focus on where we think we make a difference where we're really good. And that's really been focusing on this whole digital enablement and taking both that IP offshore and bringing some of the offshore IP onshore, and we're really starting to see traction. If you remember, I talked about having like a 0.1% market share in the Gulf and in the U.K. And those 2 target addressable markets are nearly 9x South Africa. And so actually getting the growth there and trying to spread our risk outside of just one country, I think, is really important for the balance of the business. And that's really what we're going for. The team came up with a crazy idea that they would grow the business to ZAR 1 billion in 3 years. It looks like they're going to do it in 2, and that's really exciting for me.

Couple of questions coming through. [indiscernible] saying, could you please give an indication of the total equity of EOH post the rights offer? Megan?

Yes. So post the right offer, we raised about ZAR 600 million. After taking costs off, it's about ZAR 550 million. So our NAV and equity is in excess of ZAR 550 million. I think the more important part is, when you look at the balance sheet, it's really just IFRS accounting. So everything is at historical cost. So it's important to look at our market capitalization, which is north of ZAR 1 billion now.

Mark Narramore. What more can be taken out of the operating cost line? Are there more efficiencies to come? I suppose you're both going to add to that because efficiency is part of your GET strategy. Maybe do you want to kick off.

Well, I think Megan is to kick off because she's the one who's had the pain of putting in the new ERP, and that's a huge, huge testament for our ability to deliver. So I'll leave that to Megan because she deserves the accolade.

Yes. So we have just gone live on our ERP and that is something that we had told the investor community. And we're really hoping that by the digitization that we've put into the organization, we will create efficiencies. And as it stabilizes, we should see the ability to reduce costs. Also looking at our property portfolio, we continue to be on track in terms of that. We've actually taken another look to see is there even more we can take out, and we are expecting do that in 2024. And then I think the last thing as our strategy evolves and we've pushed all these businesses together, there is the ability to make them more and more efficient from a delivery perspective. So I still think there is a bit to take out from an operating expense perspective.

Let's stay with you, Mark Narramore coming in again and saying, what rates on the term debt? This is something I'm sure you were seeing from the hilltops.

Well, so suffice to say, our cost of interest has dropped by 4%, which is significant for us. We are paying close to 15%, 16% on the bridge. So it does work on the basis of where our leverage ratios are. So it's probably roughly between 10% to 11.5% depending on those leverage ratios. So that's a significant saving for us. And Bronwyn, if I can just add, if we look at our results, we had really wanted to go out with our rights issue in May last year if we had, like we would have fundamentally presented different results and had different cash flows as a result. And that really did hurt us having to wait until January, February to close out the rights issue. But I'm glad we're there, and we can now look forward.

[indiscernible]. What is your growth expectancy for the full year results in the next 6 months?

Yes. I think it's always difficult to predict the future, especially where the South African economy is and the U.S. economy to be quite strong. One will have to wait and see how the China Russia thing plays out, how U.S. manages its inflation and interest rates. But normally, we are a countercyclical stock. We saw in COVID when the whole of South Africa went down 10%, we flatlined. So we don't regress as much as the whole economy in bad times, but we are linked to GDP. And then in normal times, we are 2% ahead of GDP. So if I have a look at our revenue growth now around 8%, that's pretty much more or less in that ballpark. So for us, it's about customer spending. We will continue to push the growth in the Gulf and in the U.K We're seeing a lot of traction there, and we'll continue in South Africa to drive this digital enablement as our customers look to manage this post-COVID consumer who seems to be much more pedantic but also have the ability to drive where they spend their money. And we're seeing it in all our customers trying to digitize, automate, take cost out and put it back into the user experience. So I'm fairly confident that we aren't going to have the negative down. So we will be countercyclical, but once again, South Africa is not growing at any great shape. So we'll be slightly ahead of that.

And you have been cautious in your outlook with regards to South Africa. [indiscernible], regarding cash from operations, this appears to be very low versus the prior period. Megan, it is going in your court.

Sure. So I think there are 2 factors there. From a working capital perspective, we did absorb cash into the business. We did have a bit of a hangover from the year-end in terms of creditors held back. So we paid those in this half. And then also, we alluded to we've seen a little bit customers holding back, so from a debtors' perspective, that is something that we've had a strong focus on in terms of managing that pretty closely. And then the other part, where a lot of our cash went was obviously into paying off the debt from an interest perspective, but going forward, that's going to be significantly less.

Irnest Kaplan. Any updates on the rekindling of the Microsoft relationship? That would be great if it could be done.

Yes, there's been -- there have been some discussions. They have said yes, at some point, it will be appropriate to have the partnership back, but right now is not the right time for them. They can only answer the reason for that. What's been interesting about us is we still remain the largest Microsoft dev shop in South Africa. We're still doing a lot of work around that. What's nice, as I've said before, that business has now morphed itself into the Google works, into the AWS space as well. And so it's a much better resilient business. I mean that's our digital enablement business used to be very Microsoft focused. Now it's much broader, and we're seeing the benefit of that. So it's quite interesting that sometimes out of a crisis, you actually get a much better result. And so I'm quite relaxed about it. I think, yes, it is still a little thing that will help from perceptions, but we've renewed all our international even American partnerships whether it's HP, whether it's IBM, whether it's SAP, so I'm not too focused on it right now.

Well, alluding to a new era for EOH. Megan, as a final word, you and your finance team the next 6 months, what is in store for you?

So I think it's really focusing on efficiency now, building down our ERP and driving those savings through -- and the organization and then also supporting the business from a GET strategy perspective. I think we really are now in a place where we're not looking backwards anymore, and we're looking forwards. And it's really exciting to be at this place finally and to be able to support the business.

And then, Stephen, if you allow me to show my own interest here on EZHQ. I mean this sounds like a first offering in the space. Perhaps you can elaborate. It seems to me a sequela going forward?

Yes, it's quite interesting is the one thing we realized as a Board and ExCo is that we're just a business. Yes, we do ICT and -- but we have HR, we have risk, we have compliance, we have internal audit. We have all these. We have finance. We have treasury. And we have all these things. We have an IT need as well. So I have an IT team that does our IT. But actually, if you think about it, my biggest bugbear was always that you go to an infrastructure team and you say to them, give me a better HR service or a better IT service because I just spend more money. And we didn't have the money, if you remember, 4 years ago. And so what we told the team was, if you're going to spend money on improving the infrastructure for us, do it in a way that you can resell it, because in that way, you keep it agile, you keep it cost-effective, you keep it focused because it's not good -- being good for us, but no one else wants it because then you've overcooked it. And what's interesting is the team have really done that. If I have a look at what our IT team have done and how that's changed our offering out to our customers, and we've seen that growth, you saw it on the screen on the management operator or the Infrastructure as a Service. But the GRC and the internal audit team, they have done exactly the same thing, and they've actually created this GRC as a service. We've always had payroll HR bits as a service, but now we can add all these other things. And so basically, I call it as EOH's Infrastructure-as-a-Service. And that's pretty exciting. And we're seeing quite a lot of traction on that. That team has already got their first contract. It's small. It's like ZAR 1.5 million, but it shows you that other people actually want what we've done. And we're starting to do things with various parts of whether it's the forensics that are now helping out some of the safety and security clusters, whether it's an internal audit. So I'm very excited about that because it was an idea and the team have gone and actually made it a reality. So that's pretty cool.

So we couldn't script this better. Nick Rogers is saying, firstly, congratulations on reaching this exciting point. So I think just take that for a moment. What are the main challenges on the local front, public and private? Which can be turned into organic growth opportunities for EOH, and where is the low-hanging fruit now that disposals are complete? Thank you, Nick.

Yes. Great question. I mean that's something we have been talking about. What's quite interesting is that we finished our rights issue, and I woke up the next morning and I didn't know what to do because I was done. And it's been so inward looking for so long. What's been really cool since then is to be able to actually go out and see customers. And what's interesting is a standard theme coming across South African customers, and it's this post-COVID consumer who is really looking for a better, more convenient service. And so brand loyalty has gone a little bit down unless you give them service. So all of them are saying, we don't have extra money. So I don't have some pool of money just to make things better. So where do I save to spend on my customer service. And a lot of that is about this digitization or change your business. How do we automate things, take cost out so that I can take that money and reinvest it in the front end of the business to make customers' lives more convenient. You've seen it with the retailers, the Sixty60s and all this Woolworths delivery and everything. They're being forced into that situation because that's what people want. They have realized they don't want to sit in the traffic every day for hours. They actually want to be at home and everything has come to them. And it's very interesting. I think there's a real opportunity there. And I think my experience of South African businesses, very creative around it. And it's just fantastic. We've got this end-to-end capability to help them. Obviously, international, the way the team over the year have actually focused that strategy, I think they have hit obviously spot on. We even got awarded Platinum status for Open Text in the Gulf, and we're only one of two. And that's quite amazing for a small business. And that's just because they were so focused on where that low-hanging fruit is. So as you see these bits growing, we need to be part of that and we are, which is good. The thing we need to manage and monitor is that you need to be very careful where you are spending your scarce resources with customers that are prepared to go with you, walk the journey, strategize, take risk with you because that's where you get the best results. And so we're seeing a lot of that coming out. And that's what really excites me.

Thank you very much, Stephen van Coller, Megan Pydigadu, great having you. I know you've got a full day now with investor meetings and media. So good luck with that. Thank you so much to our audience, 200-plus viewers for the EOH interim results today. And thank you so much for your interactivity. Great set of questions. Until next time.