Ipsos SA (IPS) Earnings Call Transcript & Summary

Hello, and welcome to the Ipsos Full Year 2021 Call. My name is Josh, and I will be your coordinator for today's event. Please note that this conference is being recorded [Operator Instructions] I will now hand you over to your host, Laurence Stoclet, Deputy CEO and CFO, to begin. Thank you.

Hello. Good morning or good afternoon to all of you, and thank you for attending our full year results presentation on the title is a successful model because as you will see, our 2021 performance has been exceptional, and it shows how soon our foundations. So really the key highlights on the presentation are on Slide 4 of the material, which is available on our website. And this is obviously, an exceptional growth that we had in 2021, with revenues well above EUR 2 billion and organic growth close to 18% compared to 2020 and of 10% compared to 2019. This is in line with what we had announced at the end of the third quarter to the financial community. And it is even slightly above what we had launched in -- at the end of October. And as far as our operating margin is concerned, this is an absolute record year for Ipsos with an operating margin of 12.9%, which is well above the guidance that we gave to the financial community back in July, which was to be around 11%. So what are the factors behind this exceptional momentum? On Slide there are 5 -- sorry, 4 of them. The first one, of course, is an environment which has been favorable from an economic point of view because markets have reopened, at least for most of them after the year 2020 negatively impacted by the COVID and accept certain sectors, we see that in a moment, we have grown double-digit in 2021 because there has been a strong demand from our clients with the pending a lot of, I would say, the habits have changed the way to confuse life direction have changed interaction with companies are doing more home office work, et cetera. So there was a need for our clients to update their knowledge about their consumers about their customers, even their employees. So strong demand has been addressed to us from all our clients. From a pure financial perspective, as we had in 2020, a plan of EUR 130 million of savings. It means that we started 2021 with the low-cost days. So -- and I see there are some parts of those savings that will be recurring and not just in '20 . And last but not least, our new models are called TUP for total understanding project has redefined our solutions around the 15 service lines and some very specific and emblematic product. And those adjustments have been successful in our model because it is well adapted to the needs of our clients, whether they are private companies or institutions. On Slide 6, you have the performance by sector. And as you can see, all the sectors are in the greener which means that they are all growing in 2021 versus 2020 including some of the sectors, which are -- were the most impacted last year in the automotive sector and the travel and leisure sector. So they are all back in both mode. In particular, our strategic sector, which is the most important one in terms of weight of our Ipsos revenue that's 24% of our work, which is done with the CPG sector. And those clients had virtually stopped doing any innovation and research when measures were taken in a lot of countries around the world in March of 2020 that they came back towards the end of the year, and they have had stronger demand, once again to update nonetheless their consumers, but also on billing to launch a lot of newer products or services. So going into Page 7, as an example, the growth has been fueled by the move of our clients in the CPG sector to understand how new offers that use technologies can be better use products, which are smarter, greener, for example, that is a very key for a lot of clients nowadays. You need to know that Ipsos is one of the leader order in the world for product testing. And as an example, in 2021, we tested no less than 9,300 products, new products, which is a growth of 24% compared to the previous year and even double digit compared to 2019, already solid demand in the area around the innovation. As another example on Slide 8, our contacting business has had also a good growth. But not only that, it's a activity, which was in 2020 impacted strongly by the COVID because we had a lot of face-to-face interactions with consumers traditional focus groups and the online focus groups, whereon representing in 2019, 18% of our business in the Qual area. This has moved in 2021 to 66%. So with all the adjustments that we have been able to do, the usage of virtual focus groups, our online communities, and it has had its own platform in terms of managing community and tenants. We have grown that business substantially. And it's a very interesting type of activity that we have because it's all about understanding in-depth the human beings, what they have in their mind. And this is, of course, in our general plan, which is to provide a 360 view of the people to all our clients. And this is the type of mediology where it's one also of the global leader and where we are able to bring fast innovation and new to the market. On Slide 9, an example, which is in an area which so very close to our hub, which we call public affairs . So it's all our activity with government and NGOs. The growth has been very substantial 60% over 2019. And even if we exclude those very large programs that we have run to help a number of governments, especially in the Western world to mentor the impact of the COVID. The growth has been 17% in that line of business. and there are here a number of examples of the work that we have been doing for the NHS in the U.K. supporting home testing of the COVID for the U.S. for the united nation and for other NGOs working on ground inequality in a number of markets. So that's really an area where it cost is also a global leader with all the right solutions that we were able to leverage that existed and that we were able to leverage to help a number of government in this learning particular situation. Last example that I would like to comment is our activity in the pharma sector on Slide 10. This over the years have grown almost double digit every year. It's an area that represents 17% of the cost business. And we have seen a lot of growth versus 2020, but also this 2019, especially around medical devices, our activity around Connected Health and our agility, thanks to Synthesio to help measure digital opinions and lessen to the web in relation with health care topics, and that has been also quite successful in the differentiation that it can bring to say, strong growth sector, which is the pharma sector. So altogether, this strong growth in fact, has been, in a way, aligned with our model and our -- the goals that we set up for ourselves back in the middle of 2018 that we had communicated to you and that you have on Slide 11. This is what I call our Fortune wheel and you have in the middle of that wheel, those objectives that was a ten-year plan until the end of 2021. Those were the objectives that we gave to the financial community back in 2018. We have reached and we have even over surpassed all those objectives. So starting with the growth. We had a plan, which was to grow between 2% and 4% of the every year. Actually, we ended at in average over those 4-year period with an organic growth of 4% and of course, the strong 18% in 2021 We had the plan to gradually improve our operating margin to reach 11% in 2021. Actually, as you have seen, we have reached 12.9%. And in average, we have over those 4 years, we have reached our goal of 11%. And in terms of our EPS, we had a plan to grow in average by 10% per year, and we have been able to achieve a 15% growth of our EPS. And if we look at the way it has been translated on our balance sheet on the left-hand side of this wheel. In terms of our cash allocation, we had planned to make between EUR 50 million and EUR 100 million of acquisitions per year. And of course, this is a grade over a period because some years, you can make more and some year less is contribute related to the size of the acquisition. We have quite acquisitive back in 2018 with the acquisition of 4 divisions of GSK, our German competitor as well as the acquisition of Synthesio. And you are seeing that probably, and I will come back to that, we have done a number of acquisitions also in the technology sector in 2021. So in average, over those 4 years, we have spent EUR 61 million in our acquisition program. In terms of our internal investments in CapEx, and those are mostly investments in technology, in our technology team, we had planned to spend between EUR 35 million and EUR 45 million. And in average, we have spent EUR 42 million. We had planned to have a gearing between 2.5 and 3x EBITDA, and we were at 0.5x, so well below. And in terms of dividend payout, we had planned to be between 25% and 30%. And in average, we were at 26%. So altogether, those goals were over achieved and, it proves of course the solidity of our model. And I will let Francois, our relation manager comments with the key pillars of this solid model on Slide 13.

Thank you, Laurence. Good morning or good afternoon, everyone. The good results just expressed are coming effectively from a solid foundation with the TUP Total Understanding project. And since 2018, we knew that we can rely on some pillars to go back first to growth in 2018 and to generate a sustainable growth with a new [indiscernible] starting from 2021. Despite pillars are, first of all, on the Slide 13 on the service line first. And we said we had redefined our offer this line to 15 service line. The idea by putting more granularity is to have a deeper focus on the activity and to be the best-in-class in this service line. Then also, you have the creation of a client organization. The idea is globally and look at to create and to intensify the dialogue with the clients and of course, to source the need to be close to them to develop business. Then in this pillar, this pillar, you have a strong local presence. So we are establishing [indiscernible] market. And the idea is to create a greater responsibility of the CEO in this market. This is key. They are responsible for their P&L, and they are as a consequence, more involved in the business. And then, of course, you have also 2 other pillars that is about developing the converse capability about technology, of course, but also about science, operation and expertise. And then about acquisition, I will develop that a bit later, but you have 3 kind of acquisitions. One is about the know-how. The other one is about the technology, and we made a set of acquisitions of our technology this year. And you have also opportunity to reinforce position within the service line. Moving to the Slide 14. You will see that to continue on the solid foundation is also key to talk about the new services. So this slide is dedicated for that. And the new services is an initiative that we launched in 2015. At the time, the new services represented 7% of the total revenue. And as a quick reminder, it highlights the performance of the alternative measurement, the innovative and digital components of our service. Today, I would like to say that we are proud to announce that 20% of revenue is generated by the new service. So it is implied double-digit every year apart from 2020, a particular year. And for sure, we plan to continue to grow in the new services. In few words, we have 4 categories of new services. The first one is to measure differently. It's all about alternative methodology of measurement. It could be passive measurement through the web listening, the listening of the social media, for example. It could be also about neuroscience, which is an alternative methodology of collecting data. We have the ability to get that in real time. I will talk about that later. It's about speed of execution, and we have an example then that is about Ipsos Digital. We have also 2 topics that are analyzing the big data and to express and to help clients through advisory, which is linked to the market research. On this specific topic of the client advisory. And if you move to the Slide 15, you will see that we received a big award recognized by FORRESTER for the marketing measurement and optimization. We were -- and we are the #1 for 2022, the marketing measurement and optimization is a specific service line tips, which highlight the impact that it has. And on this activity, we received the best car out of 10 vendors with the maximum rating, especially on the capability, the methodology and the market approach that we developed. I would say that we are happy and proud about this result because it is the success of synergy, synergy between people with consulting and technology to provide these services and all in all to improve the business performance of our clients. If you move to the Slide 16, we have another example of success. This success is about it. Ipsos.Digital platform. It's an internal development on technology. And it is a DIY solution, the retail sales solution, which allows to our clients to create within intuitive platform, their survey online to get access to our analysts or to obtain almost in real time, the data to have answer to their question. We are proud of this success because it is a success in terms of technology, and it is also a commercial success. In terms of technology, this is a simple and intuitive platform. It covers a wide range of services from the traditional questionnaire to a testing of more complex of idea. And all that is done with the DNA of resource. We have the quality. And whenever it did, we have the support of the researcher to at least in the creation of the survey. And we have also the reliability with the access and the quality of the panelists that we use. About the commercial KPI, we are now live in almost 50 markets. The revenue is at EUR 35 million, it is a big success within 2 years because we started from scratch in 2020. And we reassess the target during the year because this initial target for this year 2021 was at EUR 25 million. And we have a target in terms of revenue at EUR 100 million for 2023 with this ability to attract new clients to the Ipsos.Digital platform. Now last but not least, about the foundation. We talked about the acquisition a bit earlier. One component is key in the is the ability to do acquisitions. Laurence did, but since 2018, we made an average EUR 61 million of acquisitions per year. In 2021, we have made a set of 5 acquisitions. They are still in line with our philosophy, meaning 3 kind of acquisitions, the tech having a link with the market research, the know-how and the opportunity to reinforce service line. You have on the left part of this slide, the acquisition we made. So the 31st ones is net metric, MGE data and an our technology acquisitions that are serving the audience measurement service line. With this technology, we are looking the ability to serve contracts to win new contracts, and we have the ability to develop the technology, so it's key. Also, we had an acquisition in September 2021 of Info tool. It's a powerful retribution tool to the client. And last but not least, we made 2 acquisitions more recently to reinforce the service line of mystery-shopping employee relationship management, ERM, which are KARIAN and WeCheck. On Mystery Shopping, we are reinforcing our position of leader after the acquisition of [indiscernible] 2 year back. And ERM, we are reinforcing this opportunity to be in a service in which we deliver it. And now I leave the floor to Antoine to develop the KPI for the full year results 2021.

Okay. So good morning and good afternoon to all of you regarding the financial results of Ipsos. So just to confirm again that it's a record year for us. We have more than EUR 2 billion of revenues then I am on Slide 19, the 12.9% operating margin at 12.9% and a record free cash flow of EUR 244 million. You're looking at Page 20 with more details on our income statement. So first on the revenue, if we compare at current and current rate and current scope, we have an increase of the revenues of 16.8%. Organically, again, it's an increase of 17.9% with exchange effect that play negatively by 1.4% and perimeter effect positively by 0.3%. Then on the gross margin, we see just after the revenues, which are mainly variable indirect cost. We have an increase of ratio of -- we are now at 64.7% compared to the 64.2% that we had before. And we consider, in fact, this increase of 0.5 points as something that is recurring. Then between the gross margin and the operating margin, you are all the indirect costs, mainly payroll cost and also all the environment costs and mainly the IT and leasehold of buildings. And this -- again, this operating margin has reached a record with 12.9% combination of a very well-controlled cost base because of the bundled 2020 and a strong increase of our revenue, and I will go back with more detail regarding the breach of how we have moved from the 10.3% in 2020, to this 12.9% in 2021. Then the overall nonrecurring that are mainly reorganization costs they are at the same level than last year. On the finance cost, as we have strongly decreased our financial indebtedness and also as we had before part of our financial debt was with USPP that was at around 5% of interest rate. Because of this combined effect, we are now only EUR 14.8 million of financial cost this year compared to EUR 20.6 million last year. The overall financial costs are mainly the financial cost linked to the rents of our buildings and because of the IFRS 16 rule, we have reclassified then between the part that is an amortization that is in the operating margin and the path that is linked to the financial cost that you can see here. The decrease compared to last year is mainly due to financial exchange differences that we are playing negatively last year and that have almost no impact this year. Regarding the income tax, they are calculated at 25.2% of our income before this income tax, which is the average of what we are paying depending on all the countries that we are in. Then we have net profit attributable to the owner and to the parent company is EUR 183.9 million. It's a strong, very strong increase of 68% compared to last year. And our adjustable net profit attributable to owners, which we consider is the best indicator because we are not continuing to that or that is linked to amortization or nonrecurring elements is growing by 61% with a record of EUR 209 million. So looking at more details on our revenues. You have on Page 21, the split by regions. Our strong -- our largest region is the EMEA region, where we have also the strongest growth compared to 2020 and also compared to 2019. This is the region where we have benefited the most from all the contracts with government that were linked directly or indirectly to the pandemic. In the Americas, we are growing compared to the both basis, 2020 and 2019. And in fact, the most negative impact played in 2020 compared to 2019, mainly in the Latin countries. And in Asia Pacific, this is the only region where when we compare to 2019, we are still slightly negative. And the main impact is due and as we have always said, is due when we have lockdown, we have long lockdown and strong lockdown in some countries, and it has occurred mainly, as you know, in some Asian countries and has continued in 2021 in some of these countries because of their positive of zero COVID. So overall, if we look also between developed and emerging countries, we have a growth in these 2 type of countries, but it's larger in the developed countries, which is not what we see normally that is because of the situation in Asia and on the contrary, the situation that we had in the EMEA with large governance programs. Also, what we can highlight and due to the situation that we are facing these days is that if you we look only at the level of revenue that we have in Russia and Ukraine altogether, just to be noticed that it's less than 2% of our total revenues of the revenues of the group. So moving to Page 22. You have here a split of revenues by audience, which are the summarization of our different service line, whatever the type of audience that they are reaching whatever is consumers, it's clients and employees, it's citizens and doctors and patients. There is a lot of link to what we have already seen by sector. So I will not go into a lot of details, but consumer is mainly linked to the CPG sector, and this is why you can see here the good level of growth. Clients and employees is mainly where we are most of the negative COVID impact, and it's also linked to what we are doing in the automotive or in the travel sector, for example. Citizens is obviously linked to what we are doing in public affair and doctor intact patients, what we are doing in the petcare business. So moving to Page 23. I think it's important element. Over years, the online -- so these are the revenues did by data collection mode on what we are doing on quantitative studies that are presenting 70% of our total revenues and the weight of the online was continuously growing over years when it was almost at 0 in the year 2000. And obviously, the COVID situation has increased the path for growth, and that's why we have moved from 55% to 60% in 2020 and continuing to grow to 62% in 2021. And in the meantime, we have an increase mainly linked to the face-to-face and linked to all the surveys that we were not able to do any more directly meeting the people and that we have been able to move to online. What is positive in this trend is that the margin -- the direct margin on our online business is higher than on the other data collection mode methodology. And that's why you have seen already the increase of our direct margin on our gross margin. So moving to Slide 24. It's a highlight of the saving plan, the follow-up of the saving plan that we have launched in 2020. In 2020, we have sales of EUR 113 million compared to 2019, and we have said that some of this impact will continue in 2021. Our forecast was to have a continuous saving of EUR 20 million, but we have been even able to achieve more by EUR 53.5 million, and mainly due on the travel costs that we have continued to cut also because the pandemic has continued more than expected and also on what we have worked on renegotiation and rents and other types of savings into that mean. So then I think one of the main important slide in terms of -- in this financial part of the presentation are our change in the operating margin ratio. Just as a reminder, our basis in 2019 was around 10%. And because of the plan that we have launched in 2020 in order to save cost and specifically the call to action plan. On a yearly basis, we are able to save to increase our operating margin by 1%. So that's why that we consider that our new run rate is 11% before the impact of 2021. So the impact of 2021, we can first consider all the impact of the digitalization mainly the productivity gain on payroll by 1.5%, then the impact of gross margin of 0.5% that we have already spoken about, and also additional savings on overhead by 0.6%. Then another effect that is negative, this one is due on the variable compensation. Because of very good achievement of 2021, we have achieved more than achieved our target and our target or internal target for the calculation of the variable compensation is always above our budget. So it's a target that it's not so easy to achieve. But this year, we have overachieved our target by 120%. And because of that, we are able to pay to our employees bonus of 150% of the normal achievement. So that's why you have this strong increase year. Then we have also quantified the positive impact of the COVID-19. It's a combination of the additional revenues that are linked to government programs and also the negative impact of some surveys that we were not able to conduct because of the lockdown and pandemic situation in some countries. So overall, we have considered this impact by approximately 2% positively in our revenues. And they are, overall, with a significant operating margin of around 25% because they are -- it's a net additional and a marginal margin. And that's why the positive impact overall is by 0.8% of our total margin of 2021. It's something important to consider when we will speak about what is a recurring level of operating margin for the next year. But the acquisition has not played has not impacted the margin and the exchange rate who has played negatively on our revenues have also slightly played negatively on our operating margin by 0.2%. And that is paying of 12.9% overall operating margin. Moving to the Slide 26, our cash flow statement. Again, a record year. What can be highlighted here. So the gross operating cash flow is linked to -- indirectly to our very good level of operating margin. Then on the working capital task, we have been able to continue to improve despite the fact that we have a higher level of revenue and that we have a growth of revenues. It's thanks to a good control of our DSO of our term of payment with our clients and also because we are doing more online surveys, We are delivering our survey in a shorter delay. And so we have cut some hidden delays before collecting the cash from our clients. On the income tax paid, you have a strong increase because, as you know, last year, 2020, a lot of countries have delayed some payments in order to help their companies local need. And obviously, we have paid that beginning of 2021 and during the course of '21 because of our good results. Property, plant, equipment and intangible and financial assets we are back to a normal level of spending with EUR 45 million. Net interest paid is not a surprise by what you have seen on the decrease of our debt and in our P&L. We are paying only EUR 30 million this year. And the lease payment is a line that we have to show here because of IFRS and is EUR 44 million. So we lost a free cash flow record of EUR 244 million, slightly under the one of last year was EUR 265 million. Our acquisitions are linked to all the ones that are listed [indiscernible] and the weight of cost represents EUR 30 million. Then you have the share buyback program that is linked to the free share that we are giving to our employees. So it's only because of this reason that we are buying shares on the market in order to not be diluted and it's around EUR 9 million for this year, 2021. We have been able, as planned to pay back some of our debt and most were linked to Schuldschein on the German market by 4 -- EUR 94 million plus EUR 48 million. And then we have paid dividend an overall level of dividend of EUR 40 million compared to the one that has been divided by 2 in 2020. And we achieved the year with a very strong cash position of almost EUR 300 million. To confirm the good cash position, you can move to Slide 27 where you can see that our net debt is now only 13% of our equity. Our net debt on EBITDA is only 0.5x, and our interest coverage is 22 time. We have successfully refinanced the Schuldschein at the end of 2021 of EUR 75 million with 5- and 7-year tranches. We have more than EUR 300 million of credit lines available, and you will see more on the next page on that. And we are planning to pay a dividend of EUR 1.15 per share, the decision will be taken the 17th of May 2022, and the payment will be at the beginning of July 2022. Last slide on the financial part is Slide 28, where you are -- have the split of our gross debt with EUR 477 million by maturity. We have EUR 26 million to pay back in 2022, EUR 75 million in 2023. And as I have said, we have more than EUR 300 million of credit lines to issue, there is no issue here and the bond that was launched in 2018 to be paid in 2025. And what you see in 2026 and 2028 are the renewed Schuldschein that we have done at the end of this year, 2021. So -- and I will leave the floor to Laurence for speaking about the outlook for 2022.

So of course, the outlook will be a lot focused on I would say, our ability to continue to grow and to continue at the same time, improve our profitability on, I would say, an underlying basis, as you have understood that there were some exceptional items in our 2021 financial performance. But first, let's say that a big part of our strategy and focus will be around people and technology, our ability to pivot quickly to new market demands to continue to improve productivity and speed in our data collection and analysis and our ability to further invest to automate our processes and digitalize our fieldwork. There are 6 priorities for 2022 that you have been exposed to already during our Q3 presentation by Ben Page. One is around the consistency of -- and the adoption by all our leaders of our values and behaviours because we believe that global consistency and discipline is, of course, left too, on one hand, delight our clients, but on the other hand continue to improve our margins. We want to continue to raise our profile strong leadership. And you probably know that we have been ranked as one of the most innovative companies in the market research industry we need this to continue through our experts and white paper. For our team, we want to be the best place to work, including when they work from home, and we need to provide to all of them the best available tools to do so. We want obviously to continue to drop further our solutions and products relying on our 15 service lines to do so and to drive innovation through technology. In relation with some of those priorities on Slide 32, let me just mention the number of specific actions that we are taking in 2022 in relation with a better use on our tool or appraisal and promotion, including to make sure that we will do so for all in the company. So equal equity ratio is something that we have developed in 2021 throughout the group and that we will be using to do so. We want to further strengthen our e-learning program. We have had Ipsos for the last 15 years and we learned the platform along a lot more in terms of training. We will further increase our contribution to Ipsos Foundation, which is about making a positive difference for the good of the society, and it's also a strong motivation for our teams. And last but not least, and it is in the criteria for the individual objectives of our CEO, we will further progress on general equality at the most senior level in 2021. We will focus a lot of our actions on Slide 33 on clients. So this is a program that we have launched, which is called Client First. This is one of our value, one of our focus this year. We intend as well to leverage the investments in our data collection platforms that we have done in 2020 and 2021, really getting the fruits and the benefits of those investments in shorter cycle times and improved margins. This is including integrating into tools as a stronger mechanism for delivery of data directly to our end clients. we will as well roll out some very specific and high-quality panels all across Europe that we call knowledge panel, and we have been successful in doing so as of today in the U.S. and in the U.K. And last but least, we will further continue our acquisition program in the area of technology and some specific advisory services. This being said on Slide 34, our signals of a changing and uncertain world and I have listed here peaks of them. And this is in this context that we will give you our perspective for the year knowing that there are some geopolitical tensions that have materialized between Russia and Ukraine very recently. Unfortunately, I would say, there has been and there is a development unfortunities of inequality within countries that also in the same country between high-income people and lower income people and we have also as well a different dynamics in terms of demographics between aging populations and emerging countries are growing much faster. Of course, we need to take care about the planet about our environment. Our planet is fragile, climate change is having an impact, I would say, in many different areas that it as is, of course, participating to a number of ESG initiatives to reduce our own carbon increase, even though our business is not necessarily one of the most [indiscernible] on the planet, but we are taking our share of contribution in that. We have, of the COVID it is not totally finished. We have had new variance. So -- and it has very strongly changed the ways for our thinking and behaving and living their lives. We have seen some shortages in the supply chain. We will see inflation as well of commodity prices that we need to adapt to. And last but not least, the technology is evolving even faster than ever. The world of data, AI, Metaverse, which is for us more an opportunity than threat as we have tried to explain in this presentation. So at the end of the day, with this changing and uncertain world, we believe that we have proven that Ipsos has developed a sustainable and successful model on Slide 35. The simplification of that model is to say that with the best people of our industry and we intend to continue to be the home of researchers, as we say, internally. So the best people means more pricing power. The best people is of course the best talented technology people that we will have in 2022, around 1,000 people working in tech our organization dedicated to technology. And thanks to those technologies, all of us spend less time, less time to project for our professionals and means as well a better margin. So altogether, we remain confident for our growth in 2022. We have an objective of an organic growth of 5%. This is the organic growth that we had by the way in Q4 knowing that our order book going into 2022 is quite strong at plus 15% compared to the order book at the end of 2021. So we believe that this is, I would say, a reasonable number, knowing that the underlying growth, if we do not count the effect of those large COVID testing programs that we had run for certain western government. Our organic underlying growth will be of around 7%. So we are confident in that model where we have reached a new baseline for our operating margin. And we believe that the operating margin for 2022 will be between 12% and 13%. Thanks for listening and Francois, Antoine and myself are available for any questions now.

[Operator Instructions] Okay. It doesn't look like we have any questions coming through. So I will hand you back over to the speakers.

Well, I would like to thank all for attending this conference call. Myself, Francois and Antoine remain available on a one-to-one basis. If you have a further questions. Thank you.

Thank you very much.

Thank you.

Thank you very much for joining today's call. You may now disconnect your handsets.