Jastrzebska Spólka Weglowa S.A. (JSW) Earnings Call Transcript & Summary

I'd like to welcome you to the earnings conference of the JSW Group. We would like to present to you today the results generated by the group in Q4 2021 as well as for the full year 2021. I would now introduce the management board team, which has been in place since the first of September 2021. So Edward Pazdziorko is responsible for production; for trade policy is responsible Sebastian Bartos. I'm responsible for coordination of the overall work of the management team. And then Robert Ostrowski is responsible for finance. We also have Artur Wojtkow who's responsible for labor issues and social policy. Today's meeting is being streamed for presenting in Katowice today at the meeting where there's a government delegation and there are representatives of all of the mining companies that have signed an agreement with the trade unions. Now I'd like to say a few words about our operations. As you can see, all of the key ratios are labeled in green, with the exception of coal production. This is something that we've been able to achieve despite the fact that production was lower. It was a difficult year, we had COVID. We also had difficult mining and geological conditions. These are things that should be emphasized. On top of the commitment of our employees, we've been supported by the market environment. So we've had 13.7 million tons of production, so down by 4.4%. So in my mining experience, the tolerance of plus/minus 5% compared to the plans in terms of working in the face of natural conditions, this is an acceptable tolerance. And of course, our production director will talk about that later. We produced the same amount of coke. So in terms of coking coal, we had 11 million tons, which is a similar quantity to the previous year. So coke production was up by 3.6 million tons and this is a result of focusing on satisfying the market's needs. What's also important is corridor works. And basically corridor works talk about the develop of mines. Our mines are not dwindling or dying. They're developing, they're growing so it's up by 6% so we had some 77,500 running meters. So this was up from the previous year as I said. Then coal sales, we sold nearly 15 million tons of coal which is a very good result so we're reducing the coal in the coal yards which we have accumulated in various market periods so the commercial sales division is gradually selling down those inventories. We have enormous growth in sales. Revenues were up above PLN 10.5 billion. So that's an increase of more than 53%. As I said at the beginning, the market environment which was conducive to our operations can be seen in the prices. So the coal prices -- coking coal prices have moved up by nearly 42%. Coke prices in turn, were up by nearly 63%. If we look at the economic side, so our EBITDA -- so this is net of nonrecurring events. So it's PLN 2.9 billion. So this is an extremely good result. And then we have the net result, which is nearly PLN 1 billion of profit where we had PLN 1.5 billion loss in the previous year. This is something -- this is a result of the hard work we've done as well as the favorable market conditions. I'd like also -- I'd like to reflect on one other thing, and this is something that we haven't had in our presentations up until now. JSW is well aware of what the market expects of us, what stakeholders expect of us. We're paying a lot of attention to ESG policy. So for the first time this year -- for a full year period was what I'm trying to say, we're looking at the major factors in environment, society and governance, and we're reporting on them. What I'd like to point out is that we're a company that is interested and focused not only on its customers, but we're also interested more broadly on our stakeholders. And so sustainable development policy is very important here. Corporate governance and society issues are also very important. I'll talk about this at greater length a little bit later in our conference. Right now, I'd like to I draw your attention to a few things as I discussed this slide, and I'll just pick a few matters. So if I look at the environment issue, we have that red arrow, which means that our carbon footprint is on the rise. We're one of the few companies that has been reporting its carbon footprint since 2017. Last year, it was 7.2 million tons of CO2 equivalent. This is not something that we forget about. This is a result of the original position. So we've been able to capture some 99 million cubic meters of methane. And so that's a high percentage of the methane that we've been able to extract or drain from our mining conditions. And so this is a way in which we can affect the CO2 production by draining methane. Methane is 28x worse in terms of greenhouse gas effect. And so as we convert that dangerous gas into heat and into electricity, well, first, we ensure safety to our employees. And second, we gain benefits by utilizing this product. In terms of society issues, we're very keen on our relationships with the environment with which -- in which we operate. We understand the impact our operations have on our environment, our surroundings. We don't try to shirk that responsibility. We're trying to intensify our environment, pro-environmental impact in the society. And so in terms of governance, well this has an impact on a wide variety of issues. And up until now, maybe people thought, well, things will just sort of go the way they go. We're thinking now about ethics amongst the code of conduct amongst our suppliers. In our governance policy, what's also very important is to activate our compliance unit which works not only in JSW, but across the corporate group. And so we can look at the operating results. And I'd like to ask our Technical Director to walk us through the operational results.

Welcome, ladies and gentlemen. In terms of production of coal and coke in 2021, well, the figures are as follows. In Q4 2021, we produced 3.57 million tons of coal. This production was up 7% versus Q3. If we look at the quarters in 2021, we can say that in Q2 and Q3, those were difficult quarters in terms of performing our tasks, and they contributed to the biggest shortfall. In Q4, we can say that it was the best quarter in terms of production. And we saw progress in the mines as well as on the various longwall faces. So if we look at the annual output -- as the CEO mentioned, we had 13.75 million tons of production with the breakdown into coking coal, which is 11.005 million tons. And then we -- that was the coking coal. And then we had 2.748 million tons of steam coal. And we can see that the total output was down by 4.4%. But as I mentioned, this was due to what happened in Q2 and Q3. The major difficulties in achieving our production targets were mining and geological conditions. Basically, they adjusted our plans. They were the reason for the slowdown in our production along the longwalls. And we also had the downtime of some machinery, which was utilized in the longwalls. And if we look at the geological mining conditions, this is something that appears in all mines, especially Borynia, Zofiówka, Pniówek and Budryk. Regardless of that, if we look at the results year-on-year, so we can say the percentage of coking coal is up, and so it's 80%. So in 2021, we -- it had -- that percentage of the total output had grown by 3% versus 2020. In Q4, on average, we had 24 active longwalls. So we had an increase of 3.4% from Q3 to Q4 in terms of the number of active longwalls. But if we look at the annual activity, we can say on the average, we were operating 23.2 longwalls in 2021, which was slightly down from 2020, it was down by 4.9%. So then we had 24.4 longwalls. If we look at our corridor works, in Q4, we did 16,700 tons. So this was down by 12.2% versus Q3 2021. Nevertheless, the difference in running meters is a matter of normal activity, something that's under control, and there's no threats to our ongoing work in terms of moving equipment from one longwall to another longwall and starting the tunneling operations. If we look at the full year result, we can say that this result is one of the best results we've produced in the company in its entire history from the moment when it was formed. So we did 77,487.5 meters, running meters. And so we did 68,680 meters using our in-house resources and 8,800 meters was done by third-party companies. So we can say that in Q4, we had a large number of longwalls that we were in the process of moving equipment. So generally, I can say that we have a result of additional kilometers. So this gives us pretty good proxy for the forecast for the future. If we look at our coke production, Jadwiga, Przyjazn and Radlin. If we look at the quarterly production, we can say that we did 892,000 tons compared to Q3 when we produced 923 tons (sic) [ 923,000 tons ]. This was down by 3.4% from quarter-on-quarter. However, on an annual basis, we did -- we produced 3.6 million tons of coal. So it's up by nearly 10% versus 2020. So our coking plants have maintained a high capacity utilization ratio of 98.8%. So this was higher by nearly 3 percentage points in terms of utilization of capacity. Przyjazn had the highest amount of production followed by Radlin and then Jadwiga. And so the products produced -- well, of course, blast furnace was the top performer, then we had industrial coke and then we had small fractions. Thank you very much. Thank you very much. Now I'd like to ask our management board member responsible for sales to tell us about the market environment.

Thank you very much, ladies and gentlemen, let me say a few words about the market context. What we needed to do as a company with our products on the market environment and having in mind to our customers in terms of supplying coke as well as coking coal. Last year, 2021, was a demanding, challenging year. As we presented to you, I think, 3 quarters ago at one of the results conferences, this was still a COVID year which generated a large number of problems and difficulties. I mean, we did as well as our customers had to grapple with those things. And then we had a high level of inventories. And we'll talk about those inventories in a moment. And we had relatively low prices for steel as well as coking coal. This year, realistically speaking, was a year of dynamic changes. And you can see that being borne out by these ratios. And these figures will basically tell us quite a bit. So let's look at the production of steel. So we had an increase at the global world level of some -- little under 4%, 3.7%, from 1.8 billion to 1.9 billion tons. But we can say that in the EU, steel production is up by more than 15% from 132 million tons to 152 million tons. What we explained to you with previous conferences, the global economy in China and India were not affected by the COVID crisis to the greatest extent, to an equivalent extent. In Europe, this problem was more pronounced. That's why that year was -- 2020 was more difficult, and that was partially because of what happened in 2019. The original -- the base point was low. And so we saw problems arising also in the second half of 2021. And we can say that the healthy relations between coal -- coking coal, coke and steel, that's one of the differences. So we can say that Europe was much more -- sustained much bigger declines as opposed to the Asian market. And this reflected -- was reflected by the steel prices. And so we can see that steel was the major driver for other products. If we look at flat products, the price moved up from $537 to $1,162, which is an increase of 116%. So this was a record-breaking growth. And so we can say that we've not recorded such high levels in the past. And if you look at long products, so rods, so there's an increase of the price by 66.5%. And so it's not as big of a increase as opposed to the flat products. So this is construction industry production. And now if you look at the development of the steel market, we can see that other raw materials started to follow that same price. So we can say that the coking coal spot prices were also moving up. And so coking coal spot prices moved up from $124 to $225. So this is an increase of more than 82%. And if we look at the semi soft products, which are lower quality coal grades, we have an increase from $69 to $155, which is an increase of almost 124%. And basically, the growth rate is different because of the shortage of those products. But what we need to show you, there are also changes that took place in the calendar year. This is not a reference period. Having in mind the overall nature of our commercial contracts, the ones that we negotiate with our customers on the market, the ones where we used negotiated formulas where we use the previous quarter and then we have also contracts where we have the Nippon Steel methods and the reference period is always shifted backwards and so when we compare what's important to us in terms of obtaining the necessary price levels from the markets, for us the period is from October 2020 to November 2021. And so if we look at that growth rate, it's around 48% and if we look at that kind of shifted a year, we can say that the growth -- the difference was $129, $191 and that's the difference which will be incorporated in our long-term contracts. And if we look at the coke prices, we have a similar state of circumstances so if the calendar year is not the reference for the benchmark period, one thing that does jump out at us if we look at the differences in the coke is -- so, if we look at last year's coke, it grew at a fast pace than coking coal. It was a little bit -- in Europe, a little bit smaller than in China. And so it's an increase of more than 99%. But if we look at blast furnace coke and the overseas markets, it's $292 to $480 and that's an increase of 64%. And so if we were to look at that reference period that we use in our contracts, when doing the negotiations, we can say that coke market's a little bit different. We have fewer price formulas. To a greater extent, these are market-based negotiations. But if we look at these negotiations, we look at what's on the table in a given moment in time in the market. So the -- we can say that the reference, the benchmark for us is the increase of roughly 48%, which is quite similar to what happened in coking coal. So what about the prices of JSW's products in this period of 2021? Well, we can give you the short commentary. So if you look at our coking coal prices versus TSI Premium HCC prices. So we have the graph here from Q4 2020 to Q4 2021. Generally, we can say this range is from 85% -- 86% and 92% (sic) [ 93% ]. As you know, there's a discount because the quality of our coal -- is it a discount to the top-quality Australian coal grades. And so we can say that, that percentage is more or less flat in Q4 2021. It's a little bit lower. But we have to remember the situation that we had in 2021 in terms of the level of production. Mr. Pazdziorko already presented that situation for the full year and Q4, which was a good production year. But if we look at the annual period, we had some shortages, shortfalls of production. And so we had to talk with our buyers. So some of the quantities in -- we had to catch up because the long-term contracts we had with business partners that are most important for us, because with these business partners, we're working for not just a given year, but for many years. We have contracts that build our stable position. And we have to take into consideration every market situation, not only the bad one we have and certain difficulties that we're always able to resolve but we have to look at the current set of circumstances. And what's happening at the end of the year is also something we discussed with our business partners. If we look at TSI Premium HCC spot prices, I talked to you a little bit about this year and how it was so volatile. And so the reference period is shown here in the gray box, which is the last 5 months of the year from July through December. So we can say that the coal prices were around $100 -- $100 plus. And this graph shows you -- that we show you is from July. But we can say that the first half of the year was quite soft. So we were around $100, $110 per ton during that period, and that has an impact on the company's results in H1 2021, but we were able to offset that through our other operations. And this is the advantage that coking coal and coke group has. And so if you can look at the ratio of coking coal to coke prices, we can show you that the prices we've commanded and the growth we've been able to achieve outstrips the share or the prices that we can see in the international markets. We could have been more aggressive in our price negotiations and so we can say that we're above these indices, and that's against the benchmark prices. In the coke segment, and we'll talk about that. And Mr. Ostrowski will show this to us in details -- we can say that this built the results of the company in the first half of the year. If we look at steam coal prices, here, the situation is quite stable. This market has its own conditions, its own sort of characteristics. So we cooperate mainly with the national utility scale power plants. And so we have annual contracts and so we can look at Q3 and Q4 for steam coal prices across the year. And we can see a couple of things. The prices agreed for 2021. This was done in mid-2020. This was a difficult period when the utility sector was not taking receipts or deliveries from coal companies, and that's one of the reasons why we had the inventory upswing. That's why there's a downturn in the price level from the previous year. But some of the coal we had available to us was offered to clients according to Q4 spot market prices. And that's one of the reasons -- that was the first thing that started to show what's happening in the power sector and the utility sector. So if we look at the sales of coal produced in the group, of course, Mr. Pazdziorko already talked about production. And then Mr. Cudny also talked about some of the details about the figures we've produced and the financials we've generated. What I can say, if you look at the difference between Q4 and Q3, we increased our coal sales by more than 9%. If we look at the full year of 2020 and 2021, we've been able to increase coal sales by 8%. That applies both to coking coal and steam coal plus coal sales to external customers. So outside of the coking plants in the group, if we look at coal sales to internal customers, this shows you by how much we increased sales to our 3 integrated coking plants. Here, we don't have such major swings as we've seen in external customers. It's quite simple to explain. Having in mind what we said previously, the margin -- the high margin we were able to generate especially in the first half of the year, it's obvious that the production potential we have should be harnessed to the greatest extent possible. So we should have a capacity utilization ratio as close to 100% as possible. And so that's why the coal sales are being done on a regular basis. Now if we look at revenues on sale of coal to external customers. So we have a general overall increase in sales and that increase in sales meant that we also reduced our inventories that we had amassed in previous years. So we were basically rolling down our inventories during a period in which we had much better financial conditions for the sales of coal. And so we have had higher coal prices. In Q4, we were able to absorb them in our contracts. And that means our top line in Q3 and in Q4, we saw increase of more than 71%. And if we look on an annual basis, the increase was almost 43% in coal. If we look at the average selling price of coal to external customers comparing Q3 and Q4, we moved up from PLN 610 to PLN 1,081, that's an increase of 77%. And if we look at the full year price, we moved up from PLN 220 to PLN 232 -- so sorry, from PLN 436 to PLN 619, that's an increase of 42%. And so we have a slight decline in coal sales from 2020 to 2021. This was because of the -- what I already mentioned, where we had the power companies not taking supplies -- not taking receipt of supplies of coal. And so this is an example that I already discussed with you. Now if you look at the sales of coke. In Q3 and in Q4, we were up by 4%. If we look at the comparison between 2020 and 2021, we were down by 0.9%. This is the result and the conclusions are as follows, that the coke segment is a stable segment. We utilized the capacity at the same level -- at the maximum level, we try to utilize it to the greatest extent possible. And that's why the average coke sales price in Q3, Q4, it's an increase from PLN 1,328 to PLN 1,753, which is an increase of 32%. One word of commentary on that growth. Why is it lower than in the case of coal? Coke from the beginning of the year from Q1 had a much higher price and the negotiations could be run slightly more aggressively. And so the prices that we had in Q3 were already high enough, that moving into Q4, the prices only bumped up by another 32%. But if you look at the full year prices from 2020 to 2021, well, that increase is some 63% and that generated -- accounted for our result. And so we can say that the top line, the revenues and the sales of coke and hydrocarbons to external customers. Well, this is a result of prices, and we have an increase from Q3 to Q4 of 35%. And if we look at the increase from year-on-year, so we can see that the increase is nearly 70%. And so basically, this is quite similar to what we achieved on the average coke price. And so having a stable coke production, we can say that basically, the top line depends basically on the prices since we have 100% capacity utilization, nearly. If we look at inventory of coal and coke, after a difficult year, we started the year where we had a high level of volatility. We had nearly 2.2 million tons of coal in our coal yards. As you could see, after every quarter, we were able to reduce inventories from 2.2 million tons to 0.9 million tons. So that's a difference of 1.3 million tons of coal that we are able to sell to our customers. Part of that was sold at high prices. So the beginning of -- at the end of Q3 and Q4 and that means the -- what we've done in terms of that rate of selling off inventories, well, this has certain limits in terms of transportation limits, so bottlenecks. And so we can say that it's not possible physically to ship more from the mines to the coking plants, but we use the situation to the greatest extent possible. And we can say that the decline here is clear, and this has been reflected by the financial results, as we've sold off. So what we have in inventories, well, under 1 million tons, this is close to the operation level. The level of inventories were going to have -- so this is how we've ended up 2021. So it's quite close to what we need to have in place. If we look at the inventory of coke, this is what we usually have in the 3 key ports. So this is from 150,000 to 200,000 tons. This is a level of inventories that we have to maintain in order to fulfill our overseas orders. And we can say one word of commentary here that in Q2, Q3, 2021, we've had a very low level of inventories. And so this was because of a few orders by ship. So this level of inventory is clearly too low. But at the end of the year, you can say that we're a little under 240,000 tons. So this is also a level of operating inventories. This is what we need to have. So if we -- so we had one shipment on the first of January, which was booked this year as opposed to the end of last year. But the level of inventory is maintained that we're able to fill the shipping orders on an ongoing basis -- on a smooth basis. That's it. Thank you very much. Now I'd like to ask Edward Pazdziorko to tell us a little bit about what we've been doing in terms of our capital expenditures.

So if we look at JSW Group's investments, the CapEx at the group level in JSW, JSW KOKS, we have this done on an accrual basis and on a cash basis. So if we look at this CapEx, I'll show this without the consolidation exclusions, eliminations. So Q4, we spent nearly PLN 534 million, and this was up -- that CapEx spending was up by 29.2%. If we look at the annual comparison between 2020 and 2021, we had PLN 1.7 billion CapEx spending in 2021, and this was down by 10% compared to 2020. Generally speaking, if we look at the various segments of our capital expenditures, you can say that the coal segment is the biggest segment, and attracts the most CapEx. And so in 2021, we had PLN 1.358 billion, which was a little bit down from 2020. This was because of the transfer of certain mines to the mine restructuring company, SRK. And so as a result of that, the CapEx was not recorded and also lease obligations. And so if you look at the coke side of things, we can say that we have a higher level of execution of our key investments to build battery #4 in the Przyjazn coking plant and also the power unit in the Radlin coking plant. Then we have other -- the other segment. We can say it's smaller because we had a lower level of planned CapEx. Now if we look at the group, incorporating on a cash basis, we can see -- and this included also paybacks of principal. So this was PLN 470 million. And this, in Q4, up by 18% over Q3, if you look at capital expenditures in the JSW Group on a year-on-year basis, we can see it is PLN 1.8 billion, which was 20% down from 2020. So this decrease in CapEx by JSW, so we had a decrease and also a lower planned level. In 2020, they were higher. So in Q4 2019, we had bigger expenditures that were held back until 2020. And so that increased in turn, the difference on a year-on-year basis as we compare 2021 to 2020. If we look at capital expenditures, in JSW, in Q4, we spent nearly PLN 382 million, and this was up in Q4 versus Q3 by 11.6%. So we can say that on an annual basis, we had nearly PLN 1,358 million in CapEx spend in 2021. So we were purchasing finished capital assets for PLN 108 million. And then we had investment construction of PLN 510 million. Expenditures on expensable mining pits, PLN 651 million. And so then we had lease expenditures of PLN 87 million. Generally speaking, if we compare year-on-year, our CapEx spend was down by 12.5%. The key investments are linked to the future of every mine as we build new extraction layers or levels. And this is something that will generate or lead to production in subsequent years. And this is the level 1,200 in [ Budra ]; and 1,080 in Zofiówka; and 1,050 in [ Knurów ]; and then Szczyglowice the same; and then 1,040 in the Pniówek; and 1,290 in Budryk. And as we access the same 450, and then also Jastrzebie-Bzie; 1 and 2 [ Zaklad ]. Of course, what's also a key investment is the economic utilization of methane in Budryk, Knurów and Szczyglowice. And so if we look at some of the more important purchases that the company made, we bought a roadway header. And then we also had some conveyor belts that we purchased in modernized sections, the mechanized sections. We modernized also longwall shears as well as the roadway excavators. If we look at our investments in JSW, we can say that in Q4, that we're up PLN 116 million in JSW KOKS, this is up 144% over PLN 47.7 million. If we look at the full year, so for this segment at JSW KOKS, we spent PLN 227 million, which was up by 78% over the year 2020. So the overall increase is more than PLN 100 million. As I mentioned, this was capital expenditures in the group because we have a higher level of performing key investments. And so this was building battery #4 in the Przyjazn coking plant. And so it's at PLN 65.68 million. And then we've had the power unit in Radlin coking plant, and so up by about PLN 3 million CapEx. And then we have the higher plan compared to 2020. So those were the drivers of the higher CapEx. And now I would say a few words about head count. As I mentioned, our colleague from the management board had to be at a different meeting. So we can say that we have 30,593 people last year. And this year, we have 31,916, this year. And there so -- and then we had JSW's headcount moving from 21,973 to 23,119. These numbers are slightly different, but I'd say that we have a stable headcount. But when we turned over Jastrzebie III to SRK, so we enabled a large number of people to utilize the mining law. And so we had 914 people who left us, and we can say these were primarily underground employees. But we have a large number of surface employees who had the opportunity to take advantage of nonrecurring severance pay. So the numbers today I gave you about the headcount, you should have to reduce that by 1,234 in places, and we can say that the headcount situation in the company is stable. If we look at the average salary in JSW, is PLN 11,056. And this is a result of the agreement with the trade union and our approach to their work commitment. And so this is good information. So that would be it. So thank you very much on that topic. Now I'd like to ask Mr. Ostrowski to say a few words about the financial side, the economics of our business.

Good afternoon, ladies and gentlemen. Thank you very much, Mr. President. So after presenting -- after my colleagues have presented the information, the operating data, the business data and sales and production, I'd like to say a few more words about the financial results in the group. Perhaps at the beginning, I'll repeat or reiterate a couple of the data, starting with the top line. Sales revenues in 2021. As a group, we generated revenue of PLN 10.6 billion. And that's more than 53% higher than in 2020. So this is PLN 3.6 billion more across the year. And so you can see that the contribution made by Q4 is very big, where we had PLN 3.872 billion, in top line in Q4, which is 50% up over Q3. And on the next slide, I'll talk about the drivers of that growth. If we look at the fact that we have pretty significant cost discipline, we've been able to generate financial results at a very high level. So starting with EBITDA. So after we incorporate one-offs, we have PLN 2.9 billion EBITDA. In 2020, our EBITDA was negative and was PLN 256 million after incorporating nonrecurring events. So we have a difference of more than PLN 3.2 billion. And so you can see to how big of an extent, what happened in Q4, how much that contributed to the annual EBITDA here. We should mention that our EBITDA in Q4 was also positive in Q4 itself. And so we can say that the consolidated net result was nearly PLN 953 million. And so if we look at the loss in 2020 of PLN 1.5 billion, so that means we have an improvement in the results by nearly PLN 2.5 billion. And so we can say that this is -- Q4 has contributed to the full year results. I'd like also to point out the fact that our net working capital has improved. And so we now have a positive level, and so we have PLN 280 million -- almost PLN 284 million of net working capital. In 2020, we had PLN 98 million. But as we reported previously, the interim periods, we had negative net working capital in the various quarters of Q1, Q2 and Q3. So we're going to do this now in a slightly different form, but I want to talk about the impact of the major drivers on the JSW Group's sales revenues in 2021. And so if we begin with the top line in 2020, where we had PLN 6.9 billion. And basically, we have fleshed out the major drivers which led to the sales reference in 2021 of PLN 10.6 billion. So there are several elements that had a negative impact. They're not very material. We had semi-soft coal sales volume down by 41%. So that had a negative impact of almost PLN 145 million. Then we had the average steam coal sales price was down by 9.8% over 2020, and that gave us a negative impact of almost PLN 52 million. We also had a decline in coke sales by 0.9%, Mr. Bartos mentioned that. And that contribution was negative at PLN 24.4 million. The other elements on this graph are in green. And the biggest impact was generated by the average coke sales price moving up, it shot up by nearly 63%, and that increased the revenues of the group by PLN 1.7 billion. The second most important factor which contributed to the increase in sales revenues, we had the average hard coal sales price bumped up by nearly 39%. That generated an additional PLN 1.1 billion. Then we also had an increase of the volume of hard coal sales which generated PLN 461 million. So we had an increase in the price as well as in the volume of hard coal production. And then we had another increase, which was generated by higher revenues on the sales of hydrocarbons. So that gave us other revenues up by PLN 427 million, so benzol and tar. So then we had increase the impact of semi-soft coal price change, PLN 110 million, and then had steam coal sales volume being up by 4.3%. Those are the main drivers of the higher revenue in 2021. So after analysis -- after we've analyzed the top line, now we should look at the cost structure. And so if you look at 2021, we can say the total cost was -- well, in 2021, we had PLN 9.6 billion in costs. In 2020, we had PLN 9 billion. And of course, the biggest contributor are payroll and employee benefits, generally speaking. And I'll say a few words about the other line items in a moment. If we look at this on a quarterly basis, we can say the costs increased by PLN 83 million. But in Q4, we have lower employee benefit costs than in Q3. Now for my commentary, basically show you a bridge, and we can show you the major drivers of our cost by type, by nature. So our cost by nature, grew by PLN 522 million (sic) [ PLN 543 million ]. And so here, we have an increase of energy. So energy was quite high. So more than 22% higher than in 2020, and we have the consumption of materials. This was up by nearly PLN 192 million and the consumption of energy is up by almost PLN 148 million. And if we look at the higher consumption of materials, this was because of coal purchased from outside the group to produce coke. And we always inform you that the coal grades we extract are the major input for our coking plants. But because of quality parameters of coke defined in our contracts with the coke buyers, it's necessary for us to buy small quantities of coal from other countries in order to achieve the technical and chemical parameters that we need to achieve as defined in the contracts with our buyers. We also had a higher amount of expense-able mining pits. So we had an increase -- and so of the number of meters tunneled, so we had higher consumption materials as a result of that. And so like all companies in Poland, the unit price of electricity from power plants has moved up. And then also the CO2 emission allowances, but also there's also capacity fee payment that's led to an increase in that line item. And then we have employee benefits up -- Employee benefits are up by more than PLN 201 million, that's an increase of 4.4%. And of course, JSW has the biggest impact because it has PLN 163 million. But as we told you, as a result of the agreement signed in 2021 with the trade unions having in mind the pay increase and the one-off payment. This is something that's in the full year expenses. Then our depreciation and amortization is up PLN 115 million, and this is because of the capitalization of costs in our mining pits. Then external service costs are down by PLN 114 million. This is primarily in JSW. This is PLN 86 million because we have lower costs of services for eliminating mining damages as well as for drilling services. And this is a comment on the changes -- the change drivers of costs between '20 and 2021. On the subsequent slide, I would like to show you the cash side, so the mining cash cost and the cash conversion costs, these are for the 2 major flagship products the group produces. So if I begin with mining cash cost in 2021, this is referred to as MCC basically. The total mining cash cost was PLN 6.1 billion. So it's a little less than 5% higher than in 2020, PLN 290 million. So because of higher energy costs and materials, this is PLN 188 million. So I can add as a matter of detail, if you look at the megawatt hour cost in 2021, the cost is up by PLN 76 per megawatt hour. And the CO2 costs are up. I also mentioned employee benefits. This is an increase of PLN 170 million (sic) [PLN 177 million] so less than 6% here in JSW. As a result, those key agreements that have been signed, on top of that, we have an increase in the cost coming from the number of Saturdays and Sundays worked which is -- we also have the pays-related components like social security services and we also have external services. We spent less for them for mining, works done underground and on the surface by the C companies less than PLN 30 million. And then, we've spent less on drilling services, so PLN 25 million. And so in this manner, we can tell you that the mining cash cost on the unit base, we spent PLN 477 million and 12 [Foreign Language]. So it's a little than PLN 40 more than we spent per ton last year. And I want to draw your attention to a portion of these graphs. And so this is an increase of more than PLN 20 on the impact of cost than the volume impact. And this was an impact of PLN 18.68 and that's why the overall cash impact leave the situation in which the total cost MCCS PLN 447.12 million. If we look at the cash conversion cost, it's down by 3% so it's PLN 173.10 million and so it's lower than in 2020 when it was PLN 178.37. Here, I think it's worth pointing out that the cost impact was negative and amounted to PLN 11. The volume impact had a positive impact, so it lowered the cost by PLN 16.18 Now if I can move on to the EBITDA drivers and their impacts in 2021 versus 2020 in several main categories. As I mentioned, we had negative EBITDA in 2020 of PLN 675 million. So prior to corrections or adjustments for nonrecurring factors, we had 2 negative drivers. One was the recognition of impairment loss allowances, impairment losses, PLN 252 million. So we're talking about our Radlin coking plant. We're also talking here about Borynia. And then the Jadwiga coking plant, that we also had the reversal of an impairment loss at the Jastrzebie-Bzie mine. So the overall impact is negative at PLN 252 million. Then we have the impact of other operating income and expenses. The impact here is negative at PLN 190.9 million. Here, I would mention the positive impact of the sales of hydrocarbons, so -- and some PLN 270 million. And then we have the positive impacts. We had negative adjustments. So the sales of materials of some PLN 700 million. So the EBITDA before adjustments is PLN 2.48 billion. After we look at the nonrecurring events, there are several major items that -- the overall impact is PLN 418 million. There's a positive impact of the nonrecurring events. But if we start with the biggest one, PLN 768.6 million. This is a matter as a result of the test -- impairment tests. So into JSW mines and in JSW KOKS, the second important line item here is the reversal of the impairment losses in 2 units in the Knurów-Szczyglowice mine and in the Przyjazn coking plant and overall impact is PLN 335 million. This is an adjustment with a negative sign. Then we have the COVID to pandemic. And so we've had PLN 146 million, and they are basically 2 major factors. We had a decision to forgive some of the loans we obtained in 2020, a liquidating loan and a stabilization loan, sorry restructuring loan, so the impact was around PLN 100 million at the group level. And we also had the impact of calculating the interest on these loans and so the interest rate was lower than the overall market and so this was nearly PLN 147 million correction. And so we can say because of the COVID at the group level, so this is a correction of PLN 28 million. And then we had the one-off reward of PLN 112 million because of the agreement signed with the trade unions. So the EBITDA after correction, after the nonrecurring events, it's PLN 2.9 billion. And I think that's it in terms of the EBITDA explanation by drivers. Now we can talk about the operating segments and how they contributed. The biggest impact on growing EBITDA came from the coal segment. So it's PLN 2.27 billion. And we already talked about the revenue side. so we had 10% more tons than in the previous year. Also we had additional sales of steam coal, 136,000 tons that the average sale price was up. And we also, in Q4, incorporated the impairment losses of PLN 232 million (sic) [ PLN 252 million ] and then the recognition or the reversal of impairment losses. So in the coke segment, made a positive contribution to EBITDA of PLN 1.3 billion. Here it's worth mentioning several major contributing factors. This is a bit of reiteration. Above all, we have higher revenue. So we're up by PLN 2 billion in revenue. And this is a result of the average price moving up for coke by some 60%. We also took into consideration the impairment losses of PLN 421 million in Radlin and Jadwiga. At the same time, we reversed it of PLN 260 million at Przyjazn. And so the overall impact in the coke segment is PLN 1.3 billion improvement. Then we have consolidation eliminations. There are 2 major components. So we're talking about the changes versus 2020. This is not the absolute level, and we have changes of PLN 428 million (sic) [ PLN 418 million ] of profits, not generated to inventories. So this is something that's repeated in every reporting period in terms of its impact. And then PLN 20 million this consolidation eliminations in terms of dividends within the capital group. And then we have the EBITDA of PLN 2.48 billion. Then we can move on to the next slide. A few words about working capital. This is something that we also talk about in terms of our ability to finance investments and we had PLN 15.9 billion, almost PLN 16 billion in assets. And then we have current liabilities of PLN 3.6 billion. These are trade liabilities of PLN 2.3 billion. Then we have other current liabilities of PLN 825 million. And then we have loans and borrowings of PLN 459 million. So it gives us our fixed capital. So this is equity and long-term liabilities of PLN 12.3 billion. And so this is covered with property, plant and equipment in the value of PLN 9.3 billion. Then we have intangible assets of PLN 106 million. And then we have other non-current assets of PLN 2.5 billion. And this gives us a surplus of net working capital at PLN 283.6 million. So if you look at the same line item. But if you look at net working capital in the balance sheet, starting with the elements of our working capital, so our trade and other receivables have the highest impact. And then we have trade and other liabilities on the other side. We don't have any overdue items so we pay our suppliers and receive payment on a timely basis. And so basically, we had higher sales prices for coking coal, and that had a direct impact on the line item. And so when we sum the various components of our working capital items, so we have basically PLN 1.3 billion cash and cash equivalents. And then we have the various liabilities, and this leads us to PLN 283.6 million in net working capital. Then you have financial highlights. So we have 0.9% of fixed capital as non-current assets ratio. It had dropped down to 0.83% and then it was rebuilt at the end of the year. So at the end of both periods, we had positive net working capital. So we had PLN 98 million, moving up to PLN 283 million. But in the middle of the year after interim periods and the course of the year, it dropped down to negative levels and the lowest level was at the end of September when we had PLN 727.9 million. And this was linked to the market situation but thanks to cost discipline and rebuilding the results, we were able to improve -- are improving these ratios. And at the end, I would say a few words about our cash flow. So at the end of '20 -- we had cash of PLN 1.597 billion, including the loan from PFR, so the restructuring and liquidity onto the anti-crisis shield. Then we had the profit/loss before tax of PLN 1.16 billion. Depreciation and amortization, PLN 1.2 billion. Then decrease in inventories. This is the sale of inventories that Mr. Wojtkow mentioned, where we were selling more than we actually produced in 2021. That gave us an impact of PLN 228 million in cash. Then we had an increase in trade and other receivables, PLN 904 million. This is not because of things being overdue, but just because of price differentials. Then we had PLN 94 million adjustment as a result in decrease in trade and other liabilities. Then we have PLN 1.6 billion of investment cash inflows. So -- this has the immediate cash impact plus the knock-on impact for '21. Then we have loans and borrowings received of PLN 115 million, then we paid down loans and borrowings of PLN 205 million. Then we have lease payments of PLN 193.5 million. Then we have other financing flows and FX differences of more than PLN 54 million, so cash at the end of the year was PLN 1.3 billion. So that's it from my side. Thank you very much in terms of the financial situation of the company and the group. So as we continue our conference, which is being run online, I'd like to ask our IR department to present the questions that were asked during the conference.

The first question about the company's assumptions, about steel consumption in the world over the next few years. Should we assume that there's the potential lack of iron ore exports from the East could be something that would reduce the ability to produce steel across the world and, therefore, could affect the impact on JSW's -- could affect the demand for products for JSW?

So thank you very much for this question. As a company, we don't produce steel. So we don't prepare such projections, nor do we prepare such forecasts. So this is, of course, a little bit beyond the framework of our conference, which is for a presentation of the results of 2020 -- 2021. That doesn't mean that we're not analyzing the current market context, which had been rather sudden and unexpected. And so I thank for you and for investors and analysts, let's look at a few facts to build your own view of this situation. As I understand this question talks about the risk of whether or not we can sell our products to our buyers because there's a fear that there could be a reduction in the production of steel and that iron ore could be less than available. Where are we today? And during this presentation, you saw that the production in steel is around 152 million tons per annum. What's happening right now in terms of the Green Deal, which is being discussed and remarked upon. I don't think anybody is going to deviate from that. Regardless of the current situation, modifying that, the direction has been chosen and it will be continued. This situation means that steel businesses will have to be active building infrastructure in terms of the Green Deal. I'm talking about the power side, all of the offshore farms. Onshore farms are being discussed. Realistically, this means that more steel will be needed, thick steel products. On the 16th of February, if I remember correctly, there was a meeting of EU, members of Parliament, and they have a plan that they accepted where they've quantified up until 2030, we should have 60 gigawatts of offshore capacity, wind capacity and 300 gigawatts by 2050. So we have to know that the Polish government is also working on this. And there's a discussion on the 10 times height law, which will probably be adjusted and modified, which means that not only offshore wind projects, but also onshore. And so for 1 ton or for 1 megawatt, you need 24 tons of steel. Onshore products is around 85 tons of steel per megawatts, so on onshore, which will be built -- offshore, we're going build -- will be built on the Baltic. So we're talking about 200 tons, 225 tons of steel per megawatt. And so every one of us has a calculator. And this can tell us what this means in terms of the demand for steel. What we're tracking in terms of where we have access to the major raw materials for such investments, some projections, forecasts are available. So 152 million tons of steel consumed today in Europe. And the forecast in 2030, this is the EUROFER official, they believe that the utilization of steel up until 2023 is PLN 198 million because of Green Deal. We're part of that. And everything we're producing will be part of that investment. The next thing, and this is something that we presented to you. Generally speaking, if we look at conventional blast furnace technique and then we have other technologies, like arc furnaces and hydrogen, it's easy to note, based on generally available figures, what happened in 2020 and what's happened in 2021. We can see that the demand for steel is growing very fast from blast furnace technologies to conventional technologies and how the production has increased from 2020. So we've had 90 million tons in Europe, that was the consumption in terms of blast furnace and moving up to 98 million tons at the end of this year. So we can say that this is a proof that this technology -- traditional technology with using coke and coal will be used for a very long time because this is a realistic and economically viable way of melting or smelting steel. That's one thing we know and can quantify. So the European plans are being fleshed out. There's another element that surprised all market participants. Unfortunately, we have certain symbols on our suits. The situation in the East that's going to affect commodity companies, we can see that in some budgetary laws of member states. So if representatives of the German nation talk about spending money for armaments, an increase in expenditures in the general GDP from 1.4% to 2%, that also testifies to something. The Polish law talks about an increase to the armament industry to 3% of GDP, and that will have an impact on us in terms of the products we produce, the flagship products we produce for the construction of steel. We can't forget about that when we talk about iron ore. This is a problem. But if we look at that with cold calculation at figures, Russia and Ukraine, do produce iron ore. Russia is the fifth largest iron ore producer in the world. But let's have in mind that the bulk of that production is used internally. Export is very small. We have a different situation in Ukraine. The production that is done there is 3% of the global production of iron ore, but they exports much different amounts. We import as EU, from Ukraine, that's 44 million tons of iron ore to Central and Eastern Europe countries. We have coming in some 20 million tons, and so that's a pretty big figure. But the supplies have not been interrupted. Of course, they're impeded. We have to know that this is delivered by rail through Poland, Slovakia, Romania and the southern ports, Black Sea, so on and so forth. There are some logistics difficulties, but Ukraine is not the only producer along with Russia. There are other producers of iron ore, and the market doesn't like vacuums. And so trying to respond to your question, generally speaking, we do not see a threat in terms of the sales of our products, coal, in terms of the current situation. Of course, it's an extraordinary situation, and there are going to be many outcomes or repercussions that can't be foreseen. But if we look at the position of JSW, we, as a Management Board, don't see a threat in a medium, long term in terms of our ability to sell our products. Because of the production of steel in Europe and the consumption of steel in Europe, nor because of the availability of other raw materials at least in the current and short and medium term. Thank you.

The next question is about our estimates in terms of what are the inventories of iron ore because steel plants have talked about having problems because of not having access to the iron ore. So I don't think we need to add anything; that question has been responded to. So has the company been affected by the suspension of production by some of the European steel producers or the sales volumes may, as a result, be softer in 1Q '22 as opposed to 2Q '22. So I'll ask you to respond to.

I think we can say clearly that today, the company hasn't been impacted. We continue to be in contact with all of our buyers. We have regular meetings. We monitor the situation and the portfolio of our buyers is well known. Our consumers, customers, we know their portfolio of products, and we understand their structure of buying raw materials. This risk doesn't exist. There are certain difficulties. Well, the inventories in the steel plants don't lead to [ interpretations - per references ]. If we look at all of the dependence between coke, coking coal and steel, one other thing comes to the mind, even if we would have these type of difficulties, the steel mills have integrated coking plants, and they are the assets of these companies. And so if in theory, if they produce less, then buy less from us, that would be the last thing that they would do because of these coking plants being part of their integrated steel mills. What we know right now, the difficulties that are out there in terms of sourcing iron ore and other raw materials from the East, so coal, coking coal, lower quality coking coal, which is used for PCI. So used in coal dust. Well, that's not available. And so certainly not in the same quantities as up until now. And that affords an additional market opportunity for JSW because the portfolio of coal grades we produce can be a natural substitute for what's missing in steel mills now. And we're running those talks at present. So I don't see that risk.

The next question we received is as follows. The discount, how is the discount against the benchmark prices for coking coal changed in February and early weeks of March having in mind the exploration and price growth on benchmarks -- benchmark prices?

Well this question is about a period outside of the framework of our earnings conference for 2021 so we can't respond to that question straight out. I understand the intentions of the question. So certainly, there are doubts having in mind with such high prices, will we be able to achieve those market prices? Well, JSW for a long time, has been very consistent in terms of its policy of agreeing on contracts in setting prices, having mechanisms or market mechanisms. And I can remind you of a situation that took place 3 quarters ago, there was a question posed by the analysts, where there was a large disproportion between American coal prices as opposed to Australian coal prices, whether or not it would be worthwhile to utilize that and change our systems for contracting. And our response was clear. No, we don't want to do that. And it was easy to see what impact that would have had. We benefit from this market, and we negotiate based on that market, and that's something we're going to stick steadfast to.

So the analysts covering the company and investors would like to understand what's happening with Russian steel and coking coal exports? And what are the changes look like? It seems that all these questions are coming in to you.

So I think having in mind the current situation that we would receive such a question. Well, there are statements, announcements of a total embargo, not only for power, but also for steel. So energy as well as steel. So if we look at the administrative limits, well, this is something that's happening already now because the large European companies and international companies well, on the second or third day of that conflict, they decided not to make certain purchases. And some products, alternatives are being sought. What the potential impact would be and the outcome? I'm just showing you some facts that are happening, you have to draw your own conclusions. If certain steel products from the Eastern countries aren't entering the European market, that generates additional demand amongst European companies. So this is demand that must be met either through production here on site or by imports from other directions. Imports from other directions are facing certain limitations because once the Eastern front is closed, so the Baltic ports as well as the Mediterranean ports are going to be fully utilized or actually their capacity will be more than fully utilized because we'll have only -- not only our raw materials, but we'll have steam coal, ag products and other things that can't be delivered to Europe by rail, and this will have an impact on the capabilities. And this creates certain possibilities for the steel mills located in Europe, in the European Union. So I think you can draw your own conclusions based on that information.

The next question is about a different area of operations in the company. So the forecast of 14.5 million tons, should that run rate projection be considered conservative or optimistic?

Well I was -- I've been a miner and a rescue worker. So you have to have optimism. So this industry should always have some optimism. But this forecast is defined by the last few months of 2021. And basically, every current year forecast should be defined by what's happening in Q4 of the previous year. And so we have the current level of access to deposits, how well the survey work has been done on the mining and geological conditions and the utilization of equipment in humans, staff. And so we believe that this forecast is a realistic forecast. That's what I would say, forgetting about the emotional side.

The next question, which is of interest to our stakeholders is about output in Q1 2022. Will the company be able to achieve its planned level of 3.5 million tons of output? So go ahead and respond, sir.

Well, this question applies to the full quarter. Well, this quarter is still underway. So it's very difficult to talk about a certain result. I can say that the plan we put in place for this year is being executed. We'll be able to talk about the results achieved after the end of the quarter.

The next question is about our assumptions for the future. Our stakeholders are asking, how do we intend to ramp up the run rate to 16 million tons, having in mind the deterioration in geological conditions? I'd ask our Technical Director to respond.

Geology in the survey of our deposits is something we always have to do. So in terms of investments and where the future is, all mines that do this have to access new levels based on what we understand from higher laying seams. And basically, this, we believe that this forecast is realistic. And so our surveys bear that out as we continue to do reconnaissance work on the deposits. So the last quarter of 2021 gave confirmation of that in terms of our ability to increase the run rate from year to year.

The next question it's about threats. Are there any threats, which could mean that we would not be able to achieve our production targets this year?

So at present, as I mentioned, we're on line with our targets. I don't see any threats for our plan for this year being realistic.

Now the next question is about the payment of a dividend. Does the management intend to revisit its recommendation of paying dividends starting in 2022, for 2021? I'd like to ask our CFO to respond to that question.

In many conferences, we've advised you that we have a dividend policy, where at least 30% of the profit can be paid out for a dividend, but there are several factors, which mean that for 2021, a different motion will be submitted to the shareholder meeting basically to set aside all of that profit for formal reasons, the conditions of the loan agreements with PFR, the restructuring loan as well as the liquidity loan while the management won't recommend payment of a dividend as a result of the conditions, covenants within those loan contracts. And then if we look at the economic side of things and 2020 had a major loss -- the management also came to the conclusion that even though the formal conditions, maybe if they were fully met. So we need to build a financial buffer to be able to finance our future growth plans. And so our equity needs to be shored up to follow those production plans and that's why the management is not going to recommend the payment of a dividend for 2021.

So does the company have a coking coal price hedging mechanism? And if so, what kind of mechanism and also what sort of FX hedging do you do?

So many years ago, we had a financial risk committee set up in the company, which analyzes and monitors exposures. So the FX risk as well as the coking coal price, and we're quite active to mitigate those risks because of the liquidity on the market, [ CSR ] do that on the FX market. And so we enter into FX forward contracts up to 18 months. If we look at coking coal, that market is quite shallow, but we do enter into commodity swaps on an 18-month period for no longer than that. And I would add that the Financial Risk Committee meets regularly, it has its own rules and bylaws and it has to operate. And so if the market is stable, and that's not the case now, then we had meetings once a quarter now because of the great volatility in terms of euro and dollar exchange rates and coal prices. So we have meetings every month, sometimes every 2 weeks. And we check our transaction-related exposure. So there are commodity swaps and FX forwards. We also have natural hedging because we're buying imported coal or other materials that we need for the mines and the coke plant to operate. So we have natural hedging to a certain extent as well.

So in connection with the record-breaking coal prices, does the company plan to pay additional benefits to employees in the form of bonuses or other benefits on top of what the pay increase for trade unions in 2022?

So at the beginning of this year, we signed with the trade unions and understanding an agreement which clearly defines what's going to happen in this area. So for the -- it's all incorporated in that agreement.

Does the company intend to spend money, cash to buy mines from other Polish mining holding companies?

So in our operating strategy, we have not contemplated, nor do we contemplate any type of mergers or acquisitions or purchases of organizational units from the mining industry. So it's zero -- we're not planning any such purchases.

Then we have another question to the CFO. The EBITDA consolidation adjustments was minus PLN 590 million, including minus PLN 245 million in Q4 of 2021. What is the result of -- what is the reason for such a big adjustment? And what should we anticipate in the upcoming quarters?

In terms of forecasts about upcoming quarters, I won't speak on that because that's a matter of our plans, and we'll report things on an ongoing basis. During the presentation, I talked about the 2 line items or 2 items that drove that value in terms of consolidation, eliminations and it was PLN 420 million because of differences on unrealized profits on inventories. And we also have on top of that, a smaller amount of PLN 28 million because of consolidation and elimination adjustments because of dividends paid within the group. And those are the 2 fundamental drivers of that.

Then we have another question. I think it's the last question. It's a question about the working capital in subsequent periods. Will it continue to be positive? Just like at the end of 2021, we can see that the trade receivables have moved up a lot. What is the reason for that?

If you allow me, I'll respond to that. We talked about the net working capital. And I talked to you about the drivers of that figure at the end of 2021. As I said, we don't have any overdue trade receivables or payables. This is a result of our ongoing activities in the contracts that we've entered into in terms of the future working capital based on the knowledge you have in terms of the results for 2021 and all of the market predictions that are out there, and your evaluation of the cost situation, it's going to be easy for you to enter those assumptions into your own models and then you can calculate that on a forward-looking basis.

So thank you. That's -- those are all of the questions that were posed. And so the additional questions we received have already been discussed during the results conference. So I think that we've dispelled all doubts. And now we would invite people if they're shareholders, stakeholders of the company, who are interested in obtaining additional clarifications or information, then we have the IR department is open and you can always write to us. So I'd like to say a few organizational things, housekeeping details. We'd like to invite all of you to join us for our conference about the strategy of JSW, having in mind the subsidiaries to the JSW Group. And this is the strategy for 2020 to 2030, and this conference will be held on the 25th of March of 2022. And at that conference, we'll respond to your questions. That proposed today during the conference, but reflected on the strategy, that's one thing. We'll also field other questions in terms of the group strategy. I would like to thank all of you very warmly. I'd like to thank our employees of the group. I'd like to thank all of the companies, third parties that are working with our group companies for making your contribution in terms of generating these results. We're not sitting on our laurels. I believe that we're acting with commitments and making decisions at all levels in the group to be able to generate similar performance in the future. I'd like to thank all of the people who are here today and have participated in the preparation of this conference and for your technical and substantive [Foreign Language]. So I thank on behalf of the management, and in terms of questions that will be posed in the future and if we haven't given answers to them, then the IR department will be responsible for responding to those questions. So thank you very much for your attention. [Statements in English on this transcript were spoken by an interpreter present on the live call.]