Klépierre SA (LI) Earnings Call Transcript & Summary

[Interpreted] Ladies and gentlemen, dear shareholders, welcome to this Ordinary and Extraordinary Shareholder Meeting or General Meeting. As a General Secretary, the invitation gave way to the legal formalities. A notice of meeting was published in the compulsory button in the 12th of May 2021, and a convening letter was also published on the 26th of May 2021, as well as the legal special corporate bulletin. And the convenes were also sent to the registered shareholders on the 20th of May 2021 and auditors with registered letter on the 2nd of June 2021. As announced in the invitation and convening letter, the general meeting is taking place in a closed session without the physical presence of the shareholders. And administrative measures limiting or curbing or banning collective meetings for health-related reasons were actually an obstacle to the physical presence of the members of the general meeting. And we needed to comply with physical like social distancing. And the number of the people present had to be curbed and limited. Let me just remind you that the general meeting is now displayed, fully displayed and broadcast live on Klépierre's website. And by virtue of the French Watch recommendations, the recording will be available on the website. I'm now going to kick it over to the Head of the Management Committee, Mr. Jestin.

[Interpreted] Hello, everybody. Ladies and gentlemen, shareholders. I'm very happy to be here with you at the Klépierre General Meeting. But because of the pandemic and the coronavirus crisis, David Simon, the Head of the Supervisory Board, may not be able to take the floor. But he wanted to talk to you still. And we're now going to listen to his message right now.

I'm David Simon, Chairman of the Supervisory Board of Klépierre. Unfortunately, I cannot be with you today because of the pandemic. But I still wanted to provide you with my perspective before we proceed with the AGM. It's been a very challenging operating environment for Klépierre. The COVID-19 pandemic caused lockdowns in 2020, which translated into the equivalent of more than 2 months of closure and 660,000 trading days for retailers. Despite this context, the group proved its resilience, notably through the generation of EUR 690 million of net current cash flow and the negotiation of thousands of agreements with tenants on lockdown periods. I would like to pay a special tribute to the Klépierre management team and staff for the adaptation and dedication they provided during these unexpected and historic times. Thanks to their hard work and rapid implementation of a cost reduction plan as well as the historically tight management of the balance sheet and a focused and responsible development pipeline, Klépierre managed to contain cash flow outflows and strengthen our liquidity position and preserve the robustness of our leverage metrics. Furthermore, I'm extremely proud to report that in 2020, even with the impacts of the COVID-19 pandemic, we accelerated the delivery of our ambitious nonfinancial road map and pursued our corporate social responsibility, CSR strategy, act for good with environmental, societal and social achievements and worldwide recognitions. Now I'm glad to tell you that since mid-May, all Klépierre malls have reopened and are welcoming visitors with the application of strict sanitary protocols. While our results and activities during the early part of 2021 continue to be impacted by lockdowns, we are already noticing encouraging signs of resumption, both in terms of footfall and retailer sales. It shows how physical retailing is regaining traction as soon as restrictive measures are eased, notably because people crave social interactions. We are fully committed to continuing our hard work and focus to return to normalized operating results as the operating environment improves. And I would like to thank you, our shareholders, for your unwavering support in these circumstances. More than ever, I know our strategy and our fundamentals were a key differentiator in how we weathered the storm compared to our competitors. And that they will be key to turn the corner of this crisis: the quality of our portfolio in major growing cities in Europe, the expertise of our teams, the strength of our balance sheet and the relationship with our retailers. As you know, my term as a member of the Supervisory Board for your company expires today. I've been Chairman of this Board for nearly a decade now, relentlessly serving your best interest. I'm ready and willing to extend my mandate to ensure that Klépierre remains the European leader in shopping malls and create the highest value for its stakeholders. I trust you will support my reappointment. During this live webcast, we will review our company's performance over the past year and provide you with an update on 2021. I now leave you to attend the Virtual 2021 Annual General Meeting and give the floor to Jean-Marc Jestin, Chairman of the Klépierre Executive Board. Thank you very much.

[Interpreted] Thank you very much, Mr. President. Now the Executive Board would like to thank you, and thank all of the other members of the Supervisory Board who were here throughout this COVID period, supporting all of us in a steadfast way and support of the company, and you'll see this in the figure very soon. Thank you, Mr. President, Mr. Chairman, and let us now go on to the usual modalities so as to open this general meeting. On the screen, we have the agenda of the meeting, and we are going to set up the Board of the meeting, and then the Head of the Executive Board will show you the management report for the year 2021. And we will then refer to the report of the Supervisory Board on the 2020 written account via corporate governance as well. And the auditor will also make a presentation and reports. And we'll then proceed with a Q&A session, and then we'll make a presentation of the voting -- the vote results. Let's now carry on with the setup of the Board. The Head of the Executive Committee will have the honor of presiding this assembly, this meeting. And the various functions of scrutineer will be fulfilled by the 2 members with the greatest number of votes and that accepted actually this mandate. We're now talking about Simon Global Development BV, a company represented by Steven Fivel, a shareholder of the company, selected among potential holders with the greatest voting -- vote numbers present via video; and Mr. Cyrille Deslandes, shareholder of the company, here present. The Board actually appointed me as a secretary, and the session is now open. The roll call shows us that 2,438 voted by mail or by Internet and that they have [ 215,816,084 ] shares. In other words, a quorum of 75.98%. The meeting can, hence, deliberate. The documents, those of which has been displayed on the screen, were submitted, the scrutineers' office and made available to the meeting. All the documents, which by virtue of the regulatory measures should be communicated to the shareholders, were made available to them within the agreed time lines. The Chairman is now going to make a presentation of the management report by virtue of the 2020 fiscal year.

[Interpreted] Thank you very much. I will now make a presentation of the management report related to the year 2020, and we will take this opportunity, along with my colleagues and the Executive Board, to refer to the first months of the year 2021. In the year 2020, as you may all know, the shopping malls, which we own were closed down for a period, representing over 2.1 months as you may say here, see on the slide. This was essentially taking place from March to May and November. And this slide actually illustrates the opening and closing periods. We actually generated satisfactory results. However, now first of all, we generated over EUR 690 million worth of net cash flow, current cash flow, lifted and renewed the EUR 2.9 billion of financial means or lines. And we also paid off dividends to our shareholders for the year 2019, [ EUR 728 million ] and reduced our operating charges, overheads and administrative cost to face up to the classes, EUR 200 million reduction and a very important item here. We also got a reward. Once again, because of our results, we're talking about our CSR results and the 2020 results. Now let's actually focus on the current cash flow, EUR 1.97, EUR 0.85 reduction versus 2019, and the major key elements related to coronavirus are as follows. We decided to reduce rents during the close down periods of the amount, EUR 0.44 per share. This is the equivalent. And we also had to observe or come up with provisions, EUR 0.38 per share. And because of the close down of various malls for 2 months, we also have observed a variable revenue reduction of EUR 0.09 per share. And we took up quite a number of measures, and I'll get back to those measures, enabling us to curb the coronavirus impact and the cost reduction, overheads and taxes. This year, we also have been working flat out -- well, for the signature of protocols for the benefit of our tenants, 5,000 agreements were actually sealed in this respect to agree on the various lease agreements during the close down periods, and we also signed. And this is quite important to mention, 951 new lease agreements with a positive [ reversion ] of 4.5%. Insofar as expenses, as was already mentioned, as early as the beginning of the crisis, we set up a savings program on both lease expenses and overheads. The rental expenses, which we represent EUR 383 million per year -- EUR 311 million today over the year 2020. Insofar staff and cost and overheads, we also set up a program. And this is a very important expense reduction program. It's EUR 170 million in 2019 to EUR 138 million in 2020. We also reduced our investment, our CapEx because of the crisis. And we're now deploying the investment volumes, which we had generated in 2019, EUR 307 million; in 2020, EUR 178 million related to development expenses as well as maintenance expenses. And we also took on measures, and 2020 expenses have to be reduced by EUR 94 million, and I'm talking about development projects. Now those various measures made it possible to limit the debt increase and maintain our financial ratios. The debt, EUR 9.054 billion, end of 2020. In other words, a EUR 224 million increase stemming from cash flow reduction, which I indicated a few minutes ago. And EUR 270 million was the amount of that insofar as the financial indicators, this crisis allowed us to maintain those at quite appropriate and positive level. Our net debt-to-EBITDA to be -- I'm sorry, 10.8x and if were to eliminate the crisis impact, 8x, which is comparable to the one we had in 2019. Insofar as the loan-to-value amount, the percentage was 37.3% in 2019 and 41.4% today because of the portfolio over value reduction. The year was also marked by extraordinary refinancing activities. We refinanced EUR 2.9 billion worth of credit lines since the beginning of January 2020, and this is essentially EUR 1.5 billion of bonds issued with a 1.5% average yield and 9.5 years maturity. And we also renewed the renewable credits, including a sustainable development, EUR 1.4 billion with a maturity of 5 years. And this allowed us to pay off EUR 1.4 billion worth of bonds and anticipated payments of EUR 350 million loan. Now the value of our portfolio went down by 7.2% in 2020. And the investment market is relatively bland, and the most important elements here making up this reduction are as follows. For example, the market impact on rates, capitalization rates, which were factored in by experts at 4.7% of this reduction and the cash flow impact of 2.5% related to corrections, indexation and rental values. On the right-hand side of the screen, you can also see the various variations in each one of the countries. And the situation is quite homogenous from one country to the other. Our revaluated asset, net tangible asset value is -- amounts to EUR 31.4 on the 31st of December 2020. And the main events -- well, first of all, the revaluation of those assets, which are EUR 4.9 per share, those that I just mentioned, paying off the dividends in the year -- for the year 2019, EUR 2.2 per share. And cash flow generated throughout the period, which were a positive EUR 2.1 per share. Our extraordinary performance levels, CSR performance levels that places Klépierre among the world leaders. And for quite a number of years, we've had a very ambitious program for the reduction of our energy consumption. Just a few figures. We reduced by 43%, the power emissions since 2013 or consumption. And we have over 96% of our waste, which is being recycled, and 100% of our portfolio, which is now BREEAM in-use certified. And this leadership was acknowledged by the greatest nonfinancial agencies such as GRESB, CDP and the CDP and Science Based Target for CDP. We're also awarded or acknowledged as a leader in retail-listed company. Insofar as the 2021 business, we would -- now in addition to the various items that we put forward to you for the first quarter 2021, we would like to perhaps give you some inside knowledge. Since the beginning of the year, our malls were closed for over 2 months, and we now reopened them. 93% of the stores are now allowed to reopen. And as you can see on the slide between the month of -- or as early as January, February and March for most April and the first part of May, our malls were strongly impacted by those administrative lockdowns and in June, right now, all of our malls have reopened. The coronavirus crisis now being alleviated, thanks to vaccination. In Europe, 44% of the population have been vaccinated in the countries where we have a footprint. And on the right-hand side, the contamination rates for 100,000 inhabitants in the EU went down quite strongly as of February and has reached levels less -- I mean, it's now below the 100 bar. And we reopened our malls, thanks to the setup of negotiated health protocols, which we agreed upon with the various authorities in other countries. And those protocols allow us to welcome all of the visitors. And we are really getting a great number of visitors, for example, with the compliance with that social distancing and wear the mask, a very important measure. Regular cleaning, finding and measuring the air quality, CO2-level gauging and the renewal and ventilation process, and all our daily activities by the implementation of health measures that are appropriate. We also communicate massively with our consumers about all the efforts we're making to show that our shopping malls are safe and secure and that they can come and have a good time. Since the reopening, the footfall has been better than last year. We see here that last year after the lockdown in the -- from the 18th of May of the 14th of June 2020 compared to 2019, the footfall reached 72% of a normal year. And we can see that subsequent to the lockdown on 17th of May to the 13th of June 2021 compared to 2019, we have a footfall of 84% of a normal year. So we can see, indeed, that customers are coming back massively and more quickly than the preceding years. So the income collection has been slightly affected by the closure. We have invoiced EUR 334 million in rent and charges. We have collected 67% of the [ 334,000 ] invoiced, and this will continue to increase. As you know, in France, the government announced the implementation of a specific support to help tenants to pay their rent during the lockdown period. We have -- and this is an event of note. We have commercialization activity, which has been very well-supported in the first quarter of 2021, twice as much as in the same period as the preceding year during the lockdown. So business is back, as we say, and the brands of sports and health and beauty. And also, there are many new leases that have been signed. And the group has signed a partnership with Primark to open 7 new stores in our shopping malls. We are continuing to invest massively in our assets. As we speak, we have a project currently being built in Bologna called Big Reno, a 16,000 square meters. Now this is an extension, which should be delivered in spring of 2022. 80 -- it's 80% prerented, and the investment is in line with our initial budget. And we have 6 more -- 6 months late, but the opening should be on target. We are confident in the pickup of our activity with respect to the information that I've just spoken about. And it's for that reason that we propose a distribution of EUR 1 per share in dividend. This year, the cash flow was EUR 1.97 per share. We are proposing a dividend of EUR 1 per share, which represents a distribution rate of 51%. The proposed distribution corresponds to the reimbursal of -- and paid in a single go on the 23rd of June 2021. As indicated during our first quarter 2021 in the hypothesis where the lockdown would last 2.6 months in 2021, which we observed to date. The group anticipates a net cash flow of EUR 1.8 per share in 2021.

[Interpreted] Thank you very much. Let's continue the session by presenting the Supervisory Board's report on the accounts in 2020 and the -- these 2 reports are in the Klépierre documents in the universal registration document, which was made available to the public on March 31, 2021. We have the report of the Supervisory Board on accounts of 2020, and the Supervisory Board made no observations on the 2020 financial statements having to do with the accounts as well. As to the report on corporate governance, I should point out that it was approved by the Supervisory Board on March 25, 2021. I now hand over to Mrs. Catherine Simoni, Chairman of the Appointments and Compensation Committee.

[Interpreted] Thank you, Julien. Ladies and gentlemen, shareholders, I have the pleasure of reporting back on the activity of the Appointments and Compensation Committee of your company that I am in charge of. The committee was strongly mobilized in 2020 and held 6 meetings with a participant rate of 100%. In terms of governance, the committee reviewed the composition of the Supervisory Board, specialized committees and the Supervisory Board. We started a reflection on the broadening of the Supervisory Board, which and -- which resulted in appointing Mr. Beñat Ortega, Director of Operations, as a member of the Supervisory Board. The committee proceeded to the independence of members in the Supervisory Board. They also developed a policy, a ratio between men and women in Klépierre, adopted by the Supervisory Board, which has ambitious objectives in terms of social [indiscernible] and an action plan. In terms of compensation, the committee proceeded at the beginning of the year of a full review of the various elements comprising the salaries of the Supervisory Board. Based on this work, we developed a policy for compensation in 2021, which is subject to the vote of this present general assembly. The policy of remuneration is part and parcel of the founding principles defined in social interests of Klépierre so as to encourage its sustainability. There are 4 principles to this. The first one is a level of pay should make it possible to attract and keep the best level of skills to Klépierre and to respect conditions and pay. The second, the structure needs to be balanced in this various components, both fixed and variable and short-term pay and long-term variable and taking in consideration the scope of responsibilities. Thirdly, the compensation of the corporate officers is based on effective performance. And fourth, the compensation of corporate officers needs to include social objectives and societal objectives and environmental objective so as to encourage growth over the long haul. Today, shareholders have been solicited to approve their policy for 2021 in terms of compensation and compensation of corporate officers. Let's start by the policies in 2021. Insofar as the payment of the Chair and members of the Supervisory Board, to keep the same principles that were applied in 2020 with the maintenance of the global enroll of EUR 680,000 maximum for 9 members and to renew the rules of the breakdown of that amount. In terms of the Chair's remuneration and the members of the Supervisory Board, we wish to continue the same principles of pay that was previously respected. And the payment of the members of the Supervisory Board will be composed of 3 elements of pay. The terms and conditions are the same as previously. It's a fixed part, a short-term quantitative part and several qualitative criteria and a variable part of long term in terms of performance shares. The experience of the crisis situation linked to the epidemic leads to consent the Supervisory Board's faculty to adapt or modify the criteria and the calculation upwards or downwards of the variable short-term part of pay of the Chair and the members of the Supervisory Board during 2021. It is indicated that this faculty will be framed and will be considered to be exceptional such as was encountered in 2020. In addition, the implementation of the faculty would obviously regard the prior advice of the Compensation Committee. Let's look at the compensation for 2020. In 2020, the effective pay paid to the members of the Supervisory Board took into account the actual physical presence, EUR 675,804 and EUR 91,089 to the Chair of the Supervisory Board. Concerning the pay of members of the Supervisory Board, it is reminded that in the context of COVID, the Chair and the Financial Manager have 3 initiatives, decided to reduce the fixed part of pay by 30% for a period of 9 months, way beyond the recommendation of authorities. This reduction represented the reduction in the fixed partial of 168,670 from the Chairman of the Supervisory Board and 108,000 for Financial -- the Financial Director. The fixed annual pay for -- was fixed at EUR 104,000 and was paid pro rata temporaries for the current period of 16th of November, the date of appointment, to the 31st of December 2020 or 54,145 -- EUR 3,000. The variable pay in short term of the Supervisory Board was highly penalized by COVID-19. Indeed, in reason of the epidemic, the group did not reach the level of cash flow set for the quantitative portion of variable short-term pay. So only the short term was paid, and that was 51% of fixed pay for a maximum of 103% -- 130%. Members of the Supervisory Board benefited from performance shares in the same proportion as in previous years or 35,000 shares allocated to the President of the Supervisory Board and 34,000 to the Financial Director. Director of Operations received a pro rata amount of 1,200 shares. I hand over now to the statutory auditor.

[Interpreted] Ladies and gentlemen, hello. I'm going to present to you, in the name of college of the statutory auditors, a report on annual accounts, on the consolidated accounts and the regulatory agreements, and the resolutions linked to operations on capital, which are presented to you in the extraordinary portion of this general meeting. I propose, since we, as usual, to not read the full report, but to give you the essential points of our conclusion. With respect to the consolidated accounts for which our report is reproduced on Page 157 of the document of universal registration document, we certified the consolidated accounts according to IFRS rules. We indicate we have performed our mission according to rules of independence, and we have not provided any services prohibited by law. Within the justification and applying the specific conditions for preparation of accounts created by the [indiscernible], we bring to your knowledge the key points of the audit, with respect to the risk of significant anomalies, which according to our judgment, were higher for our audit and as well with these activity points. These have to do with the assessment of the adjusted fair value of -- in the consolidated accounts and the judgment exercise in determining the fair value, true market value. Second point is the assessment of the amounts taken off of the rent, given the materiality of the decreases in depreciation of credit in the consolidated accounts, and the part of judgment exercised in the context of the health crisis of COVID-19. We also reviewed the management report and other documents sent out to shareholders without observation from us. Lastly, our report describes the responsibilities of statutory auditors and the communication to the Audit Committee. In our report about annual accounts on Page 184 of the universal document, we certify the annual accounts presented according to the French standards. We indicate as for the consolidated accounts that we performed our mission in rules of independence that are applicable to us. After the reminder of the context of preparation linked to the COVID crisis, we bring to your knowledge a key point of the audit as well as the response given to it. The assessment of depreciation of participating securities linked to shopping centers and the evaluation and prospects of profitability. These assessments are considered to be a key point in the audit, given the importance of such securities and annual accounts and the part of the judgment, which has been -- which has prevailed in the other -- there have been no observations formulated by us in this respect. Lastly, we have verified the concordance of information about compensation and fringe benefits in there -- in the favor of corporate offices. To conclude about the ordinary part of this assembly. You will find on Page 326 of the universal document, a report on overregulated account. This describes the nature of the purpose and their means of the -- agreements already approved by your general assembly, and the execution continues during this year. This concerns 2 loans of undetermined at lengths with Nordic held indirectly [ 55 6 ] point by the [indiscernible] ,and agreement having to do with the fiscal representation by your company of Simon Global BV held by Simon, shareholder, holding more than 10% of the voting rights of your company. In addition, we were informed of the continuance of 2 agreements of indemnization under certain conditions. If a constrained departure of Mr. Jean-Marc Jestin and Jean-Michel Gault, an agreement that was already approved by your general assembly and which has not been exercised during the year. In the framework and the extraordinary part of the general assembly, we have drawn up 2 reports. First, on the reduction of capital, which is proposed on the 19th resolution. And during -- in the resolution, there are no observations to express in the reduction of capital envisaged. And a report on the issuance of shares and various securities with maintenance or removal of perpetual rights to subscription on the 24th resolution. Insofar as the 21st and 22nd resolution with respect to -- with suppression of preferential rights to subscription, given the conditions that have been decided, we have no observations to express about the means of determination of the price of issuance of capital to be -- should the definite conditions under which not being fixed. We express no opinion about these and about the proposal of suppression of perpetual rights as well. With respect to the 20th and relative to issuance with [ of subscription rights, the means of determination of the price of issuance of capital is not indicated. We will give no opinion on the choice of the elements of calculation of the price of issuance. We are drawing up an additional report, if necessary, if delegated so by your Supervisory Board in terms of the securities and value thereof. Thank you very much. I will hand over now to the secretary.

[Interpreted] Thank you very much, Ms. Auditor. We're now going to carry on with the Q&A session. Now as we had already announced, the shareholders have now identified themselves by the VOTACCESS secured platform, have the possibility of asking remote questions or questions remotely. We'll do our utmost to provide answers to the greatest number of questions.

[Interpreted] We got a first question. You're now referring to a good recovery, business recovery since reopening. Could you give us some further details for each one of the countries?

Yes, true. We need to underline the fact that this business turnaround is quite good because all the malls have reopened in all of the countries with some limits with restaurants and movie theaters and fitness clubs in some countries. But the good news is that everything has reopened. And as I indicated already, the footprint is a lot more rapid than in last year's end of lockdown period. And this is true in all country. Now those countries that are more positive, Italy, France and Spain versus last year, with immediate progress, much more significant than the ones we experienced in 2020. Perhaps less footfall in other countries, for example, Central European countries or the Netherlands. And this is related to restrictions among students for some of those malls or homeworking. So to make a long story short, this is a generalized improvement. In Scandinavia, for example, that experienced a very strong turnaround and improvement of footfall as early as the first of -- end of lockdown period. Well, record levels actually reached 80% versus a normal year today. So this is a generalized improvement. In terms of turnover figures, we still don't have the figures. We will disclose them when publishing our semiannual results, but the information we're garnering from our tenants and on that basis of that information, a return to consumption patterns is very significant in all countries.

Thank you very much. It seems that we have no other questions online. And this was actually the only question that got communicated to us via the platform. If there is no other question, then let us go on with the presentation of the results of the voting of the resolutions into those shareholders that wanted to vote remotely. The votes were accepted until the 14th of June. And the access, VOTACCESS platform remained open till 3 p.m. yesterday. And we published the results or the detailed results. We are going to publish them right after this meeting, but let us actually tell you the approval rates of the various resolutions. Now let me remind you that the meeting has 2 different parts. One part was dedicated to the ordinary session, and the second was the extraordinary session. Insofar as the resolutions pertaining to the ordinary session, one can observe on the screen. As you can see here on the right-hand side, the approval rate, then the approval of annual accounts and 2020 consolidated accounts were approved at over 99.8%. The allocation of the results for the fiscal year 31st of December 2020 and the distribution of EUR 1 per share were approved at 98.27%. And agreements and engagements subject to Article LT 25-86 within the commercial code were adopted at close to 100%. Those related to the renewal of the 4 members or 4 members of the Supervisory Board were all adopted close to unanimously. And the resolutions relative to the compensations, the 2020 compensations and the compensation policy in 2021 of corporate executive officers were fully adopted. And here again with a great majority, over 97%. Resolution #18 related to the share buyer was adopted at 99.55%. Let us carry on with the resolutions related to the extraordinary session. And as of -- or on the basis of what you can see on the screen, resolution #19 related to the delegation of competency. Insofar as this year, reduction through the cancellation of treasury shoes was adopted at 99.97%. And resolutions '20 to '26 related to the renewal of financial authorizations were fully adopted. And finally, the last resolution related to the general ordinary meeting related to the formality was adopted close to 100%. And the detailed results of those votes will be published right after this general meeting and in Klépierre's website. And I will now kick it over to Mr. Jean-Marc Jestin for the closing of our general meeting.

[Interpreted] Thank you, Julia. Thank you for this general meeting. I would like to conclude on 2 different items. First of all, I'd like to thank all the shareholders that took part in this meeting. And our quorum surpasses all of those of previous years. And before we conclude with just a few [ years ], I would like to give you the next date. On the 21st of June, we'll have the dividend, the payoff on the 23rd of June. And the 27th of July and October, we will be publishing the results of the first half of the year and the activity of the third quarter 2021. We would like to thank you, ladies and gentlemen, for this commitment once again. And I would like to thank Jean-Michel Gault and Beñat Ortega, who are here with me. I would like to thank you for your support with all the teams. And in 2 very difficult years, they displayed our company's ability to weather the store, whether from an operational standpoint as well as the financial standpoint. The discipline we have really differentiates us from others. Let's meet again next year, hopefully, for a general physical session, and have a very nice evening. And let's meet again on the 27th of July for our half year results. Thank you very much. [Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]