L1 Long Short Fund Limited (LSF) Earnings Call Transcript & Summary

Good afternoon, everyone, and thank you very much for joining us for the L1 Long Short Fund Limited Investor Presentation. My name is Mark Landau, and I'm the Joint Managing Director and Chief Investment Officer of L1 Capital. Those of you on the webinar will be able to follow the presentation as we roll through. And for those who don't have access to the webinar, you'll be able to follow through the presentation that was lodged on the ASX earlier today. So turning to Page 2. Today, I'd like to provide you with a performance update and overview of LSF, our market outlook and how we're seeing the macro and equities outlook more generally, some portfolio themes and key positions that we're exposed to in the portfolio, and how we're looking to close the gap to NTA. Turning to Page 4. The L1 Long Short strategy has performed very strongly since the market sell-off in March. The NTA has increased by roughly 70% from $1.08 on the 23rd of March to $1.83 on the 4th of November. We continue to be positioned for rising equity markets and a major rotation towards oversold value and cyclical stocks. There are several potential drivers of our rotation to cyclical stocks such as the extreme monetary and fiscal stimulus that's already occurred and is continuing to occur, positive leading economic indicators, cautious investor positioning and a gradual recovery from COVID-19 that we expect to play out over the next 12 to 18 months. We see 4 broad areas of opportunity across the market: monopoly real assets, COVID-19 losers, depressed commodities and demergers and restructures. Each of these areas, we think, represents a fantastic risk award proposition. The Board has enacted a large and aggressive share buyback program, which has significantly closed the discount to NTA. Furthermore, the investment team has substantially increased their investment in LSF after the full year results in August. Turning to Page 5. As you can see on Page 5, the Fund has had a very pleasing set of performance in both 2019 and 2020, driven by strong stock selection despite the enormous headwind for value investors like L1. In 2019, the Fund returned 25.5% after fees; while in 2020, the Fund has delivered positive returns. I'm pleased to say after a very strong start to November, which compares to around negative 5% for the ASX 200 Accumulation Index. The team was able to stay composed and invested based on fundamentals during the crisis, and that's definitely paid off over the last 6 or 7 months. The crisis and the market dislocation that occurred at that time represents the best investment opportunities that we've seen over the past decade. And we continue to see very large valuation upside across the portfolio today. In the table at the bottom of Page 5, we show a snapshot of performance over various time periods and also provide a reference for how that performance compares to the ASX 200 Accumulation Index. Pleasingly, we've seen a continual improvement in the performance of LSF both in absolute and relative terms. The Long Short strategy has returned 15.8% per annum after fees compared to around 5% per annum for the ASX 200 Accumulation Index. We recognize that this performance has not been delivered to LSF investors, but we provide that information to give people a sense of what's possible from this investment team. On Page 6, we outlined the key drivers of performance that have delivered strong returns to investors since March 2020. The key factors were buying or adding to numerous oversold stocks near the March lows. The team acted decisively to buy numerous undervalued quality large-cap and small-cap stocks. Some of the examples we have listed here include Transurban, Qantas, Tabcorp, Oil Search, Downer, Scentre and Star Entertainment. While in the small cap space, we aggressively bought Lovisa, Webjet, Hotel Property Investments, ALS Ltd., Karoon and Eclipx. All of these positions have had very large rally since we invested, and we remain invested in many of these stocks as we see significant further upside despite their rallies. We also increased our net long by more than 30 percentage points near the depths of the market. We moved from roughly a 70% net long at the end of February, to just over 100% as an average over the past 6 months. At a time when many investors, both professionals and retail investors were liquidating their shares due to COVID-19 fears, we aggressively added to our market exposure, taking our net long to the highest level that we've had in the history of the Long Short strategy. We continue to believe that equities look very attractive at present, and even more so when compared to bonds, cash and property. We also exited many of our short positions at the lows of the market back in March. We closed roughly 1/3 of our short positions near the market lows, going from roughly 34 shorts in February to around 24 shorts by April. That decision proved instrumental in avoiding what would have been a serious headwind as many of those positions that we were short rallied significantly over the subsequent recovery. And lastly, there was strong stock picking from our investment team, where there are numerous examples of picking the top-performing stock or the top 2 performing stocks within a given sector. Some of the strong performance in different sectors included Chorus in telcos, Nine Entertainment in the media space, Lovisa in retail, Star Entertainment and AP Eagers in the consumer discretionary space, and there are many others. On Page 7, we try to provide you with as much detail as possible around the key contributors to performance since the start of July. What we've listed here is each of the stocks that have been major contributors, the total return that the portfolio has enjoyed from holding that position, as well as a brief summary of what the reason for that rally has been. We also provide the key detractors on the following slide. On this slide, I won't go through each stock line-by-line, but what I propose to do is just to give you a summary of some of the more interesting ones or topical ones at a headline level. Bed Bath & Beyond has been one of the key contributors to performance over the past few months. The new CEO, Mark Tritton, has delivered a huge turnaround in operating performance. We've seen the company deliver 6% same-store sales growth, which is the best performance in many years. They've done some fantastic noncore asset sales and initiated a large buyback program. The shares have rallied from around $9 at the time of initial investment to more than $20 only a few months later. And despite that, we think the shares are trading on only around 2x earnings a couple of years out. Nine Entertainment has written more than 50% over the past few months. We've seen accelerating operating performance across all of their key divisions, including Stan, Domain and Nine free-to-air and digital. Eagers Automotive has been a fantastic performer for the Fund as well. We've seen improved sales trends, a very large cost out program and debt levels go from over geared to undergeared in the space of 6 months. We bought the stock at around $3 to $4 back in the crisis in April, and we subsequently sold that position around $11 in the last month or so. The last I'll go through is SES Group, which is towards the bottom of the table on Page 7. SES Group is a French-listed stock. It has a number of key assets. But one of the underappreciated assets they own is the satellite spectrum, which is instrumental in enabling 5G in the U.S. They own roughly 45% of the spectrum for all of the U.S. That spectrum was recently sold to the U.S. government for around $3.2 billion after tax, which is equivalent to almost the entire market cap of SES. On top of that, SES has 2 other divisions that generate more than EUR 1 billion of earnings. And we believe that the outlook for that business is very attractive compared to the very depressed expectations that the investment community has. The company had a very strong quarterly results just in the last week or so with very encouraging early signs of improvement across both of their divisions. Turning to Page 8 and the key detractors from performance between July and October. Unibail-Rodamco, which is the highest quality shopping center group globally. It owns the #1 or #1 and #2 shopping center in most of the great global cities, such as New York, Milan, London and other parts of the U.S. and Europe. The company recently initiated a EUR 9 billion reset plan, which, we believe, was very poorly timed and structured and included a EUR 3.5 billion rights issue. The shares remain very attractive as they are trading at an 80% discount to the last published NTA. Even allowing for a potential capital raising and a reduction in the asset values of some of those shopping centers, we believe the company is dramatically undervalued, and the decision on the rights issue is likely to come through in the next couple of days. Regardless of the outcome, we believe the shares remain very attractive and we are expecting to see a dramatic improvement in the share price over the next year as foot traffic recovers across the world. Oil Search is the next stock I'd like to go through. Oil Search has obviously been hit very hard due to the falling oil price because of the COVID-19 lockdowns across Europe and parts of the U.S. We believe Oil Search has roughly 100% upside to fair value if you believe the shares would return to their pre-COVID levels. That allows for the fact that Oil Search did a capital raise back in March this year, where essentially the equivalent of the $7 share price that they always used to trade at for the last 5 years would be around about the mid-$5s. That compares to around half that level where they're trading today. Vinci, which is another French-listed company that we're invested in, owns a range of European toll road and airport assets and it's been hit by the recent COVID-19 lockdowns. Despite very depressed traffic across its road and air infrastructure, Vinci is generating around a 7.5% free cash flow yield. And if you assume more normalized traffic, it would be generating close to a 12% free cash flow yield, which is an incredible cash flow return for a very high-quality set of infrastructure assets. And the last I'll go touch on is Health & Happiness, which is a Hong Kong listed stock, which has a large infant formula business and is also the owner of the Swiss vitamins brand. COVID-19 and the struggles in the daigou channel this year have impacted the typical demand patterns. But we believe the growth outlook for Health & Happiness is very compelling. We expect earnings to grow at 15% to 20% per annum for the next few years. The stock trades on a P/E of only 14.5x, and it generates more than a 20% return on equity, representing its strong brand value and growth outlook. Turning to Page 10. Equities to us look very attractive compared to other asset classes. We believe that the very extreme monetary and fiscal stimulus that we've seen this year is likely to cause further asset inflation. Investor positioning remains very cautious due to concerns over COVID-19. And we think that the COVID-19 outlook is likely to improve over the coming year, leading to a strong rally and rotation in equities. Value and cyclical stocks, which have lagged the market massively in 2020 are set to recover. On Page 11, we show the relative performance of growth stocks versus value stocks. And as you can see in the chart on the right-hand side, the combination of low bond yields combined with COVID-19 have created one of the most dramatic periods of outperformance for growth stocks in the last 50 years. The current period of underperformance of value stocks is by far the largest and longest that we've seen as far as data goes back for 50 years. COVID-19 has essentially caused a melt-up in high P/E stocks as investors sought safety in COVID-winners. Morgan Stanley's U.S. growth basket, which is a very broad basket of U.S. growth stocks has rallied 41% this year, while their basket of U.S. value stocks is down 55% over the same period. That's a 96 percentage point difference in only 10 or 11 months. As you can see in the chart on the right, the timing of the L1 Long Short Fund IPO was unfortunate as L1 as an investment strategy is very focused on value and contrarian investing and this has been by far the worst period for value investors in the last 50 years. The underperformance that we had faced over the previous few years only accelerated as we entered 2018 through to 2020. And it's been pleasing that despite this headwind, the Fund and the company has performed well in 2019 and 2020, which has been roughly a 25% return in 2019, which was outperforming the ASX 200. And again, the fund is up in 2020 despite the ASX 200 being down 5%. So the bulk of that performance has been generated from stock picking with absolutely no tailwind whatsoever from the trends you can see above. If we were to see any stabilization or reversal of this trend, we believe that would be a major positive tailwind for LSF performance. Turning to Page 12. The chart on Page 12 shows the valuation premium of various sectors and factors relative to their 10-year history. As you can see in the chart, the blue arrows show the current valuation of various sectors and factors, while the blue line shows the range that has been observed over the past 10 years. Those sectors and factors on the left-hand side of the page are trading very expensive versus their 10-year history, while those on the right-hand side in the green are trading much closer to the cheapest they've ever traded in the last decade. To summarize, a very busy chart, high P/E growth stocks have never traded more expensive than they had at the moment versus the last decade, while low P/E value stocks have never traded cheaper in the past decade. To be clear, we're not suggesting that every low P/E stock is a buy and every high P/E stock is a short. Rather, there are many value stocks that look attractive, and there are many growth stocks that look expensive. And what we're trying to do in the Long Short strategy is to identify those stocks that look oversold or undervalued and equally to short some of these high P/E stocks that have a negative catalyst. As you can see in this slide, there are numerous sectors that are trading very, very far above their decade average. Those sectors, in fact, as you can see on the left-hand side, so areas like technology, health care, high-momentum stocks would be the classic examples. While on the right-hand side, low P/E stocks in metals, in particular, are the ones that stand out on the right-hand side. There are numerous stocks that we believe have very large upside as COVID-19 resolves. In our March presentation, we identified a number of stocks that we believe were very oversold and have considerable upside as the impact of COVID-19 moderated over time. All of these shares have rallied very strongly since that time with the 1 exception of URW, and we see substantial further gains ahead. Many of our stocks are trading far below their pre-COVID-19 levels of only January 2020, implying that these companies have a large permanent change to their earnings and cash flows. On average, the value of these companies would need to increase by more than 50% if they were to return to their pre-COVID-19 levels. In most cases, we believe that the lasting impact of COVID-19 on these companies will prove to be manageable and even a partial recovery will deliver strong returns for our investors. On the table at the bottom of Page 13, you can see the range of companies identified: Scentre Group, which owns the best quality set of shopping centers in Australia; Oil Search, very high-quality oil and gas business; Worley, the top engineering consulting firm for oil and gas and chemicals; Qantas, as everyone would know, the dominant airline in Australia and frequent flyer program; Unibail, which is the owner of the best quality set of shopping centers globally in the best cities in the world, such as New York, London, Milan and Paris; Downer, which is a high-quality infrastructure maintenance business; and Star Entertainment, which is the monopoly casino that is run out of Sydney, Brisbane and Gold Coast. Turning to Page 15. We believe there are numerous positive events that have happened over the past 6 months in the areas of vaccines, treatments and testing, and we expect further positive data to come through over the coming months. Over the next 2 months, we expect to see updates in terms of interim data from Pfizer, Moderna and AstraZeneca, with Pfizer being the most likely to report over the next few weeks, while Moderna and AstraZeneca are more likely to report around December. In total, there are 9 companies that are currently in Phase III trials, 5 of which are from the Western world, 3 from China and 1 from Russia. There are also more than 100 other companies that are currently conducting clinical trials for vaccines. We expect to see positive data from at least one of the Western world candidates over the next couple of months, which represents a major inflection point in people's mindset towards COVID-19. Secondly, there's been very encouraging data around treatments. Two of the most interesting treatments that we've observed are the monoclonal antibody cocktails comprised from Eli Lilly and Regeneron, both have reported Phase II clinical trials that have shown a significant reduction in symptoms and duration from mild-to-moderate cases. The most interesting part is that the most at-risk patients, which are those over 50 and those that have comorbidities, so things like diabetes or hypertension, those patients are the ones that are getting the greatest benefit from these treatments with a greater than 70% reduction in hospitalization rates. Thirdly, we're seeing huge progress in testing. In the last couple of months, we've seen new rapid antigen tests from Abbott and Roche and others that will enable mass screening and contact tracing. These tests are incredibly fast, accurate and low cost and could be a game changer for sectors like aviation or the cruise industry. The tests can generate results in around 15 minutes. They have roughly 99% accuracy and they cost roughly USD 5 per test. What we find interesting is that there's been clear progress across each of these 3 areas and yet the share prices of many companies that have been negatively impacted by COVID-19 imply little or no improvement to the outlook for COVID-19 going forward. And it's for that reason that we see this as being the single best opportunity in markets today. So in terms of our portfolio positioning, if anyone who's followed L1 for a long period of time, you would know that we do a very detailed bottom-up company research. We build our portfolio bottom-up from the stock research and industry research that we do. But if you were to step back and look at our portfolio today, you would observe 4 main areas that we've really positioned the portfolio to benefit from. We believe each of these opportunities provides compelling asymmetric risk reward opportunity, and we're very excited about the opportunity in each of them. The first area are monopoly real assets. These are dominant or privileged assets that have normalized dividends or free cash flow yields of 6% to 7% per annum with solid growth going forward. In many cases, there's further upside from buybacks or special dividends that will only add to returns. And lastly, they're a very compelling alternative for investors seeking a safe yield in a world of 0% to 1% per annum bond yields and cash returns. COVID-19 hit stocks. There are many shares that still trade 30% to 50% below their January levels, largely due to the impact of COVID-19. These shares are pricing in a very bearish long-term outlook even though we believe they will be able to reemerge post COVID-19 with only a moderate negative impact. Depressed commodities. There are numerous high-quality cyclical stocks at a low point in their cycle that, we believe, are likely to outperform over the coming years as the cycle recovers. Commodities such as oil, coking coal and lithium look to be standouts as they're trading at an extreme cyclical low and much of the world's production is simply not viable at current depressed pricing, and we're starting to see the supply response that will enable higher prices that we expect will play out over the next 1 to 2 years. And lastly, restructures and demergers. These are high-quality businesses within a conglomerate structure. They trade at a massive undervaluation to their fair value, which provides a degree of capital preservation -- sorry, a degree of capital protection for investors. We also observed that in many cases, there is a clear intent by the Board and management to deliver value to shareholders and they're doing this through asset sales, demergers or capital management. On Page 17, we identify a couple of the stocks that we're invested in, in the monopoly real asset space. Atlas Arteria owns a 31% stake in APRR, which is the best toll road network in France, and they also own 100% of the Dulles Greenway asset in the U.S. These are monopoly, long-term toll road concessions currently delivering a 5% dividend yield, which is likely to rise to almost 7% in calendar year '22. Obviously, the recent lockdown in France have caused a temporary impact in terms of their cash flows, but we believe this is likely to recover relatively quickly just as we observed back in April. We expect Atlas Arteria to deliver rising cash flows and dividends due to falling CapEx, lower French corporate tax rates, Dulles becoming cash flow positive and contributing to the group and also a possible concession extension that could occur with the French government over the next 12 months. Chorus is the monopoly owner of New Zealand's world-class ultrafast broadband network, and they also own the legacy copper network. CapEx is expected to fall sharply from 2020 to 2023, now that the bulk of the network build has been completed. The company remains undergeared compared to its peers, and the Board has flagged that it's committed to paying out 80% to 100% of free cash flow as dividends. Importantly, the increase in free cash flow is not as a result of any aggressive earnings assumptions we have, but rather as a result of the collapse in CapEx now that they've finished their 10-year investment program to roll out the fiber network. L1 Capital remains the largest shareholder in Chorus, and we've made 6 detailed submissions to the regulator and presented in New Zealand parliament to push the case for Chorus. The second theme of the COVID-19 hit stocks. Star Entertainment and Safran are 2 of the best opportunities we see in this space. Star is the owner of the monopoly casinos in Sydney, Brisbane and Gold Coast. It has a market cap of only $3 billion, which, we believe, hugely undervalues the asset base, licenses and expected cash flow of the business. If the shares were to recover to their January levels, it would represent around 35% upside. We believe the outlook for Star is incredibly compelling, given the long-term structural growth outlook from Asian gamblers and tourists and also the corporate appeal with 2 large Asian consortiums, Far East consortium and Chow Tai Fook on the register with a 10% stake and actively seeking regulatory approval to increase their stake further. Safran, which is listed on the French Stock Exchange, is the world's highest quality aerospace company. It's a global leader in manufacturing and parts for narrow-body jet engines. They're set to deliver more than EUR 1 billion of free cash flow in 2020 despite COVID-19 causing the worst aviation conditions in history. Safran has a dominant industry position with an enormous installed base of young engines that require maintenance for decades to come. Earnings are set to recover strongly as global air travel demand resumes. And on top of that, management have already enacted a EUR 2 billion cost-out program that we expect to deliver earnings growth in the years ahead. Theme 3, depressed commodities. Teck Resources are in some of the world's best quality copper, coking coal and zinc mines, including the majority of the QB2 copper development in Chile, which, we believe, will be a top 5 copper mines globally. The assets are located in stable and attractive countries such as Canada, the U.S. and Chile, and they are a low-cost producer with a large cost out program underway that will further lower the group's cost base by 2021. Despite currently operating with incredibly depressed commodity prices, the shares trade at a P/E of only 8x FY '21 consensus numbers and that these commodity prices, a large proportion of the coking coal industry is currently loss-making and they're currently shutting production or closing mines altogether. 60% of current earnings for Teck come from coking coal in a typical year. In the case of Worley, they're the world's leading engineering consulting firm focused on the energy and chemicals sector. They're also instrumental in the transition to new forms of energy. It's a high-quality business with a really diversified country and client base, and it is not exposed to large fixed-price contracts. Worley is winning market share, and it's doing incredibly well, while numerous competitors are facing bankruptcy or losing key clients and staff. And we expect Worley to emerge from this crisis even stronger than before. The shares are currently trading at $9.50 versus $15 to $16 back in January. The company recently announced a $275 million cost-out program, which compares to a $560 million EBIT that consensus expects them to deliver in FY '21. This cost-out program provides a very important earnings offset given weaker end markets, which we expect to begin improving in FY '22. The last thing that we're exposed to are the restructures and demergers. CK Hutchison is a Hong Kong listed stock that owns an incredibly high-quality set of infrastructure assets around the world. USD 40 billion of power infrastructure assets, more than 50 ports and the biggest and fastest-growing pharmacy chain in China are just some of the assets within the group. The shares trade on a P/E of only 5x with a 20% free cash flow yield and a 6.5% dividend yield. Interestingly, in the last week, the company flagged that they will be selling their telco towers assets in Europe to Cellnex and that will deliver around USD 10 billion in cash. That equates to roughly 40% of CK Hutchison's market cap and the towers assets contributed only 4% of earnings, representing an incredibly accretive transaction. We believe, given the cash on the balance sheet, the company will be well placed to engage in a large buyback program and/or major M&A in 2021, both of which would be very accretive for shareholders. And lastly, News Corp. News Corp is a stuff that we've talked about many times over the last couple of years, but we feel that the opportunity for News Corp in terms of a structural change in the business is getting close. The company is incredibly undervalued. Its main asset is REA, which they own roughly $10 billion of stock in, around a 61% stake. They also have about $2 billion of net cash on the balance sheet, and that equates to more than the entire market cap of News Corp. On top of that, they own a number of other very attractive assets, such as The Wall Street Journal, Dow Jones, realtor.com, Harper Collins, Foxtel and a number of others. The Board and CEO have recently reiterated they're evaluating a restructure of the business to unlock upside to valuation, and we believe that the operating trends within News Corp are beginning to accelerate. And that was demonstrated last week when they announced their quarterly earnings, and every division exceeded consensus expectations. On Page 21, we show the portfolio positioning for gross and net exposure by geography. The key points to make are that the net long remains much higher than usual. A typical net long for our strategy is just over 60%, while the current net long is around 117% and that should give people a sign of how attractive we think equities are at the moment. We believe that valuations are attractive, investor expectations are far too pessimistic, you've got extreme central bank and government stimulus and the alternative asset classes like cash and bonds are delivering negative real returns. Australia represents a very attractive market at the moment. The market is still trading about 15% below its February highs. You've got extreme RBA and federal government support, very low COVID case numbers and improving economic trends. We also believe that Europe and Hong Kong are very attractive, but we've made an intentional skew towards global businesses rather than those that are reliant on the European or Hong Kong economies. And lastly, the U.S., which we are also long, that we find less attractive is largely because we believe that market is the most crowded geography for investors globally. The market is trading at all-time highs. And you now have the risk of the Biden administration pushing for higher taxes or regulation both of which would be a negative for equities. We also expect to see gradual U.S. dollar weakness over the coming years, which could provide a further headwind for U.S. equities. Turning to Page 23. So what are we doing to close the discount? There are 4 measures that we have put in place to close the discount to NTA. Firstly, we've enacted an on-market buyback of up to 10% of the shares in LSF. As of the end of October, $51 million of stock have been bought back at an average price of $1.28, which represents roughly 6% of issued capital. The buyback has been nicely accretive for shareholders and has also reduced the discount to NTA, which was at around 40% at the time of the buyback and has now come in to around 15% as of the close of business on Friday. The buyback will continue until a share price discount to NTA narrows to 10% or less, which will be a benefit to all shareholders. The senior management team of L1 Capital, has continued to buy shares on market, and we remain very positive about the outlook for LSF. In August after the full year results, L1 senior management team purchased an additional $10 million of LSF shares on market. The L1 team intends to continue buying LSF shares over time, given our views on the portfolio and on the capabilities of the investment team. We've also attracted a number of high-quality people to our investment and Investor Relations team. Hopefully, people would have seen in the last couple of months, we've added Andrew Levy to our investment team. Andrew spent the previous 16 years at Macquarie as one of the top-rated equities analysts. We believe Andrew is an exceptional hire, and we're very excited to have him join our team. We also hired Chris Clayton, who was previously the Head of Sales and Marketing at BT. And Chris will be heading up our distribution and Investor Relations effort. There will be a team of 5 people that will be working with Chris. And we believe that, that Investor Relations capability will do a much better job than we've done in the past of communicating what we're doing in the portfolio and how we're positioning the company for success long term. And lastly, we've enhanced our shareholder communication and engagement. We're providing regular webinar updates, broker and planner roadshows, detailed monthly and quarterly reports, increased portfolio disclosure and obviously the enhanced Investor Relations team. And hopefully, people can see from all the various measures we're taking, how committed we are to closing the discount. So in conclusion, the portfolio has performed very strongly since March. Our detailed bottom-up investment process has identified numerous companies with company-specific catalysts that we think will drive performance over the coming years. As the outlook for COVID-19 gradually improves, we expect to see a strong recovery in many oversold companies and a rotation into value and cyclical stocks. Investor positioning is very crowded and risky in growth and momentum stocks, which are now at a 50-year extreme. We've identified 4 areas of opportunity that we think represent an exciting risk-reward proposition. And the Board and investment team remain completely focused on closing the discount to NTA and enacting a series of measures to achieve that goal. Thank you all for your time listening today. We appreciate the support that we've received from our investors, both old and new over the last 6 months. And we have received a bunch of questions over the last week or so. Most of the questions have been addressed through the contents of the presentation. They touch on some pretty familiar topics. And for anyone who's asked questions that are for more specific nature, our Investor Relations team will reach out later today to ensure that we follow up with you in a timely manner. Thank you all so much for your time. I hope you're all doing well, and we look forward to catching up with you soon. Thank you.