Laurentian Bank of Canada (LB) Earnings Call Transcript & Summary

[Interpreted] Good morning, and welcome to Laurentian Bank's Annual Meeting of Shareholders. Before we begin, I will ask our General Counsel and Corporate Secretary, Anna Dell'Api, to say a few words on our cautionary notice regarding forward-looking information. Anna?

On behalf of those speaking today, I would like to point out that some statements may include forward-looking information. A detailed cautionary note regarding forward-looking information appears on screen and in our Q1 2025 public disclosure material available on our website. We refer you to it. Please note that forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties that may cause them not to occur. I now turn the meeting over to our Chair.

Thank you, Anna. [Interpreted] It's hard to believe that a year has passed since my last address at our annual meeting as Chairman of the Board of the Laurentian Bank. Aware that we still have a lot of work to do on many fronts. I am pleased with the progress that we have made since then. 2024 was a big transition year for the bank. Significant investments and foundational work have been made to solidify and pivot the organization towards the future and in the right direction. Our financial performance in 2024 demonstrated the bank's continued resilience. Given macroeconomic pressures and more recently geopolitical tensions, the bank under the leadership of Eric Provost and his team has maintained its prudent approach to capital and liquidity management, which will allow us to maintain a solid financial position, solid for the future and will allow us to focus on achieving our medium-term objectives. I'm very proud of the work that has been done this year to stabilize the bank. The Board of Directors in collaboration with management has dedicated a great deal of time and effort to understanding how the bank works. The knowledge that we have gained as we have done these studies has been used to shape the bank's strategic plan launched at our Investor Day last May. The Board fully endorses the strategic plan laid out in May 2024, being led by Eric Provost and his leadership team and believes in their ability to execute on it. Indeed, our customers are at the heart of our path forward and good progress has been made over the last year in delivering on our priorities. As a part of the Board's ongoing commitment to renew and enhance our overall effectiveness, we are pleased to welcome 3 new independent directors to the bank in February of 2024, Professor Johanne Brunet; Mr. Jamey Hubbs and Mr. Paul Stinis. [Interpreted] We also announced the appointment of Mr. Robert Ouellette as a new independent director of the bank effective November 1, 2024. Their collective expertise in general and more particular in areas such as innovation, information technology and cybersecurity, banking and regulatory risk management as well as corporate leadership have broadened the skill sets and the depth of our Board. [Interpreted] As we continue to focus on customer service excellence and consolidate our position as a long-standing Quebec institution, their contribution will help ensure Laurentian's long-term success. Last year, the Board also approved the creation of a new information technology committee, which is an important addition to our corporate governance structure. Advancing technology is one of the cornerstones of the bank's future. And this committee will help ensure that the bank's technology assets are kept current, have a robust resilience and recovery capabilities and will ensure that cybersecurity needs of the bank are met. [Interpreted] In 2025, our priority will be to execute the strategic plan while continuing to simplify the bank. I have every confidence in Eric and his team to achieve the results we set ourselves this year in terms of critical applications; strengthening and improving our IT infrastructure; and simplifying and streamlining our operations. In conclusion, I would like to acknowledge and thank the dedicated employees and workers of Laurentian Bank. You continue to put our customers first and provide them with positive experiences. I would also extend my sincere appreciation to my fellow Board members for their dedication to the Board, to myself and to Laurentian Bank throughout the year. [Interpreted] And last but not least, to our customers and to you, our shareholders, we remain committed to building an even stronger and larger Laurentian Bank that brings value to you. I think Mr. Provost, I would like you to take the floor. Over to you, please.

[Interpreted] Thank you, Mike. Good morning, and thank you for attending Laurentian Bank's Annual Meeting of Shareholders. I'm proud to be with you here today because for nearly 180 years, the Laurentian Bank has remained steadfast in its commitment to customers and communities in which we operate. Throughout our rich history, we've been here to help individuals and families prosper. And we've also contributed to the development of businesses, which has always been a source of great pride for us. [Interpreted] Over the years, the bank has gone through periods of change. And each time, we demonstrated our resilience even when macroeconomic conditions were challenging. We began 2024 with a mandate to better understand the past in order to effectively shape our future. We have made significant progress in understanding our strengths and the areas where we need to improve. With a renewed management team, we embarked on a review of our product range and processes and results that have informed the implementation of our strategic plan entitled the way forward, launched at our Investor Day last May. Our sustained efforts throughout the year led to some notable achievements, not the least of which was in personal services, customer services. We were able to improve our handling of priority customers and have an action plan to enhance the customer experience. [Interpreted] These elements have already had a positive effect on customer satisfaction, and we will be pursuing these efforts over the coming months. To simplify our banking, we have streamlined our operations and divested certain activities from our Capital Markets division. This transactions now enable us to focus on activities where we have recognized expertise in order to ensure greater profitability. Another significant change was the merger of the LBC Capital and Northpoint Commercial Finance brands under a single banner. We're seeing promising growth indicators in our specialized sectors and are concluding new partnerships. We have more than 300 new dealers added to our portfolio and inventory financing, bringing us to 6,300 dealers in North America who are served. [Interpreted] At the same time, we had to invest in technology to enable us to increase our resilience and solidify the foundations required to significantly enhance our digital capacities and customer experiences. Rest assured that these investments will continue in 2025. We still have some work to do, but we know exactly where we want to go and where we want to be in the execution of our strategic plan. 2024 was a year for implementing our strategic plan and 2025 will be a year focused on executing our priorities, which are success priorities for the long term. We anticipate progressive improvements, and we are in line to reach our goals. We will continue to increase our presence and focus our efforts in specializing areas to deliver value to both our customers and our shareholders. And finally, one word or a few on the geopolitical and macroeconomic situation. We know that the past few months have been very turbulent. And I want to assure you that the Laurentian Bank's capital and liquidity positions are solid. [Interpreted] We continue our prudent approach when it comes to risk management, and we trust our capacity to manage under these circumstances. In conclusion, I would like to thank our employees for this last year. Our high overall engagement rate of 78% demonstrates your motivation and interest in supporting our customers. Your resilience, commitment and dedication are essential to the smooth running of our organization. Thank you as well, dear customers, for undertaking and standing by us. Your support and loyalty mean a great deal to us. To our shareholders, thank you for your confidence in the Laurentian Bank. The successful execution of our strategy will lead to a more profitable institution. I'd like to thank the management team for spearheading our efforts to chart the way forward. Today and together, we are paving the way to a stronger future. And to members of our Board of Directors as usual, thank you for your advice and your continued support. For the next coming year, I am committed to ensuring that at the Laurentian Bank, the interest of our customers and shareholders continue to be at the heart of everything that we do. Thank you. Have a great day. I'd like to turn the floor over to Mike Boychuk.

Good morning, welcome to our AGM 2025. We received satisfactory proof that the notice calling this meeting was duly publicized and sent to all shareholders of the bank. [Interpreted] I'm sorry, I'm going to do this in English here because my script is done in that manner. Proxies representing approximately 36% of the issued outstanding common shares. Accordingly, there is a quorum present, and I declare the meeting duly and properly constituted for the transaction of business. Registered shareholders and proxy holders who have not already voted may vote their shares at this time. With the consent of the meeting, Ms. Martine Gauthier of Computershare Trust Company of Canada will act as scrutineers and Ms. Anna Dell'Api, General Counsel and Corporate Secretary of the bank will act as Secretary today. Seeing no -- is there any objections to Computershare? I don't see any. Financial statements and auditor's report. Our first item is the presentation of the bank's annual consolidated financial statements for the year ended October 31, 2024, and their accompanying auditor's report. Unless there is an objection, I will dispense with the reading of the auditor's report. Are there any questions or comments regarding this resolution? None? There are no questions or comments. Next, we will appoint the auditor of the bank. On the recommendation of the Board and its Audit Committee, I would like to recommend that Ernst & Young be appointed external auditor of the bank and to authorize the Board of Directors to fix the auditor's compensation. [Interpreted] Can I get a motion for the appointment of Ernst & Young as the bank's external auditors, please.

[Interpreted] Hello. My name is [indiscernible]. I'm a shareholder. I move that Ernst & Young be appointed as external auditors of the bank until the next Annual General Meeting of Shareholders or until a successor is appointed and that the Board determines and approved their compensation.

[Interpreted] Thank you. Does someone second this motion?

[Interpreted] Hello. My name is Junessa Clark, and I'm a shareholder, and I support this motion.

[Interpreted] Thank you, Junessa. Are there any questions or comments?

There are no questions or comments.

[Interpreted] Thank you, Anna. Can you please vote now if that has not yet been done. [Voting]

The next item of business is the election of the directors. The number of directors to be elected at this meeting is 12 in accordance with the bank's bylaws and the recommendation of the Board and its Governance and Compliance Committee. All nominees are listed in the bank's management proxy circular and displayed on your screen for ease of reference. [Interpreted] Can I receive a motion, please, for the election of directors.

[Interpreted] My name is [indiscernible]. I'm a shareholder. I move that each of the 12 nominees be elected to the position of director and hold office until the next Annual Meeting of Shareholders or until his or her successor is elected or appointed.

[Interpreted] Thank you, [indiscernible]. Do we have someone who seconds this motion?

[Interpreted] My name is Junessa Clark. I'm a shareholder, and I second this motion.

Thank you, Junessa. Are there any questions or comments regarding this resolution?

There are no questions or comments.

[Interpreted] Thank you. Please vote now if you have not already done so. [Voting]

The next item is the vote on the nonbinding advisory resolution concerning the bank's approach to executive compensation. The wording of this resolution is set out in the management proxy circular. [Interpreted] May I have a motion to adopt the advisory resolution on the bank's approach to executive compensation?

[Interpreted] My name is [indiscernible]. I'm a shareholder, and I move that the resolution concerning the bank's approach to executive compensation, the text of which was reproduced in the management proxy circular be adopted.

[Interpreted] Thank you, Mr. [indiscernible]. Do we have someone to second this motion?

[Interpreted] My name is Junessa Clark. I'm a shareholder, and I support, I second this motion.

[Interpreted] Thank you, Ms. Clark. Are there any questions or comments regarding this resolution?

There are no questions or comments.

[Interpreted] Thank you, Anna. Please now vote if that has not yet been done. [Voting]

The next item on the agenda is the vote on the amendments to bylaw 12 with respect to the director aggregate annual remuneration. The wording of this resolution is set out more specifically in the management proxy circular. [Interpreted] Can I receive a motion to adopt the resolution confirming the amendment of the bank's general bylaws?

[Interpreted] My name is [indiscernible] I'm a shareholder. I move that the resolution confirming the amendment to the bank's general bylaws, the text of which is reproduced in the management proxy circular be adopted.

[Interpreted] Thank you, Mr. [indiscernible] Do have someone who seconds this motion?

[Interpreted] My name is Junessa Clark. I'm a shareholder, and I second this motion.

[Interpreted] Thank you. Are there any questions or comments regarding this resolution?

There are no questions or comments.

Thank you, Anna. The next item is the resolution -- sorry, is the shareholders' proposals. Mr. Deschamps will provide additional details.

[Interpreted] So we got 7 proposals from the MEDAC. The motions and supporting statements as well as the bank's responses are included in the appendix to the management proxy circular. Following discussions with MEDAC representatives, MEDAC has agreed to not submit to vote for these proposals. Only 3 of them have been submitted to a shareholder vote. I will ask Ms. [indiscernible] to take the floor with regards to the MEDAC proposals.

[Interpreted] Yes, good morning, and thank you for having me. As you said, I represent the MEDAC. [Foreign Language] We have proposed different resolutions. Three will go to a vote. And I will just explain just very quickly the reasons why we are not moving to the vote for the 4 other motions or proposals. I'll explain that. The first one was with regards to fighting against forced labor and child labor in loan and investment portfolios. [Interpreted] The conversation was had with the bank. And commonly, we determined that the Laurentian Bank through its activities was more in a Canadian and American market, and therefore, the motion could be withdrawn. For the second motion, we were talking about advanced generative AI systems and code of conduct. You know that many banks need to face new AI technologies, and we are attempting to promote code of conduct. So to the bank, it was proposed that they voluntarily follow the code of conduct, meaning responsible use of generative AI systems. We had a conversation. The bank heard our concerns and a request was made to put forward some information specifically with regards to policies on acceptable use of data. That is what the bank has put in place, and we can only invite the bank to put more information around the framework for data use. So the motion was withdrawn. [Interpreted] Advisory note on environmental policies. So number 4, proposed to the bank that they annually put in place a vote for the goals, but also their action plan with regards to the environment. This was a proposal that existed before. We called it say on climate already, a conversation happened. The bank confirmed its commitment over the next few years to put in place other less limiting means than the annual vote, but we can only invite the bank to do more. [Interpreted] With regards to now public disclosure of nonconfidential information in line with compensation and tax savings. This was proposal 5. A conversation was had. We invited the bank to attempt to put in place best standards and to be inspired by what is happening elsewhere, specifically in Europe. And the bank confirmed that, that the bank was not subject to corporate thresholds and didn't have to do this disclosure. We can only invite constant efforts done by the bank to be able to work on tax havens and such. So those are the nonvoting motions. Now for the ones that we would like to submit to you here today. The first one from the MEDAC is all of the work done with regards to language proficiency disclosures. So you can see in the circular the information. It's called employee language proficiency disclosure. It was proposed that language proficiency by employees be disclosed by sharing the information by jurisdiction for all territories, countries, states, et cetera, province where the bank works. And so the idea is that on hiring candidate, competencies are evaluated to see if they satisfy the job's requirements that they are applying for. And so there's data on language proficiencies as well. And as you know, the MEDAC defends French. [Interpreted] A survey came out recently saying that Quebecers want companies to do better in the province to ensure this language proficiency reality. So we discussed with the bank despite some commitments, we consider that we will maintain this proposal and push you to put in place a better policy and to put forward and communicate information on languages spoken by employees so that we ensure that the collective effort continues around protecting French. Would you like us to move to the vote one at a time? Or shall I finish the presentation?

[Interpreted] I think you should continue, and we will vote generally afterwards.

[Interpreted] Okay. Good. So my last 2 proposals then. As I said, these 2 are subject to a vote. The second proposal is the reasonable assurance of ESG reports. It is proposed that the Board commits to submit over the next 3 years an ESG report with reasonable certification and not just limited because it's better to have a certification. We believe that reasonable certification every 3 years will ensure and guarantee and reassure all stakeholders. These ESG preoccupations or concerns are international and a framework will be put into place and the superintendent is also going in this direction. So we invite the bank to be proactive rather than reactive and as of today, put in place better quality reports and maybe the adoption of reasonable certification with the goal to reassure all around ESG. So that is for that second proposal. And the last proposal now, which will also be subject to a vote is #6 in your circular. This one is called social dividend and better value distribution. It is proposed that the Board undertake a thought process around the creation of a social contribution, which would be a percentage of their results to support ESG reports and specifically the environment and inequalities. [Interpreted] Over and above the ESG reports and disclosure of information, we consider that the bank could do more in its involvement in the community by maybe imagining a percentage of profits generated that would go directly into a fund to support causes that we would all socially benefit from. So I invite you to vote on that and push the bank to further its commitment to communities.

[Interpreted] Thank you, Ms. [indiscernible]. Thank you very much. Please vote now if you have not already done so, as voting will close shortly. [Voting]

The voting period is now closed. [Interpreted] While our scrutineers count and confirm your votes, we open the meeting to any further questions from shareholders and authorized proxies. For those present in the room, only those who received a yellow card when they registered -- when they arrived are authorized to speak. If you wish to ask a question, please come to the microphone or if participating virtually, select the messaging icon on your screen. [Operator Instructions]

My name is Ryan. I'm a beneficial shareholder. I hold shares through TD. But I just had a question. Obviously, Canadian housing prices are really high. The market is really bad. If there was a drastic reduction in housing prices and a large increase in mortgage failures, I know you -- I've read the circular and everything. But I just wanted to reassure myself how much would that affect the bank? And what would happen in that case of a large-scale housing meltdown?

No one better to answer that question than our CEO.

It's a great question, Ryan. Thank you for that. We have a solid and diversified portfolio of business. As it relates to residential mortgages, this book of business is also well diversified through the country. But most importantly, to know is that Laurentian Bank has the most insured residential portfolio out of all the big banks in Canada. So 60% of our residential mortgage portfolio is insured. And the balance that is uninsured is at about a loan-to-value of 49%. So you can see that we do have room to face macroeconomic situations that could put pressure on housing prices. And also, we're very confident in our underwriting and risk team approach towards how we originate those housing mortgages in the country. So we feel well positioned.

Next question.

[Interpreted] Yes, hello. [indiscernible]. According to some analysts, the book value of the Laurentian Bank is around 49%, 50% of its book value. It's trading at that. Do you think it's possible for you to decrease the spread? So most banks in Canada here trade, big banks I'm talking about, at 120%, 125% of their book value and sometimes higher. You are at 50% of your book value. Do you think there's a difference or a possibility of decreasing that spread? And if so, what are the methods and the ways that you could go about? What would you do to decrease that spread?

[Interpreted] Okay. The question is a good one. The short answer is yes. That's a big work that we are currently doing at the bank. But I'm going to turn the floor over to Eric or Yvan and they can take the question.

[Interpreted] Yes, Mr. [indiscernible], thank you for your question. And it's a very pertinent question. Indeed, the book value of the bank is a little bit above [ $57 ]. And so that means that we are under the 50% in terms of share value currently. The strat plan that we launched last year aims to address that situation and ensure that our institution be more profitable for our shareholders and reduce that spread with regards to our book value, so create value for shareholders. What do we expect to do? Well, we've already begun. Over the past year, we worked hard to simplify the organization because we were an organization that tried to copy the big bank model. And at our size, we really quickly realized that, that is not how we were going to be able to create value for our shareholders and crystallize that value versus our book value. [Interpreted] And so as you know, we have moved away from some activities. We sold our savings brokerage and other brokerages because we were putting money into resources without pulling out any confirmed advantage for our shareholders. And we have worked on specialized niches, including commercial funding, where we know that we can create additional returns for our shareholders. So it's the beginning of a strat plan launched a year ago. We still have a lot of work to do. But by creating the necessary efficiencies and by putting money into the right resources, we believe fully that we can prove to the market that we will increase the profitability. And after that, that profitability will be reflected in the price.

[Interpreted] Okay. I have a second question, if I may. What are the sectors of activity? I mean we talked about real estate, but the bank's capital remains in how many commercial sectors. And without dominating the sector, where do you think that you will remain comfortable? So basically, what's the percentage of your asset allocated by sector of activity? And is there a sector of activity that is bigger, more important than others for you that is more considerable than others? I'm just wondering about risk distribution. And if there's a sector that is a little bit more important than others. So a number of sectors where you work.

[Interpreted] Well, again, I would refer you back to the strat plan. So our last year's Investors Day. But to answer your question, in terms of assets, and I'm rounding it up or down here, it's approximately at 48% proportion towards loans in the commercial sector and 52% is in individual loans, mainly residential mortgages. That is what makes up most of our loans to individuals. And in terms of commercial funding, we have 2 niches. One of them is commercial real estate across Canada and the other one is in equipment and inventory funding across North America. The strat plan aims to bring us up to the 55% mark, maybe a little bit even higher in terms of commercial loans. So we are aiming to change the mix of the bank so that we specialize a little bit more in commercial because that is where we can create value. We are specialized. We can compete, and we're not competitive on price, but rather on the services that we offer. So it's a specialization effort in our strat plan. That's the work that will happen over the next few years.

[Interpreted] Okay. I've got a third question with your permission, please. In your undertaking, as you seek to find new clients, what's your strength? Or if you have a weakness compared to the competition, what would that be? In other words, why would somebody go to the Laurentian Bank as opposed to going to TD or National or RBC? Do you have a network of people who bring new customers? Or do you have specific penetration in the sector, which means that you are better off than other banks?

Okay, another excellent question, Mr. [indiscernible]. I would say that it's our teams, our people make that difference because indeed, the fact that we are specialized in very specific niches means that those undertaking transactions, so our internal teams, right, they're the ones providing that value. They understand client needs and not just at the beginning, but within our groups as well. So in terms of transaction underwriting, transaction approval, portfolio management in our specific niches. So essentially, our people have the expertise necessary so that we can stand out compared to the competition. And we've shown that over the past few years quite considerably, where we were very successful in standing out in niche markets, and we will continue this one.

[Interpreted] Okay. A fifth question, once again, sorry about that. So real estate, if I understand correctly, if it's not insured, then the mortgage value is approximately 49% to 50% of the market value of a building. What I'm concerned about is the commercial side of things and what's going on right now. Are you seeing any concerns relative to your portfolio with regards to what's happening in commercial real estate right now. I'm not talking about leasing. I'm talking about other types of commerce that could eventually be subject to negative commercial impact.

[Interpreted] Yes, it's a good question. So our real estate currently is mainly made up of projects that focus on housing. And so we are focused on building properties, multi-residential properties, some condos, that sort of thing. And so the portfolio is such that there is always a demand for those products.

[Interpreted] I'm sorry, real estate, I understand. I'm asking about commercial. That's the sector that I would like you to speak about, I mean, without talking about residential. I'm reassured in residential given the ratios that you shared. I'm talking about commercial.

Well, the commercial that we finance are building projects. So our specialization in commercial building, what we do is we're funding developers who are building residential buildings, multi-residential condo buildings and such. And so when we talk about commercial, yes, they are commercial activities, but they are in housing for the most part. The properties that we are funding commercially have a loan-to-value -- sorry, I'm stuck on loan-to-value here in French. It's a loan-to-value ratio that is at 53% for what we have on our books. But commercial funding, financing, we only have 3% of commercial buildings in all of our portfolios at the bank in the commercial portfolio. And that 3% is mainly distributed around properties that are in the suburbs either with a drugstore or a clinic as sort of the hub, the main lessee. And so we're comfortable with that portfolio as well.

[Interpreted] Okay. Another question.

Mr. [indiscernible], this is the last one because we want to know if there are other questions. And at the same time, we need to continue the meeting.

[Interpreted] Okay. Yes. No, because I'm talking about accessibility here, the depositors' accessibility. You closed a lot of branches here and there. As time goes on, do you expect to open branches? In other words, how are you going to manage accessibility to the bank? Are there ways of doing that sort of in a less costly manner?

[Interpreted] Well, look, we have [indiscernible]. We have 57 branches across Quebec, and we're comfortable with our network. And I think that it serves our customer base very well currently.

[Interpreted] Yes. I had a question in line with performance, again, around environmental issues and transition risk. We know that with deregulation, financial institutions will be more and more confronted with insurance risk and sectors like real estate could be majorly challenged. When I look at the governance structure around risk, so the Board and different committees, I see that the emphasis is put more on compliance and risk management. And I'm curious, why is there not a specific ESG committee? Why would you not sort of within decision-making, place specialists and analysts who are familiar with transition risk and people who are familiar with extreme events.

[Interpreted] Well, I need to assure you that we are taking this very, very seriously, but we can't start to have -- we currently have 4 committees at the bank that are very important committees and all of the ESG issues that you've just mentioned, that's under the Risk Committee. And so we spend a lot of time on those issues during our meetings. I ask you to be rest assured.

[Interpreted] Thank you very much. Any other questions to ask? Any other questions? Not seeing any from floor. I'm not seeing any questions on the monitor. So I imagine there aren't any. No other questions. All right, we will move on with the meeting. The votes have been counted and the preliminary report of the scrutineers have been delivered to the bank. [Interpreted] The resolution concerning the appointment and remuneration of the auditor, the nonbinding advisory resolution concerning the approval of the bank's approach to executive compensation and the resolution concerning the approval of the amendments to Bylaw 12. All these things have been duly adopted. The motions for the appointment of the auditor and auditor's remuneration, the approval of the nonbinding advisory resolution concerning the bank's approach to executive officers' compensation and the approval for the amendments to Bylaw 12 have been duly adopted. [Interpreted] The following people have been elected as directors of the bank. Sonia Baxendale, Andrea Bolger, Johanne Brunet, Laurent Desmangles, Suzanne Gouin, Jamey Hubbs, David Mowat, Robert Ouellette, Paul Stinis, Nicholas Zelenczuk, Eric Provost and myself, Michael Boychuk. Shareholder proposals were adopted because they received the majority of the votes cast at this meeting. The shareholders' proposals, as mentioned, received were adopted as they did receive the majority votes cast at the meeting. Termination of the meeting, folks. [Interpreted] Ladies and gentlemen, thank you for attending this meeting here today. And this concludes the official agenda for the meeting. May I ask for a motion to terminate this meeting?

[Interpreted] My name is [indiscernible]. I'm a shareholder, and I move to close the meeting.

[Interpreted] Thank you, Mr. [indiscernible]. Does anyone have a -- can somebody second this motion.

[Interpreted] My name is Junessa Clark. I'm a shareholder, and I second this motion.

Thank you for your attendance today. [Interpreted] It is the end of the meeting. Thank you very much for your attendance, and we will see you next year. Have a great day. [Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]