Klépierre SA (LI) Earnings Call Transcript & Summary

Hello, and welcome to the Klépierre 2025 Half Year Results Presentation. I will now hand you over to your host, Jean-Marc Jestin, to begin today's conference. Please go ahead, sir.

Good evening, everyone, and welcome to the presentation of Klépierre 2025 first half earnings. Together with Stephane Tortajada, CFO, we appreciate you joining us today. So let me start saying that I'm pleased to report a strong set of results. The performance this year was driven by a very intense leasing demand for our leading malls and a solid acceleration of the business in the second quarter. Once again, we delivered outperformance on the net current cash flow that increased by 5.3% year-on-year to EUR 1.32 per share. Similarly, NTA per share ticked up 4.6%. Year-to-date, we already delivered to our shareholders a total accounting return in excess of 10%. Our key demand drivers are steady, and we continue to see several green shoots in private consumption in the countries we operate. Indeed, the strong labor market is contributing to real wage growth, which in turn is supporting resilient consumer spending in Continental Europe. On top of this, in the context of global macroeconomic uncertainties, our discussions with retailers reveal a clear trend. They are seeking stability and visibility, leading them to favor Continental Europe in their expansion strategies, which is an encouraging development for our business. In an omnichannel world, we offer retailers profitability in our prime venues and support them in raising brand awareness, optimizing logistics and gaining additional customer in the most effective way. With online pure players operating under tight margins, stores with a combination of click & collect and drive-to-store initiatives emerge as the most efficient strategies, and Klépierre malls are at the heart of the retailers' expansion plans. Our [indiscernible] clients, shoppers, also widely favor our venues. Indeed, physical retail is a reference for Europeans. And according to the last OpinionWay study, shopping centers are by far the most popular destination for 40% of the respondents. This is particularly true among young generations. Easy-to-access malls are the preferred places compared to other types of retail, as they offer a wide range of goods and services and exhaustive dining selection, entertainment and leisure concepts. Against this highly favorable backdrop, our malls are continuously capturing market shares with retailer sales up 3.5% over the first half of 2025, twice higher than national indices and footfall up 2.5%. What is even more positive is that the trend has been strongly accelerating in the second quarter of 2025, with retailer sales up 4.5% and footfall up 4%. With higher sales productivity and growing traffic, our venues are attracting leading retailers now focusing on fewer but larger and better stores in the context of scarcity of performing and profitable formats. Our malls are also the preferred launchpads for trendy retail concept. Among others, Zara, Lefties, Mango, Primark or New Yorker are continuously increasing their footprint, while occupiers demand is also firm in the health and beauty, dining and sports verticals. As such, with rising in-store sales, Sephora, Aroma-Zone, JD Sports or restaurant chains are embracing our distinctive value proposition, which supports their profitability and growth. Similarly, entertainment, leisure and experiential concepts are playing a greater role to enhance dwell time in our malls. Let's mention our last major success story with the opening in April of Imagi Park at Val d'Europe, the leading mall in the Eastern Paris region, welcoming more than 20 million visitors a year. Spanning more than 13,000 square meters, Imagi Park is Europe's largest indoor amusement park, offering a wide range of attractions from electric karting and bowling to gaming, restaurants and fitness and complementing the unique SEA LIFE Aquarium already located within the mall. And these trends are perfectly illustrated by our leasing activity with 60% of the deals signed in the first half of 2025 made with those category killers and innovative brands. High leasing demand fueled 4.1% rental uplift on renewals and relettings, while occupancy further stepped up by 80 basis points over 1 year at 97%. Meanwhile, gains of market shares in recent years translated into sequentially improving occupancy cost ratio now staying at 12.5%, 10 basis points below December 2024 level. This very affordable level paves the way for further rental uplift. Naturally, structural tailwinds, supportive macro backdrop and strong operating performance continue to feed the expansionary valuation cycle. Over the first 6 months, total portfolio value increased by 2.6% on a like-for-like basis, while EPRA NTA was up 4.6% to EUR 34.30 per share. Meanwhile, EPRA net initial yield was down 20 basis points to 5.7%. Factoring in this positive momentum and surging investment volumes in retail, appraisers have started to lower risk premium applied to our portfolio for the first time in more than 5 years. Nevertheless, note that they remain ahead of any other asset classes, suggesting potential for further compression going forward. Not only we enjoy a high visibility on our rental growth with 90% of our long-term leases based on index minimum guaranteed rents, but we relentlessly unlock other sources of revenue through the monetization of our 700 million annual visits. As such, mall income combining digital and print advertising, on-site events offering, specialty leasing and mobility activation is a powerful growth lever for Klépierre. This fast-growing activity increased by 48% over the last 3 years and was up 9% in H1 2025. As we speak, we already generate EUR 100 million annual mall income revenues that directly contribute to our EBITDA, and our ambition is to continue to outperform in this field. The other engine for growth is our disciplined capital allocation strategy that creates long-term value to shareholders with investment in high-return acquisitions and extension of top-performing malls to drive long-term growth as well as continuing to prune the portfolio through targeted disposals. As such, we closed or signed disposals across Europe for a total amount of EUR 155 million in the first half of 2025, 12% above appraised values for a blended net initial yield of 5.5%. In 2024, we also invested in 2 very accretive acquisitions, O'Parinor and RomaEst, 2 leading malls in capital cities. They are the perfect illustration of our investment strategy. In line with our solid track record and thanks to significant occupancy gains and higher collection rates, we have been delivering above expectation performances in both assets. In H1 2025, year-on-year, net rental income was up 25% at RomaEst and 20% at O'Parinor, only 1 year after acquisition. Same high standards apply to mall extension, always delivered on time, always delivered on budget. Staying true to our principle, we commit only limited amounts, maintain a controlled level of risk and target a threshold of at least 8% yield on cost, guaranteeing high returns. Again, our track record speaks for itself with recent successful completion across Italy, France and Spain, including Gran Reno in Bologna, Grand ‘Place in Grenoble and Maremagnum in Barcelona. That's why I'm also delighted to confirm that we delivered the first phase of the extension of Odysseum, the large mall in Montpellier, welcoming more than 12 million annual visitors. In H2 2025, it will host a flagship Primark megastore as well as a dozen of new banners to offer an even more complete experience to shoppers. Yield on cost of this project is 9% for a total investment of EUR 56 million. The other highlight of the period is the announcement of a new extension project at Le Gru, the iconic shopping center in Turin, welcoming more than 11 million visitors a year. By 2027, a full set of new anchors will be added on more than 7,500 square meters of retail space. This EUR 81 million investment is expected to deliver a 10% yield on cost. Thanks to our solid rental growth and accretive capital allocation strategy, EBITDA expansion has accelerated in Q2, generating a 6% increase in H1 2025, driven by a 5.3% jump in net rental income and a 40 basis points improvement in the EBITDA margin, reaching 86.1%. And once again, this marks a clear acceleration in the second quarter. Meanwhile, Klépierre capitalized on its A ratings at both S&P and Fitch, ranking group at the highest standards with the European-listed real estate space to raise EUR 505 million at a highly competitive blended yield of 2.85%. Consequently, the cost of debt remained low at 1.8%. Long term, we are convinced that our rock-solid financial structure is a key competitive edge with net debt-to-EBITDA now standing materially below 7x and offering full flexibility to navigate through all cycles and seize opportunities to grow. Klépierre has consistently delivered bottom line growth with net current cash flow up 9% over the last 2 years and 5.3% in H1 2025. And I think this is quite a distinctive performance. In this context, we are confident in accelerating like-for-like net rental income growth with sequential improvement in H2. Additionally, we are revising our guidance upwards and now expect to generate 5% EBITDA increase instead of 3% and net current cash flow between EUR 2.65 and EUR 2.70 per share in 2025. To conclude, I'm sure that Klépierre's focus on operational excellence will continue to deliver. We offer an unparalleled value proposition for retailers in an omnichannel world, relying on high revenues predictability and multiple growth levers. In parallel, our unrivaled credit profile enable us to pursue a highly value-creating capital allocation strategy, perfectly suit to combine -- to continue to serve our shareholders. I will end my remarks on this note and open the floor to questions. Thank you very much for your attention.

[Operator Instructions]

Okay. Maybe we will start by a question on the webcast. First question from a French asset manager. How do you assess the consequences of U.S. tariffs applied to the goods from European Union on your business? Maybe I will say first that the vast majority of the goods sold by Klépierre tenants are not directly affected by trade tariff and U.S. trade tariff. And we discuss extensively with our clients, the tenants, and we assume that the direct impact should be extremely limited. And maybe second, I would say that the impact on GDP is very different from one country to the other. What we understand from economists is that Germany should be the most affected. And as you know, the German market is a quite negligible stake of our EBITDA. On the other hand, France, Spain, Italy, which are our 3 top markets will be quite less affected and the impact on GDP should be quite negligible. So even on an indirect manner, we don't see really an impact on the consumption of this U.S. tariff. Question on the phone, yes, please?

The first question comes from the line of Pierre Clouard calling from Jefferies.

Yes. Several questions for you. So the first one, we know that you are being more and more vocal on acquisition, and would be helpful if you can describe what is your acquisition strategy today or if at least we can have an update. Do you see a lot of opportunities currently in the market? And if yes, in which countries?

Thank you, Pierre. Jean-Marc speaking. So as we just clearly stated for quite a while, we think we have the balance sheet to seize opportunities, and we have already done. So we are currently monitoring different -- like always, different situation. But there is no information to provide you with today, and we'll continue to monitor. The different target will have to fit the strategy. So large malls in, I would say, countries where we have already a very strong platform and where we can deliver growth. So as you have seen, O'Parinor and RomaEst, it's not only just buying at an attractive yield is to be able to deliver growth. So that's what we try to achieve. So -- and we have seen quite interesting transactions a bit all over Europe, but none of them were really fitting the strategy for the time being at Klépierre.

Okay. I see. My second question is on -- you are also being more vocal on the further rental uplift due to your low occupancy cost ratio. Can you estimate the achievable OCR today? And in how many years are you able to reach this level? Or let's put it in a different way, what is your estimated reversionary potential today?

We don't really give that number as a whole. I think what has been interesting over the last 2.5 years is that 2023 and 2024, we have seen retailer sales in our malls going up by 10% over the 2 years. And the first half of 2025 is very encouraging. So what we are just stating is that the OCR is going down, which I think was the most interesting post-COVID discovery that retailer sales were going faster than our rents. And that give us confidence that we will continue to deliver growth. So when we look at where OCR could be, we see quite a significant embedded reversionary that could be taken over the period of the lease. On average, leases are 6 years, 5 to 6 years. So that gives you a sense that this is quite significant and also on a quite short period of time.

And Pierre-Emmanuel, you could note also that the rental uplift in H1 was 4%. So it's also a good sign of what we can achieve.

On top of indexation.

On top of indexation.

Okay. That's clear. And my last question is on -- coming back on your Slide 17, where you are mentioning new growth levers, of which one is retail media. So do you have a ballpark figure in mind on how much incremental new revenues that could be generated with these new growth levers? And if you can give us a rough breakdown would be useful.

As you know, we -- and sorry for that, we don't itemize the business. So what we are just indicating here is just to show how dynamic is the monetization of our footfall. So we have 700 million footfall. So I think the -- just to step back a bit, I think the last 2.5 years, what we have really seen and which is really encouraging for our business is that we have seen a high demand, a very strong leasing tension. And clearly, the polarization is driving occupancy, is driving reversion and to a certain extent, make us feel that our reversionary potential is probably going to increase over time due to this polarization. The second aspect of the business is that we have never been very vocal on the monetization of footfall because this is part of our business. Yes, we have clearly quite a significant amount that goes directly to EBITDA, so no leakage between the number we give and what you can read in our EBITDA. So it's EUR 100 million. And it's mainly, as we said, it's different sources of revenue. It comes from retail media activation. It can be events organization. It can be specialty leasing, ancillary income. It can be parking revenues. It can be other mobility revenue sources. So it's a lot of things. I think the -- if we look at what is the potential for that, we see quite a very significant potential. And if I had to say where we could probably go even further, it's on the retail media. I think that's probably where we have been a bit not slow, but we have quite a lot to do. So I'm very enthusiastic also to increase that component into the EUR 100 million.

The next question comes from the line of Eleanor Frew from Barclays.

Could you give us a little bit more color on the step-up in retailer sales and footfall over Q2? Was there any particular driver there like low comps, a bit of seasonality? Or was it just a general improvement in the consumer environment?

No, I think the -- I don't know if I have the Q2 per country. So before we -- I get that, I think the -- when we look at the retailer sales, and I invite you to go to the appendix to the presentation, but let me go through that. I think the first takeaway is that the retailer sales by region, they have been positive everywhere. So Iberia, the territory that we call Northwest and Central Europe, which is the Netherlands, Germany, Poland, Czech Republic and Turkey; but also France, Italy and Scandinavia, which is Norway, Denmark and Sweden. So clearly, on that document, you can see there is quite a big push from 2 territories. So Iberia with a 9% retailer sales increase. We see the territory, which is Netherlands, Germany and Central Europe, 7.7%. That's quite remarkable. It's a bit also quite driven by the Netherlands, where we still have a fantastic outperformance of our largest asset in the Netherlands, Hoog Catharijne. And then France has been also -- in the continuation of 2024 has been also growing. The second takeaway of the presentation is that when we look at segment, all the segments are positive, are delivering growth. I think the -- it was not on top of the list in the last 12 months, but the segment where we include groceries, entertainment and fitness is doing 7.5%, which I think is quite remarkable, mainly driven by groceries and the retenanting to brands like Mercadona, Lidl and Grand Frais, for example. We have the health and beauty sector, which in the continuation of the last 36 months is doing plus 6.4%. Restaurants, so very interesting also for the dwell time and the traffic, it's going up by 5.9% and fashion, which has been up and down over the semester is doing almost plus 2%. So positive in all territories, positive in all the segments. And I think the rule that it has been accelerating in the countries and in per segment applies to both -- to all countries and all segments.

Yes. Maybe to give you a bit more detail over Q2, we had a very strong performance in terms of retailer sales in Iberia, plus 13.6%. Very strong also in the Northwest and mainly in the Netherlands, plus 9%. And then France, Scandi were between 2.5% and 3% and Italy above 1%. So basically, it's true that the performance over Q2 in total in retailer sale was plus 4.5% with some very strong number in Iberia and the Netherlands.

Very clear. Then looking at your portfolio valuation, I see it was up 4.2% like-for-like in Northwest and Central Europe. Maybe could you break that down by the country, so how Netherlands and Germany faring in that?

No. So we don't disclose it by country, Do you -- do we?

No.

So we don't. Sorry for that. And -- but to give you maybe -- if you have inside this, okay, to see what is going up and what is flat or slightly going down, I will tell you the Netherlands is going up. Hoog Catharijne is, as I said, doing extremely well. So it's going up in the Netherlands. It's still going up in Central Europe, okay? And it's a bit more flattish in Germany, I would say, or even slightly negative.

Final one for me. So thinking about capital allocation moving forward, do you see more opportunities in developments and extensions? Or are you still looking towards those larger standing assets you just alluded to?

It's -- I think we do it step by step. So the -- I think the total shareholders' return, that's what drives us, okay? So I would say that we see probably more potential on acquisition than on development. Development pipeline takes time. We are historically very risk averse on development. We want only to commit on our best properties and to have -- to make sure that we can deliver high returns and that we are not overbuilding. So I will say that it will be a combination of both. But I will say sometimes it's easier and goes quicker to do acquisition than doing development.

Yes. And maybe to give you a bit more granularity. Basically, as you know, for us, development is only mall extension and not greenfield, obviously. But if you look at what is ongoing like in Montpellier and what has been just launched because we have discussed Torino in the presentation, the rest of the pipeline is in excess of EUR 500 million of mall extension that will be delivered over the coming 4 to 6 years, I would say. So it gives you an idea of what is in front of us in terms of pipeline of fully controlled land.

The next question comes from the line of Jonathan Kownator calling from Goldman Sachs.

I hope you can hear me. Just going back on the operational performance, how should we think about like-for-like rent growth going forward? You obviously highlight a very strong trading environment, a 4% reversion. Is that likely to grow or not? And particularly, obviously, indexation, is that going to be flat or potentially coming down a bit from current level? So how should we think about like-for-like rent growth from here, please?

Yes, Jonathan, I will say that over H2, as we have said in the presentation, we expect the like-for-like NRI growth to accelerate. So we expect the full year like-for-like NRI growth will be higher than in H1. This is the first point. Second point, you're right to mention that indexation in 2026 should not increase compared to what we have seen in '25. It's still a bit early to give you some numbers for indexation next year because, as you know, in some countries like Italy, it's not set. So it's a bit too early. But we think the trend will not be up for sure. And as you know, also, because we have just discussed this, we have the mall income business, which does not wait on the shoulders of our long-term tenant, which is growing like 9% a year around. So obviously, it will give a boost to the like-for-like growth over the coming years also.

Okay. Very clear. Perhaps one more question on acquisitions. Obviously, you're seeing obviously the template that you're highlighting, i.e., opportunity to better manage assets, increase rental income. Do you see many of those assets still potentially on the market? Or is that becoming more competitive as we see more transactions? Is it holding the transactions at this stage? Is it [indiscernible] on pricing or just the ability to identify some of these assets, which are harder to combine?

Thank you, Jonathan. I think number one, the number of assets that could be eligible to, I would say, our strategy is rather limited in Europe. So by definition, it's -- there is quite a scarcity of those type of assets. So -- and we have to be very careful in what we buy. So I think there are more opportunities to come, even though it's a bit speculative, what I'm saying. So we feel comfortable that we can be an option for, I would say, owners either to a joint venture as we did on O'Parinor. I think we have a very strong track record of delivering growth. So that's what we try to put in place. So that's not an easy business to acquire. And we are not also in a rush to do acquisition that will not fit the strategy. So we will see when it comes, and we will let you know when it happens.

Of course. Any geographies where you think the likelihood that this could happen is bigger or where you're more interested, maybe Southern Europe or Central Europe or Nordics perhaps as well? Where do you see perhaps the best opportunities at this stage?

Well, if -- I can tell you where I think we will not. So I think Germany, okay, that's not a country where we are strong. Central Europe is not really a territory where we have a strong footprint. So we need to build our acquisition strategy, our development pipeline strategy on where we are strong so it's easy to read. So we are strong in France. We are strong in Iberia. We are very strong in Italy. So -- and in Scandinavia, to the extent we can focus on capital cities, which limits a bit the options, we may have plenty of opportunity. We are less interested by opening new countries, which -- because we think it can be a bit more of a headache for tax, legal structure and so on. So let's say that we want to capitalize on the 4 markets, so Iberia, France, Italy and a bit of Scandinavia.

Next question comes from the line of Frederic Renard from Kepler Cheuvreux.

Just two questions on my side. Can you explain a bit what is driving the yield shift from appraiser in your portfolio? And coming to that, just wondering how appraiser in France have been taking into account the increase of 50 bps in notarial fee.

Yes. I think we were in a situation where appraiser were applying very high discount rate when looking at the valuation. And this discount rate compared to the current 10-year money were like more than 500 basis point risk premium. So basically, the performance of the business, the operating performance of the business in the last 3 years has been very strong, first. And second, we have seen also more investment in the retail space for very core properties. So basically, these 2 effects helped the appraiser to understand that maybe the risk premium was a bit too high, and it was time for the base small in our portfolio to come down a bit. But if you look at the discount rate today compared to the 10-year money, it's still 500 basis points. It's not above 500, but it's still 500 basis points risk premium, which is still very elevated, especially when you compare to other real estate asset classes. So I think it's the start of a trend, and we will see in the coming campaign where the appraiser want to land in terms of discount rate. But I think it's the first signal. And for France, to be honest, I think they did not look so specifically on the OAT change. They really look at the 10-year money, the risk premium. The risk premium, as you know, embeds both the politics, et cetera. So it's -- I think it's not so.

I think the question was on the transfer tax increase. So this has been taken...

Sorry.

This has been taken into account into the valuation, obviously.

Yes, it's mechanical. I could show you.

And maybe a second one for me on the disposal. Just curious to hear where the disposal happened. So where was it in terms of geography? And in terms of yield, I see a 5.5% blended net initially, which is very strong. But can you comment on the occupancy rate of those assets?

Sure, we can do that. So it's also maybe to rebound on Jonathan question where we are not going to invest. So we have sold in Greece. We had 3 assets in Greece, so sold. We have sold 3 small secondary assets in Poland in Rybnik, [ Huta ] and Sosnowiec to be specific, land in Denmark, some assets in France. Most of them are very small assets. When you add all them up, then you have a non-negligible amount. The net initial yield, it's above appraisal value. So it's a combination of some assets that were yielding quite high, okay, and some which were like -- and some nonproducing assets like land. So all in, this is above appraisal value and the blended yield is 5.5%.

The next question comes from the line of Florent Laroche-Joubert calling from ODDO BHF.

I would have three questions, if I may. So my first question would be, so could you please give maybe more color on how you have been able to increase revenues at O'Parinor and RomaEst since it's quite significant.

Okay. So to your -- we -- I think as I said, we -- when we bought them, it was at a time where the previous owner were just a bit not really managing it properly, I would say, or intensively. So it's a combination of two main elements, so occupancy. Both of the properties at the time we bought, around 9% vacancy. It went up to almost 4%. So -- and then rent collection was also a bit shy of 91%. So it's now 99%. So when you add up all the numbers, that makes 20% and 25% plus reversionary potential that were embedded into short-term expiring leases. So good accretion.

Okay. And should we expect more increase in this coming period or now you are already at a high level?

It will probably not be as much as we have seen, but that -- but we will -- but those assets have very good fundamentals. As we said, they are 100,000 square meters. They all have the backbone of international retailers. They have retailer sales, which are above national averages. They are, I would say, Tier 1 assets, whatever we think. They have low OCRs, and there is a lot of asset management initiatives that can be put in place. So I'm positive on delivering further growth, but probably not as much as we have done in year 1.

Okay. And so my second question, so we have seen that you have been able to make some significant volume of disposal in H1. So for H2, have you seen any ongoing discussion for further disposals? So shall we take into account some more disposal in H2?

Yes. On disposals, so we are committed to prune the portfolio. We started with 330 properties 12 years ago. We have a bit more than 70, [ now driven ] 95% or 95% or 96% of the portfolio. So we still have a bunch of small assets that are -- we need to reallocate that capital into our extensions and acquisitions or give it back to the shareholders. So I think this will continue. It takes a bit of time. But as you can see over the last 5 years, we did that quite progressively, always above book value and at a decent yield. So this is going to continue.

And so maybe my third question would be on your investment or acquisition activity. So we understand that you are not -- you have no project to discuss today. But what we can see is that now your share is trading close to NTA. So if needed, would the capital increase could be an opportunity to finance any significant acquisition if you are looking at significant acquisition?

There is so many if in your question that it's difficult for me to answer. I think the Board will reflect on that if it has to happen. I think the concern for the management of the company is the shareholders' return and the accretion to the cash flow of everything we do. So depending on the circumstances, depending on everything, okay? I think the Management Board of the company will take the right decision. So I cannot comment on something which is not on the table or even not an option today.

Now we are going back to the phone. So the next question comes from the line of Sam King calling from BNP Paribas.

Sorry, just one more on acquisitions, please, and the hurdle rates that you look for on returns. And correct me if I'm wrong, but previously, you've spoken about looking for a yield of at least 7%. And I appreciate there's a number of other factors that you look for. It varies on a case-by-case basis. But if we take a step back, clearly, there's more competition in the market this year. But at the same time, your cost of capital has also declined. Share price has been strong. You've had the credit rating upgrade. So the question is, how do you think about acquisitions in the context of having a lower cost of capital? And does that change the absolute hurdle rates that you look for and essentially mean you can be more aggressive on price?

Thank you very much for the question. I think there is a lot of question about acquisition and for something that we have no news on that. And once more, we will do what we think is right, okay, and never in a rush. So -- but to your technical question, I think the answer is in the question. I think the target of return depends on our share price and the cash flow yield of the company. So I cannot really comment on that. I think what we have seen on the market, there is a bit more of transaction. There is a bit more of yield compression compared to, I would say, 18 months ago. So I think it's also supportive to the valuation of the retail assets we own, but I cannot really comment. It's a combination of many things when we do an acquisition.

And maybe, Sam, also, you will note that we have detailed in the presentation the fact that we have been able to increase the NRI meaningfully on both O'Parinor and RomaEst. And when we look at stabilized yield, of course, we look not only the initial yield at acquisition, but the initial yield plus the reversion we're able to extract. So -- and this is what is meaningful for us in terms of accretion. So you should look at the stabilized after reversion yield and not only the initial figure looking at an acquisition, I think.

There are no further questions, so I will hand you back to your host to conclude today's conference.

There is one question on the screen which why not consolidating the space with your commercial? Makes a lot of sense for you. I have no answer to that. So thank you very much for participating to the call and to your questions. And we are looking forward to meeting you tomorrow in London, for those who are in London and soon for the others. And for those who are leaving for holidays, I wish you the best summer break ever. Thank you very much.

Thank you.