MotorCycle Holdings Limited (MTO) Earnings Call Transcript & Summary

Good day, and thank you for standing by. Welcome to MotorCycle Holdings Half Year 2025 Results Briefing. [Operator Instructions] Please be advised that today's conference is being recorded. It is now my pleasure to hand you over to the Chief Executive Officer, Mr. Matthew Wiesner. Please go ahead, sir.

Thank you, and good morning, everybody. I'm Matthew Wiesner, and delighted to be addressing you in my first investor presentation as CEO of MotorCycle Holdings. Thank you all for joining us today. And it's a pleasure to be here with MotorCycle Holdings CFO, Nicole Spink; and our COO, Michael Poynton, as we join to share the results of what have been a very positive first half of the financial year 2025. I'm extremely pleased to report the group has seen revenue and profit growth through this period. This speaks to our successful diversification strategy, the incremental performance improvements we have made across the network and improved operational efficiencies that were put in place last year [Technical Difficulty] real results. This also reflects the group's strategic focus, disciplined execution and the hard work of our entire team. In a market where we had seen some softening demand as a result of interest rates, cost of living and so forth, we remain focused on improving productivity, enhancing the customer experiences, and this has certainly driven the positive outcomes that we're talking to today. The group has strengthened its market position and is well positioned for sustained success in the second half of this year -- of this financial year. And recent interest rate cuts, of course, should help bolster this moving forward. With a new leadership team in place, MotorCycle Holdings is ready to capitalize on emerging opportunities. Michael, Nicole and I and the rest of the team are certainly going to bring some energy and focus. It's a pretty clear vision for the future. Central to our priorities is certainly building a robust structure to sustain growth, not only for obviously, the second half of this financial year, but certainly as we go well beyond 2025. Before we dive into the details, I'll hand over to our CFO, Nicole Spink, to walk you through our financial highlights. Nicole?

Thanks, Matthew, and good morning, everybody. I'm pleased to be speaking to you this morning about our positive results for the first half of 2025. We'll speak to the details as we walk through the deck, but I do want to stress that our results do demonstrate our ability to drive profitability, while at the same time, we maintain discipline in our cost management. In addition to our revenue growth, we strengthened and deleveraged our balance sheet. We will be providing an interim dividend of $0.08 per share, which is a good increase on our first half 2024 payment of $0.03 per share, and both those amounts are obviously fully franked. Looking ahead, we do have confidence in our ability to deliver continued financial strength in the second half. This is going to be underpinned by some improvements in our operational efficiencies, which Matthew will speak to later on. And so now I will hand over to our Chief Operating Officer, Michael Poynton, to briefly outline our operational highlights. So Mike, over to you.

Thank you, Nicole and Matthew, and good morning, everyone. From an operational perspective, the first half of the year has been a period of strengthening growth. The group has continued to optimize our processes and enhance productivity to ensure we can meet growing demand efficiently. One of our key priorities has been driving online sales and increasing sales in electric vehicles, and we have seen this successfully pay off. Last year, we made improvements to the Cassons business operating systems and gained more efficiencies as a result. It is important finally, to mention the vital relationships we have with our key partners who are a critical part to the group's success. As we look ahead, we are focused on sustaining our momentum, driving operational excellence and ensuring the group remains agile in responding to market opportunities.

Great. Thanks, Michael. Now just I'll run you through the agenda of today's presentation. So firstly, we'll run through a summary of highlights. Secondly, operational performance, then financial results and then a piece on the outlook moving forward. So -- and then, of course, at the end of the presentation, there will be an opportunity for questions. So summary of highlights. So a strong half year results highlight growth and a positive sentiment that we are certainly feeling for MTO. Sales revenue increased 12% to $328 million, up from $293.4 million in the first half of '24. This was driven by increases in both new and used retail vehicle sales of 11% and a growth of 17% across our wholesale distribution business. Operating profit increased 10% to $82.8 million, up from $75.2 million in first half '24. We've seen a reduction in inventory of 5% or $7.8 million since 30 June 2024. Our underlying EBITDA increased 20% to $26.2 million, up from $21.8 million in first half '24. Net profit after tax increased 43% to $9.4 million, up from $6.6 million in first half '24. And our return on sales increased 19% from -- up from 4.2% to 5%. Our net bank debt reduced by 36% to $24.2 million, down from $37.9 million at 30 June 2024. And we're pleased to be providing an interim dividend, as Nicole said, of $0.08 per share fully franked. These results have been driven by business improvements, of course, the complete integration of Mojo's New Zealand operations into Forbes and Davies and improvements to our Cassons business systems. We have seen continued MTO outperformance in the new vehicle market share compared to the overall market. And we've continued to focus on capital management with debt reduction and improved return on equity. And of course, our focus on improved operational efficiencies have resulted in a better return on sales. So operational highlights. As outlined in the previous slide, the group has enjoyed revenue growth of 12% and a record first half new sales result. MTO outperformed the retail new vehicle market and increased used vehicle sales by 10%. Our other key operational highlights for the period include the following: an introduction of new CFMOTO motorcycle models has certainly outperformed expectations. There's been a successful market introduction of a new EV motorcycle brand by Mojo also. Our revenue growth. So revenue has shown continuous long-term growth. It was up across all departments with new wholesale vehicle revenue up by 21% and both new and used retail sales each up 11% in revenue. Retail parts and accessories, servicing and repairs and finance and insurance commissions also reported increases in revenue. A robust sales performance. The group saw an 8% improvement in finance and insurance income -- commission income. Retail parts and accessories and servicing repair were up 7% and 9%, respectively. E-commerce sales grew 44% through the period with a significant increase in digital engagement driving higher revenues. Wholesale external parts and accessories revenue was up 9%. And I'll hand now back to Michael to run us through other aspects of our operational performance. Michael?

Thank you, Matthew. New retail unit sales saw a 7% increase during the half with MTO outperforming the FCAI's reported 2% rise in new vehicle sales over the same period. This resulted in the group strengthening our national market share to 15.8% compared to 15% for the first half '24. As the industry retreated post-COVID, the group continued to grow market share, thanks to acquisition, opening of our new greenfield CFMOTO dealership in Springwood and improved operational performance. Record used vehicle unit sales. The group saw a 10% growth in used unit sales, posting a record first half result while maintaining margin. We are targeting further growth in used vehicles and increasing our ratio of used to new unit sales. Inventory management to remain key focus. Reducing inventory and bank debt have been key strategic focus areas for the group. We are pleased to report that we have reduced inventory by $7.8 million since 30th of June '24 and by $14.3 million since 31st of December '23. This is a reflection of improved operational efficiency and capital management. I will now hand over to Nicole to speak further to our financial results. Thank you.

Thanks, Mike. Firstly, I'll speak to our debt position. Our cash on hand as at the 31st of December was $20.8 million. This is an increase of $8.6 million since the 30th of June, which has allowed us to -- or contributed to a reduction in our net bank debt of 36% for a 6-month period of $24.2 million reduction. In terms of our results, those early indicators that we saw of the market recovering in the second half of financial 2024 pleasingly have continued through the first half of 2025. And you can see here, as both Matthew and Michael have spoken to previously, we've seen increases in our revenue and our gross profit, which has allowed us to report EBITDA of $26.2 million and net profit after tax of $9.4 million, which is a 20% and 43% increase, respectively, a very good result. Our balance sheet, as I've mentioned previously, we are working to strengthen our balance sheet and bring down our debt leveraging. Net assets have increased 3% during the period. And you can see there that we've brought our bank debt down by $5 million. That was a $5 million repayment we made during the half. We've also brought our bailment debt down by 7%. This is a result of better inventory management and our inventory as well has come down by 5% to $148 million. In total, we've brought inventory down by 9% since the 31st of December last year. EBITDA. EBITDA for the period of $26.2 million is a 20% increase on the first half of FY '24. And we've also seen an increase in our EBITDA margin, which has returned to 8%. In relation to our statutory net profit after tax, that was $9.4 million for the half, which is a 43% increase. Very happy with that for the same period last year. And now to talk a bit more to our future outlook, I'll hand back over to you, Matthew. Thank you.

Thanks, Nicole. So yes, an outlook for the second half of this financial year. So we're cautiously optimistic about a positive result in the second half. We'll be continuing -- and we'll be continuing the following approach as we work our way through the year. We'll certainly be maintaining emphasis on cost management as we look at our expenses and overheads and finding efficiencies that we can work to in that space, and that will be ongoing, of course. The consolidation of business systems and certainly enhancing our digital capabilities and knowledge and strengths to optimize efficiencies and opportunities. Further repayment of debt and continued dividend payments to shareholders are a big focus. Certainly, a big focus on inventory and increasing our stock turns to not only reduce inventory, but more importantly, manage aging more effectively to provide a better return on our capital. And of course, continue targeting our growth in used vehicles and as a significant opportunity as we increase our ratio of new to used sales. A continued effort to maintain margins, of course, through planned improvements in those areas that I mentioned before. And we're certainly through our focus in -- on the digital space and our e-commerce capabilities, we're going to be continually looking for significant growth in that space. Okay. So that brings an end to the deck and I guess, opening up for Q&A.

[Operator Instructions] We will now take our first question from the line of Jared Gelsomino from Morgans.

Matt, Nicole and Mike, congratulations on the result. Just a couple from me. Maybe if you could just start on the GP dynamic. I mean just interested if you could give a little bit of color on the movements within the divisions. We've obviously seen some really strong top line growth here, but gross profit not at the same velocity. So can you maybe just give us a sense on where we've seen expansion/compression across all the respective divisions, new, used accessories, servicing, wholesale?

Certainly. Michael, do you want to?

Yes. Jared, yes, look, from an overview from a margin perspective, we saw some stability in the Mojo and also the Cassons businesses over the 6-month period, fairly stable exchange rates and nothing too radical happening on the sea freight side of things. So that was quite good to see. Obviously, the dollar dropped away towards the end of last year. There was some hedging in place that has carried us through. So there was some stability there. In the vehicle space, it hasn't really come as a surprise that we have seen new vehicle margins come off just as OEMs have caught up with supply. We've gone from a market a couple of years ago that was starved of supply to, in many cases, being oversupply. So with that, we have seen some compression on new margins. Used has held up relatively strongly. There's been -- it's come off marginally, but not to the same extent as what we've seen in the new vehicle space.

Maybe just while you got the mic, I mean, maybe if you could just speak a little bit on the Mojo. Obviously, it's a really strong top line outcome in the first half from a sales perspective. And I understand the business now is bigger than just OHV vehicles and has a strong representation of bikes. But I mean the impression when the business was first acquired was typically a seasonally stronger in second half and particularly in the fourth quarter. Can you just give a sense on how we should be thinking about whether that dynamic will play through in this half off the back of a strong sales outcome in the first?

Yes, sure. Look, the brand CFMOTO continues to go from strength to strength and where it has changed versus 2022, as expected, we're a lot more dominant now in the motorcycle segment. Back in 2022, that was a very small part to our business. And predominantly, it was in that ORV or ATV and side-by-side space. I'm pleased to report that we've continued to grow in that segment, but that segment has been under some pressure for the last 3 consecutive years. We are a bit more optimistic in terms of the market conditions in ORV as we come into 2025. But what's really been underpinning the CFMOTO growth has been the rollout of new motorcycles. It's a much bigger part to our business. There was substantial growth recorded last year. We had one model released halfway through the year, which was a runaway success. And even now 8 months on, we're still catching up with supply. The demand has completely exceeded our expectations. And in that space, it's pretty exciting. Looking forward, the focus from CFMOTO, the new models in the pipeline. So where it was very seasonal and I guess, skewed towards end of financial year with the ORV, we've leveled it out a little bit now because we've just come through a very strong period through the warmer months, which is traditionally the market for 2-wheeler motorcycle sales. So with that now being a bigger part to our business, we've seen a more consistent monthly result across the full year.

Jared, also, you'd have to say that -- and Michael, the maturing of the CFMOTO brand now and the acceptance in the market has taken a significant step up as well. So it's been a huge contributor as the market accepts the brand across the board.

Maybe one just real quick last one, and I'll jump back in the queue. But just maybe interested in, obviously, a really strong result. It looks like it's carried through the entire half. But can you maybe just give a sense in terms of whether we're seeing these trends continue through into the second half of this financial year in Jan and Feb?

We're -- I think as we pointed out, we're certainly outperforming. If you look at it on the retail side, we're certainly outperforming the market and the market is reasonably flat. But we're certainly going to be focused on maintaining our increased share of overall market. We see -- we alluded to the fact that we want more out of our pre-owned space. We think we can do a bit more there as we really focus in on how we trade and buy and manage our pre-owned business. The guys are doing a good job. But certainly, there's more there. And if you look at the wholesale side, we're certainly wanting to get more out of our e-commerce space. We're -- we see our digital channel as well as it's performed so far this year, we see there's some good upside there to enhance our bricks-and-mortar business through our e-commerce space. And as Michael was referring to with the Mojo world, both here and in New Zealand, the maturing of the brands, the market rates where there, hopefully, we're seeing some opportunity, strengthening confidence out there in regional areas and so forth as the dollar where it is at the moment certainly means that the world of agriculture and so forth are probably going to enjoy some reasonable export periods should bring some success when they start spending -- as they're spending some money and investing in their plant and equipment. So it certainly leads to some optimism, I guess, as we head in the second half of the year.

We will now take the next question from the line of Sarah Mann from MA Moelis Australia.

Just a follow-on question about Mojo, if I can. So Mike, you called out that part of the growth has come from the success of these new model launches that you have really strong demand for. Can I ask how market share has moved during the period as a result of these new model launches? And also, yes, I guess, trying to understand how that's flowed through to GP margin improvements as my understanding is they're a little bit better than what you -- the traditional mix.

Yes, certainly. Good day, Sarah. From a market share perspective, as you know, we don't report our data here, but I'm pleased to report that we haven't gone backwards in terms of our market share. There's been a lot of new models come through that have allowed us to enter into new segments in that ORV space, and I speak more about the premium. So we have seen some incremental opportunities across the CFMOTO off-road portfolio introduced last year. Coming back to the margin question, there was a new vehicle that we released the second half of last year, I believe, July, which is a new side-by-side vehicle, which has a selling price of $30,000. So it's the most expensive in the CFMOTO range. We anticipate that to be one of our most successful models this year. So I guess 2 things there. Look, a sign of how far the brand has come. We're seeing 0 resistance from the market at $30,000 for a Chinese brand. If you go back to 2007, when we introduced the brand, our higher selling price was about $6,000. So there's no resistance at $30,000. Consumers can see the value. And obviously, from a GP perspective, there's a lot more juice in that model compared to other models in our range.

Great. That's really helpful. And then I guess just a question on used bikes. So Matthew, you mentioned a couple of times that that's an area of focus. I think historically, MotorCycle Holdings has done quite well and kind of outperformed peers significantly on the used bike space. Can you maybe give us some, I guess, kind of a guide around how we should think about the used to new bike ratio that you're kind of targeting? And what are the key steps required to achieve those targets?

Sarah, you're right. The group from an industry perspective are very good. And like in any group of a significant size, you've got some really excellent operators in that space. And we've got some areas where we can certainly improve on. And that's very much focusing on the basics of why our leaders in the space that are selling sort of 1.5 used bikes to a new bike are so successful. And it's a combination of managing the trade-in space. It's in addition to that, the understanding the art of buying for that business, which is -- we want to make sure we've got a broader base of knowledge and expertise in that space. Using our digital space, and we've just input a lead management system into the business, which will certainly help our retailers manage their leads and conversions better than what we had previously because we can then track these opportunities better and get more efficiency into that space. And generally, then helping our -- the dealerships that aren't quite there at the moment, educate them into being better performers in that space. So if our top guys continue doing what they're doing and we lift the base to somewhere where our top performers are, we're going to see quite an opportunity across the business. And -- sorry.

Got it. So based on this -- sorry. You go ahead.

No, I was going to say, to answer your question, we're probably -- we're approximately 0.75 to 1 new bike at the moment, which is a pretty good outcome. But we certainly would like to -- we're working on ways as we head through the year to get that closer to a 1:1 ratio where we can.

The other question I just wanted to ask was around some of the cost initiatives. So previously, the company had called out cost reductions, particularly around consolidating the property portfolio. How are you going on re-leasing some of those sites that you've exited? And then second to that, you specifically called out a structured expense reduction strategy that you're looking to implement. Can you give us any more color or detail around, I guess, what kind of initiatives you're putting in place?

Yes. Certainly. With the -- firstly, the property piece, with -- recently last year, as you'd be aware, Sarah, we acquired the Harley-Davidson business in Sydney, which allowed us to reorganize our Auburn property. So we've got our MCA business and Harley-Davidson in there, which has certainly made much better and efficient use of that facility there. We've got properties in Melbourne in Epping that we're finalizing some improvements in the way we use that space down there. We've got a couple of sites in Brisbane we're just working through at the moment that we're going to sort out. And we've also just relet some space in Canberra as we get -- as we build a more efficient Canberra business also. And we're looking at everything. Yes. I mean the most -- as you appreciate, property, I guess, people and interest are the most expensive parts of running a retail business and where property piece is so important, especially since all the inflationary impacts of the last few years. And interest obviously has been challenging with interest rate increase. So hence, we need to be more efficient in how we manage our aging and our overall inventory piece. And the other strategies are very much around being better at what we do in some areas. We've already certainly kicked off a number of areas that we're working on in our aftersales and service business to really focus on our labor sales and hours available that we're selling to be more efficient in that space. As I alluded to before, in our lead management piece, we're very much focused on ensuring we have -- we improve our conversion rates, which will not only just reduce our lead costs, but by improving our conversion will mean, obviously, we hopefully improve our sales volumes by being a bit better and a bit smarter in managing our leads that are coming into the business through motorbikesales.com.au. And there's a couple of examples. We've got a number of other examples that we're digging into at the moment, and we can probably update you more as we round the financial year off and give you some more insights as to what we're planning then.

We will now take the next question from the line of Daniel Seeney from QValue.

I was just wanting to ask a question about the AGM commentary. So at the AGM, you said new retail bike volumes were up 3%, but you finished the half up 6.5%. So it implies a strong acceleration in the last 2 months of the year. Can you just provide some color about what occurred there to get that good outcome over the last bit of the half?

We had a -- we certainly had a strong push in December and January. I mean we had a fantastic finish to the calendar year with Harley-Davidson. And quite frankly, we had a look at being at the end of a quarter, as you -- I think you all would appreciate with various programs that OEMs have, they're generally quarterly led. So that certainly meant that we finished the calendar year off quite strongly. And January also, even though the market came back a little bit typical seasonality, I guess, we made sure we didn't have that sort of January lag that sometimes can creep in at the beginning of a calendar year and the network across the board really kept things pushing along. So we certainly -- we, the market, we certainly had quite a decent January in that context. And we look forward to the continued focus of the team moving forward. And on the wholesale side, Daniel, normally, especially, I guess, in regional Australia, you generally see a bit of a quieter period in January with the holiday seasons, et cetera. But certainly, the team in Mojo saw quite the opposite as momentum continued. So instead of kind of seeing the normal, sometimes a lull that you see seasonality, we've kind of sped our way through that, and which was great to see.

Okay. And with the ongoing success you're having with CFMOTO over the medium term, do you see scope for additional motorcycle brand additions in the wholesale business that could replicate that outcome?

I might give Michael, that one to answer.

Daniel, thanks for your question. Look, opportunities get presented to us on a weekly basis. We do have a very good track record with what we've done with CFMOTO. So we would be an appealing partner to any of these emerging brands from India or China looking to enter our market. But the reality is with CF, we've got that much in the pipeline, and it would have to be -- we would be very strategic with anything that we look to take on. We wouldn't want anything that would conflict. And you go back 3 years ago in CF, we were the dominant player only in that ORV segment. And a lot's changed since then. We've now got a scoot up. We're now in the motorcycle segment. We're now in the youth segment. There's aggressive investments from CFMOTO to roll out new motorcycles over the course of this year and next year. So we remain open-minded, and we will assess any opportunity that gets presented, but we would manage it very carefully to ensure that there's no conflict.

And just finally on the balance sheet, with debt reduction being a focus for the company at present, what's the target level of gross debt that you're sort of thinking about over the next year or so? And can you also remind us of the company's dividend policy?

Yes. Look, it's probably -- as we're sort of looking into -- look into budgets and resets, I can't -- it's probably a bit early for me to sort of give you a target at this stage that we've sort of settled on firmly.

It's a good question, Daniel. I mean that's exactly what we'll be working through in the second half of this year. And we can probably talk to more of that as we head to the -- as we talk to you at the end of this FY because there's a number of areas in the way we're managing our capital that we can probably talk to a bit more.

And in terms of dividend policy, 50% to 70% of statutory NPAT is our policy there, so.

Our next question comes from the line of Declan Carroll from Wilsons Advisory.

Maybe just sort of circling back on the OpEx front. Obviously, you've done a good job controlling that over the last 12 or 18 months. But I was appreciating if you could give some comment -- some sort of more color just as to how we should think about OpEx heading into second half '25. Like are you aiming for it to be flat versus first half '25? Or should we expect it to be going down a little bit? And then just thinking sort of more in the outer years like FY '26 and beyond, should we be expecting that to just be in line with CPI plus a little bit more? Or do you think you can continue to outperform on the OpEx front there?

Yes. Look, I mean, we're working on it. But I -- these things do take time to implement. So I'm going to say you should probably look maybe flat for the second half. Definitely no increase, but flat is -- to be safe, I'll say flat. Looking forward, look, I think, again, we'll probably bring out some more discussions about that when we talk to the full year. This is -- Matthew has been here for 3 months now. So we're having these discussions, and we've got some things in the pipeline, and we've got some strategies in mind, but we'll sort of work over the next kind of 90 days to firm those up and think budgets for '26 and '27 and '28. And I think we'll be able to give you a bit more flavor about it. And I apologize, I know that you want some now, but it's just a bit early on for us to have sort of set everything in stone what we're going to do over the next sort of 3 to 5 years.

Yes, it's a good question, Declan. And it's exactly what we're focused on in our planning as we head through this second half of the financial year. And we want to -- what we'll be doing is -- as I alluded before, talking to you at the end of this FY about those plans moving forward across the whole business. So we're going through that process now. And as you'd appreciate, there's a lot of work in there across all the various operations and a lot of thinking that we are working through as we go through that planning process and obviously, in parallel as we do our budgets for FY '26 and beyond. So give us a couple of more months as we work our way through it.

Yes. No, I understand, pretty fresh management team. So that's all good. And just the second question is if I go to your outlook slide on Page 18, you talk about there being sort of a more favorable agricultural conditions are expected to positively impact OHV sales. Can you just sort of clarify what's driving your thinking around that comment? Just because when we do channel checks with farmers and people in the agricultural industry, it seems people are a little bit sort of slightly pessimistic at the moment or just willing to sort of defer spending where they can. So just some color there would be great.

Yes. Look, I think on that one there, there's a couple of factors. One would be just the cyclical nature of the industry as well. We've had 3 years of declines in terms of reported numbers. So the last positive year was '21. We've gone backwards 3 years following that. If you go back through FCAI data for the last 20-odd years, very rarely would you see that these vehicles do have a life cycle and require replacing. And look, early days yet, but just the feedback that we're getting through our customers, our dealers, I'm not here saying that it's going to be a record year, but there seems to be a bit more confidence around the traps. We've had some more rainfall than what was probably anticipated over summer in parts of Australia, not all. The low Aussie dollar is a benefit to some of our farmers. So it's more just -- look, from what we're hearing, the year has started off more positively in that segment for Mojo and CFMOTO than what we've seen in the last couple of years.

[Operator Instructions] I'm showing no further questions. I'll now turn the conference back to Mr. Matthew Wiesner for his closing comments.

Okay. Thank you for that. So I think thank you for your questions. In closing, I think it's really just reiterating a couple of the points we made earlier. We're certainly, as I said, cautiously optimistic about the second half of the year. We're seeing some growth opportunities through the various operations of the business. And as I alluded to before, we're also digging into some of those opportunities in how we're performing and how we're managing aspects of the business, which will certainly drive some efficiencies and opportunities across the organization as we head to the second -- or the end of the financial year. So very much looking forward to the second half. There are -- hopefully, we see with some of the indicators and what we're hopefully seeing with trends in maybe some rate movement and other things would obviously have a positive impact on us. And as we -- as I said earlier as well, we're going through a fairly intensive planning process over the next few months across the organization as we dig in further to how and what we want to do over FY '26 and beyond and where and what we see those opportunities look like. In addition to how we want to manage our capital through the business, either in -- more efficiently, of course, in how we manage inventory, as the guys alluded to before, but also where and how we use it in the context of debt and also M&A opportunities that may arise as we work our way through this year and beyond. So a lot to work on. It's all very exciting, and we see those many opportunities moving forward. And as I said, we're looking forward to that enormously as we head through this year and look forward to hopefully reporting and talking to you fairly in July, August about a lot of those subjects then. Thank you to all.

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.