San Miguel Corporation (SMC) Earnings Call Transcript & Summary

Good afternoon, everyone. My name is Karlo Lim from BDO Capital and Investment Corporation. And on behalf of our fellow joint issue managers, Bank of Commerce, China Bank Capital Corporation and Joint Lead Underwriters and Bookrunners, Asia United Bank, BPI Capital Corporation, Philippine Commercial Capital, INC, PNB Capital and Investment Corporation, RCBC Capital Corporation and SB Capital Investment Corporation, it is with great pleasure that we welcome you to San Miguel Corporation's institutional briefing for today. Very quickly, we'd like everyone to go through these disclaimer pages, -- next slide, please. Please note that this briefing is exclusively for qualified institutional buyers and all attendees for today should have been invited by any one of the JLUs for the transaction. For more detailed information on SMC and the transaction, please refer to the offer supplement, which is available for downloading at [indiscernible]. Okay. So, moving on to the program. Before we start the presentation proper, allow me to walk you through the -- through the agenda for today. We will start this program with an implication, followed by the National Anthem. Opening remarks shall then be delivered by Mr. Ryan Tapia of China Bank Capital. To welcome us all to the briefing. Then we will go through the terms of the offer and the indicative timetable for the transaction with my colleague from BDO Capital and Investment Corporation. We will then move on to the presentation proper to be delivered by San Miguel Corporation to give us updates on their various business notes -- we will be allotting some time for questions during the latter part of the program. So, feel free to use the chat box to send in your questions. Finally, our program will conclude with some words from Mr. Mike Aguilar from Bank of Commerce. Just a few house rules for everyone before we start. We will be having a number of speakers for today. So, we suggest using headphones or earphones while listening to the briefing. Please take the opportunity as well to ask questions to the company and the general use by typing in your questions in the Q&A tab on the lower portion. If you have any follow-up questions or clarifications, please do not hesitate to send this year assigned JLUs. For today, we are honored to be joined by the officers of the San Miguel team, Mr. Ferdinand Constantino, CFO and Treasurer of SMC, Mr. Joseph N. Pineda, Deputy CFO and Head of Treasury; Ms. Minda Lesung, Head of SMC International Treasury and Funds Management; and Ms. Chesca Bugia - Tenorio, Head of Corporate Financial Planning. To start our program, may I call on Ryan Tapia of China Bank Capital to say a few words on behalf of the assurer and the joint lead underwriters.

Thank you, Karlo, and good afternoon, and a warm welcome to everyone. So, the bond market has been instrumental in boosting economic development, providing investors the opportunity to grow their money and funding the needs of various companies. On that note, San Miguel Corporation has been a reliable assurer in tapping the bond market to invest in nation-building and foster job creation. One can say that San Miguel is very much part of the fabric of Philippines Society. San Miguel's food and beverage products are staples in every Filipino home, ranging from San Mig Coffee and Pure Foods corn beef for breakfast to San Miguel beers for night outs. Its power generation portfolio and fuels business ensure energy security and help power businesses and communities across the country. The infrastructure projects help make it easier to connect people and move goods, whether via toll roads or very soon airports. And in 2023, the SMC Group contributed an impressive 6% to the Philippine GDP, and we are confident that the group's bold investments in various critical sectors and industries will contribute even more to the country's growth in the years to come. On behalf of the joint lead underwriters and the bookrunners, we are truly honored to be bringing SMC to the debt capital markets again. This is a unique opportunity for institutional and retail investors to not only earn attractive returns from the bonds, but moreover, to participate in San Miguel's core mission of providing a better life for millions of Filipinos. Thank you for being with us this afternoon, and we look forward to your participation in this offering. Back to you, Karlo.

Thank you very much, Ryan, for those words. I believe now we're actually in Series O and Series P of SMC's loan diffluences. And truly, the continued support for SMC's transaction is a testament to the investing public's strong confidence in SMC and its vision [Foreign Language] towards our fellow countrymen. Moving along, we would like to welcome my colleague, Franz Bonoan from BDO Capital to run through the offering summary, the parties to the transaction and the timetable for the offer.

Thank you, Karlo. Good afternoon. I'm pleased to present to you the indicative terms and conditions of the offer. ReAssure San Miguel Corporation and the instrument is fixed rate bonds constituting the direct unconditional, unsubordinated, and unsecured obligations of the issuer. The offer shell consists of Philippine PHP denominated 6.5-year fixed rate series or bonds due 2030 and 10-year fixed rate series P bonds due 2034. -- with an aggregate issue size of PHP 20 billion. This shall consist of a base offer of PHP 15 billion and an oversubscription option of up to PHP 5 billion. ReAssure has a discretion to allocate the principal amount of the offer bonds between the Series O and the Series P bonds based on the results of the book building. The net proceeds of this offer will be used for the investments in the Mandela International Airport and other airport-related projects in Bulacan and/or for the redemption of Series I bonds as a result of the put option exercise of the Series I bondholders and for the repayment of the series of bonds. The bonds [indiscernible] and minimum denominations of PHP 50,000 each and in integral multiples of PHP 10,000 thereafter. The bonds have received our rating of AAA with a stable outlook from field ratings. Next slide, please. The bond shall be issued at 100% of face value, and we are targeting initial date of June 28, 2024. These bonds will mature unless otherwise redeemed or purchased in accordance with the terms and conditions here in on the following dates. For the Series O bonds, it will be 6 months after the sixth anniversary of the issue date. -- for the Series P bonds, it will be the 10th anniversary of the issue date. As a standard, we have the relevant maturity date, falls on the data is not a business day, then the payment of the accrued interest and the final redemption amount shall be made by the issuer on the next business day without adjustment to the amount of interest and the final redemption amount. The interest rates shall be determined. These will be based on spreads above the applicable B valve, and these have been indicated in the Quib invitation letters that each of your institutions received. The interest in the bonds will be paid in quarterly in the years and shall be calculated on a 30 over 360-day basis regardless of the actual number of days. The bond shall have an optional redemption future, which grants you assure the right but not the obligation to redeem the bonds in whole, but not in part, on any series of the outstanding bonds on the dates set out below. For the Series O, this shall be on the third anniversary of the issue date and every interest payment date thereafter. And the redemption price shall be 100.5%. For the Series P bonds, these will have the redemption on the seventh anniversary of the issue date and every interest payment date thereafter until prior to the eighth anniversary, and that will be at the redemption price of 101.5%. On the eighth anniversary and every interest payment that thereafter until the ninth or before the 9th, that will be 101%. And finally, on the ninth anniversary of the interest date and every interest payment date thereafter until prior to the maturity date, it will be 100.5%. And Final redemption of the bonds will be at 100% of the face value on the maturity date, unless earlier redeemed or purchasing canceled by the user. Next slide, please. Covenants shall be subject to standard governance, where the bond shall be subject to the standard covenants, such as but not limited cross-default provisions and certain financial ratios. ReAssure will list the bonds on the Philippine dealing and Exchange Corporation on the year-to-date, and it shall be covered by Philippines Law. Now the parties we offer, the joint issue managers are as follows: Bank of Commerce, BDO Capital and Investment Corporation and China Bank Capital Corporation. The joint lead underwriters and bookrunners shall be in addition to the joint issue managers previously mentioned, shall be Asia United Bank, BPI Capital, Philippine Commercial Capital, PNB Capital, RCBC capital and SB Capital. The registered being agent will be Philippine Depository Trust Corporation, the trustee, shall the RCBC Trust Corporation. Console to be assured is because of Picazo Buyco Tan Fider & Santos law office and the council from the joint issue managers, joint lead underwriters and bookrunners the SyCip Salazar Hernandez & Gatmaitan law office. Finally, the indicative timetable. ReAssure has filed the amended registration and preliminary offer supplement with the SEC this past week, and we will advise you of the start of the institutional book building very shortly. We are targeting that the deadline for the submission of commitment letters and the interest rate setting date shall take place in the week of June 10, and we will advise each institution for allocation by June 14, June 14. It's also the date we intend to obtain the SEC permit to sell, and we are targeting the public offer period to take place between June '17 and June 21. And once again, we are targeting that the issue and listing date shall be on June 28. Please note that this timetable is subject to change, depending on, among others, the market conditions, the timing of the receipt of regulatory approvals and other relevant circumstances. Thank you.

Thank you, Franz. For questions pertain to the transaction or the timetable. This will be entertained during the Q&A portion of the program. But for now, without further ado, may I please call on Chesca Tenorio to kick off the presentation proper of SMC.

Thank you. San Miguel Corporation today is one of the largest and most diversified conglomerates in the Philippines by revenue and total assets with sales equivalent of approximately 6.0% on the Philippine GDP in 2023. Originally founded in 1890 as a single brewery in the Philippines, SMC has been operating for more than 130 years and today owns market-leading businesses and has investments in various sectors, including beverages, food, packaging, energy, fuel and oil, infrastructure, cement, property development and leasing, car distributorship and back-end services. SMC has been driven by its business operations, which are highly and fully integrated; its products are actually dominantly market leaders in their respective categories. Presented here in a snapshot of San Miguel Corporation's corporate structure, which is composed of: one, San Miguel Food and Beverage, it's 88.76% owned and a publicly listed company with 3 subsidiaries, namely San Miguel Brewery, Ginebra San Miguel and San Miguel Foods. Next is San Miguel Yamamura Packaging Group, which is 65% owned, Next is Petron Corporation, 68.26% owned, and it's a public-listed company as well. San Miguel Global Power Holdings Corp is 100% owned. San Miguel Holdings Corp that houses our infrastructure investment is 100% owned. San Miguel Properties, Inc. is close to 100% owned as well. Northern Cement, Eagle Cement and Southern Concrete Corporation are 100%, 99.9% and 100% owned, respectively. San Miguel is 61.78% owned by Top Frontier, 15.67% by Revital Holdings and the rest are public. On the next slide, you'll see that SMC has a very balanced portfolio of businesses, which are providing good cash flow and growth. First, you see San Miguel food and beverage. It's a leading food and beverage company with products that are among the most recognizable household brands. Next you see Petron Corporation, it operates the only integrated oil refinery and a leading oil marketing company. San Miguel Global Power Holdings is one of the largest power companies with a diversified power portfolio. SMC infrastructure holds long-term concessions in the infrastructure sector and the cement business has a strong market presence, particularly in Luzon and has established its respective reputation in cement production and domestic sales. However, one thing not emphasized enough here in this slide is that our portfolio of businesses isn't just a direct product of our legacy assets, continuously operating through the years, but it's the outcome of our unique investment strategy in the recent decade that has led our company to the conglomerate it is now the base. On the next slide, you'll see company strengths that we post of. First, you'll see market leadership and strong geographical footprint. SMC holds market leadership across major businesses that extends to other Asian countries, even Australia and New Zealand. Under food and beverage, with beer, we have over 90% market share in gin, in the spirits industry gin, we have 96.6% volume share in the Philippines, and we're the largest selling gin globally by volume for the year 2020. Fourth, we're #1 in 7 categories, 6 categories, sorry. And Petron, we are actually 36.3% retail market share, in Malaysia with more than 21% market share. In Power, we hold 20% share of the national grid, 25% share of the Luzon grid and 4% of the Visayas grid and 8% of the [indent grip]. On the next slide, -- you'll see here our reiteration of our conglomerate strides. You've seen it in the previous slide, but in summary, you'll see here from being one of the largest, most diversified conglomerates to having majority ownership in market-leading products, services and businesses to having a long track record of operations in the country. We have built a strong brand equity in the Philippines and continue to be well positioned to benefit from the country's strong fundamentals. Our diversified conglomerate today now benefits from synergies across its businesses. And with a good mix of mature businesses and ramping up projects, our operating businesses provide sustainable streams of income and cash flows. We also boast one major quality we have that helps our company's strategy, positioning and brand, is our highly visionary and experienced management team. And last, but not least, we've had a strong commitment to social responsibility and sustainability through our ESG road map imprinted in the company's DNA today. So continuously leveraging on these strengths, our company has reached where we are today, from only tapping 60%, a little over 60% of the Filipino wallet to now at over 80% of the consumption basket of a typical Filipino consumer. Our company's purpose today to lead a nation building by creating opportunities that will uplift generations of Filipinos, allowing all the share in the remarks of sustainable development and prosperity. And we envision a resilient and globally competitive Philippines where everyone can enrich and enjoy their lives. So, aligning to that purpose and leveraging our company's strengths is our investment strategy. we recognize not only the lack of investments in growth in other sectors of the Filipino company, but we also recognize that these investments are long gestation and capital intensive. These are qualities that would need a lot of resources and support. That's why San Miguel's diversification program has a portfolio guided strategy. You'll see on the slide, our overarching corporate strategy is around our long-term desire of value creation. To achieve this, we have a criteria for portfolio investments. These are industries having a long-term cycle of continuously value creating, where we continuously extract value and seek synergies through its process chain and cash generation. We also look at industries that contribute the engines of the country's progressive growth by delivering multiplier effects for a total impact of nation-building. Also, we look at industries where we are able to incorporate our sustainability blueprint that goes beyond short or middle-term benefits of our overall stakeholders. After having these criteria of portfolio investments to view of the capital investment of the company's growth strategy, we are fundamentally guided by fully maximizing the utilization of the group's resources and assets. So, we leverage on our robust traditional core businesses, our corporate brand equity and the economy and the capital markets. With our advantage of having a portfolio of traditional core businesses and new investments, as a conglomerate, we ensure value creation is sustained. We are able to balance value realization throughout our portfolio investments, optimize capital allocation and recycle capital and new opportunities when needed. Moving on to the financial highlights. SMC generated consolidated revenues of $1.4 trillion in 2023. The lower oil market prices have impacted Petron and decline in Power business revenues led to the 4% decline in total revenues, but this was partly offset by the strong volume performance from SMFB, GSMI and Infrastructure, coupled by the significant contribution of the full year consolidation of Eagle Cement. Conversely, consolidated operating income surged by 34% to PHP 144.5 billion in 2023. And this notable increase was driven by the aforementioned strong volumes across the board with the contribution of Eagle Cement. Despite the year-end results for the food business trading behind 2022 figures, the business still delivered substantial contributions in the fourth quarter. Net income for the group increased by 67% in 2023 to PHP 44.7 billion. Also on account of recorded ForEx gains for 2023 against the losses in 2022. On the balance sheet outlook, we're looking at a very robust balance sheet for our group. As of end December 2023, San Miguel Corp. is sitting on a robust balance sheet with an asset base of PHP 2.5 trillion, and this is growing at a CAGR of 8% for the past 4 years. Moving to our major businesses, starting off with San Miguel food and beverage. It's a listed company with a market capitalization of PHP 301.4 billion as of December 2020. Despite the challenging macroeconomic landscape in 2023, particularly in the first half of the year, the Food & Beverage Group consolidated sales for the year-ended 2023 amounted to PHP 380 billion, which reflected still a 6% growth from 2022. All business segments delivered sales growth, driven by better volumes and prices. Consolidated EBITDA for food and beverage was up 7% at $66.8 billion and overall EBITDA margin even slightly increased to 18% as compared to 17% in 2022. Consolidated income for F&B operations for the year amounted to PHP 48.4 billion, which is 1% lower only as the growth in volumes and prices were not sufficient to offset rising input costs. Net income, however, jumped 10% to PHP 38.1 billion, which is the highest net income figure achieved by the group since the SMF B consolidated in 2018. Asset updates for the group. In October 2023, one of San Miguel food and beverage several integrated food complexes was inaugurated in Hagonoy, Davao del Sur, as part of our larger push for regionalization, boosting food security nationwide, which started with the expansion of our food and beverage businesses in the last couple of years. So, you'll see new facilities have significantly bolstered efficiency and have sprung up innovation for the group. With our integrated facilities, which is expected to yield the most robust pipeline for new products for food and beverage, which would be a major source of growth moving forward. For the next business, Packaging. The packaging business is a total packaging solutions business, servicing many of the leading food, pharmaceutical, chemical, beverages, spirits and personal care manufacturers in the region, including SMC Group's internal requirements. In 2023, the packaging business grew its revenues by 4% to PHP 38.4 billion, driven by the sustained demand of glass containers, plastic crates, pallets from the food and beverage segments, complemented by the continued growth of its open in Australia from providing previously 100% services to SMC internal requirements. This has slowly been growing its external sales now accounting for more than 70% of the business, as a packaging business, it continues to grow its external customers. For fuel and oil, -- the Petrol operates the only integrated oil refinery in the Philippines and holds leading market positions in the Philippines and Malaysia. It's common shares are listed on the PSC as well with a market capitalization of PHP 33.3 billion by the end of 2023. For 2023 performance, despite higher volumes, but tranche sales dipped by 7%, reflecting the continued price correction of the extraordinary elevated levels in the oil market. Its wide presence in effective volume generation strategies boosted its volumes of 13% growth, driven by the notable performance in the Philippine operations, which grew sales significantly across all key segments, while Malaysia continued to deliver steady growth. EBITDA grew by 36%, while consolidated operating income reached PHP 30.7 billion at a notable 60% leap from last year's level or 2022 level. This is primarily driven by the continued efforts in optimizing assets and resources, capturing continued demand recovery and response to market volatility. Petron's consolidated net income in 2023 stood at PHP 10.1 billion, and that was a 51% growth from 2022. For Petron, we continuously focus on optimizing its refinery to realize favorable margins by maximize and improve production yields, improving supply chain reliability and efficiency by expanding company truck fleet and securing additional tonnage and storage capacity to secure volume growth. And they're also sustaining volume growth and strengthen market leadership through implementation of strategic pricing programs, strategic network expansion, improvement of productivity of existing service station network and continued expansion of the nonfuel business with new locators. For Power, SNGP is one of the largest power companies in the Philippines. It posted relatively flat generation volumes year-on-year in 2023, due primarily to the extended outage of the 1,200 megawatts in the power plant from June 2022 up to June 2023. While it underwent retrofitting works to improve its fuel efficiency and reliability. And as it awaited a substantial completion of adjacent full-scale LNG terminal that has been sold on a long-term basis. EBITDA remarkably improved by 3x, excluding PISA payments, EBITDA grew by 13x -- the business is expected to see improving performance with new revenue streams expected in the next 3 years from its expansion such as Masinloc, Mariveles and the best as well as Indian plan assumption of normal operations. SNGP has moved to terminate its fixed price power supply contracts. They have entered into new contracts with Meralco that allow for full fuel pass-through pricing provisions, particularly 1,200 megawatts for Ilijan, 1,000 megawatts for ED, 400 megawatts per Limay and 300 megawatts for Mariveles. As an update, the inauguration of the BESS facility in Limay Bataan held on March 31, 2023, to be paved the way for the planned integration of about 1,000 megawatts BESS facilities in the grid. Out of the total capacity, 470 megawatts hours across 15 sites have already been achieved completion and 340 megawatt hours of ancillary services procurement agreements with the National Grid Corporation of the Philippines for 11 best facilities have been secured. On the next slide, you'll see that SMC is currently expanding its portfolio with the ongoing construction of the best, the Mariveles Power Plant and the Masinloc power plant units 4 and 5 as well. On the next slide, you'll see infrastructure. But the infrastructure business, it's conducted through San Miguel Holdings Corporation. It consists of investments in companies that hold long-term concessions in the infrastructure sector in the Philippines. SMHC manages and upgrades one of the largest major networks of toll roads currently with a length of approximately 220 kilometers. SMHC has rights to approximately 1,099.35 kilometers of total road length serving Metro Manila and other fast-growing regions of result. SMC Infrastructure delivered a remarkable performance in 2020, posting consolidated revenues of PHP 34 billion, that's a 17% growth from 2022, and this was mainly brought by the sustained growth from all the operating toll-roads reaching a combined average daily traffic volume of a high of 1 million vehicles daily traffic. This is up 8% from the previous year's level, complemented by the continuous increase in travel activities. Notably, the business also grew its EBITDA at a 4-year CAGR of 47%, respectively. On the next slide, you'll see the -- it's a list of the ongoing projects of SMC infrastructure. We are continuously expanding our call road network, currently building our Manila International Airport in Bulakan, Bulacan, and constructing our venture into mass rail MRT-7, as updates. The Manila International Airport land development and ground improvement works are ongoing and progressing very well. Overall progress for the land development work is at 77%, while airport development work is estimated to commence in 2025. The railway component percentage accomplishment for the MRT-7 is at 68.7%, while the detailed engineering design and site development for the depot is still ongoing and on track to operate by end 2025 or early 2026. For the last business we would describe as a cement group, SMC conducts a cement business through San Miguel Equity Investments, Inc., which owns 100% of the common stock of Northern Cement Corporation and Southern concrete industries and 99.96% of newly acquired Eagle Cement. In 2023, the Cement business registered a fourfold growth in consolidated revenues to PHP 37.2 billion, mainly due to the consolidation of Eagle. Operating income likewise posted robust growth amounted to nearly PHP 6 billion, while net income reached PHP 4 billion. Despite the challenges in the market for the cement industry, the business continued to deliver a strong performance through various cost containment initiatives and significant improvement in the cost of major inputs. The Cement business recorded a remarkable increase in EBITDA from PHP 532 million in 2022 to PHP 9.5 billion in 2023. For our final slide is on ESG initiatives or our road map just an update. SMC's framework is anchored on our core corporate purpose and mission and in line with the United Nations Sustainable Development pools or UN SDGs to keep us highly focused on initiatives that are impactful, effective and relevant to all our stakeholders. SMC has set forth ambitious goals that reflect its commitment to its sustainability. You'll see on your screen, our 4 targets. First is establish a circular economy approach by 2040 to achieve net zero by 2050, 3 uplift, at least 15 million people by 2030, fourth, develop a fully sustainable and ethical supply chain by 2040. SMC has already identified a road map with initiatives under each goal with short, medium and long-term timelines. We will be providing updates on our ESG road map every investors briefing we think -- that ends our presentation, we'll open the floor for Q&A.

Thank you very much Ms. Chesca for that very comprehensive presentation on SMC. So as mentioned, we may now open the floor for questions from our audience. Kindly in the chat box below for any questions that you may have. And we'll try to entertain them. Okay. So we have a following question. The first one, please offer the issuer. Please provide an update on the acquisition of Aboitiz Power Corporation and Meralco in Sanmina Global Power's Ilijan Power plant and LNG terminal. By when does the company expect the transaction to be completed?

For that question, it's actually subject to regulatory approvals. We are still expecting for the transaction to be concluded within the year.

For our next question, Okay. Please comment on the reported SMC and MPIC tollways business merger. How will this affect current and future infrastructure one-project -- infrastructure and to projects of SMC...

Those are going on in discussions -- there's still a lot of things that we show you where we are where they are. So these are all discussions. Unfortunately, the media has been always highlighting some people mentioned that. But hopefully, something will come up also with the balance of the year. In the meantime, San Miguel will continue to were seen with these projects on the infrastructure like the MRT 7 with the extension of [indiscernible]. So we will continue with those projects.

Okay. So we have here one question. What are the current debt ratios of SMC? How much headroom do you have under existing covenant?

Well for net consolidated net debt to equity, that should be below 2.1x. Currently, we are at 1.57. For our ICR, we have to comply more than 2x, currently we are at 2.19...

Thank you, So we have here a question from Nathaniel as -- any progress on Petron's power plant upgrade.

I think that's a Yes, that's complete.

Thank you. Thank you, sir. We have another one from Rocky and Daya. How much of 2024 maturities at the SMC on have already been refinanced?

Everything has been taken care off. We've already disclosed that for the takeout in September for the $2 billion. That's already increased. We have refinancing we've already concluded its readily available. And for the remaining bond maturities that we have, it is part of the UOP for the shares that we issued last December. So everything is taken care of...

Thank you. Okay. Okay. We have another one, also from Rocky And Daya -- can you provide background on Azure investments, the investor in Power pref shares...

It's a private equity firm and the placement was done by a private place we... Yes.

Hold on sorry, there are more questions. Okay. I think this one also from Rocky And Daya. Can you provide guidance on revenue and EBITDA for 2024 at SMGB? How much in is expected from BESS this year...

We don't really provide guidance on a full year basis, but I think we have noted in relation to test the BESS it actually annually produce as much as $10 billion EBITDA I think we met that answer our expectations for 2024 as well. Not only BESS should be expected to contribute for the SNG fees recovery or growth this year would also be the resumption of Ilijan and as well as Mariveles' commercial operations will start the latter part of this year as well. So you can expect growth. no guidance, but we do expect growth.

I think of some time in early May, we will give sort of the first quarter. The indications are the results of San Miguel Global Power has been very, very push... It's not a related party. I show a question there about as you were asking if it's a related party. It's not a related party...

We have one from [indiscernible]. What is the cash CapEx outlay expected per annum from 2024 to 2026 if there's already an schedule?

For the next 3 years, we can expect from about PHP 15 billion to PHP 20 billion, depending on completion of certain expansions mainly with BESS and Mariveles and Masinloc in 4 and 5. That's for the next 3 years, yes annually.

So okay. We have one from Amanda. Can you please provide -- are there any plans to go to the offshore market this year for fundraising.

So even that discount the fact that there's an opportunity, we will grab it. But right now, everything is still slowing...

Thank you, -- sir Joby Okay. So I think we just have a few -- well we transfer more questions, if any. Otherwise, we can probably end the Q&A, so probably all last minute. Okay. I think we no longer have any open questions in the Q&A. Thank you, everyone. Thank you to the audience for raising your questions. So if you have other questions that were not taken up during today's session, please feel free to reach out to your respective JLUs and they'll be more than happy to assist you without ever information that you will need. And I guess, finally, to close our program, we would like to call on Mr. Mike Aguilar from Bank of Commerce to provide us with some closing remarks. Thank you.

Thank you, Karlo. Good afternoon, ladies and gentlemen. On behalf of San Miguel and the underwriting syndicate, thank you for having joined us this afternoon. We hope you will take this opportunity to support San Miguel as it undertakes projects that are aimed at nation building and bettering the lives of all Filipinos. Your support over the past years has helped San Miguel branch out from its traditional beverage and food business into retail fuels, power generation and infrastructure. Your consistent support has enabled San Miguel to roll out world-class transformative projects involving elevated toll roads, power plants, a commuter Railway, a large battery storage facility. We look forward to your continued support of San Miguel forges ahead with its next batch of nation-building projects, which now includes airports. I am confident that as always, the investing public will find partnering with San Miguel to be fruitful and rewarding, especially now given that the interest rates are quite generous on the offer. Many thanks to all of you. Have a good day, and have a great weekend. Thank you.

Thank you, Mr. Aguilar . And with that, we would like to thank everyone for taking time out to join this briefing. And also thank you to the Sanmina team as well for your very comprehensive presentation and for giving us the opportunity to be a part of this important transaction. For more information on San Miguel in the transaction, please do not forget to download the offer supplement, which is already available on SMC's website. And please do keep in touch with your JLU use for any questions or concerns. So with that, I guess we can adjourn. Thank you, everyone.