Surgical Innovations Group plc (SUN.L) Earnings Call Transcript & Summary

Good morning, and welcome to the Surgical Innovations Group plc Interim Results Investor Presentation. [Operator Instructions] The company may not be in a position to ask every question received during the meeting itself. However, the company can view questions emitted today and publish responses which is appropriate to do so. Before we begin, I would like to submit the following poll. And I would now like to hand over to CEO, David Marsh.

Good morning. Good morning, everybody. I'm obviously here with Brent, our CFO. And thank you for taking the time to join us on this IMC. We start by just looking at some of the -- sorry, -- if we start by looking at the commercial and operations for the first half of the year, the most significant thing we achieved in the first half of the year and more recently is the successful transition to MDR. So those of you that are unaware, the medical device regulatory bodies have moved from CE mark to MDR. And this has been a major task for the company to achieve. So we are now recommended for certification of all our product groups and our QMS as well. So this is, as I said, it's a major achievement and it allows the company to focus forward-looking rather than spending a lot of time and bandwidth on achieving MDR. I will talk a lot about it during the presentation because we are widely proud of having achieved that. On the other -- in other areas, we introduced an operational improvement plan during the -- during 2024 where we restructured the benefit -- I'm sorry, restructured the company to deliver benefits. And we're beginning to see those filter through into first half of the year and they will continue in the second half of the year and move into next year as well. We also see our SI Brand growing. This highlights the confidence that the market has in our technology and positions us nicely to continue to grow as we move forward. Our OEM business, we've talked a lot in the past about that. And primarily, that has been the business that we have with AMS. We've spent a lot of time building partnerships with other companies and we're beginning to see that growth from a small foundation, and we expect that to grow as well as we go into 2026. In conjunction with our SI Brand and the quality that is seeing that grow and let the company -- sorry, the customer confidence. We're also seeing our sustainability messaging continue to resonate and we see that in key markets in Europe and in Japan and obviously in the U.K. And that gives us the ability to differentiate ourselves from some of the bigger competitors that we're up against. And then during '24 and at the early part of '25, we introduced a number of new third-party products to our U.K. business. And we're seeing those contribute to sales and we're gaining traction with those products as we move forward. So one of the things that you will have seen this morning is the changes to the Board. And we're delighted to bring Roy Davis as Chairman. Roy, as you know, has a huge amount of industry experience. He's worked within medical device companies, similar size to ours and also much bigger. And Roy and I have worked together many years ago. So I've known in our [indiscernible]. So I've known Roy for over 20 years, and he will be an excellent addition to the Board and helping us drive value for shareholders. Roy is joined by Andrew Boteler, who has worked with him on a number of projects in the past, and he will help -- will begin to drive the company forward. And Duncan Soukup joins us from our largest shareholder, Thalassa. And he is immensely experienced in listed businesses and will provide us some guidance around that. So if you look at the U.K. business, the top line sales are stable from last year, and we're doing roughly the same. And this reflects the portfolio realignment as we dropped certain third-party products last year and brought on new products from the likes of Aspen and Cipher Surgical. If you look at the like-for-like business, over the 2 periods. We have grown the business in the U.K. by about 10%, and that is partly some SI Branded products and primarily from some of the new third-party products that we picked up. But they're beginning to gain traction, and we see those as real opportunities going into the second half of the year. And we see sort of real opportunities to add more products to that portfolio throughout the coming 12, 18 months. We've invested significantly in the U.K. sales team and marketing tools as well. And that has seen the beginnings of accelerating sales revenue in the U.K. And I think with a robust management structure we now have in place, a full team in place, we can start to really see some traction in the U.K. In terms of pipeline expansion, there are a number of new products coming into the portfolio in the second quarter for this year. LogiTube [ Lux ] which you will see on the new product development slide. They will all help drive revenue and that, again, they're a real opportunity for us. So the U.S.A., that tends to be our problem child. It has been for a number of years, and we've seen a further slip in revenues over the first half of the year. Primarily, this is around some of the tariffs that Mr. Trump has inflected on us. And they're really frustrating because we see that the Tariffs are imposed on the U.K. business going exporting to the U.S., but we're not seeing any tariffs coming back the other way. So that continues to make life difficult for us. What we're doing to try to work around that is look at different routes to market in terms of some of the new products we've got. So LogiTube [ Lux ] expect that to be FDA approved in the early part of next year. And that is -- will allow us to tap into the large bariatric market they have in the U.S. And we're hopeful that, that will allow us to pick up some new distribution partners but we are exploring a lot of opportunities around some national companies that we are talking to that might be able to pick up the SI Branded products in the U.S. But it is a challenging market for us. And with the bandwidth that we have and the responses we're getting from Europe, et cetera, we are looking to focus where we do spend our time. So the market overview in Europe. Again, strong revenue performance followed on from last year's success. This is underpinned by our sustainability messaging and the enhanced marketing tools that we've put in. So we've upgraded the financial and environmental calendar -- calculator, sorry, and that's producing some good results for us. We're working very closely with our distribution partners around sustainability. And with our French partner, for example, we've managed to sustainability as a key indicator on tenders. So that's fruitful for the future. Some of the new products that we've launched, the LogiTube and going forward, the LogiTube [ Lux ], they will give us growth within the bariatric market and products like the ELITE XL, which is a line extension, we're seeing some good traction in Germany, in particular, as we undertake a 20-center trial. So that's a real opportunity going forward. So the APAC region, although we saw an overall decline in APAC, that's primarily down to the business in India, and I'll touch on that in a minute. But the Japanese distribution partner has grown that business by 9%, and that's showing year-on-year growth. They're a really good partner for us. They work very closely. We're looking at different opportunities of offer, introducing different parts of our portfolio. And so we expect that to continue going forward. The challenge for us, as I said, was India, and India lost a lot of their sales team in the first half of last year. And so we had to work with them as we rebuilt the sales team. We provided training for them, and they've done sort of the almost back to full headcount. We expect that to take a little bit of time to pick up as the sales team learn and understand the products. Going forward, sort of, hopefully, that will be back on track in the early part of next year. The Rest of the World business, again, we saw a nominal decline. That's partly because of inconsistent sales in Middle East. The Middle Eastern business is always very bumpy and sort of -- we're seeing a sort of a bit of a transition there. And whilst our business in Israel has throughout last year remained quite strong, we are beginning to see some impact now of the current political situation in Israel. And in Canada, where we had some good growth in the early -- in the late part of last year. We've had some quality issues that have slowed evaluations and slowing orders as well. Our OEM business, we did flag that we would see a decline in the first half of this year. If you remember, we cleared a significant back order in H1 '24, and that inflated sales a little bit. Those ordering patterns now with AMS have returned to more normalized monthly patterns, and we're seeing that business stabilize. But where we're seeing opportunity is the partnerships that we are building with some global instrument manufacturers. And we've seen that business, albeit from a very small base, begin to grow, and there is significant opportunity in the second half of this year and into 2026. And that sort of follows the strategy of looking at opportunities outside AMS to support the OEM business, and I think that's beginning to pay off nicely. So my favorite slide at the moment, the compliance update. So as I mentioned, the company has achieved certification on all product groups now. And that's important to the company for a number of reasons. First off, of course, we can't sell the product beyond 2028 without MDR. And that puts us in a really strong position going forward. But MDR took up more bandwidth than just passing the certification. And what we will see going forward is that it will release the burden from the compliance department, the R&D department and production engineering. So all of those departments are heavily involved in the process of MDR. R&D can now focus on next-generation pipelines on new products and cost down projects as well. Production engineering can focus on making the plant more efficient and driving efficiency savings through the business. And compliance, obviously, can focus more on regulatory and registration processes in new markets and allowing us to expand our global footprint. So it's a real opportunity for the business to start looking forward again and drive where we are with sort of the compliance side of things. In terms of costs, there will still be surveillance cost for maintaining MDR, but the major expenditure should begin to reduce and so we can focus that into more productive areas for the business in terms of revenue. So this puts the company in a really strong position. A lot of companies still continuing to struggle with MDR. We've -- now we've achieved that, we can start focusing on new markets, new products and driving forward. So this really does allow the company to focus on moving forward. So sustainability continues to drive growth for us. And I know I've talked about this for over a number of years but we're still seeing that it gives us a chance to differentiate ourselves from the competitors. And we see that in Europe, we see it in the U.K. and we see it in Japan. And what it does is it allows us to have a different conversation with health care providers. We're no longer having the initial cost, which is about price. We're having a conversation with their sustainability teams about reducing their plastic waste and their CO2 footprint. And we do that by using a number of marketing tools, in particular, the financial and environmental calculator. So when we sit in front of the sustainability teams, we're punch in all the data, the number of laproscopic cases they do, the products that they currently use, and that will produce them the reports on costs on their CO2 footprint and the amount of plastic waste that may happen. At the same time, it gives some comparative data on Surgical Innovations product. And if they switch to us what they would save in plastic waste and what they would save on their CO2 footprint and also what the cost reductions would be. And we generally will show them that we can reduce those targets by about 70% and between 25% and 50% in cost as well. So it's a really unique selling points that we have, and it helps us avoid the starting point being around how many pennies can we save for their procurement department and it's about how much plastic waste we can save. So in terms of new product development, as I mentioned earlier in the [indiscernible], a lot of their focus has been on assisting with the MDR process. We have quite a small team at the moment as part of the restructuring. But now what we can look for is driving cost initiatives through the -- or the cost down initiatives that we've had and we've been working on for a number of years. And the first 2 of those will be introduced during the tail end of '25, and we'll see the benefits in 2026. So if you -- the products on the right-hand side of the screen, that's our YelloPort Elite. And we've changed manufacturing techniques and materials that will allow us to take about GBP 2 out of our product going forward. So that will significantly improve the margins. And what at the moment is quite a tight margin product. So there are a number of these projects that we hope to introduce during 2020 -- for 2026 and will help to improve margins on our high-volume consumable type products. The other picture you have on there, the illuminated product. That is the LogiTube [ Lux ]. This is a product that is -- has particular resonance in the U.S., they like to have an illuminated version, but also in Europe, too. So what this product does is a gastro calibration tube and it sits in that -- It's inserted transorally. It sits in the stomach, and it provides a guide for the surgeon to make sure that the -- to make the existing pouch too small. In bariatric patients, you have a lot of fatty tissue and visualization of the tube can be quite tricky, by illuminating it and it fluorescence as well, it makes life a lot easier for the surgeon to visualize exactly where he's placing the tube and reducing the size of the stomach. In terms of future projects, we're looking at the next generation access device, and again, sort of that is to improve the functionality and to drive cost as well. So sort of, there are a number of ongoing projects that we have particularly around materials, and we're in very early stages of working with University of Leeds to look at possible materials and see how that will generate an opportunity for us going forward.

Okay. Good morning. So I'm Brent Greetham, the CFO for the Surgical Group. And in the next 5 slides, I will be priding a final financial update at the first half of this year. So as you can see here in front of you, if we look at the revenue performance for H1 2025, it's actually very comparable to the prior year, down slightly but broadly in -- the same. And despite the -- so the headline number is broadly the same, but as David spoke to a moment ago, the composition has kind of changed somewhat, obviously, kind of still holding the same revenue position. What you'll observe that the gross margin at 31.3% is lower than the same period last year, albeit it's markedly improved on the full year 2024 position. And really, the driving factor there is the customer mix, of course, that can move the margin. And as mentioned, we have seen a change in the revenue composition, which has impacted the gross margin a little. If we look at the profitability metrics, that's adjusted EBITDA, adjusted operating profit and adjusted profit earnings per share, you can see [ marked ] improvement versus H1 2024. And really, this is a reflection of the cost saving measures that David touched on a moment ago and some of the restructuring activities that were undertaken last year and throughout the year till September. And so really, last year, in 2024, we saw a lot of efforts around rightsizing the cost base to reflect the top line deliverable. And as a result of that very difficult exercise, we're able to remove a lot of costs from the business. But what that means is, of course, as we move through this first half of the year, we're realizing that benefit as a result of the lower cost base and therefore seeing improved profitability metrics. Next slide, please. I won't spend too much time on this revenue analysis, as far as David spoke to this, of course, in depth a moment ago. But what you can see here on this visual really is the cut of SI exercise distribution and OEM. And as David mentioned, you can see the uplift in the SI and Distribution sales, partly offset by the reduction in the OEM sales. But as I said, I won't speak too much to that. So if we move on to next slide, please, on the margin analysis. Okay. So we're looking at here really is the margin down to the contribution level. And as mentioned, you can see that whilst it's below the H1 2024 position, it's markedly up on last year's full year performance of 28.8%. So what we find as a challenge, of course, is that for out this first half, there have been limited price increases running through the first half of the year. So naturally, that constrict our ability to drive margin improvement because the price uplifts are modest. We will see more in the second half of the year. But in this first half, they were limited. And like every business, of course, we continue to see cost cost pressures as our suppliers seek to pass on inflationary price increases to ourselves. So from our point of view, we -- it's always around kind of, can we optimize the margin performance by introducing cost down initiatives, as David spoke to. How we introduce operational efficiency measures across the wider business to ensure that we are operationally excellent, delivering and manufacturing our products in the best possible manner. And at the same time, of course, being able to push back on price increases that may come away from suppliers. And at the same time, of course, where we can in our very competitive marketplace push forward with price increases where at all possible. So the contribution margin, as I say, is broadly similar to last year, improved on full year last year position but we're optimistic as we move into the second half of the year, where we'll see improvement. Next slide, please. What this slide here, operating expenses illustrates really well is the impact of the restructuring activities undertaken in 2024. As mentioned, considerable cost was removed from the business in the first half and continued into the second half of 2024. And really, we're seeing that benefit in the first half of 2025. And really, the bar chart illustrates where we have seen those savings in particular. So you can see that in terms of sales and marketing investment, we've seen consideration H1 '24 versus '25, but we've also seen reductions in amortization. So really, this first half of 2025 has been about reflecting about the position we find ourselves in having gone through a challenging journey in 2024 and just [ trading ] very carefully and very responsibly as we move through this first half of the year, and then really reflect on position we can ourselves in, in terms of financially, commercially, of course, with regards to cash also that allows us how we -- that allows us to consider how we will approach the second half of 2025. And I think what we're going to see in the second half is some modest uplift on the cost base, certainly around sales and marketing, that's more to ensure and support sales growth as we move to the second half of the year. And of course, it goes without saying that whilst we took the very difficult exercise of taking costs from the business in 2024, we certainly do not view it as a job done. We can continue to review the business and manage margins as tightly as possible, looking at all areas to rationalize the cost base, to optimize operational performance, to ensure that we extract every possible element of margin that we can. Next slide, please. Okay. So if we look now at the financial position and I guess, really looking at elements of the balance sheet. And some areas that I kind of would flag as you kind of look down at the columns really is, in terms of our inventories, we've sought to reduce inventory holding position from December to June. You can see it's reduced from almost GBP 3 million to GBP 2.6 million. And really, that is, of course, as a result of a conscious effort to ensure we hold the right levels of inventory across the business so that cash is not tied up in excessive working capital in the form of inventory. And whilst we made progress by seeing a material reduction, we expect it to continue as we move through into the second half of the year. And really, it's a balancing, actually ensuring that we hold -- we do not hold more inventory than we need to, whilst, of course, ensuring that we can always satisfy customer demand and is striking that right balance. And I think we're certainly making headwinds -- headway on that journey. I think it will certainly be supported by the fact that we're just recently had an Operational Director join the business, who will also help further in that exercise. When we look at trade receivables, you can see it's increased to GBP 2.2 million compared to GBP 1.75 billion at the year-end. And really [indiscernible] you might describe it as important timing, so far that June position is the highest position that we have seen all year. And actually, that position has unwound considerably since June to a much lower position in July, August and then continued into September. And really that spike that you see in June is nothing more than the fact that we were onboarding a new credit controller in the finance group. And it was simply the case that they took a month to get their feet on the table, you might say. So now in terms of receivables, it is fully up to date, nothing is overdue. So it's in good health, which, of course, supports working capital, but more importantly, support cash balances also. Trade number payables are generally flat compared to year-end. So not so much change there. In terms of cash and cash equivalents, you can see the position has worsened a little since the year-end. But it's still in good health. As I say, what we've seen since June is that cash and cash equivalents position has improved closer to GBP 100,000 from the GBP 460,000 you can see on screen. And I say most of that is due to the fact that it accounts receivable position has unwound. And let's say I expect that to continue into September to ensure that, that cash and cash equivalent position is optimized. And at the same time, since June, we found that our cash headroom position has also improved again as a result of unwinding the trade receivables. I'd also like to mention in terms of the borrowings, you can see the borrowings has reduced from GBP 0.5 million to GBP 0.33 million at June. And this is as we pay off the CBILS loan that we chip away at each month, of course, and that will be fully paid off partway through H1 2026. So that flow is nearly fully repaid. And again, it will allow us to introduce more cash back into the business. So I'll now pass you back to David for a summary and outlook.

Thank you, Brent. So where we see the business today is we've been successful and very difficult circumstances to roll out new products, and we continue to do that with products like the LogiTube [ Lux ], and they will offer opportunity and may offer us some routes to market, particularly in somewhere like the U.S. A waxed lyrical about the MDR and that's the major achievement that is for the business. And what it brings to the business in terms of freeing up bandwidth in R&D, in production engineering and, of course, our compliance department and sort of potential cost opportunity or cost reduction opportunities going forward. But it also allows us to position ourselves now as a first-class medical device company that have a cheap MDR. And so when the deadline comes in 2028, we will be very well positioned as companies will be dropping away because they haven't managed to achieve that in time. We put in place a very stringent cost reduction plan in 2024. And as Brent mentioned, we managed that very well during 2025 as well to make sure that we didn't just return cost to the business, and we've seen some positive impacts as we look forward. Sustainability remains a key selling point for us. And we see that this gives us opportunities in a number of key markets. As I said, the U.K., Europe and Japan. We're working with in Canada as well where it has gained some traction. And that gives us a unique selling point against major competitors. So sustainability is a key driver for us as we move forward. And I think now that we have a strong platform for the business to move forward. And we are sort of -- we're confident we're in a position to deliver longer-term sustainable growth. And that, as we move forward with new products, with cost down projects, the business will be well placed to improve margins and to start growing revenue as well. So I think as I said, the company is well placed now to take advantage of all the changes that we've made within the business. So that concludes our presentation and over to questions.

[Operator Instructions] And [ Paul ], if I may now hand back to you to chair the Q&A, and I'll pick up from you at the end.

Thank you very much. [indiscernible] we've got a few questions from investors. One is regarding sales in the U.S. European sales grew strongly. But in the U.S., it remains constrained. What steps have been taken to mitigate tariff impacts and unblock new U.S. distribution channels.

Yes. It's a really good question, and it's one that the sales and marketing team, we look at every day. The tariffs are obviously not within our control. And it doesn't look likely that the U.S. are going to reduce those tariffs going forward. As I've mentioned, it's -- we're being penalized because American company importing to the U.K. are not impacted by the tariffs. So what are we doing to mitigate that? So we're working very closely with our distributor in the U.S. at finding pricing solutions in return for volume discounts. We are looking at different routes to market and whether that be through utilizing some national companies that we currently work with on other projects or whether it's finding a network of independent distributors. The challenge for us there is that the cost and the time that it takes to pull those together is very significant. And so as a small company, we've been focusing on markets, which we can develop much quicker. Europe being one of those. And of course, time to Europe is significantly less than U.S. But we keep exploring options, and we're certainly exploring every option that we've got, whether that's placing someone in the U.S., although that has an extreme cost, working with national companies or looking at independent distributors, but it's something that we are working on.

And in terms of new products, 1 more question from the same investor is how significant is the upcoming launch of LogiTube Lux and the expanded YelloPort Elite range when it comes to revenue growth and margins in 2026.

So I think the expanded YelloPort range that's been with us through 2025, and it's more to allow us to access sort of more specialty. So if you take the cutting shielded trocar, that's something which gynecology are particularly keen on, and the Elite XL is for bariatric surgery. So what it does is that within an account, it allows you to sell more products across the board rather than focusing on the elective surgeries of gall bladders and hernias and things like that. So it gives us greater opportunity when we're in account to expand our input into that account, if you like. The LogiTube [ Lux ] is an interesting product for us. So there are some markets where we've struggled to get the standard LogiTube into because of the certain requirement to have better visualization of where the tube is placed. The U.S. is a particular one there. And that's coming back to the first question, that's where we think that we may be able to encourage interest from independent distributors to come onboard and pick up the whole portfolio. So Obviously, they will add revenue growth to the business. But I think our real opportunity from around margin or the cost [ down ] projects that we are running through our R&D team. And the first of those is introduced or the first 2 of those will be introduced in the second half of the year. And they provide us some real opportunity through our higher-volume consumable products to make a much better margin than we currently have.

There's a question regarding M&A. How much do you see M&A playing a role in accelerating your international expansion, maybe in U.S. or APACs?

So M&A is always something that we have an eye on and looking at opportunities to grow the business through M&A activity. I think sort of certainly 2024 and 2025 have been about consolidating the improvements we've made to the business. And sort of driving cost out of the business to position us in a much better place. I think M&A activity today is probably something that we don't have the bandwidth to focus on. But going forward, as the company position improves, then that's something that we would pick up. In terms of using it for geographical footprint expansion, I think it's a eminently something to do at some point in the future. And if we're looking to put some -- a business or manpower into the U.S. sort of maybe some M&A activity or some joint venture activity or something like that would be an interesting proposition. But we don't have those significant plans from M&A.

Just on the Board changes. I know you've talked about this already on the slide, but one of the investors have just asked. Is there any further comment you can give regarding the Board appointments this morning.

I guess, in terms of where we are with the Board now. I mean, obviously, Jon and Keyvan has stepped out from the Board and sort of personally, I would like to thank them for all of their input over the last 2 years. They contributed significantly for the business. But I think where we are now, having Roy as Chairman and having someone with his experience in companies of similar size to Surgical Innovations, I think, is critical for us and will help us create value for shareholders. Andy is obviously, as I said earlier, has worked very closely with Roy, so there's a good partnership there. I know Roy from -- for a significant amount of time. So that's a good partner, too. And I think sort of Duncan coming on board as well will help provide focus to driving the business forward.

There was a question which you won't be able to ask and answer, I'm afraid. But there is a question regarding the group's medium-term target for revenue growth and EBITDA margin. You're not providing that guidance externally. But I just thought rather not to answer it, I can at least let investors know that the market forecast for next year for revenues to grow to GBP 12.4 million, for an adjusted EBITDA of GBP 0.5 million but apologies there are some [indiscernible] that can't be answered unfortunately. The last question we have, though, is, again, you talked about this already throughout your presentation. that again ask that question about sustainability being differentiated and how you're positioning yourself against large medical devices that you've obviously talked about the financial and environmental calculator. So is there anything else you can add?

No, I mean I -- for us, that is the way that we differentiate ourselves from the Medtronics, J&J and the Applied Medical. It is a key driver of our business in -- I'm going to say, the more sophisticated market. But certainly, in the U.K. and Europe, in Japan. And the tools that we've pulled together have have been built up over a number of years, assessing how we can drive that messaging through and sort of a lot of companies come in with greenwashing initiatives that they quickly found out where by being able to actually demonstrate the reduction in CO2, reduction in our plastic waste is a real key driver for us. And when we -- it can be simple things. The calculator is a great thing. When we go on an exhibition stand, we have 2 of the yellow bins that they have in an operating theater. And 1 of them shows the amount of waste from -- on a typical gall bladder operation. And the amount of waste you have from a SI Branded product compared to J&J, Applied Medical or whatever. And it's a stark contrast and a very visual message. So we continue to develop that strategy for developing the message and promoting it to the marketplace. And the good thing is that we're seeing a lot of health care providers now looking to -- in fact, they're targeted by their governments to reduce plastic waste and CO2. And we're providing them with a solution to that.

That's great. Thank you very much indeed for addressing all those questions from investors today. And of course, the company can review your questions submitted today, and we'll publish those responses on the Investor Meet Company platform. But David, before I redirect investors to provide with their feedback, which is perfectly important to the company. Could I please just ask you for a few closing comments to wrap up?

Thanks very much. Yes, I think as both Brent and I alluded to throughout the presentation, what we've established now is a strong platform for the business to move forward. The MDR gives us a bit more bandwidth to focus on projects that will drive cost initiatives through the business. And we are now well positioned that -- as MDR deadline comes closer and companies drop away. As a group, we are well positioned to be able to pick up just like in the marketplace and to drive our sustainability messaging through the global markets we're focusing on. So finally, just thank you very much, everybody, for joining the presentation. And thank you for your questions. All good questions.

David, Brent. Thank you once again for updating investors today. Can I please ask investors not to close the session today as you'll now be automatically redirected to provide the feedback in order that the Board can better understand your views and expectations. This will only take a few moments to complete and I'm sure will be clearly valued by the company. On behalf of the management team of Surgical Innovations Group plc. I would like to thank you for attending today's presentation, and good afternoon to you all.

Thank you.