Telkom SA SOC Ltd (TKG) Earnings Call Transcript & Summary

Good day, ladies and gentlemen, and welcome to the Telkom SA Limited annual Results Analysts Conference. [Operator Instructions] Also note that this event is being recorded. I would now like to turn the conference over to Mr. Sipho Maseko. Please go ahead, sir.

Thank you very much, Chris, and welcome to everybody. Good afternoon. And to those that are in the U.S., good morning. With me here, I have our group CFO, Dirk Reyneke; and the Investor Relations team. I would then want to start by unpacking our annual results performance in the following manner. I will start by unpacking the operating landscape, the key strategic themes underlying the performance and the impact on our businesses. Dirk will then unpack the financial year-end performance and how we are building financial resilience in this environment. I will then come back and provide feedback on the 3 value unlock initiatives. And then also conclude by discussing the outlook. I'm very pleased that we've completed the year with improved profitability, robust earnings, very strong liquidity and a strengthened balance sheet in a very, very challenging operating landscape. As you may well have known, the weak economy was complicated by the COVID-19 pandemic, which then fore impacted spending. The individual's disposable income was under pressure and corporates responded by also delaying and deferring their project spend, which impacted on some areas of our business. On the competitive environment side, the landscape in competition was intensified as promotions and pricing became a tool for some of our competitors to attract and retain customers. And also during the national state of disaster, the importance of being equipped to work and lend from home was elevated, leading to sector innovation. And then on the regulatory side, the delay in the spectrum optioning process due to the nonavailability for use of especially the low-band frequencies. And the process in totality to date has been very disappointing. We believe that the allocation needs to promote competition and not to enhance the current duopolistic structure and be informed by prevailing market conditions. And then on the business continuity side, we saw that our purpose as a company, seamlessly connecting South Africans to a better life. Came alive as telecoms was declared an essential service, enabling us to continue servicing our customers. Despite the fact that the physical world was shut down for most of the period in the last financial year, we could keep the digital world and enable that existence to continue and support our wide stakeholder base. Looking at the strategic themes that underlie the performance this year, when I joined Telkom back in 2013, we set out to transform the business from being a legacy fixed voice business, to a data-led fiber enabled provider of converged services. And the performance of this year under review demonstrates the success of our evolution from a business that was legacy voice dominated that is now reflected in the operating metrics and the financial results that we shared this morning. Our key objective was to derisk our fixed voice business, scale our mobile business and remunerate our asset base by maximizing returns on our capital investment. The successful strategic intent is visible now as more than 65% of group revenues today represent revenues from next-generation products and services. Our mobile business continues to go from strength to strength with another stellar performance in this year. The mobile subscribers now exceed 15 million, and we are now firmly the third largest operator in the country. We are also pleased with our progress of monetizing and remunerating our asset base. As we set out to convert the last mile connectivity underpinned by world-class fiber transport and access networks. Our homes passed has a pleasing connectivity rate now of 51%. When it comes to our backbone fiber network and mobile infrastructure, these provide a solid and scalable base to provide a converged fixed and mobile service offering as we build further as we build and further enhance our broadband leadership. We're the only ones who have an all IP network on the fixed side, and an all IP network on the mobile side. We witnessed also, at the same time, very good revenue growth in our Mast and Tower portfolio. Our successful transformation of the business with CapEx spend in the right areas. Has seen us deliver solid financial performance in a very challenging environment. I will share some highlights, and Dirk will unpack these later on. Our top line growth, very resilient in the face of the pandemic, improves profitability, underpinned by our growth in mobile business and our sustainable cost management efforts, robust earnings growth, double-digit growth in EPS and HEPS, strong cash generation, our cash consolidation efforts continue to deliver great benefits with free cash flow significantly improving from prior year. And we've derisked our balance sheet. Our underlying net debt-to-EBITDA has improved from prior year. Telkom business continued with its growth target. And this was -- and the pandemic was also very positive for our consumer business. The mobile business benefited by an ever-increasing demand for connectivity by consumers working and learning from home. We saw massive mobile data usage and a strong overall demand for mobile connectivity. Due to innovative high-speed broadband products at attractive price points, underpinned by the ongoing expansion of our 4G and 5G network. We saw 27.8% growth in the subscriber base to 15.3 million subscribers and with a blended ARPU increasing by 15% to 104 in our prepaid base is now in excess of ZAR 12 million, growing by 35% for the year, with prepaid ARPU increases of around 17.5%. The mobile business delivered year-to-date service revenue growth of 34.5%, an increase of over ZAR 4.3 billion year-on-year. Year-to-date, mobile EBITDA almost doubled growing by more than ZAR 2.7 billion to ZAR 5.6 billion, and our EBITDA margin expanded by almost 10 basis points to 27.9%. Data continues to deliver aggressive growth. We saw a 25.6% increase in the broadband base to 10.3 million subscribers, of which about 8.7 million are smartphone users. This growth emanates from an ever-increasing demand for broadband by consumers, working and learning from home, which actually got us to see about 53% growth in mobile broadband so huge revenue growth, and our revenue grew 41% to over ZAR 12 billion. DCS negatively impacted by COVID-19 and as they lock down took hold and the work-from-home response impacted fixed voice revenues from enterprise customers. It revenue also came under pressure as corporates deferred capital expenditure. And delayed projects given the increasing levels of uncertainty. The slight economic recovery seen in the latter part of the year resulted in some latent growth coming through. The BCX responds to a very challenging environment was cost containment and cash preservation. You can control if customers come through the door. However, what you have absolute control over, higher cost and how you manage your cash. Despite the decline in revenue, EBITDA is up 6.6%, largely driven by cost efficiencies. EBITDA margins are up from 13.2% to 15.7%. And that has caused an OpEx decline by 12.1% and 12.7%, respectively. BCX also concluded rather the Section 189 process in March 2021, resulting in the staff complement declining by about 6%. OpenServe, our investment in the network enabled us to carry a 28% increase in the fixed broadband traffic to about 1,428 petabytes. This will achieve even with an overall broadband access connections reduction of about 15.3%. As average monthly data usage per subscriber increased with 67% compared with the same period for the previous year. While, overall, we have seen a decline on the copper-based broadband ecosystem, data-led products such as Pure Connect or Naked DSL have shown the need for affordable data using all technologies is still very relevant. We continue to focus on connecting customers to our FTTH network and increase the number of homes connected with a connectivity rate of 51%. We've been working hard with our partners and have reduced our overall cost to connect FTTH by approximately 50%. Our drive to connect business customers to our Ethernet based network saw a 15% increase in connections. We also increased fiber to the base station by about 10%, which is a significant enabler for 5G and for fixed broadband traffic. However, once we saw an increased need for data in the period, fixed voice usage continued to decline. And thus, OpenServe performance remained under pressure. The pressure in the OpenServe performance trends witnessed in the first half of the year continued in the second half, with year-to-date revenue down at 10.9% to about $15.4 billion. As for Gyro, the Gyro operations adopted 2 and navigated the uncertainties and the realities of operating in the COVID-19 environment. They optimize the M&T portfolio, commercialize the property portfolio and also drove the process of enhancing our buildings operation efficiencies. Mast and Tower continue to grow by commercializing existing powers and executing on new build pipeline. The revenue increased by about 6.6% to $1.2 billion, supported by an 8% growth in the number of new leases. The environment has presented us with an opportunity to further rationalize on property operating costs and consolidate office space as employees are working from home. I will now hand over to Dirk, who will further unpack our numbers.

Thank you, Sipho, and good afternoon, everybody. Before I unpack the salient features of our financial results, it should be noted that the published prior period results we restated with the cost of third-party services in BCX of ZAR 68 million. The current results are, therefore, measured against the restated prior period numbers. Sipho has referred to the group financial highlights, just a little bit more detail in terms of resilient group revenues, underpinned by strong mobile revenue growth with a growth of 4%, EBITDA growth of 11.7% and EBITDA margin expansion of 2.8 percentage points, mostly supported by our ongoing focus on cost reduction, the search in headline earnings per share of 53.4%; strong cash generation, a positive reported free cash flow of ZAR 2.1 billion, which is 15.8% year-on-year improvement and then we've derisked the balance sheet, to strengthen balance sheet, reported net debt-to-EBITDA ratio post-IFRS 16 at 0.9x versus 1.3x in the previous financial year. If we unpack these highlights further, in terms of group revenue, supported by the growth in mobile, the overall top line demonstrated resilience in the face of the pandemic, as I said, up 4% to ZAR 43.2 billion. Our revenue streams were impacted in different ways by COVID-19 during the year. Whereas mobile service revenue grew 34.5%, underpinned by a surge in data traffic growth of 53.2% with subscriptions growing to over 15 million in the mobile space. This was largely due to an increase in people working from home, online schooling and ongoing investment in our mobile network. Similar to what we indicated in half 1, most enterprises remained under severe financial pressure as a result of the national lockdown. We saw enterprise customers reducing or deferring the spend on IT, resulting in a 12.7% drop in IT revenue. Migration to work from home impacted the enterprise fixed business, a 6 usage diverted to mobile connectivity, leading to a significant drop in fixed voice revenue. Note that our fixed voice revenue declined by 25% compared to 22% in the previous financial year. But it's important to note that legacy fixed voice revenue now only constitutes 15% of our total revenue base. Legacy fixed data to continue to decline as we migrate customers to the next generation network. As a result, we saw an increase of 30.8% in new fixed data revenue. On the real estate side, we continue to commercialize our current Mast and Tower portfolio in Gyro, and the Gyro revenue increased by 5.7% to ZAR 688 million despite the slowdown in permitting and construction reprocess due to the national lockdown. We refer to the solid EBITDA growth underpinned by sustainable cost management. EBITDA growth of 11.7% year-on-year to almost ZAR 12 billion with an EBITDA margin expansion of 2.8 percentage points to 27.7%. The cost management program served as a catalyst for falling annual direct cost to revenue ratio from 48.2% in the prior year to 39.1% in the current year. During the earlier part of the year, whilst in the group of the national lockdown, a mobile cost of assets and equipment slowed down. A purposeful relook at our distribution channel and partnerships further contributed to the direct cost optimization. Overall, the total cost to revenue ratio was optimized from 76.8% in the prior year to 73.8%, mainly due to benefits realizing from our restructuring program. Sustainable cost management and a significant improvement in mobile profitability contributing positively to the overall group. Earnings per share and headline earnings per share, driven by operational growth, headlines earnings per share increased 53.4% to ZAR 561.5 per share, while basic earnings per share increased 89.6% to ZAR 529.1 per share. The higher profit mostly attributable to the 11.7% increase in EBITDA, driven by growth in our mobile business and relentless focus on our sustainable cost management program. We refer to the sustained free cash flow generation despite the acceleration of CapEx for growth. Free cash flow improved by 15.7% to just over ZAR 2 billion in the prior year, ZAR 1.7 billion. This improvement was driven by the 20.9% growth in cash generated from operations, excluding the payment of the VSP work costs this was mostly driven by the mobile business and cash release initiatives of approximately ZAR 1.2 billion. A healthy balance sheet. We've derisked the balance sheet. A conservative funding approach enabled us to report a healthy cash balance in excess of ZAR 5 billion as of the end of March. We derisked the balance sheet by repaying net loans of ZAR 1.1 billion. This resulted in our reported net debt-to-EBITDA ratio improving to under 1x -- 0.9x from 1.3x in the prior year. That concludes the current year results. If we then look at what to expect in the midterm, we're giving a 3-year guidance. Given the uncertain economic environment, which we expect to continue in the next few years, we have a renewed focus on our sustainable financial framework. The sustainable framework focuses on growing revenues, specifically grow our new revenue streams, 3g, mobile and data broadband, improved profitability, underpinned by our sustainable cost management program contain OpEx below inflation and optimize our direct cost, free cash flow generation, we are intent on improving our free cash flow. Cash preservation will continue to be key as we navigate the unprecedented challenging environment. Thus, we will continue to drive working capital optimization and handset receivables financing. With regards to disciplined CapEx allocation, we will continue to drive maximum operational and capital productivity and ensure CapEx investment give us maximum return. Underpinned by our sustainable financial framework. Our near and medium-term guidance seeks to ensure we grow our new revenue streams, improve profitability and maximize our CapEx returns. We strongly believe that we are well positioned to deliver a solid performance over the next 3 years. And therefore, just in terms of quantitative numbers, the guidance in terms of revenue, mid- to high single-digit growth. EBITDA, we expect mid- to high single-digit growth. CapEx, we think, will stabilize and remain at the similar levels of currently ZAR 8 billion to ZAR 8.5 billion. And all that while we maintain the net to EBITDA ratio at below 1%. In conclusion, I think it's important following the suspension of the dividend policy for 3 years last year, management has reviewed its capital allocation framework, which seeks to maximize returns on capital investment maintain a healthy balance sheet and generate strong free cash flow. After 2 years of strong free cash flow generation, we believe that Telkom is generating sustainable free cash flow. We have sufficiently derisked the balance sheet, and we've got adequate capacity to fund the strategic capital investment program. Therefore, notwithstanding the uncertainty regarding spectrum and COVID, management believes that Telkom is in a position to reconsider the suspension of the dividend policy ahead of the time that was previously communicated. The dividend policy is in the process of being reviewed and a new dividend policy will be communicated on the release of the full year 2022 interim results in November '21. I will now hand back to Sipho to take you through the value unlock strategy and conclude with an update on our outlook. Thanks, Sipho.

Thank you very much, Dirk. Just moving on to the value unlock strategy. We remain very committed in the strategy of unlocking value from our portfolio businesses, is a very key component of our capital allocation framework. And will afford management flexibility to rebase the balance sheet amongst other things. Mast and Tower and Gyro, we successfully completed the market funding exercise the takeaway from the sounding exercise provided valuable insights, which are all currently being considered. The outcome will be in alignment to our group's strategic intention with structure and size important consideration. Including, amongst other things, whether it's public capital or private capital. OpenServe separation. We've made also further progress there in the separation of OpenServe as a stand-alone business. As a strong, scalable and future enabled unit, we believe it's true value lies in the unlocking of its potential and trading multiples. And then on the data center optimization, we've repositioned and consolidated our current data centers and real estate infrastructure, and this presents us with an operational and financial unlock option. As we take advantage of ever-increasing data consumption-driven by technology evolution and customer trends. We are in the early stages in this regard to data centers, and will revert with progress at the interim results. So looking forward, we really have created a solid business, a scalable asset base on which we intend capitalizing our fixed mobile and Mast and Tower businesses. Our significant fiber footprint provides us with a distinct advantage in a world of rapid technology automation and soaring data demand. We've also built a strong platform around our IT business. We've seen in the latter half of the year, some of the growth that is starting to come through at looking at the customer pipeline, it looks very, very strong, both committed and those that are about to commit. We have seen satisfactory returns on capital investments in these areas. And as such, we'll continue to create value with focused investment and resource allocation in the [indiscernible]. This together with the initiatives to a significant [indiscernible] business units and from balance sheet presents the flexibility for us to see various opportunities to grow our business into the future, especially as we enter this new decade of 2020. So I'll now hand back to Chris with the operator to answer questions. And Dirk and I will be available here. Thank you very much.

[Operator Instructions] First question is from Preshendran Odayar of Nedbank.

Let's try again. We can't hear Presh.

Preshendran, please check if you're line is muted, or if you could please reconnect. I'm going to move on to the next question in the meantime from Vikhyat Sharma of RMB Morgan Stanley.

Sipho, you've made it very clear that these next-generation revenue streams are 65% of your top line. I think there was a conjecture that you made, I think, probably that eventually, your operating profit will also reach an inflection point where these new generation revenue streams will start contributing a lot more. We are already seeing that growth in that mobile operating profit or EBITDA coming through. So where do you see this inflection point of where your new generation services will start contributing a lot more rather than your fixed margin declines?

[Operator Instructions] Vikhyat, maybe just repeat your question, please.

Yes, you've been very clear on next-generation products contributing 65% to your top line, right? I'm more interested in finding out the inflection point, which Sipho you had mentioned before, that eventually Telkom will reach, where your operating profit growth will start actually exceeding the decline in fixed and I think how far are we from there? I mean, is it in the next 2 years or 3 years? And I think second question, if I may. I think your mobile growth kind of slowing down, the CapEx is still remaining the same. I think one of the concerns would be everyone else is now becoming a little more competitive. Yes, there is a bit of a normalization that will happen. But are you still confident of that you will see this mobile growth rate kind of, let's call it, strong and stronger than the market?

Yes, Vikhyat, let me take the first one. I think in terms of revenue mix, we believe we've reached the inflection point with fixed legacy voice only being 15% of the revenue pool currently. We have -- if you look at the revenue growth, certainly, the growth in mobile and next-generation products have now exceeded the churn stroke loss in legacy voice and legacy data. So we believe we've reached that inflection point where the operational revenue will start growing faster than the loss as a result of churn in legacy business. In terms of CapEx expenditure versus Mobile, yes, we'll continue to invest in that space, the current ratio of 53% spend on mobile and 29% on broadband or fiber will probably normalize slightly and the 2 will move closer to each other. But we see ourselves continuing to invest on similar levels in absolute terms with mobile probably still being over -- or more than 50% of the total investment, if you combine it through. I think your third question related to the revenue growth in mobile. Yes. It's a question of mix. Where most of our competitors in the country, I think we still got 60%, 70% of their mobile revenue on fixed voice. We've got more than 65% of our mobile revenue is on data. We do think that the data market will still grow. We also think that our network is enabled to accommodate the growth and then certainly, if or when the auction, the spectrum auction happens, that will give us even more capacity to grow on the 4G and 5G space. So we think still a strong the trajectory on the mobile space on the back of data compared to the competitor's mix of mostly mobile voice. I hope that answers the questions, Vikhyat.

Sure. Just one small follow-up. You -- I mean, the revenue inflection point is very clear. When do you think the operating profit inflection point will be reached. As and when the decline in fixed will actually be ahead of, let's call it, the growth in next-generation services. I mean, is there a time frame that you can give out? Now? 2 years?

Yes. I think in terms of operating profit, that will probably depend on it's caused the contribution margin from the next-generation products. And there, we do finally on the mobile direct cost as well as the IT direct cost. In terms of the wholesale business, we don't see significant further efficiencies at that level. But we do think with the correct investment, the correct CapEx investment, we can certainly get further synergies and efficiencies on the mobile direct cost, specifically relating to roaming, where that is still a significant part and similarly, there are still pockets of direct costs in the BCX space relating to IT services where we think we can claw back on some costs. So yes. I must say, I'll have to look at the time line against that, I haven't necessarily projected that. But yes, we think it will depend on how soon we get the contribution margin up on both the mobile and the BCX space.

[Operator Instructions] The next question is from Preshendran Odayar of Nedbank.

Can you hear me?

Presh, we can hear you now.

Firstly, congratulations on the results. I've got 3 sets of questions, if I can. Can you tell us what is your network headroom or capacity that you have, particularly on your mobile network? And what impact would ICASA putting the temporary access to spectrum at the end of this month have on your guys' operations and ability to carry traffic. The second question is, I mean, I looked into your upgrades to your revenue guidance. And it looks good of a mid- to high single digits. But it seems that your FY '21 revenue growth was flat, it underpinned by what I could call lockdown in increases in data demand. I just wonder to know how are you going to achieve your mid- to high single-digit revenue growth targets for the group, as you lap the total related demand price that we've had over the last year, and then the last question is just more clarification on what could be your normalized sustainable free cash flow because -- just correct me if I'm wrong here, but your ZAR 2 billion free cash flow that you reported for the full year is after your VSP cost. So if I adjust that out, just your free cash flow generation in the second half is about ZAR 2 billion. So I'm just -- I'm doing a matchbox calculation of about ZAR 4 billion of free cash flow. Is that a fair assumption? That's it for my side.

Thanks very much, Presh. So I'll deal with some of these questions and Dirk will build. So where is the growth coming from, which was your second question, we see -- we're starting to see growth coming from OpenServe, which has been very, very impressive, actually, especially in the second half of the year. And we see that growth holding on. So that traction in terms of all of the CapEx we've been putting with regards to fiberizing as much of the market as possible. That's beginning to come through, and we saw green shoots of that in the second half. And we're also seeing it in the fiber to the home side as well. That's beginning to really generate very, very decent revenues. The IT side as well, as I've indicated, the demand for IT solutions. We sort of started to see that coming across as well as companies having been traumatized by essentially what coded demonstrated as lacking, are looking to build cloud services, really looking to get to strengthen their IT platforms. And then on the mobile side, we continue to see data driving the growth. And that point is a very key point for us because in absolute terms, the growth that we are attracting on the mobile side is testament to the investment strategy and to the infrastructure that we have deployed. And we are also driving the reduction of our direct costs, where we are spending the CapEx and especially where we're seeing good traffic growth so that we can reduce our roaming costs. So that we kind of see that as continuing. And so far as the capacity that is there. So remember, we built what you'd call an optical network. It's an all IP network. So for us to get more capacity. It's investment in software capability. So through a software upgrade, which costs far less than what it would cost you to actually lay fiber are new, the cost of growth comes in at a far lower price point once you've built the optical transport network. So we're able to expand that capacity. It's like almost a concertina press. So when there's a lot more traffic, you can expand the capacity. And when that traffic reduces, you can reduce the capacity. So that's kind of how we see it. What is the risk of ICASA withdrawing the spectrum? I mean, it would be probably the final nail in the coffin in terms of just recklessness by ICASA. Why? Because this spectrum is not just there for us to use commercially. Actually, the spectrum is there for us to support government efforts. We've connected schools, we've connected universities we've connected -- we've got about 1,000 IP addresses, just of different government departments. In fact, actually, if they leave the network, that will give us sufficient capacity to be able to carry what you would call commercial traffic if they withdraw that. So it would be the penultimate recklessness and erraticness by the regulator. And then your last question was cash -- free cash flow, Dirk?

Yes. So Presh, I think in terms of free cash flow, you are correct to say that the ZAR 2 billion free cash flow is after the BASP cash of ZAR 1.3 billion, ZAR 1.4 billion. So I think many people will just add the 2 together and say a sustainable free cash flow is just over ZAR 3.5 billion -- around about ZAR 3.5 billion. But included in the current year, I think which counters that is also the cash release initiatives, of which we had ZAR 1.2 billion. That's the tail end of the vendor financing initiative where we moved vendors from a 30-day payment term to a 90-day payment terms. And further, we also had just over ZAR 400 million cash in from the device financing initiatives that we've previously communicated. I think on the back of the cigarette -- cigarette box calculation, if you then look at the guidance, if you take an EBITDA at a 6% growth, CapEx of ZAR 8 billion to ZAR 8.5 billion. If you deduct finance charges and tax, you will probably get back to ZAR 2 billion to ZAR 2.6 billion. You can then take the IFRS 16 adjustment offset by other noncash flow items in the movement of working. So we believe a sustainable free cash flow is closer to ZAR 2 billion to ZAR 2.5 billion, Presh.

[Operator Instructions] So we have no further questions in the queue. Do you have any closing comments?

Yes. So thank you very much. I mean, my reflection here is that we now have really built a solid foundation. We have a very, very robust and strong financial framework. We've got a very strong balance sheet. We're generating jolly good cash. We have very clear strategic goals that each of these businesses are focused on. Our value unlock path is very, very clear. And we are committed to it. The regulatory environment, we think it will settle down. And you know what, everybody will get rational. We did not start by just rushing to court. In fact, we ended there. We've always wanted to find a way in which all matters related to spectrum. And other regulatory issues are addressed in a way that is fair, very transparent, and that enables competition. We've gotten this far on our own steam. And we truly believe that no one's shareholders have a better light than another shareholders. So it would not have made sense for us to go to an auction, by spectrum that we can't commercially use. When others -- they would get spectrum that they can commercially use and thus strengthen the duopoly. We can never rely on government meeting that deadline on the digital migration. Previously, they've missed all of the digital migration deadlines that they have set for themselves. And we actually now think everybody is becoming rational. It is only last week that the free state was switched off, and they've migrated to -- the digital migration has happened. And so far as the actual outlook for the businesses is concerned, I could not have been more confident. I think the big challenges around cost, the west is behind us. We now have all an end that we need to tie up, especially on the people side. We continue to focus, yes, on those costs that hide in cost of sales, open up that line, look at what's inside there so that we can be as efficient as possible. And there's a lot of discipline in how we allocate resources, whether it's CapEx or OpEx, and I think the organizational muscle is getting better and better in that regard. We have been able to reach very, very interesting levels of capital productivity, we've reduced our cost to connect a home by at least 50%. That actually gives us tremendous flexibility in terms of the scale and the speed of the rollout. And we've seen a very, very elevated connection rate on the fiber side. And we think that our small and medium business will start to come through as well as we're looking for a different way in which we service that part of the market. The leadership team, as you may well know, very, very stable. Dirk came into the role and has helped me close out the year in the fourth quarter, and that went very, very well. But more importantly as well, set up the right plans for the next 3 to 5 years with very, very clear implementation plans, and we forecast the team on how we execute. So with all of that, I would really want to thank you, and then we'll be seeing quite a lot of shareholders and analysts in the next couple of days. And if you have any further questions, please do send an e-mail to the Investor Relations team. Many thanks, and have a good day.

Thank you very much, sir. Ladies and gentlemen, that concludes this event, and you may now disconnect.