Winpak Ltd. (WPK) Earnings Call Transcript & Summary

Good afternoon, ladies and gentlemen. It's my pleasure to welcome you to Winpak's Annual Meeting of Shareholders. My name is Martti Aarnio-Wihuri, Vice Chairman of the Board; and your Chairman for today's meeting. I'd like to begin by introducing the head table. Antti Aarnio-Wihuri, Chairman of the Board; Olivier Muggli, President and CEO, and Mandy Meyer, Board Secretary. As this meeting is being held in person and via live webcast, we think it's necessarily set out a few rules for the orderly conduct of the meeting. Questions in respect of a motion can be asked by any registered shareholders or duly appointed proxy holder in the room by raising your hand and submitted online by using the Q&A icon on the right of your screen. Please note, there may be a slight delay in the publication of the communications received online. Questions will appear shortly after they are submitted. General questions will only be addressed during the question-and-answer period at the end of the meeting. Questions regarding procedural matters or directly related to the motions received before the meeting will be addressed during the meeting. For the meeting today, voting on all matters will be conducted by paper ballot in the room or by electronic ballot via the webcast. Registered shareholders and duly appointed proxy holders who have not yet voted will be asked to vote on each business item after it has been presented. For the shareholders in the room, please complete your paper ballots. And for those online, register your votes by selecting the for or against buttons next to the name, Reach proposed Director, for or withhold next to the resolution concerning the appointment of KPMG LLP as the company's auditor and for or against for the resolution to accept the company's approach to executive compensation. For shareholders in the room, please raise your hand once your paper ballot is complete. And Elissa Rojo will be by to collect them. Once the electronic balloting closes, the voting page will disappear and your votes will be automatically submitted. The polls will be opened until all motions for matters to be considered at the meeting have been made and seconded. We will now proceed with the formal portion of today's meeting. To expedite the formal part of the meeting, I will move and second all motions. I now ask that the annual meeting of shareholders of the company come to order. I appoint Mandy Meyer, as Secretary of the meeting; and Scott Taylor and Matthew Wilms as online moderators for the webcast. For today's meeting, I appoint Elissa Rojo, Computershare Investor Services through its representatives as scrutineer to compute the votes of any polls taken at this meeting and to report thereon to the Chairman. I will now take a moment to ask that the balloting be opened online to registered shareholders and duly appointed property holders. The online polls are now open. At this point, our registered shareholders and duly appointed proxy holders who have properly logged in with their control numbers and wish to vote will be able to see on the screen all motions being brought forth at this meeting. The purposes of today's meeting are set out in the notice of Annual Meeting of shareholders of the company dated February 23, 2024. The notice of the meeting, the management proxy circular and the form of proxy were mailed to shareholders on March 26, 2024. The audited financial -- sorry, the audited consolidated financial statements of the company for the fiscal period ended December 31, 2023, and related management discussion and analysis to shareholders of the company who requested such statements and related management discussion and analysis were mailed on March 4, 2024. A copy of confirmation of mailing is being filed with the minutes of this meeting. Copies of the management proxy circular and other meeting materials are available under the company's profile on the SEDAR+ website as well as on the Winpak website. In addition, for attendees in the room, hard copies are available at the registration table. I've been advised by Elissa Rojo, today's scrutineer, that there are voting shares representing more than 51% of all outstanding voting shares of the company present. And therefore, a quorum of shareholders of the company is present, and the meeting is properly called and duly constituted for the transaction of business. I received the scrutineer's report, and I direct that their formal report be annexed to the minutes of meeting as a schedule. I would ask that the scrutineer compile their report regarding the results of today's voting on all business matters. As the first item of business on the agenda for today's meeting, I now present to the meeting the audited financial statements of the company as of and for the fiscal period that ended December 31, 2023, together with the auditor's report to the shareholders thereon. Copies of such documents were mailed to shareholders who requested such statements, and it is not proposed to read them to the meeting. The next order of business is the election of directors. The bylaws of the company provide that at each annual meeting. The shareholders shall elect directors to hold office until the next annual meeting or until their successors are elected or appointed. At this meeting, there are seven directors to be elected. Antti I. Aarnio-Wihuri, Martti H Aarnio-Wihuri, Rakel J. Aarnio-Wihuri, Bruce J. Berry, Kenneth P. Kuchma, Dayna Spiring and [ Minna Urianmaki ] have been nominated as Directors for the ensuing year or until their successors are elected or appointed. Each of the nominated individuals has confirmed that they are prepared to serve as Director. At this time, I ask if there are any questions or discussions on this motion in the room. Ms. Secretary, have any questions being received on this motion through the online webcast?

Mr. Chairman, no questions have been received.

Thank you. If there are no questions, I move and second the motion that the nominations be closed and the directors elected for the ensuing year or until their successors are elected or appointed. The next item of business is the appointment of the company's auditor for the ensuing year. The Board of Directors approved the appointment of KPMG LLP, subject to shareholder approval. I move and second that KPMG LLP is appointed as auditor of the company until the next Annual Meeting of Shareholders. You've heard the motion. Is there any discussion on this matter? The last item of business is to consider and approve an advisory resolution to accept the company's approach to executive compensation. Before I bring forward a motion on the resolution, I'd like to say a few words. Winpak continues to be committed to enhancing its corporate governance practices. One of the many ways to satisfy that objective is to seek input from our shareholders on important issues. One of those issues is executive compensation, and we are asking you today whether you are satisfied by our current approach. Although the resolution, if passed, is advisory only, it will provide the Board with valuable feedback in terms of moving forward on this particularly important subject. If there are no concerns with the company's approach to executive compensation, I move and second the advisory resolution to accept the company's approach to executive compensation. Are there any questions on this motion in the room? Ms. Secretary have any questions been received on this motion through the online webcast?

No questions have been received online, Mr. Chairman.

Thank you. As all motions for matters to be considered during the meeting have been made and seconded. We will now give registered shareholders and duly appointed proxy holders approximately 15 more seconds to complete the electronic ballots. [Voting]

The voting page will disappear, and your votes will automatically be submitted. Anyone in the room with ballots that have not yet been collected, please raise your hand, and Elissa will be by to collect them. Based on early voting results or resolutions have passed. A report with the results will be posted on our website and SEDAR+ under the company profile in due course. The formal items of business as set out in the notice of the meeting have now been dealt with. I would like to call on our President and CEO, Olivier Muggli, to provide us with information about your company and comment on the year that's just been completed. Mr. Muggli, please.

Waiting for the slides. Okay. I also would like to welcome you to the Winpak's 38th Annual Shareholders Meeting. Our first in person and also live stream. So today, I will review our 2023 results and the company's performance during the first quarter of 2024. I will also give you some insights into Winpak's future. Winpak's growth in 2022 was a record high. And in 2023, Q1 started on a high note, yet we recognize that some of these growth contributed to the accumulation of inventory at some clients as a remnant of the logistic and supply chain uncertainties that plague 2022. Starting Q2 of 2023, we observed significant destocking as activities more or less resumed to pre-pandemic levels. and as lead times for raw materials and supplies came back to more normal levels. The combination of destocking, increased costs, significant inflation, depressing disposable income, absence of market volume dynamic, negative volume growth in grocery markets have impacted our volumes as well. Input costs have softened and stabilized through 2023 and mostly because of low volumes throughout the industry, providing relief from the relentless pressure to increase prices and have allowed to improve margin. Certain statements made here contain forward-looking statements. And while these represent the company's expectations and beliefs, they contain risks and assumptions and cautions should hence prevail when relying upon such statements. Let's review the 2023 results. We're coming out of 2 successive years of double-digit growth in our modified atmosphere and vacuum packaging, and a more modest 4% growth in general and flexibles and the start of 2023 was strong. Eventually, starting in Q2, we saw a gradual volume contraction slightly below 3% due to destocking, as mentioned earlier, and then high inflation affecting purchasing power, revenues receded by 3.4% from the lower volume I just mentioned and lower prices due to lower input costs. It is also to be noted that the more commoditized part of our product portfolio was affected by volume contractions. As a counter to the soft volume trend, significant volume growth was generated by the specialized spending group focusing on the health care packaging space. The packaging machinery volumes were surprisingly strong in 2023. It is also worth noting that because of their outstanding performances, our star products in modified atmosphere and vacuum packaging remains strong, and we are anxiously awaiting the additional capacity from the Winnipeg expansion that I will outline later. The selling price mix was unfavorable -- was unfavorably impacted by indexing lower input cost to client and foreign exchange rate had a small positive impact on revenue. Geographically, 79% of Winpak's revenue is realized in the United States, while 40% are coming from Canada. Export sales outside of Canada and the U.S. represent 7% of the total volume. Winpak's current structure is made up of three distinct product groups. Three flexible packaging plants in Winnipeg, one in the Atlanta region and one in Carretera, Mexico and the specialty printing packaging site acquired in 2019, account for 53% of the corporate sales. Region and leads facilities located in Toronto, Montreal, Peak in Illinois, two in the Chicago area and in Mexico contributed to 44% of total sales. The newly relocated packaging machinery business based in the Los Angeles area is responsible for 3%. Winpak now occupies 2.44 million square feet of production space and employs over 2,700 people. Net income attributable to equity holders of the company eclipsed last year's reaching $148.1 million, an increase of 15.3%. This new all-time high record stems from strong gross margin and operational cost improvement as well as ForEx. Despite lower volumes in the commoditized flexibles and rigid packaging markets due to overstocking, overall, the high-performance, more sophisticated product range performed well, so much so that margin could be improved in 2023, that, of course, by softened input costs. On a per share basis, the year-over-year impact was a positive $0.31 or 15.7%. Overall, despite a slight volume construction -- contraction, sorry, I mean, construction here in Winnipeg, I guess, the very strong margin recovery, favorable operational cost and foreign exchange propelled net earning per share to record high levels. Income tax rate at a more less $0.015 positive impact. EBITDA and EBITDA margin evolution. In 2023, the company's EBITDA reached a record high of $228.5 million, an increase of 3.8% or the equivalent of 20% of revenue. This represents a compared annual growth rate of 5.7% since 2013. So the recap for the results in 2023 before moving into '24. Revenue decreased by 3.4% to $1.141 million, driven by destocking but also slowing consumption from high inflation, high interest rates, resulting in lower disposable income. For years, in fact, the grocery food market has been flat at best and receded volume-wise last year. EBITDA was positively affected by 3.9%, and mostly driven by margin recovery from soft input cost, albeit passed through to some degree, while operational expenses were positively affected by lower transportation and distribution costs as well as foreign exchange gains. We reached again an EBITDA to sales ratio of 20%. Let's now review the first quarter of 2024. Revenue in the first quarter of 2024 receded by 9.1% compared to the same period of '23, mostly due to lower volumes and lower input costs passed through to clients and price pressure from large clients themselves terribly hurt financially by low consumption. However, on a volume basis, once adjusted for 1 less week in the first quarter of 2024 compared to 2023, Q1 volumes were essentially at the same level as the strong Q1 2023 with volume growth of 2% in flexibles and again, double-digit growth in the specialty planning business. As a result, the lower revenue passed through to clients. The first quarter earnings we treated 8.3% to $0.55 per share compared to the same period last year. Despite the effect of lower sales volume, higher costs, notably for the new ERP project, gross profit margin improved by 8% in the first quarter, surpassing the 30% mark. The 8.3% EPS decrease can be categorized in negative volume impact, as I mentioned earlier, higher operational costs from the ERP project and higher personnel costs, while gross margin improved significantly from soft or declining input costs. Foreign exchange had a slightly negative effect as well. Raw material prices and the Canadian to U.S. exchange rate will continue to have an impact on Winpak's overall performance. This graph highlights the price evolution of Winpak's eight most important raw materials and the U.S. dollar between 2017 and the first quarter of 2024. The weak Canadian dollar and lower raw material prices are good for Winpak's bottom line. 2023 started with high input costs gradually declining through the course of the year. The Canadian dollar, on the other hand, kept declining since its peak in 2021, plateauing at a lower level in 2023. And in both cases, we saw a pickup in the first quarter of 2024. While ForEx is highly unpredictable, Winpak expects raw materials costs to remain more or less flat from now during the course of 2024, pending remarkable weather events, for instance, such as a hurricane season or other force majeure events that may affect resin prices. But of course, all of that is highly unpredictable. Let's review capital projects. Over the past decade, Winpak invested USD 572 million in capital project, on average, 6.2% of revenue, which is a rather unique situation in our industry. Going forward, we expect our investments to increase significantly and still above the $100 million mark for the next 2 years. So let's review some of these current capital projects. But first, before we do that, let's examine the rationale for what we do and the current and what's clearly outlining our future investments. Our business is to extend the shelf life of food and health care products with the minimum environmental footprint and as such, to provide the best packaging solutions for people and planet. We are producing primary packaging and for the mass majority in high barrier. In other words, providing high level of protection to packaged goods. We're striving to provide and further develop the highest level in attributes of protection, information, logistics, processing, while being the most affordable packaging products. Today, there isn't a more optimized type packaging, not from a cost standpoint and more importantly, not from a sustainability or environmental footprint. Having said that, our clients and their brands are in the crosshairs of public opinion and being responsible for the damage to the environment, the pollution of land and oceans. They, in turn, seek new and improved solutions to reduce their impact and eventually our overall impact on the environment and eventually achieve carbon neutrality or the announced environmental targets. This is a fantastic opportunity for Winpak. With our advanced production infrastructure, second to none investments in Material Sciences, we are uniquely positioned to lead the way sustainable product introductions. We have been filing with the carbon disclosure protocol since 2017 and have gradually been able to improve our score despite CDP increasing the threshold level year-over-year. In 2023, we reached the score of A-, the same as the year before, but again, at the higher threshold levels. The average for plastics industry is a C and our A- score places us worldwide in the top 18% from thousands of companies finding with CDP. For 2023, we had our Scope 1 and 2 audited by an independent party, and we will do the same for our next filing for Scope 3, and this is one of the prerequisite to be able to reach a higher score within CDP. In addition, we have filed our application, which has been approved for the so-called science-based target initiative, or SBTi, which intends to put measures in place to reduce carbon emission to meet the Paris COP agreement, keeping global warming to less than 1.5 degree celsus by 2030 and achieving carbon neutrality by 2050. So what are we doing to reduce our carbon intensity. Winpak has introduced a record number of standard-setting products, all recycled ready and recyclable. And as mentioned earlier, the broader Winpak has approved investments to produce these advanced materials in the most cost-effective manner. We're focusing on the following areas: cellular economy with the use of post-consumer recycled material, PCR, recyclable solution, recycle-ready solutions. These are the ones that have all the mono-material attributes to be recyclable but may not be recycled everywhere because of missing infrastructure and also on renewable content, such as paper, starch, PHAs and PHBs. As an example of such Packaging Solutions made our renewable materials, we've introduced EcoWrap, a paper-based program for food and nonfood products that is 100% curbside recyclable with a paper waste stream. And by the way, a lot of these solutions are exposed at the back of the room for after the meeting, and you will be able to witness these and look at them. In general, of course, we continue to put a lot of effort even with sustainable solutions to downgauge source reduce our products. It's good for cost. And of course, it's good for carbon footprint as well. So that sounds like a lot of R&D and Material Sciences, and it's true, but it also means significant equipment investments and also some site expansions. In the existing footprint in the green box here in Winnipeg, that's the current site here. We just added a triplex laminator, a new Flexo press, which is now commercial, and we're adding another one this summer. The construction of the addition of 200,000 -- 210,000, excuse me, square foot, that's the red box in the picture, is well underway and will provide a home for a fifth [ cast ] extrusion line for reform products. and a brand-new R&D laboratory and client demonstration center. These investments amount to over USD 100 million over this and next year. Beyond the expansion is also [ earmark ] to house our first ECOForm line, which will be a large-scale thermoplastic starch line for high-barrier semi-rigid packaging from renewable resources expected to be carbon neutral. The construction of the 210,000 square foot expansion is well underway with the sales structure being erected as we speak. The time line is managed well and the climate, weather in the winter allowed to catch up on some early delays from local permit authority -- a local permit delivery from authorities. And the project is on time and on cost and the expectation is to have the first cost line. We called it multi-barrier 5 start-up mid-2025. This line will be another record output line in North America and incorporate new to Winpak and new to the industry technology focused on high performance, high [ bio-films ] for modified atmosphere vacuum packaging, with the latest in attributes for recyclability, Zero waste and high performance on our customers' line and the best performance to cost ratio. Needless to say that we're very excited by the new technology, and we'll have a test bench with a reengineered smaller scale line incorporating this new technology later this year. This is the fourth extrusion coating line that is currently being assembled within the existing site. It is another line of superlatives incorporating learnings from the 2021 installed latest line but with higher speed, higher widths and higher output. The line of WinCore products is one where Winpak stands out from a performance to cost standpoint, including for the new recycled ready versions. The new flexographic printing press on the left is now commercial and another one, like the one on the right, will be taken commercial by this summer. Winpak division in Winnipeg, together with Winpak Films in Georgia, other location focusing on recycle-ready flexible, high barrier solutions, whether for thermoformable modified atmosphere packaging, pouch-type applications of all kinds, whether with zippers or with sppout and caps. Most of these solutions have already obtained the how to recycle approval, and there's more to come. As you can imagine, such as, for instance, the new ReTop structure, which will be based on the new extrusion technology. And we're very excited about having that new capability. We hope to be able to commercialize it before the end of the year with, as I mentioned, the newly reengineered line and later on with the new large multi-barrier pipeline in the new expansion. EcoForm is another significant game changer with the introduction of thermoplastic starch-based high-barrier semi-rigid containers. This renewable solution is based upon starch that is a byproduct of potato processing or from the extraction of protein from peas to produce vegan meat replacement, both of which are produced and available here in Manitoba, and will be processed into high-barrier packaging material with the use of hydro energy, in other words, clean energy. We expect this packaging solution to be carbon neutral, home compostable or biodegradable. We expect the second line in the new expansion. So one is this multi-barrier 5. We expect this second line in the expansion to be our first high-volume EcoForm production line, which will be another landmark in the industry. Also in Winnipeg, in the blue box on the top right is the site of the biaxially oriented polyamide line known as BOPA 3 installation part of American Biaxis. This is the largest line of its kind and the most sophisticated technologically speaking, and we're nearing its commercialization. Applications range today from event balloons to high-barrier packaging for highly perishable foods, pharmaceutical products, aseptic or retort pouches, where the puncture and heat resistance of polyamide are irreplaceable. Very thin and co-extruded structures are intended to help achieve high-performance packaging yet maintain recyclability. We are also expecting the new generation of Opafin to find applications in new high-tech devices such as lithium polymer battery and some hard-to-hold pharmaceutical products. At Winpak Lane, our machinery business division, the business is growing rapidly and a new larger facility for design and assembly of equipment was needed. And of course, keeping in mind that Winpak Lane is also a conduit for our system sales approach of machinery and consumable sales. It's been a very exciting time at Winpak Lane, not only since the new manufacturing site has vastly improved lead time and cut dramatically lead time, excuse me, for all product platforms. But Winpak Lane has also reengineered all three of its major platforms towards higher performance, higher output and taking costs out at the same time. The new Titan cup filling line with up to 1,200 cups per minute is a new benchmark in the industry. The W-18 Sachet Workhorse has been redesigned in the Phoenix generation, again, high output, later say electronics and HMI improvements. And the same can be said for the larger pouch size of the equipment W25 line into the so-called Genesis new models. Expansion ambitions at Winpak Heat Seal. Winpak Heat Seal is envisioning expanding the site with a 90,000 square foot expansion to house another high-performance converting line, new standard setting equipment to expand its portfolio of products and at the same time, take cost out. One of the strategic developments at Winpak Heat Seal is expanding our health care market. And for that, we need additional capacity to produce the base materials, which in part are then printed with the WINSPEED service model of Winpak Control Group, our specialty printing unit. Either high-tech converting developments into lithium battery pouch laminate for which key components such as the BOPA [ film ] mentioned earlier, can be provided by American Biaxis, in Winnipeg. The specialized sealants from either Winpak Division in Winnipeg or Winpak Film in Georgia. So this is, again, another unique material science capability of Winpak. Furthermore, Winpak Heal Seal is pioneering a new generation of recycle-ready mono-material die-cut lidding that enabled the cap and lid to be recycled together. And ways to keep the two, cap and lid, together and avoid that the lead gets lost in material recovery facilities, the so-called MERS, both polypropylene and high-density polyethylene solutions are being offered. I mentioned earlier a couple of times the fast pay double-digit volume growth at Winpak Control Group, our specialty printing unit, focusing on the health care market. As we need to expand the print capacity of this business to onboard the many new business opportunities provided by the WINSPEED service model and by the unique print and converting abilities of control group, we were able to secure a larger site within a few miles from the current site, we will be able to access it by 2025. We're preparing an investment request for the Board for additional print capacity, and we'll use the opportunity granted by the new site to optimize production flow and lay out for higher productivity. Winpak Control Group specializes in quick turnaround, short run as well as on inserts outserts, health care printing as well as on nutraceuticals. The unique 100% inspection system capability and agility of the business offers a unique value proposition while getting the base material from the larger WINPAK production sites, whether from Montreal or from Winnipeg as a backwards integration. This is a top view of the 615,000 square feet Sauk Village in [ our ] site and the flagship of our Winpak portion packaging 3 sites. Besides producing a high range of so-called custom thermal forming packaging applications, ranging from hot beverages, high barrier snacks, retort human food, wet pet food and a wide variety of stock condiment, dessert, apple sauce, cups and MAPfresh modified atmosphere packaging metrics. We've gradually transformed our assets from processing polystyrene-based containers toward recyclable and polypropylene ones. And we took another major step forward with the last -- large polystyrene line that was dedicated to our beverage packaging, now being reengineered to produce recyclable thermoform polypropylene containers. In parallel, a new center for In-Mold label injection molding has been built. We have successfully introduced our first series of IML In-Mold label containers in the dairy market and are busy expanding towards another format to be commercialized before the year is over. Investment is creating a lot of new dynamic in the market, and we're working on securing additional significant pieces of business as we speak. Furthermore, we're also investing in injection molding for high barrier co-injected parts for a variety of new packaging concepts, which we'll see in the next slide. But we're also adding a new high output barrier sheet and in-line highly automated treatment place thermoforming line in our South Chicago Heights site. I only have a technical drawing at this point, so no picture yet, but for our next meeting, such additional capacity will be shown, and it's needed to continue expanding into our recyclable range of containers. Back to the new injection molding technology and back to new Winpak and new to the world packaging formats. FlexPod and SqueezPod of which the entire family is illustrated here, and you'll be able to see them at the back, which stem from the combination of rigid packaging attributes but made from flexible materials. That way, there is a significant source reduction of up to 65% from new and improved functionalities, all with the entirely recyclable materials. And because of their so-called rigid nature, they have a high likelihood of being identified as such and sorted for recycling at a material recovery facility. So these products respond to the highest demand from a recyclability standpoint, while at the same time, very significantly reducing the carbon footprint of the packaging solutions they replace. This is creating quite a stir and excitement with many existing but also entirely new customers of Winpak but also with our colleagues at Wipak for the European market, which we know is more advanced from a sustainability standpoint. We also have a FlexPod version that is entirely renewable and home compostable. Another game-changing new product to enhance our family of recyclable high barriers sppouted pouches is the introduction of our new spill resistant and high barrier sppout and cap. As an industry, we're putting tremendous efforts in providing a pouch body with barrier attributes. But so far, we've accepted a sppout and cap without barrier. It is like putting a lot of effort in insulating a home from heat or cold but leaving the front door open at all times. So no more. The new sppout and cap design offers not only speed resistance, high barrier, recyclability. It is also one of the lightest weight for source reduction and its novel anti-choke design allows for minimal space and weight. Winpak's proprietary and patent-pending design is also conducive to keep the cap attached to the sppout and the remainder of the pound for recyclability. The following three slides contain further financial details and forward-looking statements for the company, and they are available for reading on our website. This presentation as well as detailed financial disclosures are available from Winpak's website at www.winpak.com. And with this, Mr. Chairman, I'm coming to the end of my presentation. And thank you for attending Winpak's Annual Meeting of Shareholders. Back to you, Mr. Chairman.

Thank you, Olivier. I now open the meeting to questions from registered shareholders or duly appointed proxy holders. Please limit your questions to topics relating to today's subject matter and keep your questions short and to the point. I ask that the attendees in the room who would like to ask a question. Please raise their hands and a microphone will be brought to you. Those participating via the live webcast who would like to ask a question. Please use the instant messaging feature of the virtual interface to do so. We will answer as many questions as time permits. When asking your question, please state your full name and the entity you represent, if any, and confirm you are a registered shareholder or duly appointed proxy holder. We will now give attendees a moment to type in their questions. For each question received virtually that is answered, we will summarize the question and read out loud the name of the person who asks a question, and if applicable, the entity such person represents. We would like to remind you that questions that were already answered or that are redundant or competitive will not be published or answered.

Ms. Secretary, do we have any questions from the participants on the webcast?

Mr. Chairman, no questions have been submitted.

Thank you. All right. As there is no further business to come before the meeting, I move and second that this meeting be terminated. Please stay and join us for some refreshments and to view the product display, Olivier mentioned earlier. Thank you.