Casino, Guichard-Perrachon S.A.

Welcome to the 2024 Half Year Results Conference Call. I now hand over to Mr. Philippe Palazzi, Chief Executive Officer, and Ms. Angélique Christofari, Chief Financial Officer of Casino Group. Please go ahead.

Very good morning, everyone, and welcome to the presentation of our first Half 2024 Results. I'm Philippe Palazzi, CEO of Casino Group. Joining me today is our CFO, Angelique Christofari. After four months at the head of the group, I wanted to talk today about the challenges that have been left for us and what action we are and will take to overcome them. Angelique will then take us through the numbers, and I will close with some final remarks before we take your questions. The first half of 2024 has been challenging. Our financial results are still impacted by legacy challenges, but we will improve upon the entire factory performance as we move forward. In fact, we have already made significant progress. We are not far off completing our comprehensive and realistic assessment of the group's fundamental financials, commercial and operational situations that we are inheriting. but it does not stop us from acting decisively where we can. Our resettling projects are well underway, and we have launched a profound commercial transformation in order to improve our financial performance. The new casino is a group of proximity brands, with proximity being the common DNA of our banners. This proximity is geographical, as we have a network of exceptional and unique locations, including C-Discount, which is always within 50 centimeters of you through your mobile phone, representing another form of proximity. So, this gives us several competitive advantages to help drive our recovery. First, we have a powerful brand with a clear and impactful positioning alongside well-identified private labels. Second, We have a unique geographical presence with significant market share in city centers like Paris and high-quality location across urban and rural areas. In fact, 42 million people in France live near one of our stores. Third, we have a highly skilled, committed, and loyal employees dedicated to the group. And finally, we have extensive experience in franchise, management, and expansion. which now represent a significant portion of the new casino stores. Our goal is to simply be the best of proximity. Obviously, this transformation will not happen overnight, but the roadmap is clear. First, we need to restructure the group, then consolidate our positions, and finally, develop the business. In the very short term, the urgency is to finalize the restructuring already underway. A significant step has been achieved through financial restructuring, debt has been significantly reduced, and equity has been injected. It is also imperative to quickly improve our accounts and review our cash management to ensure the group's sustainability. To finalize the restructuring, we are focusing on three key areas. One, selling hypermarket and supermarket assets to cut losses and keep the group afloat. We have already sold or reached agreement to sell over 400 stores. We still have about 30 that will either sell or close by the end of the year. Two, we are adapting our logistic network to a new perimeter. preserving the integrity of our store delivery chain. In short, we need to take our delivery capacity to the HMSM that we are selling, but make sure that deliveries to our remaining network continue to function smoothly. The last one, we inherited four operational and corporate centers. We are reorganizing them to generate synergy and implement more cost-efficient operations. We have already put in place a residency plan at Saint-Etienne Headquarters and are currently looking for the saving plans that we will roll out in the second half of the year. Before ending over to Angelique, this is the last but not the least of our topic. Our commitment to environmental, social and governance principle remains strong and it is recognized in our industry. First, in terms of environmental responsibility, we are actively combating climate change. We have renewed our ISO 50001 certification, which underscores our ongoing efforts to improve energy efficiency across our operations. Second, we are promoting more responsible trade practices. All Casino, Franprix, and Monoprix products are now rated with a Nutri-Score, helping consumers make healthier choices. Third, we act as a responsible employer. Our dedication to this principle is reflected in the renewal of our top employer 2024 certification, acknowledging the quality of our social practices. Additionally, we are committed to supporting the unprivileged. Monoprix and Franprix have launched a roundup campaign at checkouts to support women in difficulty in partnership with organizations like Les Restos du Coeur. We also organize in-store food drives to help those in need. We have achieved a 57% reduction in CO2 emissions since 2015, demonstrating our significant progress in reducing our environmental footprint. So, I will now hand this to Angelique, who will take through the numbers. Angelique, over to you.

Thank you, Philippe. Hello to all, and I'm very glad to have this first call with you after four months with the new Casino XCOM and with Philippe in the driver's seat. Let me first remind you that the scope of consolidation for 2024 only reflects 62% of last year net sales for France, focusing on ongoing activities that are expected to have superior profit and cash flow profiles. Our consolidation perimeter now includes our core convenient brands, Monoprix, Franprix, and Casino Convenience Stores. This discount is our e-commerce activity. We are in the process of finalizing the disposal of all of our hypermarket and supermarket stores. We are also closing unprofitable convenience stores and converting integrated ones into franchisee stores. Our intention is to operate a business of profitable stores for both franchises and the casino group. In this context, expansion will be run in a controlled manner. Net sales for the first half of 2024 totaled 4.2 billion euros, down 3.5% on a like-for-like basis. This decline is primarily due to the planned reduction in direct sales of sales discounts, which show an 18.9% drop. Our convenience banners showed resilience with a slight decline of 0.3% like for like. These figures underscore our shift towards more profitable and stable segments. In terms of EBITDA, our adjusted EBITDA was 255 million euros, representing the year-on-year decline of 79 million euros. This decrease is mainly attributed to last year one-offs to operational expenditure inflation, to a less favorable margin rate, and to ongoing legacy headquarters costs related to our former hypermarkets and supermarket businesses. A BDA after lease payment stood at 26 million euros, a decrease of 86 million euros compared to previous year. To counter our challenges, supply enhancements and cost efficiency measures are being worked at, Those efforts are expected to stabilize and improve EBITDA performance moving forward. Despite operating in a no-growth market where inflation came down, our performance has been resilient. Monoprix and Naturalia showed positive growth with net sales reaching 2.15 billion euros, up 0.8% like for like. E-commerce at Monoprix grew by 15%. Franprix maintained a steady performance as well, with net sales of 815 million, up 0.4% like for like, despite adverse weather in June, which altered the like for like total performance, which at the end of May was plus 1.2%. Casino proximity sales were 700 million, down 3.8% like for like. hit by the hypermarket and supermarket disposals and poor weather conditions. The discount net sales were 468 million euros, reflecting an 18.9% decline due to the planned reduction in direct sales and promotion of its marketplace activity, which gross market value showed positive evolution in June and July. Our Adjusted EBITDA for the first half of 2024 was €255 million, a decline of €79 million year-on-year. The adjusted after-lease payment EBITDA was €26 million, down €86 million year-on-year. These results reflect, first, a €20 million of positive one-offs in last year's reported figures. Second, inflation in various costs, amongst which are rent increases. as well as 25 million of hypermarket and supermarket headquarter costs. Such costs at headquarter level are inherited from the hypermarket and supermarket businesses. They take, however, into account the consequences of the redundancy plan project. Our value creation plan will deal with this and restore EBITDA in the coming period. Our financial reasons have been significantly impacted by non-cash items. These include 422 million of FGW depreciation, as well as a fair value gain on converted and reinstated debts amounting to 3.5 billion euros. We have also expensed 81 million financial restructuring costs this year. As regards the FGW depreciation, It derives from two factors. First, the actual performance of Franprix, which is below what had been considered in the past. We had to take into account a restated recurring EDDA performance of Franprix. Second is our assessment of the EDDA target margin of Franprix and the capex to be invested in. As a result, We have achieved a net profit from continuing operations of 2.5 billion euros in the first half of 2024 compared to a loss of 1 billion in the same period last year. When you back out the non-cash fair value gain and other operating income and expense, the underlying net loss amounts to minus 349 million euros, a substantial reduction compared to last year. In half-year 2024, we reported a free cash flow deficit of 413 million euros, including deferred tax and social charge payments from our financial restructuring. We also faced challenges like inflation and cost, market mix adjustments, and franchise payable write-offs. Plus, the comparison is made difficult as the amount last year included $20 million of one-offs. That did not repeat this year. Lost operational financial capacity was $488 million last year. Excluding these and excluding the deferred payments of tax and social charges, free cash flow was minus $260 million last year versus $260 minus 248 million this year. Now starting from the free cash flow of the previous slide, our net debt position was substantially improved compared to the same period last year for four main reasons. By order of materiality, First, the financial restructuring on a net-debt basis reduced gross debt by €5 billion. This includes the capital increase of €1.2 billion and debt cancellation for €3.9 million. Second, asset sales of our LATAM and INFRAN, primarily the sale of our Tesino hypermarkets and supermarkets, raised €1.2 billion in total. Net interest expense declined by 71 million thanks to a smaller growth debt position over the period. And finally, the cash burn coming out from the H&M and supermarket was smaller thanks to debt sales. I would point out that this particular series of cash burn will be much lower in the second half of the year. As a result, net financial debt was reduced by 5.1 billion euros from 6.2 billion last year to 1 billion at the end of June. On the next slide, we see the composition of our debts. We can see that the RCF has been fully repaid thanks to asset sales. All the debt was done by €211 million, primarily due to repayment of bank overdrafts and increase in segregated accounts due to the sale of supermarkets and supermarkets. And I would like to remind you that we reached a deal to sell 200 million euros of real estate assets that secure the quatrain loan. When this transaction closes, quatrain debt will go down by a similar amount. On this slide, we can see our debt maturity profile. Our next material maturity would be in March 26 in relation to our various RCFs. If we decide not to decide, there are options to extend out to March 27th. Quatrain is due in January 27th, and this instrument has also an extension option out to January 28th. The reinstated terminal B comes due in March 2027, so we are pretty comfortable for the coming quarters. Now let's move to our liquidity position at the end of June, which stands at 1.79 billion euros. It includes $0.72 billion available cash at Casino Financery, which is the cash pool entity of the French business, $0.71 billion in fully unrolled reinstated Monoprix RTF, and $0.35 billion in other unrolled and immediately available revolving credit facilities, mainly related to Monoprix Exploitation RTF, Monoprey holding bilateral credit lines and overdrafts. Just as a reminder, under the new loan documentation, available cash is defined as cash and cash equivalent excluding the float and any trapped cash. Now moving on to my last slide, post-restructuring, we have new financial components. With the first test date, being set off for September 2025, following an 18-month holiday period. The financial covenants under the new financing agreement then include a minimum liquidity, which must at least reach 100 million on the last day of each month. At the end of each quarter, the liquidity forecast for each month of the subsequent quarter must also be at least at a minimum of $100 million. And the total net leverage ratio at the end of each quarter must be below the specified thresholds. As of June 2024, this ratio was 5.41, based on the $230 million for formal EBITDA and $1.2 billion total net debt. Please note that the ceiling of the net financial debt covenant out of adjusted EBITDA The governance ratio is set at 8.34 for September 2025. So that concludes my presentation, and now I turn the floor back to Philippe for his closing remarks.

Thank you, Angélique. In conclusion, the new casino is firmly on the road to recovery. We have made significant progress with our resettling projects, which are well underway. This includes the rationalization of our store base, the sale of hypermarkets and supermarkets, and the agreement to sell CODIM, encompassing 18 outlets in Corsica. We have also opened several renovated Monoprix stores, showcasing our commitment to modernizing our retail spaces. Initial commercial transformation has been successfully launched, with early signs of positive impact. Our ongoing and realistic assessment of the good financial, commercial, and operational situation ensures that we stay grounded and focused on achievable goals. Looking ahead, the group value creation plan will be unveiled at the end of the year. Led by our new management team, we are conducting a thorough financial, commercial, and operational review to pave the way for this plan. Our objective is to create both economic and social value for the group. We remain committed to our strategic goals and will continue to work diligently to achieve them. Our dedication and hard work are crucial as we navigate this transformation together. By being focused and motivated, we will bring and build a stronger, more resilient new casino. Thank you for your attention. Angelica and I will be pleased to take your questions. Operator?

Thank you. This is the conference operator. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touch-tone telephone. To remove yourself from the question queue, please press star and 2. Please ask all your questions at the same time. Anyone who has a question may press star and 1 at this time. The first question is from Clement Renelot of Brian Garnier. Please go ahead.

Yes, good morning. First, thank you for the very useful presentation on the slideshow. If I may, I have four questions. The first one is on the Virola convenience. Could you explain what is going on at Fempre plus Virola convenience and mud burners? If I'm right, both margins were heavily down in late 2023 and Q1 of this year and also Q2 for Fempre. So have you reviewed all your franchise contracts there and why? My second question is on the current trading in Paris with the start of the Olympics. Have you seen any uptake in the sales or really not? My third question is about the next asset sales. Is it fair to assume that your net asset sales will decrease in H2 from the 1072 figures in H1, with the last hypermarket and supermarkets going to be transferred in H2, and also with the downsizing of the HQ in H2, which might imply some restructuring costs? And my final question is on the prices. The prices are not mentioned in your initial commercial initiatives launched that are written on slide 22. So does it mean that your prices will rather be a topic for next year and not this year? Thank you.

Yeah, thank you very much for your question. I will answer the two first questions, as it was quite difficult to hear you for the question number three. And I will ask you after if you can make it again. Sorry for it. Yes, talking about margin and talking about franchisee and specifically to Franprix. First of all, I would like to mention that even in the current situation of the company, as you have seen the result today, there is no franchisee who have explicitly expressed the willingness to leave our network, which is a first point to mention. And as well, when looking at the numbers in details, we are not facing any retention issues or higher than the normal attrition we have from the past. And even I must say that quite to the contrary, We are renewing long-term contracts with our partners. You have seen that we have signed or renewed our contract with Sherpa Cooperative and as well with Total Energy Gas Station, which is more than 1,000 petrol stations. The short-term decrease in the number of franchisee stores, and in particular with Grand Prix, links to the pruning of our store portfolio. As previous year, Let's say from the position we have quite a lot of excessive and unprofitable store openings and we are returning to a healthier state of operation being demanding in the selection of the franchisee and as well being demanding in the selection of the store locations. There is no forced margin reset whatsoever to answer your question. The decision is to lower a limited selection of products is intended to increase the competitiveness of our partners and relaunch their commercial dynamics. We have worked with being very much customer driven by doing this. We are working with doing workshops with our franchisee to define with them price positioning, to define with them assortment, to define with them logistic That means really a way of approaching them and working with them to make sure that we answer their needs and their demands. Your second question was related to the Olympic Games. But before this, I would like to mention something which is linked to the margin as well. but I'm, let's say, expanding a bit your question. One very key point as well is the purchasing condition in our business and the purchasing alliance. As you know, at the beginning of 2024, we had to adapt our alliance framework to account for two effects. Firstly, to close up the ties between Intermarché and Auchan in several areas, and secondly, to sell off our hypermarket and supermarket, which has significantly reduced our size in the food market. That means, in practice, we have before expanded our agreement with Intermarché to include Auchan, which is rather positive because the network stays within ourselves somehow. And in the specific case of food, I'm talking specifically now for the national brand, we also changed the nature of our partnership. Acknowledging our now reduced size, we have negotiated a mechanism close to affiliation, and this is very important. which allow us, for a fee, to gradually align our purchasing condition with those of Intermarché. These new agreements have already been reviewed by the IMC Work Council, which is our purchasing branch, and they can be implemented at the end of August, upon the expiration of the analysis period by the Competition Authority, which is a so-called background deadline. Paradoxically, while the changes in the group scope should have weaknesses in purchasing, the integration of Auchan and the affiliation mechanism will strengthen our upstream competitiveness. And this is helping us to be even more solid on our feet in the coming month and year. Your second question was on the Olympics. I will not comment on the performance of the gold medal of France, but As you know, we have a good stock footprint in Paris. And even if it's true that we are, even if we have a market leader in Paris, it's very difficult at this moment in time to estimate the impact of Summer Olympics we will have on our sales. Initially, there is a significant influx of Olympic-related tourists expected, but now you really see it since this weekend. while you are walking down in Paris. But this is also expected to be at least somewhat offset by the typical summer tourists who decide not to travel to Paris this year. And furthermore, many Parisians have left Paris earlier this summer not to stay during the Olympics. As of now, or let's say before last weekend, the influx does not appear to have materialized with the hotel occupancy rate down to 30% compared to the same period. But I must say that since this weekend, since Saturday, we have seen that, you know, the store performance the last four days were more than double-digit growth in Monoprix and Franprix downtown Paris, which is quite, let's say, promising for this. Now, let's see how this will turn. And if I may ask you to repeat your third question, and fourth as well would be great. Thank you.

Sure. So on slide... Extine, you said that there are discontinued cash flows that include the hypermarket, supermarket cash flow. It's close to 500 million euros. So I was just wondering what kind of amounts we would have to expect for H2, because if I'm right, all of them are still not transferred to Auchan or Meroulson Intermarché. And I think we should also assume some kind of restructuring costs for the downsizing of this market chain HQ. And just about my last question, that was regarding levy prices. Because on slide 22, you mentioned some initial questions. Commercial actions, but if I'm right, the prices are not included in it. So I was just wondering if the group is already making some actions on the prices, or if that's a topic for next year.

Okay, so as regards the cash burn from the remaining hypermarkets and supermarkets, you must consider that the number of shops we still have to close will be closed on September 30 of this year, so there remains only a quarter of cash drain. And there were more than two-thirds of shops that were sold at the end of the date of July 1st. So the last number, the remaining shops to be closed is very few of them and for only one quarter. And as regards your question on the headquarters inherited dysallergic costs that we have, I will not provide you with the expected forecast figures since it derives from many years. underlying effects and actions that we have to monitor but we are now working on it.

Thank you, Angélique. To your last question, my understanding is specifically the question was leading on pricing and a bit of pricing strategy and what we have implemented the past four months that we are in charge of the organization besides the the initial commercial transformation that you can see on this slide. That means, as far as this is concerned, for Monoprix, and we are talking about end-consumer pricing, we have focused on the private label and we have put in place the top 100 essential items to reposition it. That means this is the most bought item by our customers. with our famous brand private label Monoprix on this one and we see a great interest to our customers from this part of the range at this positioning and as well as helping loyalty because they are buying our brand and when we are pushing our brand is as well pushing the brand of our buyers. This was one first important topic. The second topic to help our consumer in terms of pricing is the launch of the program, which we call CART-N, which is a loyalty program that you can win up to 80 euros per month, or saving 80 euros per month. And since we have launched it, we see quite a good response for our consumer in this program. I think it was a long time due to the market that Monoprix was launching such a thing. And I must say that... This is issuing a slide at the end of the tunnel for that one. As far as the B2B part of our business, because this is quite important that everyone is understanding that we are in a B2B business. Just to give you a number, 76% of our stores in Franprix are franchisee stores. And this is important. And when you talk about casino and all the casino brands, 92% of our stores are are franchisees. That means we are clearly in a B2B business. That means the focus we are putting in terms of assortment services to franchisees but as well pricing and this is what we call session pricing or wholesale price that we are giving to our franchisees is key in our strategy. That means already we have selected and this we are done in a co-working condition with our franchisee. We have dropped the price of hundreds of articles. They were key in the eyes of our franchisee for two reasons. First one, to help them to be more profitable because their success is our success. And second topic, to reposition potentially their selling price according to the competition landscape and the competition stores around themselves. And this was very well appreciated. We had a very good feedback from this exercise. As I said, we went line by line with our franchisee to select each and every single item where to work. And this will repeat such works regularly with them. And I think this is the right way to answer their needs and their demands. That means, with my words, I want to tell you that We are in a B2B business as a casino group, or the new casino is very much in retail, but in a B2B business. And the second topic on pricing, and maybe it's worth to talk about it, is a big part of our business, and mainly when you are in city or city centers, or mainly in Paris, in a metropolitan place, we are not only retail, but you come and you shop to fill your fridge and your cupboard, But as well, you come because we have an offer that is like being a snacking and take away food. And I think this is where in business we are in. And I think this business is highly relative margin. And this is a part of business we want to develop. You know, this morning I went to a, maybe in UK you know as well, which is a chain called Pret. And I bought a latte and I paid six euros. And I must say that this is quite high margin and I think this is a direction that our store downtown Paris, having offices nearby or tourists like we have for the Olympic Games, they enter in our store, they buy their sandwich, their drinks, their coffee. And this is the things we want to develop as well. We have salad bars in our store. I think all this is contributing to a price perceptions and services we want to have in our business. That means My thing is that we are not just a pure retailer like we have in a suburb area of a big city or like the big hyper or the big supermarket chain, but we are very much a retailer that as well is offering takeaway restaurant type of offer as well as normal retail. I think this is quite a competitive advantage we have and adding to Monoprix our textile positioning and well-known brand as well. I think we have a very point of differentiation compared to any competition and I think that our franchisees as well they are quite satisfied to be belonging to the group Casino. I would like to mention maybe something about this is that All the contracts we have with our franchisees in Casino, Monoprix, and Franprix are certified and validated by the French Federation of Franchise, and which is not the case of our main competitors. Thank you.

The next question is from Nicolas Jean of Barclays. Please go ahead.

Yes, good morning. Thanks for taking my question, and thank you for the presentation. I have four questions as well. The first one is about the capex. So you reported a net capex of €159 million in H1. What is the gross figure? And going forward, could you please guide on the capex level for the full year? Should we extrapolate this number? And yeah, this is the normative capex level for the new perimeter. The second question is about working capital. You had an improvement in H1, obviously still a working capital outflow given the seasonality, but here again, could you help us and guide regarding on the working capital variation for the full year? Could we see maybe a positive working capital for this year? The third one is about the impairment charge which has been quite significant in H1 related to good wheel impairment. Are you down with the legacy at this level or should we expect maybe further impairment charges in the second half? And the fourth and last question is a more personal one. I mean, you are now in charge since six months. May I ask you what are your main positive and negative surprises now that you manage a business, I would say, internally after six months? Thank you.

Okay, thank you for your four questions.

As regards the growth figure for CAPEX at the end of June, it amounts to 164 million euros versus last year where it amounted to 372 million. And to provide you some more insight, the CAPEX level will remain, as you mentioned, almost steady from previous periods. We have not decided material change. Our focus is to concentrate on CAPEX that provides short-term profit and return on investment. That's the way we focus and we work with our subsidiaries presently. In terms of the impairment test, As you referred to, yes, the legacy is there as well, but I consider that presently we have done the job completely. The review was dealing with all the subsidiaries, of course, and I would also point out that the WAC we used in our model has not been modified at the end of this impairment test we did. and it incorporates quite an important risk premium since it was the same last year, and we didn't change this amount of risk premium in our work. So we have quite a fairly high level of caution on EBDS rates in the non-mative year, which is used for our impairment tests. So I would say that, yes, the job is done by now. Then the future will be there. will be our responsibility to keep you updated on this, but the work was well done and in a quite detailed and focused manner. As regards working cap, no specific comment there. It will be more beneficial should the business expand and we are in a very close manner monitoring the payment delay and doing satisfactory payments to our suppliers. And of course, you will find in the future reporting the fact that the eight per markets and two per markets working gap will disappear from the yearly and quarterly positions of working gap. But this is just a scope, in fact, and nothing to do with our payment delays and volume of business. And I leave the fourth question to you.

Yeah, thank you, Angélique. Yeah, for the fourth question, yes, I would like to precise something that even if it feels six months, we are in the organization only since four months. And end of March of 27, we took over. To answer your question, what are the positive and the negative since we took over, I must say that what I'm really puzzled by is the teammates. I mean, if you see the dedication of the people, I mean, despite the difficulty we are facing, how committed and hardworking they are. This is really impressive. Even if I spend 27 years in the retail, I must say that I've never seen this ever in my life. I mean, the level of resilience is really outstanding and really impressive. The second positive thing is the brands we are operating. And I think this is quite key. When competitions are going in a proximity business with format, called Express City, whatever you call it, which we are talking about size, In the casino group, we are talking about brands. And you know that shopping is very much linked and is very much linked to the affinity you may have to a brand. That means the true advantage of casino group, and this will be part of our valuation plan in the future, is the power of our brand. That means in the same street, you may find a Naturalia, a Monoprix, and as well a Franprix. That means we will be in a position to compete with ourselves and offering different, let's say, services to our clients. But this is really something positive. Now, not having any more HMSM as well in our portfolio, the group is consistent. We are in proximity business. We are in convenience business. And this is focusing on this one. When everybody thinks that convenience or proximity business is a reduction of an hypermarket, I must say that this is totally wrong. Proximity business is totally different in terms of assortment, services, and this is where we will focus in our plan. And third, what I'm very positive about is the relation we have with our franchisee. I have spent a lot of time visiting them, talking to them regularly, and I must say that they are very much tied and attached to the brands, and sometimes it feels that they are close to be kind of an employee of our brands. And this gives me enthusiasm and positive for the future on that one. On the negative side, I must say that I did not find something specific more than we can expect in a situation like we are, that Mini was forcing. There's a lot of potential. There's a lot of things to do. to the organization. That means this gives us a lot of energy and we are all positive the management in place to turn around the business and we will.

Thank you. Ms. Cristofari, Mr. Palazzi, this was the last question. Back to you for the closing remarks.

Thank you.

Thank you very much for the attention and the question as well. I would like just to close on the final note, which is that we are currently working on a value creation plan, and I'm insisting on this word, and you will never hear me talking about strategy. the value creation plan because we want to create something that is very detailed, very detailed, sorry, and that is something very actionable for the future. And this is how we are setting up the future of the organization. And we will be, by the end of the year or after Q3 result, we will unveil our value creation plan officially, internally as well. And from that one, after we will be on a change of on a change of day at full speed with the team. Thank you. And to all of you.