Thales S.A.

Good morning ladies and gentlemen and thank you for standing by. Welcome to today's Thales order intake and sales at September 30, 2024 conference call. The presentation will be held by Pascal Bouchier, Thales CFO. It will be followed by a question and answer session at which time if you wish to ask a question you will need to press star 1 1 on your telephone and wait for your name to be announced. I must advise you that this conference is being recorded. I would now like to hand the conference over to Ms. Alexandra Boucheron, VP, Head of Investor Relations. Please go ahead, Madame.

Good morning, all. Welcome and thank you for joining us for the presentation of Thales 9 Months 2024, Order Intake and Sales. I am Alexandra Boucheron, the Head of Investor Relations at Thales. With me today is Pascal Boucheron, CFO of Thales. As usual, this presentation is audio webcasted live on our website at thalesgroup.com, where the slides and the press release are also available for download. A replay will be available soon after the end of the event. With that, I would like to turn over the call to Pascal Boucher.

Thank you, Alexandra, and good morning, everyone. So let me start with the Q3 2024 highlights before moving on to the numbers. I'm now on slide two. Q3 2024 has been a new quarter of strong commercial momentum, in particular in defense and security. This dynamic was notably driven by large orders. Over the quarter, Thales signed seven large contracts with a unit value over 100 million euros, highlighting again our solid positioning in our major markets. I will come back in details on this excellent performance later in the presentation. Sales growth was also sustained, reaching a 6.2% organic growth year-on-year over nine months. This performance was notably driven by strong growth in defense and security and robust trends in avionics. Q3 was also marked by the announcement of a partnership with Mistral AI, one of the most powerful generative AI systems on the market. Through this partnership, Aiming at developing the use of generative AI within the group, Thales will accelerate its internal digital transformation while ensuring the strict protection of sensitive data. Lastly, we were proud to join the CAC40 EHD Index in September. This comes as a new example of the recognition by the financial community of Thales' commitment and contribution to the protections of society, the planet and individuals. Turning now to slide 3 with the snapshot of Thales' 9 months and Q3 2024 key figures. New orders amounted to 15.6 billion euros as of end of September 2024, delivering a robust organic growth of 23% versus last year and reflecting the confirmations in Q3 of Thales' strong commercial activity. Sales came into 14.1 billion euros, going 6.2% on an organic basis over the first nine months and 6.6% in Q3 2024. This performance puts us right on track to reach our 2024 target. Now, looking into details at our order intake, I'm now on slide four. As you can see, the strong organic growth we recorded in both Q3 and nine months is mainly driven by large orders. In Q3, we booked seven new large orders, which drives to a total of 19 large new orders over nine months. Large orders more than double year-on-year, which is a strong performance. All seven new large orders in Q3 were related to defense and security, reflecting the strengths and the excellent dynamic of this business. It's also worth noting that out of the 19 large orders awarded over the first nine months of 2024, two of them were related to space and one to avionics, demonstrating Thales leadership across all major businesses. The momentum is also good on smaller orders with a 6% reported growth for orders below 100 million euros coming from all our businesses, including our recent acquisitions. Turning now to slide five and nine months 2024 sales goals. I work first on currency and scope. The currency impact was a little bit more material this quarter, minus 22 million euros, leading to a minus 38 million euros currency impact over nine months. As you know, the scope impact is much more significant. resulting from the acquisition of Cobham, Imperva and Deserent, partially offset by the disposal of the electrical activity. All in all, this translates into a positive impact of 469 million euros in line with expectations. The organic growth reached 6.2% over nine months. It was mainly driven by defense and security, with no surprise, but also by aerospace, which still experiments a solid momentum lifted by Avionics while space shows low single-digit organic growth. The IS recorded stable organic growth, reflecting contrasting dynamics in the business that I will detail later in the presentation. From a geographical perspective, nine-month sales organic growth was solid and well-balanced across the board, including good momentum in both mature and emerging markets. Let's now have a look at the performance of each segment, starting with aerospace on slide six. Orders in the aerospace segments came in at 3.6 billion zeros, up 8% in organic terms. This solid pace of growth reflects contrasting dynamics. Avionics continues to record a solid momentum with double-digit organic growth over nine months, driven by both military and civil activities. In space, order intake was down year on year, suffering from a challenging comparison basis. In fact, two large orders above 100 million euros have been booked since the beginning of the year, versus five in 2023. Space reached 3.8 billion euros over the first nine months, an increase of 5.3% organically versus last year. This sustained good momentum was notably driven by Avionics, which recorded mid-single digit plus organic growth in line with H1 2024 trends. This solid performance reflects the continuous strong dynamic of our IFE and flight Avionics OE businesses. However, we anticipate a slowdown in Q4 in Avionics with an expected slower pace of growth due to delays in delivery that our clients are currently facing. Space recorded limited growth over nine months with low single digit organic growth in line with our expectations. Turning now to slide seven. looking at the defense and security segments. Order intake amounted to 9 billion euros in nine months 2024, which translates into an organic growth of 40% versus last year. As you can see, the momentum continues to be very strong in these segments, and Q3 has been again a strong quarter. Defense and security indeed booked seven large orders of the quarter, among which the production of seven additional sections of the 70th new generation for the French air and space forces, or two major contracts with the UK government to provide short-range missiles. Our backlog in defense and security reaches a new high at 37 billion euros, representing close to 3.8 years of sales, providing a very comfortable level of visibility. Sales came at 7.2 billion euros, an increase of 8.5% in organic terms versus last year. This solid level of growth reflects the continued positive trends across most business lines. With the strong backlog mentioned previously and our continued effort to ramp up production and delivery capacity, this sustained pace of growth should continue in Q4. Now, looking at digital identity and security on slide eight, as commented earlier, Please keep in mind that nine months 2024 figures integrate a positive scope effect linked to the acquisition of Tessier and Interva. Additionally, I remind that 2023 figures have been restated to include cyber civil activity transferred from the defense and security segment. At 2.9 billion euros, sales are broadly flat organically year-on-year. Here again, this performance reflects contrasted dynamics. In banking and payment services, we keep seeing destocking in North America that is lasting a bit longer than expected. This decline in this activity is, however, offset by a good momentum in other activities, namely, cybersecurity and biometrics activities are indeed recording a continuous steady pace of growth, and connectivity solutions are delivering double-digit organic growth, reflecting our continued run-up on this market. Finally, concluding with slide nine, and a reminder of our financial objective for 2024. As you understood, Q3 performance was solid across the board, with a good momentum in most of our businesses. This enables us to confirm all our objectives for this year. Book-to-bill ratio will be above 1. Sales are expected to grow organically between 5 and 6%. which corresponds to a range of 19.9 billion euros to 20.1 billion euros based on September 2024 foreign exchange rates. An EBIT margin is expected between 11.7% and 11.8%. Many thanks again for your attention, and I will now be pleased to take your questions.

Thank you. Ladies and gentlemen, we will now begin the question and answer session. As a reminder, if you wish to ask a question, please press star 1 1 on your telephone and wait for your name to be announced. We will now take the first question. Coming from the line of Olivier from Red Bull Atlantic, please go ahead.

Yes, good morning. Yeah, Red Bull is definitely what I need so early in the day. Thank you and good morning, Pascal. I have two questions, please. The first one on space, revenues were stable in H1. They are growing low single-digit in nine months, so growing in Q3. Is that sustainable, do you think? And the second question is on DIS. Volumes were bad in banking cards. Can you give a bit more color between volumes and pricing, how this developed, and whether this has any consequences on margins going forward? Thank you.

Okay. Good morning, Olivier. So starting with space, overall, I mean, considering the full year of 2024, stable to low single digits, for me is what we have in mind. So will it be one, two, three? But this is really this type of organic growth that we expect for the full year in space. As you know, we might have a bit of up and down. between stable and low single-digit. For me, it's not that material, but overall, I mean, stable to low single-digit is probably a good rule of thumb to anticipate the 2024 landing for space activity. So the IS, you mentioned specifically, I mean, banking. I guess that you've also noticed that, I mean, the rest of our business is doing pretty well, in particular cybersecurity. as a new digital product for secure mobile connectivity. Now, it's true that on banking and payment, we see today a market which is down versus last year. And with this, mainly this talking in US, I mean, We're expecting this talking to stop a bit earlier. It has continued in Q3. My view is that probably Q4 would be slightly better in terms of demands. So is it the end of the destocking? Probably a bit too early, but we see at least the situation stabilizing and a bit of positive news in this market. It is essentially a volume drop in terms of demand. Of course, each time we discuss about less demand, you could consider pressure on prices. But I can tell you that we are making sure to preserve our level of margin and our banking and payment segments in 2024 will still be a quite profitable business with level of margin. probably between 15 and 18%, probably a good rule of thumb, I mean, for you to assess the level of margin in this business. So you see, I mean, quite good level of margin, and this is basically what we are striving for. Excellent. Thank you so much.

Thank you. We will now take the next question. from the line of Chloe Lemarie from Jefferies. Please go ahead.

Yes, good morning. Thank you for taking my question. I have two on my side. The first one would be on free cash flow, because previously you'd mentioned about 100% conversion for the year. Given you've had very solid order intake, in particular on the large order, could you maybe say if you have a different view on that 100% conversion in terms of potential, you know, larger advances you might be receiving at this point. And the second one is on the French tax measures, if you could share maybe first view on potential impact and how you would treat those and whether the potential tax on buyback would change your appetite for buyback as opposed to other forms of distribution going forward. Thank you.

Okay, good morning, Chloé. On your first question about free operating cash flow, I mean, I keep confirming a level of conversions ratio of around 100% in 2024. Is that overall, I mean, in terms of commercial momentum, And to believe that at this point, it's a bit better than expected. Now, you also need to take into account two points. I mean, first, I mean, we've got, of course, some order intake that do not come along with significant down payment, in some cases, no down payment, in particular in domestic In domestic activity, in general, there is no done payment. Done payment is, in most cases, more a pattern which relates to export contracts. So, no, I mean, 100 percent of conversions and continued operations is basically what I have in mind. Second point on French tax. So I will answer on the potential impact on our P&L and I will ask you to elaborate a bit more on what you mentioned about share buyback to make sure that everyone understood your question. So on French tax. I mean, first, I think it's important to consider that the 2025 budget is today under discussion at the French Parliament. And there are a number of discussions of amendments, back and forth discussions, and this will continue at least until mid-December. with, of course, uncertainties of the outcome of this project at this point. Second point, it is true that the governments in this project mentioned that he would like large companies based in France, to contribute exceptionally in 2024 and 2025, for the 2024 fiscal exercise and the 2025 fiscal exercise, on a specific exceptional income tax charge. Overall, what the French government has in mind on this matter regarding to the 2024 fiscal exercise is to move up the tax rates from 25.8% to 36.1%. this relating to 2024 and that what they have also mentioned is that relating to the 2025 fiscal year the tax rates would move from 25.8 to 31.1 percent And then it would come back to, as from 2026, it would come back to the standard level for all companies, which is 25.8%. Now, what would be the impact for Thales? The impact for Thales on the 2024 PNL would be an additional charge, which would be probably around 70 million euros. in terms of additional income tax for Thales. And it would represent 35 million euros in 2025. So this is where we stand today on this matter. Once again, at this point, just a project, as I mentioned, a number of discussions. So we need to be a bit more patient and to wait until, I mean, the 2024, 2025 budget is finally approved. And your second questions with regard to share buyback, Chloé, what was the, I mean, to make sure that we understand,

Yes, maybe I'm jumping ahead a little bit there, but my question was essentially if that 8% tax on buyback would, in the midterm, you know, durably change your view on whether you would consider buyback over other forms of cash returns.

Okay, probably a good occasion for me to explain a bit more. I mean, these figures that you have mentioned, 8%, it's not 8% on the share buyback investment or the acquisition price, it is 8% of the nominal capital of the company plus the premium that has been recognized on this capital. When you put all of that together for a company like Thales, this additional tax would represent probably something like a bit more than 1% of any share buyback program. And I guess it's quite clear from this statement that this represents an additional challenge that wouldn't change overall our perceptions to move on in this type of program. Once again, and of course I need to be clear, share buyback at the end of the day is the decision of our board. But I think it's important for me to share this figure because 8% seems pretty high. But it is applying on the underlying amount, which is quite significantly reduced as compared to what would be a share buyback investments overall.

Perfect. Thank you so much.

Thank you, Chloé.

Thank you. We will now take the next question from the line of George Tsao from Bernstein. Please go ahead.

Hi. Good morning, everyone. First question on avionics. You mentioned the slowdown in Q4. What kind of growth are you expecting for Q4 given that slowdown? And remind us, what's the OE versus aftermarket breakdown within the avionics? Second one on defense. I think in the press release you had some more positive comments here than in the past, calling this unparalleled visibility. What does this mean for the growth outlook, though? We've only seen very minor tweaks from mid-single-digit to mid-single-digit plus growth in recent years.

Mm-hmm. Okay. Georges, I will start with your second question because it was more clear. The line is not that great. So let me start on defense and we'll ask you to repeat your questions on your first one. So on defense, it is true that overall, I mean the level of course that we deliver in the first nine months of 2024 is a bit above our expectations, 8.5%. And what I mentioned is that I'm expecting our Q4 growth in defense and security to be quite close to this level. So which means that overall, 2024 in terms of organic growth would be probably close to what we have just delivered in the first nine months, which is overall pretty good. Now, I mean, what does it mean for the future? And as you know, I mean, we will have our capital market day in a few weeks, where we'll discuss about what to expect in terms of growth for all our businesses. My view in the mid-term, in the next few years, and considering that I think this level of top-line growth of 8.5% is not, in my view, sustainable in the long term overall, probably what we are going to share with you is the level of organic growth for our defense in the next five years that should be probably between 6% and 7%. This is today my view on the long term. Can you come back on your first question?

Yes, sure. Just on avionics, you hinted at slow down Q4. I was wondering. What are you expecting? And remind us, what's the current OE versus aftermarket revenue breakdown within the maybe on X?

okay so uh uh it is true that uh what i said it overall i mean uh in the first nine months of 2024 we are overall uh pretty happy with uh with uh with the overall revenue growth of of this business uh i mean a mid single digit plus overall top line growth You asked for a split between aftermarket and OEM. Aftermarket is more mid-single digits, and OEM is at this point more closer to double digits. First point. What I mentioned in my presentation is that we expect a slowdown in Q4, and in particular when it comes to IFE business, also a bit on our cabin connectivity business, but in particular on IFE. And the reason has nothing to do with Thales. It is because we see our clients, And in particular, when I talk about IFE, airlines being more and more penalized by late deliveries of both aircrafts when it comes to new aircraft delivery, but also when it comes to cabin retrofits. penalized by late delivery from some seed manufacturers. And it's true that a number of our clients at IFE have asked us to stop delivery because they don't have either the seeds they need or the aircraft that they are still waiting to be delivered. I mean, the impact overall when I look at Thales overall in 2024 in terms of level of revenue is not that important, but overall it's something that could represent probably something around €100 million of MIS revenue for Avionics in 2024. Now, the good thing is that it's going to be postponed And hopefully, both Airbus, Boeing, and the seat manufacturers will be able to recover in terms of speed of delivery.

Understood. Thanks.

Thank you. We will now take the next question. from the line of Carlos Iranzo-Perez from Bank of America. Please go ahead.

Hey, guys. Good morning, and thanks for taking my questions. I just wondered what you're doing in terms of supply chain in defense, and particularly if you could provide an update about the sourcing of PCBs. That would be great, please. Thank you.

OK. Good morning, Carlos. So overall, defense and supply chain Overall, I see some improvements on supply chain for defense and security business, and probably more on the hardware part of supply chain than on PCBs. So yes, overall, probably doing a bit better. We still, I mean, PCPs in particular, in Europe and in particular in France, still significant difficulties to get the right level of supply. on PCBs. Now, you have seen that it has not prevented us to deliver a level of revenue that is overall above expectations, but at the expense of a number of disruptions, difficulties, arbitrage within our various businesses, so a situation which in my view is not sustainable. So it's very important that we keep working very hard on this matter so that PCB availability will increase for us to come back to a more normal way of operating our plants, which is still not the case today. So in a nutshell, at this point, quite a low impact in terms of revenue, but a number of difficulty disruptions that is, of course, Not positive.

Okay, very clear. Thank you.

Thank you. We will now take the next question from the line of Hervé Truet from CIC Market Solutions. Please go ahead.

Yes, good morning all. Two questions as well on my side. Coming back on DIS, is there other geographic area where there has been a stocking outside the U.S., or is it purely U.S. problems on the payment card? And also, would you be able maybe to give us a bit of an update on how the dynamics at Imperva in cyber is doing especially on the first nine months or for the third quarter. And the second question is there has been renewed press articles potentially saying you might be interested again in BDS and some activities in BDS in Atos. I was wondering if you can give us maybe an update as well on that front. Thank you.

Okay, good morning Hervé. So let's start with DIS. This talking is essentially a North American and a US issue. This is not what we see in other geographies. Now it's also important to remind that the US is by far our largest market. This is why it is quite material. overall in terms of events for this banking and payments segments. Imperva is doing well, both in terms of integration. By the way, our head of Global Product Cyber Security, Sébastien Quiano, will be present at our Capital Market Day, and will present its business, and he will, of course, update you and how things are going on in Perla, but so far so good. With, by the way, a level of profitability which is a bit above what we were expecting. Some points on, I mean, press articles about Thales. One that changed our view on this matter, we said that We are not interested in buying BDS at Atoz. What we said is that within BDS there is a small size defense business which represents between 200 and 300 million euros of annual revenue. And we said that in case this business would be for sale, we would look at the case. I mean, we keep looking at a number of potential acquisitions, small size acquisitions across the board. I've just completed a very small size acquisition in the US from Boeing. This is quite a small one acquisition. There's not been any press articles. And overall, of course, Azatos is a French company. There is always a number of press articles. So my point is quite clear. We would be interested potentially on this quite small size defense business in case it would be for sale. Nothing more to say on this matter. All right.

Thank you very much. Thank you very much, Hervé.

Thank you. We will now take the next question from the line of Christophe Menard from Deutsche Bank. Please go ahead.

Yes, good morning. Thank you for taking my question. I had two, actually. The first one was just on the point you mentioned. The small acquisition you made from Boeing, can you elaborate a little bit more? I mean, you say small size acquisition. But at the same time, you're saying, yes, the 200 to 300 million is kind of small size as well. Is it the same type of size? And what is the rationale? Where is it coming from? Is it really something that you did as an opportunity given the situation at Boeing? Or is it something that I've been in the making for a long time. And the other question is on space orders. Can you update us on IRIS 2? Because we've seen a raft of order intake in the last two to three weeks in space, more institutional orders. When would you expect IRIS 2 to actually become an order for you? And can you provide any update on this?

Thank you. Okay, Christophe. So on your first point about this small size acquisitions that is buying a small size business at Boeing, it's a business that represents a bit less than €100 million of annual revenue. So you see it's quite a small size acquisition. This business is in particular in military electronic warfare, which is, as you know, one of our core business at Thales overall, with the intent to seek opportunity to develop in other geographies. in this case in North America, complementing pretty well our tactical radio, secure radio communication business for military purpose also in the U.S. As you know, I mean, when looking at defense activity status in the U.S., we are present today essentially on tactical radio communication. but also on naval and in particular on sonar, where we have a pretty strong position there. This is also where maybe you have in mind that we made the acquisition of a JV. A few years ago, we took over the share of DRS in a small size sonar business. which is for us a perfect go-to market for sonar business to the US. So this small size acquisition from Boeing is really for us to add a third layer which complements very well from a strategic and technological standpoint our tactical radio communication business. So that was the rationale and more than the I mean, on the side of this equation, it's more the fact that we keep looking at opportunities, small size opportunity, as I keep mentioning with, I mean, quite obvious acquisition criteria, expanding, presenting some geographies where we see a clear potential for growth, complementing our spectrum of technologies. easy to integrate and also with I mean the type of acquisitions helping in terms of overall growth with in our view also a decent evaluation. Space orders is true that there's been a few announcements in the last few weeks more on the institutional standpoint. We need to be a bit careful because In particular, when you talk about this type of announcements and business, the order intake can be split in a number of steps. So, of course, it's positive news, of course, and this is very much in line with what we keep saying about the good quality of the observation, exploration, and navigation segments at our space business, where we've got, in particular, the European Space Agency, quite leadership position and the three announcements that took place last week or I mean the week before, I mean for me it's quite a good demonstration the fact that this business is doing pretty well.

And on IRIS too, do you have any update?

IRIS Square.

Yeah, square, sorry.

Square. So, no, I mean, the European Commission keeps working pretty hard on this matter. We were not anxious, but we were questioning ourselves about, I mean, the new commission and the change of the commissioners. in charge of this topic. Now what we see is the open commission, the new one, I mean with the new commissioner being still quite active to bring this very large project forward. So at this point it is a potential pretty substantial opportunity At the same time, it is at this point just a potential opportunity, and as you have understood, Christophe, I think, we are very much focused on our cost adaptation program in order to bring this business back on its feet in terms of profitability. This, I mean, regardless of whether or not this Iris Square project will materialize.

Thank you very much.

Thank you. We will now take the next question from the line of Ross Law from Morgan Stanley. Please go ahead.

Yes. Morning, Pascal. Thanks very much for taking my questions. I have two, please. The first on sales and the confirmation of guidance, which implies a pretty meaningful deceleration in growth in Q4. You've called out DNS continuing at the sort of 8% to 9% rate. base, flat, low single digit, which is probably a little better than we were all expecting. So where is the big slowdown coming from in the rest of aerospace and DAS to meet your organic guidance range? And secondly, on orders, do you expect to record the Serbian Rafale deal in Q4? And what size of down payment can we expect there? Thanks. Okay.

So good morning, Ross. So on sales, overall, end of Q3, overall organic growth 6.2%. And we said that for the full year, it would be within five and six. So for me, we're quite close. I mean, we're slightly above full-year guidance, but for me, we're very close to this overall range from 5% to 6%. With, I mean, for me, what is probably better than expected is what I said about defense. On the other side, I mentioned that we are expecting a Q4 in Agenix that would be much less favorable for the reasons I mentioned. in particular at IFE, but also in our cockpit business, some slowdown because of the issues at our client that I've mentioned earlier. And overall, DIS, in my view, should be positive in Q4 overall. So when you put all of that together, I think that you will end up between five and six. That's probably where we expect to land. On Q4 bond payments, your question was specific to Rafal. So what we expect, I mean, in Q4 in terms of done payments is the WAFAL in Serbia that we have announced a few weeks ago. This is where we expect I mean, down payments to kick in, which would probably trigger, I mean, the recognition of the order in a queue for order intake. This is today, I mean, what I have in mind in terms of, I would say, a significant large export project in defense. Okay.

Thanks very much. Thank you.

Thank you. As a reminder, if you wish to ask a question, please press star 1 and 1. We will now take the next question from the line of Amérique Pulan from Kepler-Chevreux. Please go ahead.

Yeah, thank you. Good morning. Most of my questions have been answered, but there's one question that probably, since you put this partnership with Mistral AI as a first slide, what kind of internal productivity benefit or external opportunity can be derived from this partnership or significance for Thales? And since we're on AI, in the next few weeks, we're going to have this report by the hyperscaler in the AI space with gigantic data center CapEx and of course you're exposed to data growth with the cyber security so what kind of impact this AI boom is driving at Thales.

Okay, good morning first. It's a global question. I'm not sure that we'll be able to answer in just a few seconds. It's of course, I mean some topics that will come back in detail at our Capital Market Day. So please be patient and you will see and to reach the scope of what AI represents for Thales and I think that You will be amazed by the fact that we develop AI across the board, both internally, but first, I mean, to develop a business at our clients. Now, I mean, to be more specific about this announcement in Q3, partnership with this company Mistral AI, which is today, big startup but which has managed to develop quite effective LLM which also provide us with a very high level of protection and sovereignty which is for us in particular importance when it comes to defense and security business and and when you come also to internal processes so this partnership is first and foremost towards our own internal use usage of ai in our own internal processes whether it is support functions like HR, finance, legal, but plus also processes that can embrace industry engineering as well. At this point, it's probably too early to mention about what it means in terms of productivity, because if I would mention a figure, I think that it would be a bit dangerous. So let me stay at this point more on a qualitative tone. But what you need to understand is that for a company like Thales, also be able to capitalize on the partners that can also come up with quite a sophisticated LLM together with, I mean, preserving all the sovereignty aspects of AI development in a company like Thales is quite important. And this is basically what we're talking about on this matter. Now, no specific comment on the announcement of large hyperscalers about the need of investing on nuclear power production, but showing the development of AI. And once again, we'll come back on this matter on November 14th. with potentially also some demos on this matter. Great, thank you.

Thank you. There are no further questions at this time. I would like to hand back over to Pascal Bouchiat for closing remarks.

Okay, thank you very much. So let me conclude this call by stressing that we warmly invite you to physically, if you can, otherwise remotely attend to our 2024 Capital Market Day, if you didn't already register. So this Capital Market Day that will be held in Paris on the 14th of November, starting from noon. There will be, as I mentioned, many product demos and we invited each of the heads of our business units to speak about the activity and to answer to any of your questions. And I will also, as you know, give you further granularity about our 2028 trajectory. Very excited to welcome you at this Capital Market Day. In the meantime, don't hesitate to reach out to Alexandra and her team if you have further questions. Since our Capital Market Day is coming very soon, we'll enter back into a quiet period starting from the 30th of October after market. I wish you all a very good day. Bye-bye and see you back on November the 14th.

Thank you. Ladies and gentlemen, if you didn't have a chance to ask your question on today's call, Please do not hesitate to send your question to talusgroupinvestorrelations at ir.talusgroup.com and we will get back to you as soon as possible. Thank you all for your participation. You may now disconnect.