Temenos AG

Good afternoon, good evening everyone. Thank you very much for joining our Q225 results call. I would just like to offer everyone a brief apology. It seems there was an issue with the conference call dial-in numbers that were sent out. New numbers have been sent out to everyone, so hopefully more people will be joining. So sorry about that. We will make sure that it's fixed for the next call. Nothing further from me. I'm going to hand straight over to Jean-Pierre to talk about the quarter.

Okay. Thank you, Adam. And good evening, good afternoon. Thank you all for joining us for our Q2 25 results call. I would like to talk through our key performance and operational highlight for the quarter before handing over to Takis. So let me start with an overview. I am very pleased with our performance in Q2, which means we deliver a strong first half. The sales environment was stable throughout the quarter. We were able to convert the orders which slipped from Q1, and as well executing a number of larger deals. I was especially pleased with our performance in Europe, as well in the Americas. We had good traction with our existing base and also won quite a lot of new logos. We continued executing our strategy crop map, investing across the business, and make new senior hires in sales and product and technology. This is largely self-funded through our cost program. So even with this investment, we had strong growth in our profitability, driven by the strong revenue growth and cost control. In May, we held the Temenos Community Forum, which was very well attended by clients and prospects. We made several important AI product announcements, which I will give some details on. And I was pleased to announce the sale of Multifon closed at the end of May as planned, as we continue to rationalize our product portfolio. So with a strong H1, we have raised our full year guidance and confirmed our 2028 targets. So now I would like to highlight a couple of deals we announced this quarter. We signed Banco de Amazonia, a large regional development bank in Brazil for corporate banking, payments, and digital. This is a marquee win for us in LATAM, and we are supporting them across the business, including retail, SME, and corporate banking. Their main objective of implementing Temenos is to modernize their core banking infrastructure, diversify revenue streams, and expand digital capabilities beyond their current physical footprint, positioning themselves as a full digital bank with national reach. And they chose us for our modular platform, strong banking compliance, and our deep functionality. So overall, a great win. In APAC, we announced a deal with EastWest Bank, moving to Temenos SaaS Core and Digital for retail, SME, and corporate. For the digital platform, they are replacing the current leading global front-of-piece provider with our digital platform. And they're wanting the scalability and efficiency of our platform, and as well, the opportunity is given to them to expand into new segments, including wealth. Indeed, we have some good traction in the wealth space with a number of deals signed, in particular in Europe, and that will be a focus for us going forward. Looking at go-lifes, this increased to 81 this quarter, up from 70 in Q1. This included Raiffeisen Bank going live in Bosnia-Herzegovina, as they continue to roll out Temenos core banking across the operation. They are already live with Temenos in other Eastern European markets, including Poland. Now I would like to touch briefly on Temenos Community Forum, our flagship client event. We held the main event in Madrid with two regional events in Miami and the Philippines. The first time we have taken TCF Global, reflecting our strong profile and the strength of demand for our solution around the world. We have nearly 2,000 attendees, including hundreds of clients and prospects, so a very strong level of attendance. We made some important product announcements during this event. We launched Temenos Product Manager Copilot, a GenAI assistant that integrates Microsoft OpenAI service and is embedded with the Temenos Retail Core Banking solution. With this, banks can rapidly design, test, launch, and optimize financial products using GenAI. We also launched our FCM AI agent to detect, investigate, and prevent sanctioned transgressions against global and domestic watch lists. This product was developed in collaboration with the Tier 1 European Bank. And this GenAI agent allows them to reduce false positives and evaluate screening alerts in real time. I was pleased during this quarter that Temenos received several notable awards from leading industry analysts and journals. I would like to highlight a couple of these in particular. Temenos was named best-selling core banking provider for the 20th consecutive year by IBS Intelligence. We are ranking number one in 13 categories by IBS, including core, digital, payment, and wealth. We are also named best core banking system at Banking Tech Awards USA. This is particularly important to me as it demonstrates the strength and depth of our U.S. banking capabilities at this stage in the execution of our U.S. strategy. Lastly, Time Magazine ranking Temenos as fourth most sustainable company in the world in their annual ranking of the top 500 companies globally. We are the highest ranking Swiss company and the only core banking software provider in the top 40. This reflects our approach to sustainability, which is really central to the way we operate as a business. Finally, I would like to give an update on the execution of our strategic roadmap. Since opening our innovation hub in Florida, over 50 new developers and architects have joined Temenos in Q2. and we will make further hires on the coming quarters. We also brought in some strong senior talent, including a new chief security and risk officer and chief technology officer, as well as hiring over 25 new salespeople across the globe. And of course, we will continue to invest in our product and strategy roadmaps. for corporate and wealth in particular. Now, I will hand over to Takis to talk through the financial highlights.

Thank you, Jean-Claire. So, starting with slide 12, we had very strong revenue growth this quarter, both for subscription and SaaS and for total revenue. A few things I would like to highlight in particular. Firstly, we significantly exceeded the Q2 25 guidance we gave back in April. We were able to close the slip deals from Q1, and we benefited from a stable sales environment and good execution across most regions, with Europe and the Americas being a particular source of strength. We also closed the large deals we had in the forecast. Please note that we still had the headwind on SaaS from the down selling to our BNPL client. So to deliver 24% growth in subscription and SaaS, was a very strong performance. It means that subscription and SaaS grew 12% in H1-25, and this underpins our guidance increase. Total revenue grew 16% in Q2-25, benefiting from the strong subscription and SaaS revenue, but also another strong quota for maintenance, largely due to strong sales of our premium maintenance offering. We also had mid-significant growth in services. Total revenue grew 10% in H125, which provides us a good setup for the second half. Moving to slide 13, our EBIT growth of 28% in the quarter was driven by the strong revenue growth, as well as the good performance at cost level. Our costs did increase by around 15 million year on year. This was driven by a combination of increased investments variable accruals due to higher revenues, mainly for commissions and bonuses, and marketing costs largely linked to TCF, our flagship client event. However, we continue to have a good level of offset by the positive impact from our ongoing cost savings programs. EBIT grew 19% in H125, and this was reflected in EPS, which grew 36% in Q2 25 and 28% in H1 25, also benefiting from the lower share count. Looking at ARR, this has benefited from the growth in subscription licenses and maintenance in particular and continues to increase as a percentage of our last 12-month product revenue. Per end of Q2 25, Our ARR equaled 89% of our product revenue, up from 85% in Q2-24. This gives us excellent visibility both on future recurring revenue in the P&L as well as our future cash flows and, as this is a 12-month forward-looking metric, helps underpin our 2028 targets as well. Turning to slide 15, I would like to highlight a couple of additional points here. ARL has grown 11% year-on-year, and we expect this to accelerate further in the second half of the year in line with our full-year guidance based on the strength and visibility of our pipeline. I would also like to flag the EBIT margin, which expanded 400 basis points in Q2 2025, even with an 8% increase in operating costs. Given the strength of H125 and looking ahead at our revenue trajectory and investment program, we now expect our EBIT margin to be up at least 50 basis points for the full year. On slide 16, we have like-for-like revenues and costs adjusting for the impact of M&A and FX. The figures are all organic and therefore in line with our constant currency growth rates. We benefited from further improvement in our services margin, and whilst our product costs were up quite a bit with all the investments we are making, it was also outpaced by the strong growth in product revenue this quarter. Our net capitalized development costs also continued to decline, down to 1.9 million in the quarter. In terms of ethics, there was a roughly 1 million benefit on EBIT this quarter, largely driven by the euro strength and weakness in the European rupee. On slide 17, net profit was up 31% in the quarter, in line with EBIT, with higher tax charges partially offset by lower financing costs in Q2 2025. The tax rate in Q2 2025 was 19.5%, And we are guiding for a 2025 reported tax rate of 15 to 17%, as we expect a one-off tax benefit of around 15 million from prior years. However, we expect this benefit to only materialize in 2025. The normalized underlying tax rate excluding this one-off benefit remains unchanged at 19 to 21%. EPS grew by 36% ahead of net profit growth as it did last quarter, again due to the lower share count. Turning to the next slide, we had free cash flow growth of 8% in the quarter and free cash flow grew double-digit in H125. We have already absorbed 75% of our expected full-year restructuring charges in the first half of the year. Driven by our strong growth in deferred revenue in H125, we expect free cash flow growth to accelerate in H225 to deliver our full year guidance of at least 12% in line with our plan. Moving to slide 19, we show the changes to move liquidity in the quarter on a reported basis. We generated 79 million of operating cash. and received about 80% of the multifunds purchase pricing cash in the quarter, with net proceeds of 319 million. We also paid the 2024 dividend and bought back 160 million worth of shares, and so ended with 305 million of cash on balance sheet. Our leverage stood at 1.2 times at the end of the quarter, down from 1.3 times at the end of Q125, and well within our target of 1 to 1.5 times. We expect to end 2025 within our target leverage range, so we have flexibility and optionality to do both on M&A, though this is rather unlikely for this year. Next, on slide 20, a couple of items to highlight on our balance sheet. We received an investment grade rating from S&P, adding to our existing investment grade rating from Fitch, and we signed a new revolving credit facility for 500 million. We now have no further refinancing requirements until 2028. The bond maturing in November of this year has already been refinanced by the bond issued in March of this year. We continue that pace with the share buyback, purchasing 136 million Swissy worth of shares by the end of June, out of a total of 250 million And our net debt stood at 539 million at quarter end. Moving on to slide 21, we have raised our guidance for 2025 to reflect a strong first half, stable sales environment, and visibility and strengths of our pipeline. Our guidance is non-IFRS and in constant currency, except for EPS and free cash flow, which are on a reported basis. Both the 2025 guidance And the 2024 pro forma numbers exclude any contribution from multifunds. And free cash flow is, of course, under our standard definition, including IFRS 16 leases and interest costs. We are guiding for subscription and sales to grow at least 6% for the full year, up from 5% to 7% previously. We have also raised our EBIT guidance to at least 9%, up from at least 5%. And lastly, we have raised the EPS guidance to 10% to 12%, up from 7% to 9%. And we have kept ARR and free cash flow guidance unchanged, with both growing at least 12%. Slide 22. Lastly, we have reconfirmed our 2028 target. With that, operator, can we please open the call for questions?

Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their telephone. You will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press star and 2. Questioners on the phone are requested to disable the loudspeaker mode and eventually turn off the volume from the webcast while asking a question. In the interest of time, please limit yourself to one question per person. Anyone who has a question may press star 1 at this time. The first question comes from Sven Merck, Barclays. Please go ahead.

Good evening. Thank you for taking my questions and congratulations on the good quarter. I was wondering whether you can frame how we should think about the full year guidance following the strong second quarter. The implied guidance for H2 is for very limited growth. Is this conservative, or does this mean you close most large deals now early in the year than expected? And how is the pipeline looking for H2 in terms of the weighting towards larger deals? Thank you.

Hi, Sven. Let me take this one. If you remember how we started the year when we said with the original guidance we wanted to be prudent given the macroeconomic uncertainty, and I think this is what we are doing again right now. There is clearly a strong pipeline in place. We feel good about the quality and the size of the pipeline. But we just come out of a pretty volatile first half in terms of own performance, but also the macroeconomic uncertainty. So while we're not explicitly flagging those risks anymore, and we feel comfortable, I think we clearly prefer to remain prudent. And we still have some large deals in the pipeline, especially for Q4. And finally, you know, the guidance is for at least 6%. And clearly, if you exclude the still sizable impact of this BNPL customer this year, I think we would deliver very robust growth. So for now, at least 6% is the right guidance for the full year. And maybe to give you a bit more color, clearly there is Q3, we're aware of the, let's say, more benign comparison base. So for Q3, while not giving explicit guidance, but Q3 should be in line with the full year guidance on subscription and sales.

Perfect. Thank you.

The next question comes from Frederick Boulan, Bank of America. Please go ahead.

Hi. Good evening, Jean-Pierre and Takis. If I could come back a bit more specifically on the second quarter, if there's any specific elements that have impacted your revenue down to a degree in the recent sustainability there or down to some specific contract phasing. And if you can, I would call on the SaaS trends in general and the negative trends in Q1.

Good evening, Frederick, Jean-Pierre. So, in fact, Q2 was really a good quarter where we have different very positive factors. First, a strong execution within a stable environment across the board, very pleased with Europe and America. Second, we benefit as well a couple of slip deals from Q1. And third, we have a very good conversion rate of our larger deal as well. So in a way, if you combine these three elements with the context of the macro, which was stable, in a way that explains we have a good and strong quarter. Of course, in a way, it's as Takis mentioned, that will allow us as well to have a strong H1 and to raise our guidance for the full year.

Thanks. And if I may, a quick follow-up. You didn't change the free cash flow guidance despite a strong EBIT. We've seen a pretty big jump in BSOs, 250. Can you elaborate on any second factor in the free cash flow that means you're not seeing a similar grade of the free cash flow?

Yeah, Fred, let me take this one. The cash flow growth of 8% was actually in line with our expectation, actually slightly better, and we have now achieved 10% for the first half. Keep in mind, you know, we have taken 26 million of the structuring costs out of the 35 million for the full year already in H1. with, you know, substantial cash outflow linked to that. So if you were, you know, ex-restructuring, it would be a very strong pre-cash flow already. So second half clearly will accelerate just because of that. And clearly you need to think about a strong subscription and SaaS growth does not impact free cash flow immediately. There is a timing difference. You get the full immediate benefit from subscription on the P&L. There is no change on the cash from that. Again, it's at least 12% growth. So the increase on the top line one from five to seven to at least six, you know, clearly does not as such impact free cash flow per se much. Okay, thank you very much.

The next question comes from Levin Josh, Autonomous Research. Please go ahead, sir.

Good evening. Two questions for me. Jean-Pierre, you've been at the company for over a year now. You've made a lot of personnel changes. You've made a lot of changes to internal systems, the products. As you think about the next year, where will your focus be as a CEO? And then the second question, a follow-up on those larger deals in 2Q. I think, Takis, you just mentioned there might be some larger deals in 4Q. Should we think of larger deals as sort of more kind of one-timer, or are there going to be larger deals now? Is that more of an ongoing thing going forward? And if so, why? Thank you.

Yeah, thank you for your comment as well. So, yes, I'm pleased with the progress that we have done in the company. We are executing the strategy we announced at Capital Market Day. It's basically a good balancing act and built on solid foundation of the company. and as well to invest in the market we would like to invest, like in Western Europe and America as well. So we put the company in the order of marching order to achieve that. We will continue to do that. As you have seen, we are invested a lot in the U.S. market with opening of the Innovation Hub in Orlando with 50 new developers. We have recruited as well 25 new salespeople, some of them in the U.S., which is up and running today. And, of course, AI is a good and interesting plan for us. You have seen as well, we have announced already a couple of products which are available now, by the way, in TCF in Madrid with... FCM AI agent and as well this Temenos product manager. We will continue to invest on AI. At the same time, and we need to do two things at once, continue to please our install base, continue to invest on the product and the customers that we have as well, to have a good mix between existing business and new business as well, and as well a good mix between existing people and new commerce and new leadership that, I mean, bringing as well additional flavor in our execution. So it's basically what I intend to do in the next year. So for the second part, I will ask for Takisamin just to give you some color as well.

Hi, Jos. Let me try again. I'll try a response on larger deals. Clearly what we have been seeing for the last two years is that we have seen, especially in Europe, larger deals coming into the pipeline, not just Europe, across the world, but clearly you have an overweight in Europe, larger deals coming into the pipeline. Now as Jean-Pierre has mentioned in his initial response, the timing is quite unpredictable, and if they get realized at all. So the way we look at large deals is, yes, there is a large deals pipeline, but we always assume a lower conversion rate for those. And we also look at them from a pipeline perspective. Clearly, the timing you know, can be such as we have seen in Q2. They get converted and then you have a very strong quarter. But we look at them, you know, from a full year basis. So, yes, we always assume that, you know, a number of large deals are also converted in every, you know, full year guidance we give. With a number of those having been signed in Q2, clearly that sets us up well for the full year. There are still some, which is good, there are more large deals coming into the pipeline. So if we maintain a conversion ratio, I think that bodes well for the second half and the next year. So there is still some dependency on on larger deals, but clearly lower today in July than in February.

Let me add that I am pleased with the progress I've seen as well. We put in place institutionalized a larger lean prospecting behavior as well within the sales team. And second as well, better and strong execution as well in very, very thorough review of the larger deals. It doesn't mean that, in a way, we have a 100% commission rate, as Takis mentioned, but we have better visibility about the development and the closing of the larger deal. But at the same time, you need to have in mind that for the banks, it's a 10-year, 15-year investment, and in a way, we are quarterly driven, so we need to adjust as well the market demand, and the banks are investing... on our product and technology for a long time and as well basically the quarterly constraint of a listed company.

Thank you very much.

The next question comes from Toby Hawk, JP Morgan. Please go ahead.

Hi, thanks for the question. Just coming back on the Q2 dynamics, could you just give us a sense as to how the different pieces within subscription and SaaS trended? Did you see any reacceleration in the SaaS growth? And then on the traditional software licensing side, what was the sort of value of the deals that slipped from Q1 that you closed in the end? And then how much of a contribution did you see from the larger deals that you closed out? Thank you.

Yeah, hi, Toby. That's a lot of detail you're asking for. So on the amount of slip deals from Q1 of Q2, we had given at the time of the Q1 reporting some indication what we had closed in the first few weeks. Everything has closed by now, not to give you a precise number. I think at that point in time, there was an estimate anywhere between 5 and 10 million, No further comment to this. In terms of the larger deals, sorry again to disappoint. I think that's a level of granularity. Clearly, they had some contribution, but it wasn't just the large deals which drove the upside to our guidance. It was an overall strong execution across different sizes of the deals across most regions. So it was something we feel very good about. And then finally on the, you know, on the differentiation, subscription had a very strong growth quarter and half year. In our SaaS, I think if you look at the Q1 and Q2 of last year, we clearly can say, you a pretty good sizeable growth, double digit, so clearly it was not just subscripts and which drove that performance.

Thank you.

The next question comes from Charles Brennan from Jefferies. Please go ahead.

Great, thanks for taking my question and congratulations on a very nice quarter. Can I just ask on sales execution, you've mentioned it a couple of times, but I'm under the impression that you've moved your sales commission plans this year to half yearly rather than annual. Do you think that's contributed to some unnatural success in the second quarter? And do you think we have to pay for that later in the year and in maybe Q4? And is reduced conversion reflected in your guidance as a consequence of that change in plan?

Yeah, thank you for the question. So, yes, you have a good memory. We changed the commission plan to have better linearity, which was the main objective as well, and to align, I mean, the sales incentive to our linearity. So it's not by quarter, it's by half. So, yes, we have seen a good motivation for salespeople to close business in the first half. But I didn't see a lot of... even no, I mean, pull forward from H2 as well. It was basically a good incentive as well to increase linearity, linearity of the health, but linearity within the quarter as well, because we will act in month one that people are closing some business, and we put in place some incentive as well to close business as early as possible. In such a way, we are less dependent on the the last day's deal that in a way we don't have the stance as well to well negotiate to the customers. But having a look on the pipeline, we didn't deteriorate at all in the pipeline of H2. So I am pleased with the strong execution we have demonstrated in first half. As well, as I mentioned earlier, we have developed as well a culture of larger deals. We are not yet at the point that we'd like to be, and it's part of the progress for next year, but we have doubled down our effort to have in advance, because these deals are a sell cycle of 12 to 13 months, as well a pipeline of larger deals for 26, 27 years.

On the guidance, Charlie, and you know us very well, clearly in July we have a pretty good view of what we plan to close for the rest of the year, especially Q3, which we said, you know, what we are seeing there. We started the year by... being prudent. In July, we still want to remain prudent. There is still some economic uncertainty out there, tariff volatility. And clearly, while not flagging those rigs in particular and feeling comfortable about visibility, size, quality of the pipeline, I think we want to remain prudent. And the guidance is for at least 6%. Let's do Q3 first and then see where we stand in terms of being prudent for the full deal.

I think I'll speak for everyone when I say we'd much prefer the risks on the upside than the downside. So good job on the quarter.

The next question comes from Mohamed Mouawala from Goldman Sachs. Please go ahead.

Thank you. Hi, Jean-Pierre. Hey, Takis. Nice job on the quarter. My question was really around that sort of forward pipeline you talked about. Typically, larger deals for terminals tend to be in the kind of low to mid single digit millions. I know you've made changes to the sort of sales capacity, particularly in the Americas. You talk about the 12 to 13 sort of month sales cycle. How do you look at some of those deals in sort of Q4 you talked about? Are there any more outsized strategic deals? And as you sort of look at the pipeline development, pipeline coverage, since you made those changes back end of last year, as we look kind of a little further forward into 26, 27, can you give us some color around your kind of optimism around that sort of delivery of the top line more confidently? Thank you.

Let me take the first part, Moe. I think the way we look at larger deals is, as we mentioned before, it's a portfolio. And we assign more conversion rates given the higher level of uncertainty for those. So in terms of size, we always said larger deals will be 5 million plus. Everything below, we will consider as, let's say, more regular deals. to be on the safe side, larger conversion ratios for larger deals than for the regular ones. And usually you also assume larger conversion ratios required from new logos versus deals with existing customers. I think what you need to consider is, and Jean-Pierre talked about the increased number of salespeople. This is clearly feeding into a growing pipeline, obviously, especially in the Americas, but specifically we'll have to see, you know, how quickly that converts into deals. We'll provide, as usual, the update for 26 in February.

Yeah, let me complete with that. I think at Sales Kickoff, we introduce, in a way, the confidence, optimism about larger deals. to create as well value selling, first of all, to deliver the right value to the customers, and to remove a couple of mental barriers as well that some salespeople should have as well, not to engage with the right C-level executive and to position the real value of our solution. And on top of that, we put in place as well some very serious incentives for the salespeople when they close larger deals. So if we combine all these elements of culture, I mean, management incentive and sales as well, we recruit a couple of new sales as well. They have the confidence and the experience to close a larger deal. It's going a very good combination of people. So it's not yet the – I'm optimistic for the next year as well as we recruit – a team of, a prospecting team of salespeople in the U.S. They have an average 15 years of banking software experience and enterprise sales experience. And I'm pleased with the pipeline development that I've seen in the U.S. as well. It's not factoring in FY25. It's starting to pay off in 2026. But all these elements, I mean, combine to, in a way, a better execution of larger deals through the pipeline development and the closing. Got it. Thank you.

The next question comes from Dore Loren from Capital Shipro. Please go ahead.

Yes, thank you. Good evening, gentlemen. My first question is on the SaaS business, on the new business, if you could give us a little bit more granularity on the profile of the new customer, whether it's tier 4 banks or still some fintech, anything more precise on this would be very helpful. And my follow-up is back on the growth you delivered the ninth quarter, $25 million extra in subscription in SaaS versus last year. I was wondering about the shape of this $25 million. Shall we see that as like three deals or four deals versus no deals a year back making the growth, or is it much more spread throughout the organization? Thank you.

Okay, so I will take the first part of the question. So in a way, I will give you an overview. So it's pretty similar to what we observed on the prior quarters as well. We have more or less one-third of Tier 1, Tier 2, and two-thirds of Tier 3 and below. And from the mix between new customers and existing is mostly, I mean, two-thirds, one-third, right? But what really pleased me is that we were able, across the different geographies, really to have a strong execution across all the region, more or less. So it's not due to one magic deal. It's really strong execution between these different business analytics. For the second part of the question, maybe Takeshi will take it.

Yeah, Laurent, I'm not sure I got... the question correctly about the 25 million. Can you repeat that?

Yes, in fact, this is more or less the additional subscription and SaaS sales versus Q2 of last year. So it's the structure of this 25 million. Basically, I'm trying to get whether this very nice quarter was really due to just a small number of deals and you're still dependent on a small number of deals, or if the company is much more diversified now. And also the other point was on the SaaS customer. I was wondering the profile of this customer, the new one that you just managed to sign.

Okay, now I got that. Nice try. So the 25 million last year, if you remember what we said, there is clearly a headwind which we have from this BNPL client throughout the year, which we had in Q1 and Q2. and in Q2. So that's actually demonstrating that there has been considerable growth on the subscription line, given the headwind on SaaS. Now, we always, and the number of deals we sign in any particular quarter is pretty large. And as Jean-Pierre said, we had a lot of new logos as well. and the good split between new and existing. For the full year, I think we still, and that's the previous comment, we still believe and we're still going to get, as we have shown, and we still incorporate a number of large yields into the full year guidance. I think that has always been the case. I wouldn't call it, you know, a particular dependency on, you know, any specific size deal in that respect. And also the growth, which we have mentioned, has been pretty broad-based. So, you know, the tiers have all grown in the regions. I think APAC had a very strong comparison. but the other three regions were, you know, were doing a very great job. It was just very good business execution as you would hope for, you know, in any particular quarter.

Okay, thank you.

Ladies and gentlemen, this concludes today's Q&A session. I would now like to turn the conference back over to Jean-Pierre Broulard for any closing remarks.

Okay, thanks a lot for joining us tonight and I look forward to seeing each of you very quickly. Thank you.

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