Rai Way S.p.A.

Good afternoon. This is the Coral School Conference Operator. Welcome and thank you for joining the RyeWay First Hope 2022 Results Analyst Conference Call. As a reminder, all participants are in listen-only mode. After the presentation, there will be an opportunity to ask questions. Should anyone need assistance during the conference call, they may signal an operator by pressing star and zero on their telephone. At this time, I would like to turn the conference over to Mr. Giancarlo Benucci, Chief Corporate Development Officer of Flyway. Please go ahead, sir.

Thank you, operator, and good afternoon. Let me start thanking all of you for joining us today and welcome to our FirstUp 2022 results presentation. As usual, Aldo Mancino, the CEO, will start with the highlights and figures of the period and At Alberto Pellegrino, the CFO will then illustrate the financial details, and at the end, we will welcome your questions in the usual Q&A session. Let me now hand the call over to Aldo. Please, Aldo, go ahead.

Thanks, Giancarlo, and good afternoon to all of you. Let me start by saying that we are very pleased with the performance of the first half of the year and with the developments in the initiatives you are carrying out. The development investments of the last few years in the traditional broadcasting business, both for RAI and for third parties, are continuing to pay off and allow us today to present further tangible EBITDA growth in the second quarter, even in the context of an unprecedented, at least to my best knowledge, increase in electricity prices, which is one of our main cost items. A second quarter that also brings positive updates on operational activities, particularly with regard to business with third-party customers. Therefore, despite the usual attention we must give to certain elements, such as the dynamics of energy market, the results for the first half of the year and the nature of our business model allow us to look to the future with optimism. In particular, the first half of 2022 showed a remarkable growth, even slightly above our expectations, with revenues growing by 7%, benefiting from the contractual step-up relating to the farming for rye, which began, as you may remember, in the second half of 2021, benefiting also from the inflection boost, and the growing contribution from the new regional frequencies business, which pushed revenues from third parties in the second quarter to a double-digit growth compared to the same period of last year. As expected after the expiration of the fixed price contract at the end of March, in the second quarter the growth in electricity prices started to have an initial increase significant impact on our P&L as well. Despite this, thanks to the growth in revenues just highlighted, tighter cost control that we started at the beginning of the year in order to mitigate the hike in energy prices, and some non-recurring benefit also on the cost side, we have been able to secure adjusted EBITDA growth of eight 0.5% in the second quarter, bringing the total over the six-month period in absolute terms to more than 8 million euros above last year's level. In terms of investments, the level of development capex was basically maintained at the previous year's levels with a gradual reduction in activities for network upgrades, rebalance, by the increase in investments for third parties, mainly for regional refarming, but also with the first purchases related to the development of new infrastructures. From an operational point of view, after almost three years, refarming activities for RAI are nearing completion. Frequencies have been released throughout the territory. The new multiplexes are already operational in DVB-T standard with National multiplex coverage now over 95% as a result of the extension project. We are now finalizing the upgrade of the last equipment of DVB-T2 technology. The macro-regional multiplex already at 100% coverage. The two national multiplexes now at 80% in order to have T2 ready networks. ready for the time starting 1st January 2023, when the authorities have decided to start the switchover. But as anticipated, today's most interesting update mainly concerns initiatives for third-party customers. First, at least as they have already begun to contribute to our numbers, the regional networks. in the seven geographical areas where the frequencies have been assigned to railway are all now in operation. As you may recall, we focused on the areas that, based on our analysis, appear to have the greatest commercial attraction from a point of synergy with railway infrastructure and local reliability. The results are proving us right. with prospects even slightly higher than initial expectations. Sold capacity, already expressed at full T2, is in fact close to 100% in all regions, with revenues gradually coming into full swing in a couple of years. In terms of activities with mobile network operators, the goal of our industrial plan is a progressive stabilization, as you trying to address the two main elements of pressure, pricing from one side and technical optimization of the network from the other side through a progressive realignment of tariffs, possibly through the activation of new POPs at incentivized rates and the further extension of volumes also in view of the rollout of the new 5G networks. Exactly on these principles, Negotiations with the most relevant M&A clients are in a very advanced stage, and we should finalize the contract renewal in the coming weeks. All in all, we expect a little bit of further pressure in the very short term, but to reach, at the end of the new contract period, revenues equal or above the current level. At the same time, last month we finalized a framework agreement with Iliad, Iliad is already one of our customers, although on a still number of sites, considering that so far their focus has naturally been on coverage of urban areas with higher traffic density. But the next step, the next phase, will be to complete the network even in the areas, the rural ones, most covered by our infrastructure. possibly using a decent number of our sites. This is a framework agreement with no commitment, but the level of interest in our portfolio gathered so far makes us confident that the client will contribute to the goal of stabilizing the business with M&AOS. So broadcast business, tower hosting, and let me conclude with new infrastructure services. In March, during our full year results presentation, we provided an update on the status of the major organic development initiatives we are putting in place to expand our infrastructure and service portfolio, diversifying the business and gaining exposure to higher growth segments, namely the edge data centers, the CDN, and the hyperscale data centers, along with the upgrade of the backbone that will be used both to offer connectivity and to our customers to interconnect by fiber optics, all these are new assets. We are happy to share with you today that in addition to the already ongoing rollout of the new backbone, after the design phase we have started the procurement procedure related to the construction of the first set of edge data centers. and the provision of technology components, hardware and software components of the CDN on the content delivery network. The initial set of the edge data centers, five to be precise, starting from the north part of Italy, will account for 1.6 megawatts of geographically distributed capacity and around of 20, 30 million of estimated investments within 2023. As said, this is only the first part of the project that will progressively double the availability, the available IT capacity to around three megawatts by 2025. We will refine our projections with the outcome of the procurement phase, but we expect a return on deployed capital above 10%, the level of 10%. As for the edge CDN, the approach scalability and equally important estimated return on capital are more or less the same. We aim to have a first release based on a decent number of edge nodes by the end of 2023. and then progressively extend the capillarity and the quality to address Ultra HD linear video contents and gaming applications. For this project, CAPEX, for the setup of the network, of the CDN network, are expected at around 20 million, of which up to 10 to be spent by next year, 2023. In terms of expectation for 2022, the more than €8 million growth in adjusted EBITDA recorded in the first half represent a good buffer to absorb the further sharp surge in electricity prices witnessed since the beginning of July. The target of adjusted EBITDA growth remains achievable, although more challenging, of course limited in absolute value and dependent on mitigating actions on other costs. At the same time, however, these dynamics of the electricity prices are also reflected in inflection, both directly on energy goods and indirectly through the impact on other products. And the link of the CPI included in almost all of our contracts will also allow us to recover possibly more than the cover, in 2023, so only with a time lag, the headwinds that hurt us in 2022. And I have already elaborated on slide 5, 6, and 7, which graphically summarize what I have just commented on the configuration of the new broadcast networks operated by REWE following reframing and updates on new infrastructure and services. So before handing the floor over to Adalberto to give more details, I would move now to slide number eight to summarize the key financial of the first half 2022. Let's start with core revenues that reached 121.2 million euros, 7% higher than the first half of last year because of the already mentioned effects. While adjusted EBITDA grew by 11.9% to 78.2 million euros, confirming, as in the first quarter, the double-digit growth at bottom line, where net income reached 37 million euros. Investments as June 30, supported by reforming activities both at national and regional levels, showed a recovery after delays in the first quarter that mainly affected maintenance graphics, driving net debt at 120 million euros, also factoring in the 65.1 million euros dividend payment and the calendar shift to tax payment to July. Lastly, recurring free cash flow was strong in the period with cash conversion close to 95%. And with this, I'll hand over to Adalberto to provide you with details on financial performance. Please, Adalberto, the floor is yours.

Thank you, Aldo. Good afternoon to everyone. So, starting from slide 9, core revenues continue the consistent growth that began in the first quarter, coming out above 1%. €121 million, an increase of 7% compared to 2021 levels, so confirming the trend we have already commented in the last call. More specifically, on the right component, we can see that the acceleration in growth, plus 7.2% year-on-year, was driven by the anticipated reforming step-up, which I remind you has been effective since the 1st of July 2021, and then by the positive CPI dynamic as well. Very good news from third parties' revenues. In our last call, you may recall that we commented a reduction of 2%, and we anticipated that we expected in the rest of the year a reversal of this negative trend. So now, looking at the first six months, we may appreciate the trend reversal, with revenues grew by 5.7%, revenues from third parties, reaching 16.6 million euros, meaning more than a 13% increase, a double-digit increase, just in the second quarter vis-à-vis the same quarter last year. And this was supported by the contribution from the regional refarming project already commented by Aldo and expected also to grow further in the future. Moving now to the cost slide, slide number 10. You can see how we address headwinds arising from soaring electricity costs through tight cost control and leveraging also some non-recurring benefits. As a result, total cost in the first semester came out at 43.4 million euro, slightly lower vis-à-vis the 44 million recorded in the first semester 2021. In particular, in the first half, excluding non-core items, personnel costs remained relatively flat, with a stable account, Underlying other operating costs were up 4.4% plus 12% only in the second quarter, boosted by an increase in the electricity bill in the second quarter alone, despite a significant double-digit reduction in consumption due to the new, more efficient network that we have now in place. As I said, strict cost control, consultancy, maintenance, and other expenses which allow us to limit the negative impact together with some one-off positive priority adjustment. Now moving to the profit and loss, slide 11. Net income, as you may see, reached 37 million euros, recorded a double-digit growth. 11.5% in the first half, mainly reflecting a higher top line, the stronger profitability, close to 65%, up by 285 basis points vis-à-vis the previous period. Then we have higher DNA following the recent investment activity, and the tax rate back to normal levels, 24%. Last year, we had an extraordinarily positive impact from certain COVID-related tax relief, and the tax rate was 26.3%. Moving now to the cash generation, net debt, you may see our leverage is progressively increasing as expected in our industrial plan. with net debt at the end of June standing at €120 million, 36.8 out of which related to the IFRS 16, after the payment of €16 million dividend and €26 million of CAPEX, with tax payout falling this year in July. Recurring free cash flow to equity recorded a new historical high for the ALF, just a touch below €54 million. Now, before I turn the floor again to Aldo for the full year guidance, I would like to share with you some thoughts about the electricity spending trends for the rest of the year and eventually also beyond. So let's go to the following slide. My goal is to give you a comfortable picture of what lies ahead. On the one hand, going over the dynamics we have seen so far in terms of both electricity spending impacting on our costs and inflation, also linked to the electricity prices, of course, and impacting on our revenues. And on the other hand, looking at the recent futures level on energy prices, which I must point out are as volatile as ever. as I'm sure you know very well. So taking as a reference the electricity bill of about 12 million euro in 2021 that you may see on the left of this slide, we were still benefiting from the old fixed price contracts in the first quarter of 2022, while the energy markets were already overheating. I would like to highlight now, starting from April 1st, as also we commented in the past, the price for the raw energy component continues to rise, averaging in the second quarter a level of more than four times what we were used to have, and unfortunately now well above €400 per MWh. There are, however, two pieces of good news. First, At company level, the already commented reduction in energy consumption, which will stand at around 75 gigawatt hour at the end of the year, with a double-digit reduction, and potentially decrease slightly more in 2023. Second, at country level, the government's cut in the other component of the energy bill, linked to distribution and dispatching, from 75 per MWh in 2021 to an expected level of €45 in 2022 per MWh, which it is assumed will at least be confirmed going forward if the raw energy prices do not decrease, pending potential tax credits not considered in this analysis. All in all, Based on the assumption highlighted in this slide, the total yearly electricity bill in 2022 is expected to reach about 24 million euro, virtually twice as much as in 2021, and largely originated in the second half of the year, assuming an average price for the raw energy component of 280 euro per megawatt hour. as I mentioned, positively impacted by the low level recorded in the first quarter. Estimating conservatively and in the hope of a return of prices to more rational levels, estimating a comparable level of spending even in 2023, you may see 25 million euros on a yearly basis, leads us to an overall negative impact vis-à-vis 2021 levels, of about 13 million euro on a yearly basis. However, if we look at the right of this slide, as concerned the top line, consider the effect of such dynamics on inflation, we can note that the 3.6% price increase already accrued starting January 1st of this year, will generate again in 2023 a benefit of €8 million. To this, we should add the similar effect of the further price increase accumulated from November 2021 till today, amounting to another 5.9%, meaning additional €14 million of potential impact on the top line. If we sum this contribution to the previous one, we reach about €22 million on a yearly basis, which is likely to increase again consistently with the further increase in the electricity bill, factoring to the calculation for the second half of the year, and which will presumably push the CPI up further. If we compare... the total benefit at revenue level expected in 2023 with the negative impact estimated at operating cost level, the balance is definitely supportive and confirms the viability of the CPI mechanism embedded in our revenue model that, although with a certain time lag, naturally edges against a truly extraordinary scenario. I hope this slide will help you to understand the energy prices impact on our financials. Of course, let me just underline that the exercise you find in this slide is for illustrative purpose only, and the resulting figures cannot be intended to be written in stone, given the current degree of uncertainty. I leave now the floor to Aldo to conclude.

Thank you. What Adalberto has just outlined in terms of impact and sensitiveness in relation to electricity prices is reflected in the expectations for full year 2022 and, let me say, also beyond. In fact, utility costs now represent a major, if not the only, point of uncertainty in Therefore, in terms of revenues, the mid-single-digit growth is confirmed, driven by the full impact of the reforming-related step-up in RAI, already recorded in the first half, being this step-up effective from the second half of 2021, the CPI link, the contribution from capacity leads on new regional networks, which will also help us to reach a sort of turning point of third-party readiness. For the adjusted EBITDA, based on the current level of power future for the rest of the year, the over 400 euro per megawatt hour mentioned by Adalberto, meaning a sharp increase compared to the level of our last call in May, And not assuming further incentives, we should still be able to deliver a little bit of growth, mainly thanks to, of course, the top line roads, the cost control already visible in the first half, and some non-recurring benefits. For example, a small penalty that will be paid by RAI in the second half for shutting down a minor service related to an old radio transmission technology. So, should electricity prices return to a more rational level during the last month of the year, the growth will be more material. As pointed out earlier, in 2023, upon the next application of the CPI escalator, the dynamic of energy prices and resulting inflection will also be reflected in our revenues, reversing the headwinds affecting this year, the 2022. Lastly, at investment level, expectations are confirmed with maintenance capex in line with our industrial plan values and development capex in line with or slightly higher than 2021 values. With the completion of reforming activities, and the growing portion related to the implementation of new services. That's all on our side. We can now open the line for the Q&A session. Thank you.

Excuse me, this is the Coral School Conference operator. We'll now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchtone telephone. To remove yourself from the question queue, please press star and two. Please pick up the receiver by asking questions. Anyone who has a question may press star and one at this time. The first question is from Fabio Pavan with Meteo Banca. Please go ahead.

Yes, hi, and thank you for taking my question. I was wondering if there is any update on the sector consolidation front that you can share with us And in particular, my question is, are you afraid about the fact that political crisis we are facing in Italy may risk to derail the consolidation process? Thank you very much.

Hi, Fabio.

In terms of the progress of activities, You know, the PCM is in place. Rai's financial advisor is working, so the conditions for discussion are there. The approval of the industrial plan, Rai industrial plan, of course, might slip slightly, but as you know, Rai has indicated that the process could go in parallel with the plan. So in the meantime, work can continue on the various aspects. And this without considering that the industrial enhancement of an asset should make sense regardless of the specific plan. However, we are all aware that timing is crucial. And at the moment, I can confirm, as already said, to see The second half of this year has a reasonable time window for discussion. I'm involved in all the parties involved in the process. About the political situation, it's difficult to predict with full certainty. However, in terms of process, the regulatory activity required to enable the combination was done with the PCM. So if the parties come to an agreement that is consistent with the PCM provisions, no further political steps should be necessary.

Thank you. Thank you.

The next question is from Giorgio Tavolini in Intermonte. Please go ahead.

Hi, good evening and thanks for taking my questions. I was wondering if you can elaborate more on 2022 projections on guidances, especially for EBITDA, Since you say you expect EBBA growing, but I don't know if you are pointing to a mid-single-digit growth or a low single-digit growth. Since I don't know if it's correct to assume a 10% drop in the BDA in the second half, this is the implicit figure that I get looking at the consensus. Consensus is forecasting 1% BDA growth in 2020. So it means that after the very good performance in the first half, we should see a minus 10 in the second half. And the second question is on 2023. I was wondering to try to understand what could be the evolution of your previous targets. looking at the current electricity prices and levels and CPI. So I was wondering if it's correct to assume that the 247 revenues, if things are... I mean, if the evolution of energy prices and on the other side, the CPI is correct to assume 260 million revenues and for a BDA just 1 million more, so 155, 156, so in terms of a BDA. I don't know if it's clear, my question. So I tried to basically to understand what could be the 2023 targets revised in this new inflationary environment. Thanks a lot.

So in terms of guidance related to the EBITDA, the growth will be limited. I just may Of course, you may understand that if the price we highlighted in slide 13 will be confirmed, we will have to make an important effort to mitigate this increase. Let me just say that the growth of EBITDA will be limited. Then, giving a look also to the previous trend, of course, Laiwei is not a company that is going to deliver double-digit growth on a normal basis. So, in this particular scenario, you have to consider that, fortunately, what we have done in the first half is something incredible. We are very happy with the growth that we had, and this is going to give an help on the second half. Having said that, on a yearly basis, probably the figures that you are expecting in the second half in terms of EBITDA are okay because it should be consistent with what I said in terms of limited growth of the EBITDA. This is concerning 2022 guidance. Then, looking at 2023, I understand and I agree with your thoughts, but we are not giving guidance today for 2023. However, clearly the main moving parts are related to two factors, CPI and energy price. The final value of CPI to increase revenues will be the one recorded in November 2022. So let's see. Certainly, if energy prices keep going up, it is possible, likely, that there will be a further increase. Then the other element is how electricity prices will evolve in 2023. In particular, considering the time lag between the evolution of the energy prices in and the application of the CPI link. In slide 13 of the presentation, we point out that should electricity future for the rest of 2022 and for 2023 be confirmed, our electricity bill in 2023 would be only marginally higher than 2022, while the CPI contribution at June level so without considering further increases, would give us about 14 million euro of additional revenues. To these values, we would then have to add all other changes, both positive, such as, for example, the greater contribution from regional refarming, and negative, such as, for example, the loss of some non-recurring benefits that in 2022 help us to counterbalance the headwind from electricity cost in the first half. To say whether we will be above or below the planned CEPIDA target to 2023, let's wait for more visibility on the two main elements, CPI and energy prices. Obviously, if we close with a CPI of 6% or more and energy prices fall, the probability of doing better, then the target increases.

Okay, thank you very much.

You're welcome.

The next question is from Stefano Gamberini with Equita. Please go ahead.

Everybody, I have three questions, if I may. The first regarding an update of the process of authorizations regarding the data center investments, so when we could expect, we can say, some clear acceleration in your targets and mainly if you can give also a scenario on 2023 on these projects. The second question regarding the situation of OPEX excluding electricity pricing you underlined that with CPI locked today you could get an increase of revenues next year in the region of 6%. So regarding all the other costs, correctly you underlined that so far the effort was very strong in order to keep the cost under control, but with this scenario of inflation at 6% in 2022, what could we expect for the other costs next year? And the third is a clarification regarding your statement. If the parties find an agreement, the consolidation, the merger with eight hours could arrive in the second part of the year. So what you mean in this case, that is between Rai and the shareholders of eight hours could close an agreement in the forthcoming weeks in order to go ahead with the merger by year end, even in a current situation of uncertainty. regarding the political scenario.

Many thanks. Ciao, Stefano. I'll take the first one on the data center investments. Let's split the projects in two. As you know, we have a project that is the edge data center and a second project that is the deployment of an hyperscale data center. When you look at the first one, the edge data centers, there are no great or major authorization constraints. I mean, we are going to build data centers within our existing sites. So I would say no. And in this case, we expect to have at least the first set of edge data centers, so the five data centers that we have. mentioned in the presentation ready by the end of 2023. So, to answer your question in terms of impact, to be honest, we expect impact from now to 2023 more on the investment side rather than on the revenue side. I would say that the commercial date cap will start beyond the investment plan. When you look at the other project, the hyperscale data center, that, of course, is the project that could have the higher impact in terms of at least investments, because we are talking of potentially hundreds of millions of euros of investments. In this case, the authorization, the permitting phase is is by far more, let me say, time consuming. We are today in negotiations. Basically, we are presenting the project to the relevant municipalities and the relevant authorities. And the permitting process is quite lengthy. So we expect, given that you mentioned 2023, Maybe I would say that 2023 could be the year to get all the, hopefully, all the authorization and the permitting in place to start building the data center. Then you need to take into consideration at least 12, 18 months in order to build the assets there. So, in this case, again, 2023 is the year of permitting, and then the investments and the revenues contribution will be a very likely part of the next plan. Then, Adalberto, I'll leave the floor to Adalberto for the other questions.

So if we look at our total OPEX, let's focus on the last yearly figures that we have available, that are the ones of 2021. We had more or less 75 million euro of other OPEX, apart from electricity and personnel. With the same perimeter of services, I don't see here big increases linked to the CPI. What we see for the future consistently also with our industrial plant projection is an increase of other OPEX and personnel in relation to the new services on which we are working on. nothing incredible vis-à-vis our overall numbers, but I would say that consistently also with our industrial plan for 2023, we may expect an increase that is linked by the new services that we expect to launch.

Hi Fabio, you're You also had a question about Stefano, about the consolidation and the clarification that I spoke before about the consolidation process. Yeah, when I spoke about the – I spoke about discussions and not agreements, but discussions among – mainly among, of course, among shareholders, also for the issue about governance. but also with the supporting of the operating company, so with us and with the retailers, but mainly discussions among shareholders.

Just a quick follow-up, Giancarlo, if I may. Could you help us to understand the main milestone on the permitting process, where we are, when you expect the next steps? the most important one at the beginning of 23 or even later just to have a picture because 23 at the end of the day is not so far and second regarding also the procurement or the projects for the investments you already moved also on regarding this topic many thanks well on the authorization phase

Sorry, I need to go into details, but let me say that you basically now have to present a project to the municipality and a proposal of a sort of convention. It's like a concession agreement with the municipality. And then we'll start a process called... In Italian, it's basically a preliminary service conference that will involve not only the municipality but also other authorities. You can assume it's difficult to say, but if everything goes smoothly, you can assume around 12, 18 months. That's why I was mentioning 2023. as potentially the year to get all the authorizations in place. And once you get the authorization, and this is the second part of your question, once you get the authorization, you will start, obviously, the procurement phase. Different when you look at the Edge Data Center and the other projects, because in that case, we have already started all the procurement procedures. And as Alberto and Aldo already mentioned during the call, we expect a decent amount of investments already by 2023, in the second half of 2022 and in 2023.

Okay, just a quick clarification regarding – so When do you expect that this project could be submitted to the local authorities for the upper scale project? During 2022 or next year?

No, no, no. Within 2022.

Okay. Thanks a lot.

You're welcome.

The next question is from Andrea De Vita with Banca Acros. Please go ahead.

Yes, thank you. Good evening to everyone. Again, related to the previous couple of questions and looking at the CAPEX size, given that you're accelerating with the edge data center and you will be in a very preliminary construction phase for hyperscale and since you have more or less completed the traditional business, the refarming, is it fair to assume that next year CAPEX will be significantly lower than this year. What's your view on that? And second, is this level of investment conditioned by energy prices? And are these, I suppose these new businesses are, let's say, not affected in terms of cost, but are in general energy a pass-through for the new activities? Thanks.

So in terms of CAPEX spending, we are looking at all the development CAPEX different from refarming. We expect to confirm in 2023 the overall spending of about 80 million euro on accumulated basis. So, the line was bad, so I'm not sure I get your point, but if you were referring to the developing CAPEX, we expect to have still a level, for sure lower than the one recorded in 2021 and expected in 2022, but the most important element is the different mix, because we will have the majority of the developing CAPEX will be mainly related to these initiatives. So I'm referring to the EDGE data center, to the CDN, and hopefully the co-location data center. In terms of impact on our OPEX related to these initiatives, new project on which we are working on the most important impact in the short term for sure is in terms of CAPEX then we will have an impact in terms of an higher level of FTE because for sure to start up this activity we will have to work and we will need personnel to do so And then, so looking at 2023, for sure, we are going not to have any big impact in terms of OPEX. The main impact will be in terms of additional CAPEX.

Sorry, my question was on a run rate. So is energy cost a faster route?

Andrea, you mean, generally speaking, in business, I mean, in the data center, if the energy cost is passed through?

Yes. Yeah. In general, the new activities, I suppose, and I want, if you can confirm, that it's both for edge and hyperscale, and I don't know whether for CDN it is or not, energy is passed through, just to be sure.

Yeah, yeah, we can confirm. Okay.

Okay, thank you.

You're welcome.

Mr. Benucci, there are no more questions registered at this time. I turn the conference back to you for closing remarks.

Okay, so thanks all for joining the call and speak soon. Bye-bye.