Tikehau Capital

Welcome to the TKO Capital Half Year 2022 Results Conference Call. For the duration of the call, your lines will be on listen only. However, there will be the opportunity to ask questions. This can be done by pressing star one on your telephone keypad to register your question at any time. If at any point you require assistance, please press star zero and you will be connected to an operator. Today, I am pleased to present Mathieu Chabron, co-founder, and Henri Marcot, deputy CEO. Gentlemen, the floor is yours.

Thank you. Thank you so much. And good evening. Good evening, everyone. Thanks for joining us on this TKO Capital H1 2022 results conference call. I'm Mathieu Chabron. Philippe Metzger- co founder of the company and i'm joined effectively tonight by Henry mark who deputy CEO, as well as our investor relation team with Theodore I do and we eagerly. Philippe Metzger- will go through a brief overview of the results and then we'll be more than happy to take your questions. Philippe Metzger- So, starting with a slideshow maybe on the on slide number four with a couple of highlights, I wanted to put forward first H1 2022 has been a strong H1 for TKO. We have seen our dual model clearly playing out and leading to strong performance across the board, ultimately translating to material net income growth for the first six months of the year. Second, on top of our fast-growing asset management activity, our investment portfolio delivered strong revenue growth in H1, mainly driven by our own strategies. Indeed, the TKO capital funds, in which we are investing a vast majority of our balance sheet, are delivering increasingly predictable and growing returns. Third, we delivered strong fundraising. Client demand remained strong for our strategies, so we managed to increase the pace of fundraising in H1 2022, despite the uncertainties linked to the geopolitical and economic environment with an acceleration in Q2 compared to Q1. In addition, we kept a strong deployment pace without any compromise in terms of selectivity. Fourth, we have invested in our asset management platforms. After a period marked by COVID, during which we had slowed down in terms of OPEX, we accelerated since H2 2021 in platform investment. That means staffing, reinforcing our teams and our infrastructure to support new strategies and secure future growth. We view this active hiring and OPEX investments as very timely in order to make sure that our platform is at full capacity to seize opportunities linked to future dislocation caused by raising interest rates, And the return on inflation. Now, let's be clear from now on, in H2, we will be more selective when it comes to hiring and OPEX investments. Finally, I mean, obviously, we're happy to, of course, to confirm our 2026 outlook, the one we gave you at the Capital Market Day a few months ago. And we get back to that a bit later with data. So maybe before we go through the various achievements of the first half, a word on the current environment and our position. I'm now on slide number five. During our Capital Market Day, our Deputy CEO, Thomas Friedberger, explained in detail our approach when it comes to investments and our positioning in the private markets industry. We think that in the context of rising rates and return of inflation, we have built a resilient setup. We can navigate the current environment, and as such, we've been incorporating cycle change within our operations and anticipating the end of what we think was not sustainable. Unreasonable valuation, complacent financing conditions, and high leverage. I think we've been very consistent on that, and you have heard us delivering this message repeatedly over time. First, we are typically, as we've always been, very disciplined in the way we're investing our own funds. I remind you that alignment of interest is at the heart of our model and that our balance sheet is invested in priority in our funds alongside our clients. And so we have been keeping a very strong approach when it comes to investment selectivity. Second, we are positioned on complementary asset classes tackling specific verticals that provide investors with a compelling risk-reward balance in the current environment. We prioritize downside protection, limited leverage, focus on long-term megatrends, nurture a contrarian mindset, not necessarily embracing mainstream trends that you may have seen in the industry during the past few years and which we've been leading to excesses. Third, we remain convinced from the discussions we're having with clients that long-term allocations have not been met yet and that LP's demand for alternative assets is set to remain strong. We'll get back to that. The current cycle, you may see fundraising decisions that can take more time. That's a more cyclical situation. I would say that on a more structural note, we don't see any change in client appetite for our products, actually quite the contrary. If I move now on to slide eight, starting now with our capital deployment momentum, which was very strong in the first half, during which we selectively deployed 3.3 billion euros across our asset classes. This is 1.8 times what we deployed in H1 2021. And there, my first comment would be that this step up in deployment is in fact representative of the growth and expansion of our platform globally. Because what is important to bear in mind is that even though we're deploying more capital, we are maintaining a very high level of selectivity and discipline across our funds. And this is evidenced by the 97% average exclusion rate recorded during the first half. We've been consistently maintaining over the years an exclusion rate of above 95%, even though the number of transactions we've been analyzing and reviewing through our funds has increased dramatically. So it's less than 5% of everything we look at that eventually gets done. As you can also see on this slide, private debt accounted for the majority of H1 2022 deployments, followed by private equity, in particular energy transition and aerospace strategies, and real assets, with mainly the deployment made by SOFIDI over the period. You see here on this slide a couple of examples of the deals that we've been concluding so far. Very high quality companies on strong verticals that we've been supporting across our asset classes. Last KPI maybe on this slide, and an important one, is that we have 5.8 billion euros of dry powder at the end of June 2022, which is down from the 6.2 level at the end of December, but stable compared to end of March, meaning that we've been raising capital, but we've also been able to deploy capital selectively and once again without compromising on asset quality. This dry powder will allow our funds to seize opportunities that will arise in the current context. No doubt that we will see dislocations in the market and review our strategies as very well positioned in the current space, as I said before, be it in private debt or private equity, or obviously with our special opportunity funds. Moving on now to slide nine on realization, which are another interesting part of our model as well, since it shows our capacity to exit some investments and crystallize value for our clients. First, The preliminary comment on that, as you know, most of our closed-end strategies are rather young and still in their investment phase. Second, our closed-end funds have long durations, so we currently are happy to hold onto these assets. We're not a forced seller of anything, so we're delivering performance when we can exit assets in good conditions, but we're also happy to hold onto assets for longer if necessary. Third, we're very cautious in the way we book carried interest in our P&L. There is no carried interest accrual, so we do not rely on short-term realizations to grow our profits. In private debt, obviously, this is where the realization flow is probably the largest, accounting for 52% of realization, the first half, followed by real assets and private equity and tactical strategies. A word on private equity. We've been delivering strong performance for investors in this asset class, and we have started to diversify in good conditions. Typically, with the exit of our investment in Aciteca in Italy, which we already announced, and it generated a 2.6 times multiple and a 45% IRR. Also, I'm happy to share with you, you may have picked up over the news flow of the day, that we just signed two additional exits by our Energy Transition Fund in July 2022, with a partial disposal of our stake in Green Yellow, a leading French developer of smart energy solutions, which crystallized a 1.9 times multiple and 18% IRR to date. We will be partly reinvesting the company to support the shareholder recompensation alongside our friends at Ardian. We also signed an agreement for the disposal of our stake in Groupe Réunion, specialized in energy efficiencies of building, and this investment generated a 1.9 times multiple and an IRR of around 25%. In our real assets division, our infrastructure business in the US, disposed another asset from FundOne with a 2.8 times exit multiple and a 22% IRR for our LPs, our limited partners, our investors. Finally, In February 2022, our Special Opportunities Fund divested a real estate credit investment in the UK, generating a 1.2X multiple invested capital, MOIC, and 17% IRR. So as you can see, even though we do not have a huge realization flow given where we are in our fund cycles, yet we are able to generate strong performance on exited transactions. Moving on now to slide 10. We think it's an important one to give you an idea of the granularity and the resilience of our AUM and our exposure across asset classes. Needless to say that we had many questions on the back of the past few weeks, the past few months and the macro situation. So we wanted to pause here and walk you through this granularity. As you can see from this slide, the top 15 sectors across our assets and the management are accounting for 42% of AUM. And we are talking about a very granular and well-diversified exposure. As you can see, you don't have any single sector accounting for more than 6% of the total. And when it comes to real estate, which accounts for around a third of our AUM, well, as you can see on the right part of the slide, two things. First, Sophie's exposure is very granular with more than 4,500 assets owned through a very small scale granular approach. Second, across the board, we also have very high-quality tenants. We listed here our top tenants at group level, and that's very important because we always want to do business with high-quality partners, whatever the asset class. And with that, you know, we are able to generate consistent and sustainable performances. I also want to remind you that we are investing our own capital within our fund and that is prompting for an extra layer of caution when we are deploying capital across our funds. Moving on now to slide number 11 to give you more proof points on the discipline and selectivity I was referring to. So basically in private debt, we tried to emphasize a very important KPI which is the leverage of the companies we are financing across our direct lending funds. We're standing today at 4.4 times leverage, which is, you know, the ratio of debt to EBDA, which is down basically compared to the previous vintage, which was closer to 4.7 times. So there again, you know, strong discipline in asset selection, despite maybe a more complacent market, we at TKO manage to actually reinforce the downside protection on this financing. Second thing is that we are exposed at 82% to first-in-debt instruments, the highest quality senior section of the capital structure. Third element is that we have computed stable valuation across our funds compared to the end of December 2021. So strong resilience and caution when we are deploying in private debt. In real assets, a couple of stats as well to illustrate the selectivity. First, starting with rent collection rates in the first half of 2022, obviously, you know, which stands above 95%. It has been consistently maintained above 90% even during the COVID crisis. The occupancy rate is still very high at more than 80% in H1 2022. And finally, the asset appreciation across our funds stands at mid-single digits over the first six months of the year. So here again, resilient valuation, and rent collection. In private equity, we wanted to provide you a couple of stats when it comes to portfolio companies across our energy transition or growth equity strategies. Over the last 12 months, they grew their revenue by more than 50% and multiplied their EBITDA by more than 1.4 times, 1.4 times. On top of that, we have seen appreciation by mid-single digits year-to-date in these strategies. Finally, a comment on our special opportunities funds. We have a similar mindset and discipline as evidenced typically by the level of secured investments and the high selectivity rates, which is in line with the group's average. So here again, what you need to remember from this slide is that with discipline when it comes to deploying capital, we are selecting high-quality assets, positions on strong megatrends, and that translates into robust valuation across funds and performance generations for clients. Moving on to slide 12. I was just talking about clients and all that I just described is strongly supportive of our fundraising initiatives. If we are able to increase our fundraising pace and to keep a very strong level of client demand, it is because we're generating performance and it is because we have the capacity to remain selective even as the platform expands. And so in H1 2022, we raised 3.2 billion for our funds, and that is a 36% increase compared to last year. Maybe a word about the comps here. You know, in H1 2021, I mean last year, our capital market strategies raised around 400 million euros, whereas in the first half of 2022, they experienced outflows of 256 million euros. So at the end of the day, net new money coming from our private market strategy specifically amounted to 3.5 billion euros in H1-22 compared to 2 billion in H1 last year, which is a significant 77% step up year on year. That has been driven by private debt, obviously, with our flagship fund, TDL5. I'm happy to announce tonight that we have finalized the fundraising for that strategy for a total of 3.3 billion euros of commitment, which is an impressive 57% uplift compared to the previous vintage. This demonstrates the quality of our teams and the recognition of our expertise in private debt. Let me also add that TDL5 received very strong support from high quality institutional investors globally with more than 35% of commitments received from LPs based outside Europe. In addition, CDL5 has attracted capital from LPs which were already present in the previous vintage and which increased the commitments by close to 60% in these strategies, which is a huge success. Also, real assets. They're contributing significantly with 1.4 billion raised on the one hand from SOFIDI and on the other hand, through our European Value Add platform, which attracted close to 600 million euros of commitments within an evergreen mandate and the first successes of TRIO 2, our second vintage of TKO real estate opportunity. Finally, fundraising for private equity was driven by the first closing of our green asset strategy for close to 100 million euros and co-investment for our energy transition and growth equity strategies. All in all, it's a very strong fundraising momentum that we've experienced across the board. So now a quick word on our client base on slide 13 to illustrate a couple of things. First, the diversity in terms of geography. And second, the diversity in terms of client type and how our client base is evolving. On the left part of these slides, we wanted to show you that international investors today account for 38% of our client base. That's around 13.4 billion euros, and that's a 32% increase compared to H1 2021, a year ago. So we've been expanding the platform. We opened Israel in Tel Aviv earlier in 2022. We opened Frankfurt last year, and we've already recorded fundraising successes in those regions. So we'll keep expanding our platform in the future. An important stat as well for H1 2022 is that 55% of third-party client commitments came from international investors. So this is clearly validating our development model abroad and the scaling of the platform. On the right part of the slide, another angle to look at the client base is how private clients are growing within our AUM. They account for 21% of our AUM at the end of June and for more than 25% of the net new money of the first half, in particular thanks to our dedicated real estate and unit-linked private debt solutions. I'm now on slide 14. An important feature of 2022, and which is at the heart of our growth strategy, is the expansion of our impact platforms. We talked about that during our capital market day in London, and our deputy CEO, Cécile Cabanis, delivered strong messages around that. We've been pioneers in the private equity space, launching the first European energy transition strategy back in 2018. And by the way, it is not on this slide, but I remind you that we are already invested in energy transition since 2011, with several investments from the balance sheet, like, for example, EREN. And since then, we have studied how we could expand our impact platform across asset classes, and that's through both our climate impact center, but also all the sustainability themes strategies. And you can see here, we've been massively expanding the range of strategies that are dedicated to climate, biodiversity, and sustainability. For example, typically the TKO Real Estate Opportunity Fund, two, you know, three or two, This strategy is transitioning to an impact strategy, so we have the capacity to also convert existing strategy to impact-dedicated strategy on top of our flagship impact fund. We also announced new innovative strategies like the Regenerative Agriculture Fund, launched in partnership with AXA and Unilever, or the Decarbonization Fund with Total Energy in North America. Finally, on slide 15, a word on the recognition of our sustainability strategy. First, with a very strong rating for TKO Capital assigned by Sustanalytics of 12.0, which positions the company in the top 1% of its peer group. And also, we've been recognized as responsible lender of the year by private debt investors. We are not implementing an impact strategy or launching impact-dedicated funds just to get awards and ratings. But we understand that they can be useful to help investors better understanding and validating the relevance of our initiatives and all the efforts that we are putting here. Moving on now to our investment portfolio, I'm now on slide 17. First, starting with the way the portfolio has been evolving over the first six months of the year. Our balance sheet investment portfolio reached 3.5 billion euros at the end of June 2022. This compares to 2.7 billion at the end of December. So over the first six months of the year, we have been investing in priority in our own strategies, investing around 900 million euros in and alongside our funds. Around a third of that amount is linked to the acquisition of an LP interest from a leading Asian financial institution in a direct lending fund managed by a leading US alternative manager alongside our credit secondary strategy. Let me add that we are currently in the process of bringing in some co-investors on this position, and it illustrates perfectly how we can use our balance sheet to save value-creating opportunities create a home for a good investment before onboarding third parties, LPs, and these strategies. Typically here, through this specific transaction, we've been doubling the assets under management for our private debt secondary strategy. Back to the slide, we have been performing around €300 million of realizations, including returns of capital. We have had positive changes in fair value for around €140 million. and positive forex impact for an extra 56 million euros linked to the euro-dollar exchange, and Henri will get back to that in the financial review. So, at the end of June, as I said, 3.5 billion euros of investment portfolios, and 80% of that amount is invested within our own strategies, and 20% in the ecosystem and direct investment. Maybe focusing now on slide 18 on the specific composition of our portfolio on slide 21. As I said, 80%, so 2.8 billion euros of the portfolio, is invested within our own strategies. That includes mainly the investment within our funds, which are in fact pretty well balanced between our private market strategies. Roughly a third in private debt, around 25% in real estate, another 25% in private equity. On top of the capital we invest into our own funds, we're also sometimes co-investing alongside them, and we've been also sponsoring three SPACs, one of them which has successfully completed its first business combination last month. So a very strong portfolio, a diversified exposure, and Henry, we walk you through the revenues that this portfolio has been generating in H1 and which are very robust. With that in mind, I will now leave the floor to Henry for the financial review of the first half. Henry, the floor is yours.

Well, thank you, Matthew. Good evening, everyone, and thanks for attending our call tonight. Let me start maybe by a quick word on our fee-paying AUM. I'm actually page 20, which is, as you know, a key metric to actually consider when it comes to revenue generation for our asset management business. Fee-paying AUM have increased by 25% year-over-year, reaching €30.5 billion at end of June 2022. This solid growth has actually been driven by very robust inflows recorded over the first half, combined with a sustained pace of deployment across our strategy, notably on private debt strategies for which, as you know, management fees are actually charged on invested capital. It is actually worth noting that our fee-paying base has been growing faster than the overall asset management AUM since 2019, generating a CAGR of 21% per annum over the period. At the end of June, 86% of our asset management AUM are actually fee-generating, and if you focus more specifically on our closed-end strategies, 91% of AUM have duration of about three years, providing us actually a strong visibility on revenue generation since actually our solutions are sticky with client committees along us over the long term. Let's have a look now maybe at our asset management revenues on slide 21. So management fees and other revenues have increased by 15% year-on-year, reaching 139 million euros and representing 97% of our asset management revenue. Maybe let me start by reminding you that in H1-21, management fees benefited actually from the positive contribution of late management fees for our energy transition strategies, as well as arrangement fees for co-investments in our real assets business. In addition, the level of management fees generated over H1 this year reflects the outflows recorded for capital market strategies mentioned by Matthew previously, for which actually fees are charged on any. So we grew management fees by 15% in spite, I would say, of this high comparable basis. Maybe a word on performance-related revenues. They actually contributed €5 million to asset management revenues, driven mainly by the strong performance of both long-dated private equity and private debt funds, which are gradually actually maturing, and as well several usage funds, which contributed during the semester. Performance-related revenues still have a limited contribution to our asset management revenues given the relative use of our funds as well as the cautious approach we have to recognize carried interest into our financial statements. Turning to page 22, for which we are showing you the evolution of our management fee rate since 2017. Well, once again, I guess this chart is quite self-explanatory. The average management fee rate for the last 12 months, ending end of June, was maintained at a high level, standing at 103%. This actually reflects the positive evolution of the group business mix towards private equity, real assets, which are charging management fees above the current group average, but also the favorable mix in private debt with more direct lending, specifically this year. I would mention that maybe, you know, such evolution has also been driven by the fundraising momentum for SOFIDI, with a growing contribution from subscription fees that are generated in line with SOFIDI's fundraising. As a reminder, the management fee rate for the fiscal year 21 benefited from the positive contribution of late management fees linked to the closing of our private equity energy transition strategy, which took place, if you remember well, in Q1 last year. We are quite satisfied by the way our management fee rate is progressing, and not only are we increasing the fee-paying nature of our AUM, but we are also compounding that with our capacity to maintain the average fee margin at high level, which is actually translating positively into our revenue generation. Moving into next slide, let's have a look at our fee-related earnings. For the first half this year, we generated an FRA of 40.7 million euros, representing a margin of 29.2%. The evolution of FRI mainly reflects the management fee growth that I just described a minute ago, which was actually partially offset in H1 by an increase in our operating costs. Let me here mention that staff costs are representing a bit more than two-thirds of our cost base, and this increase in operating costs is actually driven mainly by two effects. First one being a catch-up in terms of platform investments in H2 2020, One, following the hiring freeze and the postponement of several projects during the COVID pandemic. Second, during the first half of this year, we've been reinforcing our impact platform and strengthening our overall asset management infrastructure to actually support notably the launch of growth initiatives ahead of the cycle changes. Maybe one important point to mention here, as you can see on the chart on the right-hand side, is that the second half of 2021 already factored in the catch-up in platform investment. OPEX were actually up 7% in H1 this year compared to H2 last year. As a long-term asset manager and investor, we do not manage our business on a healthcare basis. Our platform scalability will definitely continue to be a powerful driver for our growth going forward. And this is why we are still very confident on our capacity to actually deliver FRA margin in the mid-40s era by 2026. Yet as well, I think you need to keep in mind that we tend to hire ahead, you know, to support our long-term growth ambition, while remaining very selective in any hiring decisions. We now operate with a strengthened platform, which actually allows us to navigate the current context with confidence and safe, attractive investment opportunities. Maybe turning to our performance-related earnings potential on page 24, let me remind you that actually performance fees and carried interest are representing in our business model a key earning generation engine for TKO Capital in the coming years. As you can see here, AUM, eligible to carried interest, keeps growing at a high pace. reaching actually 15.8 billion euros at the end of June 2022, and showing a 26% year-on-year increase, and therefore growing faster than our asset management AUM, which means that we are actually raising capital in priority into strategies eligible to carry interest, which is set to become a strong revenue and profit engine once again. One important point to mention on the total AUM eligible to carry interest 12.2 billion were actually invested and 7.1 billion generated IR above their order rate and that figure is actually up 82% versus a year ago. As I mentioned earlier, I would remind you that our revenue generation in asset management is today more geared towards management fees, given that our large funds are still young. We are expecting to start generating more material performance-related reviews when our first flagship fund will actually mature. Also keep in mind that we've been pretty cautious. We've been adopting a pretty cautious approach when it comes to recognizing performance fees. We only book them when we are certain that we can actually going to realize them. As such, we are not exposed to any global risk or negative performance fees into our panel. And finally, I would like to mention, but I think I already highlighted this before, that we have a very much shareholder-friendly approach in terms of allocation of carry and performance fees. 100% of performance fees and 53% of carry interest are actually allocated to the listed company for the shareholder. Maybe moving now into our portfolio performance on page 25. As you can see here, our investment portfolio delivered robust performance over the first half, generating actually 275 million euros of revenues, representing a 9% growth. year over year, this growth has actually been achieved despite the significant change in our portfolio and with the disposal of some of our listed investments, which generated more than 100 million euros of revenue last year. So as you can see here on the slide in dark green, TKO Capital asset management strategies, including TKO Funds, co-investments alongside our strategies and SPAC sponsoring actually contributed 132 million euros to H122 portfolio revenues, representing actually 48% of the total, and which is actually a 77% growth compared to last year. This revenue stream will actually continue to grow as the Group's balance sheet invests in our own asset management strategy. In addition to that, as you can see on the slide, you know, ecosystem and direct investment generated 144 million euros of revenues, reflecting in particular the positive fair value change for our co-investment in Univision, which is actually the largest Spanish-language media company in the United States, following the merger with Televisa that took place, the Mexican TV giant, We actually made this co-investment alongside the Forge Light, which is an investment company focused on the media and consumer technology sector, which was founded by Wade Davis, which was most recently the CFO of Viacom. Finally, H122 portfolio revenues included 56 million euros of positive forex effects due to the appreciation of the US dollar against euro, which I will comment in a second. We are now page 26, and as you can see here, the unrealized revenues amounted to 196 million euros over the first half this year, representing the bulk of our portfolio revenue generation. These amounts actually reflect three main elements to be considered. First one, the positive map to market in our own strategies, given the strong performance of four funds, notably described by Matthew previously. Second, the positive fair value changes of our ecosystem investments, including our co-investment, just mentioned a minute ago in Univision. And third point to be mentioned, the positive forex impact linked to the appreciation of dollar against euro. As for realized revenue, they remained stable over the semester with the contribution of TKO funds which was up 20% year over year and they were mainly driven by the continued increase of dividends, coupons and distributions. We highlighted as well on the top of the chart actually the level of return generated by our own portfolio, which is calculated by dividing annualized revenue by the average portfolio fair value between end 21 and end of June 22. And as such, at the end of June 22, portfolio gross return amounted to 80%, which was actually a level stable compared to H1 last year. So maybe let's wrap up by looking at our profit and loss for the first half of this year, page 27. The main takeaways are actually the following. So overall, a stable level of asset management EBIT, despite high level of comparison for H121, and despite the catch-up and acceleration in platform investment to support our long-term growth. Then a resilient investment portfolio, generating an 18% of gross return. To be mentioned, group operating expenses increasing in H1, in particular due to a number of one-off expenses linked to the acceleration of the group brand building efforts globally. Financial interest reaching a profit of 9 million euros mainly due to positive changes in swap fair value which were partially offset by higher financial interest linked to the US private placement which we completed this year in February 2022. Non-recurring items, which had a positive impact of 20 million euros, including notably some positive euro-dollar additional forex effects. And finally, a net results group share, which has reached 277 million euros compared to 176 million euros last year, representing actually a 58% increase year over year. Well, before handing over to Mathieu, maybe moving to page 28 and to be mentioned the key figures of our robust balance sheet. Our model is supported by a strong financial means with 3.1 billion euros of equity and short-term financial resources of 1.2 billion euros, of which around 450 million euros of cash. The evolution of the level of cash compared to end 21 reflects actually the investments carried out over the period, as well as the payment for dividend of one euro per share. We also benefit from an orange zone RCS, which has increased over the period to 800 billion euro in March 22, and we have as well an extended maturity to July 27. As you may have seen as well, an important point to be mentioned is that we have been assigned an investment-grade credit rating by S&P BBB- with a stable outlook, confirming once again the strength of our business model and our financial structure. In addition, PIP's rating has reaffirmed our investment-grade rating earlier this year. Finally, as you know, sustainability is at the heart of our DNA, whether in terms of investment, as previously mentioned by Matthew, but also at the level of group financing and as such. Following the issuance of our inaugural sustainable bond in March 2021 and the pricing of our inaugural sustainable USPP earlier this year, ESG-linked debts account now for 65% of our total debt compared to actually a level of zero at the end of December 2022. Maybe, Mathieu, back to you for concluding remarks.