ASOS Plc

Okay. Good morning, everyone. I can see you guys like the back benches. I used to like the back benches once. Good morning, everyone. Thank you for being here today. For those of you who are here. Sorry. Is this working? I hope it is. And also, thank you for those who are online. We are very excited to share with you our fiscal year 23 year-end results and to give you guidance for the mid-term as well. And also, we are very excited to share with you a little bit of the pillars of our strategy to take ASOS back to the path of growth. This is not a full strategic update. We will give you a lighter strategic update. Don't you worry. So you will not be here for hours. It's going to be short. But we thought it is the right moment to give you more color on where we are in our future plans. So as I told you today, Pretty much we're going to cover three blocks. The first one is going to be our year-end results that Sean Glitter, our CFO, will do. The second one we're going to share with you our guidance for fiscal year 24 and the medium term. And last but not least, and very important for us, We want to go more into the details of our plans for this fiscal year and the future to put ASOS back in the path of growth, as I said before, and to make it the most exciting destination for Fashion Loving 30-somethings. But before handing over to Sean, I just wanted to make a little bit of a summary of fiscal year 23, if you want, from a personal perspective. October 22, we were here, I think, physically in the same place and we share with you a pretty clear diagnosis of where the business was. We told you that we have five relevant challenges. We were struggling to generate profit and cash. We were piling up stock and that was generating tensions in our balance sheet. We were losing track in the connection with our consumers. And last but not least, we had an issue in terms of our team that was in a moment of reconstruction. During the course of fiscal year 23, we have tackled that situation, and we have started to set the foundations of a new way of doing, of a deeper change, if you want. And the ambition today is to give you a little bit more color about that. But let me start with fiscal year 23. The changes we brought in fiscal year 23 can be, if you want, grouped around four big topics. The first one is we renewed our commercial model where we have been tackling the old stock, bringing a more disciplined and flexible approach into intake. And last but not least, adding our faster approach to market in general. And if you want us an example that we always use, but it's just the forefront of what we're doing, is our test and react lines as the fastest approach we have right now to the market. The second thing we did during the course of the year is to work on strong order economics and a lighter cost profile. As we announced at the beginning of the year, we put in place a program that we call Back to Basics with the ambition to have an impact of 300 million pounds of profit during the course of the year, and we have delivered that. And on top of it, we have increased our profit per order more than 30%, which is quite remarkable. The third big topic is our robust and flexible balance sheet. As you know, in May 23, we secure a new financing, which are very light set of covenants and flexible set of covenants that have given us the platform to execute the changes that we have been executing so far. And during the course of the second half of the year, we went back to cash generation. And last but not least, we have refreshed our culture and our leadership. Today I'm very happy to have with me here a big part of that team. And actually today you're going to hear some of these people. Michelle Wilson, which is our Senior Director of Strategy and Corporate Development. Vanessa Stence, which is our Senior Creative Director. Elena Martinez, which is our senior product director, and Dan Elcom, which is our senior customer director. There are more members of the team. You will get to know them in a different occasion. It was not to bring them all here today, but I thought it was also very good that you get to know this new team, and I'm pretty sure it's the right team to the journey we have just started. Obviously, these changes had an impact in our performance during the course of the year, and I think it was quite clear that it was a year of two halves. The first half where we were having all the headwinds of the inflation plus the momentum that we were bringing from the previous year in terms of excess stock and also the cost level we were having. And the second half of the year where we managed to, through the measures we put in place, we managed to tackle that situation and then to go back to generating cash, generating profit, and reducing stock. And as I said, on top of that, we started to set the foundations for a deeper change in the company. Today, we want to share with you details, a lot of details, some details about this deeper change. And as we have announced this morning, our conviction that is the moment to accelerate in this transition. we have seen the first reactions, not the first, the reactions of the changes we did during the second half of fiscal year 23. And we are very clear that is the moment to accelerate that transition to take ASOS back to this path of growth in the midterm and to make it again the most exciting destination for fashion learning 20-somethings. And with that, I'm going to hand over to Sean, who's going to start giving you some details about fiscal year 23. And unfortunately for you, you will have to listen to me a little bit later.

Thanks, Jose, and thanks, everyone, for joining us today. As you already know from the trading update we gave a month ago, the apparel market in the fourth quarter was challenging, and this resulted in sales for the full year back 11% at constant currency, so very much in line with our guidance for low double-digit decline in the second half. At the same time, we saw adjusted gross margin improve by 60 bits, for the full year, benefiting from renegotiated freight rates. However, we also shifted investment from performance marketing into more markdown over the summer months, given the market backdrop. This was consistent with the discounting approach under the new commercial model, which involves clearing more stock in season, reducing the level of age stock we hold as we move forward. When it comes to the adjusted EBIT margin, this is really where the year was a tale of two halves, with a loss in the first half of the year when headwinds from inflation and increased return rates were at their strongest. However, in the second half, we saw EBIT more than double versus the same period last year, as the benefits of profitability measures we started in January took effect. Adjusted PBT also includes the impact of the refinancing we announced back in May. CAPEX came in line with guidance at £178 million and we closed the year with net debt of £319.5 million after a free cash outflow of £213 million. This was financed by a combination of the drawdown under our new financing facility and the equity placing announced back in May. The profit actions we've taken, including remedial action to improve profitability among loss-making customer segments, are reflected in our KPIs. Average basket value up 5% was supported by pricing increases, whilst active customers were back 9%, reflecting our focus on profitability over growth, including the action taken to tackle unprofitable customer behaviours. Consistent with this approach, order probability improved substantially, up over 30% year on year, while order frequency, visit and conversion all declined as customers made more considered purchases in what was a tougher macro environment. Briefly looking at our segmental performance, you can see similar themes across the board with variation in performance stemming from both varying market conditions and the extent of the profitability actions we took in the different regions. The UK market was particularly challenging while Europe was more buoyant. Topline in the US and rest of world segments was more affected by the specific actions we took to improve profitability. As you can see, profit per order improved in all segments as a result. On gross margin, you can see we had a substantial benefit from freight in the second half of the year, including renegotiated terms on our long-term contract with Maersk. Partially offsetting that was trade. which was a drag on gross margin due to increased discounting through the summer as we prioritised reducing stock levels by the year end. We also started to see improvements in our intake margin, particularly on own brand product as we made changes to our sourcing model. Turning now to OPEX. Due to deleverage on our fixed cost base, as volumes fell, our operating costs increased by 250 bps as a percentage of sales for the year as a whole, more than offsetting the improvements we saw at the gross margin level. However, where more of our costs are variable, you can see four-year improvements, for instance, on distribution and marketing costs. As previously outlined, the inflation and returns headwinds we face as a business This proportionately impacted the first half of the year, while the benefits from our cost-saving initiatives came through in the second half. This is particularly evident looking at warehouse costs in the charts on the right. The main drivers being that we closed ancillary storage and improved our efficiency by using our more manual Litchfield facility less. We moved unique SKUs to our Barnsley Fulfillment Centre and stopped shipping UK split orders. Other costs were 36 million lower in H2 compared to H1 as we managed headcount and overhead spend tightly. The impact of falling volumes on our EBIT margin can perhaps be seen on this slide, where you can see that the driving change agenda and freight benefits more than offset the inflation, annualisation and returns headwinds. As on the previous slide, headwinds were two-thirds weighted towards the first half, while self-help benefits were two-thirds second half, driving the shape of our EBIT during the year. And on this slide, just as a reminder of what our adjustment items in the period were, the key items are the exceptional stock write-off announced alongside our FY22 results, property impairments relating to our head office and logistics infrastructure, and then our usual amortization of the Topshop brands. The majority of these were booked in H1 with the cash flow impact limited to 54 million, of which 31 million related to refinancing fees. When bridging from adjusted EBITDA to our adjusted free cash outflow of 213 million for the period, The largest drivers are, one, capex, which came in line with our guidance. Secondly, an inflow from reducing inventory during the period, which totaled 180 million, excluding the impact of the 130 million non-cash write-off. And thirdly, offset by an outflow caused by a decrease in trade and other payables, which probably requires a bit more explanation. The chart on the right-hand side of the slide compares our trade and other payables closing balance, which has reduced by $313 million year on year. Average payable days have declined by 11% between our P4 of FY22 and our P4 of FY23, which drives part of this cash movement. But the largest driver of this change was volume. As intake has been cut substantially and operating costs in the period also declined due to the cost-saving measures we have taken. And finally, it's worth noting that the free cash outflow was 127 million better year on year, and all that improvement came in the second half. And to explain our movement in net debt for the year, from 153 million at FY22 to 320 million at FY23. The free cash outflow broken down on the previous slide was funded by a drawdown on the new 200 million term loan and a portion of the proceeds from the equity raise in May this year. With the undrawn 75 million new RCF, we finished the year with a healthy liquidity position of 428 million. So onto our expectations for FY24 and beyond. Jose and the team will talk in detail about our mid-term priorities and how we plan to get there shortly. But as a result of these changes we made last year and those that we've got planned in the coming months, we expect to return to revenue growth in FY25 and for that to be double digit. Accordingly, we will see EBITDA margin around pre-COVID levels of circa 6% and thereafter growth will continue to be profitable. with gross margin improving steadily back towards 50%, driving expansion in our EBITDA margin. And our model will also be cash generative, delivering EBITDA sustainably ahead of capex, interest, tax, and leases. The medium-term inventory holding of around 100 days will be complemented with capex in the range of 3% to 4% of sales. For FY24, this means we will accelerate our transition to all our stock being under the new operating model to get to our mid-term run rate as quickly as possible. We've seen really positive signs in how our stock brought in in recent months under our new operating model has performed, and this has increased confidence in our direction of travel. However, at the moment, it's not a large enough proportion of the mix to meaningfully impact our group level results. The £300 million of driving change agenda benefits delivered in FY23 will annualise to around £385 million in FY24. This will broadly offset the impact of volume deleverage and fixed cost inflation, with sales expected to decline between 5% and 15%. On top of this, we are making two incremental investments to put us on the path to sustainable long-term growth and cash flow generation. Firstly, we will increase our use of markdown to clear through the oldest stock in a way that balances speed with the potential to generate cash. That will mean sacrificing short-term gross margin to reach 90% of our stock having been brought in under the new model by the end of the year. Secondly, we will invest an additional £30 million into the ASOS brand, initially in the UK, to make ASOS famous for fashion again and support the brilliant work we're doing on product. This will increase our operating ratio by circa 1%. As a result of these investments, we expect FY24 to be EBITDA positive to generate cash and reduce our net debt. with stock of around £600 million that is significantly higher quality by the end of the year. We expect the first half of the year to reflect similar top-line trends to P4 FY23 as the market continues to be challenging and the drag on sales from profitability actions introduced from January onwards still persists. We then expect a return to top-line growth in the final quarter of the year. On the basis of our current capacity requirements and lower stockholding in the longer term under our new operating model, we've also taken the decision to cease operations at our Litchfield Fulfilment Centre, which we will cease that following completion of the automation programme scheduled for the end of FY24. That means the remaining 45 million of automation spend will be treated as an adjusting cost item in FY24 and capex excluding that in FY24 will be around 130 million. ASOS has ended FY23 a smaller but inherently more profitable and resilient business. I'm now going to hand back to Jose to explain how we're going to capitalize on our best assets and return the business to sustainable cash-generative growth in FY25 and beyond.

you Sean thank you so much so as you have seen fiscal year 23 has been a challenging year but we're also quite happy with what we have achieved during the course of the year we have managed to increase our profitability to reduce our costs to manage our stock to go back to profit and cash generative and we have also on top of it as I said before set up the foundations to a new model to a big change in the model And that is what we want to share with you today. We want to share, oops, sorry. Forgot to click. That's what we want to share with you today. We want to share with you how is this evolution. The thing that, as Sean has mentioned, is that we feel comfortable that right now is the moment to accelerate in this transition. And that's why we're coming with this investment in cleansing this old stock. And we will explain now why and how. and also on doubling down on our marketing capabilities. But let me, if you want, go back to this idea of the transformation. We want to go back to the core of what ASOS was. And if you want, that's probably the best way to explain why I say that we're doing what we want to do. What is it that we're trying to accelerate? So we think ASOS is different. Obviously you will hear that from everyone and we're not different in that sense. We think ASOS is different. We think our model has some capabilities that are unique and what we want to do with this project is to double down on these capabilities. The first capability is we have the capacity to bring the best and most relevant product. And here we're talking about our capacity to bring The best and most relevant product from our brands and also from our brand partners. And we want to talk to you today a little bit on how is it that we want to do it. How is it that we want to make sure that the product we put in front of the consumers is the product that they are looking for. Relevant means relevant to the weather. Relevant means relevant to the trends. Relevant means what they are looking for. And it's all the capabilities that we have put in place and we're going to develop even more to make sure that what they see is what they are looking for. The second element is how do we blend our brands with these third-party brands in a seamless way. This capacity to blend it into specific outfits is what turns ASOS into a destination for style. This is quite unique. Not many companies can do it out there, especially in the mass market. And this is something that sets us apart and has an impact in the behavior of our consumers. And what we are saying here is that we want to double down on this capability and take it farther. The third one is how we want to change our customer journeys, how we want to make our customer journeys much more around excitement, about inspiration. That's why we're modifying our marketing model, and on top of it, we are making an additional investment, and we will share with you exactly what kind of things we're going to do. The fourth thing is that we do that with what we call competitive convenience. We want to make sure that the journeys of our consumers are frictionless. We want to make sure that they are as convenient as they can be anywhere else. And this is a relevant part of the digital sales process. We're convinced about that, and we will explain to you the way we want to deploy that or the way we're deploying it. And all this is underpinned by a disciplined capital allocation. This is a way to continuously look for resources, to continuously look for liberated resources, to reinvest these resources in the top four capabilities, creating a reinforcing loop. When we're talking about disciplined capital allocation, we're talking about the excellence of our operations to have an efficient international model to have a data driven technology model and to have a growth minded culture and leadership. We will talk a little bit about that later. Implementing this model will have an impact on our economic model and it will change the basic of our economic model. When we're talking about doing these things that I mentioned before, means that we're moving to a model that is built on speed and light stock levels. Being able to react faster to the trends, being able to react faster to the weather, being able to react faster to whatever that is coming and is happening out there is approaching us to the moment that our consumers are making the decisions. Hence, we can increase our heat ratio and reduce our promotions and therefore increase our gross margin. Being able to sell with less stock obviously is releasing resources and is enabling us to a more efficient capital allocation. That, that may sound a little bit theoretical, is exactly what we're seeing with our new lines. With the new collection that we started to launch during the spring summer and especially during the summer campaign, so the last part of the spring summer, what we see is that newness is performing significantly better. Sell-through has gone up 10 to 15 points. We see that the forefront of this newness, which is our test and react lines, are turning three times faster than the comparable styles. And we are seeing that through the reduction of promotions, we are increasing our margins. For instance, in the case of women's wear, 250 basic points. So is it something that may sound theoretical? What we're seeing, it is working. The second element, as I mentioned before, is how do we blend the best of our brands with the best of our brand partners into a specific outfit? This is a capability that is not new in ASOS. but it's differentiating for ASOS and it is behind our current basket size. Our consumers on average buy more than three units every time they buy. This is clearly ahead of most of our competitors and is pretty much driven by our capability to create these unique outfits and ASOS being this different destination for style. What this model will do is will increase the basket sizes even farther and will help us to continue selling full price. Putting these two elements together with the efforts we're doing to reinvent our marketing and the investments in our marketing will help us to create customer journeys that are more around inspiration and excitement. That will help us tackle the churn, reduce the churn of our consumers, because we know that transactional relationships with consumers generate more churn, while inspirational relationships with consumers reduce the churn, and that will help us also reduce our customer acquisition costs. And of course, a relentless focus on finding waste and reinvesting that waste will help us to keep a competitive cost to serve and a competitive cost of return. Let me go a little bit deeper into these different elements. And let me start by bringing the best and most relevant products. When we say here, as I said before, this is applying to our own brands, but it's also applying to our brand partners. And in fashion, product is the air we breathe. This is our business, to bring relevant product. And in that sense, ASOS is a little bit of a, if I can use that expression, a special animal. We are a brand and we are a retailer. A lot of our competitors are either one or the other. We are both. 40% of our sales is generated by our own brands. 60% of our sales is generated through the partner brands that we carry in our assortment. This is the only place where consumers can buy brands like Asus Design or Topshop or Collusion or Reclaim Vintage and like that all the way up to the 13 brands we offer them. And this is not irrelevant. 71% of our consumers at a certain point in time have bought one of these brands. And 55% of the baskets of new consumers include at least one product of our own brands. By the way, this ratio is higher outside of the U.K. than in the U.K. Obviously, we are perceived as a fashion creator. We are perceived as a fashion house, and that gives us a big amount of credibility in the market. As I said, we are not only a fashion creator or a brand. We're also a retailer. We offer our consumers the best curation, and this word is very important, curation of the most exciting third-party brands for fashion loving 20-somethings. The magic happens when we put them together, because by putting these two elements together, we create a higher level of credibility in front of the eyes of consumers, and a higher level of credibility in front of the eyes of brands that can see us as a channel for growth and as a channel to reach different consumers or different locations. So I will tell you a little bit more about that, how we want to take that farther. Our ambition is to take these capabilities one step beyond. And obviously, this ambition builds on the fact that we have our own brands and we have these therapeutic brands. But we have to recognize, and we have done so during the course of the last months and in the last time we have been coming to you, that our model was showing some limitations. Too much stock. We've been talking about that. too much stock that was driving too much discount, so not very exciting for the consumers. We were very slow to market, and we had a formula with our brand partners that was very rigid. We could only offer them a wholesale model, a wholesale kind of relationship. What we're going to do now is to change that. First, by changing our stock management models. The ambition is that when consumers come to ASOS, they are exposed to the relevant assortment. It is not of a lot of use to make a lot of effort in bringing new assortment if this new assortment is lost in a sea of a lot of older things. So what we want is that when our consumers come, they really can see properly this new assortment and it is receiving the right focus. In order to do that, we have started and we already started in fiscal year 2023 to change our stock management systems. On top of it, as we've been talking about speed, speed, speed, our ambition, our obsession is to accelerate our go-to-market. And that is built on two critical capabilities. A different sourcing model, a more strategic sourcing model. And Elena will talk to you about that in a moment. But also a change in our go-to-market process so that we can get market-to-market much faster with all of our lines and even in two weeks with the forefront of our assortment that is our test and re-advance. And last but not least, I don't want to forget about our brand partners. We want to enrich our relationship with them. And that enrichment comes along the lines of bringing them different possibilities to deal with us. That will make it easier for smaller brands, for local heroes to work with ASOS, and that will make it also more interesting for us and more efficient for us to work with them. Let me start talking about the first one, about a better stock management. Well, I think it is no secret that for the last years we have been putting up on a lot of stock. From fiscal year 18 to fiscal year 22, we doubled our stocks. And while there is no question that there were a lot of external factors, probably the biggest one was COVID and all the changes in product classes that COVID came. So we're selling dresses. Now we're not selling dresses. We're only selling homeware. Now we're not selling homeware. We're selling dresses again. And obviously that had an impact. It's also true that there is a big part of it is behind our operations. Our operations were slow and inefficient. That's quite clear. So what we want to do here is to change that. And in order to change it, it's clear to us that we really needed a new model. So let me share with you a little bit of the main idea behind that model. The first idea, as I told you before, is speed, speed, speed. We want to make sure that we are fast reacting, that we can bring to the consumers the most exciting assortment as fast as possible. But this assortment has to be visible. So in order to make it visible, we have changed more elements in our stock management program. The first one is how we do demand planning. We have put in place a new team, a cross-divisional team, a global merchandising team that takes care of how do we manage our purchase. And we have put in place a much more rigorous and flexible approach into value so that we can adapt better to the changes in the market. The second big change is we have given a very clear ownership to the product teams on their lines. And it's an ownership that is based on their sell-through. We want them to sell what they buy. We want them to return on the investment they are making on buying merchandise. The third big change is how do we are managing the in-season pricing and the in-season stock management. Sorry, managing the stock management. We are much more active right now. We're using pricing in a much more active way to make sure that we tackle the problems as soon as we detect them. We don't want to wait until the end of the season. At the moment, we see something that is not working, and we are using our data-based technology. We are tackling it immediately. The last but not least is that we have a really decided approach into the end of the season. So we wanna make sure that at the end of the season, we have cleansed as much as possible and as necessary so that we get to a healthy stock profile. Our ambition is that at the end of, sorry, it's not at the end of the season. Our ambition is that nine months after the beginning of a season, which is more or less after mid-season sales, we have sold 90% to 95% of the pieces we have bought for that season. That is our internal KPI to get there. In order to do that, we are aware that we have to intervene. And what we have put in place is three clear levers. And I've pretty much described them before. The first one is that we needed to tackle the old stock. And obviously we've done that. The idea was to get all the irrelevant stock out of the system as fast as possible. We started that during fiscal year 23, and I will give you more color about that. But that was not enough in itself. That was tackling the old problem, but we had to make sure that we put in place a system that ensures that that never happens again. And this is why we put in place, as I mentioned before, a flexible and rigorous intake system and a very active incision cleansing system. So we make sure that at the end of the season, we reach this target of 90, at the end of the next, so at the end of the nine months, sorry, we reach this 90 to 95% sell-through. Obviously, during fiscal year 22, that didn't happen because we only came here to talk to you in October fiscal year 23, sorry, October fiscal year 23, sorry. So we started that journey at the beginning of fiscal year 23, and we started that journey having a very decisive and clear target to clean the old stock. In the course of that year, so we started the year, as I mentioned before, with 1.1 billion pounds. During the course of the year, we have sold 84% of that stock. So I think we can conclude we have really gone strong on this old stock. If you are thinking about the stock write-off we did, that equals to 13% of that 1.1 billion pounds. Obviously, the stock write-off helped, but it's not the only thing we did during the course of the year. We did many more things. Obviously, it has had an impact on our margins. We have made an effort to do that. But as opposed to what we saw in previous years, this effort has helped us to reduce the stock, to reduce the stock days that we had. There's been an effort for a reason, not just to push sales artificially. During the course of the year, we also started with the livers two and three. So we also started managing the in-season. We could not do that for autumn-winter, that's very clear, because we only came to you here in October, and in October our autumn-winter was pretty much in our warehouses already, so it was very difficult to change the intake, as you may imagine. We started that effort in the spring-summer. And we're very happy with the results we have seen. We have ended the spring-summer, we're pretty much now after the nine months more or less, not yet, but close to, with a sell-through that is 10 points higher than before. We have reduced the leftovers by more than 30%. When you put it all together, clearing the old stock plus controlling, in this case, only spring, summer, we have managed to reduce our end of year stock by almost 30% and ahead of our expectation. We are very happy with that. If you put that in connection with the results of the new lines and how the customers are reacting to that, we are convinced it is the moment to accelerate in the execution of that. It is the moment to double down on executing this stock management profile, sorry, system. And that is why we are coming with this acceleration that is having an impact in our profit in fiscal year 24. The ambition is that during the course of fiscal year 24, we will tackle the remaining 16% that we didn't tackle in fiscal year 23, plus the leftovers of autumn winter. And obviously we will continue in a very disciplined manner with autumn winter first and spring summer later with this flexible and rigorous intake and this in-season cleansing. That will take us to the end of fiscal year 24 with a completely clean system and with the capacity to show our consumers the full potential of our new model. A full potential that will show, obviously, we have an impact story in how do we manage the stock and our profitability in season. This new model is focused on selling the new stock. What we want to do is sell the new stock. And that is why we are coming faster. That is why we are getting better sourcing. That is why we are buying better. That is why we are bringing better prices. And that is why we're investing in marketing. Because we are convinced that we can push this new stock. And this is a stock that we're going to sell with very low discounts. We have seen that with our new lines. And we continue to see that. And that is our mission. Obviously, there are always mistakes. There are always things that don't work. And what we're doing, what we started to do in spring-summer 23, and we continue doing, is a very active in-season promotion. We do not want to wait until the season is over. We will tackle the problems as soon as we detect it. Obviously, that comes with a bigger level of discount, but it's still better than waiting longer. And this is triggered by better data personalized promotions, and as I said, as clear as we go logic. Once we get to the end of the season, we will go with even a more decisive approach with this end of season clearance. First of all, in our site, obviously, And if necessary, we will do it in different sites or off-site. As we have been developing these capabilities in the course of fiscal year 23, we have developed our sample sales activities. We have created connections and activities with some of the off-price retailers out there so that we can do that. The ambition is to pretty much eliminate this age clearance. The ambition, as I said, is to get to a 90% to 95% sell-through by that point in time. So the age clearance would be almost zero. That will ensure that when our consumers come to ASOS, they can really be exposed to the new assortment, increasing the quality of their relationships, increasing the quality of their interactions with us and also the excitement and hence this fashion. I'm gonna hand it over now to Elena, who's gonna be talking about the other elements of this change in our stock management. And I'll be back with you a little bit later again. So Elena.