MHP SE

Ladies and gentlemen, thank you for standing by, and I would like to welcome you to MHP's Q1 2022 Financial Results Conference Call on the 17th of June 2022. At this time, all participant lines are in listen-only mode. The format of the call today will be, as usual, a presentation by the management and IR team, followed by a question and answer session. Without further ado, I would now like to pass the line to MHP. Anastasia, the floor is yours.

Thank you, Michael. Dear stakeholders, good afternoon and good morning. Thank you for joining us today for MHP's conference call. I am Anastasia Sobotuk, Director of Investor Relations and International Communications. On the call today, together with Victoria Kapelushna, CFO of MHP, we will discuss MHP's financial and operational results for the first quarter of 2022, as well as current operational environment and expectations for this year, taking into account that Ukraine is now at war with Russia. This call is based on information released earlier today publicly. However, during our call, we will discuss our projections and plans based on our assumptions, domestic and international trends. Please take it into consideration. We are now on page number three of the presentation. Let me start from the general overview of the first quarter of 2022. First of all, on 21st of February, Russia invaded Ukraine. And the war started. And today is 114th day of the terrorism and cruelty, the vast majority of which you are aware of through public information. Ukrainians, as well as the democratic society, are all fighting for peace. And we all want Ukraine's victory as soon as possible. But we are still on the way to it and need to keep on going, facing different and significant challenges. war time brought us. Ukraine heavily requires international support now and of course in the future. We need this support to fight with aggressor and terrorism. We need this support to rebuild our country after the war as based on preliminary estimates it will take Ukraine around three years after this terrible war finishes to rebuild the economy of the country. MHP team continues to undertake all possible efforts to manage all difficulties and obstacles. Our unity is strong, and therefore Ukraine can rely on MHP in terms of food security, which is now a hot topic not only in Ukraine, but in the world. Let me now proceed with the company's results for the first quote of the year, slide number five. It is rather strange to say, but that was a good start of the year, mainly driven by strong operations in January and in February. Revenue increased by 24% to approximately $550 million, with export revenue of around $308 million. EBITDA was $41 million, 19% lower year-on-year, with war-related expenses, first time in our history of around $25 million. Next slide, number six. This slide shows you financial results by segment. As you can see from the table, the vast majority of revenue, as well as EBITDA, in the first quarter of 2022 arrived from poultry and related operations. Traditionally, due to seasonality effects, but also because of the start of the war in Ukraine at this time, Continued to the contribution to the revenue from grain growing segment was rather low, 6% only. Let's have a closer look at each business segment on our next slide. And here I pass my vote to Victoria.

Thank you, Anastasia. Yeah, thank you, Anastasia. Good afternoon, everyone. Let's have a look at MHP Ukrainian poultry segment performance. Slide number seven. It is important to highlight that today, because of incredibly challenging environment, MHP is operating at around 80-85% poultry capacity utilization. Despite of significant logistical and infrastructure challenges in Ukraine, MHP managed to deliver good results not enough good results in Q1 2022, which are, however, driven predominantly by strong results in January and February. Results of March were very weak with negative results of MBDA, first time in our history. Total revenue and purchase segment increased by 20% year-on-year. driven mostly by increase in poultry and vegetable oil prices on export market. Poultry price in Ukraine remains stable compared to the first quarter last year. With regard to poultry production costs, year-on-year costs increased by 25% in U.S. dollars, driven by growth of grain and utilities prices. Quarter and quarter poultry costs also increased, mainly reflating higher cost of gas prices, salary, and decrease in production volume in March, which was partially offset by decreased cost of protein cake. An additional negative impact in poultry results was due to incurring significant losses as a result of continuous war in Ukraine, donations, damage, write-off, and other expenses. Let's move on to the next slide, number eight. MHP's spring sowing campaign has been completed. According to the plan, all winter crops are currently winter and spring crops are currently in good condition. We gave this segment in Q1 amount $2 million. mainly driven by grain export trading on January and February. Let's proceed to the slide number nine. Injected TBD of this segment decreased, mainly driven by war-related challenges, namely disrupted delivery of raw material and challenges logistics, which led to reduced sales volume and write-off of inventories. Let's proceed to the slide number 10, several words about Pirutnina Ptui, growth in capacity in Serbia and Croatia, as well as positive price dynamic resulting around 11% increase in revenue year-on-year, which resulted in a BDA growth by $2 million year-on-year. We will continue to invest into development of Pirutnina Ptui through 2022, raising its operational efficiency and increased production volumes. Slide number 11. Taking into account current operational environment, having got a good loan portfolio structure with majority of long-term liabilities and deferred short-term loans and Eurobonds coupon payments, The company managed to maintain its liquidity at an efficient for business need level, keeping its net debt to EBITDA ratio at 1.9, the same level at the beginning of the year. Due to the fact that MHP has to invest significant resource in working capital in 2022, The company liquidity is priority to management team. It is under our constraints, control, and intention. Moreover, SG&A and other operating expenses, as well as CAPEX, have been reduced to the minimum requirement to meet the primary needs of groups or businesses. Today, the group's cash balance is around 200 million dollars. Use funds in working capital during the Q1 was mostly related to investment in inventory, primarily to grain growing entities in respect to spring sowing campaigns. Total capital in Q1 amounted to $34 million, mainly related to modernization products, new product development, and maintenance and improving of Pirutinaptui production facilities. I give the floor to Anastasia to conclude the presentation.

Thank you, Victoria. Dear stakeholders, we are now approaching the end of the second quarter of the year. Where do we stand now? First of all, in a couple of weeks, MHP will start harvesting winter crops, winter wheat and winter rapeseed mainly, of which a decent amount of crops will be exported. We hope so. Taking into account that all businesses in Ukraine are experiencing significant logistic challenges, it is both time, cost, and vehicles availability, our export division is working 24-7 to make it happen successfully for the benefit of the company. Partly production facilities continue to operate at 85% capacity utilization, and we try our best and all possible routes to serve both Ukrainians and international markets. Logistics is a king. In general, there is a high level of uncertainty regarding how our next quarter's operations will look like and what kind of financial results this uncertainty will bring to the company. But, as I said at the beginning of the presentation, MHP is united as never before to support Ukraine, Ukrainian population, and the whole world providing full security to the extent possible. We are now ready to start our Q&A session. Operator, thank you very much.

Thank you very much for the presentation. We will now be moving to the Q&A part of the call. If you have a question, please press star 2 on your keypad. That's star 2 on your keypad for any voice questions. You may also ask a voice or a text question if you are dialed in via the web. We'll now give a moment or so for any additional questions to come in. Thank you. Our first question comes from Mr. Rahul Chopra from Caspian Capital. Please go ahead, sir.

Hi, I was just wondering if there was any guidance on when future debt service will start and if there's any further comments on the capital structure and any plans that MHP has. Thank you.

Thank you for your question. The question about our debt option. No, we think that by the end of the year, we suppose that our debt structure will remain the same. Yeah, more or less, because you understand that now it's more than 90%. 95% is the long-term debt. Yeah, and bond. Regarding CapEx, we understand the minimum CapEx for Ukraine approximately around, because it includes maintenance CapEx and includes this investment, which we did in the first quarter, is around 85 million.

Sorry, I was wondering more, you know, when will, is there any plans on the coupon, the debt coupon being repaid? And also regarding the capital structure, you know, if there's any questions around managing the capital structure, liability management, that kind of stuff.

Sorry, maybe I did not get your question. Yeah, because your question about coupon, what's exactly the question about coupon?

It's about the coupon on the bond, the interest. When will the interest start to be paid?

Ah, start to be paid, yeah. We suppose that we will start pay on September. But unfortunately, you understand that we cannot guarantee, yeah, we cannot guarantee situation in Ukraine, especially right now. You understand that Ukraine in war and debate of current situation. If we see the currency change, we understand that we will pay in September. But I suppose everything will be at minimum the same level.

Got it. That's super helpful. And then no comments on the capital structure at large in terms of managing the debt? Or is there anything you can share there?

If you can let us know, what do you mean by capital structure? Do we have any restrictions? What do you mean?

Just in terms of refinancing or dealing with the maturities on the debt. There's a lot of discount. Obviously, the bonds are trading at a pretty deep discount. I was just wondering if that's something the management team has thought of.

Yeah, yeah, sorry, I told you that we think that the capital structure will remain the same, which we have today, 90% in bonds. I cannot imagine how we now in currency trees and we can refinance our bonds. Maybe a question about something, Klaas?

No, thank you.

Okay, thank you very much. Our next question comes from Mr. Daniel Walter from Morgan Stanley. Please go ahead, sir.

Good afternoon, and thank you so much for actually hosting this call and Q&A in these difficult times. My question was on the working capital movement. I saw actually your outflow in Q1 was only 67 million versus 101 last year. Maybe you can give us a little bit of color given sort of the particular challenges that your business is facing at the moment, how that impacts your working capital.

Thank you very much for this question. Yeah, you're completely right. We understand that this year we will have the huge investment working capital. I will explain why. Because we, unfortunately, we significantly, right now, we decrease our paid payables. And regarding everything, what we would like, what we need to buy, we buy on condition of advance payment. Another very important point is that today we see the big investment in our businesses regarding export poultry and export oil because time for delivering our product from Ukraine to custom to our client in significantly higher 60 days, for example, sunflower oil, because previously it was just, no, we received the payment from client only in three days after sent oil. And other very important points, we have some regarding VAT reimbursement. You understand that 60% and even 65% of total our revenue from export, but now is some big issue regarding creative reimbursement this year. And generally, we understand that our investment in working capital this year will be around $200 million.

So for the full year, you see an outflow of 20 million?

Yeah, for the full year. Yeah, for the full year, yes. Okay, and the main driver is that, I guess, inventories are up, given sort of your lower... Yeah, main driver is increased trade receivables and inventories of export sunflower oil and poultry meat.

And then I guess on the VAT receivable, I guess that also takes away some funding from you because you're waiting longer on that.

Yes, yes. Yes, yes, yes, yes.

Okay. But then I saw in Q1 you had a lower outflow actually than you had the year before. Maybe you can help us understand that part. Okay.

Yeah, I will explain because at the beginning of 2021, we had very stock of grain, which we use in poultry production. This year, we have at the beginning of the year, fortunately for us, we have very high stock. And that is why, you know, yeah, it is the main reason why last year we had so big investment in working capital.

Okay, thank you very much and all the best. Thank you.

Thank you very much. Our next question comes from Mr. Robert Watkins from Deutsche Bank. Please go ahead, sir.

Afternoon and thank you for taking my question. Just a couple from me. Could you give a bit more detail on how you're actually fulfilling the export contracts with the continued blockade of the Black Sea there?

Our experts now we provide through Europe, yeah, no trucks, yeah, trucks through Europe, and we use Glypida ports and Constanza ports for export of poultry. Regarding sunflower oil, the same, it is the rainway, yeah, to Europe. and from Brittany to Port Constance.

Is that a long term viable solution or is this just a sort of a temporary fix, but it wouldn't be sort of economical long term to maintain these kind of export channels? I mean, particularly for your sort of grain segment and maybe less on the chicken, you tend to need sort of high volume container ships to sort of ship that economically. So maybe some comments on that.

Because if you speak about export tariffs, export tariffs increase. If you speak about, for example, export tariffs of meat to MENA region, approximately higher by three times. Regarding export tariffs to Africa, four times higher compared to the previous. Yes, it's significantly higher in the same situation. which is regarding sunflower oil. Yeah, it's significant. And it's not just issue about logistic cost is increased and other issue that is a very long term period because now we have queue in our border, queue with trucks in our border for seven, eight days.

So where do you see sort of Cetris Paribus keeping the kind of export routes as they are now? Where do you see the EBITDA margin by using the on-land European export routes and these tariffs?

EBITDA margin of export to poultry?

Correct, yes. Just the generalized impact of the EBITDA margin given the new way of fulfilling your export contracts.

No, no, no. This is a very important question. The EBITDA margin maybe is not so bad, but it's a very important issue. It's the quantity of export. This is the problem. Yeah, we have the big inventories and big inventories in storage in Ukraine. Export produced produce and the damage at the same time if you speak about the expert price expert price increase in europe yes in europe yeah and if the down margin very similar maybe in this the same as last year but is the issue quantity so in terms of quantity

So I think you're running 80-85% capacity in terms of the exports that you're fulfilling, kind of rough percentages.

No, for example, yeah, I cannot say the big issue, I cannot predict anything. If you think about the April in March, yeah, I will tell you figures. In March, we export from Ukraine zero. In April, it was around 15,000 tons. In May, around 20,000 tons. The same period last year, we exported every month around 37,000 tons.

Great, thank you. I believe I heard that the domestic price of chicken you're seeing is pretty stable in Ukraine. Does that mean there's been quite a move in your domestic margin there, gross margin, due to the sort of input cost?

Gross margin is significantly lower compared to the last year, if you speak of the Ukrainian market, because, yes, our price is the same as last year, and even lower due to the mix, and if you see the stamp product, and margin is significantly lower compared, maybe two times more compared to the last year.

And in terms of not passing that through on your top line, why do you think that is? Is that a decision you've taken as a business or you were just unable to get price increases through to try and protect your gross margin?

It is a two issue. First of all, it's a demand and supply. Yeah, one of the issue and other we try to be responsible. from our country for our clients. At the same time, because we need to sell enough here on the market, it is a combination of a lot of factors.

Sure. One final question. I see that you announced a loan with EBRD for $24 million to support the Ukrainian farming operations. I don't know if you could give a bit more detail on sort of why that came in. It seems like your cash balance today is pretty healthy at $200 million.

Yes. Right now, our cash balance is not so bad, but nobody knows what will be in one month. That is why the main thing intention for us to have good liquidity position. And certainly, regarding our investment in working capital, I told previously that this year we have big investment in working capital regarding trade receivables effects, regarding reimbursement of VAT, and that is why it's better to have additional underlying client or additional money on the table.

Okay, understood. Thank you for taking my questions.

Thank you.

Thank you very much. Our next question comes from Mr. Konstantin Tcheverno from Opto Capital. Please go ahead, sir.

Hi. Thanks very much for taking my questions. I have a question about liquidity as well. So as of the 31st of March, you had liquidity access to trade credit facilities of $124 million and cash of $308 million. So you're saying now that the cash balance went to $200 million, and I guess that's on the back of the completion of the sowing campaign. I guess the question is, so on top of $200 million of cash that you have at the moment, how much of trade credit facilities you have access to? So that's my first question.

Yeah, yeah. Unfortunately, we don't have any undrawing facility right now.

So that $124 million was withdrawn by the liquid providers, so they're not available anymore?

We have just now only $40 million for financing Perutnina. We have just one loan, undrawing on Perutnina. In Ukraine, we have the time...

some PXA facility and now it is finished unavailable so basically at the moment you have 200 million of cash and then 40 million available in yeah and 25 plus EBRD got it and then historically in Q2 and this cash of 200 million is as of the middle of June right yeah Got it, got it. And then historically, Q3 was the quarter when you released some cash from working capital. Should we expect cash release this year as well?

Yeah, it's a very good question. Historically, yes. But why? Because historically in the third quarter, we sell a lot of grain for export. Rape, weed. Now there are some issues. There are some... and certainly again yeah we will try and i hope that but not so i'm not sure that we can sell all the rates in third quarter i think that we partially will sell during the maybe six months yeah because you understand the problem with logistics and this problem got it got it but but conceptually you should uh you should start collecting harvest and and and sell it right so

it should be the source of cash in Q3. The question is whether it's going to be as much as last year, but, you know, in terms of this... Yeah, but anyway, yeah, you're completely right.

Since August, yeah, maybe by the end of July, we will start to sell, all right? Yeah, but anyway, you understand all problems regarding this.

And in terms of export levels... let's say month today in June versus last year, could you please give a sense on sort of key products, how much exports are down in percentage terms on year-on-year basis?

I can say that about, for example, May, because June it is not finished, I don't want to tell. uh nobody knows to be in three days yeah i don't want regarding yeah last may we sold for the experts around 37 000 tons look like this 37 37 8. uh last may around 20.

20. and uh and as as june progressing is it improving or it's in the same position how do you see the situation

Yes, I hope yes, but yes, unfortunately I cannot guarantee. Yeah, yeah.

Got it. And just on this EBRD alone, could you please confirm what was the interest on it and the maturity of it?

No, no, no, I cannot say. Yeah, because it's commercial, it is not showing it.

But can you say at least, is it lower than the bond interest or higher? Any call on that?

No. Low, yes, yes, yes. It seems to me it's not comparable even compared to the coupon of the bond. It's not comparable. Yes, it's lower.

It's lower.

Significantly, significantly lower.

Oh, that's great, that's great. And then, so finally, in terms of the access to additional liquidity, let's say, can you get loans from similar institutions as EBRD or maybe there is more capacity with EBRD if you need liquidity down the road? Do you see more money coming?

Yeah, it's a good question. We are working on this issue. But unfortunately, it is very difficult. But we have negotiations with different financial institutions. But I cannot say more. It is a real problem. It is one of the big problems in Ukraine, is the access to loans, to credit facilities, even for companies as MHP.

Got it. And finally, just on the point of cash balance, So out of $200 million, how much of that is in dollars? How much of that is in local currency? And that $200 million, does it sit in Ukraine or outside of the country? How to think about it?

Yeah, it's nothing changing in our financial policy. During all our history, we try to keep the 95% and 90% in dollars. Yeah, in dollars.

and to know the biggest part outside yeah got it got it all right thanks very much for your comments really appreciate that and all the best thank you yeah thank you thank you thank you very much our next question comes from mr dimitri ivanov from jeffries please go ahead sir can you hear me yes please go ahead yes yes yes yes

Thank you very much for the presentation. I appreciate all your updates, keeping us updated. Kind of just understand the situation, like maybe elaborate a bit on this question with their current export sales and domestic sales. Understand that there is like uncertainties at this stage. It's difficult just to predict the future with the situation happening. But you mentioned like in May, amounted to approximately 37K like this, right? And approximately 20,000 was like a domestic sales, right? The company is still putting some sunflower oil as you mentioned, right? So I'm also trying to understand like levels and these levels of domestic sales. company generating cash in terms of the free cash flow or you really need just to harvest winter crops and start exporting this winter crops free cash flows to be positive so just like my first question on their on the current situation and your reliance on their winter crops so can you can the company survive in terms of the free cash flows without these grains or or not

Sorry, thank you for a lot of questions. I will try to answer, yes, one by one because a lot of questions. And I think to me, I answered for this question, but anyway, yeah. If you speak, yeah, regarding 37 and 21, seems to me you're wrong because what I told about the figures. Last year in May, we exported 37,000 tons. This, we export 21. You understand?

Okay.

In May, I would like to compare regarding exports this year compared to the last year for understanding the whole picture. If you speak about regarding how today is the share between exports and the trade market, it depends on the month. For example, on March, we sell 90% only in Ukraine. In April, it was approximately 70%. It was approximately 60%. Yeah, look like this. Yeah, because today it is very difficult to predict. Yeah, because I would like to repeat that it is an issue regarding logistics, and that is an open issue. And one of your questions was about working capital needs, no? Regarding grain, grain, winter. Yes, yes. Yeah, yeah. I say too previously, yeah, yeah, yeah. Usually we start to sell winter crops from July, from July, August. Yeah, but and usually we sell all the rates in the third quarter, yeah, because we don't have any problem with logistics. and 70 percent of wheat who usually we resell in third quarter this year i'm sure at 100 it would be very difficult and we will sell no doubt but we will gradually sell maybe during the six months nine months because there's a problem with logistics and understood but

you don't sell any kind of grains because there are no kind of inventories in terms of the grain. So the company sells only flour, oil, and poultry, right? So express and domestic, right?

Yeah, yeah. Fortunately for us, yeah, you're completely right. Yeah, we did not have any stocks for grain which we wanted to sell for the export, yeah. Yes, I suggest grain from the new harvest, harvest 2022.

Yes. It is profitable without, like, sale of grain. So, like, if you look at their, like, sunflower and poultry without sale of grains, the company can generate, like, positive rate of cash flow. I'm talking about, like, on the kind of... Yes.

Yes.

Understood, understood. Okay, so... 21,000 of expert sales in May. Okay. I thought it was closer to 35. I don't know why, but maybe I read some articles on Interfax, something like this, about 35K in expert and policy. So that's why I was a bit confused. So yes, thank you for the clarification, actually. And my last question on the situation with bank loans. So you have...

some short-term debt facilities in the capital structure approximately... Yeah, we have the short-term facilities around 150. Did you request an extension? But we prolongate these facilities, yeah. And the company still... Still what?

Paying interest rate on this, like...

continue to pay still interest rate, but interest rate is not comparable with coupon. Yeah, it's significantly low interest, if you understand.

And when you extend it with bank facilities, with bank lenders, PIs, or what, like, the impost on the company and this, or are there, like, additional cheap pledges or etc.? So, what...

MHP is a very good client. It's one of the most reliable clients in Ukraine and that is why banks did not require any additional payment or any additional pledge. No, nothing.

That is great. Thank you very much for the call. Thank you again.

Thank you very much. Our next question comes from Mr. Kyle Knightley from KnightEd Capital Management. Please go ahead, sir.

Thank you. I wanted to dive into the cash balance. So you noted that cash is currently at $200 million, and I believe the last figures provided were estimates of $130 to $150 million for the end of May. I was curious how we can bridge from $130 to $150 to $200 currently.

To be honest, yeah, I understand the situation. To be honest, yeah, I know that when we talk about our forecast on April, it seems to me, that time we did not understand our situation with export, and especially export poultry and export oil. And we built very conservative our forecast that time. And that is maybe the main reason why now is the higher liquidity position.

Okay. And so for June, July, and August, I guess if we think about the sowing campaign versus the EBITDA generation, can you forecast whether you'll be free cash flow positive or negative for those months?

No, yeah, I cannot say exactly because we have some investment in sewing campaign, winter sewing campaign. Maybe you understand this is a lot of problem and difficult regarding fertilizer. And now, not just now in June, even in May, we bought some fertilizer for new sewing campaign. Yeah, and that is why I'm sure that since, yeah, we will see that we should have positive cash flow since September. Yeah, mostly since September. Maybe it goes to the year of August. Yeah, but anyway, it's very difficult to predict, but in September, maybe yes.

Okay, so that would imply that you will be cash flow negative for the next few months and turn positive in September.

Sorry, please repeat.

Will you be free cash flow negative for the next few months until September when cash flow will be positive?

Yes, yes. Maybe it is not huge negative, but I think that, yeah, it's a negative. When we see our forecast, yeah, I see the negative.

Okay. And can you provide us an estimate for how much more free cash burn will occur? Just a high-level estimate? Like, what is your lowest cash balance for the rest of the year?

It's a very good question. If you're based on current situation, I think that the minimum is around maybe 100, yeah, around, so maybe 80.

Okay, so you will burn another 100 million in the next several months?

until yeah is the maximum yeah yeah what we see no base of current situation but you understand everyday situation yeah can maybe unfortunately can be changed significantly okay thank you

Okay, thank you very much. We have a few text questions that came in over the last few moments or so. Some of them, I'll try to group them together. Some of them are related specifically to the exports and I'll read them out. Could you please comment on the current ability to export? Any details on export routes that are used? The second question, could you please comment on how poultry export volumes and prices developed thus far in Q2? 22. And the third question, what kind of impact are you seeing in exports due to the war and exports completely being halted in some countries or regions?

Thank you for the question, because it seems to me I answered this question, but no problem. First of all, I would like to give you some picture. Before the war, 70% of our export of meat export was through Odessa, through our ports. 30% it was export to Europe and now when we speak about the total export, we continue to export to Europe and we provide our export to Myanmar region and to CIS country through Europe and port in Romania, mostly in Romania, and port in Lithuania. Okay, yeah. Regarding sunflower oil, before war, 100% through Ukrainian ports. Now, we try to export through Europe by railway, and through Romania, uh by by the by rio to constancia romania port do you understand our logistic way yep yes um is there anything else you would like to add sorry about about that about the export volumes uh about expert volumes yeah i thought yes i cannot say just We have figures and exactly figures for May, for example, we exported 21,000 tons of meat. Last year, the same period, we exported 37,000 tons of meat. It is understandable that now we exported less.

Thank you very much. We have another question about the EBRD loan. This is from Natalia from Dragon Capital. Thank you very much for the presentation. Congratulations on the 24 million loan. Could you please comment on the maturity of the loan and other terms?

Yeah, maturity for one year with possibility prolongate plus one.

Okay, thank you very much. We are seeing no further questions at this point, so I'll pass the line back to you, Victoria Anastasia, for your concluding remarks.

Thank you very much. Thank you very much, everybody. That was a good call. Thank you very much for your questions. And of course, in case you need another clarification and in case you want to raise other questions, we're here to help you. Please approach us. And of course, have a lovely day. Thank you and goodbye. Thank you. This concludes our call.

Thank you very much. Thank you. Bye.

Thank you. This concludes our call. We'll now be closing all the lines. Thank you very much.