Premier Foods plc

Ladies and gentlemen, thank you for standing by and welcome to the Premier Foods Quarter 3 Trading Update Conference Call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be the question and answer session. To ask a question during the session, you need to press star and 1 on your telephone keypad. I must advise you that this conference is being recorded today on the 19th of January 2021. I would now like to hand the conference over to your first speaker today, Alex Whitehouse. Please go ahead, sir.

Thank you very much and good morning everyone. Thank you for joining us for our quarter three trading update call which covers the 13 weeks to the 26th of December 2020. I'm joined this morning on the call by Duncan Leggett, our Chief Finance Officer, so I'll give a brief overview now of our third quarter trading before handing over to Duncan who'll take you through a few of the more financial topics before we open the call to your questions. So firstly, here are some of the headlines from our statement this morning. We've had another exceptional quarter of growth, in particular for our brands, and a key factor has obviously been the external environment. So obviously with more meals being eaten at home, given the restrictions on out-of-home eating. But at the same time, we've continued to strongly support our brands and to drive our branded growth model. And it's that focus on the branded growth model that's therefore delivered further market share gains, gaining both value and volume share in the quarter. Online growth was again exceptional, up 90% in the quarter and internationally we also again formed very strongly and we've also made good progress there actually with executing our new strategy for our overseas markets. So overall we now expect trading profit for the year to be in the range of 145 to 150 million and as a reminder that compares to last year's trading profit of 132.6 and I think reflects the strong growth and progress we've made this year. And then following further cash generation in the quarter we will also now be making another 40 million pounds part payment of the floating rate note. And then we also expect our net debt to EVIC data fall below two times by the time we get to our year end. If we look at some of the key figures that make up this morning's statement, Our Q3 group sales increased by 9% compared to last year. So this continues to be a quite exceptional year. And this quarter is ahead of what we reported in Q2, which might recall was plus 8.1%. And on a year-to-date basis, that means group sales are up 12.5%. Our branded portfolio and in particular grocery is really driving the growth so in the quarter our branded sales increased by 12.1% compared to the same period a year ago and this translates to a growth of 16% on a year-to-date basis. Grocery branded was actually up 14.6% in the quarter and so therefore is over 20% up year-to-date. Now, clearly, like everyone, we at Premier Foods have continued to feel the effects of the pandemic across our business. And throughout 2020, our supply chain colleagues have performed what I think is a truly magnificent job, keeping each other safe, keeping our sites running and ensuring that we continue to supply our customers with this elevated level of demand and ultimately to keep the shelves stocks for people and of course they've now been doing this over a prolonged period of time so a really remarkable effort and I think shows an incredible amount of adjustment in our supply organisation. As we've said before we've put in place a strict regime of additional safety measures back in February last year to ensure the safety of our colleagues and all those protocols remain firmly in place and they are working well for us and we will keep to them for as long as is necessary. Alongside the outstanding performance from our supply chain, as I said, we've continued to drive our branded growth model strategy and leveraging our great market leading brands, so specifically bringing exciting new products to market based on our understanding of consumer needs and current trends. and supporting our major brands with engaging and meaningful advertising and delivering excellent in-store execution which of course is always important but is particularly so in quarter three which is our key and largest sales quarter. We've demonstrated our strong commitment to investing behind our brands again this year. And in the third quarter, we actually had five of our major brands benefiting from TV advertising. So that was Bisto and OXO and Bachelors, Mr. Kipling and also now some new advertising for Ambrosia. Ambrosia is our fourth largest brand and we've not supported that with advertising for a number of years. So back on air in Q3 and we'll run through Q4 and it brings Ambrosia back to its Devon roots and with the well-known line of Devon knows how they make it so creamy which we know is well known and recognised by our consumers. During the quarter we also brought a number of new products to market, all based on key consumer trends and in particular, as you already know, we focus on providing healthier options for our consumers and a good example during the quarter was we launched Sharwood's 30% less sugar surfide sources and this gives consumers the ability to make a healthy surfide with less sugar than the other sources that you will generally find commonly available in the market. And as I've already mentioned, some excellent install execution in retailers, so important in this key quarter three. And I think we did a really good job on that again this year, despite some additional challenges. And all this together means that we have again outperformed both the grocery and the sweet treats markets in the UK, both in volume terms and in value terms. If we look at how this Christmas period was different from the norm, we saw significant increases in household penetration, notably on seasonally important brands like Disco which was household penetration up 160 basis points, OXO up 181 and Paxo which was up 112. What this is telling us is new households buying into these products that don't normally do so and I think this supports what we know from talking to our consumers that this Christmas was one where more households were cooking Christmas dinner for themselves with less people around the dining table. Sharwoods cooking sources and accompaniments also delivered an excellent quarter. Sales there were up 40%, market share growth and also half of penetration gains of a quite incredible 550 basis points in the quarter. An awful lot of new houses buying into Sharwoods. We've brought a number of new Sharwoods products to market in the year and we've also strengthened our commercial model however we also believe Sharwoods is benefiting from ongoing home cooking fatigue and a craft for some excitement amongst home cooks and likely I suspect cooking an Indian meal at home because the local Indian restaurant is unfortunately not going to be open. Sales are nipping. Sober and Cup Noodles also continue to perform extremely well. Sales up nearly 60% compared to same quarter a year ago and actually 63% on a year-to-date basis with Sober extending its leadership in the premium noodles segment. In our sweet fruits business, Mr Kipperings enjoyed another strong quarter. All metrics ahead whether you look at sales, volume, share or household penetration. This is our biggest brand of course and it benefited from a prolonged period of TV advertising through the last couple of years and continues to launch new product offerings into the market. The premium signature range and also the smaller cakes such as the mini tarts and the mini pies were also key drivers of performance in the quarter. And by contrast, our sales of non-branded products were actually lower, 2.7% down in the quarter. We did see growth in non-branded grocery sales. They were actually up 2.4% compared to a year ago. And there was growth there from the unlabeled products that we sell to the major UK retailers. But these were partially offset by a decline at Trumbull Foods, which supplies out the pro-meeting sector, so not a surprise there. In non-branded street treats, sales were 7.5% lower, and that is largely due to the exit from a low-margin seasonal mince pie contract. Moving to online growth, as I've said before, we've been working hard on our online presence over the last couple of years or so, investing in our online capabilities and ensuring that our brands are presented and marketed effectively using the tools that are available in this channel. And this has helped the business benefit from the significant move of consumers to online shopping this year. And our Q3 sales are actually up 90% online and, again, a little ahead of the channel growth there. Moving on to our international business, you'll remember that a few months ago we set out a revised strategy and a new approach to our overseas businesses, focused on ensuring we've got the right execution in market. And by this I mean making sure we've got the right products, that they're in the right stores, on the right shelves and in the right place in those stores. and price it correctly and the right promotional strategy. And the intention there is to build sustainable brand-focused businesses just as we've done in the UK. It's very much really about applying the successful and proven growth models we've got in the UK but adapting them to the local market conditions. And I'm pleased to say that we're making good progress and we can start to see this in the Q3 sales were up by 43%, although clearly there's some benefit there from restrictions in out-of-home meetings and that number. overseas sales, Sharwood nearly doubled in the quarter compared to last year. And in the US, for example, this is driven by that increased focus on in-market execution. And in this case, by significantly expanding the distribution of our Sharwood products in the US. So more stores selling more of our Sharwood range In Ireland we've seen excellent results Mr Kipling and that's coming from the adoption of the UK growth model including the UK TV advertising and given that success we'll now be continuing to support Mr Kipling on TV in Q4 in Ireland and also going to bring Bisco to TV in Ireland in Q4 as well. I think that's a great example of applying the UK branded growth models to another market with appropriate local adaptation to build sustainable long-term growth. In Australia, we've seen a return for substantial growth for the three main brands we currently distribute there, so Sharwoods, Mr Kipping and Cadbury, which collectively grew by an average of 45% in Q3. And then moving to Canada, the in-market test that we're running on Mr Kipping, which I've mentioned before, and that's running in approximately 300 stores, and that's delivering some encouraging early results. I've also mentioned before our plans to conduct a robust in-market test of Mr Kipling in the United States with the intention of replicating the success we've had with the brand in Australia, but obviously in a much, much bigger market. And so to that end, we're delighted to have just signed a distribution agreement with North American-based Western Foods to distribute Mr Kipling cakes for us. And Western, obviously, a large, major scale player very impressive capabilities and reach across the US and we strongly believe are the perfect partner to help us build our largest brand in what is clearly an absolutely enormous game market and first shipments there are expecting to take place in the first quarter of our next financial year. I'm now going to pause for a moment and hand you over to our CFO Duncan. He's going to take you through a few of the finance related pieces from our statement this morning. Thanks Alex. Good morning everyone. So as we recall, we've already made two part repayments to our floating rate notes so far this year. So £80 million back in June and a further £40 million at the beginning of September. As a reminder, we pay interest at 5% above LIBOR on these, and they're currently callable at par, so there's no financial penalty for repaying them early. And please note that our continued good progress this quarter. We're now in a position to repay a further £40 million. We can't make this payment on the 16th of February, and then this leaves 50 million of our pension rate note outstanding, down from 210 million. This will take up another 2 million per annum in interest costs, so good progress continuing to achieve our financing costs and our leverage, and that brings the interest benefit from the paydown today of 8 million on the annualised basis, the full effect of which, of course, we'll see next year. You may also have seen that we held an EGM last Monday for shareholders to approve a capital reduction. Specifically, this involves giving the company authority to transfer balance from the PLC company's premium account to its profit and loss reserve. I think it's better to view this as sensible financial help to enable greater susceptibility to report going forward. This would include sub-disability to pay limit ends should the board determine it's appropriate to do so. But I would just remind and underline the fact that no decision has been made as to the use of any of these realised profits. Anyway, the resolution passed with an overwhelming majority of 99.99% of votes cast. And just a reminder, the next and final step in the process is confirmation by the Court, which is expected in the middle of February. Just a quick word on Brexit. So in advance of the end of the EU exit transition period, we developed a comprehensive set of mitigation plans and preparations to ensure the continuity of supply by product throughout the supply chain. I'd be pleased to see a free trade agreement being signed with you because that's now in place and we're not expecting any material impact from the updated tariff changes. I mean it is clearly early days and I do expect there's a bit of pain we're going through in terms of that bin and printer but nothing in terms of being able to get our products out and overboard as so far new arrangements have not resulted in any major disruptions as far as supply chain. And last May, I just wanted to mention this financial year will be a 53-week financial year. So we'll report a short P&L in our statutory accounts on a 53-week basis and the balance sheet will be struck at 3rd April 2021. But to help with life-to-life comparative, we plan to provide a 52-week basis pro forma for revenue and training profit to help and just for the importance of doubt, the training profit guidance we've given this morning and that that we've provided during the year thus far all relate to a life-to-life 52-week period. So with that, I'll hand you back to Alex. Thank you Duncan. So as we look forward now to Q4 and in fact beyond, we've got further new products planned including Mr Kipling's 30% less sugar Viennese world and that's the result of some excellent work done by our R&D teams as I know that was not at all an easy thing to achieve. And additionally we'll be significantly increasing our TV advertising with many of our major brands on TV again in Q4 as we reinvest for the future both in the UK and also now overseas. And so as we continue to drive our branded growth models and obviously with out of home eating essentially closed for now, we expect to see continued elevated levels of demand for our products in Q4. And after the further increase in investment behind the brands that I just mentioned, We now expect trading profit for the current year to be in that range of 145 to 150 million and for Euro net debt to be below two times EBITDA. And as I said before, as our leverage levels normalize, that opens up more options for us in how we might think about future investment and growth opportunities and in particular how we start to move into the next phase of Premier Free's journey without the constraints of the historic high debt levels and with the ability to invest back into the development and the expansion of the business to create further value for our stakeholders. So thank you for your time and I'll now pass back to the operator and we'll be very happy to take your questions. Thank you.

Thank you, dear participants. If you wish to ask a question, please press star and 1 on your telephone keypad. The first question comes from the line of Charles Hall. Please ask your question.

Morning, everyone. Well done on another good quarter. A couple of questions. Could you just comment about market share in the quarter? And secondly, could you talk a bit about what you're seeing on price inflation and your thoughts on raw material costs as we go through the year?

So market share, and you'll remember that we increased our market share all through last year, and by that I mean our previous financial year, so prior to COVID. We've continued to do so through the pandemic, whether it was lockdown periods or not lockdown periods. So really, I think, you know, driven by the support plans we have for our brands, both in terms of marketing and also in store but also of course the new products that we bring to market and I think this quarter was no real difference from that and just a continuation of the same story and as I said we've got strong plans going into quarter four and into next year so we'd expect to continue to outperform the overall market. Price inflation, not a lot to report really. We've seen a bit of price inflation but nothing that's been particularly untoward and things we've essentially dealt with through our normal methods of setting wherever we possibly can and then where we can't, passing that on in pricing to our retail partners and we will continue to do so. But there's nothing particular of note there at the moment. And obviously that's in the context of having reached a trade deal a few weeks ago, which otherwise would have been a very different story, I think.

And just on the cost front, obviously you alluded in the first half to additional costs due to COVID. I think there were roughly 5 million in the first half. What's the trend line looking like at the moment? Are you having any issues in terms of absenteeism?

So, yes, you're absolutely right. We definitely incur more costs as we deal with all the extra hygiene measures and a whole bunch of other measures which would be too long to go into now, which do have costs associated with them. But a big part of that is actually the cost of absence and therefore additional staff. Obviously all that is much more than offset by what we see as we put additional volume through the factories, you obviously get some volume price leverage there, so that significantly offsets those additional costs. In terms of absence at the moment, I think, you know, going back to what I said earlier, the measures we put in place earlier in the year, or actually earlier our financial year, so last February, we're very confident in. I think they've significantly helped. And whilst we do see absence levels, because obviously our colleagues are part of the communities in which they live, our current levels are, I would say, notably below some of the figures that we've seen in the press recently over the last few weeks.

Brilliant. Thanks, Alex.

Thanks, John.

Thank you. The next question comes from the line of Martin Dubu. Please ask your question.

Yeah, morning, everybody. Martin De Boer at Jefferies.

Two questions, please. One is, Alex, just want to go behind the phrase in the outlook of high levels of consumer demand for our products, just sort of how do you see the top line evolving into Q4 and if you're able to stay into FY22. The second question is online. Remind me, I didn't think you disclosed the percentage of sales that are online, but of more interest to me is, What can you say about the composition of your online business in terms of the split between multi-channel players like Tesco online and offline, online specialists like Amazon and others, and anything you're doing direct online? Those are the three questions. Two questions in multiple parts, Martin. So I think if we look at the first part of the question, top line, what we see basically is whether it's the tiered system or lockdown, once you get to the point where pubs, restaurants, cafes, bars, etc. are closed and therefore you can't buy food in those outlets, that's when we see the increase in demand really tick up for our products. And so clearly looking at what we know for the rest of this quarter, January, February looks pretty certain as though most things will stay closed and then presumably we might get some sort of emergence into a tiered system in March, but who knows for sure. If we look at that in terms of what it means compared to a year ago then you'd say we've got to take into account that we would see probably growth then in January and February but you've got to bear in mind that last March was when you know the pandemic suddenly took off and we saw panic buying people stocking up their kitchen cupboards and things at the end of March and that was really quite an extraordinary peak in sales so you'd expect that in March will be below March year ago. Does that answer that Martin? Yeah anything you can say into FY22 or is it too early? I think it's a bit early. I mean clearly going into next year we will have a set of comps which are not repeatable. I think that's pretty obvious because hopefully we'll be out of this Covid situation by then and things will be hopefully getting back to normal. continue to drive our our growth models or continue best behind the browns will continue to bring innovation to market etc so we would continue to expect to make progress but I think what they will be thinking about it is progress versus you know the last clean baseline we've got which would be the year pre-COVID it's probably the way to think about that in terms of online you know our split percentage is probably not at all dissimilar to the online percentage that you would see in the total marketplace although we continue to take market share so we're taking that into account. We do trade a little bit with Amazon. We trade very strongly with Ocado. At the moment we don't, we've historically anyway let's say not done any direct to consumer work but we are just doing the test right now where we are looking at making Plantastic available on a direct to consumer basis and that's actually, I think that just went live last week actually but that's the only area where we do that.

Okay, thank you.

Thank you, dear participants. Once again, if you wish to ask a question, please press star and 1 on your telephone keypad. The next question comes from the line of Clive Black. Please ask your question.

Good morning, gentlemen, and very well done on your performance.

Three questions from me, if I may. Firstly, Alex, do you think the comparison to the cake market is particularly challenging in FY22, given... 1.3% sales growth through the first nine months of the present year. Secondly, could you give some color as to what you think the priorities for your marketing will be, elevated marketing in Q4? And lastly, just going back to your answer to Charles' question, how notable did you think the operational gearing was within the business in Q3 in terms of sales? where your trading margins might settle at the end of the current year. Thank you very much. Yeah, morning Si, thanks. Yeah, so you make a very good point on cake market actually. We've talked about this before, the impact of people eating more at home really is a driver of the grocery brands. That's where you see the shift as people prepare more meals at home. There is an interesting reverse dynamic on cake because a lot of the occasions when people enjoy cake are when they're with other people. That happens less often. We've seen downward pressure on the overall cake market and I think it's credit to our Our brand support models have actually, you know, Mississippi has continued to grow and consequently we've increased market share. But in terms of yield, the comps for the overall market, then, you know, it's a very different dynamic between grocery and coach. In terms of priorities for Q4 marketing, I mean the main thing is that we will in the UK continue to run our existing advertising campaigns behind the key big brands as we did through Q3. Obviously a lot of our brands have got a seasonal bias to them so it's still winter and so continuing to drive those through Q4 makes a lot of sense. And then there's one more brand that we're planning to bring to air in the next few weeks. But I've kept quiet on that so far this year and I'm going to continue to do so for competitive reasons. But the big change actually, though, is international because historically we've not supported any of our brands, certainly not with TV, in our international markets. But as you know, my aspiration is to build business units in our overseas markets with the same sustainable growth model that we've got in the UK. So we tested supporting Mr Kipling in Ireland earlier this year and that worked extremely well. So we're going to put further investment behind that in quarter four. And then we're going to do the same now and test Vista in Ireland in Q4. So both well-established brands in Ireland, but which haven't had any above-the-line support. So we're quite excited about that. And then, you know, we've got the number one branded cake position in Australia with Mr Kipling. And I think it makes sense now to test. how we start to transition from selling really good quality products in Australia to actually starting to build the Mr Kipling brand. So that's essentially where the focus is in Q4. In terms of operational gearing, I think that's a question to hand over to our CFO. So Jonathan, do you want to come back on that one? Thanks, Alex. Morning, guys. Yeah, I think we've seen increasing volume focus actually all through the year, which is normal, which clearly helps, as Alex mentioned earlier. I think Q3 was generally pretty flat out anyway. Being peak season, clearly our sales is higher than normal. So I'd say there's a modest benefit in Q3 price, but certainly more. And just a reminder, we do start building some of our stocks for the peak season in our second quarter. So some of the benefit of that would have been in the first half numbers. But I think for Q3, obviously, once you take away some of the additional costs we're incurring, I'd assume any benefits would be modest. Excellent. Thank you very much for that. Alex, just one supplementary on your internationalisation. Is it fair to say that if you do, with the introduction into the US and I guess the appraisal of the feasibility work in Canada, does that sort of represent the focus of the business on international for the next 12 to 15 months or would you have a wiser geographic ambition still? Our international focus, as I've said before, we've got already a very well established business in Ireland so we will continue to look at how we build that and that's one of the reasons why we're putting more above the line support behind the brands into Ireland. We've got a historically interesting, let's say, position in Australia, which we think can be expanded. We've put people on the ground in Australia now and we're looking at how we'll expand our business there. But clearly North America represents... a really exciting and interesting prospect. It's an enormous market. The Cape market in the US alone we believe is worth about $12 billion. So if we can take a piece of that, that would be very exciting. So what we want to do is work through and validate whether or not we can translate the Mr Kipling brand and our Mr Kipling support models into those territories. We do trade in Europe, so we work for a distributor network in Europe, and we've got a small business, particularly in cooking sources, that's going very nicely, thank you, but the key focus markets, I would say, at the moment are Ireland, Australia, New Zealand and North America.

Thank you very much.

Thank you. The next question comes from the line of David Shirley. Please ask your question.

Moulin & Gents, another one from Shaw, if you don't mind. I wonder if you could give us maybe a little bit more granularity, if possible, in terms of your marketing spend. I mean, you've obviously increased it in Q3, it's going to go up in Q4. I mean, what sort of year-on-year change does that mean? Can you give us any colour in terms of where you are now as a sort of a percentage of turnover? And Just a second one, can you just remind us as well where you are now from a capacity perspective across your facilities? Is there any pressure points given the elevated volumes?

Yeah, morning Darren, thanks for that. So on the market front, to be honest, we don't really share those specific numbers. But what I can say is that what we've been doing now over the last few years is as the UK business has performed consistently strongly, and I'm talking two years or so pre-pandemic here, what we've been doing is we've been gradually knocking up our brand support as the business performance has essentially allowed us to do it. And I think that's been a really important part of the overall growth model. We came into this year with plans to do exactly the same, which we have done so, but obviously the performance is stronger than we expected and that's allowing us to accelerate that a little further, which is really what you're seeing going into going into quarter four and it remains part of our future plans as well so as the business continues to perform well we'll continue to put more support behind the brand essentially putting more gas in the tank as the business moves forward. In terms of capacity We've been pretty much flat out in certain periods of this year but at no point has that caused us any significant issues. There is one particular product line where we walked away from a private label contract in order to create capacity for the brand but that's the only one and we continue to have space. and capacity. And my view at the moment, if we've managed to deal with the uplifts that we've had this year without any major problems, then we've clearly got plenty of place to grow from a more normalised base.

Thanks for that. And just asking, in terms of the guidance, you've given that 145150. I mean, what are you assuming there in terms of government policy on lockdown? Are you assuming we're in lockdown through to the end of March or is it sort of the middle of February?

Well to be honest Dan we've basically taken the only information we've got which is what the government has said so lockdown through January and we're assuming to end of Feb and then probably the emergence into some sort of tiered system but I'll go back to one of my earlier comments which is that from a from a demand point of view there is not an enormous difference between the higher tiers of the tiered system and there are from lockdown because the key determining factor for grocery product demand is people cooking at home and people cooking at home changes as access to out of home eating you know changes so yeah so that's essentially what's sitting behind our assumptions for quarter four

Okay, and just one last one, if you don't mind. You've obviously had Ambrosia on television now for a couple of months. Is there any colour you can give us in terms of the impact you've seen from that above the line spend?

Yes, I can say that we've seen some very nice praise from Ambrosia in quarter four, Dan.

Fair enough. Cheers, guys.

Thank you, dear participants. If you wish to ask a question, please press star and 1 in the telephone keypad. The next question comes from the line of Mario Mali. Please ask your question.

Hi, thanks for taking my question. Sorry, I missed some of the calls, so apologies if this has already been asked. But are you able to give us any guidance on bonds refinancing plans, please?

Definitely a question for the CFO. Duncan? It's not something that we've mentioned so you haven't missed anything but I think probably just refer back to previous comments on the topic and obviously pleading progress on the part redemption of the floating rate during this year and obviously looking a bit further ahead the fixed note and six and a quarter percent feels pretty extensive to us where we are here and we'd like to think without saying that it's worth a look at. It is callable now, but at quite a hefty premium, and that premium reduces by half in the middle of this year, so middle of June-ish. So it feels like that's probably an opportunity to have a look, have a look at the market and where things are.

Great, thank you. Thank you. Next question comes from the line of Ben Hoskin. Please ask your question.

Sorry, apologies. Mine's been answered now.

Thank you. Dear participants, once again, if you wish to ask a question, please press star and 1 on the telephone keypad. The next question comes online of Nicola Mallard. Please ask your question.

Hi. Thanks for putting the call on it. It's more of a bigger picture question, I'm afraid. The government obviously sneaked through some news on their food policy for high in fat, salt and sugar. I just wondered whether you had any sort of early views on that because I'm guessing as much as you're doing to take sugar out of some of your takes and sources that there might be some impact in terms of what you can and can't market online, when and where it can be installed. Thank you.

We understand what the government is trying to do and the intent here and we are pretty supportive of the direction of travel. We will be aware that we have been working on healthy options for consumers for a number of years now and across the portfolio. You know, probably the most important thing to understand here is that, given the breadth of our product portfolio and the different brands and products we've got, that the vast majority of those are not within the scope of the government proposal.

OK, thank you.

Dear participants, once again, if you wish to ask a question, please press star and 1. Dear speakers, there are no further questions at this time. I would like to hand over the call back to Alex.

Thank you very much. Well, thank you, everybody, for coming in this morning, and thank you for the questions. That's all from us, so have a great rest of the day. Thank you.

That does conclude our conference for today. Thank you for participating. You may all disconnect. Have a nice day. Dear speakers, please stand by.