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spk01: Good day, ladies and gentlemen, and thank you for standing by. Welcome to the MKS Instruments third quarter 2022 earnings conference call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone keypad. At this time, I would like to turn the conference over to Mr. David Rizek. Mr. Rizek, you may begin, sir.
spk04: Good morning, everyone. I am David Rizek, Vice President of Investor Relations, and I am joined this morning by John Lee, President and Chief Executive Officer, and Seth Bagshaw, Senior Vice President and Chief Financial Officer. Yesterday, after the market closed, we released our financial results for the third quarter of 2022, which are posted to our website. As a reminder, various remarks about future expectations, plans, and prospects for MKS comprise forward-looking statements. actual results may differ materially as a result of various important factors including those discussed in yesterday's press release and in our current report on form 8k filed with sec on august 17 2022 and any subsequent quarterly reports on form 10q these statements represent the company's expectations only as of today and should not be relied upon as representing the company's estimates or views as of any date subsequent to today and the company disclaims any obligation to update these statements. During the call, we will be discussing various financial measures. Unless otherwise noted, all references to pro forma financial measures reflect MCAS and Adatech Limited, which MCAS acquired on August 17, 2022, are on a U.S. GAAP basis and include adjustments to conform to accounting policies of MKS. Also, unless otherwise noted, all income statement related financial measures will be non-GAAP other than revenue. For a detailed breakout of reported revenues by end market, as well as out of tech and combined company revenues by end market, please visit the investor relations section of our website. Please refer to our press release and the presentation materials posted to our website for information regarding our non-GAAP financial measures and reconciliation of our GAAP and non-GAAP financial measures. Now, I'll turn the call over to John.
spk05: Thanks, David. Good morning, everyone, and thank you for joining us today. The third quarter marked a major advancement in MCAS's long-term strategy as we completed the acquisition of Adatech Limited. Adatech further broadens MCAS's capabilities by bringing leadership in critical chemistry solutions for advanced electronics and specialty industrial applications. and we are pleased to welcome the talented global team of over 4,000 new employees to the MKS family. We delivered strong results in the third quarter with record revenue and strong profitability. On a pro forma basis for the third quarter, we delivered revenue of $1.1 billion, of which over $360 million was from Adatech. Excluding the partial quarter contribution from Adatech, our revenue exceeded the midpoint of our guidance range and was another quarterly record. We continue to execute in a challenging environment of supply chain constraints and inflationary pressures. While we have overcome numerous constraints throughout the quarter, we are still facing shortages of a small number of components that are impacting shipments of some high-value solutions. We are also operating in an environment of increasing macroeconomic uncertainty and an anticipated decline in wafer fabrication equipment spending. And I'll provide our perspective on these factors shortly. Next, I wanted to share an update on our organizational structure and divisional reporting following the closing of our acquisition of Adatech. In the third quarter, our equipment solutions division was consolidated into our photonics solutions division. This consolidation aligns with our broader portfolio of photonics solutions and further enhances synergies between our critical photonics subsystems and our laser systems. As a result, going forward and in our third quarter 10Q, The financial results of the Equipment Solutions Division will be combined with the Photonics Solutions Division. And the Adatech business operates as a separate division, which we refer to as the Materials Solutions Division. As a reminder, earlier this year, we introduced our three end market categories, Semiconductor, Advanced Electronics, and Specialty Industrial. These market categories will remain the focus of our external reporting. Now I'd like to provide more detail on our third quarter results and my thoughts as we look into the fourth quarter. Semisensor market revenue reached another record in the third quarter. We saw broad-based demand across our portfolio. Our market leadership and RF power for dielectric etch continues to be a significant driver. And we delivered another record quarter, benefiting from investments into leading edge 3D NAND. We also continue to gain traction in RF power for conductor etch, where we see an attractive market penetration opportunity. Demand for our remote plasma sources remain very strong, driven by both on wafer and chamber clean applications. We also had a record quarter in our analytical and control solutions, led by growth in physical vapor deposition chambers as interconnect density increases for logic devices. Photonics solutions revenue for the semiconductor market reached another record, as we continue to gain traction in our optical solutions and motion businesses for advanced lithography, metrology, and inspection applications. We continue to gain significant design wins, and our engagement with key customers in this important market segment continues to strengthen. In fact, when excluding the inorganic contribution from the photon control acquisition, we deliver more than 35% year-over-year organic growth in our photonics solutions for the semiconductor market. Overall, our semiconductor market results in the third quarter were exception, even as we continue to face supply chain constraints in the quarter. Given nearly every semiconductor chip manufactured in the world today is made possible by MKS's technology, I'm excited about how well positioned we are to continue to leverage the attractive long-term secular opportunities in this market. While these long-term secular trends remain unchanged, recently issued U.S. Export restrictions on advanced semiconductor equipment sales to China are immediately impacting our direct customers who rely on our subsystems. In addition, as I mentioned earlier, we continue to see shortages of components needed for certain high-value products. As a result, we expect revenue from our semiconductor market to decline sequentially by approximately 20% in the fourth quarter compared to pro-former revenue for the third quarter. We have also seen a moderation in order rates in the fourth quarter. and we expect wafer fabrication equipment spending to decline in 2023 as the industry scales back investments to restore supply-demand balance. Turning to our advanced electronics market, revenue from our flexible PCB via drilling systems remain muted in the quarter, as expected. Demand for our chemistry solutions moderated in the quarter due to weakening end-market demand for electronics, such as smartphones and PCs. However, we saw strong demand for our plating equipment in the quarter. And overall, pro forma advanced electronics revenue grew slightly on a year-over-year basis when excluding the impact of foreign exchange and palladium pricing. Since the closing of the Adatek acquisition, our teams have been in active discussions with customers, outlining the unique value proposition behind our combined laser drilling and chemistry expertise to optimize the interconnect. We believe this is an increasingly critical focal point in enabling the integration of advanced electronic devices. In addition to our HDI market, our capabilities are focused increasingly on package substrates, which is the fastest growing segment of the advanced PCD market. Package substrates have become a critical building block of heterogeneous computing architectures, such as chipless, as well as other advanced computing applications. Today, we occupy a uniquely differentiated position by virtue of our market leadership in chemistry solutions, along with the laser drilling capabilities of our GEO platform. Our positive engagements with customers thus far confirm the strong value proposition of our combined laser drilling and chemistry solutions as a path to enhancing yield and reducing time to market. In the immediate term, we expect that macroeconomic headwinds in electronics and markets will negatively impact our performance. with revenue from our advanced electronics market expected to decline sequentially in the fourth quarter compared to pro forma results for the third quarter. It is worth noting that the fourth quarter is typically seasonally lower than the third quarter. Moving to our specialty industrial market, we saw relatively stable demand across our industrial, life and health sciences, and research and defense applications. Within the specialty industrial market, our general metal finishing business continued to be impacted by supply chain constraints in the automotive market. Nonetheless, demand was steady in the third quarter, and we expect GMF to benefit once supply chain constraints ease, though growth will ultimately be anchored by end demand. For the fourth quarter, we expect revenue from our specialty industrial market to remain consistent, pro forma results for the third quarter. In short, I'm very pleased with how MCAS executed in the third quarter. While the macroeconomic backdrop is a factor we are closely watching, I'm very excited about our long-term positioning for the numerous secular trends supporting MCAS's business opportunities. Finally, we will host an analyst day on December 14th, where we will provide updates on our strategy, market opportunities, and long-term financial model for the new combined company. With that, I'd like to turn the call over to Seth. Thank you, John. I'll cover third quarter results and provide additional detail and guidance for the fourth quarter. In the third quarter, we delivered revenue of $954 million in net earnings per share of $2.74, which includes a partial quarter contribution from Adatech following the closing of the acquisition. Following the Adatech acquisition, we delivered record revenue in the third quarter and exceeded the midpoint of our guidance range, led by record revenue from our semiconductor market. On a pro forma basis for third quarter, we delivered a revenue of $1.1 billion. In an adjusted pro forma basis, we delivered just the EBITDA of $327 million. Furthermore, even though we delivered strong financial results, recent foreign exchange volatility resulted in approximate mid-single-digit headwind to overall year-over-year revenue growth on a pro forma basis. Following the acquisition, our revenue mix is more balanced by end market. On a pro forma basis for the third quarter, revenue from our semiconductor market was 48%. It was 26% each from our advanced electronics and specialty industrial markets. In addition, we now possess a higher mix of more consistent consumables and service revenue, which made up about 37% of overall pro forma revenue for the third quarter. Now, trying to end market results, I'll be commenting on pro forma revenue and change from prior periods on a pro forma basis. We delivered record pro forma revenue from our semiconductor market in the third quarter, increasing 4% sequentially to $552 million and growing 9% year over year. We saw broad-based strength from across our vacuum portfolio, while growth in our photon solutions products continues to be strong outpacing overall industry growth. As John mentioned, recent U.S. export control restrictions on products sold for advanced semiconductor applications are impacting our sales to certain China customers. Based upon our preliminary assessment of sales through our direct sales channel and through our OEMs, we estimate the overall annualized impact could be in the range of $250 million to $350 million. That amounts to approximately 6% to 8% of our projected pro forma revenue for 2022, assuming the midpoint of our guidance for the fourth quarter. Moving to our advanced electronics market, pro forma revenue in the third quarter was $296 million, growing 1% sequentially and declining 9% year over year. As you may be aware, the cost of palladium makes up a significant portion of overall cost of goods sold for Adatex chemistry business. In order to insulate itself from typical market-based price fluctuations in palladium, AdTech has implemented an effective pass-through pricing mechanism to customers. In this context, assuming the effects of palladium pricing pass-through revenue, as well as foreign exchange headwinds, pro forma advanced platronics revenue was up 1% on a year-over-year basis. In a specially industrial market, we delivered pro forma revenue of $292 million in the third quarter, declining 1% sequentially, and flat on a year-over-year basis. Excluding the effects of palladium pricing pass-through in foreign exchange headwinds, pro forma special industrial revenue grew 7% year-over-year. On a standalone basis for MKS, excluding the partial quarter contribution for the ad tech acquisition, we executed very well. Revenue and operating margin exceeded the midpoint of our guidance, with operating expenses favorable to the midpoint of our guidance, reflecting strong cost controls. Turning to our margins, we reported third quarter gross margin 44.9%. Given well-known supply chain inflationary pressures, we are pleased with how we exited in the quarter and continue to work hard in addressing these macroeconomic factors. Third quarter operating expenses were $189 million, up $35 million sequentially, primarily due to the partial quarter contribution from Adatech. Third quarter operating margin was 25.1%, up 100 basis points sequentially. We continue to prudently manage our cost structure while maintaining our commitment to investing in organic growth opportunities that we believe can deliver attractive long-term returns. In addition, our integration of Adatech is progressing very well. We are on track to achieve our cost-saving target of $55 million within 18 to 36 months post-close. We recently marked the one-year anniversary of the acquisition of Photon Control. We delivered synergies in profitability improvements ahead of our own internal expectations, exemplifying our strong track record of M&A integration. Third quarter adjusted EBITDA was $268 million, and adjusted EBITDA margin was 28%. Net interest expense for the third quarter was $36 million. A sequential increase of $30 million reflecting the incremental debt associated with the ad-tech acquisition. In the quarter, we implemented interest rate hedges such that approximately 50% of our total debt outstanding is at a fixed rate. Our tax rate for the third quarter was approximately 18%, which benefited from transaction-related expenses. Net earnings for the third quarter were $167 million, or $2.74 per diluted share. Exiting the third quarter, we maintained strong liquidity with cash and short-term investments of $885 million and revolving credit facility of $500 million. We exited the quarter with gross debt of $5.2 billion, and our net leverage ratio, which we calculated on a combined company basis, was 3.3 times. The third quarter, operating cash flow was $199 million, and free cash flow was $173 million, Each inclusive of $36 million in acquisition, integration, and restructuring costs. Our capital expenditures in the third quarter were $26 million. Consistent with prior quarters, we had a dividend payment of $12 million, or 22 cents per share. I'll now turn to our fourth quarter outlook for the combined company. On a pro forma basis, we expect revenue from our semiconductor and advanced electronics markets to decline sequentially. while revenue from our specialty industrial market is expected to remain consistent with third quarter levels. Overall, we expect fourth quarter revenue of $1 billion, plus or minus $50 million. Based on anticipated product mix and revenue levels, we estimate third quarter gross margin of 44.5%, plus or minus one percentage point, and we continue to take necessary steps to counteract inflationary impacts on our business. We expect operating expenses of $240 million, plus or minus $6 million. For the fourth quarter, we estimate adjusted EBITDA of approximately $240 million, plus or minus $27 million. The sequential decline in adjusted EBITDA in a pro forma basis is a function of lower projected revenues, as well as a $20 million foreign exchange gain recorded by Adatech in the pro forma third quarter period, which is not expected to repeat in the fourth quarter. For the fourth quarter, net interest expense is expected to be approximately $81 million, reflecting a full quarter of net interest expense associated with the ad tech acquisition. As we've stated, our primary focus is to deliver our balance sheet, which we have demonstrated a strong track record of doing so following our last two debt finance acquisitions, Newport in 2016 and ESI in 2019. Our tax rate is expected to be approximately 27% for the fourth quarter, This increase is due primarily to the mix of geographical income associated with the ad tech acquisition for the full quarter. Given these assumptions, we expect fourth quarter net earnings of $1.34 per diluted share, plus or minus 27 cents. In closing, we are very excited to close the ad tech acquisition. It provides us with critical chemistry solutions for advanced electronics and especially industrial markets. Today, we are a more scaled company with a higher proportion of more consistent consumables in service revenues. Our integration activities are well underway, and we are well positioned to adapt to changing market conditions and to execute on a long-standing strategy of sustainable long-term growth and profitability. I'd like to now turn the call back to the operator for Q&A.
spk01: Ladies and gentlemen, if you have a question or comment at this time, please press star 1 1 on your telephone keypad. Again, if you have a question or comment at this time, please press star 1 1 on your telephone keypad. In an effort to facilitate as many participants' questions as possible, we ask that you please limit yourself to one question and one follow-up. If you have additional questions, you are invited to rejoin the queue.
spk00: Please stand by while we compile the Q&A roster. Our first question or comment comes from the line of Sydney Ho from Deutsche Bank.
spk01: Your line is open.
spk08: Great. Thank you very much. My first question is on semiconductors. You're guiding Q4 semis revenue down 20%, but when I look at your largest customer, they're guiding roughly flat quarter-by-quarter for Q4, and even if you back out the deferred revenue, they're not down nearly as much. Can you help us reconcile the difference And to the extent that you think that Delta is driven by inventory adjustments at the customers, do you think that will complete by the end of the quarter and maybe you can start shifting to demand starting in Q1?
spk05: Yes, thanks for the question. You know, fundamentally, there are two drivers for the guide down for Semi and Q4. Most of it is still driven by supply chain constraints, so it's nothing to do with demand. As I mentioned before, the number of components that are constrained is fewer, are fewer. However, the components that we're seeing constrained are tied to some of our high-value products. And so that's the majority of it. There's a little bit from the China export restrictions, but mostly it's still a supply chain constraint issue.
spk08: Okay. Maybe a follow-up question. I want to talk about gross margins. To guide the gross margin down to 44.5%, so down 50 basis points, can you walk us through some of the puts and takes that's impacting Q4? And more importantly, as we look beyond Q4, not asking for specific guidance, are there any one-time charges that would come out in first quarter, or should we think about using incremental margins of 50% with the 4Q as the base going forward? That's the right way of thinking about it. Thank you.
spk05: Yeah. Yeah, this is Seth. I'll take that question. So, yeah, so on the guide for the fourth quarter, you know, as you probably well know, added tax margins are above our typical margins, so that's helpful in the quarter. It would be helpful going forward for sure. But really the primarily change in the margins on a combined company basis is just lower volumes in the legacy MKS business. So that's really the driver there, quite honestly, is the biggest factor. you know, going forward in terms of guiding for margins, well, the annual stay, you know, in December 14th, we'll kind of walk through that a little more detail by, you know, growth by markets and gross margins. And on a combined company basis, we'll be able to articulate kind of how to look at the growth and the margins and operating margins going forward. So I kind of wait for that, you know, for that annual stay to kind of lay out that model a little more in detail.
spk08: Okay, great.
spk05: Thank you. Sorry, Sydney. So for first quarter, You know, we'll have normal amortization of, you know, purchase accounting costs and cost of goods sold, but we'll non-gap those items out. Otherwise, really nothing that we're aware of is unusual in the first quarter. Thanks, Seth. Yep, thanks, Ed.
spk01: Thank you. Our next question or comment comes from the line of Jim Ricciuti from Needham & Company. Mr. Ricciuti, your line is open.
spk06: Hi, thank you. Good morning. So we don't have a lot of history about how the Adatech business performs during periods of economic weakness, I guess with maybe the exception of 2020. But I wonder if you can give us a little color on how you're thinking about the electronics and the GMF business. during potentially a recessionary cycle, including that consumer loans business that gives it, I guess, some support?
spk05: Hi, Jim. It's John. Yeah, that's a great question. So we have some history when we look back on out-of-tech that during any kinds of recessionary timeframes, because they have so much more of their revenue being consumables, that they do not see the levels of decline that, you know, we typically see in a CapEx environment. And so I think that's really going to help support, you know, the entire company during any kind of recessionary downturns or even semi-cyclical downturns. You know, as I think we all know, the automotive market has been constrained as well. And I think as those constraints ease, that should also be helpful for that side of the Adatech business as well.
spk06: John, if I follow up question just on supply chain, particularly in the semi-business, it's still a headwind, but what are your expectations as you look out over the next one to two quarters? Is that going to be largely behind you and then you're just dealing with these other factors, including the weaker WFE and the export controls?
spk05: Yeah, Jim, I think my expectation is that we're in for still a couple more quarters at least of constraints, but it has been getting better. Even in our prepared remarks, I did mention that it's a fewer number of components actually that we're chasing, so that's helpful. And we just happen to be in a particular quarter where some of those components are tied to some of our high-value products. Obviously, we're working very hard to overcome those obstacles. And if we are able to do that within the quarter, of course, that's upside. But our guidance is basically based on what we see today. Thank you. Thanks, Jim.
spk01: Thank you. Our next question or comment comes from the line of Chris Sankar from Cowan & Company. Stand by.
spk02: Hi, thanks for taking my question. I had a couple of them. First one, I just wanted to double-check. You know, maybe my math is wrong, given... You know, you guys have resegmented the divisions, but is your vacuum solutions, which I believe is primarily the semiconductor business, is that undergrowing or outgrowing WSE this year?
spk05: I think you're asking about 2022, Krish? Yeah. Yeah, I think it's slightly undergrowing WSE. And I think, as you know, when we're in an upcycle, we tend to outgrow WSE. As it flattens out, then we are kind of flattish. Then when there's a downturn, of course, we underperform. But as we look at the long-term performance of our semiconductor business, we respect the WFE. We plotted it five years, 10 years, 15 years. We are still above 200 basis points higher than WFE over the long term.
spk02: Got it, got it. And I mean, John, just out of curiosity, but undergoing WP this year, you know, you've spoken about market share wins and power supplies. Are you seeing any share losses in other parts of your CENI business, like vacuum components or, you know, pumps and things like that?
spk05: Yeah, Chris, no, we're not. In fact, as you mentioned, RF power supplies shipments in Q3 were a record for that division again. And, you know, when you look at the market share data from third parties, we either have held our own or gained in many of the categories that we have for vacuum. So, you know, right now we're pretty happy with how each of the product groups are performing.
spk02: Got it. Got it. And then a quick question for Seth, just for modeling purposes, you know, in 2022, how should we think about interest expense, tax rates, and then also OPEX, you know, if you're assuming similar revenue levels as December quarter?
spk05: Yeah. So tax rate on, again, we'll outline this more in the annual stay in a couple of months, but I'll give you some high-level thoughts on that. So tax rate should be in that kind of mid 20% range, mid to upper 20% range, you know, going forward. It's kind of our goal there as well. I think he asked on interest rates. I mean, right now we're looking at the Q4, like a little over 6% with average rate on our debt. We've hedged half of that, as we mentioned in the prepared remarks. So you can kind of look at the rate curves going out in the future, but that'll give you a sense of how best to kind of model that. And then, again, OpEx, I would say that we'll always be prudent in managing our cost structure. You saw in the third quarter we were favorable on the legacy MPS side. And so, as John mentioned, we're seeing some potential slowdown in the semi-cap space next year, so we'll respond to that as we've always done many times before. But I think if you were to say, you know, steady state, run rate business, You know, you probably see some inflationary impact on OpEx. You take the Q4 and annualize that. Usually the first half of the year we have wage increases. However, we've got a longstanding policy and program to reduce and be more efficient in our cost structure. So that'll kind of drive those costs down on a steady state business. So I think it can rely on us to be pretty prudent on our cost structure going forward. But there's nothing I see out there right now in the Q4 run rates that would drive that up substantially for sure, even on a steady state business.
spk02: Thanks a lot, Seth. Thanks, John.
spk05: Yep. Thanks, Chris. Thanks, Chris.
spk01: Thank you. Our next question or comment comes from the line of Joe Catracci from Wells Fargo. Mr. Catracci, your line is open.
spk07: Yeah, thanks for taking the question. Post the acquisition, How should we think about the right level of cash that you need on the balance sheet to run the day-to-day operations? And I guess, how do you think about balancing that with debt reduction during a cyclical downturn?
spk05: Yeah, Joe, so I'll take that question. So we modeled, as I said before, you know, in the acquisition, $800 million of cash on the balance sheet, and we've got a revolver of $500 million on top of that. So, you know, we thought very thoughtful – doing a number of modeling you know back we announced transaction you know the summer of 21 obviously again when the rates were higher in the march april time frame so we feel very comfortable you know that quantum of cash can take us through any cycle and so that's kind of how we look at it we can certainly run the company a little leaner than that but our view is to be again pretty you know very high liquidity in the balance sheet so we'll kind of maintain that level of cash going forward And then, you know, kind of pivot to our goal going forward. We have the same playbook we ran many times before with other debt finance transactions to delever pretty rapidly. And, again, that's our goal going forward as well. That's always been our view. With the rates being higher for sure, that just doubles down on our strategy as well. So I think to kind of wrap it up, we're well attuned of the rate environment. We do want to delever very aggressively. That is our goal and always has been. and the amount of liquidity we have in the cash and the balance sheet is pretty substantial, frankly, to whether through any potential slowdown in the business. But we look at that on a quarterly basis, and we put the high beams on, and we're always kind of reassessing that position as well.
spk07: Got it. And then maybe as a quick follow-up, you talked about 40% of the combined company now having a revenue basis somewhat recurring. I guess, is that the right way still to think about it? And then Maybe, is there any way you can help us kind of understand how does that translate into maybe like EBITDA or free cash flow?
spk05: Yeah, Joe, I think that is the right way to think about it. So that 37%, 40% of the quarter's revenue was recurring or resilient, if you will, service revenue and chemistry consumables. And as Seth mentioned, you know, the gross margins for the Adatech business is actually higher than legacy MKS business. The operating margins of the MKS service business, which we publish, is actually very high as well. And so not only are those resilient revenues, but the profitability that comes off of them is marginally higher than the rest. And just to add to that, those revenues are not tied to the semi-cap cycle. So if you look forward and you have a view on semi-cap softening, you know, that percentage could actually increase in the total company. And that's, you know, that's part of the theme on kind of the acquisition as well. You know, we've thought about that. Recurring revenue is very important to us going forward.
spk07: Got it. Thank you.
spk01: Thank you. Our next question or comment comes from the line of Mark Miller from Benchmark Company. Mr. Miller, your line is open.
spk03: I just wanted to clarify, you are talking about for 2023 in terms of semi-sales impact will be around $250 to $350 million from slowing. Is that correct?
spk05: Mark, that's just what we view as the impact from the potential sanctions of China business. That includes both our direct business as well as any impacts from our indirect cut, indirectly through our OEM customers.
spk03: Okay. Interest expense for the December quarter, is that around $80 million?
spk05: $81 million, correct, give or take, yeah.
spk03: And in terms of these impacts, what percent of the total, you know, terms of semi-spending, what percent of your semi-spending, the impact, will be coming from the restrictions versus just general slowing? Will it be mainly driven by the impact, the restrictions?
spk05: Yeah, well, if you take a midpoint of that range of $250,000, $350,000, $300,000, call it, our semi-revenue in 2022 is on that order of $2 billion. So we're talking about 10% to 20% midpoint 15%. Thank you. Thanks, Mark.
spk01: Thank you. This concludes our Q&A session. I would like to turn the conference back over to Mr. David Rizek for any closing comments.
spk04: Thank you for joining us today. And for your interest in MKS, operator, you may close the call, please.
spk01: Ladies and gentlemen, thank you for participating in today's conference. This concludes the program. You may now disconnect. Everyone, have a wonderful day.
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