LG Display Co., Ltd.

Hello, I would like to thank everyone who attended today's conference call. From now on, we will start the conference call for the 3rd quarter of LG Display 2022. This conference call will be held after the announcement of LG Display and we will have a Q&A session. If you have any questions, please press the star and number button on the phone. From now on, there will be an announcement of LG Display. Good morning and good evening. First of all, thank you all for joining this conference call. And now we will begin the conference on the fiscal year 2022 third quarter earnings results by LG Display. This conference will start with a presentation followed by a Q&A session. If you have a question, please press Start 1, that is, Start N1 on your phone during the Q&A. Now we shall commence the presentation on the fiscal year 2022 Third Quarter Earnings Results by LG Display.

Hello, I'm Heo Seok, CEO of LG Display IRC. I'd like to thank everyone who participated in this quarter's performance announcement conference call. In today's conference call, CFO Kim Sung-hyun, Business Strategy Kim Hee-yeon, Business Management Lim Seung-min, Business Intelligence Lee Ki-hyun, Major Marketing Lee Tae-jong, Major Marketing Kim Chang-won, Good morning.

This is Brian Ha in charge of LG Displays IR. On behalf of the company, let me thank all the participants at this conference call. Today, I'm joined by the CFO, Sung Hyun Kim, Hee Hyun Kim, Senior Vice President of Corporate Strategy Group, Seung Min Im, Vice President of Corporate Planning, Ki Young Lee, in charge of Business Intelligence, Daniel Lee, in charge of large display marketing. Changwon Kim, in charge of medium display marketing. And Ki-hwan Son, vice president of auto marketing.

The conference call will be held in the same way. Please refer to the information in the investment information section on the website.

The conference call will be conducted in both Korean and English. Please refer to the provisional earnings released today or the IR event section in the company's website for more details on the financial results of Q3 2022. Before we begin the presentation, please take a moment to read the disclaimer.

Please note that today's results are based on consolidated IFRS standards prepared for your benefit and have not yet been audited by an outside auditor. Let me tell you about the business performance in the third quarter. In the third quarter, the macro situation worsened, and the demand for panels continued to decrease more than expected due to the deterioration of the real sales of the set company, the reduction in large-scale stock prices, and the strengthening of the stock operating standards. In Europe, the largest sales area of OLED TV, consumer psychology was rapidly weakened due to the Russian-Ukrainian war and the energy crisis, and the real sales of the set, which was in good condition, entered into a reverse growth. Let me start off with our business performance in Q3.

With worsening macro economy in Q3, panel demand fell more sharply than expected, with sluggish sales by set makers, large inventory reduction, and stronger standards for inventory operations. In Europe, the biggest market for OLED TV, consumer confidence contracted rapidly following the Russia-Ukraine war and energy crisis, pulling down actual set sales to the negative territory. Demand reduction has been most pronounced where the company is strongest, in high-end TV and IT, and our business performance in Q3 underperformed our guidance.

매출은 지난 분기 중국 생산지 봉쇄에 영향이 있었던 IT 제품의 출하 증가와 더불어 모바일 및 웨어러블 제품 출하 확대로 전 분기 대비 21% 상승하였으나 지속된 LCD 패널 가격 하락으로 인해 전년 동기 대비로는 6% 감소한 6조 7,710억 원을 기록했습니다. 소닉 측면에서는 대형 OLED 판매 부진 외에도 LCD 판가 하락 심화, 모바일 신모델 공급 지원으로

Revenue in Q3 was 6.771 trillion won, up 21% QOQ but down 6% YOY. There was growth in shipment of IT products that have been affected by lockdowns in our Chinese production bases last quarter and growth in shipment of mobile and wearables. But LCD panel price kept declining. There was operating loss of 759 billion won. Aside from soft sales of large OLED, there were accelerated decline in LCD panel price and delay in supply of new mobile models.

Hanbongi 영업이익률은 마이너스 11%, 에비타 마진율은 6%, 단기 순손실은 7,740억 원입니다.

Operating profit margin in Q3 was minus 11%, with EBITDA margin at 6%. There was net loss of $774.1 billion.

Next, let's look at the share price and area value. The share price and area value of the third quarter were recorded at 7.68 million square meters, which decreased by 2% compared to the previous quarter, focusing on OLED TV and monitor products. Next is area shipment and ASP trend.

Area shipment in Q3 was 7.68 million square meters, decreasing 2% from the previous quarter. There was decrease in shipment mainly in OLED TV and monitor products. ASP per square meter was $675, going up 19% QOQ.

This is owed to the increase in portion of smartphones and wearables.

The company's production capacity in Q3 decreased 3% QOQ as the exit strategy for domestic LCD TV fab picked up speed.

다음으로 제품별 매출 비중을 말씀드리겠습니다. TV 부문 매출 비중은 OLED 패널 출하 감소 및 LCD 판가 하락이 지속된 영향으로 전분기 대비 6% 포인트 감소한 25%를 차지하였으며 IT 부문 매출 비중은 Next is revenue breakdown by product segment.

TV panels accounted for 25%, down 6 percentage points QOQ. OLED panel shipment decreased, and LCD panel price continued to decline. Share of IT panel was flat QOQ at 45%. There was decrease in monitor panel shipment, but also recovery from shipment disruptions resulting from Chinese lockdowns in Q2. Mobile and others were 30%, up 6 percentage points QOQ,

with growth in shipment of smartphones and wearables.

Next is the company's financial position and ratios. The company's cash and cash equivalent was 3.264 trillion won, staying above the 3 trillion line. Inventory was 4.517 trillion won, decreasing by 205 billion won, QOQ. As for the main financial ratios, debt-to-equity ratio was 181%, and net debt-to-equity ratio, 84%.

Both up QOQ. Next is cash flow.

The company's cash and cash equivalent at the start of Q3 was 3.669 trillion won. It decreased by 405 billion won and stood at 3.264 trillion won at the end of Q3 after OLED investment and net loss in the quarter.

Next is the fourth quarter guidance. The volatility and uncertainty of the trend will continue, but Let me now move on to guidance for Q4 2022.

Market volatility and uncertainties are expected to persist. but the effect of seasonality in response to year-end demand in Q4 will push up area shipment, QOQ, by a low-to-mid single digit. ASP per square meter is also expected to climb up by mid-to-high single digit thanks to increase in new mobile product launches.

Next, I would like to explain the business management strategy of CFO Kim Sung-hyun.

Next is presentation by the company's CFO, Sung Hyun Kim, on operational strategy.

Good afternoon and good evening. This is CFO, Sung Hyun Kim of LG Display. The display market remains subdued as a result of soft-set sales and large inventory reduction, as well as tighter criteria for inventory management.

The company has pursued business upgrade in the past three years. but it was challenging to overcome the severe demand downturn and high market volatility.

Also, we will continue to promote the business structure and activities that have been previously promoted,

From a conservative perspective that accommodates a prolonged business downturn, the company will deal with the situation even more seriously with a tighter response based on more stringent operation standards. Given the company's financials, we will place the utmost priority on recovering our financial soundness. We will keep up the business upgrade activities while accelerating business realignment.

We will keep up the business upgrade activities while accelerating business realignment. We will first implement high intensity action plans to recover financial soundness.

First is accelerating LCD TV exit strategy. For LCD TV, where there are little room for differentiated competitiveness and excessive performance volatility depending on market situation, we will pull up the timing of terminating production in Gen 7 TV fab in Korea. We will also gradually reduce production in Gen 8 TV fab in China to speedily move ahead with our LCD exit strategy. The company will accelerate our shift to OLED through more aggressive exit from LCD TV.

The second is a bold reduction and efficiency of investment and cost. The party plans to minimize investment and operating costs in addition to the necessary normal investment in the short term until the financial stability is dramatically improved. First of all, this year, CapEx is going to reduce more than 1 trillion won per year to the level of the price-to-value ratio. Next year, CapEx will continue to increase the EBITDA level, Second is bold reduction and higher efficiency in investment and cost.

The company will minimize investment and operation costs, except for essential ordinary investment, until when our financial soundness is improved significantly. We will reduce capex by over $1 trillion from the plan earlier this year to keep it within DNA level. We have also revisited our existing plan so that from next year and on, capex will remain within EBITDA in terms of cash flow, mainly limited to essential ordinary investment, to keep it at half the level of depreciation and amortization. For expenses, the company will also allocate and manage them under more stringent requirements from a conservative management scenario.

Fourth, we plan to manage the stock at the lowest level. The stock at the end of the third quarter will be reduced by 4.5 trillion won, or more than 1 trillion won by the end of the third quarter, and will be managed below the appropriate stock. 생산 역시 이와 연동하여 과감하게 조정하고자 합니다.

Third is managing inventory at the minimum level. Inventory at the end of Q3 was 4.5 trillion won, slightly lower QOQ, but we will reduce an additional 1 trillion won by the end of the year to keep it below the adequate level. Production will also be boldly adjusted in linkage to inventory.

재무건전성 회복을 위해 We will also accelerate the reconstruction of the business structure. We will continue to accelerate the construction of high-end LCDs and OLEDs, and we will accelerate the transformation into a water-based business so that the variability of the supply and demand business can be minimized, and we will strengthen the stable profit structure and future business portfolio.

As we place the utmost importance on recovering financial soundness, we will also accelerate business realignment. We keep upgrading our business structure with more focus on high-end LCD and OLED. We are also accelerating our move to order-based business to minimize volatility coming from supply-demand dynamics to secure a stable revenue structure and strengthen our future business portfolio.

If I were to tell you the direction of the strategy for each part of the business, the large product group will switch to an operational system based on real-time demand, and we will focus on practical growth by establishing a basis for revenue acquisition through the strengthening of product and price competitiveness. In addition to the ultra-large OLED, we would like to expand the influence of the life display business, such as expanding products that are differentiated based on customer value such as gaming.

In terms of strategic orientation for each business segment, in large panel products, the company will shift to an operational structure based on real demand. We will strengthen our product and cost competitiveness to secure the basis for profitability and focus on qualitative growth. In addition to ultra-large OLED, the company will broaden its live display business by increasing differentiated products based on customer value, such as gaming. But under the conservative outlook that macro uncertainties will persist until next year, we will manage our business under tighter criteria.

In the case of the medium-sized product group, it was the main revenue business sector based on differentiated technology and solid customer structure, The legal product area is linked to LCD TVs, and the variability is increasing. In response to these environmental changes, we will strengthen customer relations and strengthen the business concentration strategy centered on high-end products. First, we will reduce the actual variability by expanding the occupancy rate of high-end monitors and laptops with competitive discrimination. Also, we will reduce the actual variability by expanding the occupancy rate of high-end Median products used to be an important revenue source based on differentiated technology and a strong customer pool.

But general-use products are increasingly showing volatility in connection to LCD TV. Against this backdrop, the company will strengthen its customer relations and strategy of concentrating on high-end products. We will first increase market share in high-end monitors and notebooks, where the company already has differentiated competitiveness with the goal of minimizing business volatility. And the company will prepare monitors based on its competitive large OLED technology, starting with tablet OLED, which will go into mass production in 2024. We will also broaden into notebook OLED. Our goal is to keep strengthening medium OLED business portfolio over the mid to long term.

In small OLED, we will further strengthen our capability in order-based business

with an eye toward stabilizing business operations and preparing the next-gen technology at the right time to take initiative in future businesses.

In auto,

The company is solidifying its leadership and winning global OEMs' trust by running customer-specific strategy that provides differentiated value in each category like OLED and LTPS LCD.

앞으로도 차별화된 고객가치 제공을 통하여 미래 초격차 성장 사업으로 육성해 나가고자 합니다.

The company's hard work over the years in auto business is now bearing fruit, with growing achievements coming out of our early investment. We will keep developing our auto business to be the overwhelming leader in the future by providing differentiated customer value.

앞서 말씀드린 재무건전성 회복 방안과 The company will try to secure stability and upgrade future business portfolio through the aforementioned financial soundness plan and strategy to accelerate business realignment. Some positive signals began to emerge recently from changes in LCD panel price.

but the company will still keep up the strong drive to implement our business strategy. The challenging business environment is expected to continue into next year. The company will realign its strategic tasks in line with the changing environment and heighten its execution to position ourselves for another leap forward. Thank you very much for your attention.

That brings us to the end of earnings presentation for Q3 2022.

We will now take questions.

Operator, please commence with the Q&A session. 질문을 취소하시려면 별표와 2번을 눌러주시면 됩니다. 원활한 회의 진행을 위하여 질문은 한 분당 두 가지 이내로 부탁드립니다. Now Q&A session will begin. Please press Start 1, that is Start and 1 if you have any questions. Questions will be taken according to the order you have pressed to Start and 1. For cancellation, please press Start 2, that is Start and 2 on your phone. In order to allow as many Q&A chances as possible within the restricted time, we would appreciate only two questions per participant. The first question will be presented by SK Kim from Daiwa Capital Market. Please go ahead with your question.

Hello. Thank you for the question. I have a question for OLED TV and a question for cars. In terms of OLED TV, I think it's more important for companies to turn around OLED TVs in the market. Recently, There was also an article about the stop of the operation of the OLED TV line. But now, as you can see from the company, the OLED TV business, of course, is not doing very well right now, but when will it be possible to make a meaningful turnaround? Also, for this, what kind of prerequisites are needed? I'd like to ask you to tell us in more detail. Second, the CFO said that he expected meaningful results from the second half of the car. I'd like to ask you to tell us in more detail about the water storage and the OLED. That's all.

I have one question about OLED TV and another regarding auto business. First, I would say that it would be very important for the company to achieve turnaround in the OLED TV business, but recently there have been some news about the suspension of the OLED TV line or production cuts. So then for the company, when does it I expect to see a meaningful turnaround in the OLED TV business. And, of course, I do understand that the market is currently quite struggling, but when does the company believe that there can be a turnaround in OLED TV business, and what are the conditions that you believe will enable such a turnaround? And the second question is, the CFO also mentioned this briefly in the presentation about how in the auto business the company will be seeing meaningful achievements in the second half. And if you could share more details regarding such achievements. So for example, what would be the order backlog in auto business and also any developments related to OLED? Regarding the large OLED business, it will be Daniel Lee in charge of large display marketing who will respond to the question.

Our love.

As we all know, there is the macroeconomic crisis that is ongoing, and there is also the assumption that the Russia-Ukraine war will perhaps last longer than initially expected. So there were also some thinking that it would be inevitable for us to adjust the utilization in order to not undermine the value of OLED. And so we would, for the time being, we would be maintaining our capacity in line with the real demand in order to enhance our cost competitiveness. And for the remaining lines, we would also be utilizing them to broaden our business in such areas as life display and also for other development purposes.

In the future, we will gradually increase the operating rate by monitoring the real-time movement of TVs. As our CFO explained earlier, we will expand our business in the field of gaming

So regarding the TV business, we will be upwardly adjusting the utilization rate later on as we monitor the real demand development. And we will also try to broaden our products that offer differentiated value like gaming, as was also mentioned during the presentation.

Yes, I'm Kim Hee-yeon, the Group Leader of the Experience Strategy Group.

I'd like to add one more thing about OLED.

There is an issue about the macro situation and the lack of demand, but compared to the 10% in Europe in the entire TV market, OLED's European share is 45% higher. That's why the recent low-cost war in Europe has had a big impact on the sale of self-made OLEDs. We don't know when this situation will end, so we think it's better to reduce the risk. If the situation in Europe improves, I think the sale of OLEDs will improve as well.

Now, of course, there is the macro situation that has dampened demand, but also in addition to that, when we look at the overall market, then in terms of the TV, out of the total TV, European market takes up only about mid to high 10% level. But then for the company, for the company's OLED TV, Europe actually takes up over 45%. So given the Russia-Ukraine war, the OLED TV demand in Europe has shrunk considerably. And this then has also affected the sales of the company's OLED. So not knowing when the Ukraine-Russia war is going to end, the company judged that it would be best to hedge our risks. But we believe that once the European situation improves, then our OLED sales will also pick up.

This is Ki-Hwan Son, Vice President of Auto Marketing, responding to your question about the auto business. OLED, premium LTPS LCD의 견고한 수주 활동을 통해 21년 수주 잔고 대비 22년 수주 잔고는 약 40% 성장하였습니다.

Regarding the order backlog, please understand that I am not at liberty to give you the specific numbers. But then in 2020, the order backlog was around two weeks. But now in 2021, 22 period, it had moved up to around four to five week level. And so this is thanks to the, sorry, so it's actually, so in 2020, it was around 2 trillion won. And then in 21, 22, it was around four to five trillion won. So on the back of strong sales efforts for both OLED and a premium LTPS LCD, The order backlog has gone up by about 40% in 2022, YOY.

The order backlog has gone up by about 40% in 2022, YOY. And for the order backlog for the OLED, now in 2021, its share was about 30%.

In 2022, it went up to 45%. So we see that there has been a stable and steady shift in our business portfolio toward OLED. And now, in terms of the OLED mass production, now to the premium OEM, we are currently preparing about four to five new OLEDs.

I'll take the next question. The next question will be presented by Jang Jung-hoon from Samsung Securities. Please go ahead with your question.

Hello, I'm Jang Jung-hoon from Samsung Securities. Thank you for the opportunity to ask me a question. I'll ask you two questions. One is about the direction of the channel price. Also, I'd like to ask you a question about the IT panel. First of all, in terms of the price of the panel, it seems that the price of the panel is showing a slight rebound, but from the perspective of a set company, the price of the panel has been lowered, so it doesn't seem to be actively selling a small rebound. I would like to ask the company to analyze the demand in general, and if there is a strategic decision by the company about how the price trend will flow in the future. Secondly, regarding the IT panel, the IT panel business area has become quite large. Recently, the business plan of the laptop companies is becoming more and more conservative. So from our point of view, in addition to the recovery of the demand for IT, the price of the IT panel will also be reflected. If there is, when, if not, to what extent this situation can be delayed, there will be various conditions,

I have some questions about the panel price and then the IT panel. Now, in October, we see that especially for the TV, the panel prices have begun to rebound. But then for the set makers, regardless of the panel prices being down earlier, The demand, so in their case, the demand is not really picking up very actively. So then how does the company currently see the developments in demand? So what is the company's projection for demand? And also with regards to the price trends, what is the company's forecast? And the second question is about the IT panel. And we see that the IT panel's share out of the company's total business continues to rise. But we see that the notebook companies still maintain quite conservative business plan. So then when the IT demand picks up, then does the company also believe that the IT panel would begin to rebound as well? And if not in the near future, then when does the company believe that that will happen? So if you could share this information with us, that would be helpful.

I'll tell you about the panel.

This is Ki-young Lee in charge of business intelligence responding to a question about panel price. Recently, we are seeing some positive changes in the LCD panel price, so the prices of the LCD panels going to China.

가격 상승 시도가 함께 일어나고 있고 이러한 시도는 지속될 것으로 판단하고 있습니다.

The situation in the market is that there is still oversupply, but in order to ensure survival, the panel companies have begun to increase the prices and we believe that this attempt will continue.

그러나 전반적으로 올해와 내년의 수요를 It's a very weak market because of the macro malformations. Because of this reason, in a situation where the cost of the panel is insufficient, the increase in the price of the panel or the consistency of the panel is not certain.

But still, the demand for this year and next year will remain weak due to the worsening macro environment. So given the dampened real demand, the rise in the panel prices, there are a lot of questions on whether this will be sustainable.

IT의 경우도 수요의 회복이 내년도 하반기 이후에나 가능할 것으로 보이기 때문에 패널 업체들의 가격 경쟁은

And in terms of IT as well, the demand is expected to recover after the second half of next year, so the price competition among panel makers is expected to continue. But at the same time, the situation where it is lower than the cash cost cannot continue. So we also believe that there is going to be some self-adjustment efforts by the industry, for example, restructuring or production cuts. and this will serve to reduce supply.

Now, when there is still a high level of demand uncertainty, if there is no large-scale adjustment on the supply side,

then the panel prices will remain weak.

The next question will be presented by Won Seok Jung from High Investment & Securities. Please go ahead with your question.

Hi, I'm Won Seok Jung from High Investment & Securities. I would like to ask two questions. You mentioned the 7th generation domestic TV set and the 8.5th generation TV set. I wonder if you can share the schedule of the shutdown. And when you decide to stop operation like that, I wonder if there will be additional one-time costs. I have two questions.

The first is about the LCD exit strategy. The presentation mentioned about the shutdown in the Gen 7 TV fab in Korea and also the Gen 8 TV fab in China. So can the company share with us the timeline for the shutdown? And also in relation to the shutdown, will there also be one-off costs incurred? And the second question is, Now, for the large OLED TV, we see that the demand remains quite sluggish. And, of course, nobody knows when the Russia war is going to end. But can the company share with us some guidance for the shipment of large OLED for this year and also for next year?

Yes, I'm Kim Hee-yeon, CEO of Kepa. I'd like to talk about the Kepa timeline.

This is Hyun Kim of Corporate Strategy Group responding to a question about the timeline for the capacity reduction.

About 130,000 P7s and about 80,000 P8s will be reduced. P7s will be six months to a year ahead of what I mentioned earlier, and at a similar time, P8s will also be greatly reduced. Some are already in progress, Now, we would be reducing 130,000 from P7 and 80,000 from Gen 8.

And for P7, this will be pulling up the timeline by about six months to one year from the original schedule. And for Gen 8, the production cut would also occur around the same time. Some are already underway and some will take place, but please understand that it is difficult for us to give you a fixed timeline at this time because we are undertaking this in discussion with the customers as well as related stakeholders.

The milestones you are curious about and the scale of the cost of one-to-one

And with regards to the questions that you might have about the milestone as well as the one of cost, then we would have further discussions with the customers as well as the employees and try to share with you through IR within the year. This is Daniel Lee from Large Display Marketing responding to a question about the guidance for large OLED shipment.

As you already know, the TV market environment is not good, but the consumer's value perception of OLED TV is still clear. Recently, there has been a decline in some markets, but the sales this year are still growing compared to the previous year.

Now, I'm sure that we all know that the TV market environment continues to be sluggish, but then in the customer's mind, we believe that the value of the OLED TV is already firmly entrenched. So although the market has been struggling, but we see that in terms of year-on-year growth, it continues to grow. and also the company's market share continues to increase. But in terms of the panel shipment, we are expecting negative growth this year, year YOY.

due to the sluggish real sales in Europe and also adjustment by the set makers.

And looking ahead to 2023, the inventory adjustment through the distribution channels and the set makers will come to a near completion by then. So we believe that that is going to reduce the gap between panel shipment and set sales. So in 2023, the guidance for panel shipment would be about 7 million.

The last question will be presented by Hyunsoo Kim from Hana Securities. Please go ahead with your question.

Yes, hello. Thank you for the question. It's a question related to the OLED IT panel. As you said earlier, the OLED penetration response in the medium-sized panel market in the future. Regarding this, I'd like to ask you to tell us about the potential of the LG display in terms of how fast it will appear in the mid-range panel market, as well as the smartphone market. And regarding this, I'd like to ask you to tell us about the potential of the LG display in terms of how fast it will appear I have some questions about the OLED IT panel.

Now for the medium It was mentioned earlier that the company is also responding to the OLED penetration in the medium panel. Then what about the smartphone market and mobile market? So does the company also believe that there would be a similar increase in the OLED penetration as we are now seeing in the medium panel? And so what is the LG Display's view regarding the OLED penetration? And also, there was an announcement last year of about $3.3 trillion investment in Gen 6 IT. So what is the execution of this plan investment so far? And are there any plans for additional investment to be made for the customers in North America?

Yes, it's related to the IT Oil Lady. I'm Kim Hee-yeon, the Group Director of Gyeongsang Strategy.

Regarding the question about IT OLED, this is Hee-yeon Kim from Corporate Strategy responding.

First, let me touch upon the growth potential of the IT OLED market as well as its value. IT OLED is a mobile OLED and TV OLED.

Now for IT OLED, now it is also shaping the market following the mobile and the TV OLED, so I would say that the mobile and the TV market is serving as the basis for the IT OLED as well.

Now, for mobile, because of the multifunctional characteristics, in terms of the PoE penetration, it is close to 40%. But then in case of TV, the OLED penetration is only at 5%.

And for IT OLED, we believe that it would roughly follow the developments or the characteristics of the mobile devices. So we are carefully keeping up with the mobile trends in relation to IT OLED as well.

다만 소비자의 페이먼트 스킴이 분할 3년 등 약정으로 분할되어 있는 모바일과 달리 IT의 경우는 Now, when we look at the customer payment scheme,

In mobile, there is usually three-year installment payment, but then in the case of IT, usually it's a one-time down payment. So although the value is high, perhaps the acceptability on the customer's side might be lower in IT than in mobile.

IT OLED's production schedule is on track with what we have announced and communicated.

And regarding the mass production schedule for IT OLED, we have already given the announcement, and we are on track with this announced schedule. And in terms of additional developments,

We are currently in discussions with customers, but nothing concrete to report yet.

If there are no further questions, we will now close Q3 2022 earnings conference call. Thank you once again for joining us today. Please do contact us at the IR team for any additional questions. Thank you.