Alior Bank Sa Unsp/Adr

Good morning, ladies and gentlemen. I'm Prokop, the investment relations department director. Welcome to the H1 2020 presentation. Now the speakers, Dariusz Szwed, CRO, then Maciej Brzozowski, CRO and CFO Agnieszka Nogańczyk-Simeonow. And on the top of that, we have Kamil Nieścior, who is the Director for Risk Strategy Department. I pass the floor to the speakers. Hello, I'm Dariusz Szwed. To put things straight, I'm not responsible for risk, but for business. But, of course, I can tell you a few things about risk as well. Thank you for coming, for being with us. And to begin with, let me just address the key points on the agenda. Despite the negative result, we have a very stable position and also a safe liquidity position. We exceeded the capital requirements requirements a great deal and just to begin with 188 percent now it is still above 170 percent so there are no negative accents we have been running the bank in a safe manner there are no nervousness on the part of the customers of course we'll focus on the financial performance and as we have communicated before we discussed the provisions but today after the first half of the year it is minus 513 and this was due to the one of provisions and of course led by the covet 19 provisions because we have set up provisions worth almost half a billion zlotys so in the Previously, we did not set up the COVID provisions and that's why we had accumulated COVID effect. That was the decision of the management board to estimate COVID risk in a very conservative manner so that this provision is more than sufficient. And nevertheless, in the COVID heat, We have observed visible sales trends. We are very happy that the key Aliorbank products, namely mortgage loans or in the corporate banking also loans, the performance is very good. And this is a very positive impact. We have noticed we are now the beneficiary of the changes we implemented earlier. For example, the COVID also forced us to accelerate the development of the digital banking and the digitalization process. And I will talk about this more in a minute. And the cost of risk, 4%, very interesting for market analysts. And this is due to the 418 million COVID provision. And then if you deduct that, then the COR would be at the level of 2.4, excluding the COVID provision. Now, let me tell you briefly about the bank's position concerning equity. So let me repeat what my colleague has just said. As it was mentioned, the capital position of the bank is, equity position is very good. The tier one, we are exceeding the regulatory minimum by 400 points, 464, that's the upper graph in the slide. and then TCR total TCR 522 basis points which is 2.5 billion and then the bank's liquidity on the left hand side also very high level the bank has been very cautious concerning liquidity level now it's 187 percent so the liquid the safe of the bank in terms of equity in terms of liquidity is at very high level on the top of that In relation to what the CEO has just said, I would like to tell you our net profit loss in the first half, the loss was minus 513 million. And as a matter of fact, it was contributed by one of events and repetitive events. I mean recurrent events and if the one of events such as COVID-19 which accounted for 339 it was the provision for COVID and then 12 million repayment holidays And then we also made a provision for the Court of Justice of European Union. And then the right of for goodwill, also due to the deterioration of the macro environment. All these, the total is 495 minus. It's on the top of the slide. This really contributed to the loss. That's why when we compare our performance to the first half of the last year, where we recorded a profit of plus 95 million, now we have minus 513. And it was heavily hit by also by the... interest rate cuts the net impact we estimate minus 90 million and also the judgment of the court of justice of the european union if not for kovit 19 then our profit would be up up to the level of 146 million And that's the current situation. And as I said, I'm just going to signal what we'll discuss in detail later on. So we'll focus now on the four key products, the cash loan plus the corporate loan for businessmen, also microloan. And we have noticed for these four key products very good trends. And here you can see there is a loss because we introduced some constraints in the times of COVID-19. So we carried out a classification of high risk industries, medium risk industries and low risk industries and the new portfolio classified according to these criteria. It performs very well and this is not constrained by the acquisition of new customers. And I will tell you more about the mortgage loans. and in the times when Allure has to find new ways out to reduce its negative result so we have focused on the mortgage loan from the beginning of this year and in the second quarter we recorded sales at the level of 600 million zlotys and now it exceeds already 1 billion zlotys and then the performance in august shouldn't be worse and then i believe that in consecutive months there will be a growing trend, so we believe that mortgage loan stabilizes Alior's portfolio and also it gives us power to acquire new customers in transactional banking. So originally the earlier was the lending bank and the transactional banking was lagging behind just a bit. So now we rolled up our sleeves and we are working very hard on boosting the mortgage lending activities. So that's why we value, we treasure such customers and we would like to acquire more such customers. And now record sales in the business segment. So in the second quarter, more than 2 billion zlotys. And this is the best performance in the business segment in the last six quarters. But when we look at the trend in July, it was also very promising. In July, more than 800 million of new sales. And these are secured mortgage loans and also backed up with the guarantees of Bank of the National Economy, BGF. And we were a bit taken aback by the COVID-19. But despite the coronavirus, we managed to do a lot of things. So already a couple of months ago, we were able to verify the customers remotely. Now we have a new product since April, which is the Selfie Loan, which is a verification method using the selfie in a smartphone. And then another method of verification is the Authenti, more than a lot of customers are using this method of authentication and please note the the boosting of boosting effect felt thanks to the covet and then we opened up a new customer segment namely cash which is an innovative lending platform and this platform can be enjoyed by more than 10 000 employees of the pzu group the largest insurer in poland and also other entities so the innovative solution is that the employer can verify and process employee data and also the repayment of the loan installments is done automatically and then i mentioned that we have also the two new initiatives that we have implemented fully implemented So first innovation is the Booksy application, which is the automatic queue management. And then the second one is the EdoApp application for verification of the customers, authentication of the customers without a need to pay a visit to a branch office. And then the last innovation, we implemented a new credit card for the LoL, which is League of Legends funds. And we have made an observation which is interesting from sociological perspective. Most players of the League of Legends games are in the age bracket from 30 to 40. So that's why this League of Legends credit card is a magnet which attracts them to our bank. now briefly how we are perceived by others we are very happy with the performance in this quarter in the first half of the year we were given four awards first is the golden bunker we were given this price not for the first time in the history that's very good trend that's a cash loan which is our flagship product and the pools business daily gave us another price consecutive price in a row they appreciated the services offered by our brokerage house And two awards, which especially in the times of COVID, coronavirus, are important. I would like to express appreciation to our employees. The customers had to stay at home because of the quarantine, because of the lockdown. And still the bank personnel worked very hard and we were given the Golden Receiver Award and also Telemarketeer of the Year. So we are very proud and I would like to thank all the employees and their contribution. And now let me pass to the section and to explain how we estimated the portfolio impairment in the times of COVID-19. Of course, we applied very conservative approach and when estimating the impairment write downs and from the portfolio perspective, We assumed several development scenarios for the Polish economy. And also we tried to estimate the depth of the recession that could emerge. So we adopted three scenarios for our analysis. First is the base scenario, which is a V recession. The second is pessimistic scenario, where there will be more infected people with coronavirus. But what is crucial for the economy after the first hit of the COVID-19, there will be a VW recession and then the V recession will have a small amplitude, which means that we will recover quickly and the depth won't be very high. In our opinion, the most probable is the baseline scenario, the base scenario. so we had we focus on the base scenario and then under this base scenario we analyzed a number of options and then we evaluated estimated the risk components so the first option is the probability of default how it would translate how it would impact our portfolio. And then the second is the collective recoverability of portfolios, which is the BDG. Because in the deep recession, the recoverability of the securities collaterals would drop significantly. And then EOD, which was assumed that as a result of the recession, the customers will require increased funding. However, it was not confirmed by reality. So that's why this component has small impact on the whole picture. But I believe that it was a very cautious and reasonable approach. And the fourth component is the top customers, the largest customers, and you need to look at them on a one-to-one basis. And then we recalculated the value of the probability of default, which went up to 5.53%. And as a result, after recalculation of all the parameters, we received the value of the write-down for the portfolio worth 418 million polis lotis, just to account for the COVID-19 impact. At the same time, in this slide, you have the deliverables of our analysis, namely the PD 26% share, LGD 37%, then small percentage share, which is EAD, and then the top transactions, also a lot of impact, 35%. Then another point which I wanted to make especially when considering the COVID-19 impact on the bank performance and also the portfolio performance. We extended 46.5 thousand for retail customers, I mean the repayment holidays. Then three three thousand eight hundred for the business customers and interestingly enough those the customers who were granted repayment holidays already out of them and the total amount of 692 million already been completed and Out of this 329 million, there are people for whom we already know that they are not going to continue repayment holidays. And please note that only 10% are in default and they have past due liabilities above 30 days. 10%. customers and that's the number of the customers and then the next point I wanted to make we have not we are not watching high number of applications for repayment holidays this is a marginal number and to sum up this section briefly the earlier banks activities to support its clientele to provide security financial security which is our common goal so the repayment holidays were granted in the 46 500 cases in the retail customer segment 300 a 3 800 for business customers and also you have the figure for the lease customers which is 21,897 customers, lease customers. And then the loans with BGK guarantees, we extended 2,400 guarantees under the new terms and conditions for the total amount of almost 900, 400 million Polish zlotys. And then regarding the subsidies under the financial shield, we paid that amount of money which is given in the slide number 13. And then next slide, number 14, is the impact of the interest rate decline on the financial performance. And this is true not only for the Allure Bank, but all the banks in the sector, in the banking sector. And as we mentioned before, The bank estimates the interest rate cuts to be worth 116-133 million Polish zlotys and this of course had a major impact on the decline of interest income. And now the measures taken to minimize the impact of COVID-19. There are a number of measures taken, but on the revenue side, first of all, the change in the fee and charges table, the enhancement of the margin on the new cash loan fee, Then we boosted cross-selling of products. Also, we restructured the deposit interest rates. and also we develop the banking services through remote channels on a big scale and this of course allows us to safeguard the customers from direct contacts and this is due to the epidemic reasons and then on the cost side of course the cost optimization regarding all the businesses active in the Polish economy. For example, the reduction of the office rental expenses, also the reduction of the Alior Bank's brick and mortar infrastructure, namely the branch offices, the number of branch offices was reduced. and also digitalization of the selling process and also pre-sale process. And of course, we are a part of the PZU group. We seek synergies with the PZU group, for example, through joint procurement initiatives. And we are still striving at the reduction of the infrastructural costs. Next part, operations. And that's the picture in the first and the second quarter during the times of pandemic. So the number of retail customers more than 120,000 up. and we are very happy with that and we acquire these customers through traditional channels but more and more we acquire customers using the online method and I'm going to emphasize, reiterate that again and again we focus on the relationship banking and then we noticed that the number of customers with permanent inflows to the bank is going up on a year-by-year basis. The increase this year is up by 4% and this is very needed by the bank to generate interest income And we were taken by surprise, not only us, but also other banking sector players. So now we are re-engineering our sales forces in order to take bigger advantage of the interest income. and increase of the number of customers using our credit cards up by 24%. So we will enjoy in the consecutive periods, we'll enjoy the snowball effect. And now the sales of the cash loan through remote channels. that's in the upper left-hand side corner. And then we cut out a few branches, a few industries, like financing of the retail customers. So in order to remain reliable, we are showing you the picture as it is. We are selling more and more current accounts through the remote channels and also the savings accounts, which is KO online, in the left hand side corner at the bottom, size of ROAR and KO online. And furthermore, So our evaluation in the Google portal is 4.6. The score is 4.6 out of 5. And so the customer satisfaction is very high, but it was not easy to achieve such performance. So in the times of COVID, where the tellers at the branches They had to work shorter. Then we had to also increase our personnel at the call center. And then also we are boosting our activities. in the non-relational banking it is 36% already and then relationship NPS it's going up as you can see on subsequent consecutive bars and then in our partnership outlets the NPS is very high. Now in the second quarter of 2020 it reached 87% and we also remember that the We also make sure that we simplify the communication with the customer. In the second quarter we simplified 240 bank documents. And now micro business segment, I mean the micro businesses. So the number of customers on a year-to-year basis up by 15%. And then if you look at the graph on the right-hand side, on the top of the slide, new business customers, unfortunately, the value is negative, minus 13%. And you know why? Because in this micro business segment we have one man shows, which means sole proprietorships that were the most severely hit by the COVID-19. And in this quarter, we are halfway through, although we have noticed a reversal of this trend. So the customers will feel now eager to inject new life into DERA one-man shows. And then if you look at new customers in the micro segment acquired online, you can see it's up by 38.8% and the number of the customers who are willing to pay social insurance contributions and also to pay taxes using our account, the number is growing. So despite the hard times, our customers are active and they are coping very well in financial dire straits. And then the last slide is the share of new microaccounts with the debit card.

We want security. I will keep stressing that. We wanted to show to you that new sales to the micro segment is secured with BGK guarantees. These guarantees, as you know, allow us to get a refund from that fund in case of customer default. because we want this portfolio to be secure, and it is secure. Let me say that we keep observing the growth of the micro-portfolio. And it is being covered more and more with the BGK fund guarantees. So we also were able to extend this coverage period for our customers. We want this cost of risk rate to improve, of course. You would probably ask about that many times. But our forecasts here are quite optimistic. But, of course, we don't want to have any more new write-downs. Now, the medium-sized and large customers, we see them to behave more actively. The number keeps growing, and they connect to the Bank Connect service. customers who connect the operations to the bank system, which means for us that the customer is banking with us on the daily basis, making all payments to the tax offices and social insurance. So we promote this service. We want the customers to stay with us for good. And the fact that the customers who use their payment accounts, their population is quite stable, although we want it to grow. That's what we work on all the time. Now, sales. Let me come back to sales. The second quarter is more than 2.3 billion of new sales to business, except for the micro businesses. In this second quarter, the medium-sized and large companies prevailed. dominated because we are building up this portfolio quite deliberately. All these transactions are well secured with mortgage or BGK, so we do not expect any negative events here. We will continue this trend, of course, in the future. The new quarter has started very nicely. August is not as good because it's summer holidays and many people are away. But the pipeline that we have built for September suggests that we will probably reach the second quarter's performance. If not, we will be close to it anyway. And now automatic decisions. This is a subject that we work on regularly. For some time now, the number of decisions issued automatically is growing. We will continue developing this area because that cuts the costs of our operations. So we will stay doing that, keep doing that. Maciej mentioned how we were helping our customers during the COVID time. Well, what has not been said so far? The liquidity guarantee funds gave us half a billion zlotys support to generate a large lending action. We expect to be able to support our customers very strongly and nicely. Now the number of applications is growing, so with this good collateral and so on, we will be able to build a portfolio that will generate incomes for us in the further months and quarters. But photovoltaics and the... These products have generated the first transactions already. We will do it more and more actively in future. We have a special team in Allure Bank that will work on the strategy, the bank's strategy of using the industry of renewable energy. We will cover with this strategy the retail segment. We want to finance the individual customers who use photovoltaics. We will also work with the suppliers and manufacturers of those systems. And we will also finance innovations in small and medium-sized businesses as well as the big photovoltaic farms. We have already some credit applications from those. And, of course, we will have it well secured. The shield, Maciej mentioned something about it. Now, 28 applications, 17,000 customers received a subsidy. It was 2.7 billion zlotys in total. So in percent terms, I think we will go for not less than 5% of the market. We have reached this target, and in terms of the subsidy, we have now 5% of the market, which makes us quite happy. Now, ladies and gentlemen, the financial performance and numbers. As Derek has said, when he spoke about the income side, I will repeat that, as you can see, the incomes... on interest income. And these figures were lower in the first half of the year than in the previous year. But we are optimistic about the fact that we can consider it a starting point. And in the second half of the year, the results, the performance, will improve largely. We have made some provisions for COVID. And this is the cost here in the cost of bank operation. We are quite optimistic because these costs, when compared to the first half of the last year, are lower. We have come up with a number of cost-related initiatives. We are studying the individual lines here, the cost items. And in... we have also then there is not that 513 loss which has been mentioned before now interest uh income this is a comparison of what is actually and what the situation would look like without the European Court. If you compare the first half of the last year to the first half of this year, you will see that We would have, this year, we would have a result, not 1.5 billion, but 1.77 billion. The structure of incomes, interest income, it's the credit income and other incomes is 222 million. That's the numbers for this year. Indicators. As you can notice, the margins are a little bit down because of the lower interest rates introduced in 2020. Apart from that European Court effect, this is another impact. Now, the fees and commissions. In this year, in this half of the year, we have done better than last year. These are mainly fees and commissions on credits, on accounts, on transactions, payments, and also fixed transactions. And of course, the payment cards handling plays a role in this structure and commissions for insurance sales. I hope here when COVID is over, the customers will become more active and we will see better performance here. in quarters this number these numbers were changing but they were quite satisfactory costs of the bank's operation as i mentioned in the first half of this year the costs were lower despite the fact that the bank the main cost of bank is the payroll and in the first half of the year these costs were higher than in the first half of the last year nevertheless the This was because we took over a group of ruch chain manpower, but I think that's temporary and by the end of the year it will be over. Material costs... are lower because of those initiatives I mentioned, lower marketing costs, and other costs related to the COVID were also lower. Well, in fact, the national economy slowed down quite significantly at that time. The other items are quite stable. I think this indicator will improve after our interventions. I want to show you the impact of the European Court of Justice verdict on the bank, because on the side of the interest income, this is the other operating costs. It's the provisions that we've made since the verdict was issued on September 11 last year. So we made provisions in the third and fourth quarter, altogether $233 million. In the first quarter, we did not make provisions. But at the end of that quarter, we decided to add a $99 million provision to it. And that provision is, of course, part of the impact on our performance. Now, a few words about the structure of the credit portfolio that we have. The credit portfolio, the total, despite the COVID situation and the economic slowdown, in fact, We are at $61.7 billion, which is more than in the fourth quarter last year. So it's good to notice it. Despite that bad situation, we are growing. Individual loans, we have grown to $35,000 and $213,000. Now, business portfolio, well, this has declined a little bit, which is no surprise, of course. But in relation to the microloan, this has grown quite clearly up to the number of 615 million euros. Now, impairment and the provision coverage And we are gradually and steadily increasing the provisioning, especially in the business segment, as well as the individual customer segment, which is about 67%. But we, of course, we are going very carefully here. in managing this portfolio. Now, cost of risk. As I said, it's 3.96%. Altogether, the cost of risk here is shown a little bit higher than that, but that is because of the last quarter, and it was affected by the COVID situation and the additional provisions None of the banks could have predicted that a few months ago. Nobody knew what would happen. during the covid situation this slide shows the way in which the bank handles the quality of new sales of the cash loans which is a very important product of ours in 2016 The default rate was about 2%. Now, we are staying at 0.5%. A similar situation was in the small customer segment, close to 1.3%. And from that, we went down to 0.8%. And that trend continues, as you can see. So the bank is doing well here. At the same time, I want to mention the change in the turnovers that were changed after the COVID outbreak. We have divided the low-risk, medium-risk and high-risk industries. So for the low-risk industries, the turnovers grew, the medium-risk segment grew too, but the high-risk industries were different because the turnovers dropped quite significantly. Another analysis is the division of portfolios according to the COVID situation. The low-risk industries in our studies make 42%. The medium risk is 80%. And the next circle shows the biggest customers, 80%, are not sensitive to the situation. 5%, well, well, so-so. no matter whether they are regularly banking customers or not. And the next slide shows the sensitivity of our flagship product to the epidemic. and to what happens in the economy during this time. More than 60% of them are not very sensitive to the COVID impacts and 20% so it's quite safe and we do not see any bad events here. I mentioned before the actions that the bank took against the COVID consequences, so we should not forget that we also had to work on our lending policy. So we did, and we have introduced extra studies and analyses for the industries which are, first of all, affected by the COVID situation. It's not any segregation of customers. We just pay more attention to the situation in which a particular customer is working so that we can tailor our products better for their needs. The high-risk segments, well, in that segment, quite naturally, we would need to limit the financing level not to do any harm to them with a loan. The access to some credits was limited in some cases. We also changed the criteria of measuring the credit worthiness. We added to this analysis, we added the subsidies and the guarantees offered by the BGK fund. And of course, we had to take into consideration such things as the potential impossibility to repay the loan. We also extended the availability of guarantees for the small businesses. And the liquidity loan was again secured with the FGPF fund. And we also continue the repayment holidays for some customers. So that seems to be it from us. Now I think we will have questions and answers. There are a lot of questions, so I'll try to sort them out into groups, perhaps. So, number one, some questions are about the bank's expectations regarding the cost of risk in the second half of the year. Well, we believe there will be no growth of this type and no COVID-related provisions. Do you expect to introduce them? Well, you have to look at it in this way. We have a few scenarios, and the most probable, most likely scenario is that this recession will be a V-shaped one, and it will and of course we have some more scenarios but for this one we have made respective provisions this means that in the second half of the year we do not expect the necessity to make more extra write downs if if the macroeconomic situation does not dramatically change. We believe that the write-offs that we've done are quite right and they should not change significantly in the latter half of the year, but of course the environment is not stable and Nobody can be 100% sure. But as a rule, we do not expect. We believe that the provisions cover what they should cover in the proper way. Another question. Does the bank plan to increase the fees and commissions? We are studying this subject. We understand what is the position of the bank sector in Poland and what our rivals are doing. We have already made some adjustments in the recent past. So we might perhaps increase some fees and commissions in the third and fourth quarter, in the fourth quarter. And right now, I think we are studying what other banks do and where we could increase, which fees and commissions could be increased. Thank you. And now... And next question is about provisions for the corporate loans in the second quarter this year. Could you explain that? What happened? Provisioning is quite an obvious thing the bank does for different situations which happen in the life of the loans. So... The bank makes provisions or write downs according to what happens in the economy and something happened in the economy and that's why we had to make these moves. The next question is about what was the repeatable cost of risk in the second quarter and what are the prospects for the same indicator in the rest later this year. In the second quarter, the repeatable cost of risk was lower than previously. So we expect it to go down below the value of the first quarter. But of course, the provisions that we had to make for COVID, it increased our cost of risk. So it will be a bit higher than we would like it to be. The next question, does the bank management, is it going to apply for the, this is about the, with the bank, is going to, what is it going to do about the contribution? No, we do not. Can we know the reason why the fees and commissions on the payment card grew quite significantly? And can you continue this trend for further quarters from now on? As regards the income on cards, they come together with the costs of the cards, so this is a stable value. You have said that you've made 418 million zlotys for provision. Why does it change the third basket? and I am going to reduce the NPL to reduce it. As regards this 418 provision, It includes the model changes and some individual changes that happened. As regards coverage, some of the model, LGD model changes, which are about pricing with the statistical method, and the individual cases that are in the third basket. But this model, of course, right now, is important for the bank. And it will be verified every quarter against the economic situation. And the parameters of the model will probably change. But so long as they are higher, the defaults will be also covered in a higher way And according to the payments that we get from those customers, we need to follow the macroeconomic situation. And now the provision for the European Court verdict. Are you going to... Are you going to... Can you explain why you added this provision and are you going to do more of such provisions? As I said, we have made the European Court provision at the end of the year. It was 243 million. In the first quarter, this provision was... Nothing was added to it because there was no such need. We are a bank... that wants to go about it quite conservatively. And so considering the complaints and the type of portfolio, and we estimated the prospective potential complaints and the conclusion was that we should be rather careful and perhaps add a new provision and we believe that some 98 million of additional provision would be just right for the needs. And the interest margin in the second quarter of this year, the question is what is the forecast? When is it going to reach the lowest level? A quarterly basis, it was about 4%. Now we expect it to be a little bit less. But that depends on the repayment holidays granted to the customers. So in the further quarters, it will grow over this level. And one general question. Do you believe that the present market environment will support a further consolidation of the bank market? I guess this question is about something between the lines, but we are not going to comment on that. As regards the market trends, it's always been a lot of discussions and speculations on it, the COVID and the related situation. and the new ideas that will emerge will mushroom, of course, but we do not expect any dramatic events soon to happen. And the next question, what was the sales in the second quarter of this year? Consumer finance sales were $946 million in the second quarter. In the first quarter, it was $940 million. So we believe that the COVID did not hit on this segment, so it's stable. Now we see the current sales are growing. So our opinion is quite optimistic about it. The cash loan is in the quarter was about 2.5 billion zlotys. So these two loans and new sales is about 4.5 billion zlotys.

Next question. despite big loss, net loss, and the tier one was up. Why the MSR-9 was up by 200 million quarter-to-quarter basis? Well, probably you are monitoring, you are watching the market, and then there were regulatory issues changes and then the regulator helped us when it comes to the preferential multiplier. I'm talking about the RWA. And then there are also COVID-19 related to the basket one and basket two, and these they do not burden the coefficients and then the MSR 9. It was really spread in time. MSR in English is international accounting standard number nine. There are a lot of questions. However, we are already, the time is running out. Could you please comment? Comment the cost initiatives. Is there any potential for reduction? If so, what size and in what area, especially when it comes to the branch network? As I have already told you, we are going to now analyze, scrutinize all cost items. We are going to look for synergies between the bank and our subsidiaries. And we are also going to verify all the contracts and renegotiate contracts if possible. So we are going to find savings and certainly we are going to look at the operating costs of the branch offices and also location of branch offices. offices and we will do our best to utilize our funds in an optimum manner. And I would now finish off the round of questions. Time is out. Thank you. I would like to thank the Management Board for providing the answers and I would like everybody for participation. And now We would like to invite you already for the next conference. Hopefully it will be held live. We would like also to thank you. It was our debut. It was very nice to communicate with you, though in a not very friendly manner. We cannot see you. We cannot be your host, but hopefully next conference will be different. And of course, those questions which were posed, the answers will be provided by our Investors Relations Office. So once again, thank you very much for being with us.