Fagron Sa Ord

Good morning, ladies and gentlemen. Thank you for holding and welcome to the Vagron event call regarding Q3 results. At this moment, all participants are in listen-only mode. After the presentation, there will be an opportunity to ask questions. I would now like to hand over the conference to Vagron. Please go ahead.

Good morning and hello. My name is Karen Burke. Welcome to Vagron's Q3 trading update conference call. Today, Rafael Paella and Karen de Jong will guide you through the results of the third quarter of 2021. We refer to the presentation that can be downloaded at our website, investors.vagon.com. There will be an opportunity to ask questions after the presentation, but first I'd like to hand over to Rafael, who will start on the second slide of the presentation.

Thank you very much, Karen. Welcome all to the Q3 press release conference call. The turnover of the third quarter amounts to €142.4 million. That is a total growth of 5.4%, growth at constant exchange rate of 4.6%. Our organic growth amounts to 4.4% and 3.6%. For nine months, we are at €419 million. That is a total growth of 1.2%, total growth of 5.5% at constant exchange rate. When we look at the regions, EMEA amounts for 41.5%, followed by North America by 32.7%, and last but not least, Latin America at 25.9%. When we go to our product segments, essentials amount 48.3%, followed by compounding services at 31.8%. Our brands amount at 18.1%. And lastly, premium pharmaceuticals at 1.8%.

Thank you, Rafa. Good morning, everybody. This slide represents the turnover development per region for the third quarter of 2021. The EMEA sales shows a decrease of 6.2 million or 9.7%. Latin America shows an increase of 3.1 million euro or 9.6%. North America shows an increase of 8 million or 20.7% driven by a strong performance in Fagron compounding services. There's a small positive impact of exchange rate fluctuations of 1.1 million and an amount of 1.4 million related to the acquisitions resulting in a sales of 142.2 million in the third quarter of 2021. If we move to the next slide, We will present a geographical breakdown of the sales per region for the third quarter, and we'll dive a bit deeper into each segment in the next couple of slides. This slide shows that EMEA had a decline of 7.8%, resulting in a sales of 59 million. Latin America shows a total increase of 13.3% compared to last year, while the U.S. shows an increase of 20.7%, resulting in a sales of 46.5 million euros.

Thank you, Karin. When we go into the three regions for EMEA, as Karin said, our sales amounted to 59 million euro. Growth of decline of 9.7% of the concept exchange rate. When we look at the two segments where we are active in, the lower sales of compound services results of the registration, mainly of the registration of non-sterile compounds by third parties in 2020. These amounts approximately at 700,000 Euro for Q3 in 2021 and the negative development at our B&E segment. It, of course, as always stated in the semester one results for the decreased amount of COVID-19 related products and the slow recovery of the electric cars. As well, as we also explained, there's pressure on the supply chain as a result of the corona pandemic and a slight delay in the transition of the new repassing facility in Poland.

Yes. This slide represents the turnover development in Latin America. We see a total growth of 13.3% or 9.6% against constant exchange rates in the third quarter. All countries contributed to this positive development. We are well positioned here to benefit from the increased focus on lifestyle and prevention. Markets are fully cash-based and a lot of the products in the portfolio are related to preventive care.

Thank you, Karin. And now going to the North America region. Here we see an organic turnover growth of almost 21%. Our sterile activities in Wichita grow 45%. The run rate amounts to 72 million for third quarter, September 2021. As we stated, we followed month by month. We are successfully introducing new products and new contracts into our pipeline. And of course, we reiterate the confidence to achieve our turnover target in 2022. For Anaseo, we see a nice growth of 34.5% at cost exchange rates. And here we see the growing demand for products focused on lifestyle and prevention in both A and B sites. Brands and Essentials, a slight decrease of 3%. And here we see the demand of COVID-19 related products that we saw last year that we did not have in 2010. Last slide, expectations for the last quarter, 2021. We will see turnover grow with Revita on lower end of bandwidth of between 118 and 124. We will continue to focus on improving the EMEA performance. We will continue strong performance in both Latin America and North America. We continue with our active and disciplined acquisition strategy focus at EMEA and North America. And we're going to organize a capital market day during Q1 2022 where we're going to give a strategic update and meet them targets for the three regions and final group as all. And now we open the floor for questions.

Thank you, sir. Ladies and gentlemen, we will start the question and answer session now. If you have a question or remark, please press star one on your telephone. Go ahead, please, star one for questions. And the first question is coming from Lenny van Steenhuizen, KBC Securities. Please go ahead. Your line is open now.

Good morning. Two questions from my side. I think overall we see that the U.S. and Europe are acting quite differently, let's say, in terms of the environment post-pandemic or the lingering effects of COVID. I see that in general in the U.S. the compounding is recovering actually quite rapidly. still the US brands are flat quarter over quarter and let's say performing relatively modest in terms of revenue was wondering in terms of what dynamics are really driving that weaker US brands compared to a very strong compounding segment and then a second question from my end was on the delay mentioned on the Poland facility was wondering how you see that impacting your margins for this year what the expectations were already implemented for margin contribution for this year, and what exactly, how can we quantify that delay? Thank you.

Thank you very much, Lenny. Good morning for North America. As you saw it well, the compounding services activities or the compounding activities are performing well. On the brands and essentials side, what we see, we also saw it in the last quarter, is that the COVID-19 related products and hand sanitizers and this kind of products that we sold last year, this year are unexisting. Of course, last year, these products were compensated the decline of the elective care. It's true that the elective care in the US is coming more rapidly than in Europe. And we see it also back in our underlying business, but though we are not able to compensate the COVID-19 related products that we sold last year. Here going forward in Q4, we will see the same pattern as we also were selling this product in Q4, though in 2022. And as you saw, this underlying growth will be seen for 2022 in the Brands and Essentials business segment for North America. Regarding the Poland facility and the transition to that plan that we started in April, and we said that the first product would come in July, being the case, so as we speak, we're having the release of these products. One important element for us is that we internalized our quality control, so we're externalizing that part of our activity that is important for us, it's relevant. We have internalized this one, and we're seeing some slight delays in the setup of the quality control that now it's catching up, so it's getting up to speed. And regarding the margins, what we stated that in 2022, we would see the full benefit out of it, and we're still confident that this will be the case.

Perhaps adding on to your comment on the first question, Rafa, on the U.S. branding, we see that revenue right now is, let's say, below or around pre-pandemic levels. So also apart from the COVID impact, so you indeed had a boost, let's say, in 2020 with the COVID-related products, but also aside from that, there does not really seem to be that much growth in the overall segment. So are there also other aspects here in this segment beyond COVID that could impact sales in the branded segment in the U.S.? ?

Here, again, what we see is that the underlying business is performing reasonably well. We have brought together the sales team of BNB, Fagroning, and Hamco, and we are combining the portfolios here, and we are going to see the benefits out of it. Of course, we are the challenger in that market, and we expect to grow and to see the growth when the COVID-19 related items are setting out, Lenny. All right, thank you. Thank you.

And the next question is coming from Mr. Steinmeister RNG. Please go ahead.

Yes, good morning. Thank you for taking my questions. My first one, excuse me, is on EMEA. Given the rate of this region in your profit mix on group level and given the organic decline seen in the third quarter, can you sort of give an idea what gives you the confidence to achieve the low end of the guidance, which still implies an 11% improvement over the first half? So have you seen a shift in the way you can pass through these higher costs versus the first half, or are you banking on a very strong Q4 to achieve this level? Any color here would be helpful.

Yes, sure, Stein. Good morning. Also, what we were referring in our semester earnings call, due to the supply chain challenges that we are facing in Latin and North America, passing through the crisis It's easier for us due to the marked characteristics. When we go to EMEA for some customer groups, we have the contracts that you are referring, that we have agreed terms and conditions, and we started working in order to adjust these ones, and we're going to see the effect towards the end of this second semester, and therefore gives us the confidence to getting into the stated guidance that we gave in the semester call.

Okay. Okay, helpful. You also mentioned for EMEA potential measures to minimize third-party registrations. Can you give some color here what this could entail? Do you have a legal ground to do this, or what measures are you referring to?

Sure. When we started in 2017 reporting the Primo Pharmaceuticals, that was for us clear that we should start looking at registration of our big compounds that normally in the past we didn't take specific action on it. So we started with building up an internal team, of course, in order to focus in the registrations of the big compounds, but also in getting back some of those that were registered by other parties in the past. Here, next to our internal efforts, we work with partners that help us in order to register, and we are developing, we have developed, and of course this is a living, we are actively developing an SKU pipeline in order to bring these registrations to the market. We have already some, you can see it back on the sales development, it's 4.4 of the total turnover in the region. And of course, here we depend on external bodies in agencies in order to get the authorization to go to the market that has our full focus and attention in order to protect the compounds, mainly the big compounds. Of course, the good thing is that every time it is lesser, the average weight of the big compound is getting lesser as the bigger were of course registered by other parties, but also here is time to get back the sales that we did miss in the back period.

And how does it work to get back the sales? I mean, a compound is registered by a third party. I mean, is it allowed for you to register? I mean, how does it work to sort of get back the sales?

Sure, so you get this product, this compound is being registered by another party, but this does not implicitly mean that other parties cannot also register this product, right, and that you can also market this product as a registration. So other parties can also register this product and enter the market with this registration.

Okay, thanks. A final question on the U.S., on Wichita. It's not entirely clear if the 72 million is a September run rate or a Q3 run rate.

Sure, Stein. And here is what we said, and that is also how we want to communicate, is that we are going to give the monthly, the last quarter, the last month of the quarter, sales and grant rated for the full year. So when we take into account the month of September, we're at $6 million, so grant rated $72 million.

Okay, understood. So the 72 is September. In June, it was 70 million run rate. So in the 72 million, how much sales of the U.S. compounding asset is implied? Because if I'm right, this had a run rate sales of 6.5 million. So what is in the 72 million from U.S. compounding?

Yeah, sure, thanks. So here what we see, and when we look back at the U.S. compounding, what we acquired was the sterile human activities of U.S. compounding. What we, or what Andrew Pulido explained during the August call, that the onboarding part of the U.S. compounding business, by the way, we only pay when we invoice the sales, but also when we receive the money from the customer, right? So This is an ongoing process and our expectations is that this should amount at the end of the whole process to 6.5. So this onboarding is taking its time and it's going to be growing month by month. The Q3 impact on the U.S. compounding has been limited as we also stated during that call or as Andrew Polito stated during that call. So the contribution here has been limited. What we have seen and this is positive in this end, the two customers that were U.S. compounding customers. We have been able to introduce some of our SKUs as we have a broader portfolio regarding U.S.

compounding. So to restate my question, is there any uplift in September run rate of $72 million from U.S.

compounding? It has been limited.

Okay. All right. Thank you. These were my questions.

Thank you very much.

And the next question is coming from Mr. Matthijs Manhout, Kepler. Please go ahead.

Yes, hello, good morning. Can you hear me? Yes, Matthijs. Hey, good morning. I just had a clarification question, actually, in terms of the guidance and the narrowing down of the adjusted EBITDA for this year. I was just wondering... Is this entirely due to the Q3 performance or do you also take into account other factors such as price inflation or inflation on packaging costs, transport costs and API price inflation?

Yeah, good morning Mathias. So the guidance is taking into consideration the performance of EMEA in the third quarter. So what we stated at the end of the first semester is that certain price increases in the market, as we've seen in transportation, also in packaging material, that we can pass those through to our customers and in difference per market when we can do this. So, indeed, the characteristics of the Brazilian market makes it easier to pass it through to our customers. But also in EMEA, we expect to pass that through in the second semester. So we expect recovery of the margins by the end of the year. So the adjustment in profitability or the adjustment in the bandwagon is because of the performance of EMEA in the third quarter.

Okay. And if we look at those inflationary trends and the API price inflation, etc., How is that actually evolving throughout the quarter? Is that broadly in line with your expectations, or is that actually worsening?

Well, here what we see is that you have two elements here, Matthias. That is the supply by itself and then the pricing on it. Here we see, of course, transportation costs have raised a lot. We see somehow an stabilization but not full yet regarding transport, and this implicitly increases your material price. That's one. Then you have the raw materials, of course, APIs. Here we see, as an example, now there's a shortage on amino acids, and you see price increase more in the immune system, like vitamins, minerals, segments of product ranges. And then you see it clearly in the packaging material. Of course, we, next to the essential part, we sell the raw materials, but we also sell to the compounding industry the packaging. Here, what we see is a price increase on the packaging line, but also supply-related issues there as well. So on those three elements, you see a combination of pricing and also supply.

Yeah, but overall, it's evolving in line with your expectations.

It's evolving in line with expectations, yes. Of course, this is new for the industry. This is new for us. And what we also explained last time is that we have set up a team in order to mitigate the impacts that this would have in our day-to-day business.

Okay, clear. And then maybe just a last question. There's a pretty good performance in Latin America. I know Brazil is an important country, but Mexico is also one. It's a footprint that you acquired and you allocated quite some capital to it. Could you maybe update us on the performance of that Mexican business, and maybe also in terms of growth rates, margins, synergies you have obtained? That would be welcome. Thank you.

Yes, sure, Matt. So when we acquired Fedrosa, Fagrum Mexico, almost two years ago, we first worked, as we do with other acquisitions, in the back office, so in the finance and the HR IT elements. And then we go into the, of course, back office is still more close to the business that is on the purchasing side. And then finally, we go into the front office that is more the marketing elements, the rebranding to Fagron Mexico, explaining to the customers what we can mean for them, but also working on the product portfolio, introducing the Fagron brands, but also taking advantage of the cross-chain opportunities that we should have. These first three years, we have been focusing on this back office side elements that we set, so that's completely on track. And now we are fully focused on the raw materials, the purchasing together in order to get leverage. And now, of course, the pandemic brought a bit of a slight decrease into this part of the integration, but now we're fully working as we speak. Last week, for example, the Mexican team was in Brazil working together with the Brazilian team in order to introduce brands, new products into the Mexican market that, of course, gives a lot of potential for us. So summarizing the back office elements integrated, now we're working into the supply and the procurement side that gives, of course, leverage. And now that we can, of course, the restrictions are lesser now in Latin America. Now the teams are working in order to increase the product portfolio and introduce the Fagron brands also in the Mexican market.

Yeah. I recall there was an ambition to bring the margin of Cedrosa to the average margin of the region. Has that already been realized at this point in time?

As we look at the performance of Fagro Mexico, we see that top line is now increasing nicely, so we have a good quarter. On the profitability target we had, there is a delay, and it had to do with the impact of Corona and the integration mainly on the commercial side. So we acquired the company because we see similarities with the Brazilian market and also introducing our brands there. COVID has resulted in a delay in that commercial strategy. So we did the things on the back office, as Rafa mentioned, on the front end, we had some delays. So we're not at the level yet where we plan to be when we acquire the company.

Okay, thank you, clear.

And the next question is coming from Mr. Eric Wilmer, ABN Auto. Please go ahead.

Hi, good morning, everyone. I still had a question on your guidance, taking into account the lower end of your Revit guidance range and looking at your EMEA performance. And if you would extrapolate that into Q4, it seems that you're still anticipating changes a margin recovery versus H1. I think you already talked a little bit about that, but taking into account ongoing inflationary pressures and the time it takes to pass this on to your EMEA customers, can we actually conclude that you are expecting a rather strong margin improvement in the US and Latin America in H2? That's my first question. Thank you.

Yeah, so thank you, Eric, for the question. Indeed, we expect that Q4 will be better. Some impacts will fade out on that quarter, and we do expect margins to improve. We see Wichita ramping up. We had impact on our profitability in the first semester in Wichita because we invested. We expect to be higher there in the second semester. So we do expect that Q4 will be a good quarter for FAFSA.

Okay, thanks very much, Karin. And next question, what party actually registered the compounds in EMEA or in the Netherlands? And how do you make sure that there won't be a similar risk in the quarters ahead? Is it because you see limited compounds that are suitable to be registered in your own portfolio? And what actually kept you from registering this compound yourself?

Yes, sure. Eric, good morning. What we see now is that our current settlement with the stock compounding now has balanced a lot. So we don't have those compounds that amount a lot or that mean a lot sales-wise in this portfolio. Of course, we are actively looking at registering those ones in order to protect them. But though the impact, if another party would come with the registration, would be lesser. So that's clear for us. Secondly, of course, as we said and as we reported from 2017, this has become an important element from us in order to also bring new products that are not per se the current compounds or stock compounds that we do have, but others that we have of other opportunities that we may have. So we're putting the efforts with the teams and also with external parties in order to bring new registrations into the Dutch market.

Thank you very much, Rafa. And then my last question, could you quantify the impact in Q3 from the drop in demand for COVID-related products in EMEA? So if you quantify the registration element, 1.7 million, is it possible to quantify the impact from the drop in demand for COVID-related products as well, which also seems more, let's say, an impact that doesn't have a temporary nature. So I'm just wondering if you can also quantify that.

So Eric, indeed, if you look at the impact in the B&E side of the business, a large part is related to COVID. So that's on the one side, COVID-related products, which we see the demand decreasing because markets are saturated. Next to that, we see elective care. As you can understand, we have a portfolio of 110,000 SQUs, and it's difficult to quantify the impact of the sales of specific COVID products. So we deliver products to pharmacies, basically in the B&E segment, and those pharmacies compound for patients using those raw materials we sell. So in the end, we do not actually know where the product is used for, whether that's specifically for COVID or for another disease. We do see that a substantial part of the amount is related to those COVID products, but we cannot quantify that specifically.

Okay, understood. Thanks very much. That's it from my side.

Thank you, Eric. Ladies and gentlemen, if there are any additional questions or remarks, please press star one. And the next question is coming from the Jean-Christophe Kempe. Please go ahead.

Yes, morning. Most questions have been answered, of course, but can you elaborate a bit more on the increase in the run rate of Wichita, which is at September 72 million versus 70 million? You refer, of course, year on year that the division is benefiting from many products that have been added and launched and customers as well, but can you comment on how that evolved on Coratron-Coratron base?

Sure. Good morning. So here for the run rate figure for Wichita and also going forward, that's what we also closely monitor with the teams as well internally. We have two important elements. The first one is, and the most important, is the customer onboarding process so that we get new IDNs and of course GPOs that's done but IDNs that is the most important and within the IDNs you have the different members that are being onboarded so it's a continuous process that we have and of course here we have we can see the pipeline of these customers and this gives us confidence that we are onboarding those customers of those IDNs that we are closing the supply agreements, but also new IDNs that our sales force are working on in order to be added into the funnel. So that's one element. The other element is, of course, the SKU race that we, the years, present years, we were giving a lot of emphasis. Here, we said that we should be at 2022 in order to get the target at around 200 SKUs. We are now at 168, so it's going to the good progression. Though the main part of the most important part, that's the IV bags and the most important IV bag, the most important SKUs of those IV bags have already been launched. So those two elements are closely monitored in order to fulfill the monthly target in order to get to the run rate target for 2022, that's one. Another important element that is the most important in the industry, next to quality, is the service levels. And we always stated, and it's also something that we also state to our customers, that we should be, and we are already, at the 97, 99% of service levels. And this is really driving this industry.

Okay. That's clear. Then the second question, the inflationary effects. that you see across supply, transportation, raw materials, is that something that is taking place across the industry, or is it maybe dependent on where you are sourcing or having the procurement in place?

Sure, so here it's important to identify the three elements that are important for Fagron. The first one is transportation that is across the whole industry, but also for other industries, and here we have seen a price increase in the last month, so here we expect that the price should stabilize, though of course it depends on the transportation, how full are the containers and whatnot, so that's one element and this has of course impact on your purchase price, on the calculation of the purchase price when the goods arrive into the warehouse, that's one element. The second element is the raw materials itself, here we see that products, for example, as we were saying before in another question, that you have the shortage at this moment in amino acids, and that is across the industry. The amino acid supply is now in shortage, but also you see increase in vitamins, minerals, amino boosters, these kind of products. Lesser, of course, for the rest. And then what is also important for us, that's the packaging material that we do sell to the compounding industry, also to the hospital pharmacies that do compound. It's an important segment for us in the essentials because we offer the full portfolio into the industry, so the raw materials, the machinery, even the software, the packaging material. In order to make the compounded medication here in the packaging material, we see price increases, but also some supply issues as well. So those three elements are very important to take into account, Christophe.

Okay. And then one last question, if I may, on the two products that have been registered by third party in Q4 last year. Were you also in the process to register those two products? And if yes, maybe first you can answer yes or no to the question, Rafa.

Sure, one of the two is in our current pipeline.

Okay, and what allowed or what was the reason that let's say a third party was more quicker or able to register than Fagron itself? Is it because the composition of APIs was not yet according to what is requested or standards for registration or what is explaining let's say the delay of Fagron versus a competitor?

Here, of course, you never know when a competitor, but also another party, because we need to take into account as well, Christophe, that the registration of a big compound, it's also a majority, what we see, the majority of the cases is being done by other pharmaceutical companies. So we have some examples in the past, a Spanish company or a German company that enters into the Dutch market. In this specific case, because it is a Dutch reality, right, so other parties, So here, of course, you do not know when another party starts with the registration. So time is an important element of this process. But for us, it's clear, and we saw it also in 2017. Therefore, we started reporting that segment. That is now 4.4%. is that we should work on this element in order to protect the stock compounds. But again, now when you look at the portfolio, of course, the amount of the big compounds is lesser, but though we need to do the work there, and also to regain back some of the mis-sales in that period.

A small follow-up then, indeed, I saw that it's 4.4% on relatively, but absolutely, also premium pharmaceuticals did see decline in sales. Even if it's still a small number, but what is explaining then that it is also coming down?

Sure. So here you have a combination of two elements. The one is the decrease on the elective care that has impact not only in the compounding services but also in the premium pharmaceutical side in the registrations that we have. That's one. And the second is that one of the registrations that we have, we have been temporarily, we are not able to sell due to some quality issues of this SKU. It's only one SKU. So it's the combination of both elements.

Okay, that's clear. Thank you for our clarification, Rafa.

Thank you very much, Christophe.

And the next question is coming from Mr. Stijn de Meester, ING. Please go ahead.

Yes, thanks for taking my follow-up. I'd like to come back to an answer you gave, Karen, on Eric's question, saying that the majority of the sales impact in Q3 in EMEA is COVID-related. If I compare to pre-COVID, let's say 2019 sales levels, This also includes the acquisition of Garko, Pharma Tamar, and Dr. Kulik Pharma. And then, if you take into account these acquired sales, then the level that we see today is well below at 2019 level. So I'm curious, what is the sort of difference? Is there a pricing impact, for example, that can explain the difference versus pre-pandemic? Because I cannot fully sort of replicate the assumption you made here that what we see today is predominantly COVID.

Yeah. So thank you, Stijn. If we look at the decrease in EMEA for the third quarter, it's 5 million. If we then look at the two buckets, so premium pharmaceuticals and compounding services, and we exclude premium pharmaceuticals, we have a decrease in sales in compounding services of 4.9%, and that's 8.4% organically. So then we take out Tamar, and we see that we have a decrease of 1.3 million, of which approximately 700K is related to the registrations in the Dutch market. The remaining impact is the recovery, the slow recovery of the elective care and the decrease in the number of doctors visited and a more competitive landscape. So that's on the one side, the compounding services element. Of course, if you look at the quarters before, the impact of the registrations is bigger. So it's approximately two and a half million for the first half year, but last year it was a bigger amount. So the impact of those registrations now fade out for the compounding side, while historically that element was a bigger amount. If we look then at the brands and essentials side, we see a decrease also there basically in the essentials, and that is, as stated before, again, a combination of elements, one, the corona products and the elective care elements. And that's a big part of that decrease, and that's specifically in the brands and essentials, where we see that impact in these quarters, and we also expect that to fade out as the impact of corona products will fade out in the fourth quarters and the ones to come.

Sure, but that's versus 2020. Say, for example, Q3 2019, in essentials, your sales are roughly flat, even though you have acquired some businesses there. So more looking into the bridge versus pre-pandemic.

Yeah, there you see that the compounding side of the business has an impact, as we mentioned before, the registrations. That was a big amount. And there you see that impact coming into that market. And, of course, we saw some competition stepping in. So that had a small impact. So there you see that combination. And I don't think you saw that that much in the brands and essentials side of the business. It was more driven by a decrease in the compounding services side.

Okay. And as to pricing, how has that evolved?

Sorry, what did you say, Stijn? I didn't get it.

Yeah, as to pricing, how has that evolved versus pre-pandemic? Not volume, but pricing.

So we see in the pricing side, here in the EMEA region is somehow stable. So you have, of course, those contracts that we were saying that, of course, we need to renegotiate towards the year end because of inflation. But here we have some stability. when we compare to other markets like LATAM or North America.

Okay, thank you.

Thank you, Simon. Sorry, there are no further questions. Please continue.

No more questions. Then I would like to thank you all for your attention and talk to you in the next quarter call. Thank you and hopefully see you at the Capital Markets Day. Bye.

Ladies and gentlemen, this concludes the Vageron event call. You may now disconnect your line. Thank you.