Melexis Nv Ieper

Hello and welcome to the MI6 Squad of 4 full year 2024 results. My name is Caroline and I'll be your coordinator for today's event. Please note this call is being recorded and for the duration of the call, your lancer will be on listen only mode. However, you will have an opportunity to ask questions at the end of the call. This can be done by pressing star 1 on your telephone keypad to register your questions. If you require assistance at any point, please press star 0 and you'll be connected to an operator. I will now hand over the call to your host, Mark Barron, the CEO, to begin today's conference. Thank you.

Thank you for the introduction. Dear audience, thank you for joining the Melexis fourth quarter and full year 2024 earnings call. Together with our CFO, Karen Van Grisven, I will look back on the past year and share how we see the coming year. I would like to take a step back and give a bit more perspective on 24. It has been an unusual year for Melexis, with significant contrast in our markets. We have started the year with most of our products still in allocation, and the order book has reflected good visibility. As the year progressed and the allocation period ended, we saw that we had avoided the bullwhip effect which is often experienced in our industry. This was, however, not the case, and we did not achieve our original sales target of around 1 billion euros, which is disappointing. Despite this, our 24 sales were broadly stable and significantly better than most of our peers. Of course, there are many highlights in 24. We had a record number of product launches, which is the starting point for future sales growth. The success of Malexis has always been built on enabling our customers to gain market share based on our innovations. I am happy to see that we continue to capture a strong level of design wins in automotive and beyond automotive applications. In automotive, design wins covered a wide range of electrification, comfort and safety applications. In powertrain, the design wins are well balanced across EV, hybrid and ICE, enabling us to capture growth irrespective of the type of engine. Geographically, we had a strong design win performance in China, confirming that we are taking the right steps to ensure our position in this important market. Looking ahead, in the short term, some customer inventory corrections are continuing in the first half of 2025. We continue to work very closely with our customers to manage their short-term outlook while push order requests are returning to normal level. We are closely monitoring many data points and are cautiously optimistic that customer demand will start to improve around summer. We have been through cycles before where customers needed to adjust their inventory levels and each time there followed years of sustained strong growth from Alexis. Many product launches are planned again this year as we continue to invest in innovation. The high number of design wins achieved over the past year are leading indicators of future sales. Content growth is here to stay and we are well positioned to capture it. I believe that the seeds for the next phase of Melexis growth are now being sown. Now, I will hand it over to our CFO, Karen Van Grisven, who will comment on our financial performance.

Thank you, Mark. Hello, everybody. The sales for the full year 2024 were €932.8 million, a decrease of 3% compared to the previous year. The euro-US dollar exchange rate evolution had no impact on sales compared to 2023, and the gross result was €401.4 million, or 43% of sales. a decrease of 9% compared to last year. R&D expenses were 11.8% of sales, G&E was at 5.5% of sales, and selling was at 2.1% of sales. The operating result was 219.9 million euro, or 23.6% of sales, a decrease of 16% compared to 261.3 million euro in 2023. The net result was €171.4 million or €4.25 per share, a decrease of 18% compared to €209.5 million or €5.18 per share in 2023. Sales for the fourth quarter of 2024 were €197.4 million, a decrease of 21% compared to the same quarter of the previous year, and a decrease of 20% compared to the previous quarter. The EURUSD exchange rate evolution had no impact on sales compared to the same quarter of last year and a positive impact of 1% on sales compared to the previous quarter. The gross result was 77.6 million euro or 39.3% of sales, a decrease of 31% compared to the same quarter of last year and a decrease of 28% compared to the previous quarter. R&D expenses were 15.3% of sales, G&E was at 7.2% of sales, and selling was at 2.8% of sales. The operating result was €27.6 million or 14% of sales, a decrease of 55% compared to the same quarter of last year, and a decrease of 57% compared to the previous quarter. The net result was €18.3 million or €0.45 per share, a decrease of 63% compared to €49.8 million or €1.23 per share in the fourth quarter of 2023, and a decrease of 64% compared to the previous year. The Board of Directors also approved on February 3, 2025, to propose to the Annual Shareholders' Meeting to pay out over the result of 2024, a total dividend of €3.7 gross per share. This amount contains an interim dividend of €1.3 per share, which was paid in October 2024, and a final dividend of €2.4 per share, which will be payable after approval of the annual shareholders' meeting. The Melexis shares will start trading ex-coupon on May 2025. And the record date is May 21, 2025. Now we also will say something about the outlook. So Menexis expects sales in the first quarter of 2025 to be in the range of 190 to 200 million euro. And for the first half year of 2025, Menexis expects sales to be around 400 million euro, with a gross profit margin around 40% and an operating margin around 16%. all taking into account a EURUSD exchange rate of 1.03. Sales in the second half of 2025 are expected to grow significantly compared to the first half of 2025, and this is based on forecasted global automotive production for the full year 2025 to remain at the same level as last year and increasing semiconductor content in automotive applications. And for the full year 2025, Menexis expects capex to be around 50 million euro. So this ends the introduction. So operator, you can now open the Q&A session, please.

Sure, thank you. As a reminder, if you would like to ask a question, please signal by pressing star 1 on your telephone keypad. We will take the first question from line, Ruben Davos, from Capital Sharing. The line is open now. Please go ahead.

Yes, good morning. Thanks for taking my questions. I just have two. The first one is really the sort of expected question on the inventory correction. It looks to be somewhat deeper than you expected three months ago at the end of October. Could you just talk about how your views have changed since October as we've gone through the critical end-of-year quarter? That's my first question.

Thank you for the question. Indeed, if we come back in summer 24, starting in August and in September, we have seen a lot of push-hold requests. It means that our order book content real order, but those orders were not needed by the customer anymore. Then we have accepted all the push out during Q4, meaning that now we don't see push out anymore and our order book is, I would say, stable and healthy and will translate in real sales. To answer your question, what has changed our view since Q4, I would say that first we have seen many reports, for example, the SMP report who mentioned that the inventory in the tier one, then in our customers and at the customer of our customers, this inventory will deplete it around summer. And we have also interviewed many of our customers to understand what was their level of inventory. And as a conclusion of the interview, we have some customers who have low inventory, one month of inventory, but we have still customers that have a higher inventory, let's say up to three to four months of inventory. And when we compare their uptake and the inventory, Yeah, we believe that indeed around summer the inventory of our customers will be depleted. It's why we have given this guidance.

Okay, that's very helpful. Thank you. And then the second one related to pricing, I guess. So many of the LTAs signed in the previous years, I guess they are expiring 2025. How do you see the transition back to possibly to standard agreements playing out and what impact would that have on pricing and volume going forward?

Yeah, we had some pricing negotiations in 24, I would say, a bit independent of the LTA. The LTA has been signed in a different perspective. I mean, we are not in the same situation than when we have signed the LTA. Then, indeed, we had already in Q3 and Q4 price and volume negotiations with our customers. a bit independent of the LTA. The LTA was the base of the discussion, let's say, but we have not been strict on this aspect.

Okay, so sort of the pricing expectation, as you alluded to in the past, you know, low single digit, maybe 2-3%, that's expected to continue?

Yes, indeed, we have. It's this order of magnitude that we have reached in 2014, and it's will be probably the same in the year to come.

All right. Thank you very much.

Thank you. We will take the next question from line. Robert Sanders from Deutsche Bank. The line is open now. Please go ahead.

Yeah. Hi. Good morning. Maybe the first question on the gross margin. Can you just talk a bit about the sharp fall you've seen in gross margin? How much of that is down to geography and how much is down to product? Obviously, there's been a lot of press reports about customers like BYD asking for 10% price downs. And I'm just wondering how you see the impact of China affecting your gross margin or whether it's more of a product mix issue. Thanks.

Well, thank you for the question. I can answer quite briefly. It is neither the effects that you bring forward. It is purely a temporary effect, mainly because of underutilization of the capacity in our testing, in our own testing facilities. And there is also a temporary effect of higher yield loss. But both are not structural. There is no impact of price erosion in Q4. And there is also in 2025, there will be a small price erosion, but it will have much impact on the gross margin overall because it is partially also compensated with price erosion on the supplier side. And the product mix is also not of influence today.

Got it. And just in terms of your LTAs and the back-to-back deals you've got with XFAB and your customers, how do you see that playing out in terms of capacity expansions that XFAB is doing on your behalf? Do you think that there's a need to make an adjustment to the amount of capacity that you've secured and to readjust your plans, for example, tied to your prepayments? Thank you.

Yeah, for the time being, indeed, and with our customers and with our suppliers, the LTA is the base for the discussion, let's say. But there is a lot of, I would say, flexibility on the LTA. Because indeed, as I mentioned before, The LTA has been signed in a time that... And our supplier accepts some flexibility.

But no flexibility on the price. I mean, XFAB is saying their wafer prices are 30% higher than they were in 2019. So presumably no flexibility on the price from your side.

As I mentioned, what I said with our customer is the same with our supplier. I think we are back to a regular price negotiation with the customer and also with the supplier.

Got it. Thanks so much.

We will take the next question from line Jaden Manon from Jafris. The line is open now. Please go ahead.

Hi, good morning. Thanks for taking the question. I just want to go into a bit more granularity on your comment of a significant improvement in the second half of the year. But you're also saying that the inventory correction will be completed in the summer. So when you say the summer, it sort of assumes that the inventory correction will continue into Q3. And some of your peers have sort of alluded to the automotive inventory correction finishing by sort of mid-year, and you're sort of suggesting more sort of a Q3 timeframe. So I'm just wondering how that leads to the second half. Is that mainly a Q4 jump that you expect, or would you expect an improvement into Q3 itself?

It's difficult to say. When we say summer, we meant indeed mid-year, around mid-year. I think we know that the upturn will come. We don't know exactly when. And we know also that in those circumstances, the customer order very late. It's why it's really difficult to answer your question, will it be mid-year, Q3? We know it will come. We have early signs that it will come, but the exact date is difficult to say.

And on the visibility both for Q2 and into second half, you said it's looking at the second half improvement. Also, you're looking at S&P's global car production forecast, etc. But is your order book, your long-term forecast from customers currently suggesting that Q2 will be flat, and then you will see an improvement in the second half. Is that already something that is reflected in your order book?

Yeah, in our book-to-bill, we see that the book-to-bill is indeed increasing, and it's why, indeed, we have given this guidance.

Understood. And my last question is on the non-automotive side. You had talked about some... magnetic sensor product development for robotic joints, et cetera. And you've also talked about strong design momentum beyond automotive. I mean, there's been recently some speculation about, you know, robotics and physical robots being the next big thing. Do you see Molexis' position for that? And, you know, where are your – outside beyond automotive design when it's coming today predominantly, which kind of end market is it coming from? Thanks.

Yeah, indeed. Robotics is part of the strategy. It's a strategic intent in the beyond automotive. And we have made four product launches outside automotive this year. And some of them were indeed for robotics and to activate the joint of the robot as an example. In 2025, we will make an important launch with the TacTaxis, which is also to give the sense of touch of the robot. We are very active on the robotic field. And as you mentioned, we see that the opportunity intake in the opportunity pipe is growing very fast in robotics. The process is we develop the product. We start to have product developed. Then we make the launch. We have already made some launch in 24. More will come in 25. And then we have customer traction. The pipe is increasing. And then we have design win. And later on we have sales. And I would say now we are in the phase where we have customer traction and the pipe of opportunity is increasing.

And is it outside automotive? Is robotics your strongest area, or are you seeing in other areas as well?

In terms of design, I would say in digital health, with our temperature sensor, this is still the strongest. But this is more of a historical product, I would say. In the new product that we have started to develop some years ago, robotics is clearly the... The biggest goal, yes.

Got it, thank you.

Thank you, we will take the next question from line Mark Hasen from ING. The line is open now, please go ahead.

Yes, thank you. My first question is on China. Can you maybe explain a bit more what you're seeing there and if it's different versus other regions? Especially also your comment which kind of that you have as far as your clients and the clients of your clients. And then you have the visibility on sometimes one month, sometimes three, sometimes three to four months. We're very interested to see if that's similar in China or if you can have the same kind of discussions there.

Your question is then more related to the supply chain situation, not about the business, I think. In terms of supply chain situation, we did not get... A lot, many push out in 24 from China, which is also a sign that the push out were more coming from Europe and from the US. Not a lot or even not at all from China. And it's clearly not the same dynamic, let's say, in China and in the other regions of the world.

And also the design, we're not going quite strong in China, much stronger than in Europe.

Exactly. Okay, so no risk on inventory correction on that side? No. Okay, then my second question is actually on the OPEX and linked to that R&D cost. quite modest growth, I think, over the full year 24, but looking at the guidance for the first half of the year, you'd expect actually that cost to move up a bit again. Is that true? Is there a step up in the investments for the longer term again?

Could you please repeat?

Yeah. If I look to your guidance for the operating margin for the first half of the year, suggest that the OPEX cost will move up a bit in the first half of the year versus last year, despite no real growth on the revenues. So you're probably investing a little bit ahead for future years. Can you maybe explain a bit what you're investing in if that's indeed true?

That's indeed correct. We keep investing in the first place in R&D. We see a lot of potential still in automotive, but we're also investing in In Beyond Automotive, it is today 25% of our sales. That's indeed why we keep investing in people, mainly in people, to ensure long-term growth because the underlying parameters for growth remain intact. We have today a temporary inventory correction, but the fundamentals remain intact. It is also a fact that in Q4 we had some strong increase versus Q3. This is partially indeed because we are investing in amongst other R&D, but part of it is also not recurring and will not be, it's a one-off in Q4. Around 3 million, I believe, we can expect to reduce in Q1 versus Q4. Does that answer your question?

Yes. Thank you.

Thank you. We will take the next question from line KBC Securities. The line is open now. Please go ahead.

Yes, I have three follow-up questions. One is on the push-outs. Can you give us an idea of the magnitude of the percentage of the total order book of these push-outs? Yes. And the second question is on China. After the Q3 numbers, you gave an indication of the percentage of sales that China represents. And now you're indicating that there are no push-outs from China. So I presume that percentage is going to increase. And the last question is on China. the situation of the facility in Kuching. It was indicated that the new building was expected to be completed by the end of 2024. Can you give us an update on the situation over there? Thank you.

Yes, I will start with the last question, the Kuching. The building has been open during summer 2024. And now it is operating. Then we have the probing. The probing test is done in the new building. And we have also started a lot of collaboration with the university there in order to recruit test engineers and designers in order to set up a development team also in Kuching. The development team is now becoming active, let's say, and develop a driver product. In terms of China, in Q4, greater China was 31% of our sales, which is a record. If you remember the previous quarter, it was more 26%, 27%. But in Q4, it was then 31%. And I must say, I forgot your second question. Can you remember your second question, please? The number of push-outs. In fact, it's around 50 million euros, which is the difference between our initial forecast in Q4 and the actual of Q4. The difference is all the push-outs that we have accepted. Okay. Thank you.

We will take the next question from line Sandeep Deshpande from JP Morgan. The line is open now. Please go ahead.

Yeah, hi. Thanks for letting me on. My question is, I mean, you said that, you know, China is relatively stronger than the other markets in terms of the inventory correction. But is there a difference between products in terms of inventory correction that there is a greater inventory correction in some kinds of products for you versus some other kinds of products for you? And then associated with that, do you understand from your customers whether the weakness is being seen because of the weakness in EV or hybrids or it is just a general auto market weakness which is causing this ongoing inventory correction?

From the type of product, I don't see a big difference. There is a difference in timing. And all the inventory correction did not come at the same time. I think this difference in timing is probably linked to the fact that we went out of allocation at different times for the different products. But in terms of type of product, I don't really see a big difference, no.

And then, I mean, earlier you said that, you know, in terms of timing, you expect things to recover by the second half of the year. I mean, is this, I mean, you said that you've had some conversations with companies, but do you see now, for instance, from the previous quarter when you first saw the slowdown, to the current quarter, do you see that the customer inventory levels are lower now and thus the risks are reducing? Because the end markets have remained pretty weak in Europe since then. So have there been any changes in the inventory or the inventory levels have remained similar given the end weakness ongoing in the end market?

Yeah, the inventory level of our customers is indeed going down. As you mentioned also in the question, you have asked, is it an overall regular automotive correction or not? Or was it linked to the EV? I think it's more linked to the fact that in terms of car sales, the global car sales remain constant. But you clearly see that the European OEM are going down in terms of car sales, and this is compensated by the Chinese OEM. And I think part of the reaction of our customers is because, indeed, in Europe, they have seen that the car sales volume were going down. I think this is the root cause of the correction. Thank you very much.

Thank you. As a reminder, if you would like to ask a question, please signal by pressing star 1 on your telephone keypad. We will take the next question from Lion Xavier from Morningstar. The line is open now. Please go ahead.

Hi, good morning. Well, the question I was going to ask has already been asked, so I'll go for another one, maybe a little bit more open, more long-term. Simply would be, what has Melexis learned from previous down cycles, like in, say, 2008 or 2019, that you think, guys, you could apply now? Thank you.

Yeah, we have indeed analyzed different trends coming back in, as you mentioned, 2018, but even before, to try to define some early indicators of the change. And we are using those early indicators in order to try to predict what will be the future. I can give some examples of relevant indicators, let's say, because some of them are also unrelevant. But in terms of relevant early indicators, if we look in the past, clearly, let's say, the trend of the order book, not really the absolute value, but the trend. Is the order book moving up or is it moving down? It's an early indicator. We also see that we have some product line on product family, like the latch and switch. they have a short early time, it means that they react one quarter earlier than the other product family. They react one quarter earlier, up and down, then it's a good early indicator. We have for sure also the inventory of the distributor and the inventory of the customer are early indicators. Those are three examples. We have some more. I think we cannot make a conclusion based on one indicator, but I think a combination of five, six indicators could give us a bit better visibility.

Thank you. That's very useful.

Thank you. We will take the next question from Line 9. The line is open now. Please go ahead.

Hi, good morning. Just a couple of questions to better understand the visibility you have. In terms of the order book, how many months does that now cover the outlook? I presume that's sort of a normalized situation. You said you now see it as healthy, the orders we are in the order book we expect to ship. So how many months coverage does that provide you? That's my first question.

Yeah, it's between two to three to five, three to six months. outlook and we see that in or we know that in those circumstances the customer are always ordering very late it's why when i've answered the previous question i say we we know it will come but we don't know exactly when it's based on our experience let's say and in order to be ready for the for the upturn yeah we are building some some inventory in our own supply chain The ambition is to have the right product at the right place in the supply chain in such a way that we can answer quickly because obviously our lead time is longer than the delay when the customer books the invoice.

Can you just remind us? In my notes, I think it's been six to nine months, but I'm not sure if that was perhaps a different environment. how long are your lead times today? And I fully understand that there are products like Latch and Switch, which you just alluded to, that have shorter lead times. But I guess on average, if you sort of provide a weighted average.

I think in average, six to nine months is correct.

Okay, thanks. And then my last question, I presume there's no more products in allocation at the moment. And I think when that happened last time, last cycle, I presume a couple of years ago, I think there was a bit of a I'm surprised that customers showed their real demand. My question would be if that perhaps also played into the push-out you've been seeing, that as products came out of allocation, customers were not double ordering or showing their real demand and pushed out some remaining orders.

Yes, I think it's clearly one of the reasons. I agree with you, yes.

And I guess that then provides you more visibility that the order book you have today is healthy because those effects are now in the rear view mirror. Okay, that's very helpful. Thank you very much.

We will take the next question from line Michael Rourke from DeGroove Peter. The line is open. Please go ahead.

Yes, good morning. I have a question about the stocking and destocking effect. In the first three quarters of last year, you had on average 245 million in sales per quarter. And with hindsight, that was much more than your customers needed. Because of that, you have Q4 and the first half of this year with on average only 200 million per quarter, which is actually lower than what your customers need, but they're already stocking. If you smooth everything, you get to an average of 222 which is forced over normal base for a six-quarter period. If from the second quarter of this year to the third quarter your sales would move from that 200 to the normal base of 222, would you consider that significant or are you aiming for higher?

When we say significant, we mean that it will be visible.

But optically, from 200 in the second quarter to 222, the baseline is optically very visible. But is that significant enough in your view? Or are you aiming higher?

Yeah, as I have mentioned, I can repeat it. We don't have yet this visibility. I mean, the order book is, as I mentioned, yeah. between three and six months ahead. And yeah, it's difficult to say what will be H2. I appreciate your example. But if I would say it's an example that you have given, I would say it is significant. But I just want to repeat it's an example.

Okay, and where, well, Your price pressure this year is something you've repeated, so that is not going to be the main game changer in the second half. Global car production is probably going to be flat. That's also sort of similar to the previous outlook, so that's not going to be the main game changer. So will mix be then the main game changer that will determine how strong the second half will be? Mix, EVs, hybrids?

I don't think so, because I think we are globally exposed, let's say, we have a broad portfolio, then I don't think so that the product mix will be the game changer. I think that the game changer will be first the fact that the inventory are going down, the fact that China will probably continue to grow faster than the other regions of the world, and I think we are well positioned for those game changers.

And content growth in general every year? I mean, the growth today in automotive semi is mainly content growth, but it's also valid for my next question.

Yeah, if you compare, in 2018-19, 92 million cars have been sold. It was 18-19. Okay, now we are around 86 million. And you would say since... In six years, the car says it's flat, but the Melexis revenue has grew a lot. Almost factor two, I would say. Meaning that this is the proof that this is the content who is the game changer. And there is no reason to believe that this content will not stop to grow. When you see the modern car with the modern platform, the electrification required, A lot of semiconductors, all the premium features require a lot of semiconductors. And this is also very visible in China. In China, there is a lot of, the vast majority is the electric car or hybrid with a lot of premium features. And this is somewhere to prove that the content will be the game changer.

Okay, that's clear. Good. Then I have one final question, a short one. STM said in their conference call that they noticed some substitution in China, but it wasn't really clear which end markets they refer to. Have you noticed anything in your automotive end market about substitution accelerating or changing? Or perhaps some comments about other end markets where that may be happening? Can I ask you what do you mean by substitution exactly? that Chinese companies, car companies or other companies substitute foreign chips for chips made in China.

Another way to ask the same question is do we see competition, do we see Chinese competition in China?

It's something about which there's a lot of news, a lot of speculation and

so far not really much impact on the western companies but scm mentioned it so i thought you know have you seen or heard something in particular or not i think there are there are for sure competition uh in china from from chinese competitor they are not yet the main the main competitor from alexis but we see them we see them on the on the market

But there's no noteworthy intensification of that competition.

I think the competition is there in China. And I think we have still a lot of strength versus this competition. But I would not say that this is stable. I think they are also learning. They are also bringing new products. I would not say it is stable.

Okay, that's clear.

Yes, competition is healthy, I would say. It's normal. The market in China is developing and there are more and more businesses in China. I would find it abnormal that we don't find any Chinese competition in China.

Okay, that's it from my side. Thank you.

Thank you. We will take the next question from the line. William from The Ink. The line is open now. Please go ahead.

Yes, good morning. Thank you for taking my question. I have a broader question regarding margins. In the press release, you mentioned EBIT margins of 60% for the first half of the year. But could you maybe provide some more insights into the expected margins or the dynamics that you're seeing for the second half of the year?

I just want to make sure that I'm not missing anything. Yeah. It's difficult to guide for the full year if you don't give a guidance on the sales. But what I could say is that our mid-term target is 25% EBIT. For that, we need to reach 250, 260 million sales. I think that can maybe help you in guiding or estimating your EBIT margins.

Okay. Thank you.

Thank you. We will take the follow-up question from . The line is open now. Please go ahead.

Hi. Thanks for taking my follow-up. I was just going back to the point you talked about where different products went into or went out of allocation at different stages. If I remember right, I think it was your magnetic sensors which went first out of allocation and your actuator driver IC kind of chips went out of allocation early last year. And so I'm just wondering if that had a progressive effect on the speed at which different products went into inventory correction. then are you seeing any change in the product level at this point on the way out? Are you seeing some more positive trends, say, in the products which went first out of allocation and into inventory correction like a magnetic sensor or a latch-and-switch which has a smaller lead time while the actuators are still seeing significant levels of inventory correction? Can we make any such differences in what you're seeing at this point on those products? Thanks.

Yeah, I think, yes, the trends are consistent, let's say. Latch and switch went out of allocation the first one, and latch and switch went also out of push-out the first one. And as you mentioned, the drivers, the embedded drivers, meaning the complex drivers, went out of allocation the last one between Q1 and Q2, 2014. And this is the one that went, the last one, out of the push-out. They are clearly a trend in summary.

So my question is, are you seeing any signs of improvement in the large and switch-on sensors right now, even though the actuators, the drivers are still weakening or something like that?

Yeah, as I mentioned at the conclusion of our lessons learned, the latch and switches is an early indicator. And we see indeed that the order level of the latch and switches is better relatively to the other product.

Got it. Thank you.

Thank you. It appears no further question at this time. I'll hand it back over to your host for closing remarks.

Thank you. Thank you all of you for all your questions and I'm looking forward to continue the discussion either on 101 or for sure during the result of the Q1 in April. Thank you.

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