Nokian Tyres Plc Unsp/Adr

Good afternoon from Helsinki and welcome to Nokian Tyres Q4 and full year 2021 results conference call. My name is Päivi Antola and I am the Head of Investor Relations in Nokian Tyres and together with me in the call I have Jukka Moisio, the President and CEO of the company and Teemu Kangaskärki, the CFO of Nokian Tyres. So in this call, as usual, we will go through the Q4 and full year results, followed by Q&A. So Jukka, please go ahead.

Thank you, Kaivi, and welcome on my behalf as well. I would start the presentation with prepared notes, and I have a PowerPoint presentation that heading is record high sales with improved profit in 2021. And I move to page two, just to reflect the quarterly net sales. we reported 513 million, about 18.4% up from prior year in comparable currencies, and demand continued strong in all main markets, and also net sales increased in all business units and all business areas. Segment operating profit at 88 million versus 80.1 million in 2020, and that was driven by higher sales volume, and we also had price increases higher net selling prices. I move to page 3. We had a strong performance across the whole organization in 2021. All in all, we reported a net sales of 1.714 billion, which is 29, almost 30% above 2020. And 1.7 billion is all-time high in our reported net sales. And this is in comparable currencies, so 30% above prior year. Of course, the prior year, 2020, was impacted by COVID pandemic, and so, therefore, the increase is significant. However, the reported offline is the highest we've ever reported. All business units have contributed to the growth. Heavy tires also had an all-time high for year net sales and segment operating profit. We also improved our market position in all key areas. segments operating profit at €325 million for the whole year, up from €190 million in 2020. That was driven by increased sales volume and also the fact that cost inflation with price increases and careful cost control. And the board proposes a dividend over €1.32 per share, and that is to be paid in two installments, one in springtime and one in the final quarter. Go to page four. There are highlights of the financials. I call out some key numbers on that one. First of all, the top line growth, 18.4% segment operating profit in the final quarter, 17.2% versus 19.4% a year ago. Full year segment operating profit at 19% versus 14.5% full year 2020. Return on capital employed increased from 9.3% in 2020 to 15.8% in 2021. And balance sheet remains strong with equity ratio of more than 68%. Also, cash flow in the final quarter was quite significant. We had an operative cash flow of almost 500 million versus slightly over 400 million in 2020. Therefore, the full-year cash flow is almost 400 million, despite the increase in working capital and receivables. Net interest rate at the end of the year is 5%. minus 98.7, which means that we have 100 million of positive cash in our balance sheet and no debt. Capital structure, no net debt. And capital expenditure at 60 million in the final quarter and 120 million in full year. We've guided that on the average, we have a capital expenditure at around 150 million, which we had in 2020. This year, 2021, we had a little bit lower. If I then go to page 5 and reflect our progress towards the financial targets that we announced in September 2021, said that we are targeting an excess of €2 billion. Right now, we are at €1.71 billion in the full year 2021. We said the segment operating profit ambition is 20%. We are at 19%. And return of capital employed, we target 20%, and we are 15.8%. As we discussed already at the time when we announced these targets, we said that the biggest gaps will be in net sales, and we made good progress in 2021, and also in return of capital employed, where we also made a significant progress from 2020 onwards. to 2021. However, work remains to be done to achieve our financial targets. We also had a financial target to grow ordinary dividend, and it won 32 per share. That's a 10% increase over 2020 level, which was 120 per share. And that is more than 50% of net earnings as our financial ambition is At this point, I hand over to Teemu Kangaskärki, our CEO, to talk about the financials in segments and in the business. Please, Teemu, go ahead.

Thank you, Jukka. Let's start with the passenger car tire business. The strong volume continued to... We had a strong volume growth in the fourth quarter, so all in all, the year 21 was super strong, and we... recorded in comparable currencies for the full year almost 38% growth and for the last quarter a comparable currency growth of 24%. The net sales for the fourth quarter was on a level of 342 million euros and the segment operating profit close to 78 million euros. The net sales grew in all markets, and we were able to increase the average sales prices as we have been indicating in our previous calls. The main driver was naturally the higher sales volumes. And because of the good demand, our Russian factory ran at full capacity last year, and we have added more shifts in our Finnish and U.S. factories to meet the demand. And if we go to the next page where we can see that the bridges, and if I start with the net sales bridge in the fourth quarter, you can see that the sales volume was up by 16%, and the price mix development was positive almost 8%. And as we have been indicating this year, the VA mix has been negative, which is visible in the price mix, and therefore the pure price impact is around 10% in this price mix column. Then moving to the segment operating profit in the fourth quarter, here you can see the the negative headwind coming from the material costs, and in the fourth quarter, the headwind was around 38%, which is a significant change to the prior year Q4. The price mix and sales volumes are naturally then in green, which is then helping us to improve the profit to the level of 73 million, excluding the currency impact. In the SG&A, you can see that certain activities were visible in the fourth quarter, in line with the growing demand and increasing sales. If we then move to the heavy tires, like to start with the full year performance as stated by Jukka. 21 was a record year for heavy tires in terms of net sales and operating profit, all-time high numbers, and we are extremely happy about that. Then moving to the fourth quarter, the net sales was on a level of 65 million the growth in comparable currencies was around 19%, and then the segment operating profits around 4 million euros. The segment operating profit decreased slightly, which is due to the higher raw material cost and other cost components which were partly offset the price increases. In the segment operating profit, you can also see the timing of certain activities and therefore the cost level was on a higher level. Inventories in the heavy tires are at the low level and we also would like to specifically Note the excellent development in safety, which is part of our sustainability target as well. Two years without lost time injuries is an excellent achievement. Then moving to the VNO. Their performance was on a good level in all countries. Our net sales reached a level of 123 million in the fourth quarter, and in comparable currencies, that corresponds 2.8% increase. In segment operating profit, it was on a level of 8.4 million, and there we also had some operative one-off items that we are recording in the segment operating profit. And then some of you have had time to read our release as well. We recorded some non-operative items. We did some impairment charges. And then the main component was was the goodwill allocated to Vianor business. There is no change in the economic value of our overall business. It was rather a function of how goodwill was originally allocated to cash generating units between passenger car tire and Vianor. And as you know, we view this as a whole and therefore we We view that there is no economic value or change in the economic value. We continuously look at our assets prudently, and this then led to the impairment of the VNR goodwill. Then, if we move to the next, and please, you've got things from there.

Teemu, thank you. Just to reflect on page 10, that we keep on launching new products. In 2021, in the winter season, we benefited from the last year announcement, the introduction of Hakka Belitta 10 in SUV, EV, and also Russian version. We have kept on announcing and launching new products, and the latest ones, At the end of 2021 have been a new friction tire and Hakka Pelita R5. And also we announced the printer tires for vans, Hakka Pelita C4 and CR4, as well as earlier we announced a new product for Nordic Summer, Hakka Blue 3 and Hakka Blue 3 SUVs. Also, we announced Nokia Tire's Outpost AT for all seasons. So, this continues. You can expect that the launches of new products will continue also in 2022. And Hakka Blue R5, indeed, will be then available in the market for winter season 2022. So, in autumn 2022, while Hakka Blue will be in the summer, and CR4 will be in the autumn 2022. Pumpost is available in the market for pre-orders right now. Several other products also you can see which have been launched during the year. And also Heavy Tires have been quite active in announcing new products throughout the year. Move to page 11. We will then improve our sustainability performance, and we have non-financial targets. All in all, we have 30 different targets, but we've chosen five to specifically report and focus and allow then the investment and analyst community to see that certain things happen and improve. you can then follow these measures throughout the year and into 2023 and beyond. First one is the safe and eco-friendly tires. Our ambition is that recycled renewable materials to 50% by 2030. Also a reduction in CO2 emissions. And that, by the way, will be also a management incentive or 2022, so reduction in CO2 emissions. Safety, LTIF reduction from 8.3 in 2018 to 1.5 in 2025. Sustainability, 100% of significant high-risk suppliers audited by 2025, and also developing human rights policies. On the next page, on 12, you see the status in 2021. So 25% of selected tires have recycled or renewable materials in 2021. We will report CO2 emissions, actual achievements in sustainability report in one month's time, roughly. LDIF unfortunately declined in 2021 versus 2020. We are LDIF at 4.1 in 2021, while we were 3.7 in 2020. This is a clear area for improvements. In terms of high-risk suppliers, 65% have been audited, and equality score in personal survey is 66. There we have a clear improvement opportunity and requirement. So these are some of the key targets that we will report continuously throughout the quarters and years in coming. But indeed, we have 30 different targets and ambitions to be achieved by 2025 and 2030. We also, in connection of R5 introduction in January, we showed the concept tire. where indeed 93% of the materials are recycled or renewable. So this paves way and shows way that what can be achieved in months and quarters to come, and indeed the tyre can be made 93% of materials recycled or renewable. We will keep on working towards our target of 50% in this content, but More can be achieved. And we also have announced the Sustainable Tire Innovation Challenge, first race big chains, which is an open competition to fight climate change and accelerate innovation for sustainable tires. And that hackathon for students, startups, academics and businesses actually will happen this spring. Go to page 14, which is assumptions for 2022. We expect that the replacement car tire demand will grow. Demand for heavy tire core products is estimated to continue strong. We have uncertainties due to COVID-19 pandemic, current geopolitical situation, and Russian ruble, which is an important currency for us. Raw material and logistics costs are estimated to increase significantly, especially in H1 versus 2021. And as said earlier, capital expenditure on an annual rolling basis, we expect to be at the level of 150 million. And based on those assumptions, our guidance for 2022 will be Nokia's net sales with comparable currencies are expected to grow significantly and segments operating profit is expected to grow. And again, I here on the bottom part repeat these basic assumptions that were elaborated on the previous page. On page 16, I recap our devised growth strategy and business leap forward. As mentioned, we aim to have 2 billion of net sales. We are at 1.71 billion in 2021 full year. Our financial target is to have 20% segments operating profit. We reported 19% full year in 2021. and segments return on capital employed at the level of 20% also, and there we reported 15.8% in 2021. Dividend-wise, cash flow-wise, very good year in 2021. And going forward into 2022, we expect that the top line grows significantly, and we expect that the segments operating profit grows. This completes my prepared and our prepared presentation. Thank you. And we are now open for questions.

Thank you, Jukka. Thank you, Teemu. And now, operator, as Jukka mentioned, we would be ready for the questions from the audience, please.

Thank you very much. Ladies and gentlemen, if you have a question for the speakers, please press 01 on your telephone keypad. Our first question is from Giulio Pescatore from BNPFM. Please go ahead.

Hi, thanks for taking my question. The first one on cost. I mean, it's going to be a big topic for you in 2022. So I was wondering if you could give us an indication of what we should expect in terms of raw material headwinds and also non-raw material related costs for the year. And maybe a second question that is strictly related to this one. You're pricing a mixed effect. Do you think you'd be able to offset most of these raw material cost increases with pricing in 2022? Is that your goal? And what should we expect from it as well? Thank you.

Thank you for the question. In terms of the material cost headwind in 2022, Our current forecast is around 20% for the full year. And that means that in the second half, it would be over 30%. And then in the first half, over 30%. And in the second half... around 10% ending to the level of 20%, including the inbound logistics. And then in terms of pricing and offsetting the cost headwind, as we have been commenting in our earlier course, our plan is to fully offset the material cost headwind on a rolling basis meaning that we continue increasing prices in in year 22. okay and the comment on the mix drops

Mix in terms of, we expect that if you look at our product mix, so winter tires, summer tires, all season, we believe that the share of summer tires and all season tires are going up and winter tires are coming slightly down, as you evidenced in 2021. In terms of markets, the growth we expect is 2% to 7% depending on the market. That's basically LMC forecast of the replacement tire growth.

Thank you.

Thank you. Our next question is from Gabriel Adler of Citigroup. Please go ahead.

Hi, thanks for taking the questions. My first is on the impairment. Can you please just provide a bit more detail on what factors meant that you were required to write down the goodwill in VNOR and what did the other asset impairments relate to that were non-VNOR? And then my second question is on the cash flow. Please could you explain the drivers behind the significant market capital inflow in Q4 and whether you expect this to unwind in the coming quarters? And then my last question is just on heavy tires. Maybe you can elaborate on why the price-cost pressure seems so significantly heavy tires in particular in Q4. Thank you.

I'll start with the cash flow in Q4. As you might imagine, know that our fourth quarter is always the strongest quarter in terms of cash flow, and therefore this quarter wasn't any surprise in the big scheme. Naturally, we performed also well in the fourth quarter in terms of overall performance within the last quarter, and it was a function of... of good working capital management. We have increased or extended our payment terms towards our suppliers, and also we were able to collect our receivables faster, especially in Russia, because the sell-out has been strong in 2021. Then in terms of the impairment relating to VNR specifically, as you know, VNR is part of our overall business, and we don't view it as a standalone. And as I said, it has been sensitive to several issues. assumptions and at this point of time we view that it's rather prudent to write off the goodwill allocated to VNR even though it hasn't had an economic decrease in our overall business. And as you know, VNR supports our passenger car tire business. Then The smaller component in the impairment was related to the increasing capacity in Nokian tires and our factory layout changes, and that was the smaller part of the impairment related to the 20 million that we recorded in the fourth quarter.

Do you want to continue? regarding the heavy tires cost pressure. It was so significant before.

Yeah. And as I said, the heavy tire raw material or the material unit cost headwind was more or less in line with the passenger car tire business. And on top of that, there were certain activities that were done in the fourth quarter, and I would say that that's rather a facing issue of the activities between quarters.

Nevertheless, the bullion heavy tires result was... a good one in record top line and profitability as well. Also, maybe when you pay attention to the balance sheet, that, of course, the inventories are at a higher level than prior year, as well as the receivables, simply because inventories reflect the higher raw material prices. Nevertheless, the cash flow, as Teemu was saying, was quite strong.

Great. Thanks very much. Thank you. Our next question is from Thomas Besson of Kepler Chevrolet. Please go ahead.

Thank you very much. It's Thomas Besson. I have to come back to this write-down question that Gabrielle just asked because I started working for an accounting firm before being an analyst, so I don't really understand why you do need to write down now the related goodwill to the SASAT, which has actually been improving its operating performance. So can you just give us more details? When did you allocate goodwill to Aviano, and why do you have to write it down now, knowing in particular that When I look at the rest of what you show, you've been reversing a lot of bad debt provisions, which I think may have been an issue eventually for auditors for that business, but seem to be improving now. So I'd like just to be clear to understand that better. And I have other questions and so on.

Thank you. Thank you for your question. The goodwill... was or is originated from the acquisition done already several years back and at that time it was allocated between passenger car tire and and via north and the majority of the of the goodwill has been on the passenger car tire then the Goodwill impairment test has been every year really sensitive to several assumptions. And this year when we prepared our impairment testing and took a slightly different view to the certain assumptions, we ended up in a situation where the impairment needed to be a rhythm of if we would view the VNR as a standalone basis. And as I said, it is more as a function how the goodwill was at the time of the acquisition allocated between passenger car tire and VNR And nowadays, we don't view Vianor as a standalone business, but as an integral part of our overall business.

Just to reflect that the overall goodwill in our balance sheet at the end of 2021 is now 65 million, and our total balance sheet is 2.4 billion. So, obviously, the goodwill part is quite a limited part of our balance sheet at this point in time.

And as we have been indicating in the earlier call, we have taken a more prudent view on our asset base and we will evaluate those every year in order to have a

realistic view of the assets and the impact on our return on capital employed yeah as they were saying that indeed the focus of the return on capital employee is something that is important for us and going forward we look at the top line margin but also return on capital employed okay

Thank you. So it's not a question of size versus your balance sheet. It's more that you've missed Alex's expectations by a large amount, and a decent portion of that miss can be explained by the right term, which is, I think, why we try to understand it better. But, okay, if I move on to something else, I would just like to make sure I understand the guidance properly. So you say that revenues will grow significantly and operating profits will grow. So it means your margins are expected to decline, is that correct? In percentage terms?

Yes, as we said, we seek to offset the raw material cost, and that means that indeed the cost mitigation takes place, and that means that the top line will grow significantly because there's a volume growth and price growth, but then when we mitigate the raw material cost, we may not be able to increase so quickly after Lombardia's goal, so there is a pressure on the margin. So, hence, profit will grow and net sales will grow significantly.

Thank you. Last question, please. In 2014, the market had been stressed because of the Russian president getting into territories that were not before his, he might do the same again. And so I'd like to have your appreciation on the risk it represents from the can. I know you've diversified with a US plan today, but basically, do you see any risk that potentially sanctions against Russia may involve the impossibility for you to ship your tires from Russia out of Russia? Or do you think it's

non-existing risk or what kind of probability would you put to that risk if i ask it differently probabilities will be difficult to assign to this kind of a situation but let's let us put it this way that we follow the situation very carefully we have contingency plans and we are ready to put together an action group if there's an important sanctions or situation that happens but this point of time we go with our normal business plan so which means that significant growth on the top line and growth in segment operating profit now if there's a significant change in that then we are prepared with the contingency and as said our financial situation is quite strong we have a negative net debt so about 100 million positive cash after the debt and we believe that these elements and being prepared we can face the situation whatever comes of course the political and geopolitical situation is out of our hands so therefore we of course develop intelligence what may or may not happen and consequently we have a contingency plans in place and we are ready to execute if and when something happens. Let's hope that nothing happens. Obviously, we all hope that the situation will be peacefully solved.

Indeed. Thank you very much, Jukka.

Thank you. Our next question is from Artem Balitsky of SBB. Please go ahead.

Yes, hi, and thank you for taking my questions. I actually have three to be asked and I can take one by one. So first of all, what comes to your guidance for this year, could you maybe provide some color of what you mean by significant sales growth and growth in operating profit or segment operating profit? I recall you previously have been communicating some numeric ranges for basically this wording. So do you have any further color on it?

Yeah, we can a little bit give color. So significant means double digit, and growth means that it grows from the current absolute basis. And we hope, of course, that it goes as high as possible.

Okay, this is very helpful. And maybe, let's say, the second question is relating to price mix versus raw materials impact. So, looking at the passenger car tires, so net impact was 50 million negative in the quarter. When do you expect, basically, this price mix versus raw materials impact to basically reverse during 2022?

I think with our earlier comments that on a rolling basis, the plan is to offset fully the negative headwind, and this is a moving target, and therefore I don't want to specify any certain point of time when that is reached.

But we watch the prices and the raw material development carefully every month and every quarter, because as Teemu said, it's a moving target.

Yeah, that's clear. And maybe the last one, relating to US ramp-up costs in 2022, what do you expect the magnitude to be? I think it was 31 million euros last year.

So we are expecting that to be on the same level this year because of the delayed ramp-up due to the COVID, and it's not a linear development. So this year it will be on a level of 30 million.

We will start getting the additional equipment to date towards the end of this year. So therefore there will be a start of the new equipment, etc., which will happen late this year, early next year, and during the course of next year as well.

Okay, very good. Thank you.

Thank you. Our next question is from Panu Laitamaki of Danske Bank. Please go ahead.

Thank you. Most of my questions were answered, but I still have two. Firstly, on the guidance, can you give any color in which divisions you maybe see more margin pressure this year, or is it similar across the board? And then secondly, on the bridge that you gave on EBIT, The SG&A costs were up quite a bit more in Q4 than Q3. So what was behind that? Thanks.

So the material unit cost headwind, I would say it is quite similar both in passenger car tire and heavy tires. And then VNR, it's quite similar. quite stable in the big scheme of things, if you try to forecast the profit development, as stated also in earlier calls. And then in terms of the SG&A increasing in the fourth quarter, as I said, it is a function of increased activities going hand in hand with the increasing volumes, And for the full year, there is also, and related to sales and marketing, and then also for the full year, because of increasing performance, also the incentive payout has an impact on the overall SG&A base in 2021.

All right. Thanks.

Thank you. Our next question is from Pasi Vesainen of Nordea. Please go ahead.

Great, thanks. This is Pasi from Nordea. To start with, this is an issue related to Ukraine. So what is currently your sales volumes to the area? And we're looking at the kind of in a group level and production volumes. So how much actually you are going to get more kind of production volumes from this Finnish and from the state-owned factory in this year on a year-on-year basis and looking at increases in the staffing and new lines. And maybe lastly, regarding this kind of pricing and raw material issue, so what's going to be the delay in pricing for you currently? So if it would happen that the prices do not move anymore, are you going to ramp up the pricing in three months, four, six? What's the kind of period for that?

Then when you take the pricing, so I'll comment the Ukraine. So we have a few hundred thousand tires in Ukraine. Typically, we don't sell them through Russia. We sell them via Central Europe because that's how we do it. But it's not a significant part of our top line as such. But it's a market where we actually sell product. In terms of how much capacity we get from Nokia and Dayton, as we said, we moved up towards 26 million tyres by 2024. So this development is relatively linear. So we have a good volume increase coming from Nokia. And also, based on our plan, we are pretty much on track with Dayton. So we moved from that... 1 million tire in 2021 into about 4 million tires by 2024. And you can look at the linear development based on that. But there is a significant opportunity or important volume opportunity coming in 2022 based on the capacity increases in Nokia and in Dayton. As we said, the Russian factory was running flat out in 2021 and will keep on doing that in 2022.

And then in terms of pricing, if I got your question correctly, Pasi, you were asking the timing of the raw material changes, and that is varying between different raw materials from four to six months, and then in terms of our Price increases in the current environment, which is not a normal way of doing business, these price increases can be pushed forward within the timeframe of a couple of months. Okay.

I got back to these volumes in Ukraine. We obviously had more demand than we could supply in 2021. So in case that volume is not available, then it can be easily replaced and sold elsewhere. So in fact, what we had the situation in 2021 was that more demand than we could supply throughout the year.

And maybe just an additional comment to the pricing. It's not only how the raw material prices are developing. It is also a function of competitive landscape, and therefore we also need to pay attention to what our competitors are doing.

Yes, that's understood. And just coming back to this production volume issue, would it be a fair assumption that this year we are going to see 1.5 to 2 million tyres more than last year on annual comparison?

Yes, I think we had a record volume in passenger car tyres and heavy tyres in 2021, and we have that all-part type of a number to be increased in 2022. which you mentioned.

Yeah, okay, understood. That was all from my side.

Hopefully more than your higher end, but we will see. I mean, this is, of course, something that we work on, the continuous improvement and find more capacity and capability.

Yeah, that's understood. Thanks.

Thank you. Our next question is from Pierre Kremene, or Stiefel. Please go ahead.

Yes, good morning. Good afternoon, sorry. You're in me? Yes, we can hear you. Thank you. Just one left on my side, and it would be on the volume component into 2022. Volumes have been soaring in 2021, and my understanding is that you haven't met all the demands available in the markets. Do you expect volumes to grow as well in the first two quarters of 2022, or the comps are maybe a bit tough to reckon on significant volume growth, once again, in the first two quarters of 2022? Thank you.

Yeah, we are planning to have a relatively even volume growth throughout the year, but yes, we understand the comparables compared to 2020 and 2021 are quite demanding, but nevertheless, it may be good to remember that in 2021, still the replacement tire market in Nordics or in Central Europe or even in North America were not at the level of 2019 or 2018 level, so that there's still some upside potential to catch the 2019-2018 level. However, of course, the comparables are quite demanding in the second quarter.

Okay, maybe just one follow-up in terms of regional mix. You can have directional elements there. Will Russia be, I would say, a pivotal player driver for volume this year, or should the Russian effect, I would say, soften into 2022 with more importance being focused on Central Europe and NAFTA?

We basically see when we look at the volumes of pieces, we see a good opportunity in Russia at this point of time. Now, of course, the geopolitical discussion we had already and we have contingencies for that and action team if needed and when needed. But obviously, we also see Central European demand, Eastern European demand and North American demand increasing. all developing based on our strategic ambition. Maybe the least demand growth in pieces will be in the Nordic market simply because it's a material market and you don't see that kind of an opportunity to increase either market share or even the volume growth. But in the other markets, we will see opportunity to progress

Thank you.

Just a reminder, if you wish to ask a question, that's 01 on your telephone keypad. Our next question is from Michael Jacks of Bank of America. Please go ahead.

Hi, good afternoon. Thanks for taking my question. I just have one. Just want to come back and clarify on your 20% cost inflation assumption. For inbound and I guess and outbound logistics, Does your number already factor in annual contract price increases for sea freight? Or is there potentially still a risk that these could drive higher cost increases if negotiations don't go to plan with your shippers? Thanks.

So, we have a certain contract with our logistic partners and with the current best understanding we have estimated the cost impact. Having said that, it is a competitive environment, and depending on what is the situation in the market, we cannot rule out any adverse development. But with the current view, the 20% includes... the logistic cost increase that we see at the moment.

That's clear. Thank you.

Thank you. There are no further questions at this time, so I'll hand back over to our speakers.

Thank you. Thank you. So if there are no additional questions, it's time to finish the call. Thank you, Jukka. Thank you, Teemu. And thank you all for participating and have a good day.

Thank you. Have a good game.