Pernod Ricard S A

Good morning, ladies and gentlemen, and welcome to our H1 sales and results. We will follow the usual format and run you through a quick presentation before taking your questions. We are hosted this morning by Alexandre Ricard, our Chairman and CEO, and Hélène de Tissot, our Director for Finance, Production and IT. Without further ado, let me hand over to Alexandre.

Thank you very much, Julien, and good morning to all of you. So, without further ado, let's start with the presentation of our first half results for fiscal year 2020. I'd like to say that this executive summary is the perfect illustration of the implementation results of our Transform and Accelerate strategic plan. this is year two of the plan and if you look at our first half you can see that the performance was very solid first of all you see diversified growth which is extremely important so growth across all regions and by the way across all sub regions as well with a robust performance of our must-win markets with the USA, India, and China. Dynamic performance as well across all categories of brands, whether it's our strategic international brands, in particular Jameson, Martel, Glenlivet, Malibu, Bountines, Rosewood, and Beefeater. We'll dig deeper into these later on. but as well regarding all the other segments, such as local strategic brands, such as specialty brands as well. We'll see this later. And stabilization of wine, which is the direct result of value strategy. Talk about value strategy as well. Strong pricing, second year in a row at plus 2%. on our strategic brands, continuation of our operational excellence roadmap with more and more optimal resource allocation with a very clinical approach to the allocation of our resources across the business and across our strategic priorities and all of this driving positive margin, operational margin of 51 basis points over the first half. Our reported profit from recurring operations is therefore growing by a little bit more than 8%. This is driven, of course, by more than 4% of organic growth, but as well favorable currency impact resulting from the U.S. dollar, but as well emerging market currencies. As I mentioned it earlier, continued rollout of Transform and Accelerate, as well recurring free cash flow, very strong at 627 million euros, despite increasing capex and aging stock inventory, as expected, in order to fuel future growth of our business. We'll briefly talk as well about our sustainability and responsibility roadmap, I'll mention a couple words as well on Project Reconquête in France. We have finalized the reorganization of our wine business over the last few months as well. We are continuing the dynamic management of our portfolio with the M&A and recently with the completion of TX, Texas Whiskey, Rabbit Hole, Bourbon, and Castle Brand acquisitions. And finally, over the first half, as expected, we started our share buyback program. You have here our key figures, both reported figures and organic figures. And so as I mentioned earlier, robust sales growth. On the back of a first half a year ago, which was quite high, remember exactly a year ago, we were growing top line by close to 8%, mainly driven, by the way, by Asia, but across the whole business. And we're now growing by roughly 3%. Must-win markets are in growth. USA, plus 4%, good growth. Driven by our whiskey brands, you saw we opened with the new The Glenlivet TV commercial, which is currently airing in the U.S. And by the way, Glenlivet is right now one of our fastest growing brands. in the U.S. and is one of the fastest growing brands across the industry in the U.S. with a great marketing platform but as well phenomenal innovation behind the Glenlivet with the recent launch of the Glenlivet 14 Cognac Cask Finish specialty brand as well. Nicely growing in the U.S., so 4% growth over the first half in the U.S. on the back of a 4% growth last year. China plus 11%, I'll dig into it a little bit later, on the back of 28% a year ago. India, plus 5%, which is a good first half in quite a challenging, let's say, context over there. And again, on a high comparable basis, a year ago over the first half, India was growing by 24%. Travel retail, robust sell-out for our travel retail business. There is some shipment phasing across the business in travel retail. As I mentioned, growth is indeed diversified across all the regions and sub-regions. Quick snapshot on the second quarter of our first half with sales at 4%, some acceleration versus Q1, which was only up 1%. So if you look at the markets, as I mentioned, I think the clear point here is diversified sales growth. So let's start with our number one must-win market, the U.S. As I mentioned it, good growth driven by whiskeys and as well our specialty brands. If you look at our star brand, Jameson, you have the Nielsen and that past performance. There is a little bit of moderation in the growth rate. This is still linked to the fact that we're cycling a very strong launch of Jameson castmates back a year ago. There are very strong initiatives planned actually as we speak for the run-up to St. Patrick's Day. Number one, a great innovation which has been launched a couple weeks ago with the likes of Jameson Cold Brew. which is quite an original, let's say, innovation. We are expanding geographically our, let's say, Jameson footprint across the U.S. in what we call our emerging market states in the U.S. for Jameson with the likes of Texas and Florida. And as we had mentioned a few months ago as well, we're de-seasonalizing our strategy across Jameson. It's becoming an everyday brand and not just St. Patrick's Day brand. Our growth relays with the Glenlivet, I mentioned it earlier on, very good growth for the Glenlivet. Continued strong sellout for Martel, in particular our innovation Blue Swift. Our tequila brands are still quite dynamic in a dynamic segment as well. And, well, I'm happy to start commenting the performance of our more newly acquired brands with the likes of Jefferson's, which is now fully integrated in our mainstream portfolio in Pernod Ricard USA. Future growth charts through our new brand ventures organization in the U.S. are performing extremely well, especially Monkey 47, which is almost considered as a luxury brand in the gin category in the U.S., Lillet, again, strong double-digit growth for Lillet, Del Magway, Malfi, a newly acquired gin brand as well, and the rest of the Irish whiskey portfolio, namely, for instance, Redbreast. Again, I mentioned the newly American whiskey portfolio acquisition for Panorica with the likes of Smooth Ambler, Rabbit Hole, which is performing extremely well, and with our partner, Cave, and TX, our Texas whiskey brand. Our bastions, Absolute is still in decline in a quite challenging category, despite the very successful launch of Absolute Juice. It's Absolute Blue, which is still a challenge in a vodka category, which is being challenged. We have the new brand campaign launch on Valentine's Day, so that's a small teaser. Stay tuned for it. Tomorrow. Malibu, very strong, continued good growth, outperforming the category. If we can mention a category per se, I think Malibu is a category of its own right, and it's driven both by original and our innovations around flavors for Malibu. And confirm improved performance for Kahlua, which is one of our most profitable brands in the U.S., Other must-win markets, very important. Of course, China, very strong first half with 11% top-line growth for China. Remember, our transform and accelerate ambition for China is high single to low double-digit growth. This 11% growth is all the more strong as it's on the basis of a very strong comparable basis, up 28% the previous year. Very good sell-in ahead of Chinese New Year. Martel, the demand for Martel, the consumer-driven demand is very strong. We had double-digit growth in Q2, enhanced by an on-trade rebound. Q1, remember, was somewhat soft, mainly as well related to closures of on-trade accounts. Excellent price and mix for Martel, and we've decided... over the last few months to increase our investment behind Martel ahead of Chinese New Year, indeed. Chivas, the decline is clearly linked to a challenging on-trade environment, particularly Q1. I won't go back again on what we said on Q1. But back to good growth on Q2 across all channels for Chivas. And finally, our premium brands portfolio is continuing its very strong growth, namely driven by Absolute, the Glenlivet, Ballantyne's Finest, our wine, Jacob's Creek, of course, Jameson, off of a smaller base, and Beefeater, and PJ Champagne. Now, Q3 will be severely impacted by COVID-19. I'll get back to it in a couple minutes. There has been a very strong implementation of our entire program ahead of Chinese New Year with great sell-in, but reality is of last year. A few weeks, COVID clearly impacted our performance in China, clearly impacted, let's be clear, not just our business, but China as a country. Our number one priority right now is clearly our colleagues in China. I would just like to take a moment just to obviously praise all the different radical measures taken by the authorities in China, by global authorities over there, but also the local authorities. We fully support these measures. I'd like also to praise the exemplary behavior of our own colleagues in China. And obviously our thoughts and prayers go to them, to the Chinese people, to our colleagues and their families. But again, it's in these very difficult moments that you see how amazing people can be. And I have to say, we have a direct link with them, almost daily calls with them, and their behavior is absolutely second to none. It's exemplary. Must-win markets as well, there's India, of course. Our transform and accelerate ambition for India is low double-digit growth. For the first half, we grew 5%. There again, just as is the case in China, up of a very high basis of comparison. Last year, we were up 24% for the first half. This year, the first half has been impacted somewhat by weather condition, quite tough weather condition with flooding, which obviously had an impact, direct impact on consumer consumption, and also a somewhat weaker macroeconomic environment leading to some temporary down trading in India. I think the GDP growth rate is its lowest it's been in a number of years. Our Seagram's Indian Whiskey portfolio is clearly driven by positive pricing, which is upset by the negative mix due to the very stronger performance of the lower end of our portfolio with the Imperial Blue. Our strategic international brands continue their strong momentum with double-digit growth across most of the range, in particular Chivas, the Glenlivet and Ballantines. Very strong growth for our wine business, principally led by Jacobs Creek, which is the market leader, and as well by Brancot Estates. Global travel retail, our fourth must-win market. It's enjoying a good sellout. The first half has been impacted by shipment phasing and some technical impact with closed warehouse, nothing major. Strong underlying depletions, as I mentioned, driven principally by Martel, especially the higher qualities, Cordon Bleu, XO, our whiskey brands as well, and gin, which is quite buoyant in that channel. Great innovations throughout the whole channel with the launch of Jameson triple distilled and finished in three different casks. The launch of Secret Speyside, which is rare malts, single malts from Scotland at a very, let's say, high price point. The launch, exclusive launch across the channel of Ballantines 23. But I could also talk about Royal Flute, 25-year-old and so on. Very strong price and mix across the channel. Just as I mentioned for China, Q3 for travel retail will also be severely impacted by a significant decline in passenger travelers, of course, related to the COVID-19 pandemic. Europe, well, Europe overall up 3% with strong broad-based diversified growth in an environment that remains somewhat contrasted. Okay, France continues to be a difficult market. We're down 1%, but let's be clear, sell-out is worse than that, minus 1%, with a sell-out of minus 6%. The market is extremely challenged, and that is not helped by the EGALIM law, which is la loi sur les états généraux de l'alimentation, where, let me remind you, this had a direct impact on consumer pricing, which went up, for instance, for a number one brand here in France, by 10%. 10% price increase has obviously an impact on consumer pricing. behavior by definition. We do have great performance from our growth relays, particularly Absolute Growing Double Digit and Beefeater, which is emerging as being a very strong growth relay for us as well. We're in the middle of Projet Reconquête, the entire reorganization of our French business with the merger, which will be effective as of July 2020, so in a few months from today, of Ricard and Tarnot. I have to salute here as well the remarkable commitment of our teams in these difficult times for France with a very, very very strong organization and reinvention of our business to drive future top-line growth here in France. It's paying up 1%. The market is in decline, which means we're gaining market share, mainly driven by gin, and particularly seagram's gin and vodka, of course, driven by an absolute difficult segment is the whiskey segment. UK, we're gaining market share as well. UK is up 2%, but double digits sell out for our spirits business. Huge continued success for Beefeater with the rollout of new innovations across the brand franchise was as well great performance for Jameson as well. And we're starting to see the turn around of our value strategy starting to pay dividends as well. Germany, double-digit sales growth and the acceleration of our gin portfolio, particularly Beefeater and Monkey 47. Double-digit growth in Russia, up 14% with some market share gains and some good price and mix. Finally, market share gains and great performance of our business in Poland. Other key markets, stable business in Canada with good growth for Jameson, which is our strategic brand over there. Dynamic growth in Brazil with share gains. Decline in Mexico, principally led by destocking, but share gains for our imported premium spirit brands. And for Asia, rest of the world, continued growth and momentum in Japan around our champagne business, PJ and Mom, but Chivas and the Glenlivet as well. To some extent I could mention as well Jameson. Positive mix on most of our brands, if not all of them. double-digit growth for absolute Korea down 20% no surprise there but up 11% excluding Imperial we will have a favorable comparable basis as of April 1st because as you know last year we decided to basically outsource distribution of Imperial and refocus our business in Korea on our imported strategic brands and finally Good performance across Africa and Middle East with a very good growth in in Turkey driven by whiskey and Amana Club and continued dynamism in Sub-Saharan Africa Especially linked by Jameson which is becoming a basically a regional strong growth brand in Africa and finally somewhat of a challenging environment in Middle East Very briefly by brand, just to say, as I mentioned it during the executive summary, all brand categories now growing. Strategic international brands up 4%, strategic local brands up 3%, specialty brands up 17%, and finally, our value strategy starting to pay dividends with the stability of our wine business. To mention, innovation is contributing above of our strategic plan, one-third of our top-line growth, and we have strong pricing of up 2% for the second year in a row. Good growth on Martel with a clear value strategy, so driven by price and mix. We continue the internationalization of Martel. First half, Martel was up 4%. with positive pricing basically across every single SKU and across all regions and channels. Double digit sell-in in China ahead of Chinese New Year with strong pricing particularly in China. 11% decline in the US but this is literally due to the recycling of the strong launch of BlueSwift Remember last year we had triple-digit growth for BlueSwift across the U.S. And again, strong pricing across the whole range in the U.S. as well. Good growth in travel retail. Very good performance in Eastern Europe. I could have mentioned here Sub-Saharan Africa as well. Our strategy here is clear. Internationalization of Martel as a brand. It's a different word, but the same strategy for Jameson. We want to globalize Jameson to make it a strong global brand. And the performance over the first half is perfectly in line with that strategy. The brand is growing literally. Basically, almost everywhere. If I start with the U.S., acceleration of the underlying depletions in Q2. In the U.S., all of our key footprint states are in double-digit growth. We have good pricing. And as I mentioned it earlier, we very recently launched Jameson Cold Brew. a couple weeks ago. Double digit growth in Europe as well, driven by Russia, Ukraine, Kazakhstan, France, in fact, the UK, Ireland, Germany, and positive price mix across the whole region. And as I mentioned, all other markets basically in very good growth for Jameson, so the brand is on It's perfectly on track with our globalization strategy. Scotch up 4%, excluding Imperial. So a very good performance for our Scotch performance. Again, perfectly in line with our strategic plan for Scotch, which is one of the key growth drivers. And, of course, with the impact on CapEx and aging inventory, of course. Chivas down 2%, so we have strong growth in Eastern Europe, which is offset by the decline in China, which I referred to, but with a tale of two stories, a weak Q1, but actually a very strong Q2 over there. Some negative phasing in travel retail. The Glenlivet up 15%, a great success story for the Glenlivet. Ballantines plus 5% as well, perfectly in line with our plan. And great performance for Royal Salute, which is our luxury Scotch proposition, up 17%, principally driven by Asia, but not only. Absolutes, continued international development of absolutes. Our strategy is very clear. Expand beyond the vodka category to become the natural choice of an experience-seeking generation, which is the Gen Z LDA plus generation. Sales outside of the U.S. plus 2%. Actually, the underlying trends are slightly better than that. Asia, continued strong growth. China plus 25% good growth across Europe with strong double-digit performance in France, Germany, Poland, for instance, market share gains. across most Western European markets as well. America's decline is principally driven by some phasing in our travel retail shipments. Very strong performance in Brazil. In the U.S., however, the brand is down 6% despite the successful launch of Absolute Juice. And as I mentioned during the introduction, as a small teaser, stay tuned for tomorrow, in fact. Other key brands, Bifter up double digit, Havana Club up six, Malibu I mentioned double digit, Ricard no need to dwell over it, but the issue of the Egalim law, which is a painful law, MUM slightly down, which is still... Partially impacted by one of the commercial conflicts that started a year ago, which is still ongoing for MUM in some specific accounts here in France, so be it. That's life. PJ up 1%, and I mentioned our value strategy for our strategic wines portfolio. No need to dwell over this. All I'll say is specialty brands of 17, innovation of 15, luxury of 5. direct results of Transform and Accelerate. Sustainability and Responsibility, a little bit less than a year ago, I think it was in April, we basically shared with the markets through a live presentation out of Cognac, our 2030 sustainability and responsibility strategic roadmap with eight very ambitious very strong objectives so we're perfectly again in line with our roadmap here I won't go through all these I would just like to share a few recent events here for instance and again Pernod Ricard is all about people first. When you see the level of engagement of our colleagues from around the world, you see these levels of engagement which are absolutely extraordinary. 88% of our employees with very strong levels of engagement across the group. 94% of the people... are proud to be associated with Pernod Ricard and equally as important 92% of our colleagues view Pernod Ricard as a socially responsible organization I'm personally very proud to see these numbers. In terms of terroir, we'll just pick one number, which again is a very strong number. We're down 50% almost in terms of use of synthetic agrochemicals since 2013. I'm still focusing to bring that number down. We more recently had announced that we're banning glyphosate across all our cognac vineyards. In terms of circular making, I would just stress, for instance, that we plan by 2025 to have 100% of our 8086 production sites to be 100% renewable energy sites. We're currently at 76%. We more recently announced as an industry, whom we're a proud member of, of IARD, International Alliance for Responsible Drinking, very, very strong commitments focusing on basically underage drinking. So we have undertaken the commitments, for instance, just to name one of them, to have a symbol on every single bottle produced and marketed and sold by Pernod Ricard. with a clear mention regarding age restrictions. That's one example amongst many that are absolutely important. And right now, actually, we're also... rolling out a mandatory MOOC MOOC is massive online a course across all 19,000 colleagues around the world regarding responsible consumption so we're perfectly on track in terms of sustainability and responsibility which is at the core of everything we do That's very important to our people within the organization, very important to our talents, to attract them, to retain them, but equally as important, very important for all our stakeholders, whether it's our suppliers, whether it's our customers, and, of course, our consumers around the world. Now, that being said, I'm passing the floor to Hélène to go through our financial performance.

Thank you, Alexandre. Good morning, everyone. So let's look now at the profits from recurring operations. You have here the figures in terms of organic performance, so plus 4.3%. And the reported figures is a plus 8.1 figures in terms of growth due to the positive effects impact that Alexandre mentioned as an introduction. So a strong pricing on strategic brands, plus 2%. As already mentioned, this is very consistent with the performance we delivered on that topic last year, and obviously pricing ambition is a key driver of our ambition moving forward. So that's a good performance here, post-margin, and slight decline in terms of impact on profit from recurring operation, minus 15 bps. We have to remind that last year we had a very strong H1 on that matter as well. The gross margin ratio was improving by 71 pips. And this is due this year to a positive impact of earlier Chinese New Year, but a negative mix of India and as well costs of goods headwinds, in particular agave and as well GNS, brain neutral spirits in India. Our A&P increase is broadly in line with the sales, plus 3%, with strong arbitration and focus behind strategic priorities. Structure are down 2% thanks to strong discipline, but as well favorable phasing we expect for the full year growth in terms of structure cost. When we look at the impact on the margin, so 51 bps improvement, driven by pricing and tight resource allocation. And as I mentioned briefly, a positive FX impact on the profit from recovery operation for 59 million euros, thanks to US dollar, but as well emerging market currency appreciation versus euro. So if we look now at the performance by regions, starting with Americas, So continued good growth in the U.S., we mentioned it already, and Brazil, dampened by travel retail and Mexico, with as well the strong basis of comparison last year, where the profit from recurring operation was growing by 8%. You have here the figures for this first half, minus 2 in terms of organic performance, plus 3% when it comes to the reported profit from recurring operation growth. So let's look now at the different drivers of that performance. Growth margin is increasing by 1%, which is below top-line growth. So translating into 72 bps negative impact on the profit from recurring operation. And this is mainly linked to adverse mix. And as well, cost of goods pressure. We mentioned already the agave increase, which is obviously increasing. but important to mention that we are increasing investment in our number one market, the U.S., where the investments are growing by 6%, and this is particularly linked to Jensen, Mattel, and the Grand Livet in this first half. This is offset at America's level by phasing, mainly in Canada and Latin America. Structures are growing by 6%, and this is mainly linked to phasing and as well some technical runoffs Last year, despite that number, we have strong discipline, obviously, in our structure cost management in America. Strong favorable effects that we mentioned already linked to the USD appreciation. Moving now to Asia and the rest of the world. So good growth lapping a very strong basis of comparison. So the profit from recurring operations are growing organically by 5% compared to a plus 26%. last year at the same time. And this 5% organic growth is translating into a 9% reported growth. So growth margins are growing by 3%, which is slightly lower than the top line, with this minus 13 bps impact on the profit from recurring operations. This is driven by pressure on Indian margins, linked to adverse product mix. Empire Blue is driving the growth. in this first half, and as well, as I mentioned before, some significant headwinds in terms of COGS, especially on the road grain neutral spirit. And this is partially upset by a significant margin improvement in China, thanks to a very strong market pricing impact in this first half, and as well early Chinese New Year, 11 days earlier than the year before. ANP increasing significantly ahead of sales, plus 7%. which obviously is the translation of our strategic priorities in that region and as well some facing impact. China and India are, as you know, the top priorities for us in terms of investment. Structure at minus 6%. This is driven mainly by the impact of the Korean restructuring that we performed at the beginning of the calendar year 19 and as well tight resource management in that part of the world as everywhere else. Obviously, we are still investing strongly behind our priority markets, notably China, India, and Turkey. Positive effects, in fact, that I mentioned already, boosting the reported growth in that region. Moving to Europe, so very strong H1 profit from region operation growth, double-digit, both in terms of organic performance but as well reported performance, plus 10% and plus 12% respectively. with a 3% top-line growth that Alex already explained, translating into a gross margin expansion. Gross margins are growing by 4%, so 39 bps. A positive impact thanks mainly to pricing and country mix, notably the acceleration of Germany in this first half. E&P are broadly stable with a strong arbitration but as well some favorable phasing. We expect some acceleration of those investments in the second half of the fiscal year. Structure, minus 3%. This is thanks to the implementation of several efficiency projects and very strong discipline, in particular in France and as well in the Nordics, and we have as well some favorable phasing in this first half. So very strong increase in profit from recurring operation margin, close to plus 200 bps, driven by positive pricing and mix, and gross margin improvement and structure class discipline. So moving now to the net profit. So if we look at the net profit from recurring operation, it's growing by 10%, and so is the EPS, with profit from recurring operation at 8% from a reported viewpoint, as I mentioned before. A slight increase in financial expense from recurring operation, which is resulting mainly from the impact in those figures and more modestly from the issuance of the new bonds back in October. The tax charge is increasing consistently with the profit growth. Our tax rate is close to 24% versus 25% last year in the first half, which is the translation of the positive impacts of the tax reform in India. As you know, India has decided to reduce its corporate income tax rate from closely 35% to 25%, which is a very positive move to support India. investment there and I would say to align as well the CIT rate to OECD standards. So recurring tax rate for the year is expected at circa 25%. Moving now to the non-recurring items. So non-recurring expenses for the first half amounts to 152 million euros, which is driven mainly by restructuring and reorganization costs for 115 million euros. So this is the translation of the adaptation of our operation, especially in France with the project Reconquête that Alexandre mentioned already, and as well the adaptation of our organization within our wine business. Non-recurring corporate income tax is at 31 million euros. which is driven by some technical effect on deferred tax further to the Indian tax reform I was mentioning before. So moving to the group share of net profit, operating profit is plus 3% and group share of net profit is plus 1% despite the strong growth of profit from recurring operation mainly due to the non-recovering items I just described. Let's move now to the cash flow and debt evolution. You have here all the details of the free cash flow performance that I'm going to comment using the following slides. So free cash flow of 570 million euros with a strong increase in the profit from recurring operation and as well strategic investment as expected. And again, this is the perfect translation to support the future growth of the business. So recurring free cash flow at €627 million, which is plus €5 million. That is the first half last year. The strong profit from recurring operation I already mentioned. Increase in strategic investment. So both age inventory and capex. You have the figures here. It accounts for €84 million in this first half. We are obviously reinforcing our age inventory to support our ambition, both for whiskies and cognac, and we are as well increasing our capex in this first half, mainly to link to the cask purchase at Irish Distilleries, the building of our new malt distillery that we talked about a few months ago in China, in the Amexian region, and as well the completion of the new bottling hall at Chivas Brothers. Our operating working capital request is as well increasing in line with the business growth. And we have some positive impact of the RFS 16 in this facade for circa 40 million euros in the recurring free cash flow. We're going to talk about the impact on the net debt in a minute. Non-recurring free cash flow at minus 57 million euros due mainly to the restructuring cost that I mentioned already. Let's look now at the evolution of the net debt and the translation in terms of net debt to EBITDA ratio. So net debt increasing by 1.6 billion euros, translating it into a net debt to EBITDA ratio of 2.7. If I focus first on the cash generation, so free cash flow that I already commented, we have as well an increase in the M&A cash out, which is reflecting the active portfolio management we talked about already with the closing of some of our U.S. whiskey acquisition in this first semester. We as well started the share buyback program in this first half. As you know, we announced... global program up to 1 billion euros over fiscal year 20 and fiscal year 21 and we did a bit higher than 220 million in this first half we have as well impact in this first half. So talking about IFRS 16, we have an additional lease liability resulting from that new norm for a bit more than 500 million euros in this first half. As a reminder, we as well successfully, I would say very successfully, place a new bond issuance back in October for 1.5 billion euro in three trenches, with an average coupon of 0.46%. And I hand over to Alexandre for the conclusion and outlook.