Westwing Group Se

Thank you. This is Stefan Smalla. Good morning, everyone. Thank you for joining our 2021 earnings call. I'm glad to be speaking with all of you and hope that you're safe and well. Today we'll review our full year in Q4 2021 results and provide some information on how 2022 has started and what we expect for the full year. Joining me on this call is our CFO, Sebastian. And after the usual disclaimers about forward-looking statements, let me remind you of the West Wing mission to inspire and make every home a beautiful home. And in 2021, we continue to do just that, helping our customers beautify their homes while running a profitable and growing company. In terms of agenda for today, as usual, we have a business update by me, financial details by Sebastian, a summary by me, and then we'll move on to Q&A. Before jumping into the main part of our presentation, let me first begin by providing an update on the impact of the war in Ukraine on our people and our business. As I shared with our team a few days after the beginning of the war, we're shocked regarding the war in Ukraine and stand in solidarity with the Ukrainian people. Everyone deserves to live in peace, respect and safety, and what's happening in Ukraine at this very moment is horrible. We have many Ukrainian team members at West Wing, in headquarters and our international offices, and especially in our warehouses in Poland. While we do not have business operations in the Ukraine, we are very much accompanied with lots of Ukrainian team members. In response to the devastating turn of events, West Wing has donated a total of 100,000 euros in emergency aid to Caritas International. To support our affected team members, we have offered flexible vacation and breaks to deal with family matters, in addition to offering legal visa and relocation, as well as mental health assistance. Additionally, our teams rallied together and conducted collection drives in partnership with the Ukrainian Church of Mary Protection in Munich, as well as Municipal Help Point in Poznan, close to West Wing's warehouses. We also were able to make several donations of West Wing inventory to be put to immediate use for refugees. In terms of impact on our operations, Ukrainians are the third largest nationality at West Wing with more than 300 team members plus temporary warehouse workers. We have so far seen limited impact on our warehouse operations. Trucking in other areas with Eastern European workers might be affected, but for now this remains to be seen. In our industry, a significant share of wood for furniture comes from Ukraine, Russia, Belarus, and we are working closely with suppliers and partners to source wood from other countries. Overall, there's a high risk and low visibility on consumer and market sentiment in general. We will remain vigilant in closely aligning our people in business to ensure minimal impact to our operations. With that, I'd like to begin with a business update for 2021. 2021 was a year of profitable growth for us, where we grew our business by more than 20%, fueled by a growing active customer base made up of loyal repeat customers as well as new customers and regenerated profitability of more than 40 million euros of adjusted EBITDA. Yet 2021 was also a very dynamic year, with abruptly changing consumer sentiment and macro conditions. In the first half of the year, with the pandemic still persisting and corona restrictions still in place across most of our markets, a positive top-line lever shift continued. We observed very positive consumer sentiment, which resulted in record growth for us. As flagged in our last two earnings course, we had already expected the second half of the year to present a more challenging landscape, and this is also what happened. As the lockdown conditions eased, we encountered over seasonality over the summer period as consumers look to participate in offline leisure activities following the ease in lockdown conditions. Furthermore, the reopening of brick and mortar stores also resulted in some share of consumer spending flowing towards offline home and living stores. In addition to a changing top line dynamic, Global supply chain disruptions continue to persist, which led to significant challenges with respect to inventory and sea freight container cost management. Inflationary headwinds and growing uncertainty over the macro environment also resulted in lower consumer confidence versus the first half of 2021 and consequently in softer than expected trading over the last quarter of 2021 and also in Q1 2022. These overall challenging top line developments were visible across the whole e-commerce home and living sector, with many e-commerce players facing lower growth rates and profitability than expected in the short term. What is clear to us is that the adoption home and living e-commerce continues to happen in the midterm. The pandemic certainly accelerated this change in consumer behavior and preference, and we believe the past two years have allowed us to remain well positioned to seize this opportunity and strengthen our position in the market. By driving key strategic investments, we will continue to build upon our position as the leader in inspiration-based home and living e-commerce and form the basis for sustainable growth for the years to come, irrespective of quarterly dynamics and volatility. With that, I am pleased to share our performance for the full year 2021. We realized revenues of 522 million euros at a year-over-year growth rate of 21% on top of the extraordinary baseline from 2020. We generated profits of 40 million euros in adjusted EBITDA at 7.7% adjusted EBITDA margin. Profitability was converted into positive 2.7 million Euro free cash flow, which was heavily impacted by intensive cash finance inventory mitigation measures against the challenges caused by supply chain disruptions. Our total number of active customers increased. It is very encouraging there to see that our growth was driven not only by our loyal existing customers, but also through a strong new customer acquisition. At the end of Q4 2021, our active customer base stood at 1.7 million. 11% up versus Q4 2020. In terms of cohort behavior, we see the 2021 and 2020 cohorts continue to behave in line with our expectations and follow a similar pattern to what we had seen in our pre-pandemic cohorts. Overall, we achieved a GMB retention rate of 91% in 2021 with a very strong H1 and a weaker H2 in terms of retention dynamics. Let me now walk you through some details. For year 2021, revenue growth was at 21% on top of an exceptionally high baseline from 2020. We delivered revenue of 522 million euros in 2021. And compared to 2019, this means a growth of plus 96% in just the last two years. So pretty much doubled the company size in 2021 versus 2019. This growth went hand in hand with an increasing active customer base which on the last 12 months basis grew by 11% to 1.7 million active customers or versus 2019 almost doubled. This growth was very similar across both our segments. In terms of GMB retention, we realized an overall full year retention rate of 91%. The 91% retention rate was driven by a very strong above 100% retention in H1 2021 driven by the positive trends that I spoke of earlier. And we saw this to be lower in the second half of the year, driven by various factors, including a high first-time customer GMV share in 2021, with typically higher churn in the first year. Overall, less consumer interest in home and living, inflation, and other macro factors. I would now like to give you some color and details on cohort quality. Coming specifically to the cohorts we have acquired during the pandemic, we can see that 2020 and 2021 cohort behaviors in line with pre-pandemic cohorts. We closely monitor this behavior and dynamics over 2020 and 2021 pandemic cohorts. And what we see here is that there are no outliers compared to historicals. How to read those charts? The left chart shows Q2 cohorts for 2017, 18, 19, 20, and 21. And the right chart is the Q3 cohorts for those years. And on the x-axis, you see month after first purchase. And on the y-axis, you see cumulative GMV for every first-time buyer. So one line means, let's take the 2019 Q2 cohort the light green line on the left chart in the month of their first purchase the average Q2 2019 first-time buyer made circa 170 euros of GMV and by the 12 months after their first purchase they had made another roughly 170 euros of GMV for a total cumulative GMV of roughly 340 euros in the total first 13 months of the West Wing customer so so that's how you read that and And what does that mean? Looking at the Q2 and Q3 cohorts of 2017 to 2021, we see that cumulative GMB per first-time buyer for the 2021 and 2020 cohorts is roughly on par with older cohorts. Conclusion is the cohort quality of the customers acquired during the pandemic is similarly high than our older cohorts. They're all performing quite similarly. So that's quite good. So as you know, the loyalty of our customers results in a very attractive customer lifetime spend, which is at the core of West Wing and provides the basis to our profitability and growth strategy. Loyalty of our customers continues to benefit us by resulting in a very attractive customer lifetime spend, and the new cohorts are no different. As a reminder, from the time of first purchase, we see the lifetime value of our customers continue to rise, resulting in 1,500 euros GMB after eight years. Our customer lifetime spend then continues to increase and increase, and it doesn't stop and it doesn't look like the new cohorts are behaving any differently. This is the strength of our business model and will continue to deliver upon the trust placed in us by new and existing customers alike. I now move to our priorities for 2022 and an update on this year thus far. To set the scene, our priorities for this year have been derived from the current relatively low consumer sentiment, which is not only affecting West Wing but also close peers. Currently, we are seeing a very weak market environment with relatively low consumer sentiment in home and living. This is driven by all kinds of factors, most importantly, the emergence of Omicron, coupled with an apparent ending of pandemic restrictions, overall high macro uncertainty, especially in terms of inflation, worries about the geopolitical landscape, and war in customers' desire to travel again and spend time outside of their homes. And so we are seeing that consumer interest in spending for home and living e-commerce is on an exceptionally low level versus previous years. Additionally, as mentioned in our update for 2021, we're facing extremely high baselines from the previous year in the first half of 2022. This is because of the exceptional growth rates of early 2021 caused by the pandemic-induced acceleration of the business. I want to emphasize that the extremely steep jump from 2019 makes it difficult to interpret the year-over-year growth rates versus 2021, but these baselines will fade out in the second half of 2022, and we will then begin to see the growth rate normalization henceforth. This needs to be kept in mind when interpreting the growth rate. So we will look at the size differential versus before the pandemic much more than year over year. Coming then to recent performance. As described, we continue to see the effects of a softer consumer sentiment in our current trading. And Q1 2022 to date is circa 20% lower than Q1 2021, still circa 50% higher than our Q1 2020. So our performance is temporarily driven by the extraordinarily low consumer sentiment and lower than what we would usually have expected. At the same time, we are confident that this temporary development will subside and we'll get back to attractive growth rates soon. With this in mind, let me share our priorities for this year. First and foremost, our first priority is protecting top line in a dynamic and uncertain macro environment while managing profitability levels alongside inflationary headwinds and continued supply chain challenges. While we see an overall muted consumer sentiment driven by factors including inflationary pressures, low consumer confidence, and also uncertainty driven by the war in Ukraine, we remain confident in our ability to protect our top line. We believe our business model is poised for the acceleration in e-commerce, home, and living, and external factors do not take away from the fundamentals. Supply chain is a topic we have spent a considerable amount of internal resources to successfully manage. if and when the overall supply chain stabilizes remains to be determined, but we have utilized levers available to us to be able to manage our profitability better. Sebastian will cover supply chain a bit more in this section, but what I would like to highlight here is that we'll manage and protect our profitability in a time of high inflation and macro volatility, as demonstrated by our track record. Second priority for 2022 is remaining focused on driving strategic investments for long-term growth in line with our customer experience 2.0 strategy, a multi-year strategic program to improve our customer experience and ultimately our future growth drivers, as highlighted on our Capital Markets Day last year. We'll continue to scale our investments into marketing, West Wing collection, and building and further scaling our technology platform. And in a minute, I will share some more details on some of these initiatives and key areas that we are focused on. Lastly, our third priority is to remain long-term oriented by focusing on key areas to enable future growth, despite the short-term macro development. We remain committed to our midterm targets of €1 billion of revenue and shift our previous timeframe from 2024-25 to 2026. This decision has been made as the current market sentiment had not been factored into our initial time horizon and will result in deviations to our expected performance. Regardless of this adjustment, we firmly believe there's still plenty of headroom for further e-commerce adoption. Our €120 billion home and living market is still very early in this process, and the upside potential remains massive. This opportunity from higher online penetration will enable very strong market growth rate for years to come and consequently also allow West Wing to grow strongly in the coming years. We believe we are well positioned to achieve these targets led by a very clear brand ambition. We aim to be the most desirable consumer home and living brand for home enthusiasts. Coming now towards the progress we have made under our customer experience 2.0 strategy, our high margin West Wing collection continues to be on track towards the 50% strategic target share. We are successfully growing our share of West Wing Collection products, where we sell gorgeous best sellers at great prices and fantastic margins, and we are proud to be at 37% of Group GMV share as per Q4 2021, resulting in 200 million euros in West Wing Collection GMV for the year 2021. Our targets for 2022 include expanding the range of textiles, wardrobes, and decorative items within the West Wing Collection, and also increasing the share of these items within our international markets. We're also deeply focused on further embedding sustainability into the West Wing Collection, and we're thrilled about our We Care by West Wing Collection line launch and expansion over the coming months. The West Wing Collection remains a diamond in our business, one that we will aggressively continue to grow and polish. Helping to make the West Wing customer experience even more enjoyable are our new businesses. With our West Wing Studio service, for instance, we provide an unmatched customer experience. Customers of the West Wing Studio receive a consultation by a professional designer, a 3D concept as an incredible CGI of their future room, and their personal shopping website, all for €119. In 2021, 4,800 customers booked our studio service for a total of 7,100 rooms. After this service, we see that customers spend more than €2,000 on average at West Wing, truly showcasing the value add of this service. In 2022, we'll further improve the studio experience by scaling the service further, as well as differentiating our offering. For another service, with the ongoing rollout of our West Wing delivery service, we're setting the next level of post-order experience. Initially launched in 2020 as a pilot project in Munich, the West Wing branded trucks started their tour in Munich, and following fantastic feedback, as well as achieving a net promoter score of 92%, we also rolled out the service to Hamburg as of February this year. With West Wing Delivery, which is free of charge for customers, West Wing enables higher delivery reliability with less risk of transport damages. Most importantly, we are able to ensure great customer interaction with our passionate and highly skilled delivery team, which is also trained in assembling West Wing's beautiful products. They also usually bring a small gift as a surprise, which always delights our customers. The West Wing Delivery Service is also set to expand to Berlin this year, when we will deliver circa 20% of our DACH large furniture orders ourselves, followed by a gradual rollout to other cities in Europe over the next few years to further deliver an exceptional customer experience with West Wing. Last but not least, I want to share details of our ambition on sustainability and our new sustainability strategy 2030. At West Wing, we believe that there is a sustainable way to live beautifully, and we are here to create it by designing honest products and inspiring our customers to live and enjoy a more sustainable lifestyle. Sustainability touches all parts of our business, from people to products and from customers to supply chain. Therefore, our new sustainability strategy 2030 covers all aspects of our business model based on our belief that there is a sustainable way to live beautifully. Sustainability is already deeply embedded into our operating model, and while we will continue to do better, we are so far very pleased with our sustainability journey and score within the top 30% of our industry. Selected sustainability initiatives that we've already successfully implemented include achieving climate neutrality in our core business operations, meaning all Scope 1 direct carbon emissions from heating, combustion of fuels from owned vehicles, and fugitive emissions from air conditioning, as well as all indirect emissions from purchased electricity under Scope 2 by offsetting 6,906 tons of CO2 equivalents. Then, a commitment to using materials in our products and packaging that have the best environmental, social, and ethical profile possible. Therefore, we have switched to shipping our products in 100% recycled cardboard boxes in most warehouses already. We launched more than 100 campaigns in a daily themes business to highlight sustainable brands and also added a filter feature to our permanent assortment website for sustainable West Wing Collection products. 90% of our returns are given in New Life by being resold on our site. We have so far audited 99% of our non-EU suppliers for West Wing collection on social aspects and are committed to partnering with our suppliers to develop and improve their environmental and social performance. Our Sustainability Strategy 2030 sets clear focus areas and commitments for our sustainability efforts. The strategy focuses on four main aspects. Making West Wing a company people aspire to work for by creating a safe and fulfilling workplace. enabling our customers to make more sustainable choices through credible product labeling and responsible communication, making the West Wing Collection more sustainable through conscious material sourcing and product design and rethinking product packaging, and ensuring our suppliers act on sustainability by partnering closely with them to reach our ambitious goals. There are many sustainability topics that we care about, but we can't do it all at once. To prioritize our efforts, we have decided to focus on six priority topics based on their importance to us, our stakeholders, and our expected impact as a business. So these six areas are climate and energy, material sourcing, fair working conditions, packaging, supplier impact, and responsible marketing. Further details on our sustainability ambitions and sustainability strategy 2030 can be found in our first ever sustainability report 2021 published with our annual report. I will now hand over to Sebastian, who will take you through the financials of our business.

Thank you, Stefan, and good morning, everyone. So overall, 2021 was a dynamic yet successful year as our business delivered profitable growth. While we continue to see volatility in the macro environment, which is driving a lower consumer sentiment, we remain agile in responding to commercial and humanitarian turmoil, showcasing the resilience of our teams and business model. I therefore want to highlight that during the currently challenging environment, it is more important than ever to not lose sight of the bigger picture by remaining focused on our long-term ambitions, in spite of the rapidly changing quarterly landscape. With that, let me provide you with the financial details of financial year 2021, before I then give you details on our outlook for the year 2022. Revenue for the full year 2021 grew on top of a strong baseline from previous year and stands at 522 million euros, leading to 21% growth compared to financial year 2020. Revenue for the fourth quarter of 2021 was at 149 million euro, which was down 4% with Q4 2020. As Stefan mentioned, we began seeing softening consumer sentiment starting from October and compared against a very strong baseline, resulting in an overall weaker Q4 relative growth. On a full-year basis, growth was seen across both our segments, with DAF generating revenues of €297 million, 22% growth year-over-year, and international segments generating revenues of €226 million, 19% growth year-over-year. Let's take a closer look at the P&L for Q4 and the full year 2021. Our gross margin for the full year was at 49.1%, 0.3 percentage points behind the full year 2020. We have been able to keep our gross margin more or less in line with 2020, while seeing significantly higher seed freight costs and general cost inflation in H2 of 2021. On a quarterly basis for the fourth quarter, we can see that the year-over-year impact of minus 3.8 percentage points to our gross margin, as the impact from the supply chain disruptions and higher seed rate have been fully visible in the fourth quarter P&L. We mitigated some of the impact by passing on cost increases partially to our customers, as well as further increasing our Western Collection shared favorable margins. Our fulfillment cost increased by 0.6 percentage points for the full year versus the previous year. The rise in logistics costs resulted mainly from higher warehousing costs, due to the need for short-term warehousing required for the inventory buffers. In addition, we also raised salaries for our warehousing staff driven by a high inflationary environment in Poland, which is also factored in here. Overall, the collective effect of our gross margin coupled with rising fulfillment costs resulted in a contribution margin of 28.7% for the full year 2021, which is down 0.9 percentage points compared to last year. We consider this strong given all the challenges in the global supply chain and mainly a result of our high margin business model. In terms of marketing, we remain committed to investing significantly into our organic marketing model and support this through new investments in brand awareness and attractive performance marketing channels. Our marketing ratio of 9.4% for the full year 2021 is in line with our target marketing range of 9 to 11% over the next few years. and we remain confident that these marketing investments will enable West Wing's ambitions of becoming a €1 billion revenue company. Our tech investments are also visible in our G&A ratio. We can observe that our growth investments, especially in technology and West Wing collection, heavily contribute towards our G&A ratio of 14%, which is less than a percentage point behind last year as the investments are still ramping up. We believe these investments will pave the way for future growth and help deliver the targets we have set for ourselves. Overall, this brings us to an adjusted EBTA margin of 7.7% for the full year 2021. We are happy with our performance here given the headwinds we have seen in H2 and came just 0.3 percentage points under our guidance given a year ago where we had limited visibility over the various challenges, especially supply chain related that we would face in 2021. With the rise of inflation and freight rates remaining on elevated levels, we expect lower profitability to also affect us in 2022. I will touch more on this later. Guided by the vision we have for our business, we will continue to remain long-term oriented. Fully adjusted EBITDA for 2021 comes to €40 million in absolute terms and €10 million for Q4 2021 alone. Adjusted EBITDA margin in financial year 2021 for both the DACH and international segment is down versus financial year 2020, but still a significant improvement compared to financial year 2019. The higher costs associated with the global supply chain disruptions coupled with our strategic growth investments have clearly affected our result in both segments. On a quarterly basis, we see these effects with adjusted EBTA for Q4 coming in at 7% for the Group, 9.5 percentage points lower than Q4 2020. DAST continues to be very profitable at a 13.1% positive adjusted EBTA margin for the year 2021, while International reports the 1.2% margin in the same period. Turning now to our cash flow in 2021, starting with our networking capital and capex development. Our networking capital position at the end of 2021 stood at positive €4 million. This increase is mainly driven by higher inventory levels. The high inventory levels are mostly driven by supply chain disruptions, which make it in general difficult to work with optimized inventory levels and require extensive inventory buffers to cover supply and demand volatility. Also, we bought for higher Q4 growth than we have finally seen. While we expect networking capital to remain significantly positive in the first three quarters of 2022, we are confident that these effects are temporary and that we will begin returning to our structurally negative networking capital position, gaining pace towards the end of 2022. Our capex ratio is 2.9% of revenue for the full year 2021, representing a 7 million euro increase in capex spending versus the previous year. This increase is mainly driven by investments into equipment for our new warehouse and investments in our growing technology function with its focus on the development of proprietary software. Our positive free cash flow of 2.7 million Euro leads to a strong net cash position of 97 million Euro by the end of 2021. Let me emphasize that this very strong net cash position provides us with reassuring strategic optionality during these highly volatile and uncertain times. Before I now turn to the details of our outlook, let me frame our strategic view in the context of the broader macro environment to how we are managing the business within that. Earlier, Stefan shared with you our priorities for 2022, which are protecting our top line while managing profitability and driving our strategic investments to deliver our customer experience improvements. even as we remain long-term oriented by focusing on key areas to enable future growth, we have to face the current consumer sentiment that we are observing. Inflationary and geopolitical developments have impacted consumer discretionary spending, further softening demand in home and living as consumer behaviors normalize in a post-pandemic environment. While we see these are temporary effects that will have no impact on the sizable opportunities that lie ahead for us, we are affected these prevailing realities into our outlook for the year 2022. On top line, we guide for revenues in the range of 460 to 540 million euros, implying year-over-year growth rates between negative 12% to positive 3%. We have considered a low consumer sentiment in adverse market developments in combination with extraordinary baseline effects to lead to negative year-over-year growth in H1 2022 with positive year-over-year growth rates expected in H2 2022, as baseline from previous year normalizes and consumer sentiment improves. On profitability, we guide an adjusted EBTA margin between minus 2 and plus 3%, and this profitability outlook factors in lowered growth expectations, strategic growth investments that have been taken and will be fully visible in 2022, and ongoing effects from supply chain disruptions. Also here, the second half of the year will show improvements with the first half of the year. Our current outlook reflects an environment of high uncertainty around consumer sentiment, supply chain disruptions, inflation, and geopolitical developments, and does not foresee any further deterioration with Q1. I would also like to comment on our previously announced midterm target of €1 billion in revenue. Evidently, at the expected growth for 2022, we are unlikely to meet our target within our previously announced timeframe of 2024-25. Therefore, we believe our target of €1 billion in revenue is achievable by 2026, and we will continue to scale our business to capture the vast opportunity presented by a highly fragmented €120 billion home and living market that we expect to continue to move further towards e-commerce. Our mid-term profitability target of 10% to 12% adjusted EBITDA margin does not change. We have proven the potential of our highly profitable consumer love brand strategy and the scalability of our business model. And I want to take this opportunity to provide some more details on how the path towards our mid-term profitability target will look like. Let me start with giving some background on the 2022 outlook. We expect lower consumer sentiment to translate into a lower top line growth, as implied by the revenue guidance I just shared, which in turn will lead to negative operating leverage on our fixed cost. Additionally, our strategic growth investments and the continuation of supply chain disruptions are further expected to reduce profitability in the short term, bringing us within our guide range of minus two to plus 3% in adjusted EBITDA margin for 2022. Beyond 2022, there are several levers that will then ensure our trajectory backs towards our 10% to 12% adjusted EBITDA margin midterm target. Firstly, we expect supply chain costs, in particular, sea freight container costs to normalize again, which will benefit our gross margin. While we do not expect that sea container freight will return to pre-pandemic levels, we do expect further reduction in costs from 2023. Secondly, we will continue to expand our highly profitable West Wing collection business towards our 50% of Group GMV target. Based on this mix shift, we will be able to continuously improve our contribution margin over the coming years. Thirdly, based on our 1 billion Euro revenue target, we will generate significant scale effects and return to showing operating leverage again. In 2020, we were able to prove how well our business model scales, and therefore we are absolutely certain that with a growing top line, we will again show significant operating leverage, especially on our G&A costs. So even though 2022 profitability is below our initial expectation, given the current very challenging circumstances, we reiterate our 10% to 12% adjusted EBITDA midterm target. As I wrap up, I want to highlight again that we are committed to continue investing into our ambition to generate attractive long-term profitable growth in the coming years. We will maintain our long-term mindset when steering West Wing through these uncertain times. With that, I would like to turn the call back to Stefan before we take your question. Thank you, Sebastian.

Before we move to Q&A, a quick summary on West Wing. 2021 was another year of increasing in scale and reach. We processed more than 4 million orders and are serving 1.7 million loyal active customers in Europe. We have grown to 522 million euros in revenues, at a strong growth of 21% year-on-year on top of a high baseline from last year, while also realizing 40 million euros in adjusted EBITDA at a margin of 7.7%. The huge home and living market of 120 billion euros is still very early in e-commerce, and we are size-wise tiny compared to the huge opportunity in front of us. Our business model focus on loyalty remains unparalleled, with 80% of orders from repeat customers We are strongly growing our private label products of the West Wing Collection where we sell gorgeous best sellers at good prices and for us fantastic margin. We have an attractive target P&L and we have a very strong cash profile with a net cash position of 97 million euros as per end of last year and a low capex ratio to inspire and make every home a beautiful home. With that, we're now happy to take your questions.