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Hello, everyone, and welcome to the Empresas CMPC Third Quarter Earnings 2021 Results Conference Call. On the call with us today are Ignacio Goldsack, Chief Financial Officer; and Colomba Henríquez, Head of Investor Relations. [Operator Instructions] Please note that statements made today during the presentation and Q&A may include forward-looking statements to assist you in understanding our expectations for future performance. These statements are subject to some risks that could cause actual results and events to differ materially, and I'll refer you to the company's press release and regulatory filings for discussions of those risks. In addition, statements during this call, including statements related to conditions in the global pulp, personal care, forestry products and paper and packaging markets are based on management's views as of today, and it is to be expected that future developments may cause these views to change. Please consider the information presented in this light. The company may, at some point, elect to update the forward-looking statements made today, but specifically disclaims any obligation to do so, except where required by law. And now I'll turn the floor over to Mr. Ignacio Goldsack, Chief Financial Officer. Please, Mr. Goldsack, you may proceed.
Thank you, and welcome, everyone, to our third quarter 2021 results conference call. Starting on Slide #3 of the presentation. Third quarter results continue to show sequential improvement. Pulp prices continued to be at high levels, supported by our sales diversification. Even though prices in China started weakening, prices in Europe and the U.S. and Latin America continued to be strong. This, together with higher pulp sales volumes resulted on an increase in pulp EBITDA during the quarter. The Biopackaging business continued to post solid results, with EBITDA margin reaching 17.8% on the back of high average prices and lower operation costs despite the slight decrease on sales volumes. The Softys business posted an improvement on sales on the back of higher sales volumes, but continues to be affected by the higher raw material cost as well as the depreciation of local currencies, which dropped EBITDA down compared to the previous quarter. The EBITDA improvement allow us to continue to lower our net debt-to-EBITDA ratio, which stood at 2.08x while we continue to have a solid liquidity position with cash in the range of $1.2 billion. Now turning to Slide #4. As I mentioned earlier, the pulp business continued to show good results during the third quarter. Higher sales volumes as well as slightly higher average prices resulted on a 2% increase in pulp EBITDA on a quarter-on-quarter basis and more than doubling the EBITDA compared to the third quarter of the last year. Biopackaging posted a 4% improvement on its EBITDA, reaching $43 million as a result of lower operational costs, reinforcing the positive trend we have been seeing over the past quarters. On the other side, the Softys business posted a 24% decrease in EBITDA compared to the previous quarter, mainly as a result of higher operational costs related to higher pulp, recycled paper and personal care raw materials. On a consolidated basis, the company's third quarter EBITDA reached $472 million, increasing 1% compared to the previous quarter and 86% compared to the same quarter last year. Net income reached $130 million, decreasing compared to $244 million posted last quarter as a result of higher income taxes related to appreciation of the Brazilian real and Chilean peso. Free cash flow was negative as we disbursed $320 million in dividends during the quarter. Despite this, we were able to continue to decrease our net debt-to-EBITDA ratio. In the last 12 months, EBITDA figure increased compared to the last quarter. I would like now to turn the call over to Colomba Henríquez, our Head of Investor Relations. Please, Colomba, go ahead.
Thank you, Ignacio, and good morning, everyone. Please turn to Slide 5 of our presentation, where there is more information on consolidated operating costs and other operating expenses for the third quarter of 2021. Cost of goods sold reached $980 million, increasing 8% compared to the previous quarter and 14% compared to the same period of last year. Consolidated operating costs represented 16% of total revenues compared to 58% in 2Q '21 and 67% in 3Q '20. The sequential increase is mainly explained by higher raw material cost in Softys, especially related to pulp and higher cost in pulp related to higher sale volumes and the maintenance downtimes carried out during the quarter. The year-over-year increase is also related to higher costs in Softys and Biopackaging related to higher cost of raw materials as well as higher maintenance costs in pulp. Consolidated other operating expenses reached $192 million for the quarter, down 1% quarter-on-quarter and up 8% year-on-year, representing 12% of total revenues, stable compared to the second quarter of 2021 and up from 14% in the third quarter of 2020. The quarter-over-quarter result is explained by lower expenses in pulp due to lower tax payments and the positive effect of the appreciation of the Brazilian real and the Chilean peso. This was offset by higher SG&A in Biopackaging. The year-over-year increase is mainly related to the appreciation of the Chilean peso and the Brazilian real. Please move to Slide 6, where we can see more details on the pulp business. Pulp production reached 1,013,000 tons, down 3% quarter-over-quarter and $1% higher year-over-year. Compared to the previous quarter, we had a lower production at the Santa Fe II mill, given its maintenance downtime, which was partly offset by the higher production at the Guaiba I and Santa Fe I mill, which carried out their maintenance downtime during the last quarter compared to the third quarter of last year. Lower production at Santa Fe II was offset by higher production of Guaiba II, which had its maintenance downtime in the third quarter of 2020. Pulp prices during the third quarter of 2021 continued to be at a solid level on the back of our geographic sales diversification, reaching $854 per ton for softwood and $703 per ton for hardwood, a 3% decrease and a 1% increase, respectively, compared to the previous quarter. Year-over-year, softwood prices increased 56% and hardwood prices increased 55%. Total market pulp sales volumes increased by 7% quarter-over-quarter and decreased 1% year-over-year. Looking at the quarter-over-quarter performance, we saw a 6% increase in softwood sales and an 8% increase in hardwood sales with higher exports to Asia. For the year-over-year comparison, sales volumes decreased 11% for softwood, with lower exports to China and increased 2% for hardwood with higher exports to Europe, China and the U.S. Revenues for the pulp business stood at $704 million, increasing 8% quarter-over-quarter and 60% year-over-year. Third-party forestry sales volumes decreased by 6% quarter-over-quarter due to lower sales of pulpwood, sawlogs, sawn timber and plywood. Year-over-year, forestry sale volumes to third parties decreased by 11%, driven by decreases in all product categories. Average prices increased 6% quarter-over-quarter and 2% year-over-year as a result of a change in the product mix and higher sawn wood prices. Forestry revenues totaled $125 million, stable compared to last quarter and 9% lower compared to the same quarter of last year. Revenues for pulp and forestry business increased by 7% sequentially and 44% compared to 3Q '20. EBITDA increased 2% sequentially and 130% compared to 3Q '20, while EBITDA margin reached 47.7%. The quarter-over-quarter increase was primarily due to higher sales volumes of hardwood and softwood pulp as well as slightly higher average prices and the positive effect of the depreciation of the Chilean peso and Brazilian real. This was partly offset by higher cash costs as well as maintenance costs. In the year-over-year comparison, the increase mainly comes from higher pulp prices. Now let's move to Slide 7, where we will take a closer look at the Softys business. Softys revenues increased by 6% quarter-over-quarter and 15% year-over-year, reaching $575 million. Tissue paper sale volumes increased 5% compared to the previous quarter and 8% compared to 3Q '20. Quarter-over-quarter, we registered higher sales in Peru, Chile and Brazil. Year-over-year, we registered higher sales volumes in all markets with the exception of Argentina. During the third-party of 2021, we saw a recovery in away-from-home volumes, but still not recovering to pre-pandemic levels. Personal care product sales volumes increased by 4% quarter-over-quarter and 6% year-over-year. The quarter-over-quarter increase was driven by higher wet wipes volumes in Peru and Chile as well as higher feminine care products in Chile, Peru and Brazil. In the year-over-year comparison, we also benefited from higher wet wipes sales in Chile and Peru and higher diaper sales volumes in Brazil and Colombia. Average sale prices measured in U.S. dollars decreased 3% for tissue paper and increased 13% for personal care products compared to 2Q '21. The increase in tissue paper prices is related to higher prices and local currencies, offset by the depreciation of local currencies. And in the case of personal care products, it is related to a change in the product mix. Softys EBITDA reached $43 million during the quarter, decreasing 24% quarter-over-quarter and 27% year-on-year. EBITDA margin reached 7.5%. The quarter-over-quarter and the year-over-year decrease relates to higher operating costs due to higher fiber costs, especially pulp and raw materials for personal care products. This was compensated by lower administrative expenses and higher sales related to higher sales volumes and average prices. Let's now move to Slide 8 to see further details on the Biopackaging business. Sale volumes to third party decreased by 8% quarter-over-quarter as a result of lower sale volumes of corrugated boxes and molded pulp trays, related to lower fruit boxes, as well as lower volumes of corrugated paper and boxboard. Year-over-year, volumes decreased 4%, explained by lower exports to Latin America of corrugated paper and lower molded pulp trays [Technical Difficulty] by higher sales of fruit box in Chile. Average sales prices increased by 4% sequentially and 18% annually. As a result, revenues decreased by 4% quarter-over-quarter and increased 13% year-over-year, reaching $241 million. The packaging business EBITDA reached $43 million, increasing 4% compared to 2Q '21 and 45% compared to 3Q '20. EBITDA margin reached a record of 17.8%. The sequential result is mainly driven by lower operating costs, partly related to lower sales volumes and higher average prices. The annual increase is mainly from higher average prices, partly offset by higher operating costs related to higher fiber costs. I will now turn the call back to Ignacio.
Thank you, Colomba. Please turn to Slide #9. Free cash flow was negative $136 million during the third quarter of the year. This is the result of a high EBITDA figure, offset by the higher dividend payments, which totaled $320 million. CapEx also increased during the third quarter as we started the BioCMPC project, and we also acquired personal land in Chile. This way, cash decreased 18% to $1.2 billion. Our gross debt decreased 1% quarter-on-quarter to approximately $4.4 billion. Therefore, net debt increased 7% compared to the previous quarter. The net debt-to-EBITDA ratio stood at 2.08x, decreasing from the 2.26x in the second quarter of 2021, mainly related to increase in the last 12 months EBITDA. Moving to Slide #10 of the presentation. We closed the first 9 months of the year with a strong financial position and a solid liquidity position. This will allow us to continue advancing in the execution of our strategy. We will continue advancing our growth strategy to maintain our leadership in the business in which we participate and the acquisition of Carta Fabril is a good example, as we are consolidating our market position in the Brazilian tissue market. Also, during the quarter, we started the first stages of the BioCMPC project, which will consolidate our position as a large scale, low-cost pulp producer. All this is in line with our long-term vision and the commitment to create value to all stakeholders. I would like now to mention that Mr. Francisco Ruiz Tagle, CMPC's CEO; Mr. Gonzalo Hernán Darraidou, Softys CEO; Mr. Raimundo Varela, Pulp CEO; and Mr. Felipe Arancibia, Softys CFO, are also joining the conference call. They will be available to answer any questions you may have. Raimundo has to leave this conference call early, so I suggest to start with the questions that you may have for him. With that, operator, please open the floor for questions.
[Operator Instructions] The first question will come from Rafael Barcellos from the webcast. And this one is for Raimundo Varela. "Could you please elaborate further on pulp buyer sentiment in China. Have you seen any improvement on the recent weeks? And also, can you please comment on current pulp inventory for CMPC?" So Raimundo, the floor is yours.
Yes, I think sentiment in China has been during Q3 weaker than expected. In general, I think, has been a more challenging quarter than what we expected at the beginning. Usually, September is a very strong month. And this year, it was not the case. In October, I think the conditions continue to be challenging. I mean business is happening, but at a pace slower than normal. However, I think -- yes, I think the last week of October was relatively better. And we were able to conclude all our October volume in China and in Asia in general, within our expectations. So in that sense, I would say that there is a slight improvement, but conditions remain challenging because of all this energy crisis and also because the Chinese economy performing slower than -- not expected. On the other hand, the question regarding our stock level. Our stock level is higher, but that has to do with delay in shipments, with the logistic crisis that make us ship our volume always with some delay. So our pulp is already committed, but we cannot invoice until we are able to ship. So we have probably 50,000 tons to 60,000 tons higher than normally in our stock level. But again, as I said, that volume is committed and just waiting to be shipped.
Our next question today is coming from Carlos De Alba at Morgan Stanley.
Raimundo, maybe before you go, is there any color that you can provide on how things are looking for November and December and maybe the beginning of the year? Clearly, coal prices in China are starting to come down, power -- as conditions may improve at the margin. And because of the economic slowdown in the country, maybe the Chinese government released a little bit the constraints that it had put on the industry in general, and that increases demand for paper. How do you see that playing out, again, in November, December, maybe the first quarter of the year, in light also of the ramp-up of supply that we have in South America? And then my second question, if I may, is on Carta Fabril. Is there any more color that you can please provide? What was the valuation, the multiple that you pay, or can you give us the last 12 months or 2020, maybe 2019, given the 2020 EBITDA was probably weaker than normal? But yes, I mean, I think doing the quick math, the CapEx per ton that you guys paid was around 10% lower than the Zarate capital intensity. So it seems that it was an attractive valuation on per ton of capacity basis, but that may be just because Carta Fabril is not doing well and it has higher cost and low EBITDA. So if you can give us some color, that would be great.
Okay. This is Raimundo. I will take the first question. We expect that November and December and January will be slightly better, usually because it is a strong demand period. I think will be weaker than last year for sure, but it will be better than what we saw in the last 2 months. Therefore, I think prices are probably very close to the bottom in China. They may come down a little bit more in November, hopefully not. But we are expecting some rebound towards December and January in prices, given that the activities is expected to improve. Paper production, paper prices are also expected to improve and therefore, pulp demand. So slightly optimistic about the next few months in China.
In terms of your question about Carta Fabril, I want to explain to you that for us, it's a very attractive asset. We believe that with this acquisition, we are going to consolidate our leadership in that market. Our market share will be around 25% in the consumer tissue category. Now in terms of EBITDA, we don't disclose -- we do not disclose EBITDA. But in terms of trying to give some color to you, we are -- we have already analyzed a lot of synergies that we can incorporate, for example, cross-selling of products, distribution channels and best operational practices. So we believe that acquiring Carta Fabril, we are going to reinforce our position in that market, and we are going to improve our performance at that market. That is something that I can give to you some -- an additional color that you are asking for. And coming back to the share, with that 25% of share points, we are going, and like I said, to consolidate our leadership at that market, and that gives us a tremendous opportunity to obtain a better relation with our main customers in the Brazilian market.
And can you at least quantify then the millions of dollars or thousands of dollars of synergy per year that you can achieve -- you think that you can achieve on a run rate basis?
Like I said, we don't disclose those numbers, but be sure that if we decided to acquire Carta Fabril, it is because we see strong synergies that we are going to capture during the first 24 months. And again, I say that if you want to see in which area are those synergy that is logistics, that is cross-selling, and that is operational practices. And in the first 2 years, we strongly believe that we are going to capture those synergies.
Our next question today is coming from Thiago Lofiego at Bradesco.
Raimundo, back to the China situation on pulp. 2 questions here. So first, how low do you think pulp prices can go in China right now, especially if you look at the cost curve, cost pressure globally, pretty much we're seeing higher wood costs, energy, you name it. So do you think that we could start seeing any capacity shutdowns at this point? Or is it too early to think about that? And then within that question, how low are pulp inventories at papermakers hands in China right now? And then my second question, my final question here is just about the spread. The price spread between Europe and China, it's at an all-time high right now. So how sustainable is it? And how long do you think it might take for us to see more of a normalized spread?
I think China, we're very close to the bottom. As you said, there are cost pressures. Fiber is more expensive than before. Freight, that is more expensive than before for everybody. So I think we're very close to the bottom. As I said, it may come down a little bit more, but not -- we do not expect a big drop, just maybe a slight drop and then probably a recovery in December or January. Stocks, I think stocks at the moment are at more or less normal levels. I think customers are a little bit hesitant to increase their stocks, given that the paper demand is still relatively weak, and they are trying to increase their paper prices, which is at the end of the day, is a key indicator. So I think provided that the paper prices in China do improve, then I think we will see the buyers more willing to increase their stocks, which at the moment are relatively normal levels, and in some cases, a little bit low.
I'm not sure if you can answer about the Europe-China spread?
Sorry, yes, the Euro-China spread. Well, I think that that spread is very wide. It's not sustainable? No. The reason why, that the situation has to do with this logistic crisis mainly and the inability actually to move volume from one place to another one. At the moment, I think we're all struggling trying to shift the volume to the markets and comply with the orders that were placed in the last few months. So I think we are -- at least we are, as I said, we are late with our shipments. And I think I have the information that other players in the industry are in a similar situation. So I think that is a big factor why stocks in Europe are low, and therefore, the price are obviously high. I do expect that that is going to correct in part because the Asia prices, the China prices will rebound and also because I think the European prices will soften. And I expect that to happen probably during Q1 next year.
Yes. And just a very quick follow-up on this one. So right now, is there a big flow of pulp getting out of China towards Europe? Or that's not happening because producers know that's going to be logistical…
No, that's not happening. That's not happening. I think it might be on the margin, but nothing in big volumes. Because, again, it's very, very difficult to get flexibility and shipments right now.
Our next question today is coming from George Staphos at Bank of America.
I had 1 question on the pulp market that was left, which is, Raimundo, if you could talk a little bit to why we saw a shipment increase on eucalyptus to China in the quarter, while BSK (sic) [ BSKP ] was down 11%. Can you remind us what caused that variance? And is that something you would expect to continue into the fourth quarter? On tissue, I want to come back to Carta Fabril. And I understand the logic of wanting to consolidate and the increase in market share. If you could add perhaps how Carta Fabril adds to the business and how you think it can ultimately change the trajectory of EBITDA and return in Softys. When I look back at our model, tissue EBITDA was $215 million in 2017, $115 million in '18, $276 million last year, but we had CPAC in there. There's been no real growth in the business. And so yes, you'll add growth here with Carta Fabril, but has it really changed the trajectory going forward, both on EBITDA and return?
This is Raimundo. I'll take the first question. I think the reason why eucalyptus shipments has been higher into China and softwood lower, has to do with logistics. I think a large part of the eucalyptus part moves in breakbulk. And those shipments have been less affected by the crisis, because many of those are in long-term contracts, et cetera, so that pulp has been less affected by the crisis; still is affected, but less affected. And on the other hand, I think the softwood, which is the large part of the softwood comes from the northern hemisphere. That move into -- few years ago, it moved into containers. Used to be breakbulk, but it moved big time into containers. And I think they have struggled really to being able to ship normal levels, to get availability of the boxes and to have decent cost. I think that's the reason behind.
But Raiumndo, I mean for your shipments, I'm just referring to your Slide 6, what was -- was it that issue as well? And you mentioned North American BSK, but obviously, it wouldn't be a factor here. So was that just the issue as well for you in terms of breakbulk versus cargo?
Yes. Well, I think we have had some delays in our shipments into Asia. And I think one particular ship that was carrying quite a lot of softwood was delayed. But I think in our case, it's more -- it's not a thing, a trend. It's more like 1 particular circumstance.
Our next question today is coming from Hernán Kisluk at MetLife.
Sorry, Katy. We have one question left from George.
George, in terms of Carta Fabril's questions. First, when we analyze Carta Fabril, in terms of the -- how it will help us to improve our EBITDA, our performance in the Brazilian market, one of the main assets that Carta Fabril add to us is the personal care reduction capacity. As you must know, it's a very relevant category in terms of margin, and they have a new facility with a strong production capacity. So for us, that is one of the assets that we strongly believe that will help us in terms to improve our performance at that market, personal care. Second is the brand portfolio. One of their brands, that is Carta, in the tissue business, is the strongest brand in a consumer brand position. And with that brand, we believe that our portfolio brand in the Rio Janeiro state market will help, and we give a very strong position at that market. So in terms of new category, personal care, production capacity. Second, in the brand portfolio, in the tissue, it will support our brand portfolio. And the third is the logistics. They have 2 plants. And with our plants, we can improve the logistics process in the company. So there are the 3 main reasons why we strongly believe that it will help to obtain a better market position and to improve our margin, EBITDA and our EBITDA in the Brazilian market.
Our next question is coming from Hernán Kisluk at MetLife.
So I have 2 questions. The first one is around the situation that we see here in the south of Chile, with all the increase in violence in what is called here the [indiscernible]. So I was wondering if and how it's affecting your operations and what are your thoughts about it? So it could evolve going forward, and if it could have an impact on the operations in the area? This is the first question. The second question is very short. It's about the upcoming maturity of the 2022 bond? And what are the plans for refinancing that? Do you expect to go to the market, use your cash? And maybe replace it by a bank loan? What are your thoughts?
This is Francisco Ruiz-Tagle. In connection with your first question regarding the violence in the south of Chile, in Araucanía, well, of course, I have to say that – same we have said before, it's a very complex situation with some indigenous communities in the south. And not only with that, but there are also some situation with what would have been still from several areas. And so yes, there are situation that is affecting. But I have to say that since we have our plantations in different areas from the 7th region to the 10th region of Chile, we have been able to work without affecting any of our operations. We have been working, I would say, regularly. And it means -- the situation means that we have to move our operations sometimes from some areas to other areas. But still, we are, I mean, concerned, and we're working with that with -- it is important to inform you that we work with almost 400 communities, different -- Mapuche communities, and without having any problems. They are neighbors. And so this is a very confined, I would say, problem with some really minorities that are very violent. And well, and the state has now declared a situation -- exception situation now, which is now with some more policemen and military in the region trying to help in that. This is very unfortunate, but we -- the main message here is that we have been able to work without problems, and we hope to continue working really regularly because we have forest in other areas, and we can supply the mills without problem. Regarding your second question, Hernán, we issued a bond during the first quarter of this year, in March, so the purpose of that revision is to pay the bond that is coming due next year.
Our next question today is coming from [ Gia Mosito ] at Bank of America.
Congrats on the quarter. I have only one question on leverage. With investments around $700 million to $800 million in Guaiba II and now the Carta Fabril acquisition, how high are you willing to let leverage grow? And what will be the peak?
Regarding leverage during this quarter, our net debt-to-EBITDA was down 2.08x, which is actually lower our range, the lower part of the range. So looking forward, we expect to maintain our leverage within the range.
Can you just confirm the range, please? Like what target are you willing to go? And is that range already included for the [ Guaiba II expansion ] and the Carta Fabril acquisition I suppose.
Yes, the range is from 3.5x to 2.5x net debt-to-EBITDA.
The next question comes from the webcast from Cadu Schmidt. And it's for Gonzalo. "What are the expectations for the approval of the Carta Fabril acquisition on CapEx? And also how much volumes will be integrated after the acquisition is complete?
We expect to close this agreement late first quarter, beginning of the second quarter of 2022 after the fulfillment of the condition present, including in the transaction, which are the ones required by law. I am referring Antitrust Authority approval. In terms of volume or pulp, what we are talking is that we are going to add around 130,000 tons of tissue. So that is related in terms of the pulp, but nothing more than that.
Yes. And only to add, it shouldn't be relevant in terms of volume integration with the pulp business.
Our next question today is coming from Alfonso Salazar at Scotiabank.
The questions I have is regarding the tissue, the recovery of margins in the tissue business. How do you see that going forward? It was interesting to know that EBITDA generation in this quarter was the same for tissue and Biopackaging. So the second question that I have is on capital allocation. What do you think has a better investment case right now? I understand that in the case of the acquisition in tissue, it has to do with the opportunity to consolidate the market. But if CNPC wants to increase capacity and expand the business, need to go for tissue or Biopackaging at this point?
This is Felipe Arancibia speaking. Related to your margin questions, as you have seen, clearly, our margin year-over-year, we are disappointed. The higher inflation, currency headwind, raw materials increase and supply chain disruption increased cost overall beyond the expectation we established just last quarter. I'd like to highlight the effect of the 3 most important shocks on top of the FX headwind. Coal price increases, #1; #2 is international transportation disruption; and third, energy costs. As you well know, this is not the first time that we suffer commodity price inflation, and our strategy has been always the same. What does it mean? That means that we take price above the inflation through our revenue margin programs, also the price part strategy, this is #1; #2 is accelerate the e-commerce and digital; the third is pursuing new growth opportunities, mainly through personal care businesses; and fourth, I would say, all that we have in place related to our cost savings program. On total, I would say that we maintain our confidence that we maintain our EBITDA margin goal in the range of 15%, 16% in the medium run. We expect to see some margins recovering during the Q2 2022.
This is Francisco Ruiz-Tagle. In terms of the capital allocation and opportunities that we see in our businesses, I can tell you that we continue advancing and consolidating our position as a leading player, I would say, in all of our different business like pulp, tissue, personal care and packaging. And so the company has defined, I would say, a clear road about finding opportunities in all of these businesses, of course, with an important view on Latin America and the U.S. And of course, we have probably demonstrated that we have been growing in some of our business, continue growing in pulp in Brazil. And with our BioCMPC project now in tissue, again. So I would say we have different strategic interest in all of our business lines and continue committed with that.
[Operator Instructions] Thank you. That seems to be our last question. I'll now turn the floor back over to Colomba, for closing remarks.
I would like to thank everyone who was with us today in the call. And please, if you have any further questions, just let us know. Have a great weekend.
Thank you, ladies and gentlemen. This does conclude today's event. You may disconnect at this time, and have a wonderful day. Thank you for your participation.