Thank you for standing by, and welcome to the Premium Limited FY 'twenty one Annual Results Briefing. All participants are in a listen only mode. There will be a presentation followed by a question and answer session. I would now like to hand the conference over to Mr. Anthony Waimekirchen, CEO.
Please go ahead.
Good morning, and thank you all for joining today's briefing for our full year results of the 2020 financial year. Obviously, our call is different to prior years with much of Australia still in lockdown, such that Paul and I are coming to you from different locations. But please bear with us if there are any delays. We'll just move on to the disclaimer. And then if we could just go through to the 3rd slide.
And if I could just talk about the our history and past developments, which are pretty much covered on this slide, meaning that we continue to own our own technology, which is a source of enduring competitive advantage for us. If we go on to the 4th slide, today I'll be providing a summary of the year, then I'll turn over to our CFO, Paul Guttridge, for more detail on our financial results. I will then give a business update and talk about our focus for the year ahead. Before we close, we'll allow some time for questions from analysts. So moving on to the executive summary.
The investment in growth that we've made over the past year delivered some outstanding results. The 2 Australian platform components, the premium managed account and the Power App platforms, both returned to very strong growth after relatively flat financial year 2020, whilst VMASS and the international platform continued their spectacular growth. Premium takes much stronger momentum into this financial year than at the start of FY 2020. Moving on, just to elaborate a bit more on that growth. The growth in Fuwa was a remarkable achievement.
Bmass was up 61%, Premium Australia's managed account platform up 22% compared to a decline of 18% in the previous year. It was actually up 52% year on year if the ANZ transition is excluded from the numbers. The Power App platform was up 36% year on year compared to just 4% in the previous year, and the international platform was up 55%. So moving on to the final slide before I hand over to Paul. We firmly believe the fact that we own and control our own proprietary technology allows us to better meet our clients' needs in a rapidly evolving world.
Some of our key client wins reflect this flexibility. There is a growing awareness that once advisors review in some detail the features and benefits of our VMA technology and managed accounts platform that they that both they and their clients are likely to achieve their financial outcomes because of the way that our technology is structured. I think that is reflected in some of the industry recognition, which is on Slide 8. I won't talk to any of that in detail, rather I'll hand over now to Paul to go through our financial results for the financial year. Thanks, Paul.
Thank you, Anthony, and good morning, everybody. Thanks for joining us this morning. I'll start on Slide 10, And you can see that this year's results will be summarized based on 2 key themes. The first one being the inclusion of Power App's results, which was included from September 2020, and that the business is continuing to invest and to invest in supporting our accelerating growth rate, which Anthony referred to earlier. So in terms of our key financial results, if you look at the, I suppose, the table on the left hand side, you'll note that our revenue growth after product commissions increased 30% to CAD65.5 million.
Our gross margin was up 15% to $45,800,000 Our gross margin was 70%, which you can note was a decline from the prior year due to the inclusion of Power App, and I'll detail the gross margin further on the coming slides. Our underlying EBITDA was $14,000,000 which was down 1% relative to the prior year's $14,200,000 with EBITDA margins of 21%. Now if we look at some of the key expense categories, I suppose I'll call out our cost of operations. You'll note that that increased to $19,700,000 This was from investment to support growth in our service levels with a changing client mix to retail advisers. And you'll note in terms of sales and marketing, we continued that investment up to $14,500,000 for this financial year, a 26% increase relative to the prior year.
Now for expenses below EBITDA, I'll touch on those in more detail on the next slide. But to summarize, with the acquired cost base and higher amortization and acquisition costs, net profit after tax declined to $1,500,000 So if we move to Slide 11, which is a comparison of half on half results, You'll note that revenue growth was up 11% to $33,900,000 and this was achieved across all products. The second half was the first full half of Power App's results. Our first half includes 4 months' worth. And the second half had more stable trading volumes from the previously higher cash and transaction volumes that we had seen during COVID in previous halves.
You'll note that our gross margin of 70% remained consistent to the first half and our EBITDA margin of 20% was slightly down from the previous half's 23% due to continued sales and marketing and the inclusion of Para IT expenses. If we look at expenses below EBITDA, you'll see that share schemes or share based payments was consistent for each half at 1.7 per half. Depreciation and amortization for the full year was $8,000,000 This included amortization of intangibles being capitalized R and D of 5,600,000 dollars lease assets of $1,600,000 due to the new standards relating to rental payments and previous acquisitions of $200,000 You'll note that there was an unrealized gain in the first half on Power App Shares of 4 point $5,000,000 And you'll note that the tax expense line, we had a lower tax expense in the second half due to the inclusion of Power App's tax losses post the acquisition. If we move to Slide 12, I'll refer to the Australian segment in more detail. Now you'll note that there's a number of components in this year's results, including the acquisition of ParaP.
So I'll refer to the graph at the bottom left to refer to some of the key highlight movements. If we look at revenue growth firstly, you'll see that total revenue of $53,100,000 was a 37% increase on the prior year. This included Power App revenue. We call that out at $16,300,000 And Framium's underlying platform certainly did grow. It grew at 15% per annum.
That's excluding the ANZ transition. And if you refer to the graph, that first negative $3,400,000 refers to the ANZ outflow. So you'll note that our revenue growth for both the Australian platform and our portfolio revenue was more or less offset by the outflows to ANZ this year. If I turn to Portfolio Services revenue, that was $16,100,000 that was up 6%. And if I break that down between our 2 core product lines within Portfolio Services, our VMA software was up 3% and our VMA admin revenue was up 40%.
And that's really representing that good onboarding and strong growth we've had during the year. Also to call out, we've segregated the portfolio services revenue we did earn from Parrap in the prior year. You can see that was $2,500,000 Obviously, that's ceased post the acquisition and we recorded $400,000 in the 2 months prior to the acquisition. Now touching on Power App acquisition, you'll see that the average basis points for our platform revenue was $22,000,000 for the year, and you can see that is segregated between premium of 33 basis points and Power App of 19 basis points. Gross margins were 75% for the full year and that was consistent with the first half.
But again, breaking down between the premium platform, 80% on the premium platform and 65% on the Power App platform and that is really representing obviously post the acquisition Power App's mix of high net wealth clients and obviously at the time of the acquisition, Power App was approaching profitability, but not yet at profitability. EBITDA margins were 36% for the Australian business, again 39% for the premium business unit, 29% for Power App. And if I compare that to the first half, that is an increase from 33%, which is in the first half. So we are seeing EBITDA margin improvement into the second half. So I refer to all the movements in the graph on the bottom left, You'll see that Power App's contribution was $4,800,000 which is very positive.
But at the same time, we've continued to invest in the business, both in service. You can see that we've invested in operations to support our increasing client growth and obviously record growth that we've certainly seen flow into the Q4 and now into July and our continued investment in sales and marketing. If I move to Slide 13, I'll touch on our international segment results. And this year's segment result is based on reporting of all the regions under the proposed divestment of the international business. Now this includes the combination of the UK, Asia and Dubai entities.
So if we look at revenue firstly, at the net revenue line, which excludes product commissions, you'll see we had revenue growth of 6%. Platform revenues continued to grow strongly. That was up 30% relative to Fuwa, which grew 55% and obviously much stronger in the second half of the year. We've continued to have outflows from our fund revenue that was down 47% but has effectively ended. And we've had consistent planning software revenue as Plum clients have upgraded to WellCraft.
So if we look at expense management relative to revenue, again, we've been able to manage expenses in the international business, only grew 2% relative to the revenue of 6%. And therefore, the EBITDA loss has declined to $3,900,000 which was a 7% improvement. If we look at each of the, I suppose, the segments within that, U. K. Was a $1,400,000 loss, which was a 27% improvement.
Asia was a $900,000 loss, which was a 1% increase. And the inclusion of the Dubai cost center is $1,600,000 If I move to Slide 14 to just quickly refer to our cash flow, you'll see that operating cash flow, that first line is consistent with EBITDA. Obviously, EBITDA is predominantly cash based. And you can see that our $14,000,000 EBITDA is only different to the operating cash flow of 12.6 percent really from the timing of working capital flows. When you include tax payments and one off costs, which I will refer to on the next slide, our total operating cash flow was 5.9 percent for the year.
If we look at investing cash flow, obviously, we did acquire Power App, which had a positive cash balance. So the net inclusion was $1,200,000 We've continued our capitalization of R and D. You can see that was $6,800,000 for the year. So total net investing cash flow was $6,500,000 Financing cash flow referred to the drawdown of a loan, which is obviously for the ParaP. We had a $15,000,000 loan for the ParaP acquisition.
At 30 June, we had $13,600,000 remaining of that loan. Closing cash balance of $26,700,000 Final slide for me on Slide 15 is our balance sheet. You'll see that we continue to have a strong balance sheet. As we said, cash reserves of $26,000,000 Our regulatory cash requirement is $12,000,000 So obviously strong cash reserves above our regulatory cash. We have increased intangibles following the acquisition of PowerUp, which added $47,000,000 to goodwill.
And in terms of tax commentary that we have around $8,000,000 of remaining tax losses that we'll be able to utilize in future periods for ParaP tax losses and franking credits stand at $12,000,000 Final table at the bottom is just calling out some of the major one off costs during the year. Obviously, you can see the major one was the acquisition costs relating to Paraak, and we have had some restructuring costs relating to some of the since we're taking on Paraak, Paraak integration and some UK restructuring. And with that, I will hand back to Anthony and we'll move on to Slide 17.
Great. Thanks, Paul. So looking forward, as it says here, gaining share of the Australian platform market, both the strong growth in our market share and the number of top advisers using our range of service provide evidence of the quality of the premium offer. The flexibility of owning our own technology means that we can be very responsive to clients' feedback. The platform of everything is an accurate summary of what we offer to advisors, which allows them to better serve their clients.
If I move on to Slide 18 and talk about the strong momentum, we do carry much stronger momentum into FY 'twenty two than we did into last year across all of our platform segments. If we then move to Slide 19, and I just summarize this slide. We are confident that past year, which we call a year of transformation, and I think an accurate summary of where we were this year, has seen us complete what I would anticipate to be a one off jump in expenses when compared to our revenue. Obviously, the fact that EBITDA was relatively flat this year meant that we effectively added $1 in expense for every new dollar in revenue. Whilst we're not providing a forecast at this point in time, we certainly do not expect that pattern needs to continue in the coming years and that every dollar should generate should come with less than $1 of expense.
If I move on to Slide 20, and we've obviously announced the proposed divestment of the international business. We're still in the stage of preparing the information ready for release to those who have expressed interest and then that more formal part of the process will commence shortly. We expect to be in a position to provide a further update to shareholders at or shortly after our AGM. As mentioned in our July release, we have received strong interest from a broad range of interested potential buyers. With that, I'll bring our look for Paul and I to a close and open it up for questions.
Thank Your first question comes from Danny Yunus from Shaw and Partners. Please go ahead.
Good morning, Anthony. Good morning, Paul. I've got 3 questions, if I can. The first one is around the expenses. So how should we look at expenses in FY 2022?
If I look at on FY 2021 basis, your sales and marketing is up $3,000,000 and your IT is up $1,500,000 according to Slide 10. Should we expect similar run rates in FY 2022 in terms of incremental increases? And preferably an answer that splits out international as well, please.
Thanks, Danny. And I'll hand that one over to Paul.
Thanks, Anthony, and good morning, Danny. Yes, I suppose what we've certainly seen in this year, Danny, is a step up. We have called out our increase in sales and marketing in prior financial years, and we have seen that step up. But I think as Anthony just referred to, we would expect expenses to move on a more incremental rate from here. So obviously, we've bettered down the acquisition of Power App.
We do have some continuing synergies that will flow into next year and sales and marketing is certainly more at a stable level in terms of run rate going forward. So in terms of the international expenses, total expenses in international was just under $10,000,000 the full year, Denny. So and again, you can as I mentioned earlier, the expenses there have been reasonably stable at 2% growth. But the Australian business in particular has been supporting that accelerating growth in inflows and client onboarding. And we've obviously, particularly in the second the last quarter of the financial year was very strong.
And that support will obviously flow into revenue growth into the coming periods.
Okay. Thanks. And on the platform revenue yields, the 22 bps, it's down on your first half, if I remember correctly, it was around 28. So clearly, the fact that there Power App. Power App continues to slide from a few years ago, it was in the mid-20s down to I think 22 in the first half.
It's now at 19 bps. Where do we see stabilization of those platform revenue yields for Power App?
Sorry, Anthony.
No, sorry, Paul.
I was going to let you deal with that.
Thank you. Yes. No, thank you. I think 'nineteen, 'twenty bps, Danny, is probably more the realistic level. What we saw in previous periods was higher transaction volumes and higher cash volumes during the COVID period.
Obviously, there was a normalization of those levels certainly in this half. And I suppose all you see in this particular half is January, February are traditionally quieter months for transaction volumes, but otherwise things back to a normal level. So we certainly expect that low 20 bps for the Power App platform is a reasonable number. And obviously, you've noted that our Power App premium platform has remained consistent. The first half was 34 basis points, full year has been 33 basis points.
So again, we're not seeing pricing degradation on the premium platform as well.
Okay. And maybe one more, Paul, for you again. Just on the R and D CapEx, I mean, you pretty well flagged in the first half that it would double in the second half of 3.4 going to 6.8. So how should we look at that R and D CapEx going forward? If you split out international over the next 12 months, what's the split between, say, platforms, power apps, etcetera, etcetera?
Yes. So in terms of as we said, we did call that it would be around the $7,000,000 market. It's just obviously just under that. In terms of the number, we expect it would be in similar to that range, perhaps slightly lower going forward. Obviously, as we start to migrate some of the Power App R and D on the premium platforms, there may be a reduction at that point.
In terms of CapEx for the international business, that was just under $1,000,000 Danny. So we'd expect that that level would probably continue into the following year.
Great. Thanks
guys. Thank you. Your next question comes from Nick Virgiet from OBS. Please go ahead.
Good morning, gents. Just two or three quick questions. So just Power App, that $16,300,000 revenue, Paul, I think in FY 2020, Power App reported $21,000,000 revenue. So what's the annualized rate of revenue for Power App over the 12 months?
Yes. So, Nick, yes, the $16,800,000 was obviously called the 10 months. So
obviously, if
you annualize that, you'll get more to the 2018, 2019 levels. But they did certainly call out in the previous financial year accelerated transaction volumes during COVID and higher cash balances. So that was certainly some feedback from their F 2020 financial year. So in terms of where we see the revenue now, we see that certainly more at a normalized level. And PowerUp is growing clients.
So obviously, we've been reporting record inflows in the Australian business, both for the premium and the Power App platform and they are onboarding clients. So I think now that we're more of that normalized transaction volume level, we would expect to see revenue start to grow on the Power App business as well.
Okay. That's helpful. Just for the gross margin of the group, obviously, there's a Power App impact and it's jumped around a bit. What's a reasonable expectation for the group moving forward, taking into account the investment that you mentioned and also the two sides of the business?
Yes. I think on gross margin, you can see that we have normalized half on half around that 70% level. But that has obviously incorporated some of the increased cost of operations as more as a step up in this financial year. So I think as that revenue continues to scale now, we would expect to see gross margin starting to pick up again into future periods. Obviously, in the prior financial year, it was 79%.
Now I think with the Power App business, obviously, there will be a normalized range probably between those two numbers. But over time, we would expect to see margin improvement certainly in gross margin into next financial year and beyond.
Yes. Okay. And if we think about the international versus domestic business from a gross margin perspective, is there a marked difference?
Not a particularly marked difference, Nick. So again, what we've seen in the international business is obviously its ability to grow the platform revenue strongly, obviously with 30% revenue growth, offer reasonably stable cost base. And we there's no reason for that profile to change into the future years. So if we can continue to grow revenue strongly and have incremental growth at the cost of operations, again, we would see margin expansion and gross margins for the international business as well.
Okay, thanks. And just lastly, so on that international business, total funds on platform up 55%, obviously 30% revenue growth and there's going to be an averaging impact. But is that revenue momentum perhaps a little bit disappointing in the context of that funds growth? And are there any pricing underlying pricing trends we need to be aware of in that market?
No pricing trends, Nick. It's more about the timing of the inflows. So the 3rd Q4 of F 'twenty one were certainly the strongest. So what you'll see is that revenue momentum will now flow into the future periods. So that's really as we average as our pricing is based on an average of monthly floor, as it's been building strongly towards the end, we'll start to see that acceleration into F 'twenty two.
Okay, great. Thank you.
Thank you. Your next question comes from Lakhitani Sotirou from NST. Please go ahead.
Good morning, guys. Three questions, if I may. The first is a follow-up question to the platform margin. Can you just clarify what the second half 'twenty one exit rate is for both Power App and your core premium platform, are we talking 17 for Power App and around 32 for premium while looking at that the right way?
Yes. So obviously, we've said for the full year premium 33, Power App 19. And in terms of expectations into the future period, we think those levels are reasonable and consistent.
But the exit rate in the second half looks like it's so if you look at first half, the second half is a noticeable drop. So you've gone from 21 to around 17 for ParaRamp
to get to Yes. And as I mean, the analog drop is really the timing of some of those transaction volumes in particularly in January February. Once you look in once you exclude that, obviously the transaction volumes in future months were consistent. So there's a bit of normal seasonality within that period, but into the next half where we would expect to be at that sort of 'nineteen, 'twenty range as we've mentioned.
Okay. That makes sense. Just moving on to the international business, it's been restated, UAE is now included the cost base and earnings the cost base inside and the earnings have gone backwards. Can you just talk us through the level of interest at this loss making rates in terms of pricing level? Have you got any indication at all that you can share with us at this stage?
And also, what's the cost in splitting out the business? Is this a short term thing or will it take a while?
Yes. Hi. That's just so I won't comment on the obviously, Anthony has given an update on Slide 20 on the process. So I'll refer to him. But just to note that the segment results did improve.
It wasn't worse. It was a 7% improvement. But obviously still at
Sorry, it hasn't improved versus what you so financial year 2020 has been restated and it's gone backwards. So I imagine the trajectory of how you've included the UAE in it at this time. I haven't gone through it in detail. It looks like you've changed it around.
Yes. And if you refer to Slide 13, with the inclusion of Dubai, we've had a 7% improvement in the loss to 3,900,000 dollars So that's the like for like reporting that you'll see there in the segment results. In terms of the actual process itself, Anthony has referred to some strong interest and I'll hand to him to comment further.
So, if I've got your question right, I think it was a bit about what are the one off costs going to look like in terms of splitting and then splitting the business. And we would expect that that would be consistent with the transaction costs of divesting any part of the business. And that would include the splitting of the 2 businesses. The works, There's been a fair bit of work going into how we would actually split the international from the Australian component of the business and that's today is not throwing up any excessive costs as part of that separation.
Yes. Thanks for that. What about timing? Do you reckon that could be done in a reasonable amount of time?
I think the timing will be done in a time consistent with the sale process. So I don't think the sale process will be held up by the internal work we've got to do to separate the two businesses.
Okay. And just a final question for you, Anthony. Could you talk us through the process that the Board took that resulted in the sudden departure of Michael, former CEO? Is there was there something that we're missing from an investor perspective? It happened quite suddenly.
Can you shed some more light on the matter?
I can't shed any more light on what we've said already. I think it was I've had that feedback that it all appeared a bit sudden and the Board's taken that on board. But other than what we've said already, there's nothing more to say about it.
Sorry, can I be a bit more specific? It seems like that Michael wasn't even aware of his departure until the announcement came out. Is this correct? And I think given the sudden departure that there's probably the investors deserve a little bit more than what you've provided so far.
I think if Michael was surprised, I can't comment on that, but if it was we appreciate, we've taken on board the feedback that it did appear sudden to the market, But sometimes that is the nature of those things.
Okay. Thank you.
Thank you. Your next question comes from Nick McGarrigle from John and Joey. Please go ahead.
Good day. Just on the international sale, I wanted to clarify a couple of things. The tax loss situation there, is that have you got any clarity as to whether that can what the circumstances around that being transferable to the new owner might be?
Hi, Nick. Paul here. Yes, we're obviously as part of the divestment process working with Deloitte in terms of bearing I'm and relevant components and tax is obviously an element of that. So we are reviewing that at the moment. So at this stage, I don't have any further comments, but I can assure you we are reviewing that at the moment.
Right. And then I'm not sure if you can give us any update. I mean, you mentioned preparing an I'm is that imply that there's no sort of that the business hasn't yet been marketed to potential buyers other than at a high level?
Yes, that's right. We haven't had to market it so far just by making the announcement. We've had very strong and broad interest, but now we wouldn't start the formal marketing of it till we've got an information memorandum together and a data room ready for those who need who look keen enough to take it to the next step and give us some non binding interest in that regard. Yes.
And I guess if we look at some transactions in the last 18 months, the implied valuation for the premium business could be sort of towards $80,000,000 Aussie. Is that sort of where you're seeing interest? I think you've made some comments on that in the past.
I think we don't think it's to our shareholders' advantage to say too much at this point about price expectation. But obviously, we can say that the business continues to perform very strongly with solid pipeline of revenue and some very strong technology.
Based on the process that
you're running, is there sort of
is there a deadline as to when bids might
be due once you do launch the I'm and give those details? So again, just as per what we said a bit of, we're not we haven't committed to a firm timeline. We expect that by the time of the 18, we should be in a position to give an update on what the timeline is looking like.
Okay. Just turning to the Australian flows at $471,000,000 for July. Can you give us a sense of the split between premium and Power App just in broad terms? I guess it's important just in terms of modeling. And what's driving that uplift, if there's anything you can point to specifically?
I think it just is the ongoing momentum to the second part of your question. In terms of the split, it's something like about 60% premium, 40% Power App in broad terms. And this and I anticipate going forward this number, we no longer refer to and need to exclude the ANZ transition. So it's a total net flows for premium.
But in terms of the total net flows you quoted there at 4.71, does that include the ongoing exit of the AMZ business? Because I understand there was still an amount of money remaining.
Yes. As I say, 4.71 doesn't have a carve out or an exclusion of the AMZ.
But to read that in all terms where
you get it to the ANZ business, then the number would actually be higher? Yes, that's right, Nick. Yes, that would be higher if I if we carved it out. But as I say, probably to just make it a bit clearer going forward, at this stage, we would anticipate we just start declaring the net flows rather than carving out that transition.
Yes. And then in terms of the costs that were was it just the inclusion of the UAE business in the international segment that led to the restatement of the prior year in terms of costs? Maybe that's a question for Paul because I noticed that that did change quite materially what that result was in FY 2020.
Yes. Hi, Nick. Yes, that's the only change in the international. Obviously, with the announcement of the divestment, we've now included all relevant entities that are part of that divestment. Dubai initially sat under a legal entity in Australia, so that's why therefore it was reporting under an Australian legal segment.
But the only change is obviously the change, the move from the Dubai entity from Australia to international.
Cool. Thank you. And then there was $6,000,000 of synergies targeted with the Power App merger. Is that still the target? I noticed that wasn't reiterated in the presentation.
And I think you mentioned that $3,000,000 annualized was extracted by the end of FY 'twenty one. But what was the actual realization during FY 2021, if you can give us some more detail on those synergies?
Yes. Hi, Nick. Now in terms of affirming the $6,000,000 of annualized synergies by the end of F22, that's certainly something we're certainly targeting. In terms of annualized savings, as I said, it was $3,000,000 for the F 'twenty one financial year. So in terms of what it actually was for F21, obviously, it
was lower than that number.
It was around it was just about $2,000,000
All right, cool. And then in terms of I mean, there's $8,000,000 it's interesting to split up the business, obviously, given you flagged the sale of international operations. But I guess some of the key items there, you flagged CapEx with about $1,000,000 in the international business. Of the $8,000,000 in D and A, how much of that could we expect to leave the business when you sell if and when you sell international?
In terms of D and A, I'll need to just jump back. But it will be a lower component. At the moment, we are amortizing the Australian
R
and D projects at obviously over that 3 year rate. We had commenced some of the amortization on the international projects. But as you said, we capitalized just under $1,000,000 in this financial year. So you can obviously model that from there over a 3 year period. So it will be obviously a lower amount.
Okay. So I mean of the 8, is it safe to assume it's sort of lay about 20% or something like that from those proportions?
Well, as I mentioned, within the 8, it's just under $1,000,000 for international for F 'twenty one.
Right. Within the aid of D and A, not just the CapEx. You mentioned CapEx is a bit below $1,000,000 but that's the same number roughly for the D and A? No, it would
be so F21, it would be a little bit lower than the 1,000,000 dollars yes.
Okay. All right. I'll let
someone else check-in with questions. Thank you.
Thank you. There are no further questions at this time. I'll now hand back to Mr. Wayne Stoeffer for closing remarks.
Thank you. Well, thank you everyone for your interest today. I look to meeting many of the shareholders in the coming weeks and at the AGM, albeit probably virtually still look like at this stage, unfortunately. Thank you for your interest in our presentation, and we'll close the meeting now. Thank you.
Thank you. That does conclude our conference for today. Thank you for participating. You may now disconnect.