Good morning, and welcome to the Alstom conference call. I'd like to hand the call over to [Non-English content] Henri Poupart-Lafarge. Sir, please go ahead.
Thank you. Good morning, ladies and gentlemen. Welcome to our traditional Half Year Results Conference call. I will take over presentation together with Laurent Martinez, our CFO, and then we'll be at your disposal for any questions. Let's start by a short introduction. In a snapshot, the results of the first half are very sound on all fronts, I may say. First, there has been a very strong commercial momentum. You know it. You have seen notably the two very large order, but I will come back to that, both in Montreal and in France for the TGV [Non-English content] . We had a solid operational performance, a solid execution of our backlog, which has enabled us to reach EUR 4 billion of sales in line with our expectations and in line with our yearly guidance.
The adjusted EBIT stands at EUR 285 million to a margin of 7.1%, which is slightly above the guidance. Frankly, which probably you have noticed or not, that we have slightly changed the wording of our guidance for the full year from up to 7% to around 7%, taking into account the fact that we are already above this 7% trademark. Free cash flow positive at EUR 172 million. As you know, this is a very volatile number. Again, during this first half, we have stabilized our working capital, which is, as you know, our long-term target. The net debt is at EUR 280 million, stable because the free cash flow has been used for the payment of the dividends, and you will be happy about that, as well as the acquisition of additional shares in TMH. The equity stands at EUR 4 billion.
Traditionally, every two years, we have an update of the market done by UNIFE, the association of rail manufacturers. This has been released in September, so you probably all know the numbers. A few takeaways. It has been confirmed over the recent past, and it's going to be confirmed in the coming years as well, that our business is relatively independent from any macroeconomic cycle, and the passenger traffic, whether we talk about mainline or urban, are growing steadily and actually faster for urban, as we know, than for mainline. Still, steadily year after year. Only freight is impacted by the economic growth, and you see a more cyclical evolution of the traffic in freight. The good news is that over the last years, we have seen a rebound after a downturn in 2015, 2016.
This is being translated into a regular growth of our markets, both geographically and by product. What is noticeable is that all regions are growing and all product lines are growing. On average, the growth is 2.6%, which I think is for capital goods industry, is a very sound growth. As you know, our target is to overachieve this growth rate, which we have done over the last years. You know that over the last five years, we have grown by more than 5% per year, which is more or less doubling the growth rate of the industry. By region or by product line, we expect a rebound in Middle East, Africa after some slow years in 2015, 2017, due to the oil crisis, as you know. This is a slow rebound, but we expect it to come.
Asia Pacific is mainly influenced by China and Southeast Asia, we have a continuous growth. Again, so-called mature markets in North America or in Europe are continuing to grow on the back of environmental concern and a general movement of the mobility towards shared mobility and electrical mobility. In terms of growth rate by product, there is nothing particular to say except that it's a very even growth rate across all product lines. The trend towards turnkey is confirmed. We have still a very large number of projects which come in the form of turnkey packages, including rolling stock, signaling, infrastructure. This is particularly true in Middle East, Africa, it's clear that we expect a rebound in Middle East, Africa of this kind of projects. It's true in Latin America, we also expect a rebound. It's also true in Asia, depending on the countries.
For example, in Taiwan, we are talking about system projects as well. In Southeast Asia, there are some system projects. It's more diverse in Asia, there are some turnkey projects in these countries as well. Just coming back on our 2020 strategy. You remember the five pillars of the 2020 strategy, starting with the customer focus, the solutions, the innovation, the operational excellence, and something on people. In terms of customer-focused organization, you remember that we have put in place an organization which is a geographical organization in order to face the customers with necessary means to answer to these requests. The consequence of that is a continuous growth of the company. Again, this first half has been particularly buoyant in terms of orders intake at EUR 7.1 billion. I think this is a record high level for a six-month period.
Leading to a record high level of backlog of EUR 38.1 billion as well. In terms of geographies, of course, six months is always influenced easily by large orders, it's not a surprise that Europe has a high share of the order intake. This is again related to the Very High Speed. It's no surprise that rolling stock is also taking the lion share of the orders intake, also related to Very High Speed. I will comment some more orders next slide. If you look at the largest order which has been booked during this half year. Again, in Canada and in France, we have also some noticeable order, even if they are smaller, like in Germany for the tram, because it has been a very long time since Alstom had not penetrated the German market for trams. This is a new market for us.
In Norway, there has been a large resignaling of the Norwegian network. We have been awarded all onboard equipment for this network. On Italy, we continue to record some new Pendolino. This is on the back of an excellent relationship with NTV, the private operator in Italy. This is a very specific relationship because this is a private operator, so it's a very partnership type of approach. We have been recorded new locomotives in Morocco, continuing our expansion in Middle East Africa, even though, as I said, the Middle East market is probably much slower than it used to be. In Asia-Pacific, our first entry in Mumbai, with Line 3 of Mumbai, very important order for us. We have been very successful in India. We are present in all metros in India, the eight metros which are today running in India, we are present.
It's self-recognized that in Mumbai we were not as present as in the other ones. With this Line 3, we make a significant entry on this market, on Mumbai. As you probably know, there will be 42 cities which have a project of metros in India, more to come. Taiwan, as I said, we have been awarded a system project in Taiwan. This is as well, not totally a new market for us. We have also a tram project in Kaohsiung as well, close to Taipei. We have some activities in Taiwan, but it has been a long time since we are not the metro. Australia, we are continuing to record some orders, particularly in Sydney, where we have been awarded a few years ago the metro, and these are extension of the metros and the maintenance of the metros.
Just a focus on the Very High Speed Train. We have discussed a lot about it. This is not something which is very usual. Last time we developed new Very High Speed Trains, this was 30 years ago, actually, in the 1990s. In 1996, actually, we have delivered the first train of the last generation. This is an innovative concept where we have upgraded all the technological bricks in order to have a train which is much more efficient, both from an economic standpoint, from an operational standpoint, and from an environmental standpoint. I think it's extremely and nice partnership as well with SNCF. It has been done in a total partnership with SNCF. I think it's a good example and a good success. Our classical indicators, nothing has really changed this half year. Rolling stock continues to represent more or less 40%. Here we took 43%.
You know that we have a target of 40, so we are in the ballpark. Service is growing nicely. Signaling after one year of difficulties one year ago in terms of order intake, we are rebounding. System, of course, is growing also very fast on the back of Dubai and Riyadh in particular. You see that on the next slide. Out of the EUR 4 billion, we have a large growth in rolling stock on the back of, I would say, the regional and high-speed trains in Europe and also Prasa, which is ramping up. System, it was the same last year, we announced it clearly. Dubai, Lusail as well, and Riyadh are in heavy phase of project execution. Service is growing quite a lot again. Particularly based on the U.K. and in Italy.
The order intake, it's fair to recognize the order intake of service is very good this half year, and will continue to be very good during the year. We have, in the recent years, a book-to-bill each year of 1.5, 1.6 of service, which is an excellent book-to-bill. A few nice pictures of some of our projects, just to confirm that we are progressing, if there was any doubt. The first trains of Dubai 2020 are being manufactured in Katowice. It will be, frankly, the 2020 project, which is being delivered, is a very important project and it will be a world record in terms of delays or speed of execution of such a project in the world. Lusail, we are also delivering the trams in Qatar. R&D innovation, extremely important.
As I've said in the past, this improved profitability cannot be at the expense of a decrease in R&D. On the contrary, we should continue to at least spend, in percentage, the same amount, and clearly in absolute value, an increased amount in R&D. We have now completed the full renewal of our rolling stock platforms. We have started with the tram, then the metro, then regional trains, and now we are with ASP. All that is now being done, and we are extending these platforms by extending the different possibilities and the different sub, if I may call them like that, sub-platforms. For example, the Frankfurt tram is in steel and not in aluminum, where it's a classical place for Alstom. We are progressively expanding the platform that we have renewed.
We continue to invest heavily in predictive maintenance, and in all that is smart mobility, our digital programs, and this is paying off. We have a huge investment in these areas. Just two innovations which have been launched during this first half. The first one, and you probably have heard about it, which is the iLint. It's interesting because it's both, I would say, targeting the environmental performance of the trains. Of course, with hydrogen trains. It's also something which is not purely digital. It's one of our core technology, which is attraction. I think it's important to say that we are investing a lot in digital, but we are also investing in our core technologies. This is hydrogen traction, but we are also investing in the classical attraction systems. We have, I would say, on the other part of the spectrum, we are also launching StationOne.
This is the first online marketplace for the railway sector. There is none today, no marketplace dedicated to the railway sector for operators in the world to be able to purchase parts, components, to all type of suppliers. This is a dedicated technical marketplace. It's not officially launched, but it will be officially launched in the coming weeks now. We have announced its launch recently at InnoTrans, which is our fair, yearly fair, every two years in Berlin. In terms of EBIT, 7.1 margin. Of course, if you compare with last year, IFRS restricted for IFRS 9 and 15, you see a huge increase of our EBIT, and on the back of the huge volume increase as compared to last year under IFRS 15 again. Fundamentally, our action plans are paying off, and we continue to improve the execution of our programs and our projects.
Classical leaders, which we have launched a few years ago. On sourcing, for example, we have changed the way we interact with our suppliers by moving more and more towards frame contracts, towards partnerships for innovation. Also towards global sourcing, benefiting from our global footprint. We have 50% of our purchase which are done in low-cost countries. We have improved significantly our global vision of the sourcing. One particular aspect, it was key to Alstom strategy, which is the Indian ramp-up, because India is not only here to serve the Indian market, and it's successful to serve the Indian market, as being seen with the contract in Mumbai. It's also a strong base to serve the world. In 18 months, we have doubled the number of employees in India from 1,800 to 3,500.
Today, the largest engineering centers, both for signaling and for rolling stock, are based in Bangalore. This has proved to be a very successful strategy from an export standpoint. As you probably know, we are exporting from India to SNCF for the metro. We're exporting from India to Montreal as well for the metro. We're exporting a lot of traction from Coimbatore to the rest of the world. This Indian strategy, which we have launched a few years ago, is extremely successful. Yeah. As well, in terms of project execution, just to highlight some of our key execution and key milestones being achieved. At Prasa, we have inaugurated the factory officially. Now it's in full production, delivering the trains. It's a question of ramp up of the supply chain and flow. I would say, so far, so good.
It's, of course, a very complex project. It's, of course, a new country, a lot of challenges. It's progressing very well. On Riyadh as well, progressing very well. All the trains have now been delivered in Riyadh. They are now tested in order to be ready for the operational service. Thank you. Now I will hand over to Laurent, who will explain to you more of the financial results.
Good morning, everyone, and would be very pleased to meet some of you in the days and weeks to come. Starting with a short introduction, all the numbers that we are presenting now are under IFRS 9 and 15 standards. Going straight below the Adjusted EBIT, we had, as you see, EUR 34 million of floating charges, driven by the footprint rationalization, notably in the U.K. and Brazil. On the other charges, we are included amortization of the intangible assets and integration costs related to the business combinations, such as I said, GE Signalling and Nomad, which we reduced to EUR 7 million. We have the transaction costs related to the Siemens- Alstom deal, which amounted this half year for EUR 36 million.
In terms of financial results, we decreased that to EUR 46 million compared to the 53 million of last year's, fully consistent with the decrease in our gross financial debt, resulting, as you know, from the repayment of our EUR 272 million bonds in October 2017. Of course, going forward, our financial results should continue to decrease as outstanding bonds will be paid out. We recorded as well an income tax charges of EUR 12 million for our first half, corresponding to an effective tax rate of 7%. This effective tax rate has been lower due to deferred tax assets recognized on previous tax losses carry forward, and as well as some reversal of tax provision. If we exclude these items, our effective tax rate would have reached 26%, which is very much what we expect to be our normalized level, which is closer to 25% going forward.
Finally, the change in net income from equity investment amounted to EUR 161 million related to our energy JVs, EUR 99 million, and as well as a good performance of TMH with EUR 49 million. In complement, we have, as you see, recorded an exceptional net income from discontinued operation of EUR 245 million, leading us to a full net income group share at EUR 563 million in our first half.
Moving to the free cash flow, you know that this is a key priority for us as management, benefiting from our impact of our cash focus program, EUR 172 million altogether with a change of working Cap limited to EUR 10 million. However, as Henri mentioned, potential volatilities on the periods remains. Free cash flow has been also impacted by some phasing on the financial cash out and as well on the transformation CapEx, which I will detail you now moving to next page.
On the CapEx side of the equation, we invested EUR 85 million in tangible assets in order to continue our modernization of our existing facilities and strengthen our global footprint. In terms of transformation CapEx, we spent EUR 52 million, while we continue the construction of manufacturing of sites, notably in India, in South Africa, where our Gibela factory was inaugurated end of October, and you see nice pictures on this slide, and as well as the extension of Hornell in the U.S. Altogether, at the end of September 2018, our cumulated amount of transformation CapEx amounted to EUR 212 million out of our EUR 300 million that we have been communicating so far. Moving to the liquidity and the gross debt, we have a gross cash in hands of EUR 1.8 billion at the end of September 2018.
In addition of, I would say, it's available EUR 1.4 billion of cash and equivalents, we have, as before, a full EUR 400 million revolving credit facilities maturing in June 2022, which is, of course, fully undrawn. On the 2nd of October, you know that we have completed the transfer of all our interests in the three energy JVs, renewable, grid, and nuclears, to General Electric, and we received a total cash payment of EUR 2.6 billion as planned. Looking at the outstanding bonds, which I mentioned before, EUR 1.3 billion outstanding end of September. The maturity of October 2018 has been paid for sure, and our next ones are around EUR 300 million in July 2019.
Moving to the net debt, which has been reaching EUR 280 million in September 2018 compared to EUR 255 end of March 2017, driven by our positive free cash flow evolution of EUR 172, the acquisition of EUR 136, mainly related to the TMH investment of EUR 115, capital increase of EUR 5, dividends payment of EUR 84, and Forex and other for EUR 18. That leads us to the equity bridge, with equity reaching EUR 4 billion in September 2018 from the EUR 3.5 in March 2018.
The key driver is obviously the net income, EUR 560 million, some limited valuation on pension of EUR 16, dividend pays to the shareholders EUR 78, share-based payments of EUR 16, and some other evolution of EUR 25, which includes some EUR 32 of currency translation adjustment and EUR 16 million fair value adjustment on the LocoTech investment. Thank you for your attention. I'll go back now to Henri for the outlook.
Thank you, Laurent. In terms of outlook, as said, again, we confirm our guidance for this year with sales around EUR 8 billion, and we slightly upgrade the Adjusted EBIT guidance from up to 7% to around 7% to allow us, if we want to do better than 7%. In the medium term, of course, we want to continue to outperform the market growth as we have done over the last years, consistently year after year, continue to improve the profitability. Again, cash generation is a key focus. You know for us, it translates into a positive evolution of our working capital, or at least a stability of our working capital, which is a key target for the company. Of course, in the meantime, as you know, we are building this fantastic project with Siemens to create a leader in world transportation, and this is progressing very satisfactorily.
The project, you know this schedule. We are on time, and we are in the discussion of antitrust clearances. We have 27 jurisdictions, and it's progressing extremely well worldwide. Of course, one of the most important one is Europe, and we are progressing as well with Europe. Just in case you want to ask some questions, don't expect me to answer to any detailed question on these discussions. These are ongoing discussions, and we are still very confident to close this deal during the first half of 2019. I would say that all milestones are being reached exactly in line with our expectations. Now we'll move to the Q&A. Is there any questions? Probably.
Thank you, sir. Ladies and gentlemen, once again, as a reminder, if you wish to ask any questions, please press star one, and also please limit yourselves to one question each. The first question is coming from Gaël de Bray, calling in from Deutsche Bank. Please go ahead.
Thank you very much. The question I have relates to the margin performance. If we look at last year's performance restated under IFRS 15, it seems that the H2 revenue was about 20% higher than H1, at close to EUR 4 billion, but with a similar margin of 5.4%. Now if I take your guidance for the year, you expect sales of about EUR 8 billion, implicitly EUR 4 billion again for H2. That would be stable year-over-year. I guess my question is, what are going to be the margin drivers in the second half of the year if sales are indeed only flattish? Thank you.
Yes, Gael. On this one, of course, this retreatment of IFRS 15, as we have said, is not totally even in the year. There have been clearly some quarters which are more impacted by the IFRS 15 retreatment than others. It, of course, blurs a little bit the comparison year-over-year. It's true that during the first half, the volume has played a great role. During the second half, you could have a mix between the volume and improved gross margin.
Thank you, sir. We'll now go to Akash Gupta calling in from JP Morgan. Please go ahead.
Hi, good morning. I have a question on antitrust. I know you are not going to say much, the question I have is that whenever we see headlines on European Commission concern on the deal, can you address that only through certain divestments, or can you also address them through changing your market practice or let's say, behavior in a sense? Thank you.
I'm not going to enter into the discussions that we have with the European Commission. I think we are working very constructively with the European Commission. First, to explain the rationale of the deal, and what the impact of the deal on the market, and the positive impact that the deal will have on the market, and for our customers, because we do that for our customers and employees and ultimately for the passengers. In terms of discussions, frankly, on the details of the discussions, we will come back to you when discussions are finalized.
Thank you, sir. We'll now go to Martin Wilkie of Citi. Please go ahead.
Good morning. Thank you. It's Martin from Citi. Just coming back to the point on IFRS 15 and the phasing. I think when you first talked about the transition to the new standard, you mentioned that some revenue that had been previously recorded would essentially get booked again just because of the way that the milestones now fall, and you have more coming at the end of the project.
Given that you've under IFRS 15, you're now recording some of that later. Is the bulk of that benefit coming this fiscal year? Obviously we're trying to work out how much of the year-on-year change is an accounting effect, and how much of it is a genuine uplift in your business. If you could just sort of quantify how much of that, the earnings that you will record once again on the IFRS 15 falls this year, and how much of it comes over the coming years. Thank you.
Maybe Laurent will take this one.
Just to remind a couple of numbers. In terms of H1, it is the restatements of the revenues last year's moved from EUR 3.7, IAS 11 to EUR 3.3 on IFRS 15. On a full year basis, the restatement is around EUR 600 and from 7.9 billion-EUR 7.3 billion. To your point, Martin, in terms of the phasing, this is a very complex equation because this led to a number of restatements on our full portfolio of projects. It's fair to say that the phasing will be on a couple of years and not only on the 2018, 2019 exercise.
Also, to your point, there is no catch-up impact. It's a backlog impact, some of the sales, sorry, which have been recorded last year under the older norms have been recorded this year, there is elements that you said, but other sales which should have been recorded under the old form this year would be actually recorded the year after. There is a kind of backlog impact, more than just a switch from one year to another. Next question.
Thank you, sir. We'll now go to Jonathan Mounsey calling in from Exane BNP Paribas. Please go ahead. Your line is open.
Good morning. Thanks for taking my question. Just really related to that last one. First of all, just to be clear, is IFRS restatement distorting your organic sales growth in H1? If not, just to understand what's happened. You reported 17% organic sales growth in Q1, I think. I guess the underlying rate must have accelerated to something perhaps north of 25 in Q2. If this is a genuine non-distorted organic number that we've had in H1, what happens next year? You're guiding to a target of 5% per annum. You've done 23 in the first half of next year. In FY 2020 and H1, I know the order book supports growth, given this comp, are we likely to see organic sales growth declines in H1 of next year?
I think it's a tricky question that you are asking because we tend to think that sales growth is a physical indicator, where it's not totally a physical indicator. The change in accounting puts a spotlight on different, I would say, activities of Alstom. Under the old norms, we were counting the delivery to the customers. Under the new norms, we are counting the production of Alstom. Of course, there is a link between the two, not necessarily at the same speed and for the same contract. One was, again, the milestone, it was really the physical delivery to the customer. You could have big, large bumps because of large milestones when you are delivering a fleet to a customer or something like that. Whereas in the new norm, you are counting your production hours and your supplies.
In a sense, the new norm is more related to the actual growth of the production, therefore shows a good image of the ramp-up of the company, while the old one was more in line with, I would say, the way project we are structured. Now that we are in this new world, I would say, clearly the new norm shows that this year there is a huge increase of activity within the company, which is in line with previous order intake and backlog. Next year, we should not see again the same kind of growth rate. We should come back to the guidance that we have given, the outlook that we have given, which we confirm. This year is a little bit specific.
I would say if you forget about the restatements, if you just live in the IFRS 15 world, it's a little bit specific with a huge production. You would have had, I would say, lower growth rates under the new norms, if you were to come back a few years ago. The ramp-up would have been because when you do, and that's what is explained by Laurent, we have a huge ramp-up of activities. The first years of projects is usually dedicated to engineering, therefore produces some sales under the old norms, very little sales under the new norms. If you were to project Alstom trajectory as it has been experienced over the last years, it would have been, under the new norms, a much slower ramp-up. This year, as you can see, a very strong ramp-up.
The old norms, because it gave more importance to the milestones of engineering than the new norms, has actually delivered to Alstom results, a much smoother ramp-up. This is what explains the difference. Okay. Other questions?
Thank you, sir. We will now move to Mr. James Moore calling in from Redburn. Please go ahead, sir.
Thanks for taking my question. It is on free cash flow. Can I just step back to that last one and say, did you look at what the margin and organic sales growth would have done in the first half under the old accounting? If you did, could you give us a rough number? My question is on the free cash flow. Your transformation CapEx, do you expect to hit the EUR 300 million this fiscal year? On financial cash outflows, you have mentioned phasing. The cash tax in the first half seemed quite high. Could you help us a little bit with how you see financial cash and cash tax for the full year?
Laurent will take it.
On the margin, we did not entertain at all any, I would say, what could be the result of H1 2018, 2019 under IAS 11. We did not get into this analysis at all, James. To your point on free cash flow, which is, as I said, a key focus of the management. Related to the transformation CapEx, we have spent so far EUR 212 million, as I said. We are very much on track in terms of industrial progress.
Overall, I would say that this transformation CapEx project is fully on track. To your point on the financial cash out and the tax cash out for the second half. Indeed, James, there will be some phasing, and we are expecting a slight, I would say, acceleration of the cash out for the financial cash out in the second half. While on the tax cash out, on the contrary, we are expecting a positive phasing, i.e., less cash out in the second half versus the first half.
Thank you, Laurent. New questions? Next question.
Thank you, sir. Now we'll go to Mr. Alfred Glaser calling in from ODDO. Please go ahead.
Yes, good morning. I just wanted to ask you about the profit evolution. You posted an extremely strong margin growth in H1, and you slightly revised up the full year guidance. What's your view on the margin going forward into next year and maybe the year after? How do you view your potential for further margin improvement?
Yes, Alfred. On the outlook for the year, as you said, that we have upgraded our guidance from up to around. We are already at 7.1%. We are already in this around 7% territory. That give you the answer to what we expect for the second half. On the medium term, we continue to target an improvement of the profitability as we have recorded in the past years. Frankly, it's not theory, it's on the back of the improved margin contained in our backlog. We continue to record orders with improving margin month after month or quarter- after- quarter. Not only the volume of backlog is at a record high, but as well, the margin included in this backlog. It sustained a gradual improvement of our margin.
The gross margin, as you know, the gross margin of our backlog, it takes time to. We discussed that in the past. You know that, for example, some of this margin upgrade is due to service maintenance, which is, as I said, growing nicely. Of course, orders in maintenance are translated into sales very gradually, so it takes time for the gross margin to improve. Of course, you have the volume impact and the cost structure, which is directly impacting the yearly margins.
Next question.
Thanks, sir. We'll go now to [audio distortion] calling in from Societe Generale. Please go ahead.
Hi. Thanks. This is [audio distortion] filling in for Iris Hauth from Soc Gen. Just one question from my side. Perhaps could you help us understand a bit more on how you're organized in your businesses, within across regions and particularly in case of the signaling unit? Just wondered if that's split cleanly at the country level, or is it a bit more closely aligned or intertwined with the other units? I'm just thinking about factory sales organization, the supply chain, et cetera. Signaling versus the rest.
Thank you. Yes and no. We have the basic product development and platform development is managed in different units, not necessarily sites. We can share a building or that, of course is different, is engineering capability, it can be in the same building, but it's usually managed differently with a different manager. However, there are a lot of commonalities with infrastructure in installation, management of suppliers, and some of the groundwork. Some of our units, when you talk about one site with a manager, are dedicated both to signaling and to infrastructure. It can happen, particularly, again, in units which are not responsible for product development, but which are responsible for the installation of our product on the ground. We have here and there. We can report the sales, it's true that in terms of some of other indicators, it can be mixed locally.
I think there is no other questions. If there's no other question, just to thank all of you for your attention. Just a last point, if you look at the agenda, first, we'll talk again on January 17th for the Q3 orders and sales and May 7th for the full year results. As you can see on the contact part of the slide, there have been a slight changes. Julien is still here to serve you, of course. Selma has decided to work for a grocery shop. She will move, and we will welcome Julie Morel will take over beginning of December. Thank you everybody, talk to you very soon. Bye-bye.
Ladies and gentlemen, that will conclude this conference. Thank you for your participation. You may now disconnect.