Earnings Call: H1 2021

Sep 22, 2021

Ladies and gentlemen, welcome to the Half Year Results Conference for 2021. At any moment, you will be able to ask question in the chat box in the dedicated chat box on the platform. Let's now leave the floor to Steven Grobe, EVP, Investor Relations and Communications. The floor is yours. Hello, ladies and gentlemen. Welcome to this presentation for the half year results for 2021 for the group. Happy to meet you and hopefully virtually for this time. In this presentation, we will have the pleasure to welcome Yves Le Mans, Chief Executive Officer of the Group Sebastien Menard, CFO myself as EVP for Investor Relations and Communication and Madame L'Oreal Frere, EVP, Well-being, so for Medical, Quality and CSR. And she will be presenting the project for 2023. Let's start with a reminder of our business model, our activity. I'd like to remind you that Orpierre is in 25 countries throughout the world. And wherever the objective of the group is to develop a comprehensive offering, taking care of addictions and of elderly people. We are one of the main artists in France, in Switzerland, in Germany for people with addictions and in nursing homes to your company, people who are not completely dependent yet, but they are semi autonomous. Of course, we are present in mid term and long term care. And also for rehabilitation and mental health hospital, either in complete hospitalization in day hospital configuration because we all have these also in mental health hospital. We have dedicated care for youngsters, for children and for adults. So a comprehensive offering, taking care of any kind of fragility and this is the model that we try to develop throughout the world. Let's now take stock about the COVID-nineteen situation and the vaccination. Let's start with the vaccination. I'd like to remind you that the vaccination campaign started in January, February. We managed some years ago to attain a really satisfying level of vaccination. We are at 91% vaccination for the residents. There is a part of our residents that are not eligible for vaccination for because of infection or peculiar illnesses. And these last week we've had a significant acceleration in the vaccination of our employees. There is an obligation for that since September in France and in France, we have 99% 98 percent of our employees that are vaccinated. So 95% globally. We will take stock about the vaccination of employees in Switzerland and Germany. In these countries, we only count employees that are vaccinated that work in the homes, in the structures. It was the same thing in France before the rule and the obligation to vaccinate all of the health workers and personnel. And these people outside the residence would represent about 30%, 40%. We moved we went from 60% to 90% of employees vaccinated just by counting the external workers that we were using that were not taken into account before. I'd like to finish on vaccination by adding that, concurrency to the regulations and indication by the authorities, we started the 3rd dose vaccination that's called the booster. This started in France in several companies. The effect has been quite immediate because since the end of March, we have had basically health situation. This situation is really well controlled. We have less than 0.2% of positive cases either in the residents or the employees. So really a slow rate. 90% of these are asymptomatic. This is the proof. This is proof that vaccination works quite well. The consequence of this vaccination campaign has been the fact that 90% of our structures are COVID free. And this, of course, has led to a decrease in the death rate, which we are really happy about. We will get back to this later. Let's now move leave the word to Yves Le Man, who will talk mainly about development. Thank you very much, Steve. So Yves Le Man, CEO of the Au Pair Group. Talking about developments, we acquired a 6 value creating structures, 42 facilities and 4.700 additional pads. The problem of the group is that we were going to pay 12 to 18 to 20 times more. And so we were looking for intermediary structures to be acquired. And some years ago, we acquired a small group in Switzerland that became in time number 2. It's a family group that had some other groups attached to it and one namely in Austria. It has become in time number 1 in the sector, 50% of the private sector. And we continued like that. Why family led a group? Because most of the time they had a culture, they do not follow the EBITDA necessarily. They care more about the quality of the service. And then, of course, we can teach them what they lack. So we want to continue with this well-being, with this care culture and bring the results. And there, we get to Ireland. We have a similar approach. There were about 10 groups in the markets in this countries. There was 2 groups representing 1,000, 1200 beds. We made a first acquisition about 600 a little over 600 pads and then we completed the investment with a second one, bringing us to 1200 beds. And then we acquired a third, a 4th, the 7th of the country. We became number 1. We have, for instance, in Dublin, more than 50% of the market with some with the team that we've as we found in Austria previously, allowing us to develop When we acquire a group, there are managers there that we can work with to increase the revenue and the coverage. The size of Ireland with our project has more than doubled. And as we did in Austria previously, we doubled the size of the group in the country before in Austria and then in Ireland. So we completed the acquisition with a key establishment and the manager of the group that we had acquired in Ireland had nice relationship with this group. So we acquired the Belmont House. You have some pictures to show it what it is. It is one of the most prestigious facility in Dublin. And this is quite a showcase for us. We've been we've become number 1 in Ireland. So a lot of beds in development in the pipeline yet to come in Ireland. So with 2,000 284 beds representing €135,000,000 In Spain, we've carried out a strategic acquisition of Hestia, a number one group in positive care and rehabilitation and psychiatry. So it was a strategic acquisition. As I said, the 1st group of care rehabilitation in psychiatry in the country. We through this, we want to develop rehabilitation and psychiatry in this country and we you have to see We try to choose always the excellent locations. The structures here are in Madrid and Barcelona, as you can see from the slides, where the potential developments and extensions that are possible. This coverage has allowed us to complete our presence in Spain with the 14,300 pads as a total 87 facility and 3 complementary businesses since the updating of the network in next March. So the network of the group integrating this 6XXI acquisition, We are present throughout the world in 23 country, divided in 4 main geographic areas. The first one, France, Benelux, 4 countries with 49,207 pads Central Europe, with Germany, Switzerland and Italy, with a little less than 30,000. But Eastern Europe in undergoing an important development with a little over 15,000 beds. The 4th zone is Iberian Peninsula and Latin America with a little over 23,000 beds. And when you look at these three areas, you see that 80% of our development is right now in Spain. Now we have other countries as well regrouping for the moment only China. So the division of this network, when you look at the breakdown of the beds and the pipe line, this is more or less similar in several areas. So France, Benelux and Central Europe. So an interesting pipeline on the Iberian and LatAm Peninsula, 5,000 beds in the Iberian Peninsula and the rest in LatAm, whether the opening of the construction provides a global network with an important number of beds available. So let's look at the pipeline. More than 6,000 beds under construction. The potential of development of the group to give you an order of escape greatness this represents in a term in the next 4 to 5 years, EUR 1,000,000,000 of euros in additional turnover. So even if we were to say that today with stop creation, this is not the case, I'm just talking by example, we would still have EUR 1,000,000,000 of additional revenue in the 4 to 5 years to come. We have prices higher by 15% to the mean or payer and the sector prices. And the ancillary definition of this are excellent localization inside within the great capitals of Europe and also in Latin America. So this pipeline is represents more or less 70% of premium facility to feed our future growth. Now let's look at the opening and acceleration of the openings in 2021, more than 4,000 beds. It's going really well since the beginning of the year. Several facilities opened since the beginning of the year and more to be opened before the end of the year, 32% in France, 20% in Central Europe, 23% in Eastern Europe and 25% in the Iberian Peninsula and LatAm. We will open our first structure in Rio in one of the most exclusive facilities of the bay. We have a sweet story with high end facilities as spa, restaurants and other activities that will be open inside and outside of the facility. So we open more and more to the exterior of our facility. Another example of a new opening, we opened a structure in Poland, 168 beds. This is now our first facility with really top line services for orthopedics, with cutting edge equipment using 3 d, using new devices and equipment based on cutting edge research. And we implement Orpierre know how in the center of Barso in Poland. Another example, the 3rd opening of the year in Spain in Bilbao, a nursing home of 5,000 square meters in the center of Bilbao, less than 500 meters from the Great Bilbao Natural Park. So I hand this facility. And one last example, Dortmund in Germany, a nursing home also implementing home services and home. Follow-up on the just really on the Dortmund Lake. So really exquisite facility. Let's now move to Sebastien Menard to the half year's results. Hello, ladies and gentlemen. So a really important increase of the activity with an increase of 8.7% at €200,000,000 a €200,000,000 more than 5% in respect to 2020. So we confirm the objective. This half year has seen an important increase with the progression of the EBITDA, a net result of €102,000,000 with an increase by 40%. We also reinforced the financial capacity of more than €1,000,000,000 and also reinforce the our patrimony. The turnover by geographic zone on France and Europe, an increase by more than 10%. Central Europe, plus 3.4% and the Iberian Peninsula, El Oren, of 16%. Now a focus on the organic growth. We have an increase on the second quarter of 1.5 0.9 percent. So the growth of 5.2%, a small precision organic growth on the half year was not it was by 2%. And 0.3% on Central Europe, 10.9% on Eastern Europe and minus 12.5% in the Iberian Peninsula. The main acquisition on the semester have been made in France, Switzerland, Ireland and the Netherlands, as you have seen in the previous slide. The negative net impact of COVID-nineteen on the first half year was lowering by 33% in respect to the same period in 2020. This net this negative net impact is 160 basis points on the EBITDA, bringing the loss in activity in to EUR 18,000,000 30 basis point on the personnel costs. If we add this 170 basis points to what we have on the margin of 2021, we would have a margin EBITDA of 25.6%. So it's superior to 2020. We compensate in France and in Germany, in Austria and in Belgium, and we are at a loss only in Italy and Spain. 26% in France and Benelux. I'd like to remind you that in 2020, there was a decrease for the nursing homes whilst in 2021, we see a rebound and an increase. On Central Europe, we have an increase of this margin. This is linked to the structuring of the headquarters, especially in Germany. In Eastern Europe, we have 15.2% of increase in respect to the previous year's year because especially in Austria, we had in 2020 a complete closing of all clinics and this have reopened in 2021. There was also a remarkable increase in Spain and this is linked to the improvement of the structures especially namely in Spain and no compensation as I said in Spain. Let's move to Page 20 5. A net profit group is big share in strong increase of +40 percent. The personnel costs see an increase of 9%. BRL84,000,000 an increase by million representing EUR4 1,000,000 linked to the calculation of salary taxes against BRL 44,000,000 in the Q1. The compensation linked to the decrease of the turnover have been to be, comfortableized in charges and products and compensation linked to the augmentation the increase of costs are divided by nature. Rentals have decreased 168,000,000 So we have plus 40% on the whole half year, plus 10.2% connected to our strategy, as said. And also financial debt, which is decreasing as well, and €12,000,000 for noncurrent elements, which gives us one global result of strong increase of +40 percent. So 30.9% then decreasing as compared to the last semester. And also, we have a decrease of 50% of slide, we have great cash flow statement for the first semester, more than €800,000,000 So it is still for our EUR 86,000,000 for real estate investments as well. So participations and so on. So €178,000,000 We also had a strong program for financing of €652,000,000 Now cash flow here is variating according to last year results. This is a decrease €1,000,000 of disposals of real estate. So we have still great commitments on that. And we are we hope to get to the objective till the end of the year. Next slide. Till, we had €12,000,000 as for the whole global structure, for €4,000,000 to €7,000,000 an increase of 6%. So plus EUR 4.63,000,000 this is connected to the supports and funds to €6,800,000 This decrease is at connected to the real estate. So this long term financial debt, as we see here, which is 1.7 for the real estate financial leverage and 1.18 for real estate gearing. So 2.2 till the end of December, and we have 6.2 years for the duration of net debt. High successful debt issues for Opio in 2020, So first sustainable €500,000,000 7 year bond. This is the coupon 2%, which is green and social, which is aligning with our the sustainable objectives and the sustainable first bond, green and social. And we have EUR 1,000,000,000 in France and also €395,000,000 for the record Schuldschein issuance. So we're a 5 year program. We have tealed great part of banks, which is 54%. And this is the result that we can see over the 5 years, which the debt profile significantly optimized. Duration plus 1.2 years for a total duration of 6.2. Thank you. So Health Care Real Estate on Slide 31, as we have seen, a very strong increase in volumes. H1 has 64% of the transaction of the fiscal year 2020. So this is extremely important as well with the international investors because we have growing interest from them. And this represents 60% of flow 64% of those. So it could be nursing homes, 63%, but also already what we have developed with assisting Assisted Living, 11% and also a great increase with investors. We also have a strong decrease in yields for Healthcare assets across Europe, 4,000,000 and 4.5 percent. In Germany, as you see, 4.5 percent 4% in Germany. So France as well, we are in this situation. Spain nearly 5% and Belgium 4.25%. So this is actually what happens on all these 4 countries, so an average decrease in these key countries. So for OP, we have 5.3% globally. So we are above the rates we have seen and the levels we have seen in the other countries. And also, we have between 4.1%, 4 point 6%. So that confirms what I've just explained for our group. So we have stability as well. So 47 percent stability for real estate ownership rate. So this is as well another core business point. So the first operator with I mean, 1st European Healthcare Real Estate Company. So as said, that corresponds to what we have in Orpierre Group. So 70% of the sites are in France and Benelux. So we have, of course, Spain in good shape, but also Eastern Europe, Austria, mainly Central Europe with just 2 in Germany. And this corresponds to the rates between 4% and 4.5% as we saw before. So this means that globally, we have great capacity and also we have this capacity to have this rate, which is stable as compared to the previous semester. Now what about the inflation effect on OPIA? We have actually several examples. The only negative example that we have could be connected to the rates, which could increase. So 1% GAAP, which is between 4.2% and 4.3%, which is high. So still this effect, which allows us not to have to be jeopardized. And also, this is positive for service company because we have still an increase. First, we have regulations in France, for example, 1% annual increase, which is, of course, connected to all the increase globally of wages that we have in groups. And as we had before, which is actually 0% to 1% in that field. So for all the revenue, it is an excellent news to have inflation. So as said, we have 1% for rent, so capped more than 50% of lease in France with indexings capped at 1%. And as we always said, we are covered 100% stability of current borrowing costs. So 100% of debt is hedged. So no risk to have even €1 increase if we had an increase. So no provisions last year, by the way, because we were in failure to 0, and that could be also important to have an increase. So future debt could increase, but that is connected to anyway the global results, which are positive. And in fact, for our development, we will talk about 20 points. Why? If the debt is 0, regardless of the number, which can be positive. So this is why we're extremely cautious on acquisitions not to get too high to 10 to 12 points. And this is where we find all the targets, all the countries to have more interest and to have all the ways of development and other situations. Now I would like to give the floor to Laure. Laure, you will cover the CSR strategy and the 2020 road map. Good morning. I am Laure Frere in charge of CSR Strategy, and I will introduce to you our positioning and approach. A few words, first of all, to explain how we have built the position and also to see the work we have done, taking into consideration, of course, all the stakeholders with the, of course, nursing homes, the family, the employees and so on and all the peer participants. So our daily mission, of course, is to take care of a agile person. And the central, the core value of our strategy is human value. So women, men, families, facilities who take care of patients. So a few elements here, 9 markers for our CSR strategy. So I will not get into our 9 into details on the 9 markers. 1st, the CSR native, this is number 1, which means we are committed in these values, which are so much important to also build our facilities, health care centers to have a lot of comfort and also sharing human people. And of course, second marker is local. What does that mean? Of course, it's 2 words together, global and local. So why? Because our road map that we'll see is developed in all our countries and also will be adapted locally to the patients, of course, and facilities. 3rd marker is the notion of evolution. So why? Of course, this is connected to our 2023 vision. We need to keep in mind that this road map will evolve, of course, in the following months. So in order to enhance this strategy, we wanted to integrate this strategy in all the group's bodies. So first of all, the Board of Directors and CSR Innovation Committee in order to see clearly the definition of orientation, monitoring the process and the CSR approach because management inside the group must be integrated to that vision. So we need to have this governance in all countries, in all facilities. And for each meeting that we have, we need to deal with this follow-up, I mean, this road map follow-up. So we need really to stick to that. And also, we need to have a lot of criteria put together inside this vision. Now let's see in details what is this ambitious 2023 CSR roadmap. 16 objectives actually, of course, we'll not get into details for each of them. But first, what is connected to residents, patients and families, 100% of facilities certified certified by an outside body, either level standards or above. And also we have in certain countries led ambitions on that level. Also we would like to have 100% of our facilities will I mean, be developed and be managed in a way that we can, of course, take into consideration a global mechanism of well-being. And for us, it is key to fix, to define the commitment of all the practices. Now as for collaborators, employees are concerned. First of all, security is key. Of course, this is a key value that we have in Orpierre to preserve security and health. And through prevention programs, we want to continue to reduce 15% of work related accidents. But also we are extremely careful to our collaborators' careers and we actually have 10% of employees which have obtained a diploma inside that. And we would also like to have 50% internal promotion for regional directors, facility managers, but also head nurses and as well together with diversity of profiles, but also complementarity of women and men. We have fixed, established 50% women present in top management inside the group for 2020 3? And also, what about the last point here, maybe a 0.4, which is environment? We have 2 commitments here. 1st, 100% of new buildings from 2021 certified HUE or equivalent. And we have the willingness that new facilities are inside this approach to have this environmental certification according to countries, obviously. Another key point here about ARRIS CSR strategy. So actually 2 elements in new environmental strategy. So the willingness to support all the objectives that we have here and to deploy programs, which will allow us to enhance this strategy and to have the opportunity to reach the objectives first. We have several programs, which are connected to women. For example, the inclusion program, and we have a partnership with HAC, School of Management, so a leadership program, to help women who want to have very high positions. And this is really a new program and we'll see what happens in the future. We are also working on other points because for us, we want to work on nutrition. So we have a Catherine Be Well program. And this is the creation of this chapter, Nutrition, Health, Pleasure to develop a know how and prevent undernutrition and also to engage against food waste. So these commitments are extremely important. With this charter, as said, we'll be able to double and let's say highlight our actions. Now as for inclusion, again, we have a great opportunity to participate to the DAI Index, which is Disability Equality Index. The idea is to facilitate the participation inside the companies, the facilities. It is a pilot participation in the Global D. Index so far for only U. S. Companies. So this is indeed a great project. And other ambitious projects that we have developed together with the group in order to define within the end of 2020 1 a new environmental strategy and this approach is really key. And on the basis of this environmental strategy, we'll be able to get 2 and to complete 2 scopes: 1, reduction target with respect to GHG emissions and to reinforce to be selected for the corporate convention for the climate and will join the convention, respectful of living, implemented in all companies throughout 150 operational roadmaps. So it is, I mean, a great honor to be part of that project and to go farther, to go ahead and also to build a more sustainable future. Finally, what about our work that we have done for a long time now. And as said beforehand, we have this native policy. So we are implementing this road map and AFS has been working throughout us on this point and it has been recognized in Extra Financial Agency ratings. So here, we have the MEDAL RISKS evaluation according to the field. So we are ranking 5, and we were 34 in 20 19, as you see. So this is extremely important to reach at that level. And we are amongst the most performing I mean, top 10% best performing companies within the sector. And this is 49 points acquired. So we are actually 4th for Avigio IRIS, as you see. So ranking 4 out of 47. So we really want to be as determined as ever for our policy. And I would like to thank you for your attention on CSR strategy. Right. Thank you. So we try we want really to work and sustainability has said, it's so much important for renovation of certain pillars, but also the building of new sites. And also the idea is continue what we have done on premiumization for the offer of the network, so internal development, we'll estate disposal and also international, I mean, targeted acquisition in Ireland, Switzerland, Spain mainly. So small groups, let's say, average medium groups, which are independent. And also as said, real estate disposals still keeping the flagships, the best ones, position. And also, next year, we'll develop more this aim in order to organize our financing and also disposals in the future. So anyway, as you see here, we have this opportunity And also responsible and we are a responsible and engaged company. We are, I mean, an example in our field, but not only. And this is so important for PA Group to enhance sustainable development. We had we needed to get to this upper level and this is what we did. So we are one of the main global groups and actors as far as the revenue is concerned, profitability. So at least for revenue, plus 7.5 percent at least. So we are anyway, cautious on these numbers. So €4,200,000,000 And of course, we have great progressions as well for profitability, group stabilization in July August. And also new facilities and several changes in France, good increase for the second half year and beginning of the third. And also, operators have started again their activities in September. So we are, as said, extremely cloud to see also the EBITDA margin for H2 and also EUR 100,000,000 EUR 3 100,000,000 in order to be ended during the semester. So now we need to conclude. So we'll have a look at your questions. About past COVID. What about residual costs, which may be present? So no structural costs from COVID. We had, in fact, extra costs, and that was the question during COVID-nineteen. So we had to bring, for example, lunches in the rooms. And during the crisis, that was more difficult as well for cleaning operations, but no past residual costs. And also, we have an increase of margin. Why? Because we when we have failures, we learn and COVID-nineteen is the case that we have learned how to regulate better our cost and also how to work in a different way, still with the same quality, even more quality. So we have learned how to better structure our costs and our actions and sometimes we had increase of margins at the beginning of 2022. As for occupational rates, we had an overview, which have started to at the end of March with an excellent May, June, July in the nursing homes through the network had record a really extremely high record and also August has seen, let's say, a stagnation because of short stays in September as we are under 20 second, which is, I mean, continuing on that trend, speeding up on reeducation facilities and homes. So what we said is that we should go back to the rate pre COVID rate within the end of this year knowing that all countries are now at same level, obviously, and getting back to the situation that we had before for, for example, Austria or Switzerland, which were less impacted. So we actually had transformations also of some size in the long run. And also, we need to see the global revenue, the margins and also the day rate, we said we would not modify our prices and we wanted to keep the quality of our peer group, which is well known as quality actor. So obviously, we didn't want to change that. So we will see what happens as for the revenues because as I said, it's different according to the countries, according to the trends and the situation. Still, that COVID-nineteen, we hope to have, I mean, margin recuperation in as it was before. So we're extremely confident, as said, about this stabilization 2020 EBITDA margin will and should come back to its level before COVID-nineteen. Still that EBITDA margin and our guidance, So S2 corresponding of S1, so half year 1, half year 2. Yes, so we have these effect where the margin is higher. But let's say that we have sometimes 2 more working days, right? And also the tax is and real estate taxes are considered for the first half of the year. And then another event will make the difference this year is the accretional rate, which will increase between the first and second half of the year. So the question was, are you at is with your consensus of analysis, which had this margin of EBITDA? Yes, we are confident on this consensus of margin. Now what about the evolution of the daily prices? And I already answered that, but even though these occupational rates in most of the countries and spying is a good example and also other increases in other countries, we have not in any countries seen any decrease of price. And in Spain, once again, since the beginning of this year, the prices have even get higher 4%. So no decrease of price clearly. Now what about real estate and the capitalization rate for our future dwellings and buildings? This is the rate I mean, the data we gave you between 4% 5%. And so for the existing sites, we have again a lot of I mean gains and also with a lower rate rent sometimes. So the objective is to keep that at EBITDA rate, which is the lowest and sometimes will be able to adjust the situation according to the situation from 10% to 15% between 4% and 5 in most of our sites. So that depends 4.2, 4.5 and so on. Still, why do you have 40% or nearly 50% of all the real estate? So if I may, it is really one of our specificity as operator because most of operators in the world asset lines do not have any line as real estate. So we wanted to have as a group nearly 0.5% of the range. So having good localization, good sites for your space means that you will always be there. You'll never move from this vision and from this localization. So this is extremely important also to see what can be done in the future. And at the same time, we'll have, I mean, the opportunity to reinforce that after 15 years. So this gives you, of course, an added value in order to secure cash flows in the long run and also gives you to the group a capital gain, if I may say, because you create an added value and also securing regardless of the crisis. And also with the crisis that we had in 2006, 2008, I can't remember what happened And we really try to work on what happened. So I mean that was a sort of warranty for us to enhance our strategy regardless of the crisis, having a lower run. And this is also extremely key because regardless of the field, I mean, in all the fields, groups, when they have their own real estate, get to better results, better objectives, reinforce also the best share of real estate. Real estate, of course, is evoluting on field side. So you have also the opportunity to have this priority aspect as an added value and also to limit costs in that framework. So I said it is so much important to have real estate. And we never wanted to scale our real estate range. I mean, people were asking that sometimes, but we want to keep it, obviously. Of course, we could sell it, obviously. And we are EUR 1.1000000000 actually on the market. And you need only a few weeks to sell it. But this is not the point. I mean, when people ask what is an obstacle to your development, this is not for sure realistic. It is probably the approach for the future to find employees, to find the right mentality, to give an extra added value, qualified people, qualified staff. And this is, of course, our objective, main goal to work on this opportunity and also to reinforce real estate. Real estate is just the contrary of an obstacle. It is an added value and for us an element of capital gain. Euros 7,500,000 real estate is done by independent experts as well as expert GLLs, which are taking, of course, that side and apply a rate rent considering EBITDA. And then they say, okay, this is the capacity that we have here, so 50%, for example, as a rent. Now another question for real estate. Why is real estate in France mainly so much important? Well, we had an increasing interest growing before COVID-nineteen. We had speeding up strategy during COVID-nineteen just because occupational rates were guaranteeing that we have no risk. So today, when you have an you want to invest on logistics, in health, in offices and so on. But what happened with this COVID-nineteen crisis? The investors who had invested their money in hotels, for example, well, the vacancy rate had closed. So if you take the biggest hotels had 0% occupational rate for a month, while of course, trading activities had difficulties. But here, as for offices as well with the development of smart working, you may know that here again, I mean, offices all over the world is increasing, as I said, as a rate, so vacancy rate. So this is key to So we were to 80% 90% of occupational rates. So the capacity to pay your rent was totally global and in tact. So this is key to understand why investors consider in that typology of assets really a solution and also the transnational, international, global aspect going beyond borders, Europe, Merit Capital. So having this great opportunity to have resilience in assets. So resilience connected to the trends that we have in our market and according to the population. So what about the building costs and the increase of those costs connected to a raw material absence or lack of raw materials, no really delays actually. That would depend according to the countries. We have punctual increases and we think that we have extra increases. We'll see what can be done on these strategies because we are building our own sites. So no special costs for promotion. And on these increases, we have also the opportunity to keep the same strategy. So no global impact on these increases of building sites costs. We have another question about the development, I mean, the weight of development on EBITDA on the rates that we have seen. So we have certain sites which are being empowered, which means the first year when you open, you're not, of course, full of people. So you have several charges, extra charges. So this is a weight that you have on half year, 1st part of half year, EUR126,000,000 of revenues generated by these reopenings or restructuring, loss of EBITDA of €1,000,000 which is extremely important as well. So EBITDA of minus €20,000,000 This means that today, if you have a margin, I mean, outside the COVID cost, now you have the margin of EBITDA, which is around 28 point 5 percent. Another question about the tax cost. How do you consider the evolution of taxes during the 1st semester 2021 is 20% as compared to 28% in the 1st semester 2021. And Sebastien explained it well because of the decrease of CVAA and also the empowerment of international business developments, well, we can see extrapolate that this rate of 23%, which can be developed on the whole year. Then another question, the costs that we had on 2nd semester semester 2021. So 1st semester, €33,000,000 These costs should continue to decrease during 2nd semester and not really to 0% because we had a lot of effect from certain countries. And that should decrease compared to the 1st semester. Semester. Then another question about the evolution of margin on France and the Luxe area for 1st semester. So what is the perspective that we have on this margin? So the reason which explains the decrease of the margin. 1st, simple, it is connected to the nursing homes in Belgium and France, and it is a question of comparison. During the first half year twenty twenty, we had extremely high levels of occupational rates, 75%, and we were extremely optimistic for the 2nd part of the year. So still, the nothing holds. Well, of course, it can depend on the situation, but we started at the end of March April May. So for the first half year twenty 20 for nursing homes, we had an occupational rate average, which is still the same. And this is the contrary for the second part. So we're around the same rate. And as said beforehand, vaccination effect, well, we had restart. We start from very low point and we start April, May, June. And this is the reason why. This is the basis of comparison that we have inside nursing homes. So we are extremely confident. As said, it's especially for Belgium and France to come back to a bigger level, mainly in France at the end of this year. And this corresponds to the pre COVID period of Other questions about the stock exchange and what happens if we want to foresee a program to have specificity on that. So no specific program. We had a lot of plans and actions for new sites, but also acquisitions. A few questions then on the global policy, so CSR policy, do you have a turnover specific one? So we try to have objectives, clear objectives on which we have leverages, so turnovers. And we do use them as training, internal promotion and turnover is also an external actor as for difficulties of recruitment in certain areas, in certain businesses or as said, we had certain kind of situation in the past. So during February to June, the recruitment of nurses was more difficult in France just because nurses were mobilized for the vaccination campaign and also with the national campaign, I mean, in France with rates which were extremely high, represented twice to 3 times their wages. So of course, you have an effect there. So you have external effect on this turnover. Now also another question on CSR. Do we have authorities which will impose new environmental constraints? No is the answer, but this is not the point because our willingness to have sites which are corresponding to the highest environmental standards to have green buildings, to have very clear objectives to reduce carbon emissions and so on and to have all these certifications that we have is not because of authorities, which put constraints. It's just the opportunity to stick to our willingness coming from the group. And it is an inner recommendation, if I may say, which represents the opportunity from the group as a desire, as a willingness to implement this policy, this strategy and also to have a return on these investments. So we know that all the prices of electricity or gas and for example, in certain countries, as in Italy, we have I mean, prices are doubled for energy. So it's obvious that we'll have an increase on that and that will be more and more profitable and will make more savings as well. So I think this is really key. And the last three questions, why don't we invest in alzheimer diseases and specific centers dedicated to that. Well, it is our core business. And I mean, we had several opportunities, which were extremely well known in the world to have developed therapies, which were not medical ones. And this is, of course, extremely important for ozheimer, we have 20% to 40% of the whole degenerative diseases for this development. So that is extremely important to see also for real estate for going forward as well. So dedicated to neurodegenerative patients. So yes, please, for the person who asked these questions, do not hesitate to contact us directly and to ask your question to come and visit our site to see what we can do and see, I mean, on our facilities, what are our programs? Then another question for China. We opened this facility in China, which is extremely a luxurious one. So we had a second project in Shanghai in progress. We are not investing there. I said we are extremely careful with China. It will become one of the biggest market in the future. Anyway, also for China, we need to go there. We have teams this month, which must be there, And it's not possible in this precise moment to travel and to stay there. It's closed. Borders are closed in China. So we had, I mean, lockdowns, which prevented I mean, which prevents us from getting there. So prevent us and anyone from getting there. So we'll see the development and the changes in the future. As for China, it is extremely complex situation there. And we know that a lot of groups went back from China even after positive results. So we'll see what happens. We need to take time and also for sustainability in the future there and results sustainability and results mainly. Now without the evolution of employees, now in Western Europe, as said, the medical health care part, so nurses and staff are taken into consideration. We had an increase in salaries and wages in France. That's, of course, taking part of the welfare state, but we do not see inflation of salaries in that sense. This is a result of our human resources policy, which is, I mean, focusing on internal promotion and internal career development. And lastly, why don't you create a dedicated vehicle where you would have investors, I mean, joining. Well, we didn't use it in the past because we created that at a precise moment when the situation changed. So we did not develop that aspect, but we'll come back to this point from March, from March, from I mean, which kind of the high cost that we want to develop and keep between 45% 55%, maybe, maybe consuming less capital, we'll see that during, as I said, the end of March. Right. So having said that, I think we have answered most of the questions there. If you have other ones, do not hesitate. Thank you for your attention and see you soon in presence. We'll be very happy to meet you in presence because it's now nearly 1 year. We have not seen each other. And really, we are looking forward to having this new opportunity again. So see you soon. Thank you.