Eurazeo first quarter 2022 conference call. I now hand over to Mr. William Kadouch-Chassaing, General Manager of Finance and Strategy, and member of Eurazeo's Executive Board. Sir, please go ahead.
Thank you very much. Good morning to all. Thanks for taking the time to connect to this call. It's a pleasure to present to you Eurazeo results, and, particularly for me, as it is for the first time, I will present Eurazeo's results. I joined the company, and a great team of entrepreneurs two months and a half ago already, in order to participate to the exciting ambition of growth and transformation, of the company under the stewardship of Virginie Morgon. The results we publish today are, in a sense, a very good illustration of the dynamic in place with Eurazeo. We publish this morning very good figures for Q1 on all fronts. Fundraising, AUM, management fees, asset rotation, and the performance of the portfolio company.
Let me take you through all these points, starting with the dynamic of growth, of the company. Eurazeo continues to grow at a high pace, as you have seen, in the press release, both as an asset manager and as an investment company. The asset management activities, as I mentioned, continues its development at a robust pace. AUM are up 41% year-on-year, at EUR 32.2 billion end of March. Fundraising is strong in the first quarter. Over the last 12 months, it's been in total amounting to EUR 5.3 billion. For the quarter solely, we raised EUR 876 million, which is up 12% relative to the first quarter of last year.
We continue to see strong demand for our funds across the board, with good flows in venture, growth, buyouts, and private debt, in particular for this quarter. On top, and as you know, this is one of the key strengths of the company, we continue to collect money on the retail side very dynamically, which further strengthens our leadership in wealth management. We raised EUR 100 million in the quarter of retail money, and we are about to launch new innovative funds very shortly. Management fees are up 34%, adjusted for currency and parameter effects, with fees from third-party up 45%, which obviously echoes what I said about the dynamics, the dynamism in terms of committed money collection, but also the strong fundraising that we had in the past quarters.
That's for the asset manager, which continues again to grow at a high pace. Let me turn to the investment company or the balance sheet, which is also supported by a solid momentum of growth. The economic revenue of the consolidated portfolio is up 31% in the first quarter 2022 compared to the same period of last year at constant currency and Eurazeo parameter. The growth and this is a very important point, is very broad-based in the portfolio across sectors, across sizes of companies across strategies, which echoes or underpins the strengths of Eurazeo positioning on segments with structural growth outlook. Obviously, the travel and leisure companies continued to rebound strongly in the quarter. Outside of travel and leisure, the revenue growth amounts to 17%.
Again, as I mentioned, this is very broad-based across companies and strategies. In addition to the consolidated portfolio, looking at the growth portfolio, the digital assets we own, which are not consolidated, we continue to enjoy very strong momentum, benefiting from a digital native positioning. Revenues are up another 50% in Q1 2022 relative to the same period of last year. The good performance of the portfolios of the portfolio companies in the first quarter reflects obviously the relevance of Eurazeo's sector choice. We all have seen the volatile economic environment and uncertain environment we've been going through in the first quarter.
The group, however, benefit including in such a context from a diversified, high-quality portfolio position in structurally growing segments such as healthcare, business services, digital with strong consumer brands, and the energy transition. Second point I'd like to stress is the fact that the asset rotation is satisfactory and goes according to plan. We deployed EUR 1.7 billion in the first quarter of this year. Of which EUR 600 million from our balance sheet. This means EUR 1.2 billion in private equity, focusing again on companies where we think there is structural growth in healthcare, case in point, Cranial, for example. In the US, business services, digital enabled business services such as DiliTrust, which is a legal tech leader in France and Europe.
Energy transition, we just completed an investment in Ikaros photovoltaic space. We also invested EUR 500 million in private debt, which continues to be very well sustained and is a sector where we benefit from being in an environment of floating rate. Meaning, we have a natural hedge against what's happening in the interest rate environment these days. We continue to benefit from a very strong balance sheet and position for further investment with EUR 4.7 billion dry powder. A net pro forma position, treasury position in excess of EUR 200 million. We obviously continue to have EUR 1.5 billion of committed line by our partnership banks, which is a midterm commitment. Very importantly, our exit program is executed as planned.
We completed or signed roughly EUR 1.2 billion equivalent in euro terms of deals year to date, which is EUR 400 million realization in the first quarter on top of the deals we had announced already, which, you know, Orolia and Reden Solar, for a total amount again of EUR 1.2 billion. I'd like to stress that all these exits are performed in good terms and sometimes, as we already mentioned in the first quarter, very good terms. Third point, we continue to progress in our non-financial ambitions, our ESG commitment. As you know, Eurazeo aim for leadership in ESG with two major commitments, two key pillars, environment and inclusion. This quarter, we made particular progress, further progress on the environment front with two key elements I'd like to underline.
Our carbon footprint target for the group, core Eurazeo Group, is validated or has been validated by the Science Based Targets initiative. We aim for a decline in carbon impact of 55% through 2033, and 2030 versus 2017. This is what this trajectory represented and submitted to the Science Based Targets initiative is about. Beyond Eurazeo, as a company, including the portfolio companies, we aim for carbon neutrality through 2040. That's also why, and this is the second point, we have deployed further the decarbonization plan at portfolio level on top of what I just mentioned for Eurazeo Group. Fourth point, we aim for an attractive return to shareholders.
You know that we have already decided to pay a EUR 3 per share dividend, with the coupon date on the 4th of May, after the General Assembly has validated it. Today, we announce on top the share buyback program of EUR 100 million. The acquired shares are to be canceled. We believe this is a relevant step towards improving the return to shareholders, particularly in the context of the discount to our net asset value. We want to show the confidence we have in both the quality of our portfolio and the fundamental valuation of our assets and the strength of our balance sheet.
To sum up, in the first quarter, I'd say that in an uncertain environment, we've shown the capacity of Eurazeo to grow on all cylinders and execute on the strategy, both financial and non-financial. Going forward, while being obviously vigilant and on the potential impact of the environment on the future performance, we remain confident with the outlook. As you have seen in the press release, we confirm our ambition to reach EUR 60 billion AUM in the midterm, combined with an improving operating leverage. I'll stop there and open the floor to questions. Thank you for your attention.
Ladies and gentlemen, if you wish to ask a question, you may press zero-one on your telephone keypad. It's zero-one on your telephone keypad. First question is from Mr. Geoffroy Michalet from Oddo BHF. Please go ahead.
Hi, gentlemen. Thank you for taking my question, and congratulations for the good set of figures and well-oriented KPI. Two questions for me. First one on the private equity strategy. We've seen some fundraising that were maybe smaller than in the past or at, let's say, slower or slowing pace. Could you update us on the trend that you see in your portfolio and on the market? Second question, could you remind us the impact that rising interest rates may have on your portfolio? Thank you.
Thank you, Geoffroy, for your questions, and happy to meet you again. On the first, I mean, it's clear that the buying environment for growth companies that we've seen with high interest by investors in the past years and obviously high valuation, particularly in the U.S., has somewhat changed in the past quarters, particularly in the U.S., let me stress, and more, it's more a U.S. topic if I'm thinking about multiples than the European topic, but it is clear that there's been some adjustments. I wouldn't say, however, that we see less appetite for growth companies these days. There is certainly more sensitivity for the quality of the assets we talk to. i.e., people are looking more at leaders relative to contenders.
There is certainly more price sensitivity. That's a clear factor, but there continues to be a strong interest for growth funds because the fundamentals that drive these companies remain very strong. The digitalization of the world, particularly in Europe on the continent. The public money that is there to support the nascent European growth and venture environment, you remember the announcement on Scale-up Europe, for example, remains a key fact. You see that some of our competitors also are quite ambitious in terms of developing their growth strategy. The point that is very important as far as Eurazeo is concerned, I think, is to come back to the fundamentals of the growth company. Again, 50%, more than 50% growth in the revenues.
That shows that beyond what, the moment we may be at in terms of perception of, the pricing for these assets, the fundamental dynamics that was alluded to remains very strong. The assets we've invest into continues to perform, in fact, not only very well, but also very much according to plan. You have a question on interest rates. We're obviously not immune to the macro environment with GDP, inflation, interest rate. Interest rate, in my view, can affect a company like us, I mean, I would say it's broad-based comment that we do, not specific to Eurazeo, in three ways. It can affect the relative, theoretically, attractiveness of the alternative asset class. It can affect the valuation of portfolio companies and the ability to exit in good price.
It can affect the performance through the increased cost of funding. In that context, I do think that we have a number of key mitigants. I mean, generally speaking, when you look at interest rate, I mean, let's start with Europe, with the OAT, for example, at 1.4%, and inflation, which is going towards 6%. I mean, it's easy to see that the performance that private equity can deliver not only is less volatile, but will remain much more attractive than any interest rate-related performance you can achieve. We continue to think and to see, in fact, more allocation towards our sector.
In terms of return and the exit price, it is very important to remember that the best correlation is in the asset price, particularly on the equity side, is to be seen with real interest rates. We continue to operate, particularly in Europe, in negative interest rate environment, so I'm not implying that there is no impact. There is an impact, but this is obviously a key mitigant. As far as we are concerned, again, this is a much more specific comment on the cost of debt. Remember that we tend to be rather cautious in terms of using leverage in buyouts. Beyond buyouts, we have also many strategies where we don't use leverage. Simply put, I mentioned private debt with a floating rate, but venture and even Growth, which is usually focused on high-growth company, doesn't use much leverage.
Thank you very much.
Thank you, sir. Next question is from Mr. Patrick Jousseaume from Société Générale. Please go ahead.
Hello, good morning. Good morning.
Patrick. Very well, Patrick.
Okay.
Take the opportunity to say hello to you as an ex-colleague.
Hello, yes, absolutely. Hello, yeah. Quick question on the NAV. If I'm not wrong, the NAV was EUR 119 as of 31st March, but it's essentially based on the figures at end of December. Could you provide us with an estimated NAV as of today, including dividend payment and the impact of the drop in equity markets, please?
As you know, and you have the page in the press release, our NAV is not updated every quarter. However, we provide you with the adjustments we make in a quarter. The adjustments pertain to a few elements. One is related to the perimeter when we make acquisition, but usually will be offset with the treasury position, which is to your point of the company, so that neutralize it. You have another element obviously, which is the realized prices, which are to the extent that they are above or below NAV valuation. I mean, we correct the NAV for that.
The main impact in the first quarter, obviously, relative to the end of the year is what we had already mentioned in Q4, which is the gain of Reden above the value of Reden in the NAV, I mean, to put it short. What you have here, there is not much adjustment you would have to make on top of that, except maybe for the fact that in this first quarter figures, you don't have, obviously, the cash out pertaining to the dividend and obviously not the cash out pertaining to the share buyback.
If I come back not beyond the NAV to the treasury position, as I said, it pro forma, if you take the 31st of March and pro forma the announced sale of Reden and Orolia. Also pro forma these cash out events I just mentioned, i.e., on the one hand, the dividend, on the other hand, the share buyback, you would end up with a net positive treasury position of about EUR 200 million.
Yeah. My question was more on the fact that when you release the full year results, you provided an estimate of the net asset value per share as of the day the full year results were released because between I think it was on 10th March or something like that, there was some drop in equity market. I think there was a difference of something like EUR 6-7 between the two. I was just wondering because essentially the NAV that you published this morning is the one as of 31st December, plus minus some adjustments. Do you have a view, an assessment, an estimate on what should we consider as a negative impact on the equity market of net asset value since end of 2021?
Well, thanks, Patrick, for precise the question. Again, as I said, we don't revalue NAV every quarter. Yet it's true that you remember well that when we issued the full quarter, I mean the full year results, we mentioned, with Philippe, that should we update at the time of the publication the NAV just using the spot multiples, which by the way is not the methodology and the customary methodology. The impact on the NAV would be roughly 6-8% off, so a tad lower relative to the EUR 117.8 at the time we had published. Now, you know, we are adjusted for the factors I mentioned before, closer to EUR 119. We've obviously have a view.
We do run our numbers quite frequently. Using exactly the same methodology, which again is not the customary methodology to value a portfolio, but you know, just to make it comparable, the 6%-8% would be roughly 10% today. Remember that we had on top of the cautious approach to NAV that you're used to, as Philippe and Pierre has the opportunity to mention to you over the past years. On top of it, we had done a few additional adjustments. For example, on the Growth segment, we had already taken a haircut of about EUR 270 million on the valuation. Obviously, today, most of these such cuts would have been absorbed, but taking all in consideration, the 6%-8% will become 10%.
Okay.
In that sense, we continue to see that there is a strong upside, obviously, in the valuation of the portfolio, despite the adjustment of the multiple.
119 minus 10%, minus EUR 3 for the dividend.
More or less.
Okay. Very clear. Thank you very much, William Kadouch-Chassaing.
Thank you. Next question is from Mr. Alexandre Gérard from CIC. Please go ahead.
Yes. Good morning, William. Two questions on my side, if I may. This morning, you reiterated your ambitions for that EUR 60 billion of AUM in five to seven years' time. Can we have a more precise idea of what you target for 2022? And also, for example, on the corporate debt category, which seems to be less in favor currently. Can we have some of your good feel on whether that category is gonna be in line with what you have in mind, knowing that you have a program which is currently marketed by your teams. Second question, can we expect an OPEX coverage ratio for 2020-2022, at or above 100%, knowing that last year, if I remember well, you were close to that?
Alexandre, sorry to cut you off, but would you mind repeating the second part or the second question? Because we have trouble hearing you. Maybe put your mic a bit farther from your.
Can you hear me well, better?
A little better. Go ahead.
Hello. No, so my first question was related to your target in terms of in 2022 on the fundraising side. Do you expect to raise at least EUR 5 billion like last year? Also on the corporate debt category, which seems to be less in favor in 2022, can we also have an update, knowing that you have been, if I remember well, one of your funds, which is being marketed currently. The second question, the core question was on the OPEX coverage ratio. Can we target a ratio above 100% in 2022, knowing that last year you were close to that threshold? Thank you.
Let me start. Thank you very much, Alexandre. Sorry for having you repeating your questions, but it was more, there was background noise. On the....we don't provide a target for fundraising on a yearly basis, because obviously, I mean, it also depends on the sequencing of the marketing of our funds. It's not necessarily linear. I think you have heard that for some time now from Philippe and team. The reason why we'd rather be cautious. Having said that, as I mentioned, we have a dynamic collection in the first quarter. You see that we are up 12% year-on-year in the first quarter in terms of fundraising.
So far we obviously on track to continue in the perspective of a good fundraising year. Also in the AUM globally, there are other impacts, other important factors, which is particularly with regards to the balance sheet, as you know well, with the NAV we mentioned before that we continue to have a very strong growth in the companies. Despite the adjustment in the multiples, obviously, that should translate in some expansion. That's for the year. Allow me to be cautious. We don't like to give each and every year a target specifically on fundraising. All I can say today is that things are going on track with plans. The corporate debt, let me make sure I understand.
Is it, I think it was related to the category of the asset class. There I would say we continue to have dynamic fundraising in debt. We continue to have a strong deployment for our funds. This is a category that remains very dynamic. Again, this is floating rate, so there is natural hedge. I mentioned this is usually hold to maturity, so you don't have on top of what I mentioned before, the same mark to market issue that you may have on some portfolios of debt. The risk profile, which is a bit your question, is very well managed.
I mean, I was surprised and positively surprised to see coming from a bank that the cost of risk of the portfolio is effectively rather low and somewhat lower than what I would have expected relative to the categories. That's an area that we continue to be content with. On the coverage ratio of cost. I mean, our guidance is not so much on coverage ratio of cost. Our guidance is more, as you know, on FRE margin. We had close to a 31% margin in 2021. 30, sorry, margin in 2031.
We aim for operating leverage in sync with the scaling up of our funds and some efficiency, obviously, that we are very focused on. In mid-term, 35%-40% margin. We already cover all the costs and, you know, that obviously something that we are also focused on. You know, I think the best metric to look at is the free margin.
Thank you, sir. Next question is from Mr. David Cerdan from Kepler Cheuvreux. Please go ahead.
Yeah, good morning. Most of my question has been answered. Thank you. But I have a few for you. The first one is regarding your staff. At which extent have you expanded your staff dedicated to investment? First question. Second question is regarding your relative performance versus your peers. Can we have a nice view on the performance of your funds compared to the competitors? And the last one, do you think that investment should be more and more oriented towards some debt investment? Do you expect private debt funds to be in a better shape than the private equity? Thank you.
Thank you. Well, starting with the staff. As you know, we ended up the year with roughly 450 people working for the company. As it has been highlighted already in the past quarters, or maybe the past two years even, Eurazeo is clearly on the investment mode across the board, investment teams, and particularly on the front side, the investment teams, but also the sales and marketing teams and the client services teams. This is where if I look at particularly 2021, and then, you know, from 2018, 2019 - 2021, we had the highest increase net growth rates or something like 15% in the past years. We continue to grow some of these teams.
Obviously, we're also mindful of the efficiency of each and every team. We look at KPI across the board. We are clearly a growth company and we have opportunities to save. You have seen that we continue to increase the amount of money we do invest. We continue to strengthen our capacity to exit and collect money. Obviously, we have the strategy of being a relevant platform, which is relevant both for the LPs and also for the target companies we may acquire, which goes with some investment in people. That is all very consistent with the ambition of improving operating leverage all the time. That's for your first question. On the comparison with peers.
I mean, this is, I'm not a great fan of using a quarterly or whatever is a results publication to talk about peers. What I can say is that, you know, across the metrics, depending upon what you look at, performance of the funds where we operate, collection of money with LPs. When it is available, of course, not available with everyone, because not everyone has an IC of the size of ours, we fare well relative to our peers. There's obviously a connection between the elements, because you don't collect money if your performance is not at least in line with the performance of peers. On your comment on debt.
Listen, we continue to expand the debt segment because we have very good teams, low, good yield for investors, low cost of risk, as I mentioned. Does it mean that we want to rebalance the portfolio? We continue to be very much geared towards the areas where we have an historical leadership, buyouts, growth, venture. Clearly, the whole strategy of diversification that has started in the past years means that we really continue to pursue the growth of the debt segment, but as well as the infrastructure and real asset segment as cash improves.
If I may, the last question is regarding your appetite for asset management companies. Where is your pipeline for new asset management company acquisition?
I will make a fairly generic statement for which I apologize in advance, because we don't comment specifically on M&A. As it's been mentioned, the strategy is to make of Eurazeo a strong leader in the alternative asset management class. You know, we have strong growth organically, which is also tied to you know, some investments we have to make organically. I mentioned before to your question. We are happy to look at acquisitions. I won't comment on a pipeline, but we obviously have identified areas where it would be interesting for us to grow.
Okay. Roughly, my question was, have you bid on some acquisition in asset management over year to date?
I won't comment on M&A as you,
Exactly.
For those who have known me at Société Générale, I did always the same answer to the same question. I think it's very incautious for a company to comment on M&A. As we mentioned, and Philippe mentioned it very frequently, M&A is part of our strategy. You should expect that we look at projects on a regular basis.
Okay. Thank you.
Thank you.
Thank you, sir. Next question is from Mr. Mourad Lahmidi from BNP Paribas. Please go ahead.
Yes. Good morning, gentlemen. Thanks for taking my questions. The first one would be on fundraising activity, especially towards the end of the quarter and since the beginning of Q2. Have you seen any delay, slowdown, or pause in client due diligence due to the macroeconomic conditions? Or maybe nothing has changed? First question. Second question on exits and realizations, especially from the balance sheet. The number is quite small after a very strong year. Is it due to market conditions or to timing of sale? Or should we expect exits to slow down, which would be relative to the macroeconomic context? Or are you expecting an average year in terms of exits from the portfolio, especially from the balance sheet? Finally, on deployments.
Deployments were quite good in Q1. Have you seen valuation levels going down on those deployments? Or is it still similar to the past 12 months? Thank you.
Well, thank you. On fundraising, I mean, it's clear that we're in an environment where people are generally speaking more cautious across the board, whatever the asset class. On top of it, you know, the allocation of course continues to favor the private markets. People, you know, that's a sort of technical factor. Having seen the decrease in valuation of their public equity portfolios or debt portfolio in some cases, I mean, we also see that mechanically the allocation to private markets has already increased.
However, as you may know, I'm sure you know, the expected fundraising for 2022 globally continues to be higher than a record year such as 2021, because there is an expectation that it could maybe close to $1 trillion, which is again up relative to 2021. We continue to see this strong appetite. I wouldn't say there is a pause or people unwilling to look at fundraising. As I mentioned, the first quarter is up 12% relative to last year. I mean, clearly, people look to do their job quite seriously. They do it normally, and they would do it even more so in the context looking at performance.
Resilience, I think one important topic is obviously the resilience of performance that you can deliver. In that respect, I would say that Eurazeo is rather well-positioned given the history of its capacity on the investments. On the exit, I wouldn't say that we have a low exit rate so far, because you have to add again to the 400 realization of the quarter, the already announced transaction, which are soon to be closed for an amount of about EUR 750 million.
What is true, I think we had mentioned it in the context of the full-year results, that we do expect that 2022 will be back to normal in terms of, you know, percentage of the balance sheet. In terms of exit, you know, it was more than 30%, and the normal is statistically and that we've achieved is about 20% per year. If you take this 20% of the NAV ex asset management, you see that we have already completed or announced for the equivalent of 50%, and in good terms. Yes, the context is the context.
I wouldn't say that people are lot more demanding in terms of price, which is tied to your last question, in terms of deployment. We are also more demanding in terms of asset quality as well as in terms of pricing. We never did things crazy. This is not really the habit of this crew and we are all the more cautious in the context. When you have good assets, both on the exit side and on the buy side, they will remain good assets.
Again, to my point on the portfolio performance in the first quarter, good assets. They may see that the multiples are down in the context, but continue to grow organically and expand according to budget. That's the context where we are in. I mean, it would be stupid to say that there is no impact of the context, but in that context, even the portfolio we have, we continue to deploy according to plan. Exit will not be lower because of the context, it's because we had decided it, that it would be a slower year.
Okay, I have a follow-up one. You mentioned earlier that you've made a haircut on Eurazeo Growth. I didn't catch the number. Can you specify for which period did you make the haircut? Thank you.
Yeah, Mourad. What we've said for the full year, if you remember, is that in the calculation, i.e., the last time NAV was published, for assets which were marked to market through the P&L, the more volatile one, so to speak, which you know effectively largely pertain to the Growth area. In the valuation, there was a decision to factor a haircut on top of using cautious valuation approach. The number was EUR 270 million, or EUR 267 to be more precise. We had already in the NAV at the end of the year taken that cushion on top of a cautious approach to the valuation.
This is why I make the comment that, when I see, come back to the growth portfolio where, there's clearly some questioning in the market as to what the tech company is worth today. I see two things. One is this growth portfolio performed very well, so there will be an expansion in the core numbers, fundamentals. On top of that, in terms of multiples, we've already taken some cautiousness in the approach. That was already Q4.
That represents almost 15% haircut on the balance sheet exposure for Eurazeo Growth. Is that right?
If you just stick to growth, I would say it's about 17% of the portfolio. No, it's more than 20%. More than 15%, closer to 20%, equivalent haircut, so.
Okay. Thank you very much.
Thank you, sir. Next question is from Mr. Oliver Carruthers from Goldman Sachs. Sir, please go ahead.
Morning. Oliver Carruthers here from Goldman Sachs. Thank you, William and team for the presentation and results this morning. Most of my questions have been answered, but just a kind of quick one on the buyback. You've given the, I guess, the rationale for doing it, but, you know, what was the logic behind the EUR 100 million, what was behind the size? Could you just confirm any expected timings of the buyback as well? That'd be great. Thank you.
Thank you, Oliver, for that question. EUR 100 million, you know, suits us because we want to balance return to shareholders. Also, we have the conviction that the company today is underrated relative to its fundamental value. The immediate value creation, I mean, to the rationale you mentioned. Also we have a strong balance sheet, so this is a testimony to our confidence in the strength of the company. We want to balance all this with the fact that we want to maintain good liquidity of the stock, which obviously is an important factor for investors. I'm sure you as a sell side analyst consider it's an important factor.
We do, you know, if I take the average price of the past days with that, we buy back around roughly 2% of the share count, even including only the taking into consideration only the free float. It will have a limited impact on the liquidity of the stock based on volume. That's been the balance we wanted to take. On top of it, as you know, we are growth company. We offer already a stable growing dividend. It's been the case for 15 years.
If you add up the EUR 3 of dividend to this EUR 100 million, i.e., EUR 230 million to this EUR 100 million of share buyback, you end up with a yield which very attractive based on the stock price today. There is a limit, you know, to how attractive you want to be as a growth company, obviously. To your point, I mean, that's given the volumes and, you know, the approach we'll take to the buyback, which is obviously to do that in a very smooth manner, not impacting too significantly either volumes or price obviously. You know, if you take that level of caution, we'll be done most likely before the end of the year.
Okay. Thank you.
Thank you, sir. We have no other questions. Ladies and gentlemen, I would like to remind you that if you wish to ask one, you may press zero one on your telephone keypad. Zero one on your telephone keypad. We have no other questions. Back to you for the conclusion.
Well, thank you very much for attending this call. Again, this is a good quarter as you've seen that makes us confident in the outlook for the company, being mindful of the context as we discussed. Was a pleasure for me to present this results for the first time to you, and I'm looking forward to be talking to you in the next days and weeks.
Ladies and gentlemen, this concludes the conference call. Thank you all for your participation. You may now disconnect.