M&A Announcement

Oct 27, 2020

Slides

Hello, and welcome to today's call on Teleperformance's agreement to acquire Health Advocates. My name is Courtney, and I'll be your coordinator for today's event. Please note that this conference is being recorded and for the duration of the call, your lines will be on listen only. However, you will have the opportunity to ask questions. Please press star 0 and you will be connected to an operator. And I will now hand you over to your host, Daniel Julian, Chairman and CEO of Talla Performance to begin today's conference. Thank you. Good evening or good morning for the one who are in the US. I'm very, very happy tonight. To present to this group, the brand new Telepecoma signing of El Ablocate. In fact, with El Ablocate, We continue to strengthen our footprint on the US And Care market. Allstate Voci is a highly sophisticated service company that is something like 27,000,000 employees of its 8400 clients to navigate the US Healthcare System. And everybody knows it's a maze So both health advocate help at the administrative level and at the clinical level. And with a mix of health experts, whether in benefits or in the clinical field, nurse's doctor, with strong analytics and with a digital platform elis advocate delivered its services. This makes this company extremely resilient growing steadily and very significantly profitable. Today, Telepere Thomas is already significantly presented on the U. S. Healthcare market either through our core service, You know, we do customer service for many of the large health insurance companies in the U. S. And we also compensate to the enrollment period through inbound acquisition. But we are also involved right now in the health care U. S. Market, thanks to language language solution. Where health care interpretation between patient nurse doctors is our number one activity sector. So now we are climbing 1 more step in the ladder of SK. So why are we so interested by the health care market in the US. First, it's a large and fast growing activity sector. 18% of the US GDP, probably going to 20% in 5 to 7 years from now. 2nd, You will remember that teleperformance mission is to help individuals to find easily solutions to the issues encountered with with the organization. They have both a product or a service scrum. The U. S. Market, the U. S. Healthcare market is so fragmented, so complex so difficult to navigate that 40% of the Americans do not know what their plans cover. And this is specifically true in case of AntOLS, for example. So have Es advocate makes it simpler, easier, more cost effective, for the U. S. Citizens. It fits perfectly T. P. Teleperformance Global Promise and it fits perfectly our strategy to go more into added value services. And with that, I would like to give the floor to Scott Klein the president of the specialized services at Teleperformance and also the CEO of LanguageLine Solution who is going to take under his umbrella health advocate. Scott, please. Thank you, Danielle, and good day to everybody. Could we advance to Slide 4, please? Yes. So, when we get to slide 4, you'll see the beginning of the health advocate business overview. And when you think about health advocate, it's a solution to a real problem. Coping with the complex see of health insurance is not easy, especially here in the United States. Many health plans have very complicated design and they're very challenging to navigate. Health Advocate is a consumer focused health platform that is focused on human touch and is driven by experience for the members, and those members are actually the employees of our client's company. When you think of Health Advocate, the business breaks out into 2 main areas. The first, navigation and advocacy see is the part of the business where we help these members understand their medical conditions, try to answer their questions, try to help them and guide them to find the best care that they can get. And this is a service that has a high level of human touch to it. These are doctors and nurses and other professionals that are helping to dispense this kind of information. Now the other biggest part of the business is what we call health and well-being. And the mission of that specific focus is to help make sure that these members are taking good care of themselves with our amazing data analytics and our proprietary CRM platform we're able to know anytime we're talking to a member what kind of conditions they have. And how we can help them better manage and maintain their lives in the best possible way. In the organization, we have over 700 health advocates that are specific specialists in the US Health Care System. Health Advocate has a large client base, well over 8000 clients, including many Fortune 100 companies. Those 8400 clients of ours include over 27,000,000 individuals that are insured by these client companies. Employers invest in health advocates to help control their medical insurance costs They invest to improve health care outcomes for their employees, and they do all of this because they know that a happy healthy employee is also much more productive. It's a very strong EBITDA business soon, Olivier will walk you through the financials in a bit more, detail but it's the kind of business that we can invest in and grow based on those very strategic investments that we make. This is a business that is not dependent on any single client. Our largest client is, I think, about 3% of the business. And you can see in the lower right hand corner that the top 50 clients make up less than a third of the business. Next page. So a key strategy for us in specialized solutions is a balanced focus on people process and technology. That was another reason why health advocate was so attractive to us because they also have When it comes to people, it's a high touch model. There are people available that can be spoken to professionals, whenever an individual needs it. We also have very sophisticated tools that members can, take advantage of, really from their computer, from their phone, or any other digital device. And these solutions that are available online are actually customized by clients. So to the employee, they see that it is their employer that is reaching out to take good care of them. Now, our platform is patented. It uses predictive analytics to better understand the individuals that are being talked to. And those 2 combined are sort of the secret sauce of health advocate, because it is the sophisticated, tools that we have supported by a cross functional team of real experts, are what makes this business so valuable. We have, doctors, nurses, benefits specialists, claims specialists, behavioral professionals, as well as counselors and coaches. Health advocate are specialists that understand how to navigate the complex health care system and help these individuals do just that. Next slide, please. Our client companies invest in health advocate because of 4 outcomes that they are after. They want better health outcomes for their employees, They wanna help their employees close gaps in care. They wanna increase engagement. And, of course, these employers very much want to control their own costs. So in order to do that, as you can see on the left hand of this slide, we get data from many different sources that help us best understand the needs of all these different individuals. And there in the middle of the slide is just a sampling of some of these great high touch solutions that we provide, to our clients. We help them transparently see pricing. We help, help our members better understand what the best kind of provider that they can get for their specific condition. We also help close gaps in care, and we provide a lot of valuable, detailed analytic reporting based on everything it is that we do. Next slide, please. Case study, a very typical case study of what health advocate does. This particular one is a company that has 15,000 employees. And as a result of that, 37,000 individuals, including the family members of those employees, are covered and supported by health advocate. As you can see, this was a client that found that 15% of their employees were making up 37 percent of their medical expenses as an organization. So this company came to health advocate looking for a way to better care for their employees and save money at 65,000 gaps in care among these 37,000 individuals. As a result of the work that we did, we were able to close 45 percent of those 65,000 gaps and we were able to do so based on our high-tech, high touch model. The result The cost trend for this company went up by 2.6% versus the marketplace that was going up nearly 5%. So the client benefited by seeing an increase that was almost 60% less than what they might have otherwise seen had they not taken this step and made this investment. This organization that meant $5,000,000 of total savings, but that wasn't the end of it. Because of this great initial interaction, the company was able to provide additional solutions to this company. So in 2015, they provided just one solution But in 2020, that was up to 3 different solutions and it resulted in a 26% revenue Tagger over this time horizon. And as you all know, the more solutions that we can offer to our clients, the stickier it makes us. Now I'm going to introduce you a little bit into our acquisition rationale. So if we could advance forward two slides, I wanna share with you why this is such a good strategic fit for Teleperformance and, of course, for specialized services. Think about the impact that LanguageLine Solutions on Teleperformance when that acquisition took place 4 years ago. We look at health advocate and expect to see the same kind of results as we move forward and continue to invest and transform this business. It has a complete platform, It has a focus on operation excellence. It is a subscription based model. So it's very reliable and predictable at to what kind of results we're going to get, but what's most critical to us is the strong potential for future growth. Because that is what we are all about. And with that, I'd like to turn it over to our Chief Financial Officer, Olivier Regatta. Olivier? Thank you, Scott. I'm going to, to try to show you why this acquisition is as not only business rational, but also financial rationale. Can we move to the next slide, please? We are going to enhance value creation for our shoulder And we are exactly in line with our path to achieve our 2022 objectives that have been set up at the last investor meeting we did in California. Time. This operation is accretive. Not only we are going to strengthen the top line with Health Advocate that is going to benefit from a positive momentum in the future within Teleperformance. But we are going to enhance also our EBITA margin by a figure, which is roughly around 30 basis points based on pro form a figure from 2020. And forecasting and we forecast also an accretive impact of around 7% on an EPS, excluding amortization of intangible. This is what we do, forecast on a pro form a basis for 2020 for 3 performance. Well, of course, well, of course, on the right path to achieve our objective about 2022, which is main which is based on 2 things, obviously increase the contribution from the specialized service business that all you know, deliver outstanding figures in term of a growth, but also in term of margin, EBITDA margin And we, we do believe that we are well positioned to achieve our 7,000,000,000 revenue figure target and our EBITDA margin at least 14.5 percent by 2022. That is our objective for for the group. We will publish, next week or next slide please first. We publish next week of sales figure, and I'm not going to speak about those sales figure for Q3 now. Let's next slide, Slide 13. On Slide 13, you will find the profile of elth advocate over the last years, you will see that elth advocate has grown dramatically 2017 to 2019, a CAGR of 9% growth over this year. Arriving to EUR 139,000,000 early dollar sorry, at the end of last year. Made made of, of course, navigation advocacy that is roughly 2 thirds of the business and one sound from the health and well-being. During this period, and this is a certain part of the slide on the right side, you see that the growth of the EBITDA has been even more important. This company has been able to deliver a growth of 19% over these 2 years, arriving to 48,000,000 dollars by 2029 by 2020 by 29, sorry, with the margins that was 34%. So good margin, good figures, good growth. If we move to next slide now on Slide 14, we do believe that here you'll find the figure of EBITDA margin of EBITDA margin for el Sabocate which is 36% on a recurring basis and EBITDA margin of 27% Both of them are going to enlarge and to increase the ratio of teleconference by 30 basis points. And as I mentioned earlier on, this is going to deliver to increase our EPS on a pro form a basis by around 7% starting year 1. This is not absolutely taking account any synergy at that time, any synergy, of course. Of course, but also any synergy of the growth that was mentioned by Scott a minute ago. If we go now to Slide 15, you will find the main characteristic of the transaction. The enterprise value of the company is $690,000,000, This will be financed only through debt, and we do believe that it won't have no impact on our rating. And we do believe that this transaction should be closed in Q1, maybe earlier on, depending on the regulatory approvals that we are looking for in California and in US too. The leverage ratio should be come back to a level of around 2 by the end 2021 next year, which is very, very, acceptable. And the financial profile of El Salvador, with strengthened overall ability to generate strong cash flow. What I just wanted tell, and I mentioned the model case of the 684 financial integration of long end client solution. LLS has been bought 4 years ago. And it was mentioned by Scott at that time. So we need to go. During this period, in 4 years, language line has grown by 25%, which means a significant amount of sales. While the EBITDA has grown by 32%. And we do believe that we could try to achieve such figure for health advocate also. So if I want to summarize today, the forecast is peak. We are buying this company on the multiple that is below. That's what we are buying both by the market clearly. So it is relative in term of value. It's also relative in term of P and L. It's true from the EBITDA figure, but also from the EPS. We just that. And this company has a GSO that is a positive and a net working capital that is positive, sorry, and we are going to improve also or, cash cash flow to EBITDA to cash flow figures. If we move now to Slide 17, just to finish, we do believe this is a win win deal either for Treba performance and for El Salvador. For telecomas, as I told you a minute ago, it's another long edge line solution value creation story with integrated in the specialized service activity. We developed also all of a size of client base in U. S, including many Fortune one other company to serve with all TP products in the future. And we are increasing, as mentioned by Daniel, Julia a minute ago, or presence in this health care sector in U. S, which is promising. For health care, clearly, teleperance offer a possibility of new clients. They get teleperformance, teleperance is expected in people management, security analytics and automation, especially with language line solution. And of course, as mentioned earlier on, there will be the support of the group in term of finance and management and financial support to invest much more in the future and to develop this company. I just want to clean it by the slide 18. That is now visible. We just put on this slide a teleconference point with our mission, vision, business mix and financial and to see how much health advocate is ticking all the bugs. It's true for, as a mission, as mentioned by Daniel a minute ago, helping people to solve their problem on the daily basis. The vision As also mentioned, Schinkloff faster, safer, which is I take and touch. It's exactly what we are doing elsewhere in the company. In the group. We have a business mix, with integrated approach to service from analytics to customer experience. Strong expertise in high potential sector like healthcare. And of course, worldwide expansion in key BPO market, we are looking for U. S. U. S, which is a big and a major market. Finally, in terms of financial, as you understood, this is helping to deliver those figures and accretively. That's what I wanted to tell and to finish and leave and leave now the floor open for question to Mr. Julienne, Mr. McClain and myself. Phil. Thank you. To ask a question on today's question comes in from the line of Sylvia calling from JP Morgan, London. Sylvia, please go ahead. Hi, evening. Thanks for taking the questions. Could I ask question on navigation and advocacy versus health and well-being case. Maybe can you just talk about how the 2 are organized presume you have, quite a large call centers run for the former business. Maybe you can tell us kind of how many employees you have and how that's organized. And then in the for in the second business. Can you actually employ the notes from doctors yourself, or do you have agreements? And maybe if you can touch on profitability differences between the two businesses. And then secondly, around the 7% EPS accretion, it seems like you're assuming relatively healthy kind of profit growth in 2020 2021. Can you maybe talk about the the expectations that you've baked into that? And then finally, the selling process would also quite well flag So how competitive was that? Thank you. I think the questions are mostly for Scott Klein except the financial one for Olivier. So, Scott, if you want to answer the? Yes, please. Yes, of course. Sylvia, thanks for that. For those questions. So, basically the navigation and advocacy business is about 63% of what the company does. And basically navigation and advocacy is what the company was originally based on. And that is the ability to have employees of our clients better understand what their options are for treatment when they know what their condition is, or maybe even to help them find a doctor to initially get a diagnosis. Health And Well-being is a proactive service that we're engaging with our, clients' employees to make sure that they're taking good care of themselves? You know, are they due for a physical? Are they due for some specific, medication? Is there some procedure that they need? And while our team is on the phone, thanks to our very sophisticated analytics and a CRM tool that's, proprietary to this business, we can dispense that kind of advice. Now we have about 700 health advocates that work here in the United States. And those are made up of, call agents, nurses, registered nurses, counselors, and, other professionals to be able to dispense the kind of help that these individuals need. And with that, I'll turn it over to VA to answer the other part of your question. Thank you, Scott. It now. What I can tell you that we followed, the global consensus, that has been, that has been gathered from the analyst which is a little more than EUR 5,500,000,000 for 2020, which is a growth that is in the range of 8% like for like with EBITA margin of 12.6%. I would like to add something. This is Daniel Julien. I would like to add something to the answer. You will notice with, Scott answered that this is not an heavy people business. And this is due to the 4th toll and to the digitalization that has been permitted by the analytics. And so you can see that The revenue per employee is extremely high and is very far from the usual benchmark of, service companies or customer service companies or BPO. Yes, thank you. That's helpful. And in terms of yeah, so it's, it is basically a very different business model from a guest that a lot of the rest of Teleperformance. And sorry, just in terms of profitability, could you comment on the difference between the two segments if they are run separately, the profit level as well? And then sorry, just Olivia on the on the 7%, my point was more around what you expect from health advocate rather than the overall type business, which obviously we could use consensus or our own estimates for that, but just curious whether you're still assuming 20% EBITDA growth into next year? For 2021, I'm not making any forecast today. I'm just taking the figures that they deliver that are going to deliver for 2020, which are set up, which are presented in the present in the which is $140,000,000 and roughly $50,000,000 EBITDA. Great. Thank you very much. Profitability by sector I cannot answer like that. I prefer to give you much more detail later on in that 100 points. Yes. And I don't know if we are going to go to this level of detail as we don't go to this level of detail for our other businesses. So, thank you very much. Maybe we can pass to the next question. Okay. The next question comes in from the line of Edward Stanley calling from Morgan Stanley. Edward, please go ahead. Hi, all. Thank you for taking my questions. I got 3 as well, please. You talk talked to a lot about identifying gaps and closing them and adding value to your customers, but I apologize if I'm being slow, but have you grown this business you talk about one part of it growing faster than the other, but is this by adding more clients? Is it by you know, charging by inbound interactions. What's the price and volume contribution? I'm just trying to understand really how how sustainable, the growth could be, because clearly the track record is very good. The second question, health care is obviously a highly sense political topic in the US. And I'm just wondering, a week before the election, whether you think that has any kind of bearing on the group or, and whether the subscription model of, health advocates means that actually you're agnostic to to anything to do with the politics around it. And finally, I think more for Olivier, you said there are no synergies in the 7% accretion number, LLS has decent health care exposure. The core is 16% health and insurance, I think. So to what extent do you think you can cross sell health advocates with the rest of the core business and specialized services? Thank you. I think that's the answer, for Scott. I am going to keep on myself, the question about the political, the US political environment because I'm going to love to answer to that. That's Scott, if you want to answer to the right? Sure, yes, absolutely. Great questions Edward. As far as where is the growth opportunity, first of all, we have a number of different solutions that we offer in the marketplace. And the opportunity to sell more and more of what we will have to our existing clients provides a significant growth opportunity. But when you think about the number of clients we have, just above 8000 that leaves many, many thousands of, maybe even tens of 1000 of other potential clients that are out there to be able to generate net new revenue of all of these services. And as far as synergies go, we definitely have the opportunity, for our core Teleperformance services to be able to have entree to those over 8000 clients of health advocate. And that's not only for the core business of Teleperformance, but, other parts of our specialized services like, like language line. And of course, the opposite is true as well. The treasure trove of Teleperformance, clients, of course, our natural opportunities for health advocate and now to, get your answer to the politics around the election. I'll turn it back to Danielle. Thank you very much. As I'm half American and half French, I'm going to be less engaged in what I say. I am really convinced. We are really convinced. That whatever is going to be the result of the election, the US health care system is broadinarily resistant to major transformation. And the complexity of the system is going to continue to be weighted whatever is the political agenda, we discover that it's not easy to move the cursor. And yet the subscription model of, health advocate is a great comfort for us, additional comfort for us, but we feel we don't think that the result of the election, in a week from now are going to transform significantly, our business. And the market on which we operate. Basically, the US are not ready for Social social democrat, health care system. Fair enough. I I've, that's very clear on the election point. Thank you. I just have one quick follow-up for Scott. You you talk therefore about growth coming from a combination of new versus existing customers. Can you give us a feel over the last 2 years, you say the business has grown at 9% CAGR. Is that fifty-fifty new versus existing or is there a waiting towards existing versus new customers? Yeah. Edward, I don't have, the specific answer, but there's no question that, the bulk of the growth has come from growth with existing, but, the opportunity for growth from new is, is meaningful as well. I also would like to add something. And I know that Scott Klein is a pretty humble leader But, when Scott Klein takes a company under his umbrella, is a very strong factor to increase the dynamism of a business. Okay. Thank you. Let's move to the next question. Yes. The next question comes in from the line of Anthony Badri calling from HSBC. Please go ahead. Yes. Good morning, everyone. Thank you to take my question. I did not understand the business model Fazan case. It is a subscription model, but what do you mean? Who pay, who pay for the, for the employees? And is it a paper you business model? How does it work? My second question is, what is the competitive landscape of this type of solutions And I have a third question on the deal itself. What drives the disposal of health advocate by Infado Corporation? Was it a competitive process on what makes the choice of teleperformance against the potential other leaders? Thank you. Maybe Scott could answer the 2 first question, and I'm going to keep the political one. Which means, was it a competitive deed on that? Yes. The service is paid for by employers for the benefit of their employees. So there is no cost to the individual employee or their family member for this service. It is paid for by the company. As far as the competition goes, it's very fragmented. There, there are a number of small competitors out there that do, different parts of what, health advocate does, but what makes health advocate so unique is that we can provide the complete 360 degrees of coverage that employers want for their employees so that they no longer have to work with, other providers. So one example of that would be our emergency assistance program, where we offer this service to the employees of our clients that are in trouble. Maybe there's a drug problem, an alcohol problem, an issue with a loved one our EAP system and service is there to support those individuals So that eliminates the need for our clients to have to go and seek out a company that only does employee assistance. So, Danielle, y t p. So, first, the question was, about it to be a competitive leader or not. So you have seen that Apollo had chosen Goldman Sachs And so you can imagine that Goldman Sachs would run-in any case, a competitive bid. Number 1. Number 2, ydb. I would say when we explain health advocate, at least 12%, we see a perfect fit. But perfect fit rarely come just by chance, and or suddenly by the mail. In fact, there is a little bit like in the case of language language solution, a longest story of interest of teleperformance or health care, and I would say Apollo and the Apollo team and the teleperformance team already has the opportunity to dialogue previously. So basically, the fact that there was a maybe a pretty detailed knowledge of the company and of the people. The same tendency of the deal that Teleperformance would bring on the table versus other solutions and third, as usual, our ability to move and decide back. Thank you. Thank you. I have a quick follow-up on the growth of advocate, of health advocate. With respect to an indication of the top line growth of this company in H1s on 20s because you provide some 'nineteen in fact. So what is the trend of growth for the current year? Thank you. This question is more for Olivier. Maybe I can answer. I can answer. The the growth for 20 In fact, the 2 businesses, the 2 major businesses continue to grow as usual, but there is a small marginal business that is linked with vaccination process that, dry up in 20. A little bit like for Felipe performance, we had TLS that dried up. So the growth of this company in 2020 is going to be flat or very slight growth, even if the percentage of EBITDA grow from 34 36%. And, but we are super confident that the growth for 'twenty one is going to be again in their benchmark? Can we, maybe I have 2 last questions before we break up? The next question comes in from the line of Rory Mackenzie calling from UBS. Will you please go ahead. Hi. Rory, is your line muted? Hello. Can you hear me? We can hear you now. Please continue. Great. Thank you. Sorry about that. And yes, it's Rory here. I'm just too pleased on the contract structure. Are these contracts paid at the start of the year or or monthly. And then in your comments, about financials, you talked about aiming to improve working capital. Can you comment on on what you you've seen there? And then secondly, in terms of the current client book, what's the average duration of relationship with the current clients. I appreciate it. It's very diversified. But are there any, you know, big renewals or or a wave of renewals which we should be aware of? You know, I don't know if they lots of clients were onboarded 5 years ago or something. So that'd be helpful to know. Thank you. Sure. I'll handle the pay cycle and the average length and turn it back to Olivier for working capital. The clients pay for the service on a monthly basis, the exact same way they are paying for their health insurance. So, you know, it's on a per employee per month basis. As far as the, your question about the average length of the contracts. I don't have a specific number to give you, but I can tell you that with so many 27,000 plus clients that, and no individual client representing a significant amount of the business. We looked at this very carefully and those renewals are spread out over time. Many of these contracts are long term. Some are shorter term, but, certainly, at least a year in length, most more than that, so that, we didn't we didn't see any risk on, on renewals. Gotcha. You you any kind of a problem. Got you. Just a mistake for one second language line solution with Health Advocate because you said with 27,000 clients, when as I said, Voci, it's only 8400, but it doesn't change what you said. As far as the sorry, as far as the so it's concerned, as you can understand that it's easier to build than the cost it because it's based on employee people. So people are paying quicker in other invoiced and they are paying quicker. That means around 40, 42 days on DSO. We are just a little more for, 20 more for, for telecom and score service. Understood. That's helpful. Thank you. Last question maybe before we break up Okay. The next question comes in from the line of Daniel Holden calling from Credit Suisse. Please go ahead, Daniel. Okay. Thank you. And just just one last one for me, please. I think you mentioned that leverage is going to be back to around two times by the end of FY21. Are we to think of this the same as the TLSLS in Telenet deals as in buy 1, take a year to integrate and think about going again, or is there more near term M and A in the pipeline still? Thank you. I'm not sure to have understood exactly your question. What I what we foresee is that the ability of the group to repay the debt and to generate cash flow will lead to a level of net debt to EBITDA around 2 by 2021 totally acceptable versus so, versus so, metrics versus size and versus so, or, status. I don't know if you answer properly your question. No, no. And I suppose the other so the other part today is, would you consider pushing leverage higher in the near term if there were other M and A opportunities out there? Or The book is always very careful careful on the level of the debt, even if the debt is cheap and you know that very clearly, we are absolutely committed to keep or grade with the and we are not ready to decrease to to stop to get such a level of grade. So clearly, we are not ready to go far beyond. After But Olivier. Yes. Olivier. But they are as we cannot insert the future, Of course. There are many other opportunities for teleperformance if we find the, you know, the gym that is going to add to continue to build our profile. And the level of indebtedness that we will get after this acquisition is really acceptable for the rating agency. And we are going to live with. So clearly, that is the point. Maybe the last question for Mary Lynch. The last question comes in from the line of David Roop calling from Bank of America. David, please go ahead. Yes, good evening gentlemen. Thanks for for your time. Two questions from my side. So you spoke a bit about working capital. Could you perhaps talk about the CapEx intensity of this business, is it higher than, or lower than the existing Teleperformance business? And then sort of leading on onto that, should this deal be accretive to the cash conversion profile of clearly performance? And then my second question is on the debts used to fund this deal, is tenant performance using existing facilities or, issuing sort of subsequent paper with this acquisition? Okay. About the financing, we are seeking to, we have different option, but we might go for probably raise a different bond maybe later on depending on the condition of the market, but we are working on that. That could be an option but we have facilities that help us to, of course, finance the deal during this period before we refinance it on a longer term. That's the first point. About the DSO, the level of CapEx, the level of CapEx is by nature significantly lower than Telepefmas. Today, we are much more in the range of 2.53% of the sales as of today. But it could be Yes, there is something there is something that I would like to explain because it it may seem strange, and it's counterintuitive. But for my core business because it's mostly voice and synchronic as a super high level of CapEx versus digital solutions that may be acting cronic. That's it. Thank you, Joel. I think we are going to stop there. Of course, the team here in Paris, with myself, Queen and Julian are able to take call and your questions that you may have. And we are, of course, ready to answer all the questions. You continue to to write your paper tomorrow. Thank you to all. Thank you for joining today's conference. You may now disconnect your handset. House, please stay connected and await further instruction.