Good afternoon, ladies and gentlemen. I would like to welcome you all to Sun Hung Kai Properties FY 2018 interim results analyst briefing. I understand all of you are very busy because today you have to cover two major Hong Kong company properties the same day. Again, thank you very much for coming to our analyst briefing. As in the past, in the next 20 to 25 minutes, I will walk you through the key aspects about the interim results as well as the business update. Then I shall open the floor for the Q&A section. Before going through the results, I would like to highlight some key messages to all of you as follows. First of all, we are confident in achieving full-year contract sales targets. For your information, since July 2017, our total contract sales in Hong Kong and mainland China has already reached HKD 35 billion.
Secondly, we have set a medium-term target of HKD 40 billion annual property sales in Hong Kong. In terms of land banking, we continue to seek opportunities to replenish our land bank through various channels, including farmland conversion, and our existing land bank is sufficient to meet our development needs in the next five to six years. Besides, we have a steadily growing rental income stream, which is driven by expanding rental portfolio and a number of asset enhancement initiatives. Moreover, backed by our strong balance sheet and prudent financial management, we are well-positioned to seek new opportunities and sustain our business development in the future. Last but not least, we are committed to creating shareholder value, and we intend to increase dividends when earnings are higher.
Let's talk about the financial highlights of the results, and please note that all figures are in Hong Kong dollars unless stated otherwise. For the six months ending December 30 2017, the group achieved underlying net profits of around HKD 19.9 billion, representing a year-on-year growth of 37%. The growth was mainly due to the fact that most of the current financial year development projects in Hong Kong were completed in this first half. Underlying earnings per share grew by 37% to HKD 6.90, while reported earnings per share rose by 60% to HKD 11.40.
On dividends, the board has declared an interim dividend of HKD 1.20 per share, representing a year-on-year increase of 9%. This table shows the profit breakdown by segment. Property development profits grew by 67% to HKD 13.9 billion. This was mainly due to fully loaded completion in Hong Kong during the period under review.
On the other hand, property development profits from mainland China dropped 26% to HKD 1.2 billion due to lower recognized property sales on less GFA booked. Rental business continued to deliver healthy performance with net rental income up by 7% year-on-year to HKD 8.9 billion. In Hong Kong, net rental income recorded year-on-year growth of 5%, while mainland China achieved a much higher growth of 21%. Including profit from hotel and non-property businesses, the total operating profits grew by 32% to HKD 25.9 billion. Our financial position remains very strong.
As at the end of December 2017, net gearing ratio was 8.5%, while interest coverage stayed high at over 24x . Shareholders' funds and net book value per share increased to around HKD 527 billion and HKD 182, respectively. Net debt increased to HKD 44.7 billion. The increase was mainly due to the land premium paid for the land use conversion of the Shap Sze Heung project.
Let's move on to the performance of our properties business in Hong Kong. As at the end of December 2017, the group's total land bank in Hong Kong was over 55 million square feet of GFA, including around 31 million square feet of completed investment properties, over 21 million square feet of properties under development, and 2.6 million square feet of completed properties planning for sale. Majority of the completed investment properties are shopping centers and offices, and 85% of properties under development, or around 18 million square feet of GFA, are residential properties for sale. On top of that, the group also holds about 29 million square feet of agricultural land in terms of site area. During the period under review, we added three projects or nearly 5.3 million square feet of GFA through land use conversion, government tender, and old building redevelopment.
Details of these projects are shown in this table. In addition, the group subsidiary, SmarTone, also acquired an industrial site in Tsuen Wan with about 200,000 sq ft of GFA for its business expansion. We shall continue to actively seek opportunities for land acquisition to enable a persistently high level of annual project completion in the long run. Of course, we shall make considerable efforts to convert our agricultural lands into buildable lands. The latest example of the land conversion is the Shap Sze Heung project.
This mega project is located around a 10- minute drive to MTR Wu Kai Sha station and will provide around 4.8 million square feet of GFA. This large-scale project will be developed in phases, and the development cycle will be relatively long as it involves preliminary works, including road widening and associated infrastructure works. Moving on to the property development business in Hong Kong.
For the period under review, the group recognized HKD 31.8 billion property sales and generated HKD 12.7 billion development profits in Hong Kong. The strong profit growth was mainly due to the front-loaded completion in this period, encouraging sales response of our projects such as Cullinan West and better development margins. As at the end of December 2017, the group had contracted property sales of over HKD 17 billion not yet recognized. On completion, the group completed five projects in Hong Kong, comprising about 3.5 million square feet of attributable GFA, of which nearly 2.5 million square feet are residential.
The remainders are non-residential premises being kept for long-term investment, including Hotel VIC in North Point, V Walk at MTR Nam Cheong station, and Two Harbour Square in Kwun Tong. In the second half of this financial year, around 200,000 sq ft of attributable GFA of residential premises are scheduled for completion.
With regard to contract sales during the period under review, the group has achieved HKD 26.5 billion contracted sales. Major completed buildings are shown in this table. Since January 2018, additional HKD 5.7 billion contracted sales were made. This map shows the upcoming launches over the next 10 months. The purple boxes represent new projects to put on the market. On top of these new projects, new units at Victoria Harbour in North Point, Babington Hill in Mid-Level West, and Cullinan West II in West Kowloon will be put on market at a gradual pace. Now let's turn to our Hong Kong rental portfolio. Our rental portfolio continued to deliver healthy performance during the period, with total gross rental income increasing by 4% year-on-year to HKD 9 billion. We continue to see overall positive rental reversion and high occupancy.
Gross rental income from retail portfolio increased by 5% year-on-year to HKD 4.8 billion, representing 54% of total gross rental income in Hong Kong. For the same period, our office portfolio recorded gross rental income of almost HKD 3 billion, up around 3% year-on-year, and representing 33% of the total. Covering around 12 million square feet of retail space, the group's retail portfolio continued to enjoy positive rental reversion with occupancy sustained at high levels during the period. Our consistent and proactive approach in managing shopping malls has enabled us to achieve better retail sales performance as compared to the market. Apart from the ongoing tenant mix and trade mix refinements, the group has also leveraged new technology to enhance the shopping experience for our customers. The recent launch of SHKP Malls mobile app is a prime example.
This new app will integrate the group's 26 major malls on a single easy-to-use platform, providing information on dining, parking, shopping, promotions, as well as integrated membership program to enhance customers' overall shopping experience. We continue to take on asset enhancement initiatives so as to bolster the competitiveness of our retail portfolio. Metroplaza in Kwai Fong has been given a facelift with a reconfigured layout and more new brands. The new outdoor thematic piazza offering new features has become a photo hotspot. Besides, a new cinema in New Town Plaza Phase I in Sha Tin will be opened in summer this year, while the renovation of Phase III is progressing as scheduled. Looking forward, two major malls in Hong Kong will open in the medium term, namely V Walk at MTR Nam Cheong station and Harbour North in North Point.
V Walk is expected to open in mid-2019, and the first phase of Harbour North is scheduled for opening in late this year. Let's turn to our office portfolio in Hong Kong. During the period, the group's 10 million square feet office portfolio continued to deliver solid performance with healthy rental reversion and high occupancy. The leasing of the newly completed joint venture office building, Two Harbour Square in Kwun Tong, is progressing well, with tenants moving in during the first half this year. The 98 How Ming Street, which is currently under planning and design, is expected to create synergy with our Millennium City in Kwun Tong. This concludes my presentation on the property business in Hong Kong. Now let's move on to the property business on the mainland.
As at the end of December 2017, the group held a total land bank of around 65 million square feet of attributable GFA in mainland China. Of which nearly 13 million square feet was completed investment properties, and then around 51 million square feet was properties under development. Majority of the completed investment properties were shopping centers and offices, and around 60% of properties under development is residential for sale. During the period, the group recognized HKD 2.8 billion property sales on the mainland, down 59% year-on-year. The drop was mainly due to much lower GFA booked during the period. However, development margin was much higher than last year, mitigating the decrease in development profits. Major contributors include several residential and commercial projects in Shanghai, Guangzhou, and Foshan.
During the period, we completed about 1.6 million square feet of attributable GFA. HKD 6.2 billion contract sales have not yet been recognized. In terms of contract sales, the group recorded about CNY 2 billion contract sales. Major contribution mainly came from Longking in Foshan, Top Plaza and Forest Hill in Guangzhou, and Grand Waterfront in Dongguan. This table shows the major new launches on the mainland in the next couple of months. Let's turn to our property rental business in mainland China. During the period, the gross rental income in mainland China rose 16% year-on-year to over HKD 2 billion, accounting for 19% of the group's total gross rental income. In RMB terms, the gross rental income reached CNY 1.8 billion , up 13% year-on-year. This meaningful growth was driven by strong positive rental reversion and contribution from new investment properties.
The group's two iconic integrated projects in Shanghai, namely Shanghai IFC and Shanghai ICC, continue to excel in the city's leasing market. For Shanghai IFC in Pudong, the office towers remained virtually fully leased with notable growth in rental rates on renewal. The shopping malls continue to see remarkable growth in tenant sales, and it will become even more accessible after its direct connection to another metro line, which is targeted to open in 2020. For Shanghai ICC in Puxi, the One ICC office tower saw positive rental reversions with high occupancy, while Two ICC is now 95% leased. The iapm mall also recorded healthy growth in tenant sales and traffic. ITC, another flagship project of the group in Shanghai, will become the major growth driver of the group's rental income upon its full completion.
Office tenants of One ITC, which is the first phase of the whole project, have already moved in, while leasing of the upscale mall at One ITC is very encouraging, and the mall is expected to open in first half of 2019. The phase II of ITC, comprising 320,000 sq ft of offices and about 43,000 sq ft of retail space, is due for completion in the second half of this year. The leasing is currently underway. For Nanjing IFC, the group's other major integrated project, the construction is progressing as scheduled, with one of the office towers having been topped out. The full completion of this project is expected in 2020. With connections to the interchange station of two existing metro lines in the CBD, the Nanjing IFC will enjoy transport convenience. That's all for the rental business in mainland China. Next, I'll go through the hotel business.
The performance of the group's hotel portfolio in Hong Kong continued to improve, supported by increasing inbound visitors and proactive marketing initiatives of management teams. On the mainland, The Ritz-Carlton Shanghai, Pudong also registered high occupancy and rising room rate during the period. In the next few years, we shall open a number of new hotels in Hong Kong and mainland China. In Hong Kong, Hotel VIC on the Harbour in North Point has been recently completed and is scheduled to commence operation in mid-2018. As part of the group's integrated developments in North Point Waterfront, all the guestrooms at Hotel VIC on the Harbour will offer stunning sea views. A high-quality hotel in Sha Tin is planned to open next year. It is a sister hotel of Royal Park Hotel.
On the mainland, the construction work of Four Seasons Hotel in Suzhou is proceeding as scheduled. It will be the first Four Seasons Hotel in the city. That has covered the business update. Now, let me share with you our views on the market. Then I will talk about the group's business prospects. In Hong Kong, the residential market is expected to continue to do well on the back of favorable economic conditions, a robust labor market, and ample liquidity, notwithstanding the anticipated modest rate highs. We believe the Hong Kong office leasing market will be well supported by favorable markets fundamentals and policy initiatives such as Stock Connect. On retail, solid local consumption and improved tourist arrivals is expected to underpin retail sales performance in Hong Kong. In mainland China, quality office space at prime locations will remain highly sought after by multinational companies.
Solid and rising consumer spending, particularly from the middle- income class and millennials, will continue to support leasing demand for well-managed shopping malls at prime locations. On the other hand, regulatory measures will continue to affect cross-home sales in Mainland China. As for the business prospects of the company's property development, as I mentioned at the beginning of the presentation, we are confident to achieve the full year contract sales target. We have set a medium term target of HKD 40 billion any property sales in Hong Kong. Besides, we expect to achieve development margin satisfactorily . In addition, we have a sufficient land bank providing a strong support for our development needs in the next five to six years. We will continue to replenish land bank through various channels, including land use conversion. Of course, we will stick to our prudent financial approach and land acquisition.
As for the property investment, our existing sizable and diversified rental portfolio will continue to generate organic rental income growth and provide strong cash flow to support dividend payments and future business growth. In addition, our rental portfolio is expanding in both Hong Kong and Mainland China. In the next three years, a total of about 0.8 million square feet and 3.8 million square feet of rental properties will be completed in Hong Kong and Mainland China, respectively. Then, between 2021 and 2023, another 2.1 million square feet and 8.1 million square feet of rental properties will be completed in Hong Kong and Mainland China, respectively. This new addition will further boost the group's recurrent income. I would like to conclude my presentation with this slide, which shows a recap of our strong fundamentals.
We believe that we are well-positioned for long-term success and to create value for shareholders in the long run. Thank you very much for your attention. I think that concludes my presentation.
Before we continue, I would like to introduce the panel to you. From your left, Mr. Brian Sum, whom you have already met. Mr. Christopher Kwok, Executive Director. Mr. Allen Fung, Executive Director. Mr. Victor Lui, Deputy Managing Director. The center is Mr. Raymond Kwok, Chairman and Managing Director. Mr. Mike Wong, Deputy Managing Director. Mr. Adam Kwok, Executive Director. Mr. Eric Tung, Executive Director, and Mr. Frederick Lee, Group Chief Accountant. The question- and- answer session will now begin. Please signal for the microphone if you want to ask a question. Please also identify yourself and the name of your company before starting your question. Video of today's briefing will be uploaded on our corporate website. May I now invite the first question, please?
Thank you. Justin Kwok of Goldman Sachs. Perhaps two questions, one on the land banking side, the other one on office. On the land banking side, I think the company made very good progress in the last calendar year with two substantial farmland conversions. In the presentation just now, I noticed that it is actually mentioned a number of times that in the future, land banking, the avenue would also include conversion as well. So I want to get a sense on what the management is expecting in terms of the size, the frequency of this conversion going ahead, and whether we are going to see more frequent and recurring conversion in the future. Perhaps on the office side, the office is a very good market.
Do you mind to just add more color on what you are seeing in Central and also versus the Kowloon East, in particular, where Kowloon East we are seeing a higher vacancy? Does it pose some pressure to your portfolio there? Thank you.
Maybe I try to answer the first question on the subject of land banking. You rightly pointed out that we have successfully secured two deals and major deals, one for Tuen Mun and one for Sai Sha, during the last financial year. But as you may appreciate, the conversion of agricultural land to proper residential commercial land is a very lengthy and tedious process, and it will take years to complete. We have actually a couple of projects in the pipeline, and the only thing we can tell you, a couple of those are actually in the final stage of their process, and we cannot tell exactly when that process will complete.
Particularly, after the planning approval, we have to get through the premium conversion stage, which is even more difficult to pitch the exact timing for the satisfactory settlement of the appropriate level of end premium for that conversion. This is the status of the land banking on the subject of land conversion.
I would add that there have been successful cases for other developers, so the government seems to be more willing to proceed with modification. The signs are good as far as government sentiment is concerned. On the second question.
Yes, on the leasing market, in Kowloon East, we did see some competition among the new buildings. Some of the landlords are adopting a more flexible stance on asking rental. Our buildings in Millennium City are not affected, as most of our tenants are belonging to sizable and renowned corporations. They are very stable and have very demanding on landlord, especially on quality, management, and facilities. Recently, we have also seen some movements in the area due to cost-cutting relocations. High CapEx remains a hurdle to most of the corporation. Again, our buildings in Kowloon East are well positioned and having a high occupancy of 96% and a solid rental. Whereas in Central and core locations, the market continues to be very buoyant due to tight supply and increasing demand, especially from those finance and security companies from the Mainland, due to the cross-border investment integration.
Most of the Grade A buildings in Central are now highly occupied. Our two flagship developments, One and Two IFC, are fully let, and we are awaiting this. I think rental in core locations, both in Central and Tsim Sha Tsui, will continue to be supported by high demand and limited supply. For ICC across the harbor, we are doing a premium rent in the whole area, as backed up by the robust take-up. Overall, we should see our core locations should outperform the rest of the market in the coming one or two years. Whereas for other sub-markets, I think leasing activity will be stable or even a bit quiet.
Thank you. Kenya from Citi. I have two quick questions. One on property development and another on dividends. I see your property development schedule, which is on the Hong Kong completion volume, which is quite stable at 3 million square feet every year, I mean, on average, for the next three years. Given that you have quite a lot of land bank, 80 million square feet, is it possible to increase your development completion volume? Or will management have such a plan on this? This is question number one. Secondly, is on the dividend policies. Given that a lot of land banks have bought at a very low cost, and I am sure the management have thought about the target, HKD 40 billion, that kind of things, will convert into a decent profit. Do you consider the existing 40%-50% payout ratio to have upside?
We have scheduled to complete about 3 million square feet per annum. Of course, I think we can speed up the sales. But it all depends on two points: whether we can replace our land bank. Secondly, how well are we selling? I.e., if we can sell very well at the price we want, and if we can replace our land bank, then we can speed up our completion, maybe not for the next two years, but maybe three or four years from now. But all subject to how well we sell and how well we can replace our land bank. We have increased the dividend by 9%. We still want to bid in the land market to buy more land. We have a very big investment property program ahead.
We also would like to buy a bit more land in the first-tier cities in the Mainland, especially a good piece of land that can build an IFC and ICC type. I.e., I think we need to maintain the dividend policy so that we have the financial resilience and resources to keep on buying land, whatever the market conditions.
Hi. This is Raymond Liu from HSBC. Two questions from me. The first question is related to the follow-up questions on the farmland conversion. What would be the ideal format of partnering the government to develop a site in the NDAs or existing brownfield sites under your reserve from the management's perspective? This is the first question. The second question is related to the Hong Kong property development business. The company has been very successful in expanding the market shares in property sales over the past few years. Do you expect this trend to continue? If yes, what will be the major driver? Thank you.
Can you repeat your first question again?
About the ideal format of partnering with the government to convert the farmland.
You mean the affordable housing?
Oh.
There is a saying that, in fact, our CEO has voiced the desire to satisfy the affordable housing needs and suggested the Starter Homes concept. The idea of this initiative is still being resolved with government departments, how to implement. I am sure you are aware that the first one will be the Anderson Road, which is a government piece of land. Instead of selling outright to private developers for private development status as part of it has to be erected or constructed as Starter Homes. On the subject of farmland conversion, whether we can pull up some, what you said, suggests that some PPP, private- public partnership. This is an idea to be developed. Probably the idea is going to be reviewed by the Task Force on Land Supply. I am sure they will continue to investigate the opportunity to increase the land supply.
I was told they are going to finalize the report, summarizing or prioritizing all the subjects where they find opportunities to develop more land, not just for housing, for all kinds of land supply. They are going to finalize the report by mid-year and going to consult and engage the society or community to call for consultation and comments. I hope there will something solid will be forthcoming by the end of the year.
I would like to add that I think we would like the government to sell more land, of course, right? The more land, the better, because I think there is a shortage of housing. Also, we will be bidding for land continuously. The more ways the government can release the land, the better. Secondly, on your second question on our market share, we would like to maintain our market share about 20%, and our midterm target sales proceeds for Hong Kong would be about HKD 40 billion. I think whether we can increase our market share depends on how well we can replace our land bank. Of course, I think if we can replace a lot of our land bank, then we can also speed up our sales. We have a very strong sales division under Victor Lui.
In a way, the faster we can replace our land bank, then we can then increase our market share.
Thank you.
Hi. Karl Choi from Merrill Lynch. Three quick questions. First is on the land bank replenishment front. We have seen that Chinese developers seem to have, after a very robust first half of last year in terms of land banking, took a step back in the second half. What is your thought process about the competition from mainland Chinese developers in terms of land banking in Hong Kong? Second, any thoughts on whether there will be any change in government policy in Hong Kong either way? Lastly, on retail tenant sales, can you give us a little bit more color on how your shopping malls performed in terms of retail tenant sales in both Hong Kong and China? Thanks.
I think maybe let me answer the one on the land competition from mainlanders. Yes, of course, we've seen a slowdown or less participation from the mainland companies. We don't have a view of whether that's to continue or they will come back. We do know in the local market existingly, there's very fierce competition, even among us Hong Kong developers, be it big-sized ones or the mid- to small-end ones forming a consortium. This is why even without the mainlanders, the market remains very competitive. Of course, we'll work hard, and as we said, our sales are strong, and hopefully we can replenish.
In fact, that's why we would like the government to sell more land. In fact, do not worry about the huge fiscal surplus. There's a demand on the occupier side. On your question about our retail sales. In Hong Kong, we are beating the market. I think in 2017, the market grew by 2.7%. For our retail malls, we grew by over 4% per annum. So we are achieving a better sales than the market. Regarding the mainland, I think our sales growth would be between about 15% sales growth for our major malls in the mainland.
Hi, I'm Eva Lee from UBS. Just got two questions. First question is on the potential offshore non-core disposal. We understand that Sun Hung Kai Properties has the biggest portfolio in terms of commercial assets, and they're all very good locations and generating good income. On the other hand, there has been very strong demand for capital demand in terms of commercial property. Would management consider offloading, or not offloading, but of course, taking advantage of the very strong market and selling some of the non-core assets? My second question is relating to actually the land replenishment you mentioned. Given that luxury residential has been under very strong demand. Prices you can get it's always at sky-high levels. But land replenishment is difficult for traditional luxury residential in Hong Kong.
Would management consider delaying and postponing some of the completions or selling of these projects, and obviously for better prices in the later years? Thank you.
Yes, on your first question. We are always reviewing our rental portfolio for possible disposal. They include some residential under leasing, those non-core offices, and retail premises, especially for those properties that we cannot create synergy with other properties and those we cannot add value to it. In fact, in the past two years, we have sold two office projects already, namely one in Mong Kok, the other in Kwun Tong, One Harbour Square. At the same time, we have also disposed two industrial projects, one in Cheung Sha Wan and the other recently in Tsuen Wan. I think we shall continue to see more opportunities to offload some of these non-core properties.
In fact, apart from our flagship and trophy developments, which we are keeping for long-term investment, I think it is always sensible that we can dispose of some of our non-core properties and reserve more capital for new acquisitions. On the second question, on marketing our projects, we are always sticking to the prevailing market conditions. As you can see from the past record, that we can always strike a balance between volume and margin. Generally, we are aiming for quicker asset turnover for mass projects. Like in last year, when we market the Park Yoho Genova, we are able to dispose of 80%, 90% of units within a short period of time. But for those luxury projects which are hard to replace, like Victoria Harbour, this is a rare project and hard to replace. We are disposing of the units by small batches.
Having said that, we are planning to market more units in next month, and you shall see there will be more transactions on this project.
Even for the luxury, essentially, we will be selling, but we will just pace ourselves. Yeah.
Thank you.
Thanks. It's David Ng from Macquarie. Can we just talk a little bit more in detail about the ICC office building on Kowloon? Considering that a lot of the net take-up are by mainland financial firms, and with the upcoming opening of the high-speed rail, that will be a very desirable location and maybe even down the road as desirable as the Central location. Has the company thought about the strategy of the tenant mixing? Can you maybe disclose a little bit about the timeline of the existing tenant renewal, or when they will be up for expiry? What will be the company strategy in terms of how you mix the future tenants at the office building?
Well, on the ICC, clearly there are some information I cannot share with you because obviously we are still negotiating with some of the tenants. I think for ICC, because it's called ICC, we want to make sure that there are at least 50% of international tenants. That's our criteria. Above that, I think we are more flexible. I think it's important for us to make sure that we can find tenants that are good quality, not just tenants that just pay us rental. For example, if some tenants just pay us rental and just occupy the space two days a week, that will not be acceptable to us. So in a way, we want to make sure that it's not just hardware. We also make sure that we select the tenants to make sure that it will be the most premier building in Kowloon.
Thank you.
This is Andy So from HTI. Given the fact that our financial health remains very good, I would just like to ask: is it possible for us to do some share buyback? I also want to know if the Kwok family have any plans to increase the stake in the company. Thank you.
I think the company is strong financially. Our debt- capitalization ratio is less than 10%. I think we would like to bid for land in Hong Kong and also in the Tier 1 cities in China. We have also explained to you that we have a huge investment properties program ahead, and we will also make use of this opportunity to find good integrated projects in the mainland. However, if we are not successful and if liquidity keeps on improving, then we may have to consider a buyback, but definitely not for the next 12 months. Your question about the family buying. We have been buying, but not lately. But definitely, I think at the moment now, our share price is HKD 129- something. The NAV, it would be HKD 180- something. Right, Fred?
That's right.
Fred, right? Yeah.
Right.
I think it's one of the criteria for the family, whether we would buy back. Yeah. I think it's always on our mind. Yeah. Also, at the moment now, we have just increased our dividend too, right? Yeah. So the dividend yield based on the current market, I would say, would be what? Three something percent, right? Yeah.
Yeah, right.
Yeah. So at the right time, we would buy. Yeah, at the right time. Yeah.
Thank you, Mr. Kwok. Ladies and gentlemen, thank you for coming. Hope you enjoyed the presentation and find it useful. There are some refreshments outside. Please stay and enjoy. Thank you very much. See you next time.